California’s energy regulators have approved the state’s first renewable natural gas contract under a new law. The California Public Utilities Commission gave conditional approval in March 2026. The contract connects Anaergia’s SoCal Biomethane LLC, Anew Climate LLC, and Southwest Gas.
The contract is the first of its kind under Senate Bill 1440. That law requires utilities to buy more biomethane made from organic waste. It applies to California’s investor-owned utilities. The goal is to scale up to 55 facilities the size of SoCal Biomethane by 2035.
The SoCal Biomethane facility sits at the Victor Valley Wastewater Reclamation Authority. It mixes municipal wastewater with organic waste to make biogas. That biogas gets cleaned up and injected into the natural gas pipeline as renewable natural gas, also called RNG. The facility can handle up to 104,000 tonnes of organic waste each year.
The project’s environmental numbers stand out. It’s expected to cut greenhouse gas emissions by up to 31,710 tonnes of CO₂ equivalent each year. That’s roughly the same as taking 7,400 gas-powered cars off the road. It also diverts organic waste away from landfills, which supports California’s Senate Bill 1383 goals.
The facility brings jobs to the Victorville, Apple Valley, and Hesperia areas. It also turns existing wastewater infrastructure into an energy-producing asset. That means the facility doesn’t need to be built from scratch. VVWRA General Manager Darron Poulsen highlighted that wastewater facilities are uniquely positioned to convert organic waste into clean energy at scale.
This contract is notable for more than one reason. It’s the first wastewater-based RNG contract under the Biomethane Procurement Program. It’s also the first project to deliver biomethane through Senate Bill 1440. California officials say it sets a precedent for more similar projects before 2035. The approval positions Anaergia at the forefront of California’s broader decarbonization strategy.
SoCalGas was also involved in a related first. The utility was reportedly part of an earlier SB 1440 biomethane supply contract that may have helped lay the groundwork for this newer contract.
California’s push for RNG fits into its broader plan to cut carbon emissions. Projects like this one aim to use waste as a clean energy source while reducing the state’s reliance on fossil fuels.
References
- https://asianwater.com.my/california-approves-first-wastewater-based-rng-contract/
- https://www.ccarbon.info/news/california-public-utilities-commission-conditionally-approves-rng-procurement-contract-from-anaergias-socal-biomethane-facility/
- https://americanbiogascouncil.org/california-public-utilities-commission-conditionally-approves-rng-procurement-contract-from-anaergias-socal-biomethane-facility/
- https://www.renewableenergymagazine.com/biogas/cpuc-conditionally-approves-rng-procurement-contract-from-20260331
- https://pgjonline.com/news/2026/march/california-approves-first-sb-1440-rng-supply-project-for-pipeline-injection
- https://www.qcintel.com/biofuels/article/california-approves-supply-contract-under-rng-procurement-mandate-61211.html
- https://smartwatermagazine.com/news/smart-water-magazine/first-rng-contract-wastewater-based-project-under-californias-biomethane
