Following the energy crisis that hit California in 2000, the City of San Diego did its part in contributing to the solution to that crisis that is a real “Bioenergy Success Story.” Through a peak load reduction grant program funded by the California Energy Commission, the City was able to convert a 1500 kW emergency diesel generator locate at the Point Loma Wastewater Treatment Plant to run on a combination of diesel fuel and digester gas that was being flared. Since completion, this project has been able to extend its permitted operating hours to generate additional power during the peak summer demand periods in order to make up some of the shortage in California’s power generation capacity. This project has been a win/win for both the City of San Diego and the State of California’s energy users and provides an additional source of revenue to reduce costs to the City’s rate payers. This paper discusses the steps that were necessary to complete this project including: the application process, air permitting issues, construction startup and operation issues.