Newsom Pushes Plan to Limit Utility Wildfire Liability in California

California Governor Gavin Newsom says he is not backing down from his push to change how much the state's utility companies would have to pay when they cause a catastrophic wildfire.

The proposal would not affect victims of wildfires that have already happened, but would establish new limits for future incidents.

The plan has drawn strong criticism from some Altadena wildfire survivors, who say the focus should remain on helping people who have already lost homes and property.

"This is ridiculous and unfair," one wildfire survivor said. "And we need to recenter the conversation on what survivors need."

Newsom's proposal would change rules governing California's wildfire liability fund, which is funded by utility customers and companies.

For future wildfires, the proposal would narrow who qualifies as a victim, primarily prioritizing people located in burn-scar areas. It would also prevent insurance companies from suing to recover their losses and place limits on the amount of money local governments could receive for rebuilding.

Critics also point out that the proposal does not include new requirements or deadlines for utilities to take additional steps to prevent their equipment from sparking wildfires.

Newsom said the proposal is part of an ongoing process and could change as discussions continue with lawmakers and other groups.

"If you think that what I put out is what I expect to sign, you haven't been paying attention to what I've been doing eight years," Newsom said.

The governor argued that California cannot afford to wait for changes to the state's wildfire liability system.

He pointed to Assembly Bill 1054 and the creation of a roughly $22 billion wildfire fund following the bankruptcy of PG&E, saying the fund is expected to be exhausted because of the Eaton Fire.

"We don't have time to wait," Newsom said. "So no, I feel very strongly that we need to move on this."

California legislative leaders say lawmakers are reviewing the proposal and gathering input from stakeholders.

"The legislature is doing our due diligence to vet these ideas, discuss these ideas, and take input from stakeholders," one legislative leader said.

The debate is expected to continue as lawmakers work through the final days of the legislative session.

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