Self-generation incentive program: microgrid incentive program.

Senator Stern's proposal to extend California's self-generation incentive program through 2028 redirects unallocated funds to areas experiencing multiple power shutoffs, with an emphasis on vulnerable communities and critical infrastructure operators. The legislation modifies the existing program's sunset date while establishing new allocation priorities for both the self-generation incentive program and the microgrid incentive program.

Under the modified framework, starting January 1, 2026, unallocated funds from both programs must target locations that have undergone two or more deenergization events. The allocation criteria prioritize vulnerable populations who depend on electric medical devices and refrigerated medications, as well as operators of essential community facilities that maintain services during power shutoffs. The bill postpones the repayment of unallocated funds to ratepayers from 2026 to 2028.

The legislation maintains current program requirements, including greenhouse gas reduction standards for eligible technologies and additional incentives for California-manufactured equipment. Recipients must continue providing operational data to regulators and allowing site inspections to verify performance metrics such as capacity, thermal output, and emissions compliance. The bill preserves existing provisions that prevent program costs from being recovered through low-income utility rate assistance programs.