{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/2.2-4329.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/2.2-4329.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/2.2-4329.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/2.2-4329.1.html"}],"law_id":72432,"edition_id":1,"section_id":72432,"structure_id":12805,"section_number":"2.2-4329.1","catch_line":"Energy forward pricing mechanisms","history":"2012, cc. 204, 359.","full_text":"A\n\nAs used in this section, unless the context requires a different meaning:\n\t\t\t&#8220;Energy&#8221; means natural gas, heating oil, propane, diesel fuel, unleaded fuel, and any other energy source except electricity.\n\t\t\t&#8220;Forward pricing mechanism&#8221; means either: (i) a contract or financial instrument that obligates a public body to buy or sell a specified quantity of energy at a future date at a set price or (ii) an option to buy or sell the contract or financial instrument.B\n\nNotwithstanding any other law to the contrary but subject to available appropriation, a public body may use forward pricing mechanisms for budget risk reduction.C\n\nForward pricing mechanism transactions shall be made only under the following conditions:1\n\nThe quantity of energy affected by the forward pricing mechanism shall not exceed the estimated energy use for the public body for the same period, which shall not exceed 48 months from the trade date of the transaction; and2\n\nA separate account shall be established for operational energy for each public body using a forward pricing mechanism.D\n\nBefore exercising the authority under this section, the public body shall develop written policies and procedures governing the use of forward pricing mechanisms and disclosure of the same to the public.E\n\nBefore exercising authority under subsection B, the public body shall establish an oversight process that provides for review of the public body&#8217;s use of forward pricing mechanisms. The oversight process shall include internal or external audit reviews; annual reports to, and review by, an internal investment committee; and internal management control.","order_by":null,"text":{"0":{"id":260881,"text":"As used in this section, unless the context requires a different meaning:\n\t\t\t&#8220;Energy&#8221; means natural gas, heating oil, propane, diesel fuel, unleaded fuel, and any other energy source except electricity.\n\t\t\t&#8220;Forward pricing mechanism&#8221; means either: (i) a contract or financial instrument that obligates a public body to buy or sell a specified quantity of energy at a future date at a set price or (ii) an option to buy or sell the contract or financial instrument.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":260882,"text":"Notwithstanding any other law to the contrary but subject to available appropriation, a public body may use forward pricing mechanisms for budget risk reduction.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":260883,"text":"Forward pricing mechanism transactions shall be made only under the following conditions:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":260884,"text":"The quantity of energy affected by the forward pricing mechanism shall not exceed the estimated energy use for the public body for the same period, which shall not exceed 48 months from the trade date of the transaction; and","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":260885,"text":"A separate account shall be established for operational energy for each public body using a forward pricing mechanism.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"5":{"id":260886,"text":"Before exercising the authority under this section, the public body shall develop written policies and procedures governing the use of forward pricing mechanisms and disclosure of the same to the public.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"E"},"6":{"id":260887,"text":"Before exercising authority under subsection B, the public body shall establish an oversight process that provides for review of the public body&#8217;s use of forward pricing mechanisms. The oversight process shall include internal or external audit reviews; annual reports to, and review by, an internal investment committee; and internal management control.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":12805,"edition_id":1,"name":"Contract Formation and Administration","identifier":"2","label":"article","depth":5,"order_by":1,"parent_id":12752,"metadata":{},"date_created":"2026-06-26 03:43:54","date_modified":"2026-06-26 03:43:54","permalink":{"id":177013,"object_type":"structure","relational_id":12805,"identifier":"2","token":"2.2\/II\/B\/43\/2","url":"\/2.2\/II\/B\/43\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12752,"edition_id":1,"name":"Virginia Public Procurement Act","identifier":"43","label":"chapter","depth":4,"order_by":1,"parent_id":12751,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176989,"object_type":"structure","relational_id":12752,"identifier":"43","token":"2.2\/II\/B\/43","url":"\/2.2\/II\/B\/43\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12751,"edition_id":1,"name":"Transaction of Public Business","identifier":"B","label":"part","depth":3,"order_by":1,"parent_id":12750,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176445,"object_type":"structure","relational_id":12751,"identifier":"B","token":"2.2\/II\/B","url":"\/2.2\/II\/B\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12750,"edition_id":1,"name":"Administration of State Government","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12749,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176253,"object_type":"structure","relational_id":12750,"identifier":"II","token":"2.2\/II","url":"\/2.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12749,"edition_id":1,"name":"Administration of Government","identifier":"2.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":171453,"object_type":"structure","relational_id":12749,"identifier":"2.2","token":"2.2","url":"\/2.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":60713,"structure_id":12805,"section_number":"2.2-4303","catch_line":"Methods of procurement","url":"\/2.2-4303\/","token":"2.2\/II\/B\/43\/2\/2.2-4303","metadata":false},{"id":61675,"structure_id":12805,"section_number":"2.2-4303.01","catch_line":"High-risk contracts; 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penalty for failure to timely complete","url":"\/2.2-4334\/","token":"2.2\/II\/B\/43\/2\/2.2-4334","metadata":false},{"id":84415,"structure_id":12805,"section_number":"2.2-4335","catch_line":"Public construction contract provisions barring damages for unreasonable delays declared void","url":"\/2.2-4335\/","token":"2.2\/II\/B\/43\/2\/2.2-4335","metadata":false},{"id":55647,"structure_id":12805,"section_number":"2.2-4336","catch_line":"Bid bonds; construction contracts","url":"\/2.2-4336\/","token":"2.2\/II\/B\/43\/2\/2.2-4336","metadata":false},{"id":79610,"structure_id":12805,"section_number":"2.2-4337","catch_line":"Performance and payment bonds","url":"\/2.2-4337\/","token":"2.2\/II\/B\/43\/2\/2.2-4337","metadata":false},{"id":86516,"structure_id":12805,"section_number":"2.2-4338","catch_line":"Alternative forms of security","url":"\/2.2-4338\/","token":"2.2\/II\/B\/43\/2\/2.2-4338","metadata":false},{"id":66839,"structure_id":12805,"section_number":"2.2-4339","catch_line":"Bonds on other than construction contracts","url":"\/2.2-4339\/","token":"2.2\/II\/B\/43\/2\/2.2-4339","metadata":false},{"id":54251,"structure_id":12805,"section_number":"2.2-4340","catch_line":"Action on performance bond","url":"\/2.2-4340\/","token":"2.2\/II\/B\/43\/2\/2.2-4340","metadata":false},{"id":65780,"structure_id":12805,"section_number":"2.2-4340.1","catch_line":"Statute of limitations on construction contracts","url":"\/2.2-4340.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4340.1","metadata":false},{"id":85767,"structure_id":12805,"section_number":"2.2-4340.2","catch_line":"Statute of limitations on architectural and engineering contracts","url":"\/2.2-4340.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4340.2","metadata":false},{"id":56940,"structure_id":12805,"section_number":"2.2-4341","catch_line":"Actions on payment bonds; waiver of right to sue","url":"\/2.2-4341\/","token":"2.2\/II\/B\/43\/2\/2.2-4341","metadata":false},{"id":71233,"structure_id":12805,"section_number":"2.2-4342","catch_line":"Public inspection of certain records","url":"\/2.2-4342\/","token":"2.2\/II\/B\/43\/2\/2.2-4342","metadata":false}],"previous_section":{"id":64067,"structure_id":12805,"section_number":"2.2-4329","catch_line":"Expired","url":"\/2.2-4329\/","token":"2.2\/II\/B\/43\/2\/2.2-4329","metadata":false},"next_section":{"id":73315,"structure_id":12805,"section_number":"2.2-4330","catch_line":"Withdrawal of bid due to error","url":"\/2.2-4330\/","token":"2.2\/II\/B\/43\/2\/2.2-4330","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/2.2-4329.1\/","history_text":"<p>This law was first created in 2012. The record of its establishment is cataloged in chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?121+ful+CHAP0204\">204<\/a> and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?121+ful+CHAP0359\">359<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":false,"permalink":{"id":177191,"object_type":"law","relational_id":72432,"identifier":"2.2-4329.1","token":"2.2\/II\/B\/43\/2\/2.2-4329.1","url":"\/2.2-4329.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/2.2-4329.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4329.1","dublin_core":{"Title":"Energy forward pricing mechanisms","Type":"Text","Format":"text\/html","Identifier":"\u00a7 2.2-4329.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> As used in this section, unless the context requires a different meaning:\n\t\t\t&#8220;<span class=\"dictionary\">Energy<\/span>&#8221; means natural gas, heating oil, propane, diesel fuel, unleaded fuel, and any other <span class=\"dictionary\">energy<\/span> source except electricity.\n\t\t\t&#8220;<span class=\"dictionary\">Forward pricing mechanism<\/span>&#8221; means either: (i) a <span class=\"dictionary\">contract<\/span> or financial instrument that obligates a <span class=\"dictionary\">public body<\/span> to buy or sell a specified quantity of <span class=\"dictionary\">energy<\/span> at a future date at a set price or (ii) an option to buy or sell the <span class=\"dictionary\">contract<\/span> or financial instrument. <a id=\"paragraph-260881\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/2.2-4329.1\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> Notwithstanding any other <span class=\"dictionary\">law<\/span> to the contrary but subject to available appropriation, a <span class=\"dictionary\">public body<\/span> may use <span class=\"dictionary\">forward pricing mechanisms<\/span> for budget risk reduction. <a id=\"paragraph-260882\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/2.2-4329.1\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C\"><p><span class=\"prefix-number\">C.<\/span> <span class=\"dictionary\">Forward pricing mechanism<\/span> transactions shall be made only under the following conditions: <a id=\"paragraph-260883\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/2.2-4329.1\/#C\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> The quantity of <span class=\"dictionary\">energy<\/span> affected by the <span class=\"dictionary\">forward pricing mechanism<\/span> shall not exceed the estimated <span class=\"dictionary\">energy<\/span> use for the <span class=\"dictionary\">public body<\/span> for the same period, which shall not exceed 48 months from the trade date of the transaction; and <a id=\"paragraph-260884\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/2.2-4329.1\/#C1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> A separate account shall be established for operational <span class=\"dictionary\">energy<\/span> for each <span class=\"dictionary\">public body<\/span> using a <span class=\"dictionary\">forward pricing mechanism<\/span>. <a id=\"paragraph-260885\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/2.2-4329.1\/#C2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"D\"><p><span class=\"prefix-number\">D.<\/span> Before exercising the authority under this section, the <span class=\"dictionary\">public body<\/span> shall develop written policies and procedures governing the use of <span class=\"dictionary\">forward pricing mechanisms<\/span> and disclosure of the same to the public. <a id=\"paragraph-260886\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/2.2-4329.1\/#D\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"E\"><p><span class=\"prefix-number\">E.<\/span> Before exercising authority under subsection B, the <span class=\"dictionary\">public body<\/span> shall establish an oversight process that provides for review of the <span class=\"dictionary\">public body<\/span>&#8217;s use of <span class=\"dictionary\">forward pricing mechanisms<\/span>. The oversight process shall include internal or external audit reviews; annual reports to, and review by, an internal investment committee; and internal management control. <a id=\"paragraph-260887\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/2.2-4329.1\/#E\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nENERGY FORWARD PRICING MECHANISMS (\u00a7 2.2-4329.1)\n\nA. As used in this section, unless the context requires a different meaning:\n\t\t\t&#8220;Energy&#8221; means natural gas, heating oil, propane, diesel fuel,\nunleaded fuel, and any other energy source except electricity.\n\t\t\t&#8220;Forward pricing mechanism&#8221; means either: (i) a contract or\nfinancial instrument that obligates a public body to buy or sell a specified\nquantity of energy at a future date at a set price or (ii) an option to buy or\nsell the contract or financial instrument.\n\nB. Notwithstanding any other law to the contrary but subject to available\nappropriation, a public body may use forward pricing mechanisms for budget risk\nreduction.\n\nC. Forward pricing mechanism transactions shall be made only under the following\nconditions:\n\n   1. The quantity of energy affected by the forward pricing mechanism shall not\n   exceed the estimated energy use for the public body for the same period, which\n   shall not exceed 48 months from the trade date of the transaction; and\n\n   2. A separate account shall be established for operational energy for each\n   public body using a forward pricing mechanism.\n\nD. Before exercising the authority under this section, the public body shall\ndevelop written policies and procedures governing the use of forward pricing\nmechanisms and disclosure of the same to the public.\n\nE. Before exercising authority under subsection B, the public body shall\nestablish an oversight process that provides for review of the public\nbody&#8217;s use of forward pricing mechanisms. The oversight process shall\ninclude internal or external audit reviews; annual reports to, and review by, an\ninternal investment committee; and internal management control.\n\nHISTORY: 2012, cc. 204, 359.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}