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 83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session
+A-Engrossed
 Senate Bill 1553
-Sponsored by Senators GIROD, PROZANSKI, Representative GOMBERG (Presession filed.)
+Ordered by the Senate February 19
+Including Senate Amendments dated February 19
+Sponsored by Senators GIROD, PROZANSKI, Representative  GOMBERG; Senator MANNING JR (Presession filed.)
 SUMMARY
 The following summary  is not prepared by the sponsors of the measure and is not a part of the body thereof subject
 to consideration by  the Legislative Assembly. It is an editor’s brief statement of the essential features of the
-measure as introduced. The statement includes a measure digest written in compliance with applicable readability
-standards.
+measure. The statement includes a measure digest written in compliance with applicable readability standards.
 Digest: Bans the recoupment of certain costs that a power company incurs from claims based
 on a wildfire. (Flesch Readability Score: 65.1).
 Prohibits an electric company from recovering from retail electricity consumers  certain liti-
@@ -33,25 +32,26 @@
 Requires an electric company that has been  found to be liable for damages in a civil action
 arising out of allegations that  the conduct of the electric company caused or substantially contrib-
 uted to a wildfire to establish and maintain a qualified escrow fund for the benefit  of those persons
-the electric company is found to be liable.
+to whom the electric company is found to be liable.
 Provides that an electric company that is found to be liable  for damages in a civil action arising
 out of allegations that the conduct of the electric company caused or substantially  contributed to
 a wildfire shall  also be liable for any federal income tax liability that a plaintiff or class member
 owes or pays on amounts the plaintiff or class member receives in relation to the civil action.
-Provides jurisdiction to the Supreme Court to hear and  determine all appeals from the circuit
-court in any civil action arising out of allegations that the conduct of the  electric company caused
-or substantially contributed to a wildfire.
-Establishes the Wildfire Recovery Fund. Directs  that 60 percent of the punitive damages
-awarded in a civil action arising out of allegations that  the conduct of the electric company caused
-or substantially contributed to a wildfire be deposited in  the Wildfire Recovery Fund. Reserves the
-first $50 million deposited in the fund to be payable to the Criminal Injuries Compensation Account.
+[Provides jurisdiction to the Supreme Court to hear and determine all appeals  from the circuit
+court in any civil action arising out of allegations that the conduct of the electric company  caused or
+substantially contributed to a wildfire. ]
+Establishes the Wildfire Recovery Fund , to become operative January 1,  2027. Directs that
+60 percent of the punitive  damages awarded in a civil action arising out of allegations that the
+conduct of the electric company caused or substantially contributed to  a wildfire be deposited in the
+Wildfire Recovery Fund. Reserves  the first $50 million deposited in the fund to be payable to the
+Criminal Injuries Compensation Account.
 Applies to wildfires ignited on or after January 1, 2020, and before January 1, 2025.
 Declares an emergency, effective on passage.
 A BILL FOR AN ACT
 Relating to wildfires resulting from the fault of an electric company; and declaring an emergency.
 Be It Enacted by the People of the State of Oregon:
 SECTION 1.
-Sections 2 and 3 of this 2026 Act are added to  and made a part of ORS
+Sections 2 and 3 of  this 2026 Act are added to and made a part of ORS
 chapter 757.
 SECTION 2. Litigation-related costs and expenses. (1) As used in this section:
 (a) “Electric company” means an  electric company, as defined in ORS 757.600, that serves
@@ -60,17 +60,14 @@
 (2) If a court or jury finds that a wildfire resulted from the negligence  or a higher degree
 of fault on the part  of an electric company, the electric company may not recover from retail
 electricity consumers the following costs and expenses:
-(a) Costs and expenses that are, or are associated with,  a civil judgment, civil fine or
+(a) Costs and expenses that are, or  are associated with, a civil judgment, civil fine or
 penalty or criminal fine or penalty that results from  or is based on the finding that the
-wildfire resulted from the negligence or a higher degree of fault on  the part of the electric
+wildfire resulted from the negligence or  a higher degree of fault on the part of the electric
 company.
-(b) Costs and expenses that are, or are associated with, a settlement that is based on:
-(A) The underlying  allegations that there are losses, expenses or damages caused by the
-wildfire that resulted from the negligence or a  higher degree of fault on the part of the
 NOTE: Matter in  boldfaced type in an amended section is new;  matter [ italic and bracketed] is existing law to be omitted.
 New sections are in  boldfaced type.
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+(b) More than one-half  of the amount of the costs and expenses that are, or are associ-
+ated with, a settlement that is based on:
+(A) The underlying  allegations that there are losses, expenses or damages caused by the
+wildfire that resulted from the negligence or a  higher degree of fault on the part of the
 electric company; or
 (B) The finding that the wildfire resulted from the negligence or a  higher degree of fault
 on the part of the electric company.
@@ -135,20 +136,20 @@
 actions arising  out of allegations that the conduct of the electric company caused or sub-
 stantially contributed to a wildfire, the Public Utility Commission  shall require the electric
 company:
-(a) To establish and maintain a qualified escrow fund for the benefit of those persons that
-the electric company is found to be liable in the civil action or actions; and
+(a) To establish and maintain a qualified escrow fund for the  benefit of those persons to
+whom the electric company is found to be liable in the civil action or actions; and
 (b) To execute a qualified escrow agreement that has been  reviewed and approved by the
 commission.
-(3) The commission may:
-(a) Establish a minimum amount that the electric company  shall maintain in the quali-
-fied escrow fund as necessary to ensure the electric company’s  ability to satisfy all judg-
+(3) The commission shall:
+(a) Establish a minimum amount that  the electric company shall maintain in the quali-
+fied escrow fund as necessary to  ensure the electric company’s ability to satisfy all judg-
 ments that may result from the civil action or actions;
-(b) Require the electric company  to place all or part of any proceeds from any sale of
+(b) Require the electric company to place all or part of any proceeds  from any sale of
 property or assets located in this state in the qualified escrow fund; and
-(c) Prohibit the electric company from accessing or  directing the use of the escrowed
+(c) Prohibit the electric company from accessing  or directing the use of the escrowed
 funds except to satisfy any judgment amounts that result from the civil action or actions.
-(4) Upon the satisfaction of all judgments that may  result from the civil action or
-actions, the commission shall  allow the electric company to close the qualified escrow fund
+(4) Upon the satisfaction of all judgments  that may result from the civil action or
+actions, the commission shall allow the electric company to close the  qualified escrow fund
 and recover any remaining amounts in the qualified escrow fund.
 (5) In carrying out this section, the commission shall balance the electric company’s ob-
 ligation to provide adequate service to its customers and its ability to  satisfy any judgments
@@ -158,13 +159,9 @@
 (a) “Electric company” means an  electric company, as defined in ORS 757.600, that serves
 more than 25,000 retail electricity consumers located in this state.
 (b) “Retail electricity consumer” has the meaning given that term in ORS 757.600.
-(2) In a civil action arising out of allegations that the conduct of an electric  company
-caused or substantially contributed to a wildfire, an electric  company that has been found
-to be liable for damages to a plaintiff or class member shall also be liable for any federal
-income tax liability for any tax years that is imposed on any amounts  received by the
-plaintiff or class member in relation to the  civil action and that the plaintiff or class member
+(2) In  a civil action arising out of allegations that the conduct of an electric company
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+caused or substantially contributed to a  wildfire, an electric company that has been found
+to be liable for damages to a plaintiff or class member shall also be liable for any federal
+income tax liability for  any tax years that is imposed on any amounts received by the
+plaintiff or class member in relation to the  civil action and that the plaintiff or class member
 owes or pays.
 SECTION 5.
-Direct appeal to Supreme Court. (1) As used in this section:
-(a) “Electric company” means an  electric company, as defined in ORS 757.600, that serves
-more than 25,000 retail electricity consumers located in this state.
-(b) “Retail electricity consumer” has the meaning given that term in ORS 757.600.
-(2) Any appeal of a judgment, order or decision of the circuit court for a civil action
-arising out of allegations that the  conduct of an electric company caused or substantially
-contributed to a wildfire shall be directed to the Supreme Court.
-(3) Jurisdiction is vested in the Supreme Court to hear and determine all appeals  from
-judgments, orders and decisions of a circuit court for any  civil action arising out of
-allegations that the conduct of an electric company caused or substantially contributed  to a
-wildfire.
-(4) An appeal taken under this section shall be  within the time and in the manner spec-
-ified in ORS chapter 19 for civil appeals to the Court of Appeals.  Any party filing a notice
-of appeal under this section must note in the notice of appeal that the case is subject to this
-section.
-SECTION 6.
 Punitive damages. (1) As used in this section:
 (a) “Electric company” means an  electric company, as defined in ORS 757.600, that serves
 more than 25,000 retail electricity consumers located in this state.
@@ -236,7 +221,7 @@
 conduct of an electric company caused or  substantially contributed to a wildfire, upon the
 entry of a verdict that includes an award of punitive damages:
 (a) Sixty percent of the punitive damage portion of the award is payable to the State  of
-Oregon for deposit in the Wildfire Recovery Fund established under  section 7 of this 2026
+Oregon for deposit in the Wildfire Recovery Fund established under  section 6 of this 2026
 Act. The remaining amount of the punitive damage portion of the award shall be allocated
 as provided in ORS 31.735 (1)(a) and (c).
 (b) The Department of Justice and the State of Oregon become judgment creditors as to
@@ -257,55 +242,48 @@
 (4) and subsection (2) of this section, unless  all affected parties, including the Department
 of Justice, expressly agree otherwise, or unless that application is  contrary to the express
 terms of the judgment.
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-SECTION 7.
+SECTION 6.
 Wildfire Recovery Fund. (1) The Wildfire Recovery Fund is established in the
 State Treasury  separate and distinct from the General Fund. Interest earned by the Wildfire
 Recovery Fund shall be credited to the fund. The Wildfire Recovery Fund consists of moneys
-deposited in the fund pursuant to section 6 of this 2026  Act and may include moneys appro-
+deposited in the fund pursuant to section 5 of this 2026  Act and may include moneys appro-
 priated, allocated, deposited or transferred  to the fund by the Legislative Assembly or oth-
 erwise and interest earned on moneys in the fund.
 (2) The first $50 million that is deposited in the Wildfire Recovery Fund pursuant to
-section 6 of this 2026 Act is payable  to the Attorney General for deposit in the Criminal In-
+section 5 of this 2026 Act is payable  to the Attorney General for deposit in the Criminal In-
 juries Compensation Account of the Department of Justice Crime Victims’ Assistance Sec-
 tion, and may be used only for the purposes set forth in ORS chapter 147.
 (3) The Oregon Department of Administrative Services shall:
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 (a) Administer the Wildfire Recovery Fund; and
 (b) Transfer any moneys in the fund that is payable  to the Attorney General under sub-
 section (2) of this section  to the Attorney General for deposit in the Criminal Injuries Com-
 pensation Account of the Department of Justice Crime Victims’ Assistance Section.
-SECTION 8.
-Applicability. Sections 2 to 6 of this 2026 Act apply to wildfires that are ig-
+SECTION 7.
+Applicability. Sections 2 to 5 of this 2026 Act apply to wildfires that are ig-
 nited on or after January 1, 2020, and before January 1, 2025.
-SECTION 9. Captions. The section captions used in  this 2026 Act are provided only for
+SECTION 8. Captions. The section captions used in  this 2026 Act are provided only for
 the convenience of the reader and  do not become part of the statutory law of this state or
 express any legislative intent in the enactment of this 2026 Act.
-SECTION 10. Effective date. This 2026 Act being  necessary for the immediate preserva-
-tion of  the public peace, health and safety, an emergency is declared to exist, and this 2026
+SECTION 9. Operative date. Sections 5 and 6 of this 2026 Act become  operative on Jan-
+uary 1, 2027.
+SECTION 10. Effective date. This 2026 Act being necessary for the immediate preserva-
+tion of the public peace, health and safety, an emergency is declared to exist, and this  2026
 Act takes effect on its passage.
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