California OKs Renewable Natural Gas for Transportation

California regulators earlier this month widened the alternative transportation fuel competition by approving rules to encourage the use of biomethane, renewable natural gas (RNG), as a transportation fuel.

The unanimous action by the California Public Utilities Commission (CPUC) drew praise from a state legislator and Clean Energy Fuels Corp., which last year began pitching a form of RNG among its compressed natural gas and liquefied natural gas products (see Daily GPIOct. 7, 2013).

RNG had been effectively banned in California’s gas pipeline system because of what state Assemblyman Mike Gatto called “outdated laws and a lack of regulations for testing and monitoring.” He expressed frustration at the hurdles biomethane companies have faced in trying to sell RNG to the state’s major utilities.

As a result, all of the fuel involved in Newport Beach, CA-based Clean Energy’s RNG product sales last year was manufactured out of state, while all of the buyers were inside California, according to Harrison Clay, president of subsidiary Clean Energy Renewable Fuels.

Full article here.