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Idaho Senate State Affairs panel sends wildfire-liability bill for amendment after 5–4 split

Senate State Affairs Committee · March 5, 2025
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Summary

The Senate State Affairs Committee voted 5–4 on a substitute motion to send S 1124 — which would set utility wildfire mitigation standards and tie liability to compliance — to the 14th Order of Business for possible amendment after competing testimony from utilities and insurers.

The Idaho Senate State Affairs Committee voted along party lines Wednesday to send S 1124, a bill that would establish a standard of care for electric utilities’ wildfire mitigation, to the 14th Order of Business for possible amendment.

Senator Shippy and other supporters argued the bill provides clear standards and protects rural, member-owned utilities from bankruptcy if they follow an approved mitigation plan. Testimony from utility representatives and associations emphasized existing mitigation investments; Will Hart, executive director of the Idaho Consumer-Owned Utilities Association, told the committee ICUA’s 21 member cooperatives and municipal utilities serve more than 140,000 rural Idahoans and have invested over $62 million in wildfire mitigation in the prior three years.

Opponents — including insurance associations, county risk managers, trial lawyers, and timber industry representatives — warned the bill would shift costs to property taxpayers and municipalities, reduce insurers’ ability to recover losses through subrogation, and expose State endowment lands. Several witnesses cited concerns about the bill’s "substantial compliance" standard and pointed to litigation in Washington as a cautionary example.

Ken McClure, counsel for ICUA, said S 1124 would continue to allow courts to examine whether a utility acted prudently; where a utility substantially complied with its approved plan, liability protections would apply. Committee members asked about the role of the Public Utilities Commission and whether the bill’s liability immunity might be challenged; supporters said the PUC review and state-immunity language are intended to provide a public process and legal protection.

A substitute motion from Senator Shippy to send S 1124 to the 14th Order of Business for possible amendment carried on a roll-call vote: Senators Shippy, Adams and Toews, Vice Chairman Bernt and Chairman Guthrie voted aye; Senators Ruchti, Den Hartog, Harris and Anthon voted nay. The substitute replaces an earlier do-pass motion by Senator Harris.

The committee’s action pauses final passage and sends the bill forward for possible amendment and further consideration. The committee adjourned at 10:26 a.m.