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California code, CMS waiver open path for hospital microgrids to replace generators

Department of Health Care Access and Information webinar: Power Resilience, Regulatory Compliance, and the Future of Health Care Infrastructure · July 23, 2026
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Summary

Presenters explained how 2022 California code language and a CMS categorical waiver allow properly certified microgrids to serve as essential electrical systems for hospitals, subject to seismic certification, UL/standards, commissioning and required fuel-duration demonstrations.

State code changes and federal coordination have together opened an implementation pathway for health-care microgrids to act as an essential electrical source, presenters said. Jamie Schneck of OSHPD described adopting microgrid language into the California Electric Code and noted the need for seismic certification, UL/NRTL approvals and a documented commissioning sequence to demonstrate reliability comparable to diesel generators.

"article 5 17 30 says that microgrid can serve as the essential power source as long as it's sufficiently reliable," Schneck said. He added that CMS issued a categorical waiver enabling hospitals to follow the updated code rather than older NFPA-110 generator-only language, which helps with funding and Medicare/Medicaid compliance for projects that meet the code and commissioning requirements.