California Gov. Gavin Newsom reached an agreement with Democratic legislative leaders on a set of wildfire-related measures that stops short of his earlier proposals to lower expenses for utilities after fires sparked by their equipment.
The package, detailed in Senate Bill 492, bars private equity firms from purchasing wildfire claims and withholds bonuses from utility chief executives in years when their companies are linked to fatal fires, according to LAist reporting.
Lawmakers also established a fast-pay program that sets deadlines for validating survivor claims within 60 days and making settlement offers within 30 days thereafter, while preserving the option for victims to pursue lawsuits.
The state further pledged to strengthen local wildfire prevention efforts and expand public data on insurance availability in high-risk zones. The bill is scheduled for a vote next week.
Newsom had sought broader changes to limit payments to insurers, local governments and other claimants, citing risks to investor confidence in the state's major utilities and potential increases in electricity rates. Those elements were not included.
“This system needs full structural reform — not a partial one,” Newsom said in a statement. He urged lawmakers to address the long-term stability of the state's wildfire fund in future sessions.
Utility representatives expressed disappointment that more comprehensive changes were not adopted, while survivors and consumer groups praised the Legislature for resisting proposals that would have reduced damages available to victims.
Nine of California's 20 most destructive wildfires have been traced to electrical equipment or power lines, underscoring the ongoing challenge of balancing utility accountability with financial stability.
This report is based on coverage by LAist: https://laist.com/news/california-lawmakers-strike-wildfire-deal-that-leaves-out-most-of-newsoms-big-demands