Calif. Lawmakers Pass Bills To Stabilize Utilities After Wildfires, But Critics Call Law ‘A Reward For Monstrous Behavior’
The legislation is complicated and was quickly shepherded through the California Legislature with fears of the utility companies going bankrupt if something wasn't done. The bill will provide investor-owned utilities with at least $21 billion to pay for damage from blazes linked to their equipment beginning this summer. Utility customers will be required to pay $10.5 billion to the so-called wildfire fund. Meanwhile, new data show the town of Paradise lost over 90% of its population since a wildfire killed 85 people last year.
Heading into another wildfire season, California鈥檚 political leaders have moved with unusual speed to help the state鈥檚 utilities erect a backstop against huge liability claims. The State Legislature gave final approval on Thursday to a measure that would set up a fund to help compensate victims for losses from fires started by the utilities鈥 equipment. (Penn and Eavis, 7/11)
The bill鈥檚 passage was a political victory for the governor, but some questioned whether California leaders were just making a down payment for wildfire costs that will skyrocket if more isn鈥檛 done to prevent ever-larger blazes. The administration says the bill will provide investor-owned utilities with at least $21 billion to pay for damage from blazes linked to their equipment beginning this summer. Utility customers will be required to pay $10.5 billion to the so-called wildfire fund through a 15-year extension of an existing charge on monthly bills, one that was originally expected to expire by 2021. (Luna, 7/11)
In a 63-8 vote the Assembly sent AB 1054 to the governor's desk, three days after the Senate approved it. Newsom is expected to sign the bill on Friday, which would create a fund of up to $21 billion to pay for damages linked to fires caused by utility equipment. (Pickoff-White and Orr, 7/11)
Assemblymen Phil Ting and David Chiu, D-San Francisco, were among the few votes against the measure, as was state Sen. Scott Wiener, D-San Francisco, when the Senate passed the bill earlier in the week. San Francisco鈥檚 representatives have objected to a provision that would make it harder for the city to buy Pacific Gas and Electric Co.鈥檚 local power lines, a step they are considering. (Morris, 7/11)
In a statement, Newsom praised lawmakers for moving the bill onto his desk. 鈥淚 want to thank the Legislature for taking thoughtful and decisive action to move our state toward a safer, affordable and reliable energy future, provide certainty for wildfire victims and continue California鈥檚 progress toward meeting our clean energy goals,鈥 Newsom wrote. 鈥淭he rise in catastrophic wildfires fueled by climate change is a direct threat to Californians. Strengthening our state鈥檚 wildfire prevention, preparedness and mitigation efforts will continue to be a top priority for my administration and our work with the Legislature.鈥 (Anderson, 7/11)
New figures released by California Gov. Gavin Newsom show the town of Paradise has lost over 90% of its population since a wildfire killed 85 people last year. A door-to-door survey in April counted 2,034 residents, down from previously released state figures that showed the population had declined to nearly 4,600 as of Jan. 1. (7/11)
The Camp Fire killed 85 people as it burned across 153,000 acres for more than two weeks聽last November. About 14,000聽residences聽were destroyed, but some have started rebuilding. Officials issued the first permits to rebuild two homes in March.聽Although some wildfire survivors welcomed the legislation's聽provisions they say will allow them to fight for greater compensation, several lawmakers raised concerns that utility customers will be footing the bill for fires ignited聽by聽PG&E. (Lam, 7/11)