This bill, SB 230-FN, establishes a regulatory framework for the creation and operation of microgrids, which are localized energy systems capable of functioning independently or alongside the main grid. It introduces new definitions for "microgrid" and "small modular reactors" (SMRs), which are advanced nuclear reactors with a capacity of up to 300 MW. The legislation sets forth an approval process for microgrids that serve loads of no more than 10 megawatts, with two exceptions for larger systems. Importantly, it mandates that all new microgrids must utilize renewable energy sources or SMRs and requires operators to demonstrate their financial and technical capabilities.

The bill also outlines construction and maintenance requirements for microgrid lines, including the necessity of obtaining commission approval and notifying relevant utilities. It clarifies that microgrid operators will not be classified as public utilities, thereby exempting them from certain regulations. The Public Utilities Commission (PUC) is tasked with assessing the public interest in proposed microgrids, considering factors such as reliability and economic development. Additionally, the Department of Energy is required to report on microgrid activities by January 1, 2028. The act will take effect 60 days after passage, and while it does not allocate funding, it anticipates potential fiscal impacts based on the volume of microgrid applications.

Statutes affected:
Introduced: 374-F:2, 374-G:2