(a) By July 1, 2018, the public utilities commission shall open a proceeding to establish a microgrid services tariff.
(b) Any person or entity may own or operate an eligible microgrid project or projects; provided that the person or entity complies with all applicable statutes, rules, tariffs, and orders governing the ownership and interconnection of the project or projects.
(c) As used in this section:

“Microgrid project” means a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the utility’s electrical grid and can connect to a public utility’s electrical grid to operate in grid-connected mode and can disconnect from the grid to operate in island mode, and that:

(1) Is subject to a microgrid services tariff; and
(2) Generates or produces energy.

“Microgrid services tariff” means a tariff approved by the public utilities commission that:

(1) Is designed to provide fair compensation for electricity, electric grid services, and other benefits provided to, or by, the electric utility, the person or entity operating the microgrid, and other ratepayers;
(2) To the extent possible, standardizes and streamlines the related interconnection processes for microgrid projects; and
(3) Does not apply to a municipal utility cooperative.
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