Pacific Gas and Electric Company (PG&E) has issued a Request for Information (RFI) to identify partners for a potential project to demonstrate technologies that could cost-effectively produce significant quantities of biomethane. Biomethane is pipeline-quality natural gas derived from biomass as defined in the California Energy Commission's Overall Program Guidebook 
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California and the western region of the United States contain large quantities of biomass, which could meaningfully contribute towards the state's renewable energy requirements while simultaneously providing other benefits, such as greenhouse gas emission reduction, fire prevention, improved local air quality, and landfill disposal reduction.
PG&E intends to promote promising biomethanation technologies that convert appropriate sources of biomass into biomethane that could be injected into PG&E's gas transmission system and delivered for high-value uses such as dispatchable power generation.
Phase I of this RFI helped PG&E identify biomethanation technologies, understand the market needs for support, and gain insight into the suitable roles for PG&E. Phase II of the RFI should provide sufficient information for PG&E to assess whether and how it may support a proposed Demonstration Project and prioritize subsequent development efforts. Depending on the outcome of this Phase II RFI, PG&E may choose to support a Demonstration Project(s) through means such as PG&E's proposed Emerging Renewable Resources Program (ERRP).
Update - October 16, 2008
PG&E has reviewed Phase II submittals and is in the process of providing feedback to those who submitted responses. Given the robust interest in biomethane, PG&E continues to receive inquiries and Phase II responses. As stated in the RFI, PG&E is reviewing the additional submittals as resources allow. If you have concerns regarding a submission, please contact Marc Kolb, at 415.973.0206 or biomethane@pge.com.
While a final decision on ERRP has not yet been issued by the CPUC (See EERP section below), PG&E continues to explore alternative forms of support for demonstration projects. In addition, PG&E is interested in purchasing biomethane at competitive prices from commercially proven technologies. Those with biomethane available for sale should contact Tracy Cheung in PG&E's Energy Supply department.
For further information about the RFI, please contact Marc Kolb, Senior Product Manager, Gas Transmission and Distribution, at 415.973.0206 or biomethane@pge.com.
Although the Biomethanation RFI is intended for pre-commercial biomethanation technologies, PG&E is also interested in purchasing biomethane at competitive prices from commercially proven technologies. Those with biomethane available for sale should contact Tracy Cheung in PG&E's Energy Supply department, or consider responding to PG&E's 2008 Renewable Portfolio Standard (RPS) solicitation, which was issued on March 7, 2008.
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describes specific aspects of how the Energy Commission's Renewable Energy Program is administered and outlines terms and definitions. This Guidebook also addresses aspects related to California's Renewables Portfolio Standard (RPS), which has a goal of obtaining 20 percent of the state's electricity from renewable resources by the year 2010. These Guidelines assist interested applicants in applying for Renewable Energy Program funds and RPS Certification.
. describes the eligibility requirements and process for certifying renewable resources as eligible for California's Renewables Portfolio Standard (RPS) and Supplemental Energy Payments (SEPs), and describes the Energy Commission's accounting system to verify compliance with the RPS. California's Renewable Portfolio Standard has a goal of obtaining 20 percent of the state's electricity from renewable resources by 2010. This Guidebook outlines eligibility and legal requirements, describes reporting requirements, and includes necessary forms and instructions for program participants. This Guidebook also describes the Energy Commission's system for tracking and verifying compliance with the RPS.
PG&E and SDG&E's Application for an Emerging Renewable Resource Program (ERRP) is an application to the CPUC for a proposed program designed to bring the next generation of renewable resources into the California marketplace. The ERRP is intended to support emerging renewable energy technologies and resources at critical phases of development and to assist promising technologies and resources in overcoming the barrier between product introduction and viable commercial development. By investing in ERRP, utility customers will be able to accelerate renewable resource development and mitigate cost increases that occur due to product scarcity. The ERRP will benefit customers in the long-run by providing more and lower cost renewable resources, while facilitating state and Commission goals to expand renewable energy development in California.
If the ERRP is approved, PG&E may choose to use the ERRP to support a biomethanation demonstration project resulting from the Biomethanation RFI process.
A Proposed Decision on the ERRP application was issued in April. It would allow PG&E to seek funding based upon a CPUC-adopted resource assessment plan and the utility's RPS investment plan. PG&E intends its investment plan to include projects that utilize biomass to create RPS-eligible energy.
PG&E and other participants provided opening and reply comments on the proposed decision on May 23 and May 28, respectively. PG&E had expected that by early summer, the Commission would issue a final decision on ERRP, which may be different than the Proposed Decision. However, as of October 15, the Commission has not issued a final decision on the application. PG&E will announce the impacts of the ERRP Decision when it is final.
