Newsom Presses California Lawmakers To Curb Utility Wildfire Payouts
Gov. Gavin Newsom pressed California lawmakers in late August 2026 to pass a plan capping what utilities pay for wildfire damage and shifting more property costs to insurers.[1]
The proposal would limit payouts to victims and lawyers.[1] It would require CEOs to forfeit bonuses if a fire causes more than $1 billion in damage and allow fines up to $10 million against shareholders for prevention failures.[1]
California created a $21 billion wildfire fund in 2019 and added roughly $18 billion last year after utilities' liabilities surged.[1] Lawmakers and utilities now say the fund could deplete, prompting Newsom's late-session push to change how liabilities are allocated.[1]
Victims' groups and insurers publicly oppose the measure, while the state's three big utilities support it.[1] Lawmakers face an August 31 deadline to act during the budget fast-track process, forcing heavy political bargaining as the legislative session ends.[1]
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📌 Key Facts
- Newsom is pushing a late-session plan in August 2026 to change how wildfire liabilities are allocated in California.
- The proposal would cap or limit what utilities pay to victims and lawyers, shifting more property damage costs to insurers.
- The plan includes CEO bonus forfeitures for fires causing over $1 billion in damage and fines up to $10 million for shareholders over prevention failures.
- California’s existing $21 billion wildfire fund, created in 2019 and supplemented by $18 billion last year, is expected to run low, prompting the new push.
- Victims’ groups and insurers publicly oppose the measure, while the state’s three big utilities back it as lawmakers face an August 31, 2026 deadline.
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