Wildfire Reform

This Session: Legislators Need to Solve the Wildfire Policy Crisis

Crisis for Ratepayers:

  • Cannot keep coming back to ratepayers every four or five years, asking them to extend contributions to the Wildfire Fund past 2045. Ratepayers have already paid $53 billion. ($14 billion for 2019 wildfire fund (AB 1054), estimated $12 billion for 2025 wildfire fund (SB 254), $27 billion in 2019–2024 wildfire mitigation costs)

Adopt Affordability Bills as part of Wildfire Package:

  • Include SB 905, SB 1098, AB 2338, and SB 886 to provide ratepayer relief, reduce utility overspending, and hold utilities accountable for safety.

Crisis for Wildfire Survivors: 

  • Wildfire survivors have been waiting too long to get their claims paid, and then often getting short-changed, resulting in skyrocketing utility bills and skyrocketing property insurance bills.

Key Turn Principles for Any Wildfire Reform Package

(This is a preliminary list of ratepayer protection proposals. When the draft Wildfire Reform bill language is released, we will have others to add.) 

Protect utility ratepayers from unlimited wildfire costs. 

  • Protect the Wildfire Fund from subrogation claims from insurance companies and other third parties.

  • Set a cap on how much can be collected per incident, or per utility, for the lifetime of the Wildfire Fund through 2045. 

  • Allocate state funds to cover wildfire survivors’ damages that exceed the cap.

  • Restore the requirement that utilities must prove they were not negligent in order to receive liability protection.

  • Restore the ability of external parties to participate in CPUC wildfire investigations before settlement

Provide prompt compensation to wildfire survivors. 

  • Support a State-managed fast pay facility to accelerate payments to survivors and
     reduce litigation costs.

  • Make available a claims navigator to help applicants submit required documentation.

Establish the state as the wildfire insurer of last resort.

  • Create a state-sponsored insurance plan for all wildfires.

    • Make property insurance mandatory, just like automobile insurance.

  • Explore revenue options to set up a $36 billion Wildfire Rainy Day Fund.

    • Wildfire bonds, second home assessments, tax assessments, or increases.