Bill > HB881

This bill establishes the Catastrophic Wildfire Securitization Act, which provides a mechanism for public utilities in Hawaii to raise capital to address the financial impacts of catastrophic wildfires, specifically in response to the 2023 Lahaina fire. The legislation allows utilities to issue "recovery bonds" that can be financed through non-bypassable fixed recovery charges applied to utility customers' bills. These charges would help the utility recover costs related to wildfire expenses, such as disaster relief funds, litigation, settlements, and risk mitigation efforts. The bill defines a catastrophic wildfire as one that damages or destroys more than 500 dwellings or commercial buildings and creates a detailed framework for how these recovery bonds can be issued, including strict guidelines for the Public Utilities Commission's approval process. The recovery charges would be imposed on existing and future ratepayers in the utility's service territory until the recovery bonds and associated financing costs are fully paid, and the bonds would be non-recourse to the utility's credit or assets beyond the specific recovery property. Importantly, the bill aims to help preserve the utility's financial viability and prevent rate increases that could result from a reduced credit rating, while providing a structured approach to managing extraordinary wildfire-related expenses.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=881&year=2025