California Approves First Wastewater-Based RNG Contract

California has taken a significant step forward in renewable energy development with the conditional approval of its first wastewater-based renewable natural gas (RNG) contract under the state’s Biomethane Procurement Programme.

The California Public Utilities Commission (CPUC) has approved a long-term agreement involving Anaergia’s SoCal Biomethane facility, alongside Anew Climate LLC and Southwest Gas. The project marks the first initiative to deliver biomethane under Senate Bill 1440 (SB 1440), which aims to expand RNG production using organic waste and existing infrastructure.

Located at the Victor Valley Wastewater Reclamation Authority (VVWRA), the SoCal Biomethane facility combines wastewater treatment with organic waste processing. By co-digesting municipal wastewater and organic materials, the site produces biogas that is upgraded into pipeline-quality RNG.

With the ability to process up to 104,000 tonnes of organic waste annually, the project highlights how wastewater facilities are increasingly being transformed into energy-producing assets.

According to Anaergia, the facility could cut greenhouse gas emissions by as much as 31,710 tonnes of CO₂ equivalent per year, supporting California’s broader environmental goals. These include SB 1383, which focuses on reducing organic waste disposal, and SB 1440, which requires utilities to steadily increase biomethane procurement — a target equivalent to developing around 55 similar facilities by 2035.

Anaergia is proud that our facility will be the first to supply SB 1440-qualified RNG in California.

Assaf Onn, the company’s CEO

He emphasised that the project demonstrates how existing wastewater systems can be leveraged to scale up renewable gas production in line with state regulations.

From an industry perspective, the initiative reflects a growing shift toward resource recovery models, where wastewater treatment plants evolve into hubs for renewable energy generation. Darron Poulsen, General Manager of VVWRA, noted that such facilities are uniquely positioned to convert organic waste into clean energy.

The approval also signals stronger regulatory backing for integrated solutions that combine wastewater treatment, waste diversion, and low-carbon energy production. This approach is expected to influence future infrastructure and utility strategies not only in California but globally.