Renewable Natural Gas Program

Only a couple of days before the California Public Utilities Commission issued a decision on renewable natural gas (RNG), the Florida Public Service Commission authorized an RNG program for a natural gas local distribution company (LDC) in that state, Peoples Gas System.

In developing its RNG proposal, the company told the commission that it had been approached by various landfill operators and wastewater treatment plant owners who wanted to deliver RNG into the LDC’s distribution system. The commission related that the Peoples Gas plan marks the first time a Florida natural gas utility will be offering biogas producers the option of delivering RNG into its distribution system. While the RNG program adopted in California homes in on biomethane emitted from the manure left by dairy cows, the RNG project in Florida is somewhat more expansive, encompassing biogas (processed to meet pipeline quality standards) that stems from such materials as wastewater treatment plants, landfills, municipal solid waste, and agricultural waste, as well as livestock manure.

Peoples Gas contended that the biogas producers could use the RNG onsite or contract with a customer who will purchase the RNG from the biogas producer. Potential customers identified by the LDC included compressed natural gas fill stations and industrial customers. In addition, the LDC stated that it could purchase the biogas, thus displacing a portion of its traditional (geologic) natural gas with RNG. (Docket 20170206)