Montana House Bill 490
Author – Ron Catlet, Flathead Electric
Recently, the Montana Legislature overwhelmingly passed House Bill 490 in response to the growing risk of wildfires. House Bill 490 requires electric utilities to create an approved wildfire mitigation plan and protects them from being held legally responsible for fires where they were not negligent.
The Montana Electric Cooperatives’ Association (MECA), representing the 25 not-for-profit, member-owned electric utilities serving 400,000+ Montanans, joined with Northwestern Energy to draft HB 490. It was then carried in the Legislature by Flathead Electric Cooperative member Rep. Amy Regier (R-Kalispell). It was the #1 priority bill for Montana’s member-owned electric cooperatives in the 2025 state legislative session.
During a March hearing of the Senate Judiciary Committee Regier stated, “The main purpose of this bill is for electric co-ops and public utilities to demonstrate their commitment to reducing fire risk by requiring wildfire mitigation plans to be developed and initiated by the end of this calendar year. For these wildfire mitigation plans to work and for utilities to continue to be able to deliver electricity, they need to prevent a standard of strict liability for wildfire from being established in Montana.”
Recent court cases in Oregon and California have applied a standard of “strict liability” to utilities in the aftermath of wildfires. Under strict liability, a utility can be held responsible for damages caused by wildfires, regardless of whether the utility was negligent or reckless. However, if it is proven that the utility did start the fire, then liability would apply.
Montana’s new commonsense legislation clarifies that utilities implementing an approved wildfire mitigation plan cannot be held strictly liable.
At the Senate hearing, Flathead Electric Cooperative’s Integrated Services Manager Amanda Opp testified, “The goal here is not to shield utilities from responsibility, but to create an environment where we can actively reduce risk without the constant fear of being held liable for every wildfire incident, especially those that happen due to factors outside of our control.”
The bill enjoyed strong support from cooperatives and investor-owned utilities, as well as industrial groups, the Montana Contractors Association, and the American Indian Caucus. It passed the House unanimously and the Senate on a 40-8 vote. Every state legislator in Flathead Electric’s service area supported the bill.
“Utilities have an obligation to serve all their members and can’t just shut off power for days or weeks during fire season,” said Sen. Carl Glimm (R-Kila) during the Senate floor debate. “If the utility’s negligence starts a fire, they should pay. But they should not be subject to a guilty until proven innocent standard.”
Why it matters for Lincoln Electric
Lincoln Electric Cooperative, as a member-owned nonprofit utility, is included under the “electric facilities providers” covered by HB 490.
Implications for LEC:
Requirement to Develop a Plan
LEC must draft, submit, and adhere to a wildfire mitigation plan by the end of 2025 and revise it at least every three years.
Protection from Automatic Liability
If LEC can demonstrate it “substantially followed” the plan at the time of a wildfire, it is not automatically liable under strict liability law.
Accountability When Negligent
If evidence shows LEC was negligent in their wildfire prevention efforts, they can still be held liable—in other words, the bill is not a waiver of responsibility.
Financial Stability for Members
As a cooperative, LEC relies on its members—not shareholders—for resources. HB 490 helps mitigate the risk of catastrophic liability (as seen in other states), which in turn helps protect LEC’s financial stability and keeps rates more affordable