Texas 2025 - 89th Regular

Texas House Bill HB145 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	89R20709 SCR-F
2	1		By: King H.B. No. 145
3		-	~~Substitute the following for H.B. No. 145:~~
4		-	~~By: Darby C.S.H.B. No. 145~~
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5	4
6	5
7	6		A BILL TO BE ENTITLED
8	7		AN ACT
9	8		relating to risk mitigation planning and associated liability for
10		-	providers of electric service; providing an administrative
11		-	penalty.
	9	+	providers of electric service.
12	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	11		SECTION 1. Section 36.064, Utilities Code, is amended by
14		-	amending Subsections (a) and (b) and adding Subsections (c-1) ~~and~~
15		-	(h) to read as follows:
	12	+	amending Subsections (a) and (b) and by adding Subsections (c-1)
	13	+	and (h) to read as follows:
16	14		(a) An electric utility may self-insure all or part of:
17	15		(1) the utility's potential liability or catastrophic
18	16		property loss, including windstorm, fire, wildfire, and explosion
19	17		losses, that could not have been reasonably anticipated and
20	18		included under operating and maintenance expenses; and
21	19		(2) potential damages the utility may be liable for
22		-	resulting from personal injury or property ~~damage~~ caused by a
	20	+	resulting from personal injury or property damages caused by a
23	21		wildfire.
24	22		(b) The commission shall approve a self-insurance plan
25	23		under this section if the commission finds [that]:
26	24		(1) the coverage is in the public interest;
27	25		(2) one of the following:
28	26		(A) the plan, considering all costs, is a lower
29	27		cost alternative to purchasing commercial insurance;
30	28		(B) commercial insurance alone is insufficient
31	29		to cover potential liability, damages, or catastrophic property
32	30		loss; or
33	31		(C) the electric utility cannot obtain
34	32		commercial insurance for a reasonable premium; and
35	33		(3) ratepayers will receive the benefits of the
36	34		savings.
37	35		(c-1) In approving a self-insurance plan under this
38	36		section, the commission shall prioritize the consideration of the
39	37		presence and potential extent of wildfire losses, including:
40	38		(1) historical data;
41	39		(2) actuarial studies and analyses; and
42	40		(3) the possibility of the electric utility's exposure
43	41		to losses from multiple types of disasters occurring within the
44	42		utility's service territory.
45		-	(h) Subsection (a)(2) does not authorize an electric
	43	+	(h) Subsection (a)(2) does not authorize the electric
46	44		utility to self-insure under this section for damages from a
47	45		wildfire event the utility caused intentionally, recklessly, or
48	46		with gross negligence.
49	47		SECTION 2. Subchapter D, Chapter 38, Utilities Code, is
50		-	amended by adding ~~Sections~~ 38.080 ~~and 38.081~~ to read as follows:
51		-	Sec. 38.080. WILDFIRE MITIGATION PLAN~~. (a) In this~~
52		-	section:
	48	+	amended by adding Section 38.080 to read as follows:
	49	+	Sec. 38.080. WILDFIRE MITIGATION PLAN; AFFIRMATIVE
	50	+	DEFENSE. (a) In this section:
53	51		(1) "Division" means the Texas Division of Emergency
54	52		Management.
55	53		(2) "First responder" has the meaning assigned by
56	54		Section 418.251, Government Code.
57	55		(3) "Plan" means a wildfire mitigation plan described
58	56		by Subsection (b).
59	57		(4) "Wildfire risk area" means an area determined by
60		-	the division or an electric utility, electric cooperative, or
61		-	municipally owned utility to be at an elevated risk for wildfire.
	58	+	the division or an affected electric utility, electric cooperative,
	59	+	or municipally owned utility, to be at an elevated risk for
	60	+	wildfire.
62	61		(b) An electric utility or an electric cooperative that owns
63	62		a transmission or distribution facility in a wildfire risk area
64	63		shall file, and a municipally owned utility or an electric utility
65		-	that is a river authority may file, with the commission a ~~wildfire~~
66		-	mitigation plan that includes the following:
	64	+	that is also a river authority may file, with the commission a
	65	+	wildfire mitigation plan that includes the following:
67	66		(1) a description of each area to which the utility or
68	67		cooperative provides transmission or distribution service that is
69	68		in a wildfire risk area and the utility's or cooperative's process
70	69		for periodically inspecting the utility's or cooperative's
71	70		transmission and distribution facilities in those areas;
72	71		(2) a detailed plan for vegetation management in the
73	72		wildfire risk area;
74	73		(3) a detailed operations plan for reducing the
75	74		likelihood of wildfire ignition from the utility's or cooperative's
76	75		facilities and for responding to a wildfire;
77	76		(4) a description of the procedures the utility or
78	77		cooperative intends to use to restore the utility's or
79	78		cooperative's system during and after a wildfire event, including
80	79		contact information for the utility or cooperative that may be used
81	80		for coordination with the division and first responders;
82	81		(5) the utility's or cooperative's community outreach
83	82		and public awareness plan regarding wildfire risks and actual
84	83		wildfires affecting the utility's or cooperative's service
85	84		territory or system, including a specific communications plan for
86		-	responding to a wildfire event;
87		-	(6) any infrastructure report, maintenance report, or
88		-	distribution pole maintenance plan required by the commission;
89		-	(7) an analysis of the wildfire mitigation plan
90		-	prepared by an independent expert in fire risk mitigation; and
91		-	(8) any other information the commission may require.
	85	+	responding to a wildfire event; and
	86	+	(6) any other information the commission may require.
92	87		(c) The commission shall issue an order not later than the
93		-	~~180th~~ day after a plan is filed with the commission that:
	88	+	60th day after a plan is filed with the commission that:
94	89		(1) approves the plan if the commission finds that
95	90		approval is in the public interest; or
96	91		(2) modifies or rejects the plan as necessary to be
97	92		consistent with the public interest.
98		-	(d) An electric utility or electric cooperative that does
99		-	not implement a plan approved under this section is subject to an
100		-	administrative penalty as provided by Chapter 15. This subsection
101		-	does not apply to an electric utility that is a river authority.
102		-	Sec. 38.081. LIABILITY FOR DAMAGES CAUSED BY WILDFIRE. (a)
103		-	An electric utility, municipally owned utility, or electric
104		-	cooperative that submits and obtains commission approval for a
105		-	wildfire mitigation plan under Section 38.080 is not liable for
106		-	damages resulting from a wildfire ignited or propagated by the
107		-	utility's or cooperative's facility unless a trier of fact in a
108		-	civil action finds that the utility or cooperative intentionally,
109		-	recklessly, or negligently caused the damage.
110		-	(b) It is an affirmative defense to liability in an action
111		-	brought against an electric utility, municipally owned utility, or
112		-	electric cooperative for damages resulting from a wildfire ignited
113		-	or propagated by the utility's or cooperative's facility that the
114		-	utility or cooperative was in compliance with relevant measures of
115		-	the utility's or cooperative's wildfire mitigation plan approved
116		-	under Section 38.080 with respect to the specific equipment alleged
117		-	to have ignited or propagated the wildfire that caused the damages.
118		-	(c) Notwithstanding Subsection (a) or (b), in an action
119		-	brought against an electric utility, municipally owned utility, or
120		-	electric cooperative for damages resulting from a wildfire ignited
121		-	or propagated by the utility's or cooperative's facility, a trier of
122		-	fact may consider relevant factors contributing to the wildfire
123		-	ignition or propagation to the extent the utility's or
124		-	cooperative's wildfire mitigation plan approved by the commission
125		-	under Section 38.080 departed from nationally accepted safety
126		-	standards, including the National Electrical Safety Code as
127		-	published by the Institute of Electrical and Electronics Engineers,
128		-	in effect at the time the plan was approved.
129		-	(d) Subsections (a) and (b) do not apply to an electric
130		-	utility, municipally owned utility, or electric cooperative that:
131		-	(1) does not file a wildfire mitigation plan under
132		-	Section 38.080; or
133		-	(2) files a plan that is rejected by the commission.
134		-	SECTION 3. (a) The Public Utility Commission of Texas
135		-	shall adopt any rules necessary to implement Section 36.064,
	93	+	(d) Subject to Subsection (e), an electric utility,
	94	+	municipally owned utility, or electric cooperative for which the
	95	+	commission has approved a plan is not liable for damages resulting
	96	+	from a wildfire ignited or propagated by the utility's or
	97	+	cooperative's facilities or actions unless a court of competent
	98	+	jurisdiction finds that the utility or cooperative intentionally,
	99	+	recklessly, or with negligence caused the damage.
	100	+	(e) It is an affirmative defense to liability in a civil
	101	+	action brought against an electric utility, municipally owned
	102	+	utility, or electric cooperative for personal injury or property
	103	+	damages caused by a wildfire ignited or propagated by the utility's
	104	+	or cooperative's facilities if a court of competent jurisdiction
	105	+	finds that the utility or cooperative was in material compliance
	106	+	with relevant measures of its approved plan under this section.
	107	+	SECTION 3. (a) The Public Utility Commission of Texas shall
	108	+	adopt any rules as necessary to implement Sections 36.064,
136	109		Utilities Code, as amended by this Act, and Section 38.080,
137	110		Utilities Code, as added by this Act, not later than the 180th day
138	111		after the effective date of this Act.
139		-	(b) An electric utility, municipally owned utility, or
	112	+	(b) An electric utility, municipally owned utility or
140	113		electric cooperative may file a wildfire mitigation plan, as
141		-	authorized by Section 38.080, Utilities Code, as added by this Act,
	114	+	authorized by Section 38.080, Utilities Code, as added by this Act
142	115		at any time after the effective date of this Act, regardless of
143	116		whether the Public Utility Commission of Texas has adopted any
144		-	rules described by Subsection (a) of this section before the date of
145		-	the filing.
146		-	SECTION 4. Section 38.081, Utilities Code, as added by this
	117	+	rules described by Subsection (a) before the date of the filing;
	118	+	provided, however, that such a plan is still subject to review,
	119	+	modification, approval, or rejection under Section 38.080(c),
	120	+	Utilities Code, as added by this Act.
	121	+	SECTION 4. Section 38.080, Utilities Code, as added by this
147	122		Act, applies only to a cause of action that accrues on or after the
148	123		effective date of this Act.
149	124		SECTION 5. This Act takes effect immediately if it receives
150	125		a vote of two-thirds of all the members elected to each house, as
151	126		provided by Section 39, Article III, Texas Constitution. If this
152	127		Act does not receive the vote necessary for immediate effect, this
153	128		Act takes effect September 1, 2025.