The bill establishes new provisions regarding the liability of electric public utilities for damages resulting from fire events. It defines key terms such as "fire claim" and "fire event," and stipulates that claims must be filed within two years of the fire's ignition. If a plaintiff successfully demonstrates that their loss was due to a fire event caused by the utility's conduct, they may recover economic damages for property loss. The bill also sets limits on the amount of damages recoverable for real property, specifying that the award will be the lesser of the restoration cost or the difference in fair market value before and after the fire. Additionally, punitive damages are capped at $5,000,000.

Furthermore, the bill mandates that the state corporation commission provide training on wildfire risk and mitigation by July 31, 2026. This training will cover general wildfire risks, utility preparedness, risk mitigation strategies, and cost recovery for wildfire mitigation expenses. The intent of the bill is to enhance accountability for electric public utilities in the event of fire-related damages and to improve overall preparedness and response to wildfire risks in the state.