PUC Initiates Engagement Process for Liability Cap Rulemaking Under Act 258

HONOLULU - The Public Utilities Commission (PUC) is initiating an engagement process to help inform the development of administrative rules required under Act 258, which directs the commission to establish a liability cap framework for economic damages resulting from catastrophic wildfires.

The engagement process is intended to gather perspectives from communities, impacted individuals, advocacy organizations, utilities, insurance stakeholders, policy experts, government agencies and other interested parties across Hawai'i, to help inform future rulemaking discussions and policy considerations.

"This process is intended to support thoughtful and balanced policymaking that reflects Hawai'i's unique needs, risks and long-term resilience goals," said Jon Itomura, chair of the PUC. "Community perspectives, lived experiences and stakeholder input will help inform how the liability cap framework is structured and implemented."

Under Act 258, the Commission is required to establish rules determining the maximum amount an electric utility may be required to pay in economic damages resulting from a catastrophic wildfire, provided the utility is operating in compliance with an approved wildfire mitigation plan.

The rulemaking effort builds on prior analysis, including the state's Wildfire Recovery Fund Study completed in December 2025, which found that utility liability frameworks and long-term recovery funding mechanisms are interconnected and should be considered together when evaluating future policy solutions.

The liability cap framework, established under Act 258, is intended to help balance affordability, accountability, utility stability and long-term resilience. The commission emphasized that the framework under consideration would not eliminate accountability requirements for utilities, which would still be required to comply with wildfire mitigation, safety, operational and reporting obligations established by law and regulation.

The engagement process is focused on prospective policy design and future preparedness and is not intended to revisit or relitigate past wildfire events or ongoing litigation.

Community members and stakeholders are encouraged to provide written input on topics including:

• Liability cap design and structure
• Affordability and electricity rates
• Wildfire mitigation and utility accountability
• Insurance market impacts
• Public trust and community considerations
• Interaction with a potential future Wildfire Recovery Fund
• Long-term resilience and recovery considerations

Written submissions may include supporting documents, analyses, research, data or other materials participants believe may help inform the rulemaking process.

The Commission notes that participants do not need technical expertise to participate and that community experiences and perspectives are valuable to the process.

In addition to written submissions, the Commission will host an optional informational webinar on Friday, May 22, 2026 from 9:15 - 10:30 a.m. via Zoom to provide community members and stakeholders with an overview of the rulemaking process, key concepts related to the liability cap framework, participation guidance, and an opportunity to better understand the engagement and submission process. You can pre-register for the webinar here.

The Commission may conduct additional outreach or engagement opportunities with respondents as the rulemaking process continues to help inform future policy considerations and implementation discussions. This engagement process is intended to complement (not replace) the formal rulemaking process, which will also include public hearings in each county, circulation of draft rules, and additional opportunities for public comment in accordance with applicable requirements.

Community members and stakeholders may access the submission portal and submit written input here.

Additional resources and participation materials - including submission instructions, glossary of key terms, and frequently asked questions (FAQ) - are available on the Commission's Liability Cap Rulemaking webpage. A recording of the webinar will be posted to the webpage following the event on Friday, May 22, 2026.

Questions regarding the engagement or submission process may be directed to [email protected].

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