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 defines key terms such as "qualified utility," "wildfire," and "wildfire mitigation plan," and outlines the responsibilities of utilities in submitting these plans to the Public Utilities Commission or their respective approval authorities. The bill mandates that utilities publish their plans and annual compliance reports, ensuring transparency and accountability. Additionally, it allows the commission to authorize cost recovery for expenses incurred in implementing these plans, thereby encouraging utilities to invest in wildfire prevention measures.

Furthermore, the bill introduces liability limitations for qualified utilities in cases of wildfire-related damages. It establishes a rebuttable presumption that a valid wildfire mitigation plan constitutes reasonable preparation against wildfire risks, and it restricts the conditions under which plaintiffs can recover damages. Specifically, plaintiffs can only seek economic losses and property damages if they can prove substantial non-compliance with the mitigation plan or malicious intent by the utility. The bill also sets a three-year statute of limitations for civil actions related to wildfire damages and clarifies that insurance payments for damages will not affect the insurer's right to subrogation. Overall, the legislation aims to enhance wildfire preparedness while providing legal protections for utilities that adhere to established mitigation protocols.