Newsom seeks new deal to reshape California wildfire liability rules
Governor Gavin Newsom is negotiating with legislators on a proposal that would alter how utilities pay for wildfire damage and shift some costs to insurers and shareholders.
As his final legislative session draws to a close, Governor Gavin Newsom is working with state lawmakers on a deal that would adjust California's wildfire liability framework. The proposal would cap the amount electric and gas utilities must pay to victims and attorneys, and would require quicker payments to survivors. It also calls for utility CEOs to forfeit bonuses if a fire they cause results in more than $1 billion in damage, and for shareholders to face fines up to $10 million for safety violations.
Insurance industry representatives say the shift could push higher costs onto policyholders, while fire survivor advocates contend the plan favors utilities over those harmed by the blazes. The legislature must decide by Aug. 31, or Newsom may reconvene a special session. The outcome could influence the governor's legacy and future political ambitions.
Why it matters
The deal could reshape who bears the financial burden of California's increasingly costly wildfires.
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