STRONG GRID Act of 2026

This bill amends the Public Utility Regulatory Policies Act of 1978 and the Energy Policy and Conservation Act to support microgrid deployment and electric grid resilience. It requires states to consider new regulatory standards for microgrid interconnection and for quantifying the benefits of resilience investments, establishes a new federal grant program for state-administered microgrid projects, provides technical assistance on microgrids, and creates a pilot program for innovative microgrid demonstrations.

Sec. 2, Consideration of interconnection of microgrids and the benefits of investments in resilience: This section adds two new standards for state consideration under PURPA. The first standard defines a microgrid and requires each state to consider establishing a regulatory framework for microgrid interconnection. The second standard requires each state to consider establishing standards for evaluating resilience investments and a valuation methodology for those benefits, but exempts military and defense installations from any resulting standards. It also sets deadlines for states to consider and act on these new standards, and allows states that have already acted on comparable standards to be exempt.

Sec. 3, State energy programs: This section amends the Energy Policy and Conservation Act to include microgrids in the definition of energy efficiency and conservation measures for state energy conservation plans, and to include distributed energy resources and virtual power plants as examples of energy efficiency measures.

Sec. 4, State-administered assistance for microgrids: This section creates a new federal program under which the Secretary of Energy allocates $500 million (appropriated for fiscal years 2027 through 2031) to state energy offices to run competitive grant programs for microgrid deployment. It defines microgrid, low-income community, and rural area, and lists eligible activities such as feasibility studies, design, construction, and cybersecurity upgrades. Priority is given to projects that improve resilience, benefit rural or low-income areas, or deploy renewable energy. Grant recipients must provide at least 25% of project costs, and states may use up to 10% of funds for administration.

Sec. 5, Technical assistance for utilities, utility regulators, and other stakeholders: This section requires the Secretary of Energy to provide technical assistance to eligible entities (including utilities, regulators, states, and local governments) on microgrid adoption and on implementing the new standards and grant programs in this bill. It also requires the Secretary to develop best practices for microgrid interconnection, cybersecurity, data protection, and ownership, and to host workshops and other educational activities.

Sec. 6, Pilot program for demonstration of innovative microgrid applications: This section requires the Secretary of Energy to establish a competitive grant pilot program for projects demonstrating innovative microgrid applications. Priority is given to projects that demonstrate specific innovations like ancillary services, virtual power plants, cybersecurity, black-start operation, or high renewable energy penetration. The federal share of project costs cannot exceed 90%. The Secretary must submit a report to Congress on the program's outcomes within 5 years and annual reports on funded projects. $200 million is authorized to be appropriated for fiscal years 2027 through 2031.