08/24/2026
Governor Gavin Newsom is pushing lawmakers to pass a last-minute plan by August 31, 2026, that limits utility wildfire liability and changes how property damage costs are paid.
The Main ProposalThe Deadline: Lawmakers have until August 31, 2026, to vote on the plan. If they fail, the governor might call a special session.
The Reason: The state's wildfire fund is running out of money because of recent blazes like the Eaton Fire.
The Shift: The plan stops insurance companies from suing utility companies to get back money paid for property repairs. Insurance companies would cover more of the total cost.
Rules for Utilities CEO Bonuses: Utility bosses will lose their bonuses if a fire causes more than $1 billion in damage.
Shareholder Fines: Company owners can face fines up to $10 million for breaking safety rules.Faster Pay: The state wants fire survivors to get their money sooner.
Who Agrees and DisagreesThe Utilities: Major companies like Pacific Gas and Electric, Southern California Edison, and San Diego Gas & Electric support the change to avoid financial ruin.
The Insurers: Groups like the Personal Insurance Federation of California state this plan will force home insurance rates to go up.
The Victims: Some fire survivors feel the plan helps big utility companies more than the people who lost their homes.
The big question who will pay for all the losses if insurance companies get basically a slap on the hand?