Wildfire Reform

SB 492 (Becker, Petrie-Norris) is

Moving to the Governor’s Desk.

SB 492 is a significant first step in reducing ratepayer obligation for wildfires. TURN would like to thank Senator Josh Becker and Assemblymember Cottie Petrie-Norris for their persistence, thoughtfulness, and support in getting this this bill through the Legislature.

Reduces Claims Against the Wildfire Fund

Eliminates the ability of hedge funds and private equity firms to purchase and collect on subrogation claims, protecting ratepayers and ensuring that wildfire survivor claims take priority over profiteers. 

Penalizes Utility Executives for Starting Wildfires 

Requires senior utility executive compensation to be reduced when utilities start wildfires, including a 35% reduction in salary and bonuses, when a wildfire results in loss of life. 

Establishes Statewide Community Wildfire Planning Strategy

Requires a formal state level planning process, to implement community hardening measures, in high fire risk areas, that will reduce wildfire spread
and claims against the Wildfire Fund.

More on SB 492

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.) 

TURN's Original Proposal

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.