Overview
- Negotiations over a late-session package by Gov. Gavin Newsom to change how utilities pay for wildfire damages are ongoing but key provisions are being rejected by Assembly and Senate leaders.
- Lawmakers have pushed back on proposals that would curb insurers’ subrogation rights, cap non-economic damages and use CAL FIRE perimeters to limit who qualifies for pain‑and‑suffering awards.
- Wildfire survivors and consumer groups staged protests this week calling the plan a bailout for utilities, while the California Professional Firefighters union signaled conditional support after the administration promised changes for local governments.
- The deal on the table would create a fast‑pay system to speed some victim payments and limit third‑party draws on the state Wildfire Fund, but critics say those tradeoffs could reduce long‑term compensation for many survivors.
- The fight is rooted in California’s strict liability system for utility‑caused fires and recent findings that Southern California Edison caused the January 2025 Eaton Fire, and it is being driven by pressure over utilities’ profits, dividends and the state’s 72‑hour bill‑printing and Aug. 31 session deadlines.