State & Local News
California CPUC Approves First RNG Contract
March 23, 2026
The California Public Utilities Commission (CPUC) has conditionally approved the first renewable natural gas (RNG) contract under the state's Senate Bill 1440 Biomethane Procurement Programme in 2025. This contract marks a pivotal advancement in California's efforts to scale RNG supply by utilizing existing wastewater infrastructure, specifically at the SoCal Biomethane facility operated by the Victor Valley Wastewater Reclamation Authority in Victorville, California. The approval supports the state's climate goals by reducing methane emissions and promoting renewable, baseload energy sources.
- The contract involves key stakeholders including Anaergia as the project developer, Anew Climate LLC as the offtaker, and Southwest Gas as the gas utility.
- Procurement professionals should note the emphasis on leveraging existing infrastructure to accelerate RNG project development, which may influence future contract opportunities and project designs.
- This development signals growing state-level support for biomethane procurement, indicating potential expansion of similar contracts under SB 1440.
- Companies engaged in renewable energy, waste management, and gas utilities should evaluate strategic partnerships and compliance with California's regulatory frameworks to capitalize on emerging RNG procurement opportunities.
SB 1440 is a critical framework that accelerates the development of projects that reduce methane emissions, support grid reliability, and strengthen local communities.
— Darron Poulsen, General Manager of VVWRA
how existing wastewater infrastructure can be leveraged to rapidly scale RNG supply from organic waste.
— Assaf Onn, Chief Executive of Anaergia
a meaningful step toward scaling renewable, baseload energy
— Ryan Childress, Managing Director of Low Carbon Fuels at Anew Climate
Agencies
California Public Utilities Commission, California State Government
Vendors
Anaergia, Anew Climate LLC, Southwest Gas