03/08/2024 01:00 PM House JUDICIARY

               HB 227-ELECTRIC UTILITY LIABILITY                                                                            
                                                                                                                                
2:49:57 PM                                                                                                                    
                                                                                                                                
CHAIR VANCE announced  that the final order of  business would be                                                               
HOUSE BILL NO. 227, "An Act  relating to liability of an electric                                                               
utility  for   contact  between  vegetation  and   the  utility's                                                               
facilities."                                                                                                                    
                                                                                                                                
2:50:32 PM                                                                                                                    
                                                                                                                                
CHAIR VANCE opened public testimony on HB 227.                                                                                  
                                                                                                                                
2:50:50 PM                                                                                                                    
                                                                                                                                
LYNN ELLIOTT,  American Property Casualty  Insurance Association,                                                               
testified  in opposition  to HB  227  because the  bill lacked  a                                                               
vegetation  management  plan.     She  opined  that  an  improved                                                               
vegetation  management plan  unique to  each co-op  and situation                                                               
could  re-balance  the  risk  to  the public  with  the  cost  of                                                               
implementation   and  limit   liability.      In  addition,   she                                                               
recommended adding  a provision to allow  utilities immunity from                                                               
a trespass claim if they identify  a hazard and provide notice to                                                               
the landowner.                                                                                                                  
                                                                                                                                
2:52:57 PM                                                                                                                    
                                                                                                                                
MICHAEL ROVITO, Deputy Director,  Alaska Power Association (APA),                                                               
testified in support of HB 227.   He highlighted the ambiguity in                                                               
the law surrounding the application  of liability when vegetation                                                               
from  outside  the right  of  way  contacts  power lines.    This                                                               
ambiguity has led to costly  lawsuits against utilities even when                                                               
the tree  originates outside  the right of  way, he  said, adding                                                               
that the bill  would establish clear direction to the  court if a                                                               
lawsuit  were  filed  following   damage  caused  by  vegetation.                                                               
Importantly, he stressed that HB  227 would not prevent any party                                                               
from filing  a lawsuit  against a  utility or  insulate utilities                                                               
from  liability.    He  added  that  electric  utilities  already                                                               
operate under robust vegetation  management plans unique to their                                                               
service areas.                                                                                                                  
                                                                                                                                
2:55:24 PM                                                                                                                    
                                                                                                                                
CHRISTIAN  RATAJ,   Senior  Regional  Vice   President,  National                                                               
Association   of  Mutual   Insurance   Companies,  testified   in                                                               
opposition  to HB  227.   He stated  that the  overwhelming trend                                                               
nationally is to promote wildfire  prevention and mitigation, not                                                               
granting  legal immunity  for  any stakeholder.    He shared  his                                                               
understanding  that  nothing  in  the bill  focuses  on  reducing                                                               
wildfire risk and would merely  shift responsibility in liability                                                               
onto  homeowners  and  businesses,   thereby  excusing  the  most                                                               
capable professionals  from doing their  part in prevention.   He                                                               
spoke in favor of providing utilities conditional immunity.                                                                     
                                                                                                                                
2:58:34 PM                                                                                                                    
                                                                                                                                
PHILLIP WEIDNER,  representing self,  testified in  opposition to                                                               
HB 227.   He characterized the bill as a  "free pass" to electric                                                               
utilities  and opined  that the  concept of  immunity is  a great                                                               
danger to  citizens.   He referenced  the McKinley  wildfires and                                                               
said if  the bill were  to pass, it would  disenfranchise victims                                                               
and grant immunity  to Matanuska Electric Association  (MEA).  He                                                               
said the  legislature should not  be in the business  of granting                                                               
immunity to wrongdoers.                                                                                                         
                                                                                                                                
3:01:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY  asked Ms. Elliott  to speak to  the increase                                                               
in homeowners' insurance if the bill were to pass.                                                                              
                                                                                                                                
MS. ELLIOTT  said amending liability  laws to  financially shield                                                               
utilities  would shift  the burden  from one  entity to  another,                                                               
thereby  shifting the  associated cost  of losses  resulting from                                                               
utility involved  ignition to property  owners.  She  stated that                                                               
if  HB 227  were to  pass, homeowners  and small  business owners                                                               
would face unintended consequences and adverse impacts.                                                                         
                                                                                                                                
3:02:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY  asked  why  other states  had  not  adopted                                                               
similar legislation.                                                                                                            
                                                                                                                                
MS. ELLIOTT  said she was not  aware of any other  state that had                                                               
adopted  this kind  of  immunity.   She  explained  that in  most                                                               
states, plaintiffs suing a utility  for wildfire damage must show                                                               
that the utility acted with recklessness or negligence.                                                                         
                                                                                                                                
3:05:27 PM                                                                                                                    
                                                                                                                                
CHAIR VANCE  closed public  testimony on HB  227.   She announced                                                               
that the bill would be set aside.