Renewable Natural Gas in California: Characteristics, Potential, and Incentives: 2023 Update

From fires to floods, climate change has fueled an increase in severe weather events across the globe. California is at the forefront of tackling the ever-increasing climate crisis and, along with its greenhouse gas emission reduction goals, has passed legislation supporting the production and use of renewable natural gas. 

In 2018, California Senate Bill 1440 (Hueso, Chapter 739) directed the California Public Utilities Commission (CPUC) to evaluate whether to establish goals or targets for renewable natural gas purchases by California’s gas utilities. In November 2019, the CPUC issued the Assigned Commissioner’s Scoping Memo and Ruling Opening Phase 4 of Rulemaking 13-02-008 addressing implementation of SB 1440. On December 6, 2019, the CPUC’s Energy Division hosted a technical workshop to discuss SB 1440 implementation.   

This report presents a snapshot of renewable natural gas in California, including sources of renewable natural gas within California, estimates of potential production, carbon intensities for different sources, federal and state incentive programs, and federal and state policies that may affect the future of renewable natural gas within California. This report is intended to help inform and frame other policy efforts such as the Integrated Energy Policy Report and be updated periodically to keep sources and data current.