HawaiiSB 8972025–2026 Regular Session (Year 1)SenateWALLET

RELATING TO ENERGY.

Sponsored By: Dru Mamo Kanuha (Democratic)

Signed by Governor

Summary

Allows electric cooperatives to recover wildfire mitigation, repair, and restoration costs through an automatic rate adjustment or other mechanism. Requires the Public Utilities Commission to initiate a proceeding for the adoption of rules, subject to the Governor's approval, to determine an aggregate limit for liability for economic damages from a covered catastrophic wildfire. Authorizes securitization of certain costs for electric utilities. Requires the Public Utilities Commission to conduct studies on whether the framework established in the measure adequately balances electric utility interests and compensation owed to catastrophic wildfire victims and on the establishment and implementation of a wildfire recovery fund and report its findings and recommendations to the Legislature. Appropriates moneys. (CD1)

DCCAPUCEnergyElectric UtilitiesAggregate Liability LimitSecuritizationElectric Utility Infrastructure ResilienceStudyReportAppropriationEEP, CPC/JHA, FIN

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 2 costs, 1 mixed.

Co-op customers may pay wildfire costs

Electric cooperatives may recover commission-approved wildfire mitigation, repair, and restoration costs through an automatic rate adjustment or another approved tariff. Customers in the cooperative’s service area may pay those costs through their electricity rates. The law does not state the amount or timing of a rate change.

Wildfire victims face claim limits

For qualifying property damage from a covered wildfire, an electric utility’s total liability is limited by a maximum set by the Public Utilities Commission. The fire must damage more than 500 structures, or more than 50 when an electric cooperative is involved. The utility must have an approved wildfire plan, follow its timeline, and meet commission rules. Claims must be filed where the fire happened; courts approve settlements and judgments, and capped liability cannot be shifted to another party. The limit covers economic property damage, not bodily or emotional harm.

Customers pay for resilience bonds

The law lets utilities issue bonds for approved resilience projects and charge current and future customers in the service area. The charge is separate from regular rates and may be based on electricity use, a flat amount, or customer revenues by class. It can include tax amounts and be adjusted at least once a year; charges continue until the bonds and financing costs are paid. The first $500 million in qualifying investments must use this law, and financing orders are capped at $500 million per utility corporate family. Scheduled final payments cannot be more than 30 years away. If enforcement leaves money after bond and financing costs are paid, the utility must return the surplus to customers. The State and local governments do not guarantee these bonds with tax revenue.

Hawaii funds utility regulation work

Hawaii provides $500,000, or as much as needed, from general revenues for consultant contracts in fiscal year 2025–2026. The Public Utilities Commission must use the money for purposes of the law. This is not a direct household payment.

Utility leaders face wildfire pay limits

A utility with a financing order cannot increase executive pay unless the commission has approved its wildfire-plan compliance reports for five straight years. The commission may consider an alternative performance incentive. This rule does not set household electricity rates.

Sponsors & Cosponsors

Sponsor

  • Dru Mamo Kanuha

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 239 • No: 27

House vote • 4/30/2025

House Floor Vote

Yes: 40 • No: 10

Senate vote • 4/30/2025

Senate Floor Vote

Yes: 20 • No: 5

House vote • 4/25/2025

The Conference Committee recommends that the measure be Passed, with Amendments....

Yes: 3 • No: 1

Senate vote • 4/25/2025

The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS....

Yes: 4 • No: 0

House vote • 4/3/2025

House Floor Vote

Yes: 44 • No: 5

House vote • 3/31/2025

The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes ...

Yes: 14 • No: 0

House vote • 3/18/2025

The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The ...

Yes: 8 • No: 0

House vote • 3/18/2025

The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The ...

Yes: 9 • No: 1

House vote • 3/14/2025

Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC...

Yes: 44 • No: 3

House vote • 3/13/2025

The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. The ...

Yes: 4 • No: 0

Senate vote • 3/4/2025

Senate Floor Vote

Yes: 23 • No: 1

Senate vote • 2/27/2025

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 13 • No: 0

Senate vote • 2/11/2025

The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 5 • No: 0

Senate vote • 2/11/2025

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 3 • No: 1

Senate vote • 2/4/2025

The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS...

Yes: 5 • No: 0

Actions Timeline

  1. Act 258, 07/01/2025 (Gov. Msg. No. 1361).

    7/1/2025Senate
  2. Act 258, on 07/01/2025 (Gov. Msg. No. 1361).

    7/1/2025House
  3. Received notice of passage on Final Reading in House (Hse. Com. No. 821).

    5/2/2025Senate
  4. Enrolled to Governor.

    5/2/2025Senate
  5. Received notice of Final Reading (Sen. Com. No. 888).

    5/1/2025House
  6. Received notice of change in conferees (Hse. Com. No. 817).

    4/30/2025Senate
  7. Passed Final Reading, as amended (CD 1). Ayes, 20; Aye(s) with reservations: Senator(s) Chang, DeCoite, Fukunaga, Kim, Lee, C., McKelvey, Rhoads, San Buenaventura, Wakai. Noes, 5 (Senator(s) Awa, Elefante, Gabbard, Ihara, Keohokalole). Excused, 0 (none).

    4/30/2025Senate
  8. Passed Final Reading as amended in CD 1 with Representative(s) Iwamoto voting aye with reservations; Representative(s) Amato, Garcia, Garrett, Ilagan, La Chica, Matayoshi, Pierick, Poepoe, Tam, Templo voting no (10) and Representative(s) Cochran excused (1).

    4/30/2025House
  9. Conference committee meeting to reconvene on 04-25-25 5:15 PM; Conference Room 309.

    4/25/2025Senate
  10. House Conferees Changed: Representative Takenouchi added as Co-Chair. Representative Yamashita discharged as Co-Chair.

    4/25/2025House
  11. Conference committee meeting to reconvene on 04-25-25 5:50 PM; Conference Room 309.

    4/25/2025Senate
  12. The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 4 Aye(s): Senator(s) Hashimoto, Kanuha, Rhoads, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Keohokalole.

    4/25/2025Senate
  13. The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Lowen, Tarnas, Takenouchi; Ayes with reservations: none; 1 Noes: Representative(s) Pierick; and 1 Excused: Representative(s) Matayoshi.

    4/25/2025House
  14. Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 219).

    4/25/2025Senate
  15. 48 Hrs. Notice (as amended CD 1) 04-30-25.

    4/25/2025Senate
  16. Reported from Conference Committee (Conf Com. Rep. No. 219) as amended in (CD 1).

    4/25/2025House
  17. Forty-eight (48) hours notice Wednesday, 04-30-25.

    4/25/2025House
  18. Conference committee meeting to reconvene on 04-24-25 12:00 PM; Conference Room 309.

    4/24/2025Senate
  19. Conference committee meeting to reconvene on 04-24-25 5:00 PM; Conference Room 309.

    4/24/2025Senate
  20. Conference committee meeting to reconvene on 04-24-25 8:00 PM; Conference Room 309.

    4/24/2025Senate
  21. Conference Committee Meeting will reconvene on Friday 04-25-25 9:14AM in conference room 325.

    4/24/2025House
  22. Bill scheduled for Conference Committee Meeting on Thursday, 04-24-25 9:15AM in conference room 325.

    4/23/2025House
  23. Received notice of appointment of House conferees (Hse. Com. No. 754).

    4/21/2025Senate
  24. Senate Conferees Changed: Senator Kanuha added as Co-Chair. Senator Rhoads added as Conferee. Senator Wakai discharged as Chair. Senator Hashimoto discharged as Co-Chair; Added as Chair.

    4/21/2025Senate
  25. Received notice of change in Senate conferees (Sen. Com. No. 849).

    4/21/2025House

Bill Text

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