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Committee recommends liability protections for electric co‑ops tied to approved wildfire mitigation plans

5723822 · February 18, 2025

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Summary

Senators advanced a bill that would require electric cooperatives to develop approved wildfire mitigation plans and, if they comply, receive certain limits on wildfire liability; supporters said it balances prevention with financial stability while opponents warned limits could restrict victims' remedies.

Senator Woods presented Senate Bill 281 to the Senate Conservation Committee; a committee substitute that tightened reporting windows and adjusted plan cycles was adopted and the committee gave the measure a due‑pass recommendation.

SB281 would require electric cooperatives to develop comprehensive wildfire mitigation plans covering service‑area mapping, vegetation management, inspection and maintenance protocols, and emergency communications. The bill establishes a process for plan review and approval, ties limited liability protections to compliance with an approved plan and sets a two‑year statute of limitations for claims with a damage cap of $2,000,000 per wildfire for covered entities. The committee substitute shortened some reporting timelines and changed certain review cycles from five to three years.

Proponents, including rural electric associations, co‑op trustees and industry advocates, said the legislation encourages proactive wildfire prevention, reduces the risk that a catastrophic judgment would bankrupt a cooperative and thereby threaten rural service reliability. They said financial predictability lets co‑ops invest in preventive measures and maintain service for medically dependent customers in remote areas.

Opponents and a civil‑litigation attorney argued the proposed burden‑of‑proof changes and the aggregate damage cap could leave wildfire victims with limited remedies and shift cleanup and recovery costs to state or federal programs instead of at‑fault utilities. The committee heard both technical questions about plan content and broader concerns about balancing consumer protection with utility solvency.

The committee adopted the sponsor’s set of technical amendments requested by the house sponsor (revising emergency contact and reporting timeframes) and voted to recommend the bill. The committee recorded a unanimous due pass on the amended measure.

Committee members said the measure will receive further review in downstream committees (including judiciary) where liability provisions will face more detailed analysis.