HB2700 Summary

• Establishes the Hawaii Wildfire Relief Fund and Corporation to provide compensation for property damage from catastrophic wildfires (those damaging or destroying more than 500 residential or commercial structures).

• Creates a board-administered fund capitalized by contributions from the State, electric utilities, other public utilities, governmental entities, and private property owners with at least a specified acreage in Hawaii.

• Allows property owners to opt out of the fund, requires property insurers to elect participation annually, and limits claims based on insurance coverage levels and depletion events when fund resources are insufficient.

• Requires electric utilities to develop risk-based wildfire protection plans subject to Public Utilities Commission approval and allows cost recovery through securitization of bonds backed by non-bypassable wildfire protection charges on consumer bills.

• Establishes a prudence review process for utilities and other contributors whose facilities may have caused catastrophic wildfires, with potential reimbursement obligations to the fund capped at specified percentages.