August 18, 2025. Southwest Gas Corporation (Southwest Gas) has submitted a procurement agreement to the California Public Utilities Commission (CPUC) that would bring renewable natural gas (RNG) to its California customers, marking an important step in supporting the state’s goals to reduce emissions from short-lived climate pollutants.
The agreement between Southwest Gas, Anew Climate LLC, and Anaergia, Inc. (Anaergia) subsidiary SoCal Biomethane, LLC (SCB) is the result of a competitive biomethane procurement process initiated by Southwest Gas. If approved, it will fulfill regulatory requirements under the CPUC’s Senate Bill (SB) 1440 Biomethane Procurement Program, which requires gas utilities to procure biomethane to help reduce methane emissions.
“Long-term offtake agreements from natural gas utilities support local and state climate goals,” said Ryan Childress, Managing Director of Low Carbon Fuels at Anew Climate. Under this agreement, RNG that is produced at the SCB facility located at the Victor Valley Wastewater Reclamation Authority (VVWRA) and is cleaned and upgraded to pipeline-quality natural gas, will be injected into Southwest Gas’ California system for distribution to its customers. The VVWRA treats wastewater from several local communities, including Victorville, Apple Valley, and Hesperia. The upgraded anaerobic digestion facility, owned and operated by Anaergia, co-digests food waste and municipal wastewater solids to generate biogas.
This RNG procurement agreement has the potential to reduce emissions from natural gas delivered to Southwest Gas’ California customers by up to 11,841 MTCO2e per year – equivalent to emissions from 2,762 gasoline-powered passenger vehicles driven for one year. Additionally, this agreement presents a first-time opportunity for an actively producing project to qualify under the SB 1440 Biomethane Procurement Program to deliver RNG in the state of California. “Anaergia is committed to supporting California in achieving its ambitious methane reduction goals through innovative partnerships that serve communities with local and resilient infrastructure solutions,” said Yaniv Scherson, COO of Anaergia.
The facility can accept up to 65,000 gallons of slurried food waste daily, diverting an estimated 104,000 tons of organic waste per year. This project not only reduces greenhouse gas emissions in support of California’s broader environmental goals, it also provides economic benefits to the community by employing local part-time and full-time staff.