In what has become a sort of legislative tradition, NV Energy is having talks late in the session, this time about wildfire liability.
According to four people with knowledge of the situation, discussions are taking place behind the scenes about addressing the utility company’s liability in wildfires started by its equipment.
It’s a fluid situation and everything is in the early stages, but here’s what we know so far:
Sources familiar with the matter, who spoke on condition of anonymity because conversations are ongoing, said everything is preliminary.
NV Energy declined to comment on the situation.
With wildfires becoming larger and more destructive, utilities have been subjected to significant lawsuits regarding their role in recent destructive fires, while insurers often decline to provide sufficient coverage for the damages.
The discussions come as Western-state utility companies owned by Berkshire Hathaway — which purchased NV Energy a dozen years ago — take efforts to limit what it pays out to victims if its equipment sparked a fire, according to reporting by Politico’s E&E News.
In Utah, Berkshire Hathaway has pushed through legislation that established a ratepayer-financed fund to pay wildfire claims. It has become the company’s “gold standard” legislation that other states are looking to follow, including Wyoming and Idaho, the latter of which passed a bill awaiting the governor’s signature to limit utilities’ liability if they’re in compliance with wildfire mitigation plans.
In January, NV Energy asked state energy regulators to approve a $500 million wildfire self-insurance policy, paid by ratepayers, to protect it in case its equipment starts a blaze. Regulators are set to decide later this year.
In 2019, California established a fund to reimburse claims originating from wildfires started by utility companies participating in the fund. A recent proposal in Arizona would also have amply protected utilities from wildfire-related payouts but was significantly winnowed down.
Which bills have already passed in their first chamber?
We’re now a few days into the initial wave of bills passing out of their chamber, with the first house passage deadline next Tuesday.
So far, dozens of bills have passed out of their first house out of more than 600 bills that passed out of their first committee.
Here are some highlights:
• AJR7, which proposes a commission to determine the pay of legislators and constitutional officers, passed with three Republicans opposed.
Of note: The three opposition votes came from Assms. Ken Gray (R-Dayton), Rich DeLong (R-Reno) and Alexis Hansen (R-Sparks) — two of whom were listed on the measure as sponsors (Hansen and Gray).
• SB293, which would allow Nevada colleges to make direct payments to student athletes for their name, image and likeness. University involvement in compensating athletes is currently prohibited, with payments coming from external sponsoring businesses.
• SB102, the bill to criminalize fake elector schemes and punish them with imprisonment ranging from one to four years, passed with all Republicans opposed.
• SB142, which increases the amount of wages protected from debt collectors from $400 to $850 weekly, passed with all Republicans opposed.
• SB141, a proposal to require local jails to establish standards of care policies for incarcerated people who are transgender, gender non-conforming, nonbinary and intersex, while still giving jails the authority to determine how to adhere to a person’s preferences. All Republicans were opposed.
What else met its demise last week
• AB166, sponsored by Assm. Cinthia Moore (D-North Las Vegas), would have established stricter rules on how much minors can work in a given week, but it never received a hearing. Existing law prohibits the employment of Nevadans younger than 16 for more than 48 hours per week, while the bill would have prohibited anyone younger than 18 from working more than 40 hours weekly.
• SB2 would have subjected collective bargaining proceedings, which are often behind closed doors, between governments and their employees to the open meeting law. The bill, brought on behalf of the controller's office, never received a hearing.
Election bills proposed by Republican legislators never received a hearing, including:
• SB103, from Sen. Lisa Krasner (R-Reno), called for all ballots mailed to an election clerk to be postmarked by the end of early voting, and received before polls close on Election Day.
• AB228, proposed by Assm. Jill Dickman (R-Sparks), would have repealed state laws that require the universal distribution of mail ballots, and restricted people from turning in mail ballots from others who are not members of a voter’s immediate family.
Immigration-related measures, including:
• SB267, proposed by Sen. John Ellison (R-Elko), would have mandated certain cooperation between local law enforcement officials and federal immigration authorities. It also never received a hearing.
• SB415, a bill from the Senate Committee on Growth and Infrastructure to allow for the installation of certain speed and traffic cameras in areas prone to crashes, did not pass despite receiving a hearing. Another measure sponsored by Assm. Selena Torres-Fossett (D-Las Vegas) to establish speed cameras in construction areas did pass out of committee.
Keeping Tabs
• An expansive fiscal analysis by lobbyist Greg Bailor forecasted a dire economic outlook for the state ahead of an Economic Forum meeting in two weeks, where state economists will finalize updated revenue projections that determine how large the state’s upcoming two-year budget can be. Because of budget deficits at the state and local level and lower-than-expected revenues from the tourism industry and state sales tax, Bailor projected a shortfall ranging from $250 million to $500 million.
Cuts and pauses in federal funding — which makes up nearly 30 percent of Nevada’s budget — could also shape the decision-making process. Cannizzaro told The Nevada Independent that if President Donald Trump and congressional Republicans follow through on plans to make significant cuts, it’ll likely force the governor to call the Legislature into a special session later this year and present a plan to cut the state budget.