California lawmakers are set to vote on Tuesday on a bill intended to speed payments to wildfire survivors after Governor Gavin Newsom’s broader proposal to limit utilities’ financial liability was rejected. The governor’s last‑minute compromise retains some benefits for victims, such as faster payouts, but stops short of sweeping reforms on who bears the cost of fires ignited by utility equipment.
The compromise bill creates a program managed by the California Catastrophe Response Council to expedite survivor claims, bans hedge funds from profiting on wildfire lawsuits, and prohibits utility executives from receiving bonuses if their equipment causes a blaze that damages more than 500 buildings. It also bars insurance companies from suing utilities for reimbursements on homeowner claims.
Survivor groups, including the Every Fire Survivor’s Network, welcomed the deal, saying legislators listened to Californians devastated by recent fires. In contrast, the American Property Casualty Insurance Association praised the measure for preserving insurance affordability, while Pacific Gas & Electric and several lawmakers criticized it as insufficient, calling it a “disaster” that fails to address structural issues or provide durable, long‑term solutions.
The dispute over wildfire cost responsibility has persisted throughout Newsom’s tenure. In 2019 he signed legislation creating a $21 billion fund, financed by utility shareholders and ratepayers, to cover damages when utilities meet safety standards, later supplemented by an additional $18 billion. The governor’s latest effort aimed to stabilize the state’s high electricity rates by shielding utilities from full wildfire liabilities.
Because the Legislature missed the August 31 deadline, lawmakers added an urgency clause to the bill, requiring a two‑thirds vote for immediate effect once signed. The outcome will determine how quickly victims receive compensation and how financial risk is allocated among utilities, insurers, and the state.
