California wildfire liability bill dies without a vote on final day of legislative session

AFTER NEARLY A MONTH of intense closed-door negotiations, California lawmakers on the last day of session killed a compromise bill that failed to insulate investor-owned utilities when they cause catastrophic wildfires. 

Gov. Gavin Newsom and the utilities had fought to significantly reduce utility companies’ liability. Last week Newsom struck a compromise with Senate and Assembly leaders that would have imposed no limits on fire survivors’ compensation or lawyers’ contingency fees for individuals’ lawsuits. It also would have retained insurance companies’ ability to sue utilities to recoup their costs for claims, and would have barred private equity firms from investing in insurance claims. The utilities’ stocks plunged after the deal was reached. But the Assembly did not take up the bill on Tuesday, effectively killing it.