California lawmakers are moving toward a compromise on wildfire liability after rejecting key parts of Gov. Gavin Newsom’s broader proposal. The Associated Press reported that the legislation is designed to speed up compensation for people whose homes and property are damaged by utility-caused wildfires.
The proposal would create a faster claims process for victims and place limits on hedge funds seeking to profit from certain wildfire claims. It would also restrict executive bonuses when utility equipment causes a fire that damages or destroys more than 500 buildings.
The agreement keeps much of the financial responsibility on utilities when their infrastructure is linked to major fires. Newsom’s earlier plan included stronger protections for utility companies, but those measures faced resistance from wildfire survivors, insurers and some lawmakers.
The debate remains part of a larger challenge for California as the state weighs wildfire costs, utility responsibility and rising insurance and electricity expenses. The compromise focuses on quicker relief for victims while leaving several broader policy questions unresolved.