Texas 2025 - 89th Regular

Texas Senate Bill SB2025 Compare Versions

Only one version of the bill is available at this time.

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