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

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..

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.

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:

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.

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:

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.

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.