{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-594.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-594.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-594.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-594.2.html"}],"law_id":78424,"edition_id":1,"section_id":78424,"structure_id":13084,"section_number":"56-594.2","catch_line":"Small agricultural generators","history":"2017, cc. 565, 581; 2021, Sp. Sess. I, c. 266.","full_text":"A\n\nAs used in this section:\n\t\t\t&#8220;Small agricultural generating facility&#8221; means an electrical generating facility that:1\n\nHas a capacity:\n\t\t\t\ta. Of not more than 1.5 megawatts; and\n\t\t\t\tb. That does not exceed 150 percent of the customer&#8217;s expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available;2\n\nUses as its total source of fuel renewable energy;3\n\nIs located on the customer&#8217;s premises and is interconnected with its utility through a separate meter;4\n\nIs interconnected and operated in parallel with an electric utility&#8217;s distribution but not transmission facilities;5\n\nIs designed so that the electricity generated by the facility is expected to remain on the utility&#8217;s distribution system; and6\n\nIs a qualifying small power production facility pursuant to the Public Utility Regulatory Policies Act of 1978 (P.L. 95-617).\n\t\t\t\t&#8220;Small agricultural generator&#8221; means a customer that:1\n\nIs not an eligible agricultural customer-generator pursuant to &#xA7; 56-594;2\n\nOperates a small agricultural generating facility as part of (i) an agricultural business or (ii) any business granted a manufacturer license pursuant to subdivisions 1 through 6 of &#xA7; 4.1-206.1;3\n\nMay be served by multiple meters that are located at separate but contiguous sites;4\n\nMay aggregate the electricity consumption measured by the meters, solely for purposes of calculating 150 percent of the customer&#8217;s expected annual energy consumption, but not for billing or retail service purposes, provided that the same utility serves all of its meters;5\n\nUses not more than 25 percent of contiguous land owned or controlled by the agricultural business for purposes of the renewable energy generating facility; and6\n\nIssues a certification under oath as to the amount of land being used for renewable generation.\n\t\t\t\t&#8220;Utility&#8221; includes supplier or distributor, as applicable.B\n\nA small agricultural generator electing to interconnect pursuant to this section shall:1\n\nEnter into a power purchase agreement with its utility to sell all of the electricity generated from its small agricultural generating facility, which power purchase agreement obligates the utility to purchase all the electricity generated, at a rate agreed upon by the parties, but at a rate not less than the utility&#8217;s Commission-approved avoided cost tariff for energy and capacity;2\n\nHave the rights described in subsection E of &#xA7; 56-594 pertaining to an eligible agricultural customer-generator as to the renewable energy certificates or other environmental attributes generated by the renewable energy generating facility;3\n\nAbide by the appropriate small generator interconnection process as described in 20VAC5-314; and4\n\nPay to its utility any necessary additional expenses as required by this section.C\n\nUtilities:1\n\nShall purchase, through the power purchase agreement described in subdivision B 1, all of the output of the small agricultural generator;2\n\nShall recover the cost for its distribution facilities to the generating meter either through a proportional cost-sharing agreement with the small agricultural generator or through metering the total capacity and energy placed on the distribution system by the small agricultural generator;3\n\nShall recover all costs incurred by the utility to purchase electricity, capacity, and renewable energy certificates from the small agricultural generator:\n\t\t\t\ta. If the utility has a Commission-approved Renewable Energy Portfolio Standard (RPS) plan and rate adjustment clause, through the utility&#8217;s RPS rate adjustment clause; or\n\t\t\t\tb. If the utility does not have a Commission-approved RPS rate adjustment clause, through the utility&#8217;s fuel adjustment clause or through the utility&#8217;s cost of purchased power;4\n\nMay conduct settlement transactions for purchased power in dollars on the small agricultural generator&#8217;s electric bill or through other means of settlement, in the utility&#8217;s sole discretion;5\n\nShall bill the small agricultural generator eligible costs for small generator interconnection studies required pursuant to the appropriate small generator interconnection process described in subdivision B 3; and6\n\nShall bill its expenses, at cost, for any additional engineering studies that a small agricultural generator is required to pay prior to interconnection.","order_by":null,"text":{"0":{"id":281060,"text":"As used in this section:\n\t\t\t&#8220;Small agricultural generating facility&#8221; means an electrical generating facility that:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":281061,"text":"Has a capacity:\n\t\t\t\ta. Of not more than 1.5 megawatts; and\n\t\t\t\tb. That does not exceed 150 percent of the customer&#8217;s expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":281062,"text":"Uses as its total source of fuel renewable energy;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":281063,"text":"Is located on the customer&#8217;s premises and is interconnected with its utility through a separate meter;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":281064,"text":"Is interconnected and operated in parallel with an electric utility&#8217;s distribution but not transmission facilities;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":281065,"text":"Is designed so that the electricity generated by the facility is expected to remain on the utility&#8217;s distribution system; and","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":281066,"text":"Is a qualifying small power production facility pursuant to the Public Utility Regulatory Policies Act of 1978 (P.L. 95-617).\n\t\t\t\t&#8220;Small agricultural generator&#8221; means a customer that:","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A1"},"7":{"id":281067,"text":"Is not an eligible agricultural customer-generator pursuant to &#xA7; 56-594;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A6","next_prefix":"A2"},"8":{"id":281068,"text":"Operates a small agricultural generating facility as part of (i) an agricultural business or (ii) any business granted a manufacturer license pursuant to subdivisions 1 through 6 of &#xA7; 4.1-206.1;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"9":{"id":281069,"text":"May be served by multiple meters that are located at separate but contiguous sites;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"10":{"id":281070,"text":"May aggregate the electricity consumption measured by the meters, solely for purposes of calculating 150 percent of the customer&#8217;s expected annual energy consumption, but not for billing or retail service purposes, provided that the same utility serves all of its meters;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"11":{"id":281071,"text":"Uses not more than 25 percent of contiguous land owned or controlled by the agricultural business for purposes of the renewable energy generating facility; and","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"12":{"id":281072,"text":"Issues a certification under oath as to the amount of land being used for renewable generation.\n\t\t\t\t&#8220;Utility&#8221; includes supplier or distributor, as applicable.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"B"},"13":{"id":281073,"text":"A small agricultural generator electing to interconnect pursuant to this section shall:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A6","next_prefix":"B1"},"14":{"id":281074,"text":"Enter into a power purchase agreement with its utility to sell all of the electricity generated from its small agricultural generating facility, which power purchase agreement obligates the utility to purchase all the electricity generated, at a rate agreed upon by the parties, but at a rate not less than the utility&#8217;s Commission-approved avoided cost tariff for energy and capacity;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"15":{"id":281075,"text":"Have the rights described in subsection E of &#xA7; 56-594 pertaining to an eligible agricultural customer-generator as to the renewable energy certificates or other environmental attributes generated by the renewable energy generating facility;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"16":{"id":281076,"text":"Abide by the appropriate small generator interconnection process as described in 20VAC5-314; and","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"17":{"id":281077,"text":"Pay to its utility any necessary additional expenses as required by this section.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"18":{"id":281078,"text":"Utilities:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"C1"},"19":{"id":281079,"text":"Shall purchase, through the power purchase agreement described in subdivision B 1, all of the output of the small agricultural generator;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"20":{"id":281080,"text":"Shall recover the cost for its distribution facilities to the generating meter either through a proportional cost-sharing agreement with the small agricultural generator or through metering the total capacity and energy placed on the distribution system by the small agricultural generator;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"21":{"id":281081,"text":"Shall recover all costs incurred by the utility to purchase electricity, capacity, and renewable energy certificates from the small agricultural generator:\n\t\t\t\ta. If the utility has a Commission-approved Renewable Energy Portfolio Standard (RPS) plan and rate adjustment clause, through the utility&#8217;s RPS rate adjustment clause; or\n\t\t\t\tb. If the utility does not have a Commission-approved RPS rate adjustment clause, through the utility&#8217;s fuel adjustment clause or through the utility&#8217;s cost of purchased power;","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"22":{"id":281082,"text":"May conduct settlement transactions for purchased power in dollars on the small agricultural generator&#8217;s electric bill or through other means of settlement, in the utility&#8217;s sole discretion;","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"23":{"id":281083,"text":"Shall bill the small agricultural generator eligible costs for small generator interconnection studies required pursuant to the appropriate small generator interconnection process described in subdivision B 3; and","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"24":{"id":281084,"text":"Shall bill its expenses, at cost, for any additional engineering studies that a small agricultural generator is required to pay prior to interconnection.","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5"}},"ancestry":[{"id":13084,"edition_id":1,"name":"Virginia Electric Utility Regulation Act","identifier":"23","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:44:15","date_modified":"2026-06-26 03:44:15","permalink":{"id":250597,"object_type":"structure","relational_id":13084,"identifier":"23","token":"56\/23","url":"\/56\/23\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12881,"edition_id":1,"name":"Public Service 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Utility","url":"\/56-594.4\/","token":"56\/23\/56-594.4","metadata":false},{"id":77419,"structure_id":13084,"section_number":"56-595","catch_line":"Repealed","url":"\/56-595\/","token":"56\/23\/56-595","metadata":false},{"id":69517,"structure_id":13084,"section_number":"56-596","catch_line":"Consideration of economic development; report","url":"\/56-596\/","token":"56\/23\/56-596","metadata":false},{"id":82462,"structure_id":13084,"section_number":"56-596.1","catch_line":"New generating facilities utilizing energy derived from sunlight and from wind; report","url":"\/56-596.1\/","token":"56\/23\/56-596.1","metadata":false},{"id":57383,"structure_id":13084,"section_number":"56-596.2","catch_line":"Energy efficiency policy and programs; financial assistance for low-income customers","url":"\/56-596.2\/","token":"56\/23\/56-596.2","metadata":false},{"id":80361,"structure_id":13084,"section_number":"56-596.2:1","catch_line":"Incentives for energy conservation measures and solar energy equipment","url":"\/56-596.2_1\/","token":"56\/23\/56-596.2_1","metadata":false},{"id":70146,"structure_id":13084,"section_number":"56-596.2:2","catch_line":"(Expires January 1, 2031) Energy efficiency savings targets for certain customers","url":"\/56-596.2_2\/","token":"56\/23\/56-596.2_2","metadata":false},{"id":71672,"structure_id":13084,"section_number":"56-596.3","catch_line":"Electric generation, transmission, and distribution; report","url":"\/56-596.3\/","token":"56\/23\/56-596.3","metadata":false},{"id":54473,"structure_id":13084,"section_number":"56-596.4","catch_line":"Electric utilities; local reliability data","url":"\/56-596.4\/","token":"56\/23\/56-596.4","metadata":false},{"id":75595,"structure_id":13084,"section_number":"56-596.5","catch_line":"Rate increases in certain months prohibited; Phase I Utility","url":"\/56-596.5\/","token":"56\/23\/56-596.5","metadata":false},{"id":80765,"structure_id":13084,"section_number":"56-596.6","catch_line":"Distribution cost sharing program","url":"\/56-596.6\/","token":"56\/23\/56-596.6","metadata":false}],"previous_section":{"id":82596,"structure_id":13084,"section_number":"56-594.1","catch_line":"Interconnection by farms","url":"\/56-594.1\/","token":"56\/23\/56-594.1","metadata":false},"next_section":{"id":54132,"structure_id":13084,"section_number":"56-594.3","catch_line":"Shared solar programs; Phase II Utility","url":"\/56-594.3\/","token":"56\/23\/56-594.3","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-594.2\/","history_text":"<p>This law was first created in 2017. The record of its establishment is cataloged in chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?171+ful+CHAP0565\">565<\/a> and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?171+ful+CHAP0581\">581<\/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":[{"id":74569,"section_number":"15.2-2232","catch_line":"Legal status of plan","order_by":null,"url":"\/15.2-2232\/"},{"id":63216,"section_number":"15.2-2288.7","catch_line":"Local regulation of solar facilities","order_by":null,"url":"\/15.2-2288.7\/"},{"id":78550,"section_number":"15.2-2316.6","catch_line":"Definitions","order_by":null,"url":"\/15.2-2316.6\/"},{"id":83744,"section_number":"56-585.1:8","catch_line":"Pilot program for municipal net energy metering","order_by":null,"url":"\/56-585.1_8\/"},{"id":76060,"section_number":"56-594","catch_line":"Net energy metering provisions","order_by":null,"url":"\/56-594\/"},{"id":81349,"section_number":"58.1-2636","catch_line":"Revenue share for solar energy projects and energy storage systems","order_by":null,"url":"\/58.1-2636\/"}],"refers_to":[{"id":85579,"section_number":"4.1-206.1","catch_line":"Manufacturer licenses","order_by":null,"url":"\/4.1-206.1\/"},{"id":76060,"section_number":"56-594","catch_line":"Net energy metering provisions","order_by":null,"url":"\/56-594\/"}],"permalink":{"id":250807,"object_type":"law","relational_id":78424,"identifier":"56-594.2","token":"56\/23\/56-594.2","url":"\/56-594.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-594.2\/","token":"56\/23\/56-594.2","dublin_core":{"Title":"Small agricultural generators","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-594.2","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:\n\t\t\t&#8220;<span class=\"dictionary\">Small agricultural generating facility<\/span>&#8221; means an electrical generating facility that: <a id=\"paragraph-281060\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> Has a capacity:\n\t\t\t\ta. Of not more than 1.5 megawatts; and\n\t\t\t\tb. That does not exceed 150 percent of the customer&#8217;s expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available; <a id=\"paragraph-281061\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> Uses as its total source of fuel <span class=\"dictionary\">renewable energy<\/span>; <a id=\"paragraph-281062\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A3\" class=\"indent-1\"><p><span class=\"prefix-number\">3.<\/span> Is located on the customer&#8217;s premises and is interconnected with its <span class=\"dictionary\">utility<\/span> through a separate meter; <a id=\"paragraph-281063\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A4\" class=\"indent-1\"><p><span class=\"prefix-number\">4.<\/span> Is interconnected and operated in parallel with an <span class=\"dictionary\">electric utility<\/span>&#8217;s distribution but not transmission facilities; <a id=\"paragraph-281064\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A4\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A5\" class=\"indent-1\"><p><span class=\"prefix-number\">5.<\/span> Is designed so that the electricity generated by the facility is expected to remain on the utility&#8217;s distribution system; and <a id=\"paragraph-281065\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A5\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A6\" class=\"indent-1\"><p><span class=\"prefix-number\">6.<\/span> Is a qualifying small power production facility pursuant to the Public Utility Regulatory Policies Act of 1978 (P.L. 95-617).\n\t\t\t\t&#8220;<span class=\"dictionary\">Small agricultural generator<\/span>&#8221; means a customer that: <a id=\"paragraph-281066\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A6\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> Is not an eligible agricultural customer-generator pursuant to &#xA7; <a class=\"law\" title=\"Net energy metering provisions\" href=\"\/56-594\/\">56-594<\/a>; <a id=\"paragraph-281067\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> Operates a <span class=\"dictionary\">small agricultural generating facility<\/span> as part of (i) an agricultural business or (ii) any business granted a manufacturer license pursuant to subdivisions 1 through 6 of &#xA7; <a class=\"law\" title=\"Manufacturer licenses\" href=\"\/4.1-206.1\/\">4.1-206.1<\/a>; <a id=\"paragraph-281068\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A3\" class=\"indent-1\"><p><span class=\"prefix-number\">3.<\/span> May be served by multiple meters that are located at separate but contiguous sites; <a id=\"paragraph-281069\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A4\" class=\"indent-1\"><p><span class=\"prefix-number\">4.<\/span> May aggregate the electricity consumption measured by the meters, solely for purposes of calculating 150 percent of the customer&#8217;s expected annual energy consumption, but not for billing or retail service purposes, provided that the same utility serves all of its meters; <a id=\"paragraph-281070\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A4\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A5\" class=\"indent-1\"><p><span class=\"prefix-number\">5.<\/span> Uses not more than 25 percent of contiguous land owned or controlled by the agricultural business for purposes of the <span class=\"dictionary\">renewable energy<\/span> generating facility; and <a id=\"paragraph-281071\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A5\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A6\" class=\"indent-1\"><p><span class=\"prefix-number\">6.<\/span> <span class=\"dictionary\">Issues<\/span> a certification under <span class=\"dictionary\">oath<\/span> as to the amount of land being used for renewable generation.\n\t\t\t\t&#8220;Utility&#8221; includes <span class=\"dictionary\">supplier<\/span> or <span class=\"dictionary\">distributor<\/span>, as applicable. <a id=\"paragraph-281072\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#A6\"><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> A <span class=\"dictionary\">small agricultural generator<\/span> electing to interconnect pursuant to this section shall: <a id=\"paragraph-281073\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> Enter into a power purchase agreement with its utility to sell all of the electricity generated from its <span class=\"dictionary\">small agricultural generating facility<\/span>, which power purchase agreement obligates the utility to purchase all the electricity generated, at a <span class=\"dictionary\">rate<\/span> agreed upon by the parties, but at a <span class=\"dictionary\">rate<\/span> not less than the utility&#8217;s <span class=\"dictionary\">Commission<\/span>-approved avoided cost tariff for energy and capacity; <a id=\"paragraph-281074\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#B1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> Have the rights described in subsection E of &#xA7; <a class=\"law\" title=\"Net energy metering provisions\" href=\"\/56-594\/\">56-594<\/a> pertaining to an eligible agricultural customer-generator as to the <span class=\"dictionary\">renewable energy<\/span> certificates or other environmental attributes generated by the <span class=\"dictionary\">renewable energy<\/span> generating facility; <a id=\"paragraph-281075\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#B2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B3\" class=\"indent-1\"><p><span class=\"prefix-number\">3.<\/span> Abide by the appropriate small generator interconnection process as described in 20VAC5-314; and <a id=\"paragraph-281076\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#B3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B4\" class=\"indent-1\"><p><span class=\"prefix-number\">4.<\/span> Pay to its utility any necessary additional expenses as required by this section. <a id=\"paragraph-281077\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#B4\"><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> Utilities: <a id=\"paragraph-281078\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#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> Shall purchase, through the power purchase agreement described in subdivision B 1, all of the output of the <span class=\"dictionary\">small agricultural generator<\/span>; <a id=\"paragraph-281079\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#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> Shall recover the cost for its distribution facilities to the generating meter either through a proportional cost-sharing agreement with the <span class=\"dictionary\">small agricultural generator<\/span> or through metering the total capacity and energy placed on the distribution system by the <span class=\"dictionary\">small agricultural generator<\/span>; <a id=\"paragraph-281080\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#C2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C3\" class=\"indent-1\"><p><span class=\"prefix-number\">3.<\/span> Shall recover all costs incurred by the utility to purchase electricity, capacity, and <span class=\"dictionary\">renewable energy<\/span> certificates from the <span class=\"dictionary\">small agricultural generator<\/span>:\n\t\t\t\ta. If the utility has a <span class=\"dictionary\">Commission<\/span>-approved <span class=\"dictionary\">Renewable Energy<\/span> Portfolio Standard (RPS) plan and <span class=\"dictionary\">rate<\/span> adjustment clause, through the utility&#8217;s RPS <span class=\"dictionary\">rate<\/span> adjustment clause; or\n\t\t\t\tb. If the utility does not have a <span class=\"dictionary\">Commission<\/span>-approved RPS <span class=\"dictionary\">rate<\/span> adjustment clause, through the utility&#8217;s fuel adjustment clause or through the utility&#8217;s cost of purchased power; <a id=\"paragraph-281081\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#C3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C4\" class=\"indent-1\"><p><span class=\"prefix-number\">4.<\/span> May conduct <span class=\"dictionary\">settlement<\/span> transactions for purchased power in dollars on the <span class=\"dictionary\">small agricultural generator<\/span>&#8217;s electric bill or through other means of <span class=\"dictionary\">settlement<\/span>, in the utility&#8217;s sole discretion; <a id=\"paragraph-281082\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#C4\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C5\" class=\"indent-1\"><p><span class=\"prefix-number\">5.<\/span> Shall bill the <span class=\"dictionary\">small agricultural generator<\/span> eligible costs for small generator interconnection studies required pursuant to the appropriate small generator interconnection process described in subdivision B 3; and <a id=\"paragraph-281083\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#C5\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C6\" class=\"indent-1\"><p><span class=\"prefix-number\">6.<\/span> Shall bill its expenses, at cost, for any additional engineering studies that a <span class=\"dictionary\">small agricultural generator<\/span> is required to pay prior to interconnection. <a id=\"paragraph-281084\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-594.2\/#C6\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nSMALL AGRICULTURAL GENERATORS (\u00a7 56-594.2)\n\nA. As used in this section:\n\t\t\t&#8220;Small agricultural generating facility&#8221; means an electrical\ngenerating facility that:\n\n   1. Has a capacity:\n   \t\t\t\ta. Of not more than 1.5 megawatts; and\n   \t\t\t\tb. That does not exceed 150 percent of the customer&#8217;s expected\n   annual energy consumption based on the previous 12 months of billing history\n   or an annualized calculation of billing history if 12 months of billing\n   history is not available;\n\n   2. Uses as its total source of fuel renewable energy;\n\n   3. Is located on the customer&#8217;s premises and is interconnected with its\n   utility through a separate meter;\n\n   4. Is interconnected and operated in parallel with an electric utility&#8217;s\n   distribution but not transmission facilities;\n\n   5. Is designed so that the electricity generated by the facility is expected\n   to remain on the utility&#8217;s distribution system; and\n\n   6. Is a qualifying small power production facility pursuant to the Public\n   Utility Regulatory Policies Act of 1978 (P.L. 95-617).\n   \t\t\t\t&#8220;Small agricultural generator&#8221; means a customer that:\n\n   1. Is not an eligible agricultural customer-generator pursuant to &#xA7;\n   56-594;\n\n   2. Operates a small agricultural generating facility as part of (i) an\n   agricultural business or (ii) any business granted a manufacturer license\n   pursuant to subdivisions 1 through 6 of &#xA7; 4.1-206.1;\n\n   3. May be served by multiple meters that are located at separate but\n   contiguous sites;\n\n   4. May aggregate the electricity consumption measured by the meters, solely\n   for purposes of calculating 150 percent of the customer&#8217;s expected\n   annual energy consumption, but not for billing or retail service purposes,\n   provided that the same utility serves all of its meters;\n\n   5. Uses not more than 25 percent of contiguous land owned or controlled by the\n   agricultural business for purposes of the renewable energy generating\n   facility; and\n\n   6. Issues a certification under oath as to the amount of land being used for\n   renewable generation.\n   \t\t\t\t&#8220;Utility&#8221; includes supplier or distributor, as applicable.\n\nB. A small agricultural generator electing to interconnect pursuant to this\nsection shall:\n\n   1. Enter into a power purchase agreement with its utility to sell all of the\n   electricity generated from its small agricultural generating facility, which\n   power purchase agreement obligates the utility to purchase all the electricity\n   generated, at a rate agreed upon by the parties, but at a rate not less than\n   the utility&#8217;s Commission-approved avoided cost tariff for energy and\n   capacity;\n\n   2. Have the rights described in subsection E of &#xA7; 56-594 pertaining to an\n   eligible agricultural customer-generator as to the renewable energy\n   certificates or other environmental attributes generated by the renewable\n   energy generating facility;\n\n   3. Abide by the appropriate small generator interconnection process as\n   described in 20VAC5-314; and\n\n   4. Pay to its utility any necessary additional expenses as required by this\n   section.\n\nC. Utilities:\n\n   1. Shall purchase, through the power purchase agreement described in\n   subdivision B 1, all of the output of the small agricultural generator;\n\n   2. Shall recover the cost for its distribution facilities to the generating\n   meter either through a proportional cost-sharing agreement with the small\n   agricultural generator or through metering the total capacity and energy\n   placed on the distribution system by the small agricultural generator;\n\n   3. Shall recover all costs incurred by the utility to purchase electricity,\n   capacity, and renewable energy certificates from the small agricultural\n   generator:\n   \t\t\t\ta. If the utility has a Commission-approved Renewable Energy Portfolio\n   Standard (RPS) plan and rate adjustment clause, through the utility&#8217;s\n   RPS rate adjustment clause; or\n   \t\t\t\tb. If the utility does not have a Commission-approved RPS rate adjustment\n   clause, through the utility&#8217;s fuel adjustment clause or through the\n   utility&#8217;s cost of purchased power;\n\n   4. May conduct settlement transactions for purchased power in dollars on the\n   small agricultural generator&#8217;s electric bill or through other means of\n   settlement, in the utility&#8217;s sole discretion;\n\n   5. Shall bill the small agricultural generator eligible costs for small\n   generator interconnection studies required pursuant to the appropriate small\n   generator interconnection process described in subdivision B 3; and\n\n   6. Shall bill its expenses, at cost, for any additional engineering studies\n   that a small agricultural generator is required to pay prior to\n   interconnection.\n\nHISTORY: 2017, cc. 565, 581; 2021, Sp. Sess. I, c. 266.","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}}