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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB145

Regular Session

Relating to risk mitigation planning and associated liability for providers of electric service; providing an administrative penalty.

Government Affairs & Regulatory Compliance Analysis

HB145: Government Affairs Overview

Effective June 20, 2025, HB145 mandates that all electric utilities, municipally owned utilities, and electric cooperatives operating in "wildfire risk areas" submit comprehensive Wildfire Mitigation Plans (WMP) to the PUC. This legislation creates a critical trade-off: entities that strictly adhere to their approved WMP are granted a statutory affirmative defense against liability for wildfire damages; those that fail to file or comply face administrative penalties and unlimited liability exposure.

Rep. Ken King·House Bill·Regular Session

Critical
High Cost
Effective:2025-06-20
Business Impact

Who HB145 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: critical

Significant regulatory changes (effective 2025-06-20). Review with your legal and compliance teams to understand implications.

🏦

Banking & Finance

Affected business types:

  • Banks
  • Credit unions
  • Financial services firms
  • Insurance companies
View all banking & finance legislation
⚡

Energy

Affected business types:

  • Power generators
  • Electric utilities
  • Renewable energy developers
  • Battery storage operators
View all energy legislation

Key Operational Considerations

  • 1Pole Attachments: Review attachment agreements. Ensure third-party equipment does not interfere with your ability to execute the WMP, as the statute preserves existing contract rights.
  • 2De-Energization Protocols: Control room staff require immediate training on new Public Safety Power Shut-off (PSPS) procedures and recloser disablement protocols.

Estimated Cost Impact

highSignificant operational investment may be required.

Enforcing Agencies

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HB145
Relating to risk mitigation planning and associated liability for providers of electric service; providing an administrative penalty.
Critical Urgency
Passed with Opposition
House Vote131 - 8
YEA
94% in favor139 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
8
Total Opposition Votes
Cost Impact
High
Effective
2025-06-20
Enforcing Agencies
PUCTDEM
Primary Author: Rep. Ken King
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Immediate application for liability provisions).
  • Agency Rulemaking: The Public Utility Commission (PUC) must adopt implementation rules by December 17, 2025 (180 days post-enactment).
  • Compliance Deadline: WMPs must be filed "as soon as practicable" following the adoption of PUC rules. Expect a filing deadline in Q1 2026. However, data collection and expert retention must begin immediately to meet this window.

Immediate Action Plan

  • Map Your Territory: Immediately direct GIS/Engineering to identify high-risk wildfire areas within your service territory to anticipate the scope of your WMP.
  • Gap Analysis: Compare your current wildfire protocols against the 10 statutory requirements in Section 38.080(b).
  • Secure Experts: Issue RFPs for independent fire risk mitigation experts immediately to avoid the end-of-year bottleneck.
  • Update Vendor Contracts: Amend vegetation management contracts to align performance metrics strictly with anticipated WMP standards.

Operational Changes Required

Contracts

  • Vegetation Management MSAs: Review all Master Service Agreements with tree-trimming vendors immediately. Your statutory liability shield depends on "strict compliance" with your vegetation plan. Contracts must mandate adherence to WMP specifications and include indemnification clauses if vendor negligence voids your liability protection.
  • Independent Expert Retainers: You must contract with an "independent expert in fire risk mitigation" to analyze your plan prior to submission. Secure these vendors now; demand will exceed supply in Q3/Q4 2025.
  • Pole Attachments: Review attachment agreements. Ensure third-party equipment does not interfere with your ability to execute the WMP, as the statute preserves existing contract rights.

Hiring/Training

  • De-Energization Protocols: Control room staff require immediate training on new Public Safety Power Shut-off (PSPS) procedures and recloser disablement protocols.
  • Community Liaison: Designate specific personnel responsible for the mandatory community outreach and first-responder coordination required by the WMP.

Reporting & Record-Keeping

  • The 10-Point WMP: You must compile a plan containing 10 statutory components, including vegetation management, infrastructure inspections, and restoration procedures.
  • Compliance Audits: Establish an internal audit trail. To claim the liability defense in court, you must produce records proving you were in compliance with your plan at the time of ignition.
  • Self-Insurance Petitions: If commercial insurance is cost-prohibitive, prepare data to petition the PUC for self-insurance authority under amended Section 36.064.

Fees & Costs

  • Consulting Fees: Budget for high-cost independent expert analysis required for the WMP.
  • Administrative Penalties: Failure to file or follow the plan triggers Chapter 15 Utilities Code penalties (typically up to $25,000 per violation, per day).
  • Operational Increases: Expect significant budget increases for vegetation management to meet the "strict compliance" standard in designated risk areas.

Strategic Ambiguities & Considerations

  • "Wildfire Risk Area" Definition: The statute allows TDEM or the utility to define these areas. If TDEM defines these broadly in upcoming rules, your vegetation management obligations—and costs—will expand significantly.
  • "Strict Compliance" Standard: The liability shield requires strict compliance with the WMP. It is currently unclear if a minor deviation (e.g., a single missed inspection) voids the entire liability shield. We must advocate for a "substantial compliance" standard during the PUC rulemaking comment period.
  • Expert Qualifications: The law requires an "independent expert" but does not define the credentials. The PUC will likely set these standards in the December rules.

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JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 6, 2025
Passed House
Apr 25, 2025
Passed Senate
May 26, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsCivil Remedies & LiabilitiesDisaster Preparedness & ReliefInsuranceInsurance--generalUtilitiesUtilities--electricFire Safety & PreventionEmergency Management, Texas Division ofPublic Utility CommissionCity GovernmentCity Government--utilitiesInsurance--property & CasualtyCommunications & Press
03

House Authors

Rep. Ken KingRepublican · Primary Author
Coauthors (1)

Senate Sponsor

Sen. Charles SchwertnerRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Ken King

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Related by Topic

View more Civil Remedies & Liabilities legislation
Quick Reference

Frequently Asked Questions

Common questions about HB145

Q

What does Texas HB145 do?

Effective June 20, 2025, HB145 mandates that all electric utilities, municipally owned utilities, and electric cooperatives operating in "wildfire risk areas" submit comprehensive Wildfire Mitigation Plans (WMP) to the PUC. This legislation creates a critical trade-off: entities that strictly adhere to their approved WMP are granted a statutory affirmative defense against liability for wildfire damages; those that fail to file or comply face administrative penalties and unlimited liability exposure.

Q

Who authored HB145?

HB145 was authored by Texas Representative Ken King during the Regular Session.

Q

When was HB145 signed into law?

HB145 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB145?

HB145 is enforced by Public Utility Commission of Texas (PUC) and Texas Division of Emergency Management (TDEM).

Q

How significant are the changes in HB145?

The regulatory priority for HB145 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB145?

The cost impact of HB145 is estimated as "high". This may vary based on industry and implementation requirements.

Q

What topics does HB145 address?

HB145 addresses topics including civil remedies & liabilities, disaster preparedness & relief, insurance, insurance--general and utilities.

Q

What are the key dates for HB145?

Key dates for HB145: Effective date is 2025-06-20. Rulemaking: Adopt rules necessary to implement self-insurance provisions and wildfire mitigation plan requirements (180 days after effective date). (2025-12-17); Issue an order approving, modifying, or rejecting a submitted Wildfire Mitigation Plan. (180 days after plan filing). Consult with legal counsel regarding applicability.

Q

What are the penalties under HB145?

HB145 establishes the following penalties: administrative penalty of Per Chapter 15, Utilities Code (typically up to $25,000 per violation per day) for Failure to implement a PUC-approved Wildfire Mitigation Plan.. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by HB145?

HB145 primarily affects insurance companies and financial institutions, utility companies and energy providers, property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026