A report released by the Sierra Club and Breach Collective alleges that NW Natural Gas has leveraged Senate Bill 98 to direct more than $60 million in ratepayer funds toward out-of-state biomethane initiatives that have not achieved meaningful greenhouse gas reductions. The law permits gas utilities to invest in renewable natural gas or biomethane regardless of cost relative to conventional methane. According to the report, the primary driver for utilities in supporting SB 98 was to circumvent emissions reduction mandates that would have reduced their customer base.
The investigation found that ratepayer dollars have predominantly flowed to concentrated animal feeding operations and meat processing facilities operated by major corporations such as Tyson Foods. These large-scale industrial livestock facilities house thousands of animals and generate substantial waste volumes. Communities near these operations experience elevated air and water pollution from concentrated animal waste. The report suggests that biomethane markets may incentivize larger, more pollution-intensive facilities and accelerate consolidation in the animal agriculture sector.
NW Natural has faced setbacks with specific projects. A biomethane project in Lexington, Nebraska, funded with Oregon ratepayer support, ceased operations after a few years. The utility abandoned a purported $43 million biomethane investment in East Wenatchee, Washington in 2025, with unclear consequences for ratepayers. The utility now seeks to shift remaining project costs to customers despite projects underperforming emissions projections.
The report indicates NW Natural has not met SB 98’s biomethane targets, including a 5% target by the end of 2024. Future targets of 10% by 2029 and 30% by 2050 appear unachievable based on current trajectory. Additionally, as the utility has expanded biomethane supply, the greenhouse gas intensity of that supply has increased, reducing climate benefits. The report recommends repealing SB 98, terminating ratepayer-funded biomethane investments, and reallocating resources toward building electrification, heat pumps, and energy efficiency improvements.
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