Microgrid incentive program.

Senator Stern's microgrid funding oversight legislation requires electrical corporations to report on the status of awarded and unallocated Microgrid Incentive Program funds to the California Public Utilities Commission (PUC) by January 15, 2026. Upon reviewing these reports, the PUC must determine whether additional actions are needed to advance the program using funds collected through January 1, 2026.

For electrical corporations requiring additional program actions, the PUC must evaluate using third-party administrators and ensure remaining unallocated funds target areas that have experienced multiple deenergization events. The allocation process prioritizes vulnerable communities, including residents who depend on electric medical devices, and customers operating critical community infrastructure that supports resilience during outages. Any funds that remain unallocated by January 1, 2027, must be returned to ratepayers as bill credits.

The legislation prohibits the PUC from imposing new ratepayer charges or collecting additional program funds beyond current requirements. Under existing law, violations of PUC orders implementing these provisions constitute a crime, making this a state-mandated local program. The bill specifies that no reimbursement is required for local agencies or school districts, as any costs would stem from changes to crime definitions or penalties under state law.