Bill > SB1201

This bill establishes a comprehensive Wildfire Recovery Fund to help property owners, renters, and businesses quickly obtain compensation for damages caused by catastrophic wildfires potentially linked to electric utilities. The bill creates two new chapters of law that establish an administrative claims process that allows claimants to receive payment without proving utility negligence, while preserving their right to pursue litigation if they reject the initial offer. The fund will be financed by initial contributions from electric utilities, with investor-owned utilities required to contribute both shareholder and customer-funded amounts. The bill also introduces a securitization mechanism that allows utilities to finance their contributions through bonds, which will be repaid through a nonbypassable charge on customer utility bills. A key provision requires the Public Utilities Commission to review the utility's conduct after a wildfire and potentially order the utility to replenish the fund if it finds imprudent actions. The legislature will reassess the fund's size in 2035 and potentially refund customer contributions if wildfire risks have been sufficiently mitigated. The bill aims to balance efficient compensation for wildfire victims with protecting utilities from potentially devastating financial liability, while incentivizing better wildfire prevention practices.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1201&year=2026