HB 267 New Mexico House · 2026 Regular Session

WILDFIRE UTILITY MITIGATION & LIABILITY ACT

HB 267, the Wildfire Utility Mitigation & Liability Act, requires electric utilities (including cooperatives) to develop and get approval for wildfire prevention plans by August 2026. Utilities must submit detailed plans covering infrastructure maintenance, vegetation management, public safety shutoff procedures, and community outreach, with the Public Regulation Commission reviewing them within 180 days. If a utility follows an approved plan, it receives a compliance certificate that limits its liability for wildfires caused by its equipment and allows cost recovery through special charges on customer bills. The bill also mandates annual compliance reports and creates a statute of limitations for certain wildfire-related lawsuits against utilities.
Bill status died 1 of 4 stages cleared
Introduction
Feb 2026
Committee Review
Floor Vote
Governor
Introduced Feb 6, 2026 Last action Mar 24, 2026
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introduced version EN substitute · 9 edits
MAJOR
This bill introduces the Wildfire Utility Mitigation and Liability Act, creating a new framework for electric utilities to plan and implement wildfire mitigation strategies. The legislation establishes requirements for utilities to submit and comply with mitigation plans, defines how costs can be recovered through utility rates, and sets specific limitations on liability and damages in wildfire-related lawsuits. It also creates a grant program for rural electric cooperatives and amends existing state laws regarding damages for starting fires and statutes of limitation.
Scope change
The bill expands regulatory oversight of electric utilities by requiring them to develop and maintain approved wildfire mitigation plans, while simultaneously providing legal protections and liability limitations for utilities that follow approved plans.
REQUIREMENT

Electric utilities must submit wildfire mitigation plans to the Public Regulation Commission for review and approval, with detailed requirements including service territory mapping, vegetation management standards, and public safety power shutoff procedures.

Utilities may recover costs for approved mitigation plans through permanent riders on electricity bills, subject to annual true-up accounting and Commission approval.

FISCAL

Two new appropriations totaling $2.25 million are created: $1.5 million for the Public Regulation Commission and $750,000 for the Forestry Division to support plan review and implementation oversight.

ELIGIBILITY

A new grant program provides up to $1 million per year to rural electric cooperatives for wildfire mitigation plan implementation, prioritized by anticipated wildfire risk reduction.

DEFINITION

New definitions established including 'public safety power shutoff,' 'qualified wildfire civil action,' and 'wildfire,' which must originate from unplanned ignition or receive an emergency declaration.

ENFORCEMENT

Utilities must submit annual compliance reports, and the Commission can issue certificates of compliance or notices of noncompliance, with potential revocation of compliance status for failures to take corrective action.

Liability limitations include a rebuttable presumption that certified compliance proves reasonable preparation, caps on noneconomic damages at $500,000 per plaintiff, and prohibition of punitive damages in qualified wildfire civil actions.

TIMELINE

Mitigation plan submission begins August 1, 2026, with Commission rulemaking required by October 1, 2027, and qualified wildfire civil actions must be brought within one calendar year of fire ignition.

SCOPE

Existing statutes on damages for starting fires and general statutes of limitation are amended to create exceptions for qualified wildfire civil actions against electric utilities.

Floor votes

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Full legislative history

Actions timeline

Total actions
5
Key actions
2
Committee
2
Feb 12, 2026
Lower · Passed
DO NOT PASS, replaced with committee substitute
lower
Feb 6, 2026
Introduced
Sent to House Energy, Environment and Natural Resources Committee & House Appropriations & Finance Committee
lower
Jan 30, 2026
Lower · Passed
not printed House Rules and Order of Business Committee
lower
2 primary · 0 co-sponsors

Sponsors