Bill > SB1201

This bill establishes a comprehensive framework for addressing wildfire recovery and utility liability in Hawaii. The legislation creates a Wildfire Recovery Fund to provide a streamlined claims process for property owners, renters, and businesses impacted by catastrophic wildfires potentially caused by regulated utilities. The fund allows claimants to receive compensation quickly without having to prove utility negligence, while preserving their right to pursue litigation if they reject the initial offer. The bill limits the total amount of compensation and requires the Public Utilities Commission to review the utility's conduct and potentially order the utility to replenish the fund if it finds imprudent actions. The legislation also introduces a securitization mechanism that allows utilities to finance their contributions to the fund, which aims to protect utilities from potentially devastating financial instability while ensuring they can continue making critical infrastructure investments. The bill provides for legislative review of the fund in 2035, with the potential to refund customer contributions if wildfire risks have been sufficiently mitigated. Additionally, the bill makes administrative changes such as exempting the Wildfire Recovery Fund's executive director from standard civil service requirements and authorizing electric cooperatives to recover wildfire mitigation and restoration costs through rate adjustments. The effective date is set for July 1, 2050.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1201&year=2025