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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
technical
correction; electricity; power authority
(NOW: wildfire mitigation planning; utilities; approval)
Purpose
Requires public power entities and electric utilities to prepare a biennial wildfire mitigation plan, as prescribed, and outlines wildfire mitigation plan review and approval requirements. Prescribes liability for causing wildfires and requires all elements to be proven by clear and convincing evidence for any cause of action against a public power entity or electric utility that is related to wildfire.
Background
The Arizona Constitution deems all corporations, other than municipal, engaged in furnishing gas, oil or electricity for light, fuel, power, water for irrigation, fire protection or other public purposes, or engaged in furnishing for profit hot or cold air or steam for heating or cooling purposes, as public service corporations (Ariz. Const. art. 15 § 2).
The Arizona
Corporation Commission (ACC) regulates investor-owned or
privately-owned utilities that provide gas, water, electricity or telephone
service (ACC). The ACC has the
power to inspect and investigate the property, books, papers, business, methods
and affairs of any corporation whose stock is offered for sale to the public
and any public service corporation doing business within Arizona (Ariz.
Const. art. 15 § 4). The Arizona Constitution allows the Legislature to
enlarge the powers and extend the duties of the ACC and to prescribe rules and regulations
to govern proceedings by and before the ACC (Ariz.
Const. art. 15 § 6).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Wildfire Mitigation Plans
1. Requires a public power entity to prepare and submit to its governing body, for review and approval, a wildfire mitigation plan by May 1, 2026, and every even-numbered year thereafter, unless the governing body orders otherwise, and allows the entity to use a submission as an update to the last approved plan.
2. Requires an electric utility to prepare and submit to the Arizona Corporation Commission, for review and approval, a wildfire mitigation plan by May 1, 2026, and every even-numbered year thereafter, and allows the utility to use a submission as an update to the last approved plan.
3. Requires an electric utility that is governed by an elected board to submit, for review and approval, its wildfire mitigation plan to the elected board, rather than the ACC, by May 1, 2026, and every even-numbered year thereafter, unless the governing board orders otherwise.
4. Specifies that, for an electric utility governed by an elected governing board, the role of the ACC is replaced by the utility's elected board for the purposes of the wildfire mitigation plan.
5. Requires a public power entity and electric utility, before submitting a wildfire mitigation plan, to consult with a state or federal land management or fire protection agency that has authority in the entity's or utility's service territory, as applicable, as to the plan's content.
6. Requires a wildfire mitigation plan to include:
a) a description of areas within the geographic region where the public power entity's or electric utility's facilities may be subject to a heightened risk of wildfire;
b) a description of the procedures and standards that the public power entity or electric utility will use to inspect and operate its infrastructure to mitigate wildfire risk;
c) a description of the key individuals or position titles of those persons who are responsible for implementing the plan;
d) a description of procedures for deenergizing power lines and disabling reclosers to mitigate potential wildfires or provide a public safety power shut off plan;
e) a plan for vegetation management;
f) a summary of the procedures the public power entity or electric utility intends to use to restore its electrical system in the event of a wildfire;
g) a description of community outreach and public awareness efforts;
h) a description of potential participation, if applicable, with state or local wildfire protection efforts; and
i) a description of how the public power entity or electric utility will monitor compliance with the plan.
7. Allows a public power entity and electric utility to reference procedures and standards that are not specifically enumerated in the wildfire mitigation plan in lieu of the above prescribed requirements and requires referenced material to be included as attachments to the plan submission.
8. Requires a governing body or the ACC, as applicable, to review the submitted wildfire mitigation plan to ensure that the plan:
a) complies with the statutory wildfire mitigation planning requirements and all applicable rules and regulations;
b) is reasonable; and
c) is in the public interest.
9. Allows a governing body or the ACC, as applicable, to request additional information or a modification to the submitted wildfire mitigation plan within 120 days after receiving the plan by providing written notice to the public power entity or electric utility.
10. Stipulates that, if a governing body or the ACC does not request additional information or a modification to the wildfire mitigation plan, the plan is deemed administratively approved after 120 days.
11. Requires a public power entity and electric utility to revise its wildfire mitigation plan within 90 days after receiving a request for additional information or modification.
12. Grants a governing body or the ACC, as applicable, 60 days to consider the public power entity's or electric utility's response and any proposed additional information or modification to the wildfire mitigation plan.
13. Stipulates that, if a governing body or the ACC does not request additional information or a modification to the revised wildfire mitigation plan, the plan is deemed administratively approved after 60 days.
14. Deems a wildfire mitigation plan as approved during pendency of any judicial action that seeks review of the governing body's or ACC's approval or rejection of the plan or any portion of the plan.
Liability for Causing Wildfires
15. Specifies that the statutory wildfire mitigation planning requirements establish the exclusive means of recovery from a public power entity or electric utility for claims or damages resulting from wildfires, except as otherwise agreed to in writing or established by federal law.
16. Requires all elements to be proven by clear and convincing evidence for any cause of action against a public power entity or electric utility that is related to wildfire.
17. Specifies that a public power entity or electric utility that substantially acts in compliance with an approved wildfire mitigation plan is deemed to meet the standard of care for a reasonably prudent entity or utility, unless there is clear and convincing evidence of willful, intentional or reckless misconduct.
18. Specifies that a failure to comply with an approved wildfire mitigation plan does not constitute negligence per se.
19. Prohibits a public power entity's or electric utility's wildfire mitigation plan from being admissible as evidence against another entity or utility in a civil action arising out of a wildfire.
20. Prohibits a public power entity or electric utility from being apportioned any fault for:
a) the ignition of a wildfire from sources outside the entity's or utility's control, including lightning strikes or actions by third parties; or
b) vegetation of other wildfire risks outside the entity's or utility's right-of-way, lease or other property rights or areas in which the entity has been delayed in accessing or denied access to for purposes of performing vegetation management.
21. Prohibits a claim for condemnation or inverse condemnation from existing against a public power entity or electric utility related to wildfires.
22. Prohibits consequential property damages or exemplary or punitive bodily injury or property damages from being recovered in an action against a public power entity or electric utility to recover damages resulting from wildfire.
23. Requires, for the purpose of determining liability in a cause of action against a parent, subsidiary or other corporate affiliate that is related to a wildfire, the parent, subsidiary or other corporate affiliate of the public power entity or electric utility to be treated the same as and considered equivalent to a public power entity.
24. Requires, for the purpose of determining liability in a cause of action against a public power entity or electric utility that is related to a wildfire, an attachor to be considered to be a public power entity or electric utility with respect to any liability that may be alleged to have arisen out of the attachor's equipment.
Miscellaneous
25. Specifies that the statutory wildfire mitigation planning requirements do not establish a new cause of action and stipulates that, if there is a conflict between the statutory wildfire mitigation planning requirements and any other state law, the statutory wildfire mitigation planning requirements control.
26. Specifies that the statutory wildfire mitigation planning requirements do not establish any additional legal duty that supports any claim that would not otherwise already exist.
27. Specifies that the statutory wildfire mitigation planning requirements are severable and stipulates that, if any of the outlined requirements or a public power entity's or electric utility's application to any person or circumstance is held invalid, the invalidity does not affect other statutory provisions or applications that can be given effect without the invalid provision or application.
28. Defines terms.
29. Becomes effective on the general effective date.
House Action
LARA 2/3/25 DPA/SE 5-2-1-1
3rd Read 2/25/25 35-25-0
Prepared by Senate Research
March 19, 2025
MG/ci