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Released August 04, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--With some of the most stringent clean-energy mandates in the country, California agencies have signed agreements to secure renewable natural gas (RNG) for their public transportation fleets.
For undisclosed terms, the Los Angeles County Metropolitan Transportation Authority signed an agreement with Clean Energy Fuels Corporation (Newport Beach, California) to secure 11.5 million gallons of renewable natural gas (RNG) annually, providing fuel for more than 900 gas-powered buses.
"Cities and transit agencies looking to make the air more breathable and address their carbon footprint need reliable, cost-effective solutions that can be deployed now--not years down the line," Chad Lindholm, a senior vice president at Clean Energy, said in a press release.
Separate agreements with Union City and the Kings County Area Public Transit Agency in California outline another 470,000 gallons of RNG annually for some 40 vehicles.
RNG draws on the decomposition of organic matter, which produces methane. Clean Energy is working on two facilities in Georgia -- Brooksco and Southbrook -- that would transform that methane sourced from cow manure into pipeline-quality RNG. Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuel Project Database can learn more from detailed reports on the Brooksco and Southbrook projects.
Clean Energy added that, from Virginia to Alabama and Michigan, it signed measures to supply public transportation fleets with millions of gallons of RNG annually.
GMI subscribers can click here for a profile of Clean Energy.
RNG is gaining traction, particularly for non-consumer vehicles (motorized vehicles not primarily intended for personal or household use, but rather for business, industrial or specialized purposes). A profile from the RNG Coalition said the number of RNG facilities in the U.S. has increased from 31 in 2011 to more than 500 currently.
Based on direct emissions, transportation accounts for about 30% of total U.S. greenhouse gas emissions, the largest of any sector. While RNG still consists of methane, which is a powerful greenhouse gas in its own right, it can be seen as part of a circular economy by utilizing natural processes for energy.
And while U.S. President Donald Trump is no fan of the renewable energy industry, RNG emerged from the recently enacted "One Big, Beautiful Bill" mostly unscathed, with one key provision, the Clean Fuel Production Credit (Section 45Z), extended through 2029. The bill does impose several new restrictions on receiving the credit, such as requiring feedstock to be sourced from the U.S., Mexico or Canada.
California's fuels market, meanwhile, is complex. State laws mandate that refiners make a special blend of gasoline that's less harmful to the environment, but it's more expensive to make. Combined with taxes and fees, California has the highest state average for the retail price of gasoline in the Lower 48 states.
California's refinery sector is on its backfoot. California just two years ago ranked third in the nation in terms of refining capacity, but now faces the prospect of becoming a net importer of refined products after Valero Energy Corporation (San Antonio, Texas) announced plans in April to close its Benicia refinery.
Also, Phillips 66 (Houston, Texas) said market dynamics in California were in part behind its decision to shut operations at its Los Angeles plants by the fourth quarter.
Should other refiners chart a similar path, the Energy Information Administration (EIA), the statistical arm of the U.S. Department of Energy, said California may be forced to import fuels from out-of-state refineries to meet its transportation demands.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
For undisclosed terms, the Los Angeles County Metropolitan Transportation Authority signed an agreement with Clean Energy Fuels Corporation (Newport Beach, California) to secure 11.5 million gallons of renewable natural gas (RNG) annually, providing fuel for more than 900 gas-powered buses.
"Cities and transit agencies looking to make the air more breathable and address their carbon footprint need reliable, cost-effective solutions that can be deployed now--not years down the line," Chad Lindholm, a senior vice president at Clean Energy, said in a press release.
Separate agreements with Union City and the Kings County Area Public Transit Agency in California outline another 470,000 gallons of RNG annually for some 40 vehicles.
RNG draws on the decomposition of organic matter, which produces methane. Clean Energy is working on two facilities in Georgia -- Brooksco and Southbrook -- that would transform that methane sourced from cow manure into pipeline-quality RNG. Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuel Project Database can learn more from detailed reports on the Brooksco and Southbrook projects.
Clean Energy added that, from Virginia to Alabama and Michigan, it signed measures to supply public transportation fleets with millions of gallons of RNG annually.
GMI subscribers can click here for a profile of Clean Energy.
RNG is gaining traction, particularly for non-consumer vehicles (motorized vehicles not primarily intended for personal or household use, but rather for business, industrial or specialized purposes). A profile from the RNG Coalition said the number of RNG facilities in the U.S. has increased from 31 in 2011 to more than 500 currently.
Based on direct emissions, transportation accounts for about 30% of total U.S. greenhouse gas emissions, the largest of any sector. While RNG still consists of methane, which is a powerful greenhouse gas in its own right, it can be seen as part of a circular economy by utilizing natural processes for energy.
And while U.S. President Donald Trump is no fan of the renewable energy industry, RNG emerged from the recently enacted "One Big, Beautiful Bill" mostly unscathed, with one key provision, the Clean Fuel Production Credit (Section 45Z), extended through 2029. The bill does impose several new restrictions on receiving the credit, such as requiring feedstock to be sourced from the U.S., Mexico or Canada.
California's fuels market, meanwhile, is complex. State laws mandate that refiners make a special blend of gasoline that's less harmful to the environment, but it's more expensive to make. Combined with taxes and fees, California has the highest state average for the retail price of gasoline in the Lower 48 states.
California's refinery sector is on its backfoot. California just two years ago ranked third in the nation in terms of refining capacity, but now faces the prospect of becoming a net importer of refined products after Valero Energy Corporation (San Antonio, Texas) announced plans in April to close its Benicia refinery.
Also, Phillips 66 (Houston, Texas) said market dynamics in California were in part behind its decision to shut operations at its Los Angeles plants by the fourth quarter.
Should other refiners chart a similar path, the Energy Information Administration (EIA), the statistical arm of the U.S. Department of Energy, said California may be forced to import fuels from out-of-state refineries to meet its transportation demands.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
