States would get $500 million for local power network grants

State energy offices would award competitive grants to support microgrids. The grant section does not say which applicants qualify. Recipients would pay at least 25% of project costs. States would give priority to projects that meet goals such as reducing outages or improving reliable service. The Energy Department would establish the program within one year of enactment. The $500 million would cover fiscal years 2027 through 2031.

State regulators and utilities outside state rate regulation would consider microgrid connection rules and ways to value outage protection. State regulators would review utilities whose rates they control. Deadlines would not apply if the same or comparable rules were implemented or formally reviewed before enactment. A state legislature's vote on the same or comparable rules during the three years ending on enactment would also qualify. Military installations and other Defense Department sites would be exempt from the outage-protection standards and valuation methods. Reviews and decisions would be due within two years of enactment unless one of these exceptions applies.

The Energy Department would award competitive grants to test advanced microgrids. Energy businesses, governments, and colleges could apply, along with other groups approved by the Energy Department. Congress would still need to provide the money; the proposal authorizes $200 million for fiscal years 2027 through 2031. Federal funding could cover no more than 90% of a project's cost. The department would establish the pilot program within one year of enactment.