Biomethane Project Development

Wednesday, July 29, 2015

For information on Biomethane, go to PG&E's official site here:

Two key California Public Utilities Commission (CPUC) decisions in the last year and a half help set the stage for in-state biomethane projects to move forward. The first decision, Decision 14-01-034,issued on January 22, 2014, sets forth gas quality criteria specifically applicable to biomethane, to ensure that biogas can be treated and conditioned into merchantable biomethane that can be safely injected into the utilities’ pipeline systems and used by customers. PG&E’s Gas Rule 21, Section C, Quality of Gas, has been modified to include these criteria, in addition to the existing natural gas quality criteria.

The more recent CPUC Decision 15-06-029, issued on June 16, 2015, addresses cost responsibility for biomethane projects, including interconnection costs, and establishes that these costs must be borne by the biomethane project developer. However, as an incentive, the CPUC has established a program under which a biomethane developer may qualify for payment of 50% of the interconnection costs, subject to a $1.5 million cap. Per Decision 15-06-029, the funding for the program is capped at $40 million statewide and is available for five years, at which point the program will expire.

If you are interested in discussing interconnection of a biomethane project with PG&E’s California Gas Transmission, please visit our official website, contact us at, and/or call Ken Brennan at 925.244.3542.