CPUC conditionally approves RNG procurement contract for Anaergia’s SoCal Biomethane facility

The California Public Utilities Commission (CPUC) has conditionally approved a long-term biomethane procurement contract tied to Anaergia Inc.’s SoCal Biomethane LLC facility, Houston-based Anew Climate LLC and Southwest Gas of Oakland, California. According to Burlington, Ontario-based Anaergia, the project will be the first to supply renewable natural gas (RNG) under California’s Senate Bill (SB)1440 Biomethane Procurement Program.

SB 1440 requires the state’s investor-owned utilities to procure RNG derived from landfill-diverted organic waste at a scale equivalent to approximately 55 facilities the size of SoCal Biomethane by 2035. This builds on mandates established under SB 1383, which targeted a reduction in organic waste.

Located at the Victor Valley Wastewater Reclamation Authority (VVWRA), the SoCal Biomethane facility co-digests organic waste and municipal wastewater to produce biogas, which is upgraded to RNG and injected into the gas pipeline for distribution. The facility is designed to accept up to 104,000 tons of diverted organic waste annually, Anaergia says.

“Anaergia is proud that our facility will be the first to supply SB 1440-qualified RNG in California,” Assaf Onn, Anaergia CEO, says. “This milestone demonstrates how existing wastewater infrastructure can be leveraged to rapidly scale RNG supply from organic waste as mandated by California laws SB 1383 and SB 1440.”

According to Anaergia, the project has the potential to reduce emissions by up to 31,710 metric tons of carbon dioxide equivalent per year, comparable to removing approximately 7,400 gasoline-powered passenger vehicles from the road annually. The project also is expected to provide local economic benefits to Victorville and the surrounding communities of Apple Valley and Hesperia through job creation.

“Long‑term offtake agreements from natural gas utilities support state climate goals, and we appreciate the CPUC’s leadership in advancing projects that deliver real, local emissions reductions,” Ryan Childress, managing director of low carbon fuels at Anew Climate, says. “This is a meaningful step toward scaling renewable, baseload energy.”

Local leaders also pointed to the role wastewater treatment facilities can play in converting organic waste into renewable energy, noting the project as a model for similar developments across California.

“VVWRA is proud to be part of California’s first project delivering RNG under SB 1440. Wastewater facilities like ours are uniquely positioned to turn organic waste into clean, renewable energy, and this partnership with Anaergia shows just how impactful that collaboration can be,” Darron Poulsen, general manager of the VVWRA, says. “SB 1440 provides a critical framework that accelerates the development of projects that reduce methane emissions, support grid reliability and strengthen local communities. We strongly support this legislation and look forward to continuing our work with Anaergia to advance sustainable, cost‑effective solutions for the Victor Valley and the state of California.”

Industry stakeholders, including the Sacramento, California-based RNG Coalition, say the project demonstrates the potential to retrofit existing wastewater infrastructure.

“The SoCal Biomethane facility is a great example from which California can build. Our state can and should retrofit other existing wastewater plants in the state to process organic waste, reduce greenhouse gases and generate renewable natural gas—a low-carbon alternative to fossil fuels consumed across society,” Sam Wade, vice president of public policy for the RNG Coalition, says. “We applaud all parties involved, including multiple coalition members, for their leadership on this important breakthrough project.”