Assembly Bill 872 proposes the establishment of the Energy Innovation Grant Program (EIGP) under the Office of Energy Innovation within the Public Service Commission. This program aims to support projects focused on energy efficiency and innovation, and it will be funded with an appropriation of $10,000,000 in general purpose revenue for each fiscal year of the 2025-27 biennium. The bill includes the creation of new statutory sections, specifically 20.155 (3) (e) and 196.379, which outline the funding and administration of the EIGP.

The bill is designed to enhance the state's commitment to energy innovation by providing financial resources for relevant projects. The EIGP will replace the previous funding model that relied on federal money from the 2009 American Recovery and Reinvestment Act. The act will take effect the day after publication or on the second day after the publication of the 2025 biennial budget act, whichever occurs later.