South Dakota Approves New Law Limiting Utility Liability for Wildfires

Legislation comes as Black Hills region battles wind-driven blazes

Mar. 13, 2026 at 5:51pm

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South Dakota's governor has signed a new law that will give utilities greater protection from wildfire lawsuits if they submit mitigation plans to state regulators. The law changes the legal standard for plaintiffs seeking to recover damages, requiring proof that the utility failed to substantially comply with an essential element of its plan. The legislation was passed as wildfires broke out in the Black Hills region, prompting a power company to proactively shut off electricity to some customers.

Why it matters

The new law aims to balance the need to hold utilities accountable for wildfire prevention with providing them legal protections, as the state grapples with an increasing risk of destructive blazes driven by climate change. Critics argue the law could make it harder for wildfire victims to seek compensation, while supporters say it will encourage utilities to invest in robust mitigation efforts.

The details

Under the new law, private utilities must submit wildfire mitigation plans to the state Public Utilities Commission, while electric cooperatives and municipal utilities can submit plans to their own boards or city councils. The plans must identify high-risk areas, establish inspection and operating standards, implement vegetation management, and coordinate with wildfire agencies. Utilities that participate will have a higher legal bar to clear in wildfire lawsuits, with plaintiffs needing to prove the utility failed to substantially comply with an essential element of its plan.

  • On March 13, 2026, South Dakota's governor signed the new law limiting utility liability for wildfires.
  • Also on March 13, wind-driven wildfires broke out in the Black Hills region, prompting a local utility to proactively shut off power to some customers.

The players

Steve Kolbeck

A Republican state senator who sponsored the bill and works as a director of business affairs at Xcel Energy, an investor-owned utility in South Dakota.

Larry Rhoden

The governor of South Dakota who signed the new law limiting utility liability for wildfires.

Black Hills Energy

A utility that shut off power to hundreds of residents in the southern Black Hills as a precaution against live power lines falling and sparking more fires.

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What they’re saying

“We want to make people whole. We just don't want to make them rich.”

— Steve Kolbeck, State Senator

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This new law highlights the complex balance between holding utilities accountable for wildfire prevention and providing them legal protections, as states grapple with the growing threat of climate change-driven blazes. While supporters argue the law will encourage utilities to invest in mitigation, critics warn it could make it harder for victims to seek compensation.