SB2997

SECTION 1. The legislature finds that as the risk of catastrophic wildfires in the State increases, it is imperative that electric utilities develop and implement effective plans for wildfire risk mitigation. Electric utilities should develop wildfire mitigation plans, and the public utilities commission, through a public process, should review and approve these plans and the related costs of implementation.

The purpose of this Act is to require electric utilities to design and operate in compliance with a risk-based wildfire protection plan approved by the public utilities commission.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . Wildfire protection and mitigation

§269- Electric utility workshops. The public utilities commission may periodically convene community outreach workshops to help electric utilities identify, adopt, and implement best practices regarding wildfires, including but not limited to risk-based wildfire protection and risk-based wildfire mitigation procedures and standards.

§269- Wildfire protection plans. (a) Each electric utility shall have and operate in compliance with a risk-based wildfire protection plan, which shall be filed with and evaluated and approved by the public utilities commission. The risk-based wildfire protection plan shall be based on reasonable and prudent practices and on commission standards adopted by rule or order. The electric utility shall design the risk-based wildfire protection plan to protect public safety, reduce risk to utility customers, and promote resilience of the Hawaii electric system to wildfire damage.

(b) Each electric utility shall, on an annual basis, update the risk-based wildfire protection plan on a schedule determined by the public utilities commission. The risk-based wildfire protection plan shall, at a minimum:

(1) Identify areas that are subject to a heightened risk of wildfire;

(2) Identify a means for mitigating wildfire risk that reflects a reasonable balancing of mitigation costs with the resulting reduction of wildfire risk;

(3) Identify preventive actions and programs that the electric utility will carry out to minimize the risk of utility facilities causing a wildfire;

(4) After seeking information from state and local entities, identify a protocol for the deenergizing of power lines and adjusting of power system operations to mitigate wildfires, promote the safety of the public and first responders, and preserve health and communication infrastructure;

(5) Describe the procedures, standards, and time frames that the electric utility will use to inspect utility infrastructure in areas that the electric utility identifies under paragraph (1);

(6) Describe the procedures, standards, and time frames that the electric utility will use to carry out vegetation management in areas that the electric utility identifies under paragraph (1);

(7) Identify the estimated development, implementation, and administration costs for the risk-based wildfire protection plan;

(8) Identify the community outreach and public awareness efforts that the electric utility will use before, during, and after a wildfire season; and

(9) Identify the timelines, as applicable, for development, implementation, and administration of any aspects of the risk-based wildfire protection plan.

(c) The commission shall evaluate each electric utility's risk-based wildfire protection plan and plan updates through a public process.

(d) No more than one hundred eighty days after receiving a risk-based wildfire protection plan or plan update from an electric utility, the public utilities commission shall approve or approve with conditions the plan or update if the commission finds that the plan or update is based on reasonable and prudent practices and designed to meet all applicable standards adopted or established by rule or order by the commission. The commission may, in approving the plan or update with conditions, make modifications to the plan or update that the commission determines represent a reasonable balancing of mitigation costs with the resulting reduction of wildfire risk. The public utilities commission shall issue a decision explaining any modifications at the time the risk-based wildfire protection plan or update is approved. In evaluating a risk-based wildfire protection plan, the commission may consult with and consider information from federal, state, and local governmental entities and industry organizations; provided that the commission shall identify the nature of any consultation in the decision.

(e) In the decision under subsection (d), the public utilities commission:

(1) Shall determine the reasonable costs to develop, implement, and administer the risk-based wildfire protection plan;

(2) Shall authorize the electric utility to recover these costs in rates;

(3) Shall establish a method to allow timely recovery of the costs authorized for recovery;

(4) Shall assess these costs on a statewide basis based on the development, implementation, and administration costs for the risk-based wildfire protection plan; and

(5) Shall not assess the costs based on the utility service territory that is particularly affected by any aspect of the risk-based wildfire protection plan.

(f) The electric utility shall track the costs it actually incurs to develop, implement, and administer the risk-based wildfire protection plan. In the electric utility's risk-based wildfire protection plan update, the electric utility shall report on the costs as actually incurred for the most recent past period for which the information is available. If the actual costs are less than the amounts the public utilities commission determined were reasonable in its decision under subsection (d), the commission shall direct the electric utility to refund or credit the costs to ratepayers. If the actual costs are equal to or greater than the amounts the commission determined were reasonable in its decision under subsection (d), then the commission shall not direct the electric utility to refund to ratepayers the amount the commission previously determined was reasonable, but may disallow the recovery from ratepayers of any additional costs the commission finds unreasonable. For purposes of evaluating additional costs, the following shall apply:

(1) Actual costs that are no more than fifteen per cent greater than the costs the commission previously determined were reasonable shall be presumed prudent and authorized for recovery from ratepayers absent proof by clear and convincing evidence that the costs were unreasonable; and

(2) The electric utility shall have the burden of proving the reasonableness of actual costs that are more than fifteen per cent greater than the costs the commission previously determined were reasonable.

(g) The commission may adopt rules for the implementation of this section. The rules may include but need not be limited to procedures and standards regarding vegetation management, public power safety shutoffs and restorations, pole materials, circuitry, and monitoring systems.

§269- Liability. (a) No electric utility shall be civilly liable for the death of or injury to persons, or property damage, as a result of or in connection with any the followings acts or omissions:

(1) Any act taken in accordance with a risk-based wildfire protection plan or update approved by the commission under this part; or

(2) Any failure to take an action proposed by an electric utility in a plan or update and subsequently removed from the plan by modification of the commission.

(b) In any action seeking to hold an electric utility civilly liable for the death of or injury to persons, or property damage, no inference of liability shall be drawn solely based on a failure by the electric utility to adhere to the requirements of an approved risk-based wildfire protection plan.

(c) There shall be no liability on the part of, and no cause of action of any nature shall arise against, the State, public utilities commission or the commission's agents and employees, commissioners, or commissioners' representatives for the death of or injury to persons, or property damage, for any action taken by them in the performance of their powers and duties under this part."

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2997
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII