HOUSE BILL 267

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Meredith A. Dixon and Pat Woods

 

 

 

 

 

AN ACT

RELATING TO ELECTRIC UTILITIES; ENACTING THE WILDFIRE UTILITY MITIGATION AND LIABILITY ACT; PROVIDING FOR WILDFIRE MITIGATION PLANS, APPROVALS AND ANNUAL COMPLIANCE REPORTS; ALLOWING FOR COST RECOVERY; ESTABLISHING LIMITATIONS ON LIABILITY; PROVIDING ACCESS TO GRANTS FOR COOPERATIVES TO IMPLEMENT MITIGATION PLANS; CREATING A STATUTE OF LIMITATION; AMENDING SECTION 30-32-4 NMSA 1978 (BEING LAWS 1882, CHAPTER 61, SECTION 7, AS AMENDED) AND SECTION 37-1-4 NMSA 1978 (BEING LAWS 1880, CHAPTER, 5, SECTION 4, AS AMENDED) TO CREATE EXCEPTIONS FOR DAMAGES AWARDED FOR STARTING A FIRE AND ACTIONS FOR PERSONAL INJURY; MAKING APPROPRIATIONS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of Chapter 62 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] SHORT TITLE.--Sections 1 through 12 of this act may be cited as the "Wildfire Utility Mitigation and Liability Act"."

     SECTION 2. A new section of Chapter 62 NMSA 1978 is enacted to read:

      "[NEW MATERIAL] DEFINITIONS.--As used in the Wildfire Utility Mitigation and Liability Act:

          A. "commercially sensitive information" means nonpublic business data that, if disclosed, could give competitors an advantage or cause significant financial harm, and includes pricing, customer lists, financial models and strategic plans;

          B. "commission" means the public regulation commission;

          C. "confidential information" includes:

                (1) information that identifies an electric utility's customers personally;

                (2) trade secrets, as defined by law, or commercially sensitive information; and

                (3) sensitive information regarding facilities or operations of the electric utility, the protection of which is necessary for public safety or the security of the electric utility;

          D. "division" means the forestry division of the energy, minerals and natural resources department;

          E. "electric utility" means:

                (1) an electric public utility regulated by the commission pursuant to the Public Utility Act; or

                (2) a utility owned or operated by a municipally owned corporation that is exempt from commission regulation pursuant to Section 62-6-4 NMSA 1978;

          F. "mitigation plan" means a wildfire mitigation plan that is submitted to the commission for review and approval;

          G. "national wildfire coordinating group" means the interagency working group originally formed by the United States department of agriculture and the United States department of the interior in 1976 to establish a formalized system of standards of training, equipment, aircraft, suppression priorities and other operational issues affecting fire management, which currently includes various state and tribal land management and other entities concerned with fire management;

          H. "public safety power shutoff" means a temporary cut in power by an electric utility to an area experiencing extreme wildfire risk to prevent the utility's equipment from causing a fire;

          I. "public safety power shutoff plan" means a plan developed by an electric utility to implement a public safety power shutoff, including how a power shutoff decision is made and who is authorized to make the decision;

          J. "qualified wildfire civil action" means a civil action against an electric utility:

                (1) in which a plaintiff seeks damages resulting from a wildfire that originated from the operations, facilities or equipment of the electric utility; and

                (2) that has received a certificate of compliance from the commission;

          K. "rider" means a separate charge or credit on an electricity service bill used to recover specific costs or provide specific adjustments not covered in the standard base rates for electricity service; and

          L. "wildfire" means:

                (1) a fire that orginated from an unplanned ignition, such as lightning, geothermal activity or an unauthorized or accidental human-caused fire; or

                (2) a prescribed fire that is declared a wildfire by the federal, state or tribal agency with jurisdiction over the land where the fire originated."

     SECTION 3. A new section of Chapter 62 NMSA 1978 is enacted to read:

      "[NEW MATERIAL] MITIGATION PLAN--APPROVAL--DURATION--EFFECT.--

          A. An electric utility may submit a mitigation plan to the commission for review and approval. If the electric utility demonstrates substantial compliance with the approved mitigation plan within one year, pursuant to Section 5 of the Wildfire Utility Mitigation and Liability Act, the commission shall issue the utility a certificate of compliance. A certificate of compliance shall serve as proof of an electric utility's reasonable and prudent preparation for, and mitigation of, wildfire risk in a qualified wildfire civil action.

          B. Beginning August 1, 2026, an electric utility may submit a mitigation plan to the commission for review and approval.

          C. The commission shall approve or reject a mitigation plan in writing within one hundred eighty days of submission of the plan. If the commission does not approve or reject a mitigation plan within one hundred eighty days, the plan shall be deemed approved.

          D. An electric utility that has an approved mitigation plan shall submit an updated mitigation plan upon the commission's request. The commission may request an updated mitigation plan from an electric utility no more than once every five years from the date a mitigation plan is approved.

          E. The commission may promulgate rules to govern the process for submission, review and approval of mitigation plans.

          F. Neither the commission nor the state shall be liable for monetary damages in a claim based upon the commission's approval or denial of a mitigation plan."

     SECTION 4. A new section of Chapter 62 NMSA 1978 is enacted to read:

      "[NEW MATERIAL] MITIGATION PLANS--REQUIREMENTS.--A mitigation plan shall include the following:

          A. the electric utility's service territory and a description of the methods by which the electric utility will assess wildfire risk within the electric utility's service territory;

          B. the electric utility's situational awareness program, including weather monitoring;

          C. the procedures, standards and schedules that the electric utility will use to inspect, maintain and operate its transmission and distribution infrastructure;

          D. the procedures and standards that the electric utility will use to perform vegetation management;

          E. the proposed mitigation measures, modifications, replacements and upgrades to facilities and preventive programs that the electric utility will implement to reduce the risk of its electric facilities causing a wildfire, including pole and right-of-way inspections;

          F. how the electric utility will coordinate with other electric utilities regarding any shared facilities;

          G. if the electric utility has a public safety power shutoff plan, a description of how the electric utility will implement the plan; how the electric utility will communicate with the public, other utilities and emergency responders regarding power shutoffs; and the electric utility's procedures for restoring power upon the conclusion of a public safety power shutoff;

          H. the procedures that the electric utility will use to restore its electrical system in the event of a wildfire;

          I. the community outreach and public awareness efforts that the electric utility will use when implementing a public safety power shutoff;

          J. the electric utility's emergency response procedures in the event of a wildfire, including procedures for coordination with emergency managers before and during an active wildfire; and

          K. procedures for coordination with first responders and government agencies and officials, including forest managers, wildland firefighters and local fire departments, during a wildfire."

     SECTION 5. A new section of Chapter 62 NMSA 1978 is enacted to read:

      "[NEW MATERIAL] COMPLIANCE REPORTS--CERTIFICATE OF COMPLIANCE--NOTICE OF NONCOMPLIANCE--RECOVERY ACTION.--

          A. On or before June 1 of the calendar year following the approval of a mitigation plan, and on or before June 1 of each year thereafter, an electric utility shall submit a compliance report to the commission detailing the electric utility's compliance with its approved mitigation plan, including any modifications and updates made to the mitigation plan.

          B. No later than one hundred eighty days after the submission of a compliance report, the commission, in consultation with the division, shall determine whether the electric utility substantially complied with the electric utility's mitigation plan during the preceding year, and:

                (1) if the commission determines that the electric utility is in substantial compliance, the commission shall issue a certificate of compliance to the electric utility; or

                (2) if the commission determines that the electric utility is not in substantial compliance with its mitigation plan, the commission shall issue a notice of noncompliance to the electric utility that identifies the specific areas of noncompliance.

          C. Upon receiving a notice of noncompliance, an electric utility may undertake corrective action to come into compliance with its mitigation plan and, upon completing the corrective action, submit a report to the commission detailing the corrective action.

          D. Within sixty days of receiving a report of a corrective action from an electric utility, the commission shall determine whether the electric utility is in substantial compliance following the corrective action.

          E. If, after reviewing a corrective action report, the commission finds that an electric utility remains out of substantial compliance with the utility's mitigation plan, the commission shall notify the electric utility of that finding and the electric utility may either undertake further corrective action or seek judicial review pursuant to Section 39-3-1.1 NMSA 1978.

          F. If the commission fails to make a determination within a time period prescribed by this section, the electric utility shall be deemed to be in substantial compliance with its mitigation plan.

          G. The commission shall revoke a certificate of compliance when an electric utility fails to:

                (1) take corrective action to come into compliance with a mitigation plan; or

                (2) update a mitigation plan as requested by the commission.

          H. Neither the commission nor the state shall be liable for monetary damages in a claim based upon the commission's issuance or denial of a certificate of compliance."

     SECTION 6. A new section of Chapter 62 NMSA 1978 is enacted to read:

      "[NEW MATERIAL] POSTING OF MITIGATION PLANS--CONFIDENTIALITY.--

          A. The commission shall post on the commission's website and make publicly available an electric utility's current mitigation plan, compliance report and, as applicable, certificate of compliance or notice of noncompliance; provided that the commission shall not post or make publicly available any information designated as confidential in accordance with this section.

          B. If an electric utility includes confidential information with its mitigation plan or compliance report, the confidential information shall be marked "CONFIDENTIAL – NOT FOR PUBLIC RELEASE", and the confidential information shall be attached as a separable appendix to the mitigation plan or annual report."

     SECTION 7. A new section of Chapter 62 NMSA 1978 is enacted to read:

      "[NEW MATERIAL] MITIGATION PLAN IMPLEMENTATION--PROPERTY ACCESS.-- 

          A. If an electric utility requires access to private, state or local government-owned property to implement an approved mitigation plan, the electric utility shall submit a written request to access the property to the property owner through post-prepaid mail or electronic message to an email address known to belong to the property owner. If the property owner does not grant or deny access within thirty days of submission of the request, the property owner shall be deemed to have agreed to the request to access the property for the limited purpose of performing work necessary to the approved mitigation plan.

          B. Upon request by an electric utility, a local law enforcement agency may provide personnel, equipment, traffic control, public safety support or other reasonable assistance necessary to carry out wildfire mitigation activities.

          C. An electric utility shall not be held liable in a civil action for damage to a property resulting from an action to implement a mitigation plan unless the electric utility intentionally or maliciously causes damage to a property."

     SECTION 8. A new section of Chapter 62 NMSA 1978 is enacted to read:

      "[NEW MATERIAL] COST RECOVERY.--

          A. As used in this section, "true-up" means to conduct an accounting reconciliation of the accruals and expenses for a business, project or program that replaces prior estimated figures with actual figures when the actual figures become available.

          B. If the commission approves a mitigation plan for an electric public utility regulated by the commission pursuant to the Public Utility Act, the commission shall concurrently approve a permanent mitigation plan cost recovery rider to allow the electric utility to recover reasonably incurred investments and expenditures, including the costs of capital, made to implement the mitigation plan; provided that the mitigation plan cost recovery rider is subject to change based on a subsequent truing-up of the costs of capital investments and expenses. The commission shall annually true-up a mitigation plan cost recovery rider upon submission of the electric utility's compliance reports pursuant to Section 5 of the Wildfire Utility Mitigation and Liability Act.

          C. The commission may expressly disallow specific costs from being eligible for recovery by an electric utility through a written order.

          D. Costs incurred by an electric utility resulting from compliance with an approved mitigation plan are deemed reasonable and recoverable unless expressly disallowed by the commission pursuant to Subsection C of this section."

     SECTION 9. A new section of Chapter 62 NMSA 1978 is enacted to read:

      "[NEW MATERIAL] QUALIFIED WILDFIRE CIVIL ACTIONS--LIMITATIONS ON LIABILITY AND DAMAGES.--

          A. In a qualified wildfire civil action, there shall be a rebuttable presumption that a certificate of compliance is proof of reasonable and prudent preparation for, and mitigation of, wildfire risk. A plaintiff may rebut this presumption only upon proof by clear and convincing evidence through an origin and cause investigation conducted by a federal, state or tribal agency pursuant to the national wildfire coordinating group wildfire investigation standards that:

                (1) the electric utility's operations, facilities or equipment caused the fire;

                (2) the electric utility failed to substantially comply with its mitigation plan;

                (3) the electric utility's failure to comply with its mitgation plan was the actual and proximate cause of the plaintiff's claimed damages;

                (4) the electric utility was not prevented from complying with its plan by a federal agency, property owner, customer or member of the electric utility or local, state or tribal government; and

                (5) the electric utility intentionally or maliciously disregarded the risk of wildfire posed by its operations, facilities or equipment.

          B. In a qualified wildfire civil action, a monetary award for damages may only be awarded as follows:

                (1) for an economic loss, the award shall be the lesser of:

                     (a) the cost to restore damaged property to the property's condition before the wildfire; or

                     (b) the difference between the fair market value of the property before the wildfire and the fair market value of the property after the wildfire without restoration; and

                (2) for a noneconomic loss, a monetary damage award shall not be greater than five hundred thousand dollars ($500,000) per plaintiff and may only be awarded for a physical injury that, as established by the competent testimony of a health care provider:

                     (a) creates a high probability of death, causes serious disfigurement or results in permanent or protracted loss or impairment of the function of any body part or organ; or

                     (b) resulted in death.  

          C. When an origin and cause investigation conducted pursuant to the national wildfire coordinating group wildfire investigation standards determines that a wildfire was caused by vegetation from outside an electric utility's easement, property or right of way, the electric utility is not liable in a civil action for damages resulting from the fire, unless:

                (1) the owner of the property on which the vegetation originated provided the electric utility with a written demand to remove the vegetation prior to the wildfire's ignition and the electric utility unreasonably refused to comply with the written demand; or

                (2) a plaintiff proves, by clear and convincing evidence, that:

                     (a) the electric utility's equipment, facilities or operations substantially contributed to the fire;

                     (b) the electric utility failed to substantially comply with its mitigation plan with respect to maintenance of the easement, property or right of way;

                     (c) the electric utility's failure to comply with its mitigation plan was an actual and proximate cause of the plaintiff's claimed damages;

                     (d) the electric utility was not denied the ability to comply with its mitigation plan by a federal agency, property owner, customer or member of the electric utility or local, state or tribal government; and

                     (e) the electric utility intentionally or maliciously disregarded the risk of wildfire posed by its operations, facilities or equipment.

          D. In a qualified wildfire civil action against an electric utility owned or operated by the state or a political subdivision of the state, the procedural provisions and the damages limitations of the Tort Claims Act shall apply.

          E. Attorney fees and exemplary or punitive damages shall not be awarded in a qualified wildfire civil action.

          F. In a qualified wildfire civil action, an electric utility shall not be liable for implementing or not implementing a public safety power shutoff when the electric utility acts in conformity with an approved mitigation plan.

          G. The provisions of this section shall not limit the defenses that an electric utility may be entitled to raise in a qualified wildfire civil action."

     SECTION 10. A new section of Chapter 62 NMSA 1978 is enacted to read:

      "[NEW MATERIAL] STATUTE OF LIMITATION.--A qualified wildfire civil action shall be brought within one calendar year after the ignition of the wildfire."

     SECTION 11. A new section of Chapter 62 NMSA 1978 is enacted to read:

      "[NEW MATERIAL] WILDFIRE MITIGATION GRANTS--ELIGIBILITY.--

          A. As used in this section, "cooperative" means a

cooperative nonprofit membership corporation organized pursuant to the Rural Electric Cooperative Act.

          B. The division may provide grants to cooperatives to assist in the implementation of mitigation plans.

          C. To be eligible for a grant, a cooperative shall have a mitigation plan that has been approved by the commission. A cooperative shall not receive more than one grant per year, and a single grant shall not be greater than one million dollars ($1,000,000).

          D. The division shall promulgate rules to establish the criteria, process and application requirements for grants; provided that:

                (1) grants shall be prioritized to achieve the greatest anticipated mitigation of wildfire risk;

                (2) prior to approving a grant, the division shall make a written determination that the incidental benefit to the cooperative is outweighed by the benefits to the state resulting from the reduction in fire in wildfires within the state; and

                (3) grant applicants shall be required to use the grant money solely for actions to implement an approved mitigation plan."

     SECTION 12. A new section of Chapter 62 NMSA 1978 is enacted to read:

      "[NEW MATERIAL] RULEMAKING.--The commission may promulgate rules necessary to implement the Wildfire Utility Mitigation and Liability Act."

     SECTION 13. Section 30-32-4 NMSA 1978 (being Laws 1882, Chapter 61, Section 7, as amended) is amended to read:

     "30-32-4. DAMAGES TO PERSON INJURED.--Except for an electric utility operating pursuant to a wildfire mitigation plan approved by the public regulation commission pursuant to the Wildfire Utility Mitigation and Liability Act, if a person sets on fire any woods, marshes or prairies, whether the property is the person's own or not, [so as thereby to occasion] and causes damage to another person or that other person's property, the [person shall make satisfaction in double damages to the party injured to be recovered by civil action] responsible party shall pay the injured party twice the amount of damages, recoverable through a civil action, unless the person is conducting a prescribed burn pursuant to the Prescribed Burning Act."

     SECTION 14. Section 37-1-4 NMSA 1978 (being Laws 1880, Chapter 5, Section 4, as amended) is amended to read:

     "37-1-4. ACCOUNTS--UNWRITTEN CONTRACTS--TORTS--FRAUDS--GENERAL PROVISION.--[SEC. 4. Those] Excepting qualified wildfire civil actions brought against an electric utility for damages resulting from wildfire pursuant to the Wildfire Utility Mitigation and Liability Act, actions founded upon accounts and unwritten contracts, [those] actions brought for injuries to property or for the conversion of personal property or for relief upon the ground of fraud and all other actions not [herein] otherwise provided for in Chapter 37, Article 1 NMSA 1978 and specified shall be brought within four years."

     SECTION 15. APPROPRIATION.--One million five hundred thousand dollars ($1,500,000) is appropriated from the general fund to the public regulation commission for expenditure in fiscal year 2027 to purchase equipment and contract for services to carry out the public regulation commission's duties pursuant to the Wildfire Utility Mitigation and Liability Act. Any unexpended balance remaining at the end of fiscal year 2027 shall revert to the general fund.

     SECTION 16. APPROPRIATION.--Ten million dollars ($10,000,000) is appropriated from the general fund to the forestry division of the energy, minerals and natural resources department for expenditure in fiscal years 2027 and 2028 to provide grants to cooperative nonprofit membership corporations organized pursuant to the Rural Electric Cooperative Act pursuant to Section 11 of the Wildfire Utility Mitigation and Liability Act. Any unexpended balance remaining at the end of fiscal year 2028 shall revert to the general fund.

     SECTION 17. APPROPRIATION.--Seven hundred fifty thousand dollars ($750,000) is appropriated from the general fund to the forestry division of the energy, minerals and natural resources department for expenditure in fiscal year 2027 to purchase equipment and contract for services to carry out the division's duties pursuant to the Wildfire Utility Mitigation and Liability Act. Any unexpended balance remaining at the end of fiscal year 2027 shall revert to the general fund.

     SECTION 18. EFFECTIVE DATE.--

          A. The effective date of the provisions of Section 9 of this act is January 1, 2027.

          B. The effective date of the provisions of Sections 1 through 8 and 10 through 17 of this act is July 1, 2026.

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