NW Natural Can Now Bring Renewable Energy Directly to Its Customers

Rulemaking for Senate Bill 98 (SB 98) is now complete, giving NW Natural a clear path to acquire renewable natural gas on behalf of customers, and forging the way for this newest renewable resource to be an increasing part of the state’s energy supply.

NW Natural, a subsidiary of NW Natural Holding Company (NYSE: NWN), worked collaboratively with legislators and renewable natural gas stakeholders to create SB 98, a groundbreaking bill that was signed into law by Oregon Governor Kate Brown last year. Since then, the Public Utility Commission of Oregon (OPUC), consumer groups and natural gas utilities have been working through a rulemaking process, so natural gas utilities can begin procuring renewable natural gas under the legislation.

Renewable natural gas is a zero-carbon resource produced from local organic materials like food, agricultural and forestry waste, wastewater, or landfills. The gas can be cleaned and added into the existing natural gas system, where it is fully interchangeable with conventional natural gas.

SB 98 goes further than any other law by setting voluntary goals for adding as much as 30% renewable natural gas into the state’s pipeline system by 2050. The law allows up to five percent of a utility’s revenue requirement to be used to cover the incremental cost of investments in renewable natural gas infrastructure.

Under the final rules:

• Natural gas utilities in Oregon can procure renewable natural gas for delivery to their customers.
• Similar to a renewable portfolio standard, volumetric goals have been set, as well as other parameters for the procurement:
  • Voluntary targets of 5% by 2020, 10% by 2025, 15% by 2030, 20% by 2035 and 30% by 2050 are now in place.
• Utilities can invest in and own the cleaning and conditioning equipment required to bring raw biogas and landfill gas up to pipeline quality, as well as the facilities to connect to the local gas distribution system.

Further, the new law supports all forms of renewable natural gas including renewable hydrogen, which is made from excess wind, solar and hydro power. Renewable hydrogen can be used for the transportation system, industrial use, or blended into the natural gas pipeline system.