Comparing utility companies to terrorists, Democratic state lawmakers are pushing back against Gov. Gavin Newsom’s complex proposal that would reduce how much utilities pay for the wildfires they cause.
As CalMatters’ Jeanne Kuang and Levi Sumagaysay explain, the proposal’s most controversial provisions include capping compensation for fire victims; curbing insurance companies’ right to recover wildfire costs from utilities; and limiting how much local governments can recoup for destroyed infrastructure.
Newsom’s office said the governor wants to ensure fire victims get compensated faster. The plan also would reduce utilities’ financial liabilities, which pose risks that could ultimately lead to higher power bills for customers.
Though there’s no official bill language yet, local governments, wildfire survivors, consumer advocates and insurance companies have been denouncing the plan, which Newsom introduced only a few weeks before the end of the legislative session.
Referring to a report that utility executives are threatening unspecific actions to protect their shareholders if lawmakers do not help them reduce their wildfire liability, state Sen. Sasha Renée Pérez said the Legislature is not going to “negotiate with companies that want to act like terrorists.”
- Renée Pérez, a Pasadena Democrat: “My job is not to ensure that we’re increasing profits for shareholders for these companies.”
But there are parts of Newsom’s plan that lawmakers do agree on: Both want to reduce utility CEO bonuses after a destructive fire, increase fines for utilities with safety violations and cap fees for attorneys who represent victims.
Focus on Inland Empire: Each Wednesday, CalMatters Inland Empire reporter Aidan McGloin surveys the big stories from that part of California. Read his newsletter and sign up to receive the next one.
Other Stories You Should Know
Little time to salvage care for transgender kids
State lawmakers are scrambling to provide a lifeline for transgender kids who are about to lose health coverage — but even LGBTQ advocates say they’re doubtful the state can pull it off, writes CalMatters’ Kristen Hwang.
Starting Oct. 13, about 1,500 transgender and gender-nonconforming children on Medi-Cal could lose access to puberty blockers, hormones and other related care due to new rules under the Trump administration prohibiting federal reimbursement for gender-affirming care for minors.
To shore up this loss of federal funds, California legislators are seeking an emergency $10 million, which would buy time for the state to create a separate funding pathway for transgender kids on Medi-Cal.
But some LGBTQ organizations and parents said state leaders led them to believe that the state budget, which passed in June, would have set aside money for gender-affirming services. That didn’t happen.
- Arne Johnson, an organizer with Rainbow Families Action: “It’s been very frustrating to see California say in many words that it’s supportive of trans people, and be so unprepared for something we all knew was about to happen.”
Help us report on California DUIs
For more than a year CalMatters’ Lauren Hepler and Robert Lewis have been reporting on how California has some of the weakest DUI laws in the country. As they’ve shown, the state has allowed repeat dangerous drivers to stay on the road with little punishment. Many keep driving even after they kill, and some go on to kill again.
Now, we’re reporting on what happens to drivers after they cause a serious car crash. If you have a story about someone being killed or badly injured by a driver who wasn’t prosecuted, we want to hear from you. You can share details about what happened, where it occurred and any relevant documentation about the crash.
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California Voices
CalMatters columnist Dan Walters: The outcome of Proposition 45 could be a major milestone in the decades-long political skirmish over California’s landmark environmental law.
Placing only the most prepared students into the highest-quality University of California campuses may reinforce existing social, economic and racial inequalities among students, writes Prasad Krishnamurthy, a law professor at UC Berkeley School of Law.
Other things worth your time:
CA promised undocumented students a future. Now they are losing hope // Los Angeles Times (paywall)
Nvidia has become a banker to the AI boom, putting it on dangerous ground // The Wall Street Journal (gift link)
More fallout from CA new tire regulation: ‘You will not have as many manufacturers’ // The San Diego Union-Tribune (gift link)
What’s in CA’s new rules for homes in fire-prone areas // LAist (free)
Recent animal rescue tragedies underscore strain on shelters // KQED (free)
Survival of endangered Sacramento River salmon hinges on 15-day window of cold water // Abridged (free)
Governments now may take ‘months or years’ to fulfill records requests // Voice of San Diego (free)
He was waiting for his son to return on the USS Lincoln. Then Border Patrol arrested him // AP News (free)
A loophole in Long Beach’s new power plant tax may have blown a $12M hole in its budget // Long Beach Post (free)
