California utilities are not off the hook for starting wildfires, at least not this year.
A deal in Sacramento last weekend essentially sidelined an effort, backed by California Gov. Gavin Newsom, that would have insulated utility companies from legal claims if the utility causes a wildfire.
The legislative agreement, part of Senate Bill 492, would launch a program to expedite claims for damages, deny some bonuses for utility CEOs and place requirements on lawyers representing victims.
But the “full structural form” Newsom sought ran into stiff bi-partisan political opposition across the state.
Mariposa County Board of Supervisor Chair Danette Toso wrote a letter to state lawmakers Aug. 17 opposing “any wildfire liability reform proposal that limits the ability of local government to fully recover emergency response costs, damage to public infrastructure and property, lost public revenues and other costs resulting from a utility-caused wildfire.”
“We recognize the importance of maintaining a stable Wildfire Fund, ensuring that wildfire survivors receive timely compensation,” Toso wrote.
“These objectives, however, should not be achieved by shifting costs away from utilities and their shareholders and onto local governments, taxpayers, wildfire survivors and affected communities.”
In behind-the-scenes negotiations, Newsom reportedly pressured lawmakers to adopt changes he said would support a state fund to reimburse wildfire victims, while reigning in insurance companies and hedge funds.
Critics pointed to the language of the measure that reflected utility company lobbying efforts.
Between utilities, insurance companies and hedge funds, it was hard to find anyone to root for.
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