Hawaii lawmakers are considering legislation to increase electrical utility regulation pertaining to wildfires in the wake of the Aug. 8 Maui disaster.

Several bills have been introduced in the Legislature this year with such intent, including one requiring grid operations that minimize catastrophic wildfire risk, one requiring regulatory approval of wildfire mitigation plans and one helping residential property owners in fire-prone areas reduce wildfire impacts.

Other pending bills would allow electrical utilities to sell low- interest bonds secured by future ratepayer revenue to recover costs of implementing wildfire mitigation plans and to pay for catastrophic wildfire expenses including legal claims.

Hawaiian Electric, which faces numerous lawsuits alleging that company utility lines pummeled by gale-force winds caused the Maui inferno that destroyed most of Lahaina and killed 100 people, has proposed some of the new legislation competing with measures introduced by others, including the administration of Gov. Josh Green.

A pair of bills from Green’s administration would allow regulated Hawaii electrical utilities to pay for wildfire mitigation work approved by the state Public Utilities Commission using proceeds from bonds secured by ratepayer revenue.

Such bonds would benefit ratepayers by lowering finance costs for system improvements that reduce wildfire risk. Typically, such costs get passed on to ratepayers, and Hawaiian Electric faces higher borrowing costs because the Maui wildfires led to the company’s credit rating being slashed from investment to junk grade.

Jim Kelly, Hawaiian Electric vice president of government and community relations, said in an interview that the cost for bonds securitized by customer bill revenue is less than even investment-­grade bonds.

“It would be a lot cheaper, so the impact on the bill and on the customer would be a lot less,” he said. “It’s an important tool. … It’s going to be very expensive work that’s going to need to be done in the coming years.”

Hawaiian Electric serves Oahu, Maui, Molokai, Lanai and Hawaii island. Kauai is served by the Kauai Island Utility Cooperative.

The two bills from Green’s administration, House Bill 2407 and Senate Bill 3096, had not yet been scheduled for a public hearing as of Friday.

“The governor believes we need to ensure wildfire mitigation and prevention policies and plans are adopted,” Blake Oshiro, senior adviser in the governor’s office, said in a statement. “We also need to find reasonable ways to finance these improvements and investments.”

Hawaiian Electric produced a written wildfire mitigation plan in January 2023 and sent it to the PUC in October in response to an information request.

In November the PUC took initial steps directing all public utilities to develop and submit reports on their ongoing efforts and future mitigation plans to address natural hazards, including wildfires, by May 21.

The PUC said in a statement, “The administration’s bill is critical because it creates a formal process requiring electric utilities to develop and submit wildfire protection plans to the Commission for review and approval. The bill language also includes financing structures that will assist the utilities in recovering certain costs while protecting the ratepayers.”

Hawaiian Electric prefers a pair of bills it produced, HB 2265 and SB 2922, which would allow the company to use bonds secured by rate revenue to pay for costs and expenses arising out of catastrophic wildfires, including legal settlements or damages, as well as for wildfire risk mitigation.

These two bills also had not yet been scheduled for a hearing as of Friday.

A PUC representative said the agency is still evaluating these two bills and therefore reserved comment.

If any of the four bills pertaining to secured bond financing passes, it would be up to the PUC to determine whether certain costs are just and reasonable for stakeholders, including customers.

There is some question as to whether any bill is needed to allow Hawaiian Electric to receive PUC approval to sell bonds secured by rate revenue to pay for costs related to wildfires or wildfire risk.

Kelly said the legislation proposed by Hawaiian Electric was modeled on legislation in California and Oregon after catastrophic wildfires there.

Another bill sought by Hawaiian Electric, SB 2997, would require electrical utilities to design and operate in compliance with a risk-based wildfire protection plan approved by the PUC. This bill, along with companion measure HB 2281, would provide a civil liability shield for actions in accordance with an approved plan or any part of a proposed draft removed by the PUC.

SB 2997 and HB 2281 had not been scheduled for a hearing as of Friday.

One other bill not heard yet also would require electric utilities to design and operate in compliance with a risk-based wildfire protection plan, but would establish a civil penalty for violations and not provide liability protection.

This bill, HB 2102, also would require utilities to report wildfires caused by or occurring in connection with their operations, and make the PUC investigate certain wildfires.

Two bills that have received an initial public hearing are advancing after public comments that included Hawaiian Electric supporting their intent but not specific language.

One of these measures, SB 2091, would require that electrical utilities prepare and submit an annual wildfire mitigation plan to the PUC for review and approval.

This bill also would require that such plans include protocols for deenergizing power lines and that there be a procedure for notifying customers while also having telecommunications providers inform public safety officials in affected areas about deenergizations.

The Senate Committee on Public Safety and Intergovernmental and Military Affairs advanced SB 2091 Wednesday with amendments.

Jimmy Alberts, Hawaiian Electric’s chief operations officer, told the committee that the company supports the intent of the bill and has been working to reduce wildfire risks with planning and system improvements.

“I want to make sure we point out that we’re not waiting for these bills,” he said. “As a company, Hawaiian Electric is actively pursuing its own wildfire mitigation plan. … We’ve changed settings on our transmission system and our distribution system to prevent ignitions. We’re inspecting poles or replacing poles. We’re doing all the things to harden our infrastructure and make things safer.”

Alberts suggested amendments to the bill that he said would make it more comprehensive and robust. He also told the committee that it would be a great outcome if the company ends up with a regulated approved plan by the PUC.

The amendments proposed by Hawaiian Electric included a PUC action deadline, authorization for a utility company to recover reasonable plan implementation costs through rates, and a conditional liability shield similar to what was proposed in the other bills.

State Sen. Glenn Wakai, who introduced SB 2091 with eight other senators and chairs the committee that heard the bill, recommended amending the bill based on Hawaiian Electric suggestions except for the liability shield.

“I don’t think that’s right to put in there,” said Wakai (D, Kalihi-Salt Lake-Pearl Harbor).

An amended SB 2091 passed unanimously and could be considered next by the Senate Committee on Commerce and Consumer Protection.

The second bill advanced Wednesday by the committee led by Wakai was SB 2092, which would direct the PUC to have electrical utilities help residential property owners in fire-prone areas reduce wildfire impacts or purchase emergency equipment or supplies for use in deenergization events. Such help could be through rate rebates or discounts.

Wakai, who introduced this bill with seven other senators, said the measure was modeled on one applied to California utility company PG&E.

Alberts said Hawaiian Electric favors a more holistic approach based on costs and benefits among all risks.

Michael Angelo, executive director of the Division of Consumer Advocacy at the state Department of Commerce and Consumer Affairs, offered similar comments in written testimony.

“Given Hawaii’s state-wide risk to a multitude of hazards, including, but not limited to, wildfires, high wind events, and flooding, the Department offers that it is supportive of a holistic system-wide approach that seeks to prioritize maintaining safety and reliability during a range of natural hazards and incorporates state-wide stakeholder feedback.”

Angelo also noted that the help proposed in SB 2092 seemingly supports only a single subset of ratepayers who have the financial means to own residential property.

Henry Curtis, executive director of the environmental group Life of the Land, characterized the proposed benefit as unfair subsidization by renters and other ratepayers.

“It seems to be a bill that allows reverse Robin Hood economics,” he told the committee.

The committee unanimously voted to advance the bill with some amendments, which could next be considered by the Senate Committee on Commerce and Consumer Protection.