                                 CODE OF VIRGINIA

SMALL AGRICULTURAL GENERATORS (§ 56-594.2)

A. As used in this section:
			&#8220;Small agricultural generating facility&#8221; means an electrical
generating facility that:

   1. Has a capacity:
   				a. Of not more than 1.5 megawatts; and
   				b. 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. Uses as its total source of fuel renewable energy;

   3. Is located on the customer&#8217;s premises and is interconnected with its
   utility through a separate meter;

   4. Is interconnected and operated in parallel with an electric utility&#8217;s
   distribution but not transmission facilities;

   5. Is designed so that the electricity generated by the facility is expected
   to remain on the utility&#8217;s distribution system; and

   6. Is a qualifying small power production facility pursuant to the Public
   Utility Regulatory Policies Act of 1978 (P.L. 95-617).
   				&#8220;Small agricultural generator&#8221; means a customer that:

   1. Is not an eligible agricultural customer-generator pursuant to &#xA7;
   56-594;

   2. 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;

   3. May be served by multiple meters that are located at separate but
   contiguous sites;

   4. 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;

   5. 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

   6. Issues a certification under oath as to the amount of land being used for
   renewable generation.
   				&#8220;Utility&#8221; includes supplier or distributor, as applicable.

B. A small agricultural generator electing to interconnect pursuant to this
section shall:

   1. 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;

   2. 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;

   3. Abide by the appropriate small generator interconnection process as
   described in 20VAC5-314; and

   4. Pay to its utility any necessary additional expenses as required by this
   section.

C. Utilities:

   1. Shall purchase, through the power purchase agreement described in
   subdivision B 1, all of the output of the small agricultural generator;

   2. 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;

   3. Shall recover all costs incurred by the utility to purchase electricity,
   capacity, and renewable energy certificates from the small agricultural
   generator:
   				a. 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
   				b. 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. 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;

   5. 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

   6. Shall bill its expenses, at cost, for any additional engineering studies
   that a small agricultural generator is required to pay prior to
   interconnection.

HISTORY: 2017, cc. 565, 581; 2021, Sp. Sess. I, c. 266.