A California alliance that includes fire survivors and consumer advocates is pushing back on Gov. Gavin Newsom's wildfire recovery reform proposal, which it says puts survivors first.
They say it could slow rebuilding for people harmed by fires while shifting more of the costs to insurers, local governments, taxpayers, and communities that have already suffered losses.
Here's what to know
In an Aug. 11 letter, an alliance of insurers, local officials, fire survivors, attorneys, and consumer advocates urged lawmakers not to adopt Newsom's plan, arguing it amounted to little more than a corporate bailout despite its survivor-first presentation.
"Wildfire survivors should not be asked to subsidize utility shareholders. Families who have lost loved ones, homes, businesses, and livelihoods because of utility-caused fires deserve full compensation and a clear path toward recovery," the coalition wrote.
According to the California Post, seven of the world's 20 most expensive wildfires were started by utility equipment, and each of those seven blazes was in the Golden State.
More background
The dispute is unfolding as California's wildfire liability fund nears depletion. As the Post noted, Southern California Edison has "drained" those funds after sparks from a long-unused Edison transmission line were found responsible for last year's Eaton Fire.
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Current rules can hold utilities financially liable when their equipment causes a disaster, but critics of Newsom's proposal say his approach pushes more of that burden onto the public.
The coalition warned that the result could be "higher insurance costs, higher taxes, diminished public services, or reduced compensation for wildfire losses."
Joy Chen, who leads the Every Fire Survivors Network, told KCRA that the proposal would also create narrow "zones of danger" along fire lines, potentially excluding people outside those boundaries even if smoke contamination damages their homes.
What's being done?
There is one thing that everyone seems to agree on: the system is broken.
"The status quo isn't working for Californians," Governor Newsom said in his reform proposal.
The coalition is asking lawmakers to protect full compensation for victims and maintain strong liability standards for utilities, while also improving statewide coordination and incentives for wildfire mitigation, risk assessment, weather-resilient building, and the reduction of hazardous fuels.
"California's wildfire challenges require meaningful prevention and mitigation efforts, not a transfer of liability from the parties responsible for causing catastrophic fires onto the backs of the communities that suffer their consequences," the coalition wrote.
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