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Business

California lawmakers stall Newsom’s wildfire liability bill, saying it doesn’t go far enough for victims

Fortune ·
California lawmakers stall Newsom’s wildfire liability bill, saying it doesn’t go far enough for victims

The California Assembly opted not to vote Tuesday on legislation meant to help wildfire victims, deciding at the last minute to push back a decision on a bill that some Democrats, including Gov.

Gavin Newsom, said wouldn’t meaningfully address the financial challenges caused by catastrophic blazes.

Lawmakers introduced the legislation over the weekend after they rejected an ambitious proposal by Newsom that would have limited electric companies’ financial liability for fires sparked by their equipment.

After deciding not to vote Tuesday, Assembly Speaker Robert Rivas said lawmakers would revisit the issue this fall.

“The proposal before us does not yet deliver the relief, accountability or meaningful reform that Californians deserve,” the Democrat said in a statement.

“So, we are going back to work — and we will not stop until we have done everything in our power to deliver real results.” Newsom’s plan would have reduced the amount utilities had to pay some victims and barred insurance companies from suing electrical companies to get reimbursed for damages paid out to homeowners.

The governor said the last-minute compromise he made with lawmakers would have had some benefits for wildfire victims, such as getting paid faster, but that it failed to make necessary, sweeping reforms to tackle the question of who covers the cost of fires ignited by utility equipment.

Newsom acknowledged that the bill would have made some progress toward addressing the contentious, high-stakes issue.

“I could have easily walked away from it,” he told reporters Monday.

“And that would have been a disservice to you and the people of this state.” Monique Limón, the president pro tempore of the state Senate, said she was disappointed that the deal wasn’t passed Tuesday.

“Thousands of survivors made their voices clear — they needed reform to ensure the next wildfire does not continue to cause the mental and financial stress that recent disasters have placed on Californians,” the Democrat said in a statement.

Who pays for wildfires is a contentious issue Newsom’s failure to get his full plan passed by the end of the session marked a rare loss for the governor, who has often found support for his policy wishes in the Democratic-led Legislature.

It comes as he wraps his final session before leaving office in January.

Fire victims heavily criticized his proposal, even protesting outside the governor’s mansion in Sacramento last week.

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