House Bill 2107 would set 2-year limit and $5 million punitive cap for wildfire claims, open KCC wildfire docket

A House committee on energy and utilities heard testimony Feb. 7 on House Bill 2107, a bill that would create a specific statutory regime for civil claims against electric public utilities arising from unplanned wildfires. The bill would set a two-year statute of limitations, authorize recovery for economic losses, define how real-property damages are calculated, cap punitive damages at $5,000,000 and require the Kansas Corporation Commission (KCC) to hold a docket and trainings on wildfire risk and utility mitigation.

Supporters, including Chuck Kaysley of Evergy, told the Committee on Energy, Utilities and Telecommunications that the bill’s core purpose is to codify existing negligence standards and to prompt a formal KCC proceeding on mitigation strategies and cost recovery. “We would really like to have a formal proceeding in front of the Kansas Corporation Commission, to discuss wildfire risk mitigation and, to make sure that the state, is thinking proactively,” Kaysley said, adding that codifying the negligence standard and the punitive-damage cap would provide predictability for utility investors and customers.

Under the bill as introduced, a “fire claim” would include civil claims such as negligence, nuisance or trespass tied to an unplanned or out-of-control fire. Section 1(b) would begin a two-year limitation period “on the date that the fire was first ignited” as written. Section 1(c) would allow a plaintiff who proves causation by a preponderance of the evidence to recover economic losses for property damage. Subsection 1(d) directs that damages to real property be the lesser of: (1) the cost to restore property to its condition before the fire, or (2) the difference between fair market value before and after the fire. Section 1(e) would apply a punitive damages cap of $5,000,000 similar to an existing state cap cited in the bill memo.

Committee members and stakeholders pressed several technical and policy points. Representative Carmichael and others asked whether defining the statute of limitations to run from the ignition date could unfairly shorten plaintiffs’ time to sue if damage occurs later or is discovered later; Kaysley told the committee he and his clients would accept amending the bill to start the limitations period from the date of loss rather than the ignition date. The reviser (Nick Myers) and members discussed existing tolling and discovery rules in K.S.A. statutes and whether the bill’s language interacts with those rules.

Agriculture groups and farm organizations expressed concern about subsection (d) limiting available recovery for property losses. Claudia Hisong of the Kansas Farm Bureau said conversations with Evergy had begun and that the Farm Bureau was moving toward neutrality if the property-damage language were amended or removed. Jackie Garagiola of the Kansas Livestock Association echoed concerns that limiting how damages are calculated could reduce landowners’ ability to recover full economic losses from catastrophic events.

Proponents including the Kansas Chamber (Eric Stafford) argued the bill would provide a predictable legal environment for investment and avoid outcomes seen in higher-wildfire-risk states. Kansans for Lower Electric Rates filed neutral testimony suggesting an amendment to ensure customers are not assessed for damages paid when a utility is found negligent.

Section 2 would require the KCC to convene stakeholders, provide trainings and open an open docket to assess wildfire risk, utility readiness, mitigation strategies (for example, expanded vegetation management or public safety power shutoffs) and cost-recovery mechanisms. Kaysley told the committee such discussions should be led by the KCC so that operational trade-offs (for example, public-safety shutoffs affecting manufacturers or farm operations) are examined with broad stakeholder input.

No final committee vote was taken on HB 2107 at the Feb. 7 meeting; the chair scheduled final action for Feb. 13 along with House Bill 2225. The bill, as drafted, would take effect July 1, 2025, upon publication.

The hearing record shows active negotiations between utilities and agricultural stakeholders on the property-damage language and a technical revision request to the punitive-damages statutory cross-reference. Committee members asked the reviser to consider clarifying how the bill interacts with existing tolling and discovery doctrines in Kansas law.