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Wildfire committee pulls utility-liability bill, approves stakeholder letter urging negotiations
Summary
Sen. Marchman withdrew a proposed liability bill for utilities to allow broader stakeholder negotiations; the Wildfire Matters Review Committee approved a letter (9–1) urging utilities, insurers and regulators to meet and report back before the 2026 session.
DENVER — The Wildfire Matters Review Committee on Aug. 26 approved a letter to utilities, insurers and regulators urging an inclusive stakeholder process on utility-wildfire liability and paused consideration of a draft liability bill.
Senator Marchman, who had planned to present bill number 5, said she was withdrawing it “for today” after stakeholder feedback and described current liability rules as exposing utilities to catastrophic financial risk. “A utility can be held strictly liable for damages from a wildfire allegedly linked to its equipment, even if that utility has taken every reasonable step to prevent ignition,” she said, arguing the uncertainty can drive insurance premiums and costs to consumers.
Samantha Falco, legislative counsel, read a committee letter dated Aug. 26 that asked relevant parties to begin substantive discussions immediately and to report to assigned committee members before the 2026 legislative session. The letter stated the committee’s intent to see a comprehensive, balanced bill next session and said bills advanced to session must match the committee-approved draft if delayed-bill permission is granted.
Committee members debated whether to sign; Senator Bazely said he would not add his name because he did not see a role for state government in the matter. The motion to approve and send the letter passed by the committee, 9–1. The chair said the letter will be posted on the committee website.
Why it matters: Committee staff warned the committee’s statutory authority will lapse on Sept. 1, 2025, which complicates the normal interim bill process. OLS told sponsors to seek delayed-bill permission from chamber leadership and indicated leadership would allow delayed bills but required that the bills presented to legislative council be identical to the committee-approved drafts and that sponsors present on Nov. 14, 2025. The committee's pause on bill 5 signals a preference for negotiated, stakeholder-driven solutions before advancing complex liability changes.
What’s next: The committee directed stakeholders to convene and report back to assigned members before the 2026 session; Senator Marchman said she intends to bring a consensus bill in 2026.
Quotes and attributions are drawn from the committee proceeding.
