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LB 20

Require the provision of electric service to customers that own an agricultural self-generation facility

109th Legislature (2025-2026) Introduced by John Cavanaugh

LB 20 ensures farms with on-site generation (≤100 kW) cannot be denied electric service; utilities may recover costs and must interconnect safely, with no backfeed or net metering.

Approved by Governor on February 25, 2025
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Bill Summary · LB 20

Summary — LB 20 (2025)

Require the provision of electric service to customers that own an agricultural self‑generation facility

Status: Enacted — Approved by the Governor on February 25, 2025
Introduced: January 9, 2025 (Sen. John Cavanaugh)
Final vote: Passed Final Reading 48–0–1 (Feb 21, 2025)

Purpose / Intent

LB 20 ensures that customers who install small, on‑site electricity generation for agricultural or horticultural operations cannot be denied electric service by their local distribution utility. The bill clarifies rights and responsibilities for both the agricultural owner‑generator and the local utility when behind‑the‑meter generation is present.

Key provisions

  • Defines terms (selected):
    • "Agricultural self‑generation facility": on‑site electricity production using methane, wind, solar, biomass, hydropower, or geothermal; owned/controlled by the owner‑generator; located entirely on the same premises as the owner‑generator's electric account; used for agricultural or horticultural purposes (as defined in section 77‑1359); rated capacity of 100 kilowatts or less; equipped with a device that prevents backfeed to the local distribution system; and not used for net metering.
    • "Local distribution utility": owner/operator of distribution facilities, including public power districts, public power and irrigation districts, electric cooperatives, and municipal electric systems.
  • Utilities may not refuse or deny electric service to a customer who owns an agricultural self‑generation facility.
  • Owner‑generators remain subject to the local utility’s interconnection requirements, safety standards, electric rates and charges, and service agreement requirements.
  • Utilities may establish rates or fees necessary to fully cover their costs to serve owner‑generators (AM69 clarified this language).
  • Owner‑generators must notify the local distribution utility of their intent to install an agricultural self‑generation facility (added by AM69).
  • The facility must prevent backfeed and cannot participate in net metering.

Who is affected

  • Primary beneficiaries: agricultural and horticultural producers who want to install small on‑site generation (≤100 kW).
  • Affected entities: local distribution utilities (public power districts, irrigation districts, cooperatives, municipal systems), which retain authority over interconnection, safety, and cost recovery.
  • Secondary: local ratepayers and utility operations (administrative and technical processes for interconnection and billing).

Procedural / timeline highlights

  • Referred to Natural Resources Committee: Jan 13, 2025; committee hearing Jan 22 (advanced to General File).
  • Amendment AM69 adopted (Jan 29): revised cost‑recovery language and added notification requirement.
  • Advanced through Legislature: placed on Select File Jan 31; Final Reading Feb 21 (48–0–1).
  • Presented to and approved by Governor: presented Feb 21, 2025; approved Feb 25, 2025.

Potential impacts

  • Encourages on‑site renewable and biogas generation for farms by protecting continued access to utility service.
  • Preserves utilities’ ability to require safe interconnection and to recover costs, limiting uncompensated impacts on the distribution system.
  • May increase administrative workload for utilities (interconnection processing, cost assessments, and notification tracking).

Compiled from official sources — confirm details with the bill’s official record.

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