STAND. COM. REP. NO. 2674
Honolulu, Hawaii
RE: S.B. No. 3096
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Second State Legislature
Regular Session of 2024
State of Hawaii
Sir:
Your Committee on Public Safety and Intergovernmental and Military Affairs, to which was referred S.B. No. 3096 entitled:
"A BILL FOR AN ACT RELATING TO WILDFIRE RISK MITIGATION,"
begs leave to report as follows:
The purpose and intent of this measure is to create a process for electric utilities to develop and submit wildfire protection plans to the Public Utilities Commission for approval and allow the recovery of related costs and expenses through securitization, while avoiding a disproportionate impact on a specific ratepayer or county.
Your Committee received testimony in support of this measure from the Office of the Governor, Department of Commerce and Consumer Affairs, Hawaii State Energy Office, Public Utilities Commission, Ulupono Initiative, Hawaiian Electric, International Brotherhood of Electrical Workers Local 1260, Kauaʻi Island Utility Cooperative, and Life of the Land.
Your Committee received comments on this measure from the Department of Budget and Finance and Department of the Attorney General.
Your Committee finds that the risk of catastrophic wildfires has increased, making it imperative that electric utilities develop, implement, and administer effective plans for wildfire risk mitigation. According to research conducted by a working group from 2019-2020, securitization may be the most efficient, least-cost way to finance wildfire risk mitigation costs and expenses and have an extensive track record of success. Your Committee recognizes that the establishment of wildfire risk protection plans as provided under this measure will strengthen wildfire prevention and mitigation efforts and approaches related to the impacts of wildfires in our State.
Your
Committee has amended this measure by:
(1) Adding a definition of "catastrophic wildfire";
(2) Amending
the definitions of "financing entity" and "wildfire protection
costs";
(3) Specifying that the best practices discussed in the electric utility workshops, which the Public Utilities Commission may periodically convene, may be incorporated into the proposed wildfire protection plans and updates submitted to the Public Utilities Commission for approval;
(4) Modifying
various components, requirements, and procedures relating to the wildfire
protection plans;
(5) Requiring
an electric utility to track and report to the Public Utilities Commission the
costs that the electric utility actually incurs to develop, implement, and
administer the risk-based wildfire protection plan and providing direction when
those actual costs are under, equal to, or over reasonable amounts;
(6) Expanding the scope of the Public Utilities Commission's rules or orders pertaining to wildfire protection plans to include data governance and risk-based decision-making;
(7) Requiring
the Public Utilities Commission to determine the reasonable costs to develop,
implement, and administer the plan to authorize the electric utility to recover
the costs in rates;
(8) Clarifying
that no electric utility shall be civilly liable for the death of or injury to
persons, or property damage, under certain conditions;
(9) Clarifying
that the Public Utilities Commission, the State, and its agents or employees
shall not be liable for the death of or injury to persons, or property damage,
for any actions taken by them in the performance of their powers and duties;
(10) Clarifying that an electric utility materially
failing to comply with an approved plan or part of an approved plan shall be
inadmissible in any lawsuit or other action against the electric utility seeking
compensation for the alleged death of or injury to persons, or property damage;
(11) Deleting language that would have established
civil penalties for non-compliance with an approved plan or part of an approved
plan;
(12) Requiring the Public Utilities
Commission, in exercising its duties with respect to financing orders to issue
bonds to recover any wildfire protection costs, to consider whether such costs
are consistent with the public interest;
(13) Modifying an electric utility's role
under a wildfire protection plan financing order;
(14) Authorizing the Public Utilities
Commission to create a nonbypassable surcharge referred to as a wildfire
protection fee that shall be applied to recover financing costs and wildfire protection
costs in the absence of a financing order;
(15) Establishing provisions related to security interests in wildfire protection property;
(16) Establishing provisions related to transfers of wildfire protection property;
(17) Establishing provisions related to recovery bonds;
(18) Establishing provisions related to security
interests in recovery property and financing statements;
(19) Establishing provisions related to
transfers of recovery property; and
(20) Making technical, nonsubstantive amendments
for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Public Safety and Intergovernmental and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3096, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3096, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Public Safety and Intergovernmental and Military Affairs,
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________________________________ GLENN WAKAI, Chair |
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