Bill to standardize utilities’ wildfire mitigation plans clears committee

The state House Land, Agriculture & Rural Affairs Committee on Monday heard testimony on HB 2201, legislation by state Rep. Gail Griffin (R-Hereford) to require utility companies to submit wildfire mitigation plans to the Arizona Corporation Commission every two years as part of an overall effort to properly assign liability for loss and damage caused by wildfires. The first plan must be submitted by May 1, 2026.  

Utilities’ role in forest health

Prior to the testimony on the legislation, committee members heard a presentation from Andrew Rable, manager of the Forestry and Resource Management Group at APS, who explained how firefighters utilized APS corridors, which he explained as “proactive work” to fight the Horton Fire in January. APS actively manages vegetation in corridors to help prevent wildfires. 

A representative of APS also explained that the company spends approximately $110 million every year on proactive fire management. 

What the bill does

  • Wildfire mitigation planning: Establishes requirements for public power entities and electric utilities to create and submit wildfire mitigation plans for approval.
  • Clarifies legal liability: Limits the liability of public power entities and electric utilities for wildfire-related damages if in compliance with their approved wildfire mitigation plan unless there is clear and convincing evidence of willful, intentional, or reckless misconduct.
  • Mandatory compliance: Requires utilities to submit and update wildfire mitigation plans every two years, with oversight from a governing body or regulatory commission.
  • Vegetation management and power line safety: Mandates plans for vegetation control and power line de-energization to prevent wildfires.
  • Restrictions on legal claims: Prohibits class action lawsuits against power entities for wildfire-related claims and limits the types of damages that can be recovered.
  • Coordination with fire agencies: Requires consultation with state or federal land management or fire protection agencies when developing mitigation plans.
  • Public outreach: Calls for community engagement and public awareness efforts regarding wildfire risks and prevention strategies.

“All this legislation does is clarify how liability is prescribed up against the filed and approved wildfire management plans,” APS’ Michael Vargas said. 

Russell Smoldon of the Grand Canyon State Electric Cooperative Association said the bill is important because, “it would coordinate a plan and a response” to wildfires. 

The business community view

In addition to electric and natural gas utilities, the bill also enjoys support from several chambers of commerce, homebuilders, and telecommunications firms.

The bill is opposed by property and casualty insurers and trial lawyers.

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