By Jeanne Kuang

WHAT THE BILL WOULD DO

Senate Bill 254 by Sens. Josh Becker, Cottie Petrie-Norris and Aisha Wahab would boost the state’s wildfire liability fund, which is paid for by the big three utility companies’ shareholders and customers. The fund, which pays victims of wildfires caused by utility infrastructure, is running low from claims stemming from this January’s Eaton Fire. The $18 billion boost over 10 years would be split equally between shareholders and ratepayers, who contribute to the fund through a charge on their bills. The bill also includes new regulations on the three investor-owned utilities, preventing utilities from profiting from $6 billion worth of wildfire-proofing work (such as moving power lines underground). It would also set up a program for the state to help publicly finance the cost of building new transmission lines, a significant factor in energy bills, and fast-track some permitting for solar and other clean energy projects. 

WHO SUPPORTS IT

The bill is part of a package of climate and energy policies negotiated between legislative leaders, who wanted to try to curb utilities rates, and Gov. Gavin Newsom, who wanted to replenish the wildfire fund. It’s backed by mainstream environmental groups such as the Natural Resources Defense Council and consumer advocates such as The Utility Reform Network. The California Chamber of Commerce, initially opposed, has since gotten on board after the bill was amended to include the wildfire fund.

WHO IS OPPOSED

A group representing some past wildfire survivors says the measure doesn’t go far enough for them, arguing the wildfire fund has benefitted utilities and their shareholders at the expense of homeowners and residents who struggle with the legal process to get paid. Some electricity users’ advocates also are frustrated consumers would have to continue paying into the fund.

WHY IT MATTERS

In the grand energy policy bargain of California leaders trying all at once to maintain climate goals, keep energy flowing reliably and drive down costs, SB 254 represents the latter portion of those efforts. While other parts of the deal boost oil drilling or expand energy markets, this bill contains the more progressive of this year’s energy proposals that reflect Democrats’ desire to lower prices by regulating utilities.

GOVERNOR’S CALL ✅