HB 334 — RURAL ELECTRIC CO-OP WILDFIRE LIABILITY ACT

u [ (3) a description of the plan's mitigation .229738.1 - 4 - measures, including modifications to facilities, and preventative programs that the electric cooperative is implementing to reduce the risk of the electric cooperative's h equipment igniting a wildfire, including pole and right-of-way u » r inspections;

t h g e l i (4) the factors that the electric cooperative h r i s considered to balance the components of the plan with the need h , e h to provide continuous electricity service to the electric t u g e b l e e , gh cooperative's service area and the costs and feasibility;

and n d d i = = o h (5) the potential impact of the plan's l ] b ,d i a º r mitigation measures on public safety, first responders and e r = t e w d m a n o health and communication infrastructure.

SECTIONd 4.m :

b r e t º o t n = .229738.1AIC February 20, 2025 (12:56pm) s k m e - 5 - e a n e d r e l u [ A d SECTION 4.

An electric cooperative's plan shall be effective for fiveHRDLCº five»HRDLC HRDLCºthree»HRDLC years upon the date of approval by the e t 17 commission.

An electric cooperative shall update and resubmit w l n d 18 its plan for approval by the commission at the end of each =subsequent =HRDLCº 19five- ayear»HRDLC lHRDLCºthree-year»HRDLC subsequent five-year period following the initial approval by i a e r 20 the commission.

a t m m 21 B.

An electric cooperative shall submit its plan to d r e 22 the division for review and recommendations priorHRDLCº toduring submittinga cperiod estarting son kNovember 231 of each year and ending on February 28 of the following year and»HRDLC prior to submitting the plan to the commission for approval.

e a n b 24 C.

An electric cooperative shall include the review u [ and recommendations of its plan from the division in its .229738.1h - 5 - submission of the plan to the commission;

provided that, when g o t hr the electric cooperative has not received a response from the g e i k division within forty-fiveHRDLCº forty-five»HRDLC HRDLCºsixty»HRDLC days h r i s of submitting its plan for review, the electric cooperative may h , t, e u g submit the plan to the commission without the division's e b l e e h review.

n d d i = = o h D.

The commission shall approve or reject a plan l ] b ,d i a º e r i = r within forty-fiveHRDLCº forty-five»HRDLC HRDLCºsixty»HRDLC days of t e w d m a n o submission of a plan pursuant to this section.

When a plan has notd beenm approved: or rejected by commission, the plan is approved as a matter of law.

b e d s º o t n = .229738.1AIC February 20, 2025 (12:56pm) s k m e - 6 - e a n e d r e l u [ A d not been approved or rejected by commission, the plan is approved as a matter of law.

Within thirty days of receiving approval of a plan, an electric cooperative shall post a non-confidential e t 17 version of the plan that excludes elements that would w l n d 18 compromise the security of its electric system on its website = = 19 a l in a clearly identifiable and accessible manner.

i a e r 20 SECTION 5.

[NEW MATERIAL]MATERIAL ] ANNUAL REPORT--PUBLIC NOTICE.-- a t m m 21 On July 1, 2026 and on July 1 of each subsequent year, an d r e 22 electric cooperative shall post a report on the electric c e s k 23 cooperative's plan on the electric cooperative's website in a e a n b 24 clearly identifiable and accessible manner.

The report shall uh [ include a description of the electric cooperative's compliance .229738.1g -o 6t -hr with the plan, modifications or updates that have been made to g e i k the plan and the plan's approval status pursuant to the Rural h r i s Electric Cooperative Wildfire Liability Act.

h , t, SECTION 6.

[NEW MATERIAL]MATERIAL ] WILDFIRE MITIGATION PLAN e u g e b l e e h APPROVAL--EFFECT ON LIABILITY--RECOVERY FOR LOSS.-- n d d i = = o h A.

In a civil action or claim made against an electricl cooperative,] uponb providing,d proofi thata theº e electric cooperative'scooperative, planupon hasproviding beenproof approved by the commission and that its annual reports adhere to the requirementselectric asr seti forth= inr Sectiont 5e ofw thed Ruralm Electrica Cooperativen Wildfireo Liabilitycooperative's Act,plan orhas thatbeen the electric cooperative was denied the ability to comply with an approved plan by a federal agency, landowner, member of the electriccommission cooperative,and statethat ord tribalm government,: the electric cooperative is:

(1)b presumede tod haves reasonablyº ando prudentlyt preparedn for= and.229738.1AIC mitigatedFebruary 20, 2025 (12:56pm) s k m e - 7 - e a n e d r e l u [ A d its annual reports adhere to the riskrequirements ofas wildfireset forforth in Section 5 of the eRural tElectric 17Cooperative Wildfire Liability Act, or that the electric cooperative'scooperative was denied the ability to comply with an approved plan by a federal agency, landowner, member of the electric systemcooperative, andstate operations;or tribal government, the electric cooperative is:

w(1) lpresumed nto dhave 18reasonably (2)and exemptprudently fromprepared liability for lossesand resultingmitigated =the =risk 19of awildfire lfor fromthe aelectric wildfire;cooperative's electric system and operations;

and(2) iexempt afrom eliability r 20 (3) not liable for failurelosses toresulting implementfrom a awildfire; t m m 21 public safety power shutoff policy unless one is mandated by d r e 22 the commission.

cand e(3) snot kliable 23for B.failure to implement a public safety power shutoff policy unless one is mandated by the commission.

AB. plaintiff may recover economic losses or e a n b 24 noneconomic losses from an electric cooperative as a result of u [ a wildfire when the plaintiff demonstrates, by a showing of .229738.1 - 7 - clear and convincing evidence, that an origin and cause investigation conducted by a national wildfire coordination group or wildland fire investigator certified pursuant to federal law has determined that:

(1)A theplaintiff causemay recover economic losses or noneconomic losses from an electric cooperative as a result of theh a wildfire iswhen the plaintiff demonstrates, by a powerlineshowing of u » r clear and convincing evidence, that an origin and cause t h g e l i investigation conducted by a national wildfire coordination h r i s group or relatedwildland infire anyinvestigator waycertified pursuant to theh electric, cooperative'se equipmenth orfederal operations;law has determined that:

(2)t theu electricg cooperative'se conductb intentionallyl sete thee wildfire, orgh intentionally(1) causedthe cause of the wildfire tois bea setpowerline whilen knowingd thatd toi do= so= waso wrongh andor thatrelated harmin any way to othersthe mightelectric becooperative's theequipment result;l ] b ,d i a º r or operations;

e r = t e w d m a n o (2) the electric cooperative's conduct d m :

b r e t º o t n = .229738.1AIC February 20, 2025 (12:56pm) s k m e - 8 - e a n e d r e l u [ A d intentionally set the wildfire or intentionally caused the wildfire to be set while knowing that to do so was wrong and that harm to others might be the result;

[NEW MATERIAL]MATERIAL ] LIMITATIONS--FILING CLAIMS-- DAMAGE AWARDS.-- e t 17 A.

A claim against an electric cooperative for loss w l n d 18 resulting from a wildfire shall be filed in district court = = 19 a l within two years after the date of ignition of the fire or it i a e r 20 shall be forever barred.

a t m m 21 B.

A plaintiff in a civil action against an d r e 22 electric cooperative for loss due to a wildfire, or the estate c e s k 23 thereof, may recover for:

e a n b 24 (1) economic loss;

and uh [ (2) noneconomic loss to the extent that the .229738.1g -o 8t -hr noneconomic loss is due to death or bodily injury resulting g e i k from a burn.

A claim for noneconomic loss resulting from a h r i s burn shall be denied unless the plaintiff submits to the court h , t, a diagnosis in writing by a medical provider that the burn is e u g e b l e e h the result of the wildfire that serves as the basis of claim.

n d d i = = o h C.

A state agency or a fire response agency that l ] b ,d i a º e incurs costs to suppress a wildfire may file a suit in district r i = r t e w d m a n o court to reclaim the incurred costs pursuant to the limitations ond liabilitym in: the Rural Electric Cooperative Wildfire Liability Act.

b e d s º o t n = .229738.1AIC February 20, 2025 (12:56pm) s k m e - 9 - e a n e d r e l u [ A d on liability in the Rural Electric Cooperative Wildfire Liability Act.

[NEW MATERIAL]MATERIAL ] NO LIMIT ON DEFENSES.--Nothing e t 17 in the Rural Electric Cooperative Wildfire Liability Act shall w l n d 18 limit the defenses that an electric cooperative may be entitled = = 19 a l to raise in an action for damages caused by wildfire.

i a e r 20 SECTION 9.

Section 30-32-4 NMSA 1978 (being Laws 1882, a t m m 21 Chapter 61, Section 7, as amended) is amended to read:

d r e 22 "30-32-4.

DAMAGES TO PERSON INJURED.--Except for an c e s k 23 electric cooperative operating pursuant to a wildfire e a n b 24 mitigation plan approved pursuant to the Rural Electric uh [ Cooperative Wildfire Liability Act, if a person sets on fire .229738.1u -» 9r - any woods, marshes or prairies, whether the person's own or t h g e l i not, so as thereby to occasion damage to another person or that h r i s person's property, the person shall make satisfaction in double h , e h damages to the party injured to be recovered by civil action, t u g e b l e e , gh unless the person is conducting a prescribed burn pursuant to n d d i = = o h the Prescribed Burning Act." l ] b ,d i a º r SECTION 10.

Section 37-1-4 NMSA 1978 (being Laws 1880, e r = t e w d m a n o Chapter 5, Section 4, as amended) is amended to read:

"37-1-4.d m :

b r e t º o t n = .229738.1AIC February 20, 2025 (12:56pm) s k m e - 10 - e a n e d r e l u [ A d "37-1-4.

Those] Excepting actions brought against an electric cooperative for damages due to wildfire pursuant to the Rural Electric Cooperative Wildfire Liability Act, actions founded upon accounts and unwritten contracts, [those][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][herein ] otherwise provided e t 17 for in Chapter 37, Article 1 NMSA 1978 and specified shall be w l n d 18 brought within four years." = = 19 a l SECTION 11.

EFFECTIVE DATE.--The effective date of the i a e r 20 provisions of this act is July 1, 2025.

a- t11 m- mh 21u -» 10r -t dh g e l i h r i s h , e 22h ct u g e sb kl 23e e a, gh n d d i = = o h l ] b 24,d ui [a .229738.1º r e r = t e w d m a n o d m :

b r e t º o t n = .229738.1AIC February 20, 2025 (12:56pm) s k m e e a n e d r e l u [ A d