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GM 1361

Informing the Legislature that on July 1, 2025, the Governor signed the following bill into law: SB897 SD3 HD2 CD1 (ACT 258).

2025 Regular Session

Bill GM 1361 allows Hawaii's electric cooperatives to recover wildfire mitigation costs and sets liability limits, impacting rates and enhancing energy infrastructure resilience.

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Bill Summary · GM 1361

Summary of Bill GM 1361

Bill Number: GM 1361
Title: Informing the Legislature that on July 1, 2025, the Governor signed the following bill into law: SB897 SD3 HD2 CD1 (ACT 258)
Status: Received
Introduced: July 01, 2025
Classification: Proclamation
Subject: Act 258

Purpose and Intent

Bill GM 1361 serves as a formal notification to the legislature that the Governor of Hawaii, Josh Green, M.D., signed into law Senate Bill 897 (SB897) on July 1, 2025. This bill, now known as Act 258, focuses on enhancing the regulatory framework for electric cooperatives in relation to wildfire mitigation and liability management.

Key Provisions

1. Cost Recovery for Wildfire Mitigation

  • Section 269-A: This section allows electric cooperatives to recover costs associated with wildfire mitigation, repair, and restoration through an automatic rate adjustment clause or other tariff recovery mechanisms approved by the Public Utilities Commission (PUC).

2. Limitation on Liability

  • Section 269-B: The PUC is tasked with establishing rules to determine the maximum amount each electric utility may pay to resolve claims arising from catastrophic wildfires. Key aspects include:
    • The rules will define the maximum payable amounts and the time periods applicable.
    • Considerations for establishing these limits will include impacts on utility credit ratings, customer electricity rates, and the insurance market.
    • The PUC will also ensure that the rules align with public interest and include reporting requirements for compliance.

3. Rule Adoption Process

  • The rules established by the PUC will require approval from the Governor. If the Governor does not approve the rules, they may be returned with reasons for disapproval, and the PUC can initiate a new rule-making process.

4. Judicial Review

  • The Supreme Court of Hawaii will have original jurisdiction over any petitions challenging the validity of the rules adopted under this section, ensuring a streamlined judicial review process.

Who Would Be Affected

  • Electric Cooperatives: The bill directly impacts electric cooperatives in Hawaii by providing them a mechanism to recover costs related to wildfire management.
  • Consumers: Customers of electric utilities may experience changes in electricity rates as a result of the cost recovery mechanisms and liability limits.
  • Regulatory Bodies: The PUC will play a crucial role in implementing and overseeing the new rules and cost recovery processes.

Procedural Aspects

  • The bill was introduced and signed into law on the same day, July 1, 2025. The provisions outlined in Act 258 will require the PUC to act promptly in adopting necessary rules to ensure compliance and effective implementation.

Conclusion

Bill GM 1361 serves as a critical legislative step in addressing the challenges posed by wildfires in Hawaii. By enabling electric cooperatives to recover costs and establishing clear liability limits, Act 258 aims to enhance the resilience of the state's energy infrastructure while protecting consumer interests.

Compiled from official sources — confirm details with the bill’s official record.

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