Minerals Committee passes wildfire mitigation and utility liability bill (HB192) with amendments

The Minerals, Business & Economic Development Committee passed House Bill 192 on Feb. 5, 2025, with amendments, voting 8‑0 with one member excused. The bill creates a statutory framework tying certain liability protections to utility wildfire mitigation plans and sets procedural requirements for wildfire‑related claims.

Committee members heard more than a dozen witnesses in support and two witnesses expressing concerns. Testimony from industry and insurers detailed changes in the liability and reinsurance markets; Phil Irwin, president and CEO of Federated Rural Electric Insurance Exchange, told the committee that available upper‑layer liability coverage for cooperatives has dropped (from as much as $62,000,000 in 2022 to $42,000,000 currently for some cooperatives) and that reinsurance pricing has risen sharply. Irwin said reinsurers’ pricing for higher layers has increased by 40%–65% in some regions; he gave examples of the cost per million dollars of coverage rising from a few thousand dollars per million in 2022 to $11,000 per million last fall and a recent quote of $23,000 per million.

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