STAND. COM. REP. NO. 3058

Honolulu, Hawaii

RE: S.B. No. 3344

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 3344, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WILDFIRES,"

beg leave to report as follows:

The purpose and intent of this measure is to establish and appropriate moneys for a Hawaii Wildfire Relief Fund and Hawaii Wildfire Relief Fund Corporation to provide compensation for property damage caused by catastrophic wildfires in the State.

Your Committees received written comments in support of this measure from the Hawaii Farm Bureau, International Brotherhood of Electrical Workers Local Union 1260, Hawaiian Electric, Clearway Energy Group, Maui Chamber of Commerce, and Ulupono Initiative.

Your Committees received written comments in opposition to this measure from the Hawaii Association for Justice, State Farm, and two individuals.

Your Committees received written comments on this measure from the Office of the Governor, Department of Commerce and Consumer Affairs, Office of Administrative Hearings of the Department of Commerce and Consumer Affairs, Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Department of Budget and Finance, Public Utilities Commission, Office of the Auditor, Tax Foundation of Hawaii, and Kauai Island Utility Cooperative.

Your Committees find that the Wildfire Relief Fund and Wildfire Relief Fund Corporation established by this measure will help to address the financial aftermath of any future catastrophic wildfires in the State by mitigating financial losses and compensating for resulting property damage.

Your Committees have amended this measure by:

(1) Inserting a definition for "eligible claim";

(2) Clarifying the requirements for the risk-based wildfire protection plan that an electric utility subject to proceedings for liability or insolvency claims related to a catastrophic wildfire must have approved by the Public Utilities Commission in order for the utility to participate in the Wildfire Relief Fund;

(3) Inserting provisions allowing the Public Utilities Commission to determine the timeline for submitting the risk-based wildfire protection plan, and at what point on the timeline the electric utility may participate in the Wildfire Relief Fund;

(4) Providing that a supplemental contribution by the State may not exceed the largest contribution paid by other contributors;

(5) Providing that fifty percent of an investor-owned utility's contributions to the Wildfire Relief Fund may be recovered from its customers in rates;

(6) Clarifying that if total supplemental payments are insufficient to meet the fund administrator's required amount, the State may loan the fund an amount up to the depletion percentage identified in section -16(d) of the measure; and

(7) Making technical nonsubstantive edits for purposes of clarity, consistency, and style.

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3344, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 3344, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair