HB 982 Hawaii House · 2025 Regular Session

RELATING TO WILDFIRES.

Summary

Establishes a working group within the Department of Commerce and Consumer Affairs to conduct a study concerning the creation of a Wildfire Recovery Fund. Requires a report to the Legislature. Effective 7/1/3000. (SD1)

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

House Passage

Mar 2025

Senate Passage

Governor

Introduced Jan 21, 2025 Last action Mar 21, 2025

Maddy AI version diff · 4 comparisons

What changed between versions

HB982_HD3 → HB982_SD1 · 6 edits

MODERATE

The bill was significantly rewritten from a direct wildfire compensation law into a study and working group directive. Instead of immediately establishing a compensation fund and administrative claims process, the new version requires the Department of Commerce and Consumer Affairs to form a working group to analyze proposed legislation and submit a report before the 2026 legislative session.

Scope change

The bill's scope shifted from immediate implementation of a wildfire recovery fund to a preliminary study phase that delays any fund establishment until after the working group's recommendations are reviewed.

REQUIREMENT

Removed all substantive provisions establishing a wildfire recovery fund, administrative claims process, liability caps, and utility replenishment requirements.

Added a requirement to convene a working group within the Department of Commerce and Consumer Affairs to analyze wildfire recovery fund proposals.

Added specific membership requirements for the working group, including representatives from the attorney general, public utilities commission, consumer advocacy, insurance division, and utility cooperatives.

TIMELINE

Changed the effective date from immediate operation to July 1, 3000, and added a requirement for the working group to submit a report 90 days before the 2026 regular session.

DEFINITION

Removed detailed definitions for terms like 'catastrophic wildfire,' 'covered catastrophic wildfire,' 'contributor,' and 'electric utility' that were necessary for implementing the compensation fund.

SCOPE

Added a mandate to compare similar funds in other states and analyze how they affected utility credit ratings.

HB982_HD2 → HB982_HD3 · 6 edits

MODERATE

This version of HB 982 (HD3) significantly expands the wildfire recovery legislation by adding a comprehensive securitization framework that allows electric utilities to finance their contributions to the Wildfire Recovery Fund through bond issuance. The bill also clarifies definitions, establishes detailed rules for claims processing, and sets a future review date of 2035 for potential fund reductions. These changes aim to make wildfire compensation more financially sustainable for utilities while maintaining compensation for affected property owners.

Scope change

The bill's scope expanded from a basic compensation fund to include a full securitization framework allowing utilities to issue bonds backed by future wildfire recovery charges, plus added detailed operational procedures for the fund.

FISCAL

Added Chapter B establishing a securitization framework that allows electric utilities to issue bonds backed by wildfire recovery charges to finance their contributions to the Wildfire Recovery Fund.

REQUIREMENT

Added detailed rules for the executive director's authority to manage the fund, including power to issue revenue bonds, retain professionals, and adopt operational rules under chapter 91.

DEFINITION

Added numerous new definitions including 'ancillary agreement,' 'financing entity,' 'wildfire recovery property,' and 'true-up adjustment' to support the securitization framework.

TIMELINE

Established a 2035 review date requiring the executive director to report on fund status and allowing the legislature to order refunds if the fund is overfunded based on risk reduction measures.

ENFORCEMENT

Added provisions for court consolidation of wildfire cases, equitable application of liability limits, and procedures for contributors to seek reimbursement from the fund after exhausting insurance.

TECHNICAL

Added extensive technical provisions regarding security interests in wildfire recovery property, financing statements, and protection against setoff or counterclaim in bankruptcy proceedings.

HB982 → HB982_HD1 · 8 edits

MODERATE

The bill was transformed from a standard legislative text format into a detailed, computer-generated document with metadata headers and extensive new content. The core policy remains the same: establishing a Wildfire Recovery Fund to compensate property owners for damages caused by utility-related wildfires, but the document now includes comprehensive new chapters on fund administration, securitization mechanisms for utilities, and detailed definitions.

Scope change

The bill's scope expanded significantly to include detailed administrative procedures, securitization provisions for financing wildfire recovery costs, and specific rules for claim processing and liability limits.

METADATA

Added extensive document metadata including bill numbers, dates, author information, and template identifiers that were not present in the original text.

DEFINITION

Added comprehensive definitions for terms like 'catastrophic wildfire,' 'covered catastrophic wildfire,' 'contributor,' 'financing entity,' and 'wildfire recovery property' to clarify legal standards.

FISCAL

Established specific funding amounts for the Wildfire Recovery Fund, including $500 million from customers and $505 million from shareholders for investor-owned utilities.

REQUIREMENT

Added requirements for utilities to submit wildfire risk mitigation plans and provide cost comparisons for commercial insurance coverage.

ENFORCEMENT

Created new enforcement mechanisms including the ability for the Public Utilities Commission to order utilities to replenish the fund if they acted imprudently.

TIMELINE

Added specific timelines including a 2035 legislative review for potential fund refunds and a 2034 reporting deadline for the executive director.

TECHNICAL

Added detailed technical provisions for securitization, bond issuance, and financing orders to allow utilities to raise capital for wildfire recovery costs.

Changed the document structure from a simple legislative text format to a complex, multi-section format with chapter designations and extensive formatting codes.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 21, 2025

Committee

Reported from CPN/EIG (Stand. Com. Rep. No. 1343) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Mar 20, 2025

Upper · Passed

The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EIG were as follows: 4 Aye(s): Senator(s) Wakai, Chang, DeCoite, Richards; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.

upper

Mar 20, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey, Richards, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Mar 14, 2025

Upper · Passed

The committee(s) on CPN/EIG has scheduled a public hearing on 03-20-25 9:30AM; Conference Room 229 & Videoconference.

upper

Mar 6, 2025

Committee

Referred to CPN/EIG, WAM.

upper

Mar 6, 2025

Introduced

Received from House (Hse. Com. No. 312).

upper

Mar 4, 2025

Lower · Passed

Passed Third Reading as amended in HD 3 with Representative(s) Perruso voting aye with reservations; Representative(s) Amato, Cochran, Garcia, Iwamoto, La Chica, Poepoe voting no (6) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate.

lower

Feb 20, 2025

Lower · Passed

The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 14 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Alcos, Ward.

lower

Feb 14, 2025

Committee

Report adopted; referred to the committee(s) on FIN as amended in HD 2 with none voting aye with reservations; Representative(s) Amato, Garcia voting no (2) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4).

lower

Feb 14, 2025

Committee

Reported from CPC/JHA (Stand. Com. Rep. No. 776) as amended in HD 2, recommending referral to FIN.

lower

Feb 13, 2025

Lower · Passed

The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Kahaloa, Perruso, Takayama, Todd; Ayes with reservations: none; Noes: none; and 4 Excused: Representative(s) Cochran, Hashem, Garcia, Shimizu.

lower

Feb 13, 2025

Lower · Passed

The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Ichiyama, Kong, Lowen, Marten, Tam; Ayes with reservations: Representative(s) Iwamoto; Noes: none; and 1 Excused: Representative(s) Pierick.

lower

Feb 6, 2025

Committee

Reported from EEP (Stand. Com. Rep. No. 230) as amended in HD 1, recommending passage on Second Reading and referral to CPC/JHA.

lower

Feb 5, 2025

Lower · Passed

The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 4 Ayes: Representative(s) Lowen, Perruso, Kahaloa, Kusch; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Quinlan, Ward.

lower

Jan 28, 2025

Committee

Re-referred to EEP, CPC/JHA, FIN, referral sheet 6

lower

Jan 23, 2025

Committee

Referred to EEP/PBS, CPC/JHA, FIN, referral sheet 3

lower

Jan 23, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 21, 2025

Introduced

Pending introduction.

lower

5 primary · 1 co-sponsor