S. 5159 — STRONG GRID Act of 2026

This section requires each state regulatory authority and nonregulated electric utility to consider establishing a regulatory framework for interconnecting microgrids—defined as groups of interconnected loads and distributed energy resources that can connect to, disconnect from, or run in parallel with the electric grid—and revising distributed energy resource rules to address islanding, scheduling, protection, and controls. It also requires states to consider standards for evaluating grid resilience investments, including events and essential services covered, required service levels, critical customer generation capacity, and a valuation methodology to allocate benefits to ratepayers, while exempting military and Department of Defense installations. States must commence consideration within 1 year and complete determinations within 2 years after enactment.

This section expands the measures that may be included in State energy conservation plans to encompass microgrids. It also requires the detailed descriptions of plan requirements to address distributed energy resources and virtual power plants.

This section establishes a State-administered microgrid assistance program and appropriates $500 million for fiscal years 2027 through 2031. The Secretary must allocate the funds to State energy offices using the existing State Energy Program formula and direct the offices to award competitive grants for microgrid needs assessments, design, construction, cybersecurity, operations, and training, with priority for projects that benefit rural areas or low-income communities, improve resilience or reliability, or deploy distributed energy resources, subject to a 25 percent nonfederal cost share.

This section establishes a program under which the Secretary of Energy provides technical assistance, on request, to eligible entities—including electric utilities, state regulatory authorities, state energy offices, units of local government, and Indian Tribes—to facilitate microgrid adoption and deployment. It requires assistance on interconnection processes, valuation of microgrid benefits, distribution system planning, and implementation of related provisions in the STRONG GRID Act of 2026; directs development of best practices on interconnection, cybersecurity, data protection, and ownership; and requires the Secretary to host workshops and information sessions on microgrid benefits, standards, and federal resources.

This section establishes a pilot program, within 1 year of enactment, to award competitive grants to eligible entities—including grid operators, states, Indian Tribes, and local governments—for projects demonstrating innovative microgrid deployment. It caps the federal cost share at 90 percent, authorizes $200 million for fiscal years 2027 through 2031, provides technical assistance on regulatory frameworks and project design, and requires annual project reports plus a comprehensive evaluation of benefits, challenges, and regulatory processes within 5 years.