Establishment of the federal wildfire relief fund

(a)

In General

The Administrator of the Federal Emergency Management Agency shall establish and carry out a Federal Wildfire Relief Fund, under which the Administrator shall ensure—(1)The adjudication of claims for compensation for damage by a qualifying wildfire under subsections (d), (e), and (f);(2)Compensation is provided in accordance with subsections (d), (e), and (f); and(3)Review, periodically and after the occurrence of a catastrophic wildfire, of the compliance of electric utilities (as defined by section 3(4) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602(4))) seeking to access the Electricity Transmission Liability Shield.(b)

Claims for qualifying wildfires

(1)

Authority of Administrator

The Administrator shall, on behalf of the United States, investigate, consider, ascertain, adjust, determine, grant, deny, or settle any claim for money damages asserted by structure owners, insurers, and covered utilities.(2)

Independent Claims Manager

Upon a determination by the Administrator that a particular wildfire qualifies as a catastrophic wildfire, the Administrator may appoint an independent claims manager to determine the appropriate compensation for each claim arising from such catastrophic wildfire and to distribute compensation.(c)

Covered utility compliance with a federal wildfire mitigation plan or state approved wildfire mitigation plan

To qualify for compensation under this Act, the Administrator shall determine whether a claimant meets the following requirements:(1)

Federal or State Approved Wildfire Mitigation Plans

The covered utility for which compensation is being sought was in compliance with State approved wildfire mitigation plans or a Federal wildfire mitigation plan established under subsection (i).(2)

Adequate Insurance

The damaged structure for which compensation is being sought was adequately insured for not less than 50 percent of the value of the structure. (d)

Compensation of structure owners

(1)

Verification process

The Administrator shall establish a process for the verification of structure damage, insurance coverage, and other relevant information.(2)

Claim Amount

The amount of each claim shall not exceed the amount of the total structure, less—(A)the amount awarded to a structure owner for such damages by a State wildfire recovery fund; and(B)the amount awarded to a structure owner for such damage by a private insurer or covered utility.(3)

Compensation limits

Structure owners shall be compensated up to 25 percent of their uninsured losses, subject to a 50 percent maximum of their insured losses up to $1,000,0000.(4)

Deadline for Compensation

Not later that 180 days after the date on which a claim is submitted under this Act, the Administrator shall determine and fix the amount of compensation, if any, to be paid for the claim.(5)

Advance payments

At the request of a claimant, the Administrator may make 1 or more advance or partial payments before the final settlement of a claim, subject to a preliminary approval and a requirement that repayment shall be required if the claim is rejected. (e)

Compensation of insurers

An insurer of any structure owner receiving compensation under this section may receive compensation of up to 10 percent of the insurer’s losses on insured structures meeting Federal or State approved wildfire mitigation plans under subsection (c).(f)

Compensation of Covered Utilities

(1)

Recovered

A covered utility servicing any structure receiving compensation under this section may receive compensation from the Fund of such amount as the Administrator determines for the losses incurred by the covered utility for the payment of structure owner claims.(2)

Limitation to certain claimants

Compensation authorized under this subsection shall not exceed 10 percent of the value of the covered utility’s gross assets.(g)

Voluntary Participation

(1)

In general

Participation in and receipt of compensation from the Fund shall be voluntary for structure owners and covered utilities.(2)

Waiver of Claims

To receive compensation under this section, structure owners or insurers shall be required to waive claims against a covered utility in regards to damages stemming from the unique catastrophic wildfire event.(h)

Limitation of liability

Subject to compliance with Federal and State approved wildfire mitigation plans, liability for damages relating to qualifying catastrophic wildfires shall be limited for covered utility operators to no greater than 10 percent of the value of the gross assets of the covered utility.(i)

Wildfire mitigation operating procedures

(1)

State approved operating plans

Covered Utility Wildfire Mitigation and Operating Procedures approved by the state will be the standard in that state for access to the Fund.(A) Covered utilities may submit their approved state plan to the Federal Energy Regulatory Commission.(B) Covered utilities that have significant or prolonged periods of noncompliance with submitting their state approved wildfire mitigation operating procedure will be ineligible to access the liability shield.(2)

Federal Energy Regulatory Commission Technical Conference

(A)The Federal Energy Regulatory Commission shall establish a process by which covered utilities can get their utility wildfire mitigation operation plan approved if their state does not already have a mitigation plan.(j)

Federal jurisdiction over claims related to compensation for qualifying catastrophic wildfires

Claims sought outside of the parameters of the Fund, such as covered claims available under State law under which a State court would have jurisdiction shall be the exclusive jurisdiction of a regionally appropriate Federal claims court.