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Committee hears wide stakeholder backing for wildfire-mitigation plan and limited-liability framework in House Bill 192

January 03, 2025 | Minerals, Business & Economic Development Committee, Senate, Committees, Legislative, Wyoming


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Committee hears wide stakeholder backing for wildfire-mitigation plan and limited-liability framework in House Bill 192
Representative J.T. Larson, sponsor of House Bill 192, introduced the proposal to the Minerals, Business & Economic Development Committee in Cheyenne, describing it as a framework that would require public utilities to file wildfire mitigation plans with the Wyoming Public Service Commission (PSC) and, in exchange, provide limited liability protection when utilities follow approved plans.

"Basically, what the bill does is requires public utilities to file wildfire mitigation plans with the public service commission; in exchange there’s some liability protection provided by the state as long as they follow their plans," Representative J.T. Larson said.

Committee members heard detailed, technical testimony from a broad group of stakeholders who said the bill aims to reduce wildfire risk through planning while protecting utilities and their customers from catastrophic litigation when utilities have taken approved, reasonable steps to mitigate wildfire.

Sean Taylor, executive director of the Wyoming Rural Electric Association, and Mandy Goode, an attorney representing the association, said the bill reflects months of stakeholder work and would help utilities keep operating and obtain insurance. "We brought this bill because unfortunately we have a common saying, within the co-ops that we're only one wildfire away from bankruptcy," Taylor said. Goode added that the bill would create a public process for evaluating and approving plans and stressed the importance of prevention and of keeping insurance markets accessible.

Key elements of the bill described in committee testimony and the draft include:
- Required contents for an approved wildfire mitigation plan: procedures for de-energizing and re-energizing lines, vegetation-management standards, inspection protocols, descriptions of upgrades or replacements, coordination with neighboring utilities, community notice and outreach, resilience considerations for critical facilities and plans for restoration after de-energization.
- Plan governance and timing: utilities would submit a plan to the Public Service Commission for approval, submit updated plans every five years and file annual reports so the PSC and stakeholders could monitor and adjust strategies.
- Liability framework: an approved wildfire mitigation plan would create a rebuttable presumption that the utility’s plan is reasonable and prudent; plaintiffs could still bring civil actions if they prove the utility failed to substantially comply with its plan or if malice or criminal intent is alleged. The draft establishes a four-year statute of limitations for these suits and allows recovery of economic losses; recovery of non-economic losses would be limited to cases involving bodily injury or death (with an amendment clarifying that representatives of deceased people may bring such claims).

Supporters in the room and on the record included electric cooperatives and wholesale generation-and-transmission providers, industrial energy consumers, the Wyoming State Forester, local fire chiefs, the Wyoming Fire Chiefs Association, and associations representing rural firefighters and consumers. Thor Nelson, an attorney for the Wyoming Industrial Energy Consumers, testified the bill “strikes an excellent balance” between prevention and limiting catastrophic liability that otherwise could result in bankruptcies or very large rate increases for customers.

Insurance concerns were also raised. Committee members heard that wildfire risk has tightened insurance markets and raised prices; stakeholders said the bill’s liability framework could help utilities secure coverage. The committee was told that modest, upfront mitigation costs and limited rate adjustments are likely cheaper than the costs that large wildfire-related litigation and payouts could impose on customers and utilities.

State Forestry and local fire authorities supported an amendment requiring input from state forestry, rural fire districts and other appropriate federal, state and local fire entities. Kelly Norris, Wyoming State Forester, said that cooperating with utilities on mitigation planning is important because counties already have community wildfire protection plans and the proposed amendment would bring additional fire expertise into utility planning.

Several committee members asked technical questions about enforcement and legal standards. Attorneys for stakeholders explained that "substantial compliance" is fact-specific and would be assessed in litigation based on the evidence and standards of proof; the PSC’s annual reporting and approval process is intended to create an administrative record that would inform but not fully determine civil suits.

No final committee vote was taken on House Bill 192 during the meeting. The sponsor and stakeholders asked for more time for additional testimony and the committee agreed to carry the bill forward to the committee’s next hearing so witnesses who were not present could be heard and online witnesses could testify. The meeting record shows broad stakeholder engagement but leaves open several implementation details, including whether and when the PSC will promulgate rules and the precise measures utilities will include under the required plan elements.

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