This bill introduces new legal provisions regarding liability and damages related to wildfires caused by electric utilities in South Dakota. It defines key terms such as "electric utility" and "wildfire," establishing that an electric utility includes any entity that generates electricity at a utility scale or operates an electric transmission facility. The bill specifies that in civil actions alleging wildfire-related damages, strict liability cannot be applied to electric utilities, and punitive damages can only be recovered if the utility acted with malice or criminal intent. Additionally, plaintiffs are limited in their ability to recover noneconomic losses unless they have suffered death or bodily injury due to burns.

Furthermore, the bill outlines the types of damages that can be recovered from electric utilities, focusing on economic losses and property damage. It stipulates that damages for property must be calculated based on the cost to restore the property, the cost to replace its lost use, or the difference in fair market value before and after the wildfire. Importantly, any legal action under this section must be initiated within three years of the wildfire's ignition, and the bill clarifies that it does not limit any defenses that electric utilities may raise in such civil actions.