LOS ANGELES, Feb. 13, 2020 /PRNewswire/ -- Southern California
Gas Co. (SoCalGas) today announced support for the California
Public Utilities Commission (CPUC) new Incentive Reservation System
for the CPUC biomethane monetary incentive program. The
reservation system will help increase transparency about available
incentive funding for biomethane interconnection projects in the
state. Currently, there is about $32
million in funding available through the incentive
program. This money is available for eligible projects on a
"first come, first served" basis through December 31, 2026 or until the money runs out,
whichever occurs first.
The new reservation system is an important step to give
biomethane developers certainty the money they applied for will be
there at the end of the project. Another benefit of the
reservation system is that it can help spur additional
interconnection projects.
"SoCalGas commends the CPUC for establishing an incentive
reservation system," said Sharon
Tomkins, vice president of strategy and engagement and chief
environmental officer for SoCalGas. "It is my hope that state
policymakers will realize the increased demand for renewable
natural gas projects and make additional incentive funding
available for many years to come."
Renewable natural gas (RNG) is a clean fuel produced from our
waste streams (i.e. sewers and food waste, as well as dairy and
agricultural waste) and can be used to heat homes and businesses,
for cooking, and to fuel trucks and buses. California law requires 40 percent of methane
from sewage treatments plants, landfills, dairies and other
agriculture to be captured, with provisions for energy delivery to
customers as part of the state's ambitious plan to reduce
greenhouse gas emissions.
RNG can take more carbon out of the air than it emits as an
energy source, which makes it a carbon negative fuel. Last
month, the Lawrence Livermore National Laboratory issued a report
assessing pathways California can
take to achieve carbon neutrality by 2045. The study found
the pathway that holds the greatest potential for removing
emissions from the atmosphere is to convert waste to fuel, with
simultaneous capture of CO2 emissions. Estimates
show this pathway could remove 83 million tons of CO2
per year.
Last year, SoCalGas announced its vision to be the cleanest gas
utility in North America. As part of that vision, the utility
committed to replacing 5 percent of its natural gas supplies with
RNG by 2022 and 20 percent of its supplies with RNG by 2030.
A 2018 study shows replacing about 20 percent of California's natural gas supply with RNG
offers the same emissions reduction as electrifying all of the
buildings in the state, but at half the cost.
There is widespread consumer preference for natural gas
appliances in California and
multiple studies have shown RNG is a cost-effective solution to
reducing greenhouse gas emissions. Additionally, a recently
released analysis shows that by 2040, there will be enough RNG
available nationwide to replace 90 percent of fossil natural gas in
US homes.
The reservation system opened on February
3, 2020. Customers who wish to apply for incentive
funding should fill out this form.
About SoCalGas
Headquartered in Los Angeles, SoCalGas® is
the largest gas distribution utility in the
United States. SoCalGas delivers
affordable, reliable, clean and increasingly renewable gas service
to 21.8 million customers across 24,000 square miles of
Central and Southern California, where more than 90 percent of
residents use natural gas for heating, hot water, cooking, drying
clothes or other uses. Gas delivered through the company's
pipelines also plays a key role in providing electricity to
Californians— about 45 percent of electric power
generated in the state comes from gas-fired power plants.
SoCalGas' vision is to be the cleanest gas utility in
North America, delivering
affordable and increasingly renewable energy to its customers. In
support of that vision, SoCalGas is committed to replacing 20
percent of its traditional natural gas supply with renewable
natural gas (RNG) by 2030. Renewable natural gas is made from
waste created by dairy farms, landfills and wastewater treatment
plants. SoCalGas is also committed to investing in its gas delivery
infrastructure while keeping bills affordable for our customers.
From 2014 through 2018, the company invested nearly $6.5
billion to upgrade and modernize its pipeline system to
enhance safety and reliability. SoCalGas is a subsidiary
of Sempra Energy (NYSE: SRE), an energy services holding
company based in San Diego. For more information
visit socalgas.com/newsroom or connect with SoCalGas
on Twitter (@SoCalGas), Instagram (@SoCalGas)
and Facebook.
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SOURCE Southern California Gas Company