HOUSE OF REPRESENTATIVES H.B. NO. 982 THIRTY-THIRD LEGISLATURE, 2025 H.D. 3 STATE OF HAWAII S.D. 1 A BILL FOR AN ACT RELATING TO WILDFIRES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
HOUSE OF REPRESENTATIVES H.B. NO. 982
THIRTY-THIRD LEGISLATURE, 2025 H.D. 3
STATE OF HAWAII S.D. 1
HOUSE OF REPRESENTATIVES
H.B. NO.
982
THIRTY-THIRD LEGISLATURE, 2025
H.D. 3
STATE OF HAWAII
S.D. 1
A BILL FOR AN ACT
RELATING TO WILDFIRES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that as the risk of catastrophic wildfires in Hawaii has increased, so has the threat of property damage from these fires. The legislature further finds that the public interest would be served by providing a rapid, efficient, and low-cost process for property owners, renters, businesses, and their insurers to obtain compensation if a regulated utility is alleged to have caused or contributed to the damage resulting from a catastrophic wildfire. The legislature also finds that under existing law, individuals and businesses must pursue civil litigation, which is a lengthy, costly, and contentious process. The legislature further finds that litigation regarding wildfire damages can impose massive costs, and those costs can overwhelm utilities, undermining their ability to make investments that the State needs. Establishing a fund, combined with limitations on liability, could help to address these challenges. Accordingly, the purpose of this Act is to: (1) Convene a working group to analyze certain proposed legislation that would establish a wildfire recovery fund; and (2) Require the working group to submit a report of its findings and any proposed legislation to the legislature prior to the convening of the 2026 regular session. SECTION 2. (a) There is established within the department of commerce and consumer affairs a working group to review, examine, and analyze the provisions related to the wildfire recovery fund as proposed in Senate Bill No. 897 and House Bill No. 982, introduced during the regular session of 2025, including: (1) A determination of the size of the wildfire recovery fund, which may include commissioning an actuarial study; (2) A study on the proper governance of the public corporation that would oversee the wildfire recovery fund; (3) Consideration of the benefits of an administrative process to provide efficient and low-cost recovery for claimants, as well as the proper mechanism for the fund to provide the administrative process; and (4) A comparison of similar funds in other states and how those funds have affected the credit ratings of other electric utilities in their respective states. (b) The working group shall consist of: (1) The director of commerce and consumer affairs, or the director's designee, who shall serve as chairperson of the working group; (2) A representative of the department of the attorney general; (3) A representative of the public utilities commission; (4) A representative of the division of consumer advocacy of the department of commerce and consumer affairs; (5) A representative of the insurance division of the department of commerce and consumer affairs; (6) A representative of Hawaiian Electric, who shall be invited by the chairperson of the working group; (7) A representative of Kauai Island Utility Cooperative, who shall be invited by the chairperson of the working group; (8) Representatives of property insurers that conduct business in the State, who shall be invited by the chairperson of the working group; and (9) Any other individuals deemed necessary by the chairperson of the working group. SECTION 3. The working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than ninety days prior to the convening of the regular session of 2026. The report shall include findings concerning the establishment and implementation of a wildfire recovery fund to provide efficient compensation for damages resulting from a future catastrophic wildfire event allegedly caused or exacerbated by a public utility while also helping to protect the financial integrity of the State's regulated utilities. SECTION 4. This Act shall take effect on July 1, 3000.
SECTION 1. The legislature finds that as the risk of catastrophic wildfires in Hawaii has increased, so has the threat of property damage from these fires. The legislature further finds that the public interest would be served by providing a rapid, efficient, and low-cost process for property owners, renters, businesses, and their insurers to obtain compensation if a regulated utility is alleged to have caused or contributed to the damage resulting from a catastrophic wildfire. The legislature also finds that under existing law, individuals and businesses must pursue civil litigation, which is a lengthy, costly, and contentious process.
The legislature further finds that litigation regarding wildfire damages can impose massive costs, and those costs can overwhelm utilities, undermining their ability to make investments that the State needs. Establishing a fund, combined with limitations on liability, could help to address these challenges.
Accordingly, the purpose of this Act is to:
(1) Convene a working group to analyze certain proposed legislation that would establish a wildfire recovery fund; and
(2) Require the working group to submit a report of its findings and any proposed legislation to the legislature prior to the convening of the 2026 regular session.
SECTION 2. (a) There is established within the department of commerce and consumer affairs a working group to review, examine, and analyze the provisions related to the wildfire recovery fund as proposed in Senate Bill No. 897 and House Bill No. 982, introduced during the regular session of 2025, including:
(1) A determination of the size of the wildfire recovery fund, which may include commissioning an actuarial study;
(2) A study on the proper governance of the public corporation that would oversee the wildfire recovery fund;
(3) Consideration of the benefits of an administrative process to provide efficient and low-cost recovery for claimants, as well as the proper mechanism for the fund to provide the administrative process; and
(4) A comparison of similar funds in other states and how those funds have affected the credit ratings of other electric utilities in their respective states.
(b) The working group shall consist of:
(1) The director of commerce and consumer affairs, or the director's designee, who shall serve as chairperson of the working group;
(2) A representative of the department of the attorney general;
(3) A representative of the public utilities commission;
(4) A representative of the division of consumer advocacy of the department of commerce and consumer affairs;
(5) A representative of the insurance division of the department of commerce and consumer affairs;
(6) A representative of Hawaiian Electric, who shall be invited by the chairperson of the working group;
(7) A representative of Kauai Island Utility Cooperative, who shall be invited by the chairperson of the working group;
(8) Representatives of property insurers that conduct business in the State, who shall be invited by the chairperson of the working group; and
(9) Any other individuals deemed necessary by the chairperson of the working group.
SECTION 3. The working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than ninety days prior to the convening of the regular session of 2026. The report shall include findings concerning the establishment and implementation of a wildfire recovery fund to provide efficient compensation for damages resulting from a future catastrophic wildfire event allegedly caused or exacerbated by a public utility while also helping to protect the financial integrity of the State's regulated utilities.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title: DCCA; Wildfire Recovery Fund; Working Group; Report Description: Establishes a working group within the Department of Commerce and Consumer Affairs to conduct a study concerning the creation of a Wildfire Recovery Fund. Requires a report to the Legislature. Effective 7/1/3000. (SD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
Report Title:
DCCA; Wildfire Recovery Fund; Working Group; Report
Description:
Establishes a working group within the Department of Commerce and Consumer Affairs to conduct a study concerning the creation of a Wildfire Recovery Fund. Requires a report to the Legislature. Effective 7/1/3000. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.