New Wildfire Liability Law Benefits Electricity Consumers

Governor Greg Gianforte recently signed HB490 into law, requiring electric utilities to develop and follow wildfire prevention plans to reduce wildfire risk and to prevent the California strict liability standard from applying in Montana. This law was more than two years in the making and involved significant input from Montana’s electric cooperatives, NorthWestern Energy, MDU, state and federal agencies, and other stakeholders. All utilities and transmission operators in the state are now required to implement wildfire mitigation plans by end of 2025. Plans must include strategies to reduce fire risk through regular inspection, maintenance, repair and operation of electricity transmission and distribution equipment; clearing vegetation from rights-of-way; consultation with state, federal, tribal and local government entities; public involvement; and other measures. Montana’s 25 electric cooperatives are already hard at work making sure their plans fully comply with the law. The new law prevents strict liability for utility-involved wildfires from taking root in Montana. The strict liability standard in California’s Constitution, which led to bankruptcy for a utility in that state, and has been cited by trial attorneys in legal actions against utilities in other states, would have had disastrous consequences for electricity consumers if applied in Montana. Strict liability means an entity is presumed to be liable even if it wasn’t negligent and complied with the law. Simply put, a utility would automatically be held fully responsible for wildfire damages even if it didn’t start the fire. There would be no investigation or determination of facts about negligence. The only decision juries would have to make is how much utilities would be required to pay, significantly impacting electricity consumers. However, HB490 does not provide utilities a liability shield. If they fail to substantially comply with their wildfire mitigation plans or if there’s evidence they were negligent in their operations and started a fire, they will pay damages. The new law simply establishes a level playing field to allow utilities to continue to provide affordable and reliable electricity to consumers, while significantly reducing the likelihood of starting a fire. It also makes sure property owners are fairly compensated for damages in the event of a utility-caused fire. There were many lawmakers and government officials who made critical contributions to helping HB490 become law. Representative Amy Regier of Kalispell was its sponsor and expertly guided the bill through committee and floor votes with strong bipartisan support. Senator Vince Ricci of Billings carried the bill in the Senate. The strategies he and Senator Barry Usher of Billings employed overcame targeted opposition from out-of-state interests in the Judiciary Committee. Representatives Tom France of Missoula, Greg Overstreet of Stevensville, and Bill Mercer of Billings, all attorneys, helped make sure the bill’s language met Montana’s legal standards. Representative Shane Klakken from Grass Range and Senators Mike Cuffe of Eureka and Carl Glimm of Kila delivered powerful floor speeches that garnered support for the bill. Representative Tyson Running Wolf of Browning and Senators Shane Morigeau of Missoula and Susan Webber of Browning secured critical support for the bill from the Montana American Indian Caucus. The HB490 stakeholders are also grateful to Lieutenant Governor Kristen Juras and Montana DNRC Director Amanda Kaster for their early reviews of the bill and their strategic advice. By Gary Wiens, CEO, Montana Electric Cooperatives’ Association

New Wildfire Liability Law Benefits Electricity Consumers

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