We then propose a voluntary multi- ented at fire suppression, and increased devel- state and federal safety program to apply parts opment of housing in vulnerable areas have all of this mitigation framework across the West, contributed to large increases in loss of life, struc- with participation incentivized by the creation of ture loss, ecological impacts, and smoke-related a federal Utility Wil. [...] some of the most destructive wildfires with loss- A federal Utility Wildfire Fund could serve as a es that are large enough to significantly affect risk-pooling mechanism to better manage costs the financial health of electric utilities in a grow- associated with fires that may occur even after ing number of states, particularly those in the utilities take necessary actions to reduce risk. [...] Utility-ignited wildfires also threaten the Key details for such a policy are how minimum affordability of electricity rates, the implemen- standards are created and enforced, the balance tation of state and federal clean energy policies, of state and federal authority in making decisions and the overall health of the housing market. [...] that will impact both costs and reliability of elec- As a matter of both public safety and re- tricity, the mechanism for creating a catastrophic sponsible business practices, we argue that all risk pool, the necessary size of such a risk pool, electric utilities operating in areas where wildfire and who pays to fund the claims-paying capacity risk is high should create and implement plans needed. [...] Expand oversight and public insurance Note: Step 5 of this playbook is not required for utilities to gain access to the federal Utility Wildfire Fund, but rather, is left to the discretion of a given utility and its state regulator.
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