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Facing protests, Newsom drops most of plan limiting utility wildfire liabilities
Los Angeles Times • • nation
Key Points:
- Gov. Gavin Newsom dropped his push for legislation that would have shifted more wildfire costs to property insurers, which would have sharply raised premiums across California, after protests and negotiations with lawmakers and wildfire survivors.
- The new bill limits certain attorney fees for insurance companies, prevents hedge funds and private equity firms from profiting off wildfire claims, and creates a state program to expedite payments to wildfire victims.
- Newsom and lawmakers backed away from a proposal that reduced compensation for fire victims and shifted more costs to local governments, which critics had labeled a corporate bailout benefiting utilities.
- The legislation includes measures to hold utilities accountable by stopping executive bonuses after fires causing significant damage and applies specifically to California’s three major for-profit utilities linked to many destructive fires.
- The bill was introduced just days before the legislative session ended, requiring an extension due to procedural rules, and followed significant lobbying by utilities seeking to limit their wildfire liabilities and protect shareholders.
