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California Legislature to vote on wildfire reforms after blocking key parts of Newsom’s plan
The deal would speed payments to survivors, ban hedge fund profits from wildfire claims, and bar utility bonuses after major fires, lawmakers said.
California's legislative session concluded with a deal rejecting Governor Gavin Newsom's proposed wildfire overhaul, filing SB 492 to establish a Fast Pay program instead of shifting financial burdens to insurance companies or limiting victim recovery rights.
Wildfire survivors and various groups protested the governor's initial plan throughout the week, arguing it would have acted as a 'corporate bailout' by shielding utilities from liability for the deadly Eaton Fire.
The legislation includes measures to curb executive bonuses at companies like Edison International if a fire damages 500 or more structures, while also banning hedge funds and private equity firms from profiting on wildfire insurance claims.
Consumer Watchdog President Jamie Court and Every Fire Survivor's Network director Joy Chen praised the legislature's refusal to shield utilities, calling the deal a 'remarkable display of courage' that protects survivors and consumers from costs.
A 72-hour public notice requirement delayed the vote until Tuesday, as state leaders acknowledge this agreement is only a partial step toward the structural reform needed for long-term wildfire durability.