Anaergia Secures First Approval for California's Green Gas Mandate

VICTORVILLE, CA – March 20, 2026

California’s ambitious strategy to convert organic waste into clean energy has taken a major leap forward. The California Public Utilities Commission (CPUC) has granted conditional approval for a long-term contract at Anaergia Inc.'s SoCal Biomethane facility, making it the first project to supply renewable natural gas (RNG) under the state’s landmark Senate Bill 1440. This pivotal approval positions the Victorville-based facility at the vanguard of a statewide push to decarbonize the gas grid and tackle potent methane emissions from landfills. The agreement involves Anaergia, energy solutions provider Anew Climate LLC, and utility Southwest Gas.

A New Era of Environmental Policy

The approval is not just a win for one company but the first tangible result of a powerful legislative duo aimed at reshaping California's waste and energy sectors. The project is a direct response to Senate Bill 1383, which mandates a 75% reduction in organic waste sent to landfills by 2025, and Senate Bill 1440, which compels investor-owned utilities like Southwest Gas to procure the RNG produced from that diverted waste.

SB 1440 establishes a significant market for this green gas, setting a target for utilities to collectively procure enough RNG to divert 8 million tons of organic waste from landfills annually. To meet its 2035 goals, California will need to build the equivalent of approximately 55 facilities the size of Anaergia's SoCal Biomethane plant. This legislative framework creates a stable, long-term demand that is crucial for financing and developing the complex infrastructure needed for waste-to-energy conversion.

“Anaergia is proud that our facility will be the first to supply SB 1440-qualified RNG in California,” said Assaf Onn, Anaergia’s Chief Executive Officer. “This milestone demonstrates how existing wastewater infrastructure can be leveraged to rapidly scale RNG supply from organic waste as mandated by California laws SB 1383 and SB 1440.”

The Technology Turning Trash to Treasure

At the heart of this initiative is the innovative process happening at the Victor Valley Wastewater Reclamation Authority (VVWRA), where the SoCal Biomethane facility is located. Using Anaergia’s proprietary technologies, the plant co-digests municipal wastewater solids with up to 104,000 tons of diverted organic food waste annually. This waste would otherwise decompose in landfills, releasing large amounts of methane, a greenhouse gas over 80 times more potent than carbon dioxide in the short term.

Inside massive anaerobic digesters, microorganisms break down the organic material in an oxygen-free environment, producing a biogas rich in methane. This gas is then captured, purified to meet stringent pipeline quality standards, and injected directly into Southwest Gas's distribution network for use in homes and businesses. The environmental impact is substantial: the facility is projected to reduce greenhouse gas emissions by up to 31,710 metric tons of CO2 equivalent each year—comparable to taking nearly 7,400 gasoline-powered cars off the road.

Darron Poulsen, General Manager of the VVWRA, emphasized the project's significance as a model for others. “Wastewater facilities like ours are uniquely positioned to turn organic waste into clean, renewable energy, and this partnership with Anaergia shows just how impactful that collaboration can be,” he stated. “SB 1440 provides a critical framework that accelerates the development of projects that reduce methane emissions, support grid reliability, and strengthen local communities.”

A Strategic Breakthrough in a Growing Market

For Anaergia, this approval marks a major strategic victory and a potential turning point. The company, a pioneer in the RNG sector with hundreds of patents, has faced financial headwinds in recent years, reporting significant net losses in 2023 amid project delays. However, more recent financial reports have indicated a strong recovery, with substantial revenue growth and a return to positive Adjusted EBITDA, fueled by a growing project backlog.

Securing the first long-term contract under SB 1440 provides a stable, predictable revenue stream and validates the company's capital-light business model, which focuses on leveraging existing infrastructure. This success in California, a key market, solidifies Anaergia's position as a leader in a rapidly expanding industry. The U.S. RNG market has more than tripled its number of operational facilities in the last five years and is projected to see continued strong growth, driven by supportive policies and corporate sustainability goals.

“Long‑term offtake agreements from natural gas utilities support state climate goals, and we appreciate the CPUC’s leadership in advancing projects that deliver real, local emissions reductions,” commented Ryan Childress, Managing Director of Low Carbon Fuels at Anew Climate, a partner in the project. “This is a meaningful step toward scaling renewable, baseload energy.”

Local Benefits and a Statewide Blueprint

The project's impact extends beyond corporate balance sheets and state climate targets. For the high-desert communities of Victorville, Apple Valley, and Hesperia, the facility provides local jobs and transforms the VVWRA from a simple wastewater plant into a resource recovery hub and a net energy exporter. The successful partnership has already earned the VVWRA a "Wastewater Project of the Year" award, highlighting its role as an innovative leader in the water sector.

The success of the SoCal Biomethane facility is being watched closely by industry experts and policymakers as a potential blueprint for the rest of the state. With hundreds of wastewater treatment plants across California, the model of co-locating organic waste digestion facilities presents a massive opportunity to meet the state's ambitious climate goals cost-effectively.

Sam Wade, VP of Public Policy for the RNG COALITION, sees the project as a critical proof of concept. “The SoCal Biomethane facility is a great example from which California can build. Our state can and should retrofit other existing wastewater plants in the state to process organic waste, reduce greenhouse gases, and generate renewable natural gas, a low-carbon alternative to fossil fuels consumed across society,” Wade said. He applauded the leadership of all parties involved in what he called an "important breakthrough project."