Microgrid incentive program.

Senator Stern's microgrid legislation requires electrical corporations to report on the status of awarded and unallocated Microgrid Incentive Program funds to the Public Utilities Commission (PUC) by January 2026. The measure directs the PUC to review these fund allocations and determine whether additional actions could advance the program's implementation.

Upon reviewing the fund status, the PUC would evaluate using third-party administrators to manage the program. The commission would also ensure that any remaining unallocated funds target areas that have experienced multiple deenergization events, with specific focus on vulnerable communities and operators of critical infrastructure. The bill defines vulnerable populations to include those who rely on electric medical devices and refrigerated medications.

The measure builds upon existing microgrid commercialization efforts established through prior PUC decisions, while adding new oversight and fund allocation requirements. Any violations of PUC directives under this program would constitute a crime under state law, though the bill specifies that no state reimbursement would be required for associated local costs.