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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3917
Sponsored by Representatives MARSH, MANNIX
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: Creates a fund to pay for damage claims arising from catastrophic wildfires. (Flesch
Readability Score: 60.7).
Creates the Catastrophic Wildfire Fund to pay for property damage claims arising from cat-
astrophic wildfires that are ignited by the facilities of a public utility. Allows a public utility to
participate in and capitalize the fund. Defines “public utility.”
Requires the Public Utility Commission to appoint an independent administrator to administer
payments of eligible claims arising from a catastrophic wildfire. Provides for an independent ad-
ministrator to prepare and present a plan of operations. Provides for a process to recapitalize the
fund as needed, as determined by an independent administrator. Provides for procedures if an inde-
pendent administrator determines that the fund is depleted.
Establishes a claims process. Limits the amount of property and noneconomic damages that may
be recovered by a claimant from the fund.
Directs the commission to investigate whether the actions and conduct of a public utility prior
to the ignition of a catastrophic wildfire were prudent or imprudent. Allows the commission to re-
quire a public utility whose actions were imprudent to reimburse the fund in whole or in part.
Allows a public utility, upon approval by the commission, to issue bonds and securitize debt for
costs and expenses associated with contributions to the fund.
Applies to wildfires that begin on or after the effective date of this Act.
Declares an emergency, effective on passage.
A BILL FOR AN ACT
Relating to a catastrophic wildfire fund; creating new provisions; amending ORS 279A.025, 293.701
and 757.457; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Legislative findings.The Legislative Assembly finds and declares that:
(1) Electric utilities provide an essential service to residents of this state that powers the
economy, is fundamental to modern life and provides a mechanism to attract capital for in-
vestment in a clean and safe future.
(2) Due to a variety of factors, including global climate change, increased fire fuel loads
and construction of homes and other structures in the wildland-urban interface, the preva-
lence of, extent of damage caused by, and risks posed from, catastrophic wildfire necessitate
a review of and modification to the manner in which compensation is provided to residents
who may face property loss from such a conflagration.
(3) With increased catastrophic fire risk, electric utilities are in the unenviable position
of being required to serve all customers with a product that can, in certain circumstances,
be the ignition source of a fire, while also needing to improve infrastructure resilience, which
requires raising and investing capital from a marketplace that reduces the credit worthiness
of the utility for the same risk. The recognition of this risk creates increased costs to utility
customers and, as has been seen in other states, potentially causes the bankruptcy of a
utility and the inability of the utilities’ customers to be made whole.
(4) It is the intent of the Legislative Assembly to provide a mechanism that supports the
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
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creditworthiness of electric utilities, reduces costs to utility customers and promotes the
safety and reliability of the electrical system. The creation of the Catastrophic Wildfire
Fund, and its funding through customer and shareholder contributions, does not establish
an exclusive remedy for payment of eligible claims or prohibit a public utility from proposing,
and for the Public Utility Commission from approving in the public interest, rate recovery
of claims paid by utilities for damages caused by catastrophic wildfire.
SECTION 2. Definitions.As used in sections 2 to 9 of this 2025 Act:
(1) “Allowed property damages” means the sum of:
(a) The lesser of the difference in the fair market value of real or personal property im-
mediately before and immediately after a catastrophic wildfire, or the cost of restoring real
or personal property to the condition the property was in immediately before a catastrophic
wildfire; and
(b) Any other objectively verifiable monetary losses arising out of the loss of real or
personal property other than the diminution in fair market value or restoration costs under
paragraph (a) of this subsection, such as lost income from damage to property used in a
business, as a place of work or alternative living expenses resulting from being temporarily
displaced from residing in the damaged property.
(2) “Catastrophic wildfire” means a fire that:
(a) Is determined, by the State Forester, the State Fire Marshal or other state govern-
ment official with responsibility over such matters, to have likely been ignited by the facili-
ties of a public utility;
(b) Damages homes, buildings, structures or natural areas; and
(c) Requires significant resources to extinguish.
(3) “Claimant” means a person who may make a claim of loss under section 7 of this 2025
Act to be paid from moneys in the Catastrophic Wildfire Fund for economic damages arising
from a catastrophic wildfire and who is not a public utility.
(4) “Fair market value” means the amount that a willing buyer would pay to a willing
seller for property in an arm’s length transaction if both parties were fully informed about
all advantages and disadvantages of the property and neither party is acting under a
compulsion to buy or sell, as determined by:
(a) A state certified appraiser in the case of real property; or
(b) A professional appraiser in the case of personal property.
(5) “Noneconomic damages” means subjective, nonmonetary losses, including but not
limited to pain, mental suffering, emotional distress, humiliation, injury to reputation, in-
convenience, interference with normal and usual activities apart from gainful employment,
loss of consortium and loss of care, comfort, companionship and society.
(6) “Public utility” means a public utility, as defined in ORS 757.005, that provides electric
power to retail electricity customers and is regulated by the Public Utility Commission under
ORS chapter 757.
(7) “Serious bodily injury”’ means bodily injury that involves:
(a) A substantial risk of death;
(b) Protracted and obvious disfigurement; or
(c) Protracted loss or impairment of the function of a bodily member, organ or mental
faculty.
(8) “State certified appraiser” means an individual who has been certified as a state
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certified appraiser under ORS 674.310 and is qualified to appraise the property that is the
subject of a fair market value determination.
(9) “Wildfire protection plan” means a wildfire protection plan approved by the Public
Utility Commission under ORS 757.963.
SECTION 3. Catastrophic Wildfire Fund created.(1) There is created in the State
Treasury, separate and distinct from the General Fund, the Catastrophic Wildfire Fund.
Moneys in the fund shall be invested as provided in ORS 293.701 to 293.790 and the earnings
from such investments, including any interest, shall be credited to the fund. The State
Treasurer may create subaccounts in the fund, such that moneys contributed may be ac-
counted for separately by each public utility.
(2) The moneys in the fund are continuously appropriated to the Public Utility Commis-
sion to be used for the purposes described in sections 2 to 9 of this 2025 Act.
(3) The fund shall consist of:
(a) Moneys contributed to the fund by public utilities.
(b) Moneys appropriated to the fund or authorized by the Legislative Assembly.
(c) Other moneys derived from gifts, grants, bequests or other sources pledged to the
state for the purpose of providing financial assistance for recovery from catastrophic
wildfire.
(d) Reimbursements of moneys paid to claimants from the fund.
(e) Earnings on moneys in the fund.
(f) Moneys obtained by the state through any suit, matter, action, cause or proceeding
in any court taken on behalf of the fund.
(4) All payments authorized to be made from the fund by the commission or an inde-
pendent administrator appointed under section 6 of this 2025 Act, including payments for
claims for catastrophic wildfire damages, salaries and compensation for the independent ad-
ministrator or other employees and assistants of the independent administrator, and other
overhead and expenses, shall be made from the fund.
(5) There is created in the fund a revolving administrative account in the amount of $1
million, which shall be deposited with and maintained by the State Treasurer. The adminis-
trative account shall be available for disbursement to an independent administrator ap-
pointed under section 6 of this 2025 Act to carry out the duties and functions of the
independent administrator as directed by the commission.
(6) The fund is to be held in trust for the benefit of claimants and shall be used exclu-
sively for the purposes set forth in sections 2 to 9 of this 2025 Act. The State of Oregon has
no liability for payment of claims in excess of moneys available in the fund.
SECTION 4. Initial capitalization; contribution amounts.(1) A public utility shall deter-
mine the amount of public utility’s initial capitalization of the Catastrophic Wildfire Fund.
In determining the amount of the public utility’s initial capitalization of the fund, a public
utility may use any available information, including:
(a) National payments made by property insurers for wildfire damage;
(b) Opinions of wildfire experts of the ongoing risk of wildfire in Oregon;
(c) Information from national or state associations;
(d) Experiences of utilities in other states;
(e) Comparisons to other states that have experienced significant loss from wildfire or
that have adopted similar funds; and
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(f) Information from banks, accountancies and professional services firms.
(2) The total amount of the capitalization of the fund, including any accounts and sub-
accounts, from all public utilities that contribute to the fund may not exceed $800 million.
(3) After determining the amount of the public utility’s initial capitalization of the fund,
a public utility shall capitalize the fund. A public utility that capitalizes the fund shall file a
nonbypassable schedule of tariffs with the Public Utility Commission designed to collect the
amount needed for initial capitalization. The public utility shall collect the amount needed
for the initial capitalization over a reasonable period of time not to exceed 10 years. The
amount collected must reflect the following:
(a) Risks associated with operating without the fund;
(b) Geographic size of the public utility’s service area;
(c) Number of customers of the public utility;
(d) For lines located in areas that are assigned an extreme, high or moderate wildfire risk
class by the State Forestry Department or public utility’s wildfire protection plan, the length
of the public utility’s above-ground transmission lines, based on the percentage of the public
utility’s ownership interest, and the length of the public utility’s above-ground distribution
lines;
(e) Findings and elements in the public utility’s wildfire protection plan;
(f) Demonstrated effectiveness of the public utility’s past and planned risk mitigation
activities;
(g) Societal benefits provided by the public utility, such as the benefits of providing
electricity to remote areas;
(h) The need to avoid imposing an unreasonable financial burden on the utility custom-
ers;
(i) Amounts contributed to the fund from other sources, including from shareholders of
the public utility and taxes and fees; and
(j) Amounts collected as bondable rate recovery expenditures for contributions to the
fund under a financing order issued under ORS 757.461.
(4) A nonbypassable schedule of tariffs filed under subsection (3) of this section may not
increase a customer’s bill in any customer rate class by more than three percent.
(5) The amount of a public utility’s initial capitalization of the fund under this section
shall be allocated between the public utility’s customers and the public utility’s shareholders.
The customers of the public utility may not be required to contribute more than 50 percent
of the amount of the public utility’s initial capitalization.
(6) A public utility may use a financing order issued under ORS 757.461 to collect from
customers of the public utility the amount needed for the public utility’s initial capitalization.
SECTION 5. Supplemental funding; recapitalization. (1) An independent administrator
appointed under section 6 of this 2025 Act shall notify the participating public utilities and
the Public Utility Commission that supplemental contributions may be necessary to ensure
solvency of the Catastrophic Wildfire Fund if the independent administrator determines that
payments made by or claims on the fund leave the fund with insufficient reserves to meet
potential future claims.
(2) Within the notification, the independent administrator shall allocate responsibility
among the public utilities for the supplemental contributions consistent with respective ini-
tial contributions of each public utility, except that the independent administrator shall
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modify the relative responsibility on the basis of the causes of catastrophic wildfires that
have caused claims on the fund and recommend to the commission the amounts necessary
to be required from each public utility to return the fund, or its subaccounts, to full funding.
(3) Based on the recommendations from the independent administrator, the commission
may direct a public utility to recapitalize the fund through customer rates or rate recovery
expenditures, subject to the considerations and limitations provided for initial contributions
under section 4 of this 2025 Act and determinations of prudent actions and conduct under
section 8 of this 2025 Act.
(4) The independent administrator may recommend to the Legislative Assembly that the
Legislative Assembly provide an appropriation to the Catastrophic Wildfire Fund from the
General Fund to recapitalize the Catastrophic Wildfire Fund if, in the determination of the
independent administrator, a statewide contribution to the fund is justified based on the size,
scope, damage or impact of a specific wildfire.
SECTION 6. Independent administrator; appointment; duties. (1)(a) Within 30 days after
the date on which a wildfire is ignited, the State Forester or the State Fire Marshal shall
notify the Public Utility Commission whether the wildfire was a catastrophic wildfire likely
ignited by the facilities of a public utility.
(b) A notice that identifies a wildfire as a catastrophic wildfire that was likely ignited by
the facilities of a public utility must include the name of the public utility.
(2) Within 30 days after receiving a notice that contains information provided under
subsection (1)(b) of this section and at the request of the public utility identified under sub-
section (1)(b) of this section, the commission shall appoint and contract with an independent
administrator for the purpose of administering the payment of eligible claims arising from
the catastrophic wildfire.
(3) An independent administrator appointed under this section shall oversee the dis-
bursement of moneys from the Catastrophic Wildfire Fund, consistent with the rules adopted
by the commission under this section. The independent administrator serves at the pleasure
of the commission. The independent administrator may:
(a) Receive, process, and determine payments for, claims for losses arising out of prop-
erty damage caused by a catastrophic wildfire; and
(b) Undertake such other activities as are related to the operation, management and
administration of the fund, as approved by the commission by rule or order.
(4) The commission may direct the independent administrator to:
(a) Prepare a plan of operations related to the operation, management and administration
of the fund, including the reporting on the fund’s assets and projections for the durability
of the fund, and present the plan of operation to the commission.
(b) Present the plan of operations to the appropriate committees of the Legislative As-
sembly, including any request to the Emergency Board for an increase in any expenditure
limitation that applies to the fund.
(5) An independent administrator may not be employed or contracted for a term that
exceeds the period of time necessary to develop appropriate administrative processes, provide
payments to claimants from a catastrophic wildfire, finalize and review the effect on the fund
of payments for damages and wind up operations of the independent administrator.
(6) An independent administrator appointed under this section, or any agent or employee
engaged by the independent administrator under this section, is not subject to civil or
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criminal liability for any act performed or omitted, or any obligation entered into, in an of-
ficial capacity when done, omitted, or entered into, in good faith and without intent to de-
fraud.
(7) The Public Contracting Code does not apply to a contract for an independent admin-
istrator appointed under this section.
(8) The commission may adopt rules to implement this section and section 7 of this 2025
Act, including rules that provide for:
(a) The manner in which the commission shall conduct a request for proposals for an
independentadministrator.
(b) The criteria, experience and qualifications required of an independent administrator.
(c) A list of pre-approved independent administrators.
(d) The management, review and proper disbursement of moneys from the fund, including
for the employment, termination and supervision of assistants, experts, field personnel and
other agents or employees that may be required in the administration of the independent
administrator’s duties, and limits on administrative expenses.
(e) Methods for disbursement of moneys from the revolving administrative account cre-
ated under section 3 of this 2025 Act.
(f) In the appointment of an independent administrator, processes for consulting with and
considering the recommendations of a participating public utility whose facilities are the ig-
nition source.
SECTION 7. Claims process.(1) Within 30 days after the date on which an independent
administrator is appointed under section 6 of this 2025 Act, the independent administrator
shall provide public notice of the availability of the Catastrophic Wildfire Fund for claims of
loss, including economic and noneconomic damages, arising out of a catastrophic wildfire.
The independent administrator shall work with participating public utilities, local govern-
ments, statewide and local news media and social media providers to provide the notice. The
notice must provide information regarding how a claimant can submit claims of loss to the
independent administrator.
(2) A claim of loss must be brought within 18 months after the date on which the cat-
astrophic wildfire was ignited. A claimant shall submit the claim of loss to the independent
administrator in the manner provided by the independent administrator.
(3) To be eligible for compensation from the fund, a claim of loss must establish, at a
minimum:
(a) That the catastrophic wildfire damaged real or personal property.
(b) The extent of the allowed property loss caused by the catastrophic wildfire.
(c) Any claims of noneconomic damages and justification for those claims.
(d) The presence of any insurance policy of the claimant that provides coverage for the
loss and the amount of the coverage.
(4) Within 120 days after the date on which a claimant submits a claim of loss, the in-
dependent administrator shall determine:
(a) Whether the documentation establishes the elements required under subsection (3)
of this section; and
(b) The appropriate amount of the payment to the claimant from the fund.
(5) If the independent administrator determines that documentation is incomplete or is
insufficient to evaluate a claim, the independent administrator may request that the claim-
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ant provide additional documentation within 60 days. After the 60-day period, the independent
administrator may deny the claim if the independent administrator determines that the
documentation is incomplete or is insufficient to establish the elements required under sub-
section (3) of this section.
(6) If the independent administrator determines that a claim is complete and establishes
the elements required under subsection (3) of this section, the claimant is eligible to receive
no more than the following amounts from the fund, less any actual or anticipated amounts
the claimant recovers from insurers:
(a) Eighty percent of the allowed property damages as determined by the independent
administrator;and
(b) Noneconomic damages in an amount not greater than $100,000, for any occurrence
where there is no serious bodily injury or death, adjusted on an annual basis for inflation,
beginning July 1, 2026, based on the Consumer Price Index for All Urban Consumers, West
Region (All Items), as published by the Bureau of Labor Statistics of the United States De-
partment of Labor.
(7) An insurer of real or personal property damaged by a catastrophic wildfire may make
a claim on behalf of an insured for payments made by the insurer to the insured. If an
insurer makes a claim on behalf of an insured for payments made by the insurer to the in-
sured, the rights of the insured up to the policy limits provided by the insurer are subrogated
to the insurer. An insurer may not receive a payment from the fund greater than the
amount the insurer paid to the insured under the policy limits.
(8) Within 30 days after the date on which the independent administrator determines the
amount that a claimant is eligible to receive from the fund, the claimant may request ad-
ministrative review of the determination. The claimant may provide additional information
for the independent administrator’s consideration. The independent administrator shall no-
tify the claimant of the independent administrator’s decision on the review within 30 days
after the date of receipt of the request for review. The decision shall be final and not
appealable.
(9) The fund does not provide an exclusive remedy for payment of eligible claims. How-
ever, a civil action may not be maintained against a public utility participating in the fund
for loss for which compensation is obtained from the fund by the claimant, regardless of
whether the fund compensated the full or partial amount of the claim for loss.
(10)(a) If the independent administrator determines that there were discrete, independent
and contributing causes or factors to the size, severity, spread or magnitude of the wildfire
attributable to persons other than the public utility whose facilities provided the ignition, and
those causes or factors had the effect of increasing the amount or size of the claims paid
from the fund, the independent administrator may notify the Public Utility Commission of
the independent administrator’s determination.
(b) The commission may request that the Attorney General, under ORS 180.060, maintain
an action on behalf of public utility customers to seek contributions from the persons de-
scribed in paragraph (a) of this subsection. Any moneys awarded or obtained by the Attorney
General in the action, except for attorney fees and costs, shall be deposited in the fund.
SECTION 8. Conduct of public utility; investigation.(1) As used in this section:
(a) “Prudent” means consistent with reasonable actions and conduct that a public utility
would take in good faith under similar circumstances at the relevant point in time based on
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the information available to the public utility at the relevant point in time.
(b) “Reasonable actions and conduct” means the range of possible practices, methods or
acts consistent with utility system needs, the interest of rate payers and the requirements
of governmental agencies of competent jurisdiction, and is not limited to only the optimum
practice, method, or act to the exclusion of other possible practices, methods or acts.
(2) If the Public Utility Commission appoints an independent administrator to pay from
the Catastrophic Wildfire Fund claims for damages attributable to a catastrophic wildfire,
the commission shall initiate an investigation pursuant to ORS 756.515 to review the public
utility’s actions and conduct prior to the ignition of the catastrophic wildfire to evaluate and
determine whether the actions of the public utility were prudent. The commission may con-
duct the investigation as a contested case in the manner provided by rule by the commission.
The commission shall make a determination of prudence or imprudence within 180 days of
initiating an investigation under this section.
(3)(a) Notwithstanding ORS 757.963 (6), in any proceeding initiated under this section, the
commission shall make a preliminary determination that the public utility’s actions and
conduct were prudent if commission finds that at the time of the ignition of the catastrophic
wildfire the public utility had a risk-based wildfire protection plan approved under ORS
757.963 and the public utility’s actions and conduct were materially consistent with and in
compliance with the risk-based wildfire protection plan.
(b) A party to the proceeding may show that a public utility’s actions and conduct, de-
spite being materially consistent with and in compliance with the public utility’s risk-based
wildfire protection plan, were imprudent by providing clear and convincing evidence that
some part of the public utility’s overall systems, processes or programs failed to proactively
manage wildfire risk. The commission may not use a simple error by a public utility em-
ployee or contractor as a basis for a finding of imprudence unless the error is a result of an
imprudent system, process or program.
(c) A public utility, by showing that the public utility’s actions and conduct were none-
theless prudent, may rebut a showing by a party that some part of the public utility’s overall
systems, processes or programs failed to proactively manage wildfire risk.
(4) If the commission determines that a public utility’s actions and conduct that caused
the catastrophic wildfire were imprudent, the commission may order the utility to reimburse
the fund, in whole or in part, for claims paid from the fund as a result of the catastrophic
wildfire. In determining the amount of reimbursement, the commission shall consider:
(a) The scope, magnitude and contribution of the actions and conduct of the public utility
that were deemed imprudent as compared to the severity, scope and magnitude of the
wildfire;
(b) Any factors within and beyond the public utility’s control that may have led to or
exacerbated the costs from the catastrophic wildfire, including but not limited to humidity,
temperature, winds, fuel and merged wildfires with independent ignitions;
(c) Any third-party actions that affected the spread of the wildfire; and
(d) The timeliness and efficacy of fire suppression activities by local, state or federal
agencies charged with responsibility for conducting fire suppression activities.
(5) The public utility may not recover in rates the amount of a reimbursement if the
commission orders a public utility to reimburse the fund. The commission may not order the
public utility to reimburse the fund in an amount that exceeds the lesser of:
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(a) The reimbursement amounts that the commission determines are due to the public
utility’s imprudence; or
(b) Twenty percent of the public utility’s transmission and distribution equity rate base
situs to Oregon minus any amounts the public utility has already reimbursed the fund during
a period of three consecutive calendar years ending on December 31 of the year in which the
calculation is being performed.
(6) A commission determination of prudence or imprudence under this section relates
only to the obligation of a public utility to reimburse the fund and is inadmissible for any
purpose, in whole or in part, in any other proceeding or criminal or civil action.
SECTION 9. Fund depletion.(1) During any period in which the Catastrophic Wildfire
Fund is available for claims arising out of a catastrophic wildfire and in which an independ-
ent administrator appointed under section 6 of this 2025 Act determines that the sum of
payments from moneys in the fund that may be required to be made to eligible claimants is
expected to exceed 75 percent of the total available financial capacity in the fund, the inde-
pendent administrator shall notify the Public Utility Commission that the fund is likely to
bedepleted.
(2) If the independent administrator is unable to secure additional financial capacity for
the fund, including credible pledges for future funding, sufficient to reverse its assessment
under subsection (1) of this section within 45 days after the date on which the determination
is made, the independent administrator shall declare the existence of a depletion event.
(3) If the independent administrator declares the existence of a depletion event, the in-
dependent administrator shall:
(a) Determine the percentage of total eligible payments the fund can make to all eligible
claimants; and
(b) Offer claimants a depletion payment from the fund calculated by multiplying the
amount of compensation that would otherwise have been offered under section 7 of this 2025
Act without a funding shortfall by the percentage calculated in paragraph (a) of this sub-
section.
(4) All claimants that are offered the depletion payment may choose to accept or decline
the depletion payment. A claimant that declines to accept the depletion payment is:
(a) Except as provided in subsection (6)(c) of this section, ineligible for any payments by
the fund with respect to the catastrophic wildfire for which the claim was made; and
(b) Not bound by the limitation on claims provided in section 7 of this 2025 Act with re-
spect to the catastrophic wildfire for which the claim was made.
(5) The limitation period for any cause of action arising out of the catastrophic wildfire
that could be asserted by the claimant that declines to accept the depletion payment shall
be tolled for the period beginning on the date on which the catastrophic wildfire is ignited
and ending on the date on which the independent administrator offers claimants the de-
pletionpayment.
(6) If, at any point within three years from the date of the declaration of a depletion
event under this section, the fund receives additional funding or pledges for additional fund-
ing such that the conditions for the depletion event are no longer present, the independent
administrator or the commission shall allow:
(a) A claimant who has not accepted or declined an offer of a depletion payment to seek
the full amount the claimant would otherwise be entitled to under section 7 of this 2025 Act;
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(b) A claimant who has accepted the depletion payment to obtain a true-up payment,
totaling the difference between the depletion payment the claimant received from the fund
and the full amount the claimant would otherwise have been entitled to under section 7 of
this 2025 Act; and
(c) A claimant who has declined the depletion payment to resubmit a claim for the full
amount the claimant would otherwise receive under section 7 of this 2025 Act and be bound
by the limitations under section 7 of this 2025 Act.
SECTION 10. ORS 279A.025 is amended to read:
279A.025. (1) Except as provided in subsections (2) to (4) of this section, the Public Contracting
Code applies to all public contracting.
(2) The Public Contracting Code does not apply to:
(a) Contracts between a contracting agency and:
(A) Another contracting agency;
(B) The Oregon Health and Science University;
(C) A public university listed in ORS 352.002;
(D) The Oregon State Bar;
(E) A governmental body of another state;
(F) The federal government;
(G) An American Indian tribe or an agency of an American Indian tribe;
(H) A nation, or a governmental body in a nation, other than the United States; or
(I) An intergovernmental entity formed between or among:
(i) Governmental bodies of this or another state;
(ii) The federal government;
(iii) An American Indian tribe or an agency of an American Indian tribe;
(iv) A nation other than the United States; or
(v) A governmental body in a nation other than the United States;
(b) Agreements authorized by ORS chapter 190 or by a statute, charter provision, ordinance or
other authority for establishing agreements between or among governmental bodies or agencies or
tribal governing bodies or agencies;
(c) Insurance and service contracts as provided for under ORS 414.115, 414.125, 414.135 and
414.145 for purposes of source selection;
(d) Grants;
(e) Contracts for professional or expert witnesses or consultants to provide services or testimony
relating to existing or potential litigation or legal matters in which a public body is or may become
interested;
(f) Acquisitions or disposals of real property or interest in real property;
(g) Sole-source expenditures when rates are set by law or ordinance for purposes of source se-
lection;
(h) Contracts for the procurement or distribution of textbooks;
(i) Procurements by a contracting agency from an Oregon Corrections Enterprises program;
(j) The procurement, transportation, sale or distribution of distilled liquor, as defined in ORS
471.001, or the appointment of agents under ORS 471.230 or 471.750 by the Oregon Liquor and
CannabisCommission;
(k) Contracts entered into under ORS chapter 180 between the Attorney General and private
counsel or special legal assistants;
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(L) Contracts for the sale of timber from lands that the State Board of Forestry, the State
Forestry Department, the State Parks and Recreation Commission or the State Parks and Recreation
Department owns or manages;
(m) Contracts for activities necessary or convenient for the sale of timber under paragraph (L)
of this subsection, either separately from or in conjunction with contracts for the sale of timber,
including but not limited to activities such as timber harvesting and sorting, transporting, gravel
pit development or operation, and road construction, maintenance or improvement;
(n) Contracts for forest protection or forest related activities, as described in ORS 477.406, by
the State Forester or the State Board of Forestry;
(o) Contracts that the Housing and Community Services Department enters into in exercising
the department’s duties prescribed in ORS chapters 456 and 458, or procurements described in ORS
456.625 (19);
(p) Contracts that the State Treasurer enters into in exercising the powers of that office pre-
scribed in ORS 178.010 to 178.090 and 276A.242 and ORS chapters 286A, 287A, 289, 293, 294 and 295,
including but not limited to investment contracts and agreements, banking services, clearing house
services and collateralization agreements, bond documents, certificates of participation and other
debt repayment agreements, and any associated contracts, agreements and documents, regardless of
whether the obligations that the contracts, agreements or documents establish are general, special
or limited, except that the State Treasurer’s public contracting for goods and services is subject to
ORS chapter 279B;
(q) Contracts, agreements or other documents entered into, issued or established in connection
with:
(A) The issuance of obligations, as defined in ORS 286A.100 and 287A.310, of a public body;
(B) Program loans and similar extensions or advances of funds, aid or assistance that a public
body makes to a public or private body for the purpose of carrying out, promoting or sustaining
activities or programs authorized by law; or
(C) The investment of funds by a public body as authorized by law, and other financial trans-
actions of a public body that by their character cannot practically be established under the com-
petitive contractor selection procedures of ORS 279B.050 to 279B.085;
(r) Contracts for employee benefit plans as provided in ORS 243.105 (1), 243.125 (4), 243.221,
243.275, 243.291, 243.303 and 243.565;
(s) Contracts for employee benefit plans as provided in ORS 243.860 to 243.886; [or]
(t) Contracts entered into by the Public Utility Commission for an independent adminis-
trator under section 6 of this 2025 Act; or
[(t)](u) Any other public contracting of a public body specifically exempted from the code by
another provision of law.
(3) The Public Contracting Code does not apply to the contracting activities of:
(a) The Oregon State Lottery Commission;
(b) The legislative department;
(c) The judicial department;
(d) Semi-independent state agencies listed in ORS 182.454, except as provided in ORS 279.835 to
279.855 and 279A.250 to 279A.290;
(e) Oregon Corrections Enterprises;
(f) The Oregon Film and Video Office, except as provided in ORS 279A.100 and 279A.250 to
279A.290;
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(g) The Travel Information Council, except as provided in ORS 279A.250 to 279A.290;
(h) The Oregon 529 Savings Network and the Oregon 529 Savings Board;
(i) The Oregon Innovation Council;
(j) The Oregon Utility Notification Center; or
(k) Any other public body specifically exempted from the code by another provision of law.
(4) ORS 279A.200 to 279A.225 and 279B.050 to 279B.085 do not apply to contracts made with
qualified nonprofit agencies providing employment opportunities for individuals with disabilities un-
der ORS 279.835 to 279.855.
SECTION 11. ORS 293.701 is amended to read:
293.701. As used in ORS 293.701 to 293.857, unless the context requires otherwise:
(1) “Council” means the Oregon Investment Council.
(2) “Investment funds” means:
(a) Public Employees Retirement Fund referred to in ORS 238.660;
(b) Industrial Accident Fund referred to in ORS 656.632;
(c) Consumer and Business Services Fund referred to in ORS 705.145;
(d) Employment Department Special Administrative Fund referred to in ORS 657.822;
(e) Insurance Fund referred to in ORS 278.425;
(f) Funds under the control and administration of the Department of State Lands;
(g) Oregon Student Assistance Fund referred to in ORS 348.570;
(h) Moneys made available to the Commission for the Blind under ORS 346.270 and 346.569 or
rules adopted thereunder;
(i) Forest Development Revenue Bond Fund referred to in ORS 530.147 and State Forestry
General Obligation Bond Fund referred to in ORS 530.280;
(j) Oregon War Veterans’ Fund referred to in ORS 407.495;
(k) Oregon War Veterans’ Bond Sinking Account referred to in ORS 407.515;
(L) World War II Veterans’ Compensation Fund;
(m) World War II Veterans’ Bond Sinking Fund;
(n) Funds in the hands of the State Treasurer that are not required to meet current demands
and that are invested in the Oregon Short Term Fund established under ORS 293.728 or in another
commingled investment vehicle;
(o) State funds that are not subject to the control and administration of officers or bodies spe-
cifically designated by law;
(p) Funds derived from the sale of state bonds;
(q) Social Security Revolving Account referred to in ORS 237.490;
(r) Public University Fund established by ORS 352.450;
(s) Local Government Employer Benefit Trust Fund referred to in ORS 657.513;
(t) Education Stability Fund established by ORS 348.696;
(u) Deferred Compensation Fund established under ORS 243.411;
(v) Trust for Cultural Development Account established under ORS 359.405;
(w) The State Library Donation Fund and the Talking Book and Braille Library Endowment
Fund subaccount established under ORS 357.195;
(x) Funds in the Unclaimed Property and Estates Fund; [and]
(y) Funds in the Common School Fund or any subaccount of the fund, that are available for in-
vestment; and
(z) Funds in the Catastrophic Wildfire Fund created under section 3 of this 2025 Act .
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(3) “Investment officer” means the State Treasurer in the capacity as investment officer for the
council.
SECTION 12. ORS 757.457 is amended to read:
757.457. As used in this section and ORS 757.459, 757.461 and 757.463:
(1) “Assignee” means a person, and any subsequent assignee, to which a public utility assigns,
sells or transfers all or part of the public utility’s interest in or right to rate recovery assets, except
assecurity.
(2) “Bond” includes bonds, notes, certificates of beneficial interests in a trust or other evidence
of indebtedness.
(3) “Bondholder” means a holder or owner of a rate recovery bond.
(4) “Finance subsidiary” means an assignee at the time rate recovery bonds are issued:
(a)(A) That is beneficially owned, directly or indirectly, by a public utility; or
(B) In the case of a trust, for which a public utility or subsidiary of the public utility is the
grantor;or
(b) That is unaffiliated with a public utility and acquires bondable rate recovery assets from a
public utility in a transaction or under an agreement that is approved by the Public Utility Com-
mission.
(5) “Financing costs” includes the following costs related to rate recovery bonds, whether in-
curred and paid upon issuance or over the life of rate recovery bonds:
(a) The costs of issuing, serving, managing, repaying or refinancing rate recovery bonds, in-
cluding any fees, expenses or charges incurred and the costs of any activities performed in con-
nection with the rate recovery bonds, including:
(A) Information technology programming;
(B) Obtaining a financing order;
(C) Serving, accounting or auditing;
(D) Services related to trustees;
(E) Legal services;
(F) Consulting;
(G) Services related to financial and structuring advisors;
(H) Administration;
(I) Placement and underwriting;
(J) Services related to independent directors and managers;
(K) Services related to rating agencies;
(L) Stock exchange listing and compliance;
(M) Securities registration and filing; and
(N) Services necessary to ensure a timely payment of rate recovery bonds or other amounts or
charges payable in connection with rate recovery bonds;
(b) Principal, interest and acquisition, defeasance and redemption premiums payable on rate re-
covery bonds;
(c) Payments required under an ancillary agreement and any amounts required to fund or re-
plenish a reserve or account established under the terms of an indenture, ancillary agreement or
financing document related to rate recovery bonds;
(d) Applicable federal, state and local taxes, franchise fees, license fees, gross receipts or other
taxes or charges, whether paid, payable or accrued; and
(e) The Public Utility Commission’s costs in performing the commission’s duties related to rate
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recovery bonds that are recoverable by the commission under ORS 756.310.
(6) “Financing order” means an order issued by the Public Utility Commission that authorizes
one or more the following:
(a) The recovery of rate recovery expenditures and financing costs;
(b) The creation of rate recovery assets;
(c) The issuance of rate recovery bonds;
(d) The imposition, collection and periodic adjustment of rate recovery charges; or
(e) The sale, assignment or transfer of rate recovery assets to an assignee.
(7) “Financing party” includes:
(a) Bondholders, trustees, agents and secured parties related to rate recovery bonds;
(b) A person acting for the benefit of bondholders, trustees, agents or secured parties; and
(c) A party to rate recovery bond documents or an ancillary agreement.
(8) “Public utility customer” means:
(a) For an electric utility, a retail electricity consumer, as defined in ORS 757.600.
(b) For a natural gas utility, the end use consumer served by the natural gas utility, including
those served by the natural gas utility under ORS 757.516, regardless of whether the end use con-
sumer purchases natural gas from the natural gas utility.
(9) “Rate recovery asset” means a right to recover from customers rate recovery expenditures
and associated costs and expenses approved in a financing order, including the right to:
(a) Impose, charge, bill, collect, receive, hold and apply rate recovery charges authorized under
a financing order or obtain, to the extent authorized, periodic adjustments of rate recovery charges;
and
(b) All claims, accounts, revenues, payments, collections, moneys or proceeds arising from the
rights and interest specified in a financing order, regardless of whether the claims, accounts, re-
venues, payments, collections, moneys or proceeds arising from the rights and interest specified in
the financing order are commingled with other claims, accounts, revenues, payments, collections,
moneys or proceeds.
(10) “Rate recovery charge” means charges to public utility customers authorized by the Public
Utility Commission to recover rate recovery expenditures and financing costs and to be used to pay,
repay or refinance rate recovery bonds.
(11) “Rate recovery expenditures” means costs and expenses incurred or to be incurred through
the date of issuance of a financing order by a public utility associated with:
(a) An event that is the subject of a federal or state declaration of a state of emergency, such
as severe weather, catastrophic wildfire, pandemic or other event that causes or threatens to cause
widespread loss of life, injury to person or property, human suffering or financial loss, except those
costs and expenses that are or are associated with criminal or civil fines or penalties or judgments
from a civil action based on negligence related to the event.
(b) An energy conservation program that provides loans and cash payments to public utility
customers for the installation of energy conservation measures funded by the public utility includ-
ing, but not limited to, the costs or expenditures for specific acquisition program development, pro-
motion and labor costs and associated general supervision, rents, leases and overheads.
(c) Contributions to the Catastrophic Wildfire Fund made under section 4 of this 2025
Act.
(12) “Secured party” means a financing party that has been granted a security interest in rate
recovery assets.
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SECTION 13. Application.Sections 2 to 9 of this 2025 Act and the amendments to ORS
279A.025, 293.701 and 757.457 by sections 10 to 12 of this 2025 Act apply to wildfires that ignite
on or after the effective date of this 2025 Act.
SECTION 14.Captions.The section captions used in this 2025 Act are provided only for
the convenience of the reader and do not become part of the statutory law of this state or
express any legislative intent in the enactment of this 2025 Act.
SECTION 15.Effective date.This 2025 Act being necessary for the immediate preserva-
tion of the public peace, health and safety, an emergency is declared to exist, and this 2025
Act takes effect on its passage.
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