The Oregon House passed House Bill 39 84 on third reading June 27, establishing a PUC‑administered wildfire safety certification for investor‑owned utilities, directing a third‑party study of catastrophic risk and recovery, and including tax‑related provisions for wildfire victims whose litigation spans the federal tax relief period.

Supporters said the bill sets standards to hold utilities to clearer wildfire‑mitigation expectations and funds a study to identify scenarios and recovery needs. Representative Marsh, the bill’s principal carrier, told colleagues the measure directs the Public Utility Commission (PUC) to require utilities applying for a wildfire safety certification to document implementation of their wildfire protection plans, address outstanding audit findings and, where appropriate, provide third‑party reviews of risk‑reduction work. The bill also charges the PUC with contracting a consultant to model catastrophic outage and recovery scenarios and to report interim findings to the Legislature during the 2026 session.

The measure includes a tax provision intended to protect wildfire survivors who receive compensation after prolonged litigation from suffering adverse tax outcomes tied to the timing of federal tax provisions. Representative Krup, a co‑carrier, described how the bill aims to preserve federal disaster tax relief benefits for victims who are paid later as a result of litigation and to provide a mechanism for at‑fault parties to make victims whole for tax liabilities that would otherwise arise.

Opponents, including Representative Anderson and other members who spoke against the bill on the floor, argued House Bill 39 84 stripped protections that had been included in an earlier, more comprehensive proposal (referred to in floor debate as Senate Bill 926). They said the earlier measure (which had passed the House Judiciary Committee) included explicit tools to prevent cost‑shifting to ratepayers, prohibit dividend or profit distributions before victim judgments are paid, give courts authority to require security or bonds from liable parties, and create prejudgment interest remedies; critics said HB 39 84 removes those items and therefore weakens victims’ prospects of timely compensation.

Supporters responded that the bill contains important steps — certification and a funded study — that improve prevention and planning, and said the tax language protects survivors who receive settlements after the federal relief window. Representative Marsh said the bill is a step toward protecting communities and keeping utilities solvent and operating.

The House voted to pass the bill; the clerk declared House Bill 39 84 passed after it received the constitutional majority.

Why it matters: Legislators framed the bill as addressing two linked problems — preventing utility‑caused wildfires through clearer certification and planning, and helping survivors obtain compensation without tax penalty after protracted litigation. Opponents argued the bill traded away stronger consumer and victim protections for these incremental steps.

What’s next: The bill tasks the PUC to adopt rules for the certification process and to report interim findings in 2026. The third‑party study is to be paid for by an assessment on electric companies that cannot be passed to ratepayers, and the PUC will determine the study scope and deliverables under the statute.

Sources from the floor: Principal carrier Representative Marsh and co‑carrier Representative Krup presented the bill on the floor; Representatives Anderson, Sosa and others spoke in opposition and concern during the debate. The House recorded a roll call and the bill was declared passed.