Bill > HB881

This bill establishes the Catastrophic Wildfire Securitization Act, which allows public utilities to securitize rates to raise capital for costs and expenses related to catastrophic wildfires, specifically in response to the 2023 Lahaina fire. The legislation creates a comprehensive framework for public utilities to issue recovery bonds that can be used to fund wildfire-related expenses, including disaster relief, litigation, settlements, and risk mitigation efforts. Key provisions include allowing the public utilities commission to issue financing orders that permit utilities to create fixed recovery charges on ratepayers' bills, which will be used to repay these bonds. The recovery charges will be non-bypassable and will continue until the bonds are fully paid off, ensuring that the utility can recover its costs without immediately burdening its financial structure. The bill also specifies that these recovery bonds are not a direct obligation of the state and will not pledge the state's full faith and credit, but will be secured solely by the future revenue from the fixed recovery charges. Additionally, the legislation provides mechanisms for true-up adjustments to ensure accurate cost recovery and includes protections for bondholders and the utility, such as making the recovery property irrevocable and establishing clear priority for security interests in the recovery property.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=881&year=2026