California Governor-Wildfire Liability

California Gov. Gavin Newsom is asking state lawmakers to shield utilities from financial trouble if their equipment sparks a wildfire by limiting the amount they have to pay victims and attorneys. He's pushing the plan in the final days of his last legislative session as governor. Property insurers and fire victims say utilities should continue to cover the cost of damages from blazes they spark. But the state's major utilities are urging lawmakers to pass Newsom's plan. The plan could ensure victims get paid more quickly after a blaze. The issue has loomed large throughout his nearly eight years in office.

The California Assembly has opted not to vote on legislation meant to help wildfire victims. Lawmakers decided at the last minute Tuesday to push back a decision on the issue. Gov. Gavin Newsom had unsuccessfully urged them to back a more ambitious plan to reduce electric companies’ liability if their equipment sparks a blaze. The question of who should cover the cost of utility-sparked fires has persisted throughout his time in office. Newsom faced pushback from fire victim advocates and home insurers over the plan. Victims say it failed to hold electric companies accountable. Insurance companies said it would have forced them to raise rates for policyholders by shifting the cost of fire damage onto them.