A report released today by Sierra Club and Breach Collective contends that NW Natural Gas has utilized Senate Bill 98 to direct more than $60 million in ratepayer funds toward biomethane projects, primarily located outside Oregon, with limited climate benefits. The legislation permits gas utilities to invest in renewable natural gas or biomethane regardless of cost premiums compared to conventional methane. According to the report, utilities supported the measure partly to avoid stricter emissions reduction requirements that would have reduced their gas customer base.
The report claims that NW Natural’s biomethane spending has predominantly flowed toward anaerobic digesters at large-scale livestock operations and associated meat processing facilities operated by multinational corporations. These concentrated animal feeding operations generate significant volumes of manure and waste, with communities nearby experiencing increased air and water pollution. The report authors contend that biomethane markets may incentivize expansion of such facilities and accelerate consolidation within animal agriculture sectors.
According to the analysis, NW Natural has experienced significant setbacks with its biomethane projects. The utility’s Lexington, Nebraska facility ceased operations after several years, while a proposed $43 million investment in a biomethane facility in East Wenatchee, Washington, was abandoned in 2025, leaving unclear implications for ratepayers. The report further indicates that biomethane production has fallen substantially short of projections, with declining greenhouse gas reduction benefits as the utility has attempted to scale operations.
The report concludes that NW Natural remains far from meeting SB 98’s renewable gas targets, having missed a 5% requirement by the end of 2024, with future objectives of 10% by 2029 and 30% by 2050 appearing unachievable under current trends. The authors recommend repealing SB 98, terminating ratepayer-funded biomethane investments, and redirecting resources toward building electrification, heat pump installation, and energy efficiency improvements, which they identify as faster-acting emissions reduction strategies.
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