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8h ago

California Lawmakers Reject Utility Bailout and Advance SB 492

It speeds payments to wildfire survivors, adds limits on claim trading and executive pay, and omits a major replenishment for the state Wildfire Fund.

Senate President pro Tempore Monique Limón, right, listens to speakers with, from right, state Senators Aisha Wahab, Sabrina Cervantes and Laura Richardson during a floor session in the Senate Chambers at the Capitol, Monday, Aug. 31, 2026, in Sacramento, Calif. (AP Photo/Jeff Chiu)
Assemblymember Jacqui Irwin, right, talks with Assemblymember Steve Bennett during an Assembly session at the Capitol, Monday, Aug. 31, 2026, in Sacramento, Calif. (AP Photo/Jeff Chiu)
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Overview

  • Lawmakers advanced an amended SB 492 after last‑minute negotiations over the weekend and on Monday that preserved survivors’ right to full recovery and discovery.
  • The bill creates a Fast Pay program to speed victim payments, limits some attorney fees, bans speculative claim trading by hedge funds and private equity, and restricts short‑term CEO bonuses after utility‑caused fires.
  • Legislators rejected Gov. Gavin Newsom’s proposal to curb insurer subrogation rights and declined to add statutory liability caps or large new funding for the Wildfire Fund.
  • Investors reacted sharply with major California utility stocks plunging and PG&E issuing a statement saying the bill “falls short” on financing and long‑term investment durability.
  • The measure leaves open a key fiscal question about the roughly $21 billion Wildfire Fund created in 2019 and signals more legislative and regulatory fights next year over how to finance future utility‑caused fire costs.