This bill establishes a framework for utilities in South Dakota to create and implement wildfire mitigation plans, which are essential for reducing the risk of wildfire-related damages. It introduces definitions for key terms such as "qualified utility," "wildfire," and "wildfire mitigation plan," and outlines the responsibilities of both the Public Utilities Commission and local approval authorities in reviewing and approving these plans. Utilities must submit their plans along with a filing fee, and they are required to provide annual reports on their compliance with the plans. The bill also mandates that these plans include specific strategies for risk assessment, vegetation management, and community outreach.

Additionally, the bill limits the liability of qualified utilities in cases of wildfire-related damages, establishing a standard of strict liability that cannot be applied against them. It specifies that plaintiffs can only recover economic losses under certain conditions and sets a three-year statute of limitations for filing civil actions related to wildfire damages. The bill also allows utilities to recover costs associated with implementing their wildfire mitigation plans through rate adjustments, while providing protections against punitive damages unless malice or criminal intent is proven. Overall, the legislation aims to enhance wildfire preparedness while providing legal protections for utilities.