Existing law requires the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations, including, among other actions, by, without shifting costs between ratepayers, developing methods to reduce barriers for microgrid deployment. Under existing law, the PUC requires certain large electrical corporations to jointly develop a Microgrid Incentive Program to fund clean energy microgrids to support the critical needs of vulnerable populations impacted by a grid outage.

This bill would require the PUC to require each electrical corporation to provide to the commission, on or before January 15, 2026, the status of any awarded or unallocated funds collected for the Microgrid Incentive Program. The bill would require the commission, after reviewing that information, if it determines additional actions actions, using funds collected on or before January 1, 2026, are needed, to consider the use of a third-party administrator and to ensure that unallocated funds are allocated to areas that have experienced 2 or more deenergization events, prioritizing vulnerable communities, including access and functional needs populations, and prioritizing customers that operate critical community infrastructure that supports resiliency during a deenergization event. The bill would require, if there are remaining unallocated funds on January 1, 2027, that those funds to be returned to ratepayers.