Governor Gavin Newsom and some lawmakers say a recent deal on wildfire liability doesn’t go far enough to limit utility exposure.
Newsom wanted to limit how much utilities have to pay when their equipment sparks destructive wildfires to protect them from insolvency. But legislative leaders pushed back in a final deal announced days ago that does nothing to limit their exposure.
Private utility stocks plummeted after it became clear the legislative deal wouldn’t limit utilities’ fire liability.
"We’re not walking away," said Newsom. "And I’ll tell you you’re one major fire away from this becoming, you know everyone’s going to be back here if that’s the case."
When asked about the possibility of a special session for follow up bills, Newsom didn’t rule it out. The legislature’s regular session ended Monday.
The bill as it stands now would deny utility CEOs bonuses during the years their companies spark a fatal fire and ban private equity groups from profiting on wildfire claims.
It represents a deal between Newsom and legislative leaders, but some lawmakers criticized the proposal and process during the Assembly Utilities and Energy committee Monday night.
.
"I have to admit that I’m just really disappointed in where we are," said Los Angeles Democratic Assemblymember Rick Zbur. "I think this is a disaster that we are coming up with a bill that doesn’t result in any structural reform."
Lawmakers who support the deal didn’t want to cap damages for fire survivors or limit how much insurance companies can recoup from utilities.