Montana House advances bill requiring utility wildfire-mitigation plans and changing liability standard

House Bill 4 90, a bill that would require electric cooperatives and public utilities to prepare wildfire mitigation plans and changes the standard for utility liability in wildfire cases, advanced in the Montana House after floor debate and an amendment.

The bill, introduced and sponsored by Representative Bethany Regier, would require utilities and electric cooperatives to prepare wildfire mitigation plans that meet specified elements — including vegetation management, regular inspection and maintenance, equipment upgrades and coordination with state and federal agencies — and submit them for review. The bill declares that Montana will not adopt a strict liability standard for wildfire damage for utilities; instead, a plaintiff would need to show negligence. If a utility shows it substantially followed an approved mitigation plan at the location where a fire started, the bill creates a rebuttable presumption that the utility acted reasonably unless the plaintiff can prove otherwise.

The proposal offers a framework the sponsor described as a balance between protecting homeowners and ensuring utilities can continue to provide reliable service. "For wildfire mitigation plans to work and for utilities to continue to be able to deliver electricity, they need to prevent a standard of strict liability for wildfire from being established in Montana," Representative Regier said on the floor. She pointed to California’s model as an example of strict liability with large judgments and bankruptcies and warned against that outcome for Montana utilities and ratepayers.

Why it matters: Supporters said the bill will prompt utilities to adopt and implement concrete fire-prevention measures while protecting rural cooperatives from potentially crippling liability. Opponents warned the changes limit recovery for homeowners and could raise insurance costs for property owners because non-economic damages would generally be limited unless there is bodily injury or death.

Key details and debate

- Plan requirements and review: The…