CA AB740

Requires the Public Utilities Commission to ensure microgrid commercialization standards do not impose size caps on microgrids that use non-combustion technologies and can operate continuously for 72 hours or longer.

Requires local publicly owned electric utilities to ensure their standardized microgrid interconnection processes do not impose size caps on microgrids meeting the same non-combustion and 72-hour continuous operation criteria.

Mandates local utilities establish a standardized interconnection process for customer-supported microgrids within 180 days of a customer or developer's request, including separate electrical rates and tariffs.

Requires utility microgrid rates to not shift costs between microgrid and non-microgrid customers and ensures microgrid components comply with applicable regulatory requirements.