SB 453: Microgrid incentive program. - California

07/17/25 - Amended Assembly → SB453 · 1 edit

MINOR

No substantive policy changes were made between these two versions of SB 453. The difference is entirely in presentation format: the bill text was re-rendered from a traditional legislative document layout (with line numbers and page headers) to a web-based page format with navigation elements. The statutory language, digest, and amendment history are identical.

TECHNICAL

The bill text was reformatted from a traditional legislative document layout (with line numbers, page markers, and standard formatting) into a web page rendering that includes site navigation elements such as quick search, bill information links, and version tracking. No changes to the actual statutory language of Section 8371.6 or Section 2 were made.

05/23/25 - Amended Senate → 07/17/25 - Amended Assembly · 5 edits · Jul 17, 2025

MODERATE

The Assembly amendment removed the entire self-generation incentive program extension (Section 379.6 amendment) from the bill, narrowing it to only address the Microgrid Incentive Program. It also added a provision requiring unallocated microgrid funds to be returned to ratepayers as bill credits by January 1, 2027, and added a clause prohibiting the commission from imposing new charges on ratepayers.

Scope change

The bill's scope was significantly narrowed. It no longer amends Section 379.6 (self-generation incentive program) and now only adds Section 8371.6 to address the Microgrid Incentive Program, with a new hard deadline for returning unspent funds to ratepayers.

SCOPE

The entire amendment to Section 379.6 of the Public Utilities Code was deleted. This had extended the self-generation incentive program until January 1, 2028 and required unallocated funds to be directed to areas with two or more deenergization events, prioritizing vulnerable communities.

The review requirement in paragraph (2) was clarified to specify that any additional actions must use only funds collected on or before January 1, 2026, limiting the scope of what the commission can do with program money.

FISCAL

New provision requires that if there are remaining unallocated Microgrid Incentive Program funds on January 1, 2027, those funds shall be returned to ratepayers as bill credits.

REQUIREMENT

New subsection (b) states the section does not authorize the commission to impose an additional charge on ratepayers or require collection of additional funds from ratepayers.

TECHNICAL

Assembly Member Schultz was added as a co-author of the bill.

05/06/25 - Amended Senate → 05/23/25 - Amended Senate · 3 edits · May 23, 2025

MINOR

The May 23 amendment to SB 453 replaces the automatic mandate that all unallocated Microgrid Incentive Program funds be allocated on and after January 1, 2026 with a structured process: electrical corporations must report the status of awarded and unallocated funds by January 15, 2026, the commission reviews that information, and only if it determines additional actions are needed must it consider using a third-party administrator and direct remaining funds to areas with two or more deenergization events. This shifts the bill from a blanket allocation requirement to a conditional, review-based approach while preserving the same targeting priorities for vulnerable communities.

REQUIREMENT

The old provision required that on and after January 1, 2026, all unallocated Microgrid Incentive Program funds 'shall be allocated.' The new provision instead requires each electrical corporation to report the status of awarded or unallocated funds to the commission by January 15, 2026, then gives the commission a review step before any further action is mandated.

ENFORCEMENT

Allocation of remaining unallocated funds to areas with two or more deenergization events (prioritizing vulnerable communities and critical infrastructure operators) is now conditional on the commission determining that additional actions are needed after its review, rather than being an automatic requirement triggered by a date.

TIMELINE

The operative date for the allocation mandate changed from 'on and after January 1, 2026' (automatic) to a reporting deadline of January 15, 2026 followed by commission review and discretionary action.

03/26/25 - Amended Senate → 05/06/25 - Amended Senate · 4 edits · May 6, 2025

MODERATE

The May 6 amendment removes the natural gas price spike reporting requirement (former Section 913.18) entirely, narrowing the bill to energy-only provisions. It also significantly restructures the Microgrid Incentive Program funding mechanism, replacing a simple allocation mandate with a multi-step process requiring utilities to report fund status by January 15, 2026, followed by PUC review and potential use of a third-party administrator before directing unallocated funds to deenergization-affected areas.

SCOPE

Section 913.18 is deleted entirely. This section required the PUC to submit a report to the Legislature by February 1, 2026 on the status and findings of its investigation into natural gas price spikes during winter 2022-2023, including any related Federal Energy Regulatory Commission investigations. The bill title changes from 'relating to natural gas energy' to 'relating to energy.'

The state-mandated local program designation changes from 'no' to 'yes,' reflecting that the new reporting and review requirements impose obligations on local agencies or school districts.

REQUIREMENT

Section 8371.6 (Microgrid Incentive Program) is restructured from a single allocation mandate into a three-step process: (1) PUC requires each electrical corporation to report the status of awarded and unallocated funds by January 15, 2026; (2) PUC reviews those reports and determines whether additional actions are needed; (3) if additional actions are needed, PUC must both consider using a third-party administrator AND ensure unallocated funds are allocated to areas with two or more deenergization events, prioritizing vulnerable communities.

ENFORCEMENT

A new requirement is added for the PUC to consider the use of a third-party administrator to manage the Microgrid Incentive Program for any electrical corporation where the PUC determines additional actions are needed to advance the program.

02/19/25 - Introduced → 03/26/25 - Amended Senate · 6 edits · Mar 26, 2025

MODERATE

The amended Senate version dramatically expands SB 453 from a single-section bill requiring a PUC report on winter 2022-2023 natural gas price spikes into a multi-section bill that also extends the self-generation incentive program through 2028 and directs unallocated funds from both the self-generation and microgrid incentive programs toward areas with repeated power outages, prioritizing vulnerable communities. The original natural gas reporting requirement is retained but renumbered as the final section.

Scope change

The bill expanded from a narrow single-section reporting requirement on natural gas price spikes to a comprehensive energy resilience funding bill covering three distinct areas: extending and redirecting self-generation incentive program funds, directing microgrid incentive program funds toward outage-prone vulnerable communities, and retaining the original natural gas price report requirement.

SCOPE

Added Section 379.6 amendment extending the self-generation incentive program from January 1, 2026 to January 1, 2028, and requiring that on and after January 1, 2026, all unallocated funds be directed to areas that have experienced two or more deenergization events.

Added new Section 8371.6 requiring that on and after January 1, 2026, unallocated Microgrid Incentive Program funds be allocated to areas with two or more deenergization events, with the same vulnerable community and critical infrastructure prioritization.

Changed the state-mandated local program designation from 'no' to 'yes' in the fiscal note, reflecting that the bill now imposes obligations on local agencies through the new criminal penalty provision.

ELIGIBILITY

Added prioritization requirements for vulnerable communities, access and functional needs populations who rely on electric medical devices and refrigerated medications, and customers operating critical community infrastructure when allocating self-generation incentive program funds.

TIMELINE

Changed the date for repayment of unallocated self-generation incentive program funds from January 1, 2026 to January 1, 2028, giving the program two additional years of operation.

FISCAL

Added a no-reimbursement provision under Article XIII B of the California Constitution, stating that no state reimbursement is required because the act creates a new crime or infraction.

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