Urgent.News

What's breaking now, across thousands of outlets.

World

Waldbrände: Kalifornische Abgeordnete legen Waldbrandplan vor – Zentrale Forderungen von Gouverneur Newsom bleiben außen vor

Der Gesetzentwurf soll unter anderem die Auszahlungen von Entschädigungen an Betroffene beschleunigen. Newsom mahnt jedoch weitreichendere Reformen an.

Waldbrände: Kalifornische Abgeordnete legen Waldbrandplan vor – Zentrale Forderungen von Gouverneur Newsom bleiben außen vor

California state legislators introduced a bill on Saturday to overhaul wildfire responsibility regulations, following extensive negotiations with Governor Gavin Newsom's administration. The legislation aims to prevent insurers from suing energy companies to recoup payouts for property damage caused by wildfires. The bill is a compromise between Newsom and lawmakers to strengthen the state's response to the impacts of wildfires in the face of rapidly warming climate.

Newsom stated that the law will also speed up the payment of compensation to affected individuals and introduce new restrictions for hedge funds pursuing claims against utility companies related to wildfires. Furthermore, utility executives will bear greater responsibility for workplace safety. However, Newsom emphasized that this is only the first step, as the system requires comprehensive structural reform.

He urged legislators to revisit the issue next year, noting that he will no longer be able to influence the matter due to term limits. Legislators rejected Newsom's proposal to prevent insurers from suing energy companies over wildfire-related claims. Insurers warned that such a move would drive up premiums, burdening homeowners and businesses already frustrated by rising insurance costs in recent years.

Reports from Friday, claiming negotiations had failed, led to a sell-off of insurer stocks. PG&E Corp. closed the trading day down 7.5%. The bill, however, included provisions favorable to energy companies, such as a ban on hedge funds acquiring claims from insurers and new restrictions on legal fees for attorneys handling these cases.

Democratic Senate President Monique Limón stated, "We have reached an agreement that supports affected individuals in managing the aftermath, curbs practices on Wall Street that increase consumer costs, and limits the destruction caused by these wildfires from the outset." She added, "We will be bringing this issue back for comprehensive structural reform next year."

The wildfire bill comes in the wake of reports from the Los Angeles County Fire Department, released at the beginning of August, stating that Edison's facilities triggered one of the worst fires in California history. In January 2025, at least 19 people were killed, and over 9,400 buildings were destroyed in the "Eaton Fire," primarily in Altadena.

The company has faced numerous lawsuits from affected individuals and insurers seeking to recoup payouts. A judge has scheduled the first trials for January. Edison, responsible for several devastating wildfires in Southern California, may reach settlements with some victims, as it has in other cases. The planned regulation follows a Los Angeles County Fire Department report from early August, which stated that Edison's facilities sparked one of the state's most catastrophic fires.

The company maintains that it has refuted any misconduct. Edison is now facing thousands of claims from affected individuals in a state court, with a judge set to begin the first trials in January. Edison, responsible for numerous destructive wildfires in Southern California, could potentially settle with some victims, similar to past cases.

The wildfires of 2025 have caused damages estimated at $41 billion. As climate change increases the wildfire risk across California and the western U.S., utilities like Edison are attempting to curb their growing liability risks, conflicting with affected wildfire victims, insurers seeking to recoup payouts, and cities and counties struggling with rising costs for fire suppression and infrastructure repair.

The allocation of these costs among energy company stakeholders, their customers, insurers, taxpayers, and wildfire victims has become one of the most contentious issues in a legislative session set to end on Tuesday. A coalition of wildfire victims, insurers, trial lawyers, consumer advocates, and municipal associations wrote to the Speaker of the House earlier this month, urging them to reject any proposal that shifts the costs of wildfires onto energy company shareholders.

Among the bill's opponents was the Every Fire Survivor’s Network, representing over 10,000 people affected by the Eaton Fire and another blaze that devastated the affluent Pacific Palisades neighborhood of Los Angeles. The two fires in January 2025 caused damages totaling $41 billion, making them, according to insurance broker Aon, the costliest wildfires globally since records began.

Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at handelsblatt.com →

More in World

More from Sunday 30 August →