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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5159 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 5159
To amend the Public Utility Regulatory Policies Act of 1978 to support
microgrids, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 29, 2026
Mr. Welch introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To amend the Public Utility Regulatory Policies Act of 1978 to support
microgrids, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Supporting Transformative
Resilience, Operations, and Next-Generation Grid Innovation Deployment
Act of 2026'' or the ``STRONG GRID Act of 2026''.
SEC. 2. CONSIDERATION OF INTERCONNECTION OF MICROGRIDS AND THE BENEFITS
OF INVESTMENTS IN RESILIENCE.
(a) In General.--Section 111(d) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the
end the following:
``(22) Interconnection of microgrids.--
``(A) Definition of microgrid.--In this paragraph,
the term `microgrid' means a group of interconnected
loads and distributed energy resources (which may
include energy generation resources, energy storage,
energy efficiency resources, district heating and
cooling, combined heat and power, demand response and
load control tools, and other management, forecasting,
and analytical tools) within clearly defined electrical
boundaries that--
``(i) acts as a single controllable entity
with respect to the electric grid; and
``(ii) has the ability--
``(I) to connect to the electric
grid;
``(II) to disconnect from the
electric grid; or
``(III) to run in parallel to the
electric grid, whether connected to or
disconnected from the electric grid.
``(B) Interconnection.--Each State shall consider
establishing a regulatory framework for the
interconnection of microgrids, which may include
revising existing interconnection requirements for
distributed energy resources to better account for
islanding, resource availability and scheduling,
resource protection, and controls.
``(23) Quantifying benefits of investments in resilience.--
``(A) In general.--Each State shall consider
establishing--
``(i) standards for evaluating and
quantifying the benefits of investments in the
resilience of the electric grid, including--
``(I) the events, circumstances,
and essential services for which
resilience is required;
``(II) the level and duration of
service required to achieve resilience;
and
``(III) consideration of--
``(aa) whether critical
customers have on-site or
behind-the-meter generation
capacity; and
``(bb) whether information
relating to that capacity has
been shared with the applicable
utility and relevant regional
entities, as necessary; and
``(ii) a valuation methodology to quantify
the value of measures to improve the resilience
of the electric grid in order to determine
whether such investments are justifiable,
including a mechanism to determine--
``(I) the distribution of
resilience benefits to ratepayers; and
``(II) the scope over which
resilience benefits accrue.
``(B) Defense installations.--Military
installations (as defined in section 2801(c) of title
10, United States Code) and other defense installations
and infrastructure operated by the Department of
Defense shall not be subject to any standards or
methodologies established pursuant to subparagraph
(A).''.
(b) Compliance.--
(1) Time limitation.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended--
(A) by indenting paragraphs (4) through (8), and
any subparagraphs within those paragraphs,
appropriately; and
(B) by adding at the end the following:
``(9)(A) Not later than 1 year after the date of enactment of this
paragraph, each State regulatory authority (with respect to each
electric utility for which the State has ratemaking authority) and each
nonregulated electric utility shall commence consideration under
section 111, or set a hearing date for consideration, with respect to
the standards established by paragraphs (22) and (23) of section
111(d).
``(B) Not later than 2 years after the date of enactment of this
paragraph, each State regulatory authority (with respect to each
electric utility for which the State has ratemaking authority), and
each nonregulated electric utility shall complete the consideration and
make the determination under section 111 with respect to the standards
established by paragraphs (22) and (23) of section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is
amended by adding at the end the following: ``In the case of
the standards established by paragraphs (22) and (23) of
section 111(d), the reference contained in this subsection to
the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of those paragraphs.''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is
amended--
(i) in each of subsections (d) through (h),
by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively,
and indenting appropriately;
(ii) in subsections (e) through (h), by
striking ``enactment of this subsection'' and
inserting ``enactment of that paragraph'';
(iii) in subsection (d), in the matter
preceding subparagraph (A) (as so
redesignated), by striking ``Subsections'' and
inserting the following:
``(1) In general.--Subsections'';
(iv) in subsection (e), by striking the
subsection designation and heading and all that
follows through ``Subsections'' in the matter
preceding subparagraph (A) (as so redesignated)
and inserting the following:
``(2) Time-based metering and communications.--
Subsections'';
(v) in subsection (f), by striking the
subsection designation and heading and all that
follows through ``Subsections'' in the matter
preceding subparagraph (A) (as so redesignated)
and inserting the following:
``(3) Interconnection.--Subsections'';
(vi) in subsection (g), by striking the
subsection designation and heading and all that
follows through ``Subsections'' in the matter
preceding subparagraph (A) (as so redesignated)
and inserting the following:
``(4) Demand-response practices.--Subsections'';
(vii) in subsection (h), by striking the
subsection designation and heading and all that
follows through ``Subsections'' in the matter
preceding subparagraph (A) (as so redesignated)
and inserting the following:
``(5) Electric vehicle charging programs.--Subsections'';
and
(viii) in subsection (d) (as so amended) by
adding at the end the following:
``(6) Interconnection of microgrids; benefits of
investments in resilience.--Subsections (b) and (c) shall not
apply to the standard established by paragraph (22) or (23), as
applicable, of section 111(d) in the case of any electric
utility in a State if, before the date of enactment of that
paragraph--
``(A) the State has implemented for the electric
utility the applicable standard (or a comparable
standard);
``(B) the State regulatory authority for the State
or the relevant nonregulated electric utility has
conducted a proceeding to consider implementation of
the applicable standard (or a comparable standard) for
the electric utility; or
``(C) the State legislature has voted on the
implementation of the applicable standard (or a
comparable standard) for the electric utility during
the 3-year period ending on that date of enactment.''.
(B) Cross reference.--Section 124 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C.
2634) is amended by adding at the end the following:
``In the case of the standards established by
paragraphs (22) and (23) of section 111(d), the
reference contained in this section to the date of
enactment of this Act shall be deemed to be a reference
to the date of enactment of those paragraphs.''.
SEC. 3. STATE ENERGY PROGRAMS.
Section 362 of the Energy Policy and Conservation Act (42 U.S.C.
6322) is amended--
(1) in subsection (c)(7)(B), by inserting ``, including
microgrids (as defined in section 367(a))'' before the
semicolon at the end; and
(2) in subsection (d)(10), by inserting ``, such as
distributed energy resources and virtual power plants'' before
the semicolon at the end.
SEC. 4. STATE-ADMINISTERED ASSISTANCE FOR MICROGRIDS.
(a) In General.--Part D of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6321 et seq.) is amended by adding at the
end the following:
``SEC. 367. STATE-ADMINISTERED ASSISTANCE FOR MICROGRIDS.
``(a) Definitions.--In this section:
``(1) Low-income community.--The term `low-income
community' means any census block group in which 30 percent or
more of the population are individuals with an annual household
income equal to, or less than, the greater of--
``(A) an amount equal to 80 percent of the median
income of the area in which the household is located,
as reported by the Department of Housing and Urban
Development; and
``(B) 200 percent of the Federal poverty line.
``(2) Microgrid.--The term `microgrid' means a group of
interconnected loads and distributed energy resources (which
may include energy generation resources, energy storage, energy
efficiency resources, district heating and cooling, combined
heat and power, demand response and load control tools, and
other management, forecasting, and analytical tools) within
clearly defined electrical boundaries that--
``(A) acts as a single controllable entity with
respect to the electric grid; and
``(B) has the ability to connect to, disconnect
from, or run in parallel to the electric grid and
operate in grid-connected mode or islanded mode.
``(3) Rural area.--The term `rural area' means any area
other than--
``(A) a city or town that has a population of
greater than 50,000 inhabitants; and
``(B) any urbanized area contiguous and adjacent to
a city or town described in subparagraph (A).
``(b) Program.--Not later than 1 year after the date of enactment
of the STRONG GRID Act of 2026, the Secretary, in consultation with the
Director of the Office of Cybersecurity, Energy Security, and Emergency
Response, shall establish a program under which the Secretary shall
allocate funding to State energy offices to implement an Electric Grid
Resilience Program in accordance with this section.
``(c) Funding Allocation.--The Secretary shall allocate funding
under subsection (b) in accordance with the allocation formula in
effect on December 31, 2024, for the State Energy Program established
under this part.
``(d) Electric Grid Resilience Programs.--
``(1) In general.--An Electric Grid Resilience Program
carried out by a State energy office using funds provided under
this section shall award competitive grants to eligible
entities to support the deployment of microgrids.
``(2) Eligible activities.--A grant awarded under an
Electric Grid Resilience Program may be used for--
``(A) conducting a microgrid needs assessment or
feasibility study;
``(B) designing and engineering a microgrid,
including the solicitation of technical assistance--
``(i) to address permitting and siting
challenges;
``(ii) to understand the technical
characteristics and management of microgrids;
``(iii) to develop a maintenance plan for
the microgrid; and
``(iv) to develop cybersecurity and data
privacy measures unique to microgrid
performance and operation;
``(C) construction of a microgrid and associated
energy resources, including--
``(i) energy generation assets;
``(ii) energy storage; and
``(iii) technologies to manage the
operation and security of the microgrid;
``(D) implementation of advanced cybersecurity or
operational controls for an existing microgrid;
``(E) the technical and physical operation and
maintenance of a newly constructed microgrid;
``(F) training existing staff on the real-time
systems specific to microgrids; and
``(G) other activities relating to microgrid
deployment, as the applicable State energy office
determines to be appropriate.
``(3) Priorities.--In awarding grants under an Electric
Grid Resilience Program, a State energy office shall give
priority to projects that--
``(A) improve energy resilience, such as by
reducing the frequency, duration, or scale of blackouts
or power system failures;
``(B) improve the reliability of electric service;
``(C) generate multiple energy value streams,
including ancillary services;
``(D) address a need identified in a State or local
hazard mitigation or emergency preparedness plan;
``(E) address a need identified in a State energy
security plan (as defined in section 366(a));
``(F) primarily benefit a rural area or low-income
community;
``(G) provide ancillary services to the grid, such
as demand management or congestion control; or
``(H) deploy distributed or renewable energy
resources.
``(4) Cost share.--The recipient of a grant under an
Electric Grid Resilience Program shall be required to provide
not less than 25 percent of the cost of the project carried out
using the grant.
``(e) Administrative Expenses.--A State may use up to 10 percent of
the amount allocated to the State under this section for the costs of
administering an Electric Grid Resilience Program.
``(f) Funding.--There is appropriated, out of any funds in the
Treasury not otherwise appropriated, $500,000,000 to carry out this
section for the period of fiscal years 2027 through 2031.''.
(b) Technical Amendment.--The table of contents for the Energy
Policy and Conservation Act (Public Law 94-163; 89 Stat. 872) is
amended by inserting after the item relating to section 366 the
following:
``Sec. 367. State-administered assistance for microgrids.''.
SEC. 5. TECHNICAL ASSISTANCE FOR UTILITIES, UTILITY REGULATORS, AND
OTHER STAKEHOLDERS.
(a) In General.--Title VI of the Public Utility Regulatory Policies
Act of 1978 is amended by inserting after section 609 (7 U.S.C. 918c)
the following:
``SEC. 610. TECHNICAL, EDUCATIONAL, AND OTHER ASSISTANCE ON MICROGRIDS.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) an electric utility, including the board of
an electric cooperative;
``(B) an electric utility regulator, including a
State regulatory authority, such as a public utility
commission;
``(C) a State or a State energy office;
``(D) an agency, authority, corporation, or
instrumentality of a State or Indian Tribe;
``(E) a unit of local government or a political
subdivision of a State or Indian Tribe;
``(F) a policymaker having authority with respect
to--
``(i) an electric utility;
``(ii) the regulation of electric utilities
or the sale of electric energy; or
``(iii) any other matter relating to the
adoption or use of microgrids; and
``(G) any other relevant entity, as determined by
the Secretary.
``(2) Microgrid.--The term `microgrid' has the meaning
given the term in section 111(d)(22)(A).
``(3) National laboratory.--The term `National Laboratory'
has the meaning given the term in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801).
``(4) State energy office.--The term `State energy office'
means the State agency responsible for developing a State
energy conservation plan under section 362 of the Energy Policy
and Conservation Act (42 U.S.C. 6322).
``(b) Technical Assistance on Microgrid Adoption.--The Secretary,
on request, shall provide to eligible entities technical assistance to
facilitate the adoption and deployment of microgrids, including
technical assistance with respect to--
``(1) interconnection processes;
``(2) valuation and verification of microgrid benefits;
``(3) integrated distribution system and resource planning,
including behind-the-meter resources;
``(4) co-locating microgrid infrastructure and large
industrial and commercial loads; and
``(5) other relevant considerations, as determined by the
Secretary.
``(c) Technical Assistance on Implementation of the STRONG GRID Act
of 2026.--
``(1) In general.--The Secretary, on request, shall provide
technical assistance to State agencies and other eligible
entities, including State regulatory authorities, State
regulated electric utilities, and nonregulated electric
utilities, with respect to--
``(A) regulatory proceedings relating to paragraphs
(22) and (23) of section 111(d);
``(B) the adoption or use of microgrids as part of
the State Energy Program established under part D of
title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.); or
``(C) the grant program established under section
367(b) of that Act.
``(2) National laboratories.--The Secretary may provide
technical assistance under paragraph (1) through the National
Laboratories, as the Secretary determines to be appropriate.
``(d) Best Practices.--The Secretary, in coordination with the
National Laboratories and in consultation with State energy offices and
other stakeholders, as determined by the Secretary, shall develop best
practices for the following matters with respect to microgrids and
microgrid components:
``(1) Interconnection processes.
``(2) Cybersecurity.
``(3) Personal data protection.
``(4) Ownership.
``(e) Workshops, Roundtables, and Other Activities.--The Secretary
shall host workshops, roundtables, information sessions, and other
activities to provide to eligible entities education and information
about microgrids, including with respect to--
``(1) the benefits of microgrids and the role of microgrids
in strengthening electric grid resilience, reducing emissions,
managing demand, and meeting load growth and other energy
industry challenges;
``(2) best practices, standards, and protocols for the
regulation, development, implementation, operation, and
management of microgrids; and
``(3) resources and technical assistance opportunities
available to eligible entities from the Secretary and other
Federal agencies.''.
(b) Clerical Amendment.--The table of contents in section 1(b) of
the Public Utility Regulatory Policies Act of 1978 (Public Law 95-617;
92 Stat. 3118) is amended by adding at the end of the items relating to
title VI the following:
``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Technical, educational, and other assistance on
microgrids.''.
SEC. 6. PILOT PROGRAM FOR DEMONSTRATION OF INNOVATIVE MICROGRID
APPLICATIONS.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) an electric grid operator;
(B) an electricity storage operator;
(C) an electricity generator;
(D) a transmission owner or operator;
(E) a distribution provider;
(F) a fuel supplier;
(G) a State, a territory of the United States, or
an Indian Tribe;
(H) an agency, authority, corporation, or
instrumentality of a State or Indian Tribe;
(I) a unit of local government or a political
subdivision of a State or Indian Tribe;
(J) an institution of higher education; and
(K) any other relevant entity, as determined by the
Secretary.
(2) Pilot program.--The term ``pilot program'' means the
pilot program established under subsection (b).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a pilot program to
award grants, on a competitive basis, to eligible entities for projects
to demonstrate innovative microgrid deployment.
(c) Applications.--An eligible entity seeking a grant under the
pilot program shall submit to the Secretary an application at such
time, in such manner, and containing such information as the Secretary
may require.
(d) Priority.--In awarding grants under the pilot program, the
Secretary shall give priority to projects that demonstrate innovative
microgrid applications, emerging technologies, and distributed energy
resources management systems, which may include microgrid projects
that--
(1) provide ancillary grid services and supply and demand
management;
(2) aggregate distributed energy resources into virtual
power plants;
(3) communicate between demand and generation resources;
(4) demonstrate effective cybersecurity management;
(5) demonstrate methods to protect microgrids and related
energy resources during a grid or microgrid fault;
(6) facilitate load transfers to alleviate transmission
congestion;
(7) manage voltage instability or collapses;
(8) demonstrate systems to support microgrid and networked
microgrid operations, including coordination and resource
sharing;
(9) demonstrate systems for multi-microgrid control;
(10) demonstrate microgrid capabilities and operation in
black-start conditions;
(11) demonstrate successful operation of microgrids where
direct current systems are the primary basis of design;
(12) demonstrate successful microgrid operation with a
significant penetration of or complete reliance on renewable
energy resources, including storage; or
(13) adopt a flexible regulatory framework for high-
visibility projects that demonstrate advanced microgrid
concepts and technologies.
(e) Cost Share.--The Federal share of the cost of a project for
which a grant is provided under the pilot program shall not exceed 90
percent.
(f) Technical Assistance.--The Secretary may provide technical
assistance to recipients of grants under the pilot program with respect
to--
(1) the development of microgrid regulatory frameworks;
(2) the design of microgrids; and
(3) the feasibility of microgrid projects.
(g) Reports.--
(1) Report on microgrid benefits and regulatory
processes.--Not later than 5 years after the date of enactment
of this Act, the Secretary, in coordination with the National
Laboratories, shall submit to Congress and publish on a
publicly available website of the Department of Energy a report
that evaluates the outcomes of the pilot program, including--
(A) the benefits, challenges, and risks of
microgrid deployment; and
(B) regulatory processes relating to the deployment
of microgrids.
(2) Report on pilot projects.--Annually, the Secretary
shall submit to Congress and publish on a publicly available
website of the Department of Energy a report describing each
project funded under the pilot program as of the date of the
report, including the innovative microgrid deployment,
applications, and technologies demonstrated by the project.
(h) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out the pilot program
$200,000,000 for the period of fiscal years 2027 through 2031.
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