The proposed "Wildfire Fund Act" establishes a framework for managing financial risks associated with wildfires caused by electric utilities in New Mexico. It creates a dedicated "wildfire fund" to reimburse eligible claims for damages resulting from covered wildfires, financed through a surcharge on electric service collected by participating electric utilities. The act mandates the development of wildfire mitigation plans, which must be approved by a newly appointed administrator with expertise in risk assessment and wildfire management. Additionally, the act establishes the position of a service infrastructure safety engineer and creates a service infrastructure safety bureau within the Public Regulation Commission to oversee the implementation of the act and ensure compliance with safety standards.

The act outlines specific eligibility requirements for electric utilities to access the fund, including the necessity of an approved wildfire mitigation plan and a commitment to collect the appropriate surcharge. It also stipulates that no disbursements from the fund will occur before 2030, with conditions on the fund's balance determining the amount available for disbursement. Furthermore, the act requires annual reporting on the fund's effectiveness and sustainability, as well as recommendations for potential amendments. An appropriation of $2.5 million is allocated from the general fund to support the establishment of the service infrastructure safety engineer and staff.

Statutes affected:
introduced version: 62-19-12