[§269-27.9]  Determination of limitation on liability.  (a)  The commission shall initiate a proceeding for the adoption of rules pursuant to chapter 91 to establish the maximum amount each electric utility may pay to resolve claims arising from any covered catastrophic wildfires, as defined in section 663-8.8, for set periods of time established by rules in accordance with this section.  The commission shall have sole discretion to establish the maximum payable amounts and applicable periods of time.  The rules adopted by the commission under this section shall have the force and effect of law.

     (b)  The commission shall adopt rules as soon as is practicable.  The rules shall authorize the maximum payable amount each electric utility may pay to resolve qualifying damages arising from any covered catastrophic wildfires, as those terms are defined in section 663-8.8, that occur within a set period of time, or per event, as determined by the commission, without harming ratepayers or materially impacting each electric utility's ability to provide adequate and safe service consistent with the public interest.  In adopting rules to establish the maximum payable amount, the commission shall consider, at a minimum:

     (1)  Whether the maximum payable amount shall be delineated by the qualifying damages arising from covered catastrophic wildfires that occur:

          (A)  Within a set period of time that is determined by the commission; or

          (B)  Per event;

     (2)  Different approaches to establishing the maximum payable amount, such as a flat dollar limit for the set period of time, or per event; one based upon a percentage of the electric utility's market capitalization or rate base; or hybrid approaches, including examining frameworks adopted or considered in other wildfire-prone states and their effectiveness;

     (3)  Impacts on the electric utility's credit ratings, borrowing costs, and customer's electricity rates, and how the establishment of the maximum payable amount will help to achieve intended outcomes of improving the utility's credit rating and lowering costs passed on to customers;

     (4)  Impacts of the maximum payable amount upon the insurance market in the State;

     (5)  Impacts of the maximum payable amount on the indemnity, contribution, and subrogation rights of any person or entity;

     (6)  Impacts on the liability exposure of other hypothetical future co-defendants with respect to claims arising from a catastrophic wildfire;

     (7)  Impacts on potential future plaintiffs who could be negatively impacted by the establishment of the maximum payable amount;

     (8)  The affordability of electric utility service and the potential impacts on customer's electricity rates by the establishment of the maximum payable amount;

     (9)  Requirements to maintain or improve the quality of service to the electric utility's customers;

    (10)  Requirements to improve the management of the electric utility doing business in the State;

    (11)  Requirements to meet state policy goals for clean energy and climate;

    (12)  Requirements to implement wildfire mitigation plans and improve safety;

    (13)  Requirements to improve interconnection costs and timeliness; and

    (14)  The restriction or reduction of compensation packages and bonuses to officers and employees of the electric utility.

     (c)  The rules adopted pursuant to this section shall also include:

     (1)  Conditions to ensure that the establishment of the maximum payable amount is consistent with the public interest;

     (2)  Annual reporting requirements for compliance with any conditions established; and

     (3)  Procedures for corrective actions if the electric utility is not in compliance.

Rules required to be adopted under this section shall be adopted in a single rulemaking proceeding.  Upon request by the commission, the electric utility or any state or county agency shall provide any information that is relevant to the rulemaking proceedings under this section.

     (d)  Notwithstanding any other law to the contrary, the rules adopted under this section shall be presented to, and subject to the approval of, the governor.  If the governor approves the rules, the governor shall sign the rules, and the rules shall be adopted as provided in section 91-3.  If the governor does not approve the rules, the governor may return the rules to the commission with the governor's reasons for disapproval.  The governor shall have twenty-one days to consider the rules after the rules are presented to the governor, and if the rules are neither signed nor returned by the governor within that time, the rules shall be adopted as if the governor had signed them.

     If the rules are returned to the commission, the commission may start anew the rule-making process set forth in subsection (b).

     (e)  On or before the last day of the preceding set period of time established by the commission with respect to each electric utility, the commission shall adopt rules pursuant to [subsections] (b) and (c) for the next subsequent proposed period of time.

     (f)  Notwithstanding any other law to the contrary, the supreme court shall have original jurisdiction over any petition to obtain a judicial determination as to the validity of the rules adopted under this section.  The petition shall be filed with the clerk of the supreme court within thirty days of the filing of the rules with the lieutenant governor pursuant to section 91-4(b).  After an action is filed pursuant to this paragraph, the supreme court shall give priority to the action over all other civil or administrative appeals or matters and shall render a final judgment and opinion as expeditiously as possible.  No action challenging the validity of the rules may be brought except as provided in this subsection.

     In all collateral proceedings, including any civil action to recover damages for a covered catastrophic wildfire, the maximum payable amounts established by the rules shall be conclusive and not subject to judicial review.  Nothing in this section or rules adopted under this section shall be construed to create any property interest or entitlement of any kind in the electric utility, and no claim by any party, whether sounding in law or equity, or under article I, section 20, of the Hawaii State Constitution, may be brought against the commission, its commissioners, officials, and employees, or the State relating to rulemaking under this section.

     (g)  For purposes of this section:

     "Electric utility" includes an electric cooperative, as defined in section 269-27.8(b).

     "Wildfire mitigation plan" means the plan that each electric utility shall file with the commission, and which shall be periodically updated at a frequency determined by the commission, that sets forth the utility's practices to protect public safety and reduce risk to customers from wildfires and to promote the resilience of the electric system to wildfire damage, pursuant to requirements established by the commission. [L 2025, c 258, pt of §1]