Gov. Gavin Newsom

 

SACRAMENTO, CA (MPG) - Gov. Gavin Newsom signed legislation Sept. 30 establishing a state policy aimed at providing full restitution to victims of utility-caused wildfires and placing responsibility for that compensation on the utility that caused the fire.

Assembly Bill 2700, the Fire Victim Restitution and Recovery Act, directs the California Public Utilities Commission to determine what eligible wildfire victims are owed and identify methods for providing compensation without increasing utility rates, according to releases from the bill's authors and the Utility Wildfire Survivor Coalition.

For victims of Pacific Gas and Electric Co. wildfires between 2015 and 2018, the legislation defines full compensation as 100% of verified economic and noneconomic losses identified in PG&E Fire Victim Trust determination notices.

The legislation also directs the CPUC to establish a path toward full restitution for those victims and a framework for other wildfire victims, including those affected by the 2025 Eaton Fire.

The bill was introduced by James Gallagher while he served in the state Assembly. Assemblyman Joe Patterson, R-Rocklin, became the bill's author after Gallagher was elected to Congress.

"It was my great honor to take this bill on as one of my last actions in the Legislature," Gallagher said. "Far too many wildfire victims are still waiting for the fair compensation they deserve."

Patterson said the legislation gives wildfire survivors a path toward recovering losses that have remained unpaid for years.

"No amount of money can undo what they have suffered, but my hope is that this bill provides a tangible step for them to rebuild and move forward," Patterson said.

The Utility Wildfire Survivor Coalition, which sponsored the legislation, said thousands of survivors supported the bill through testimony, meetings with lawmakers and calls to legislative offices.

Coalition organizing advocate Jill Gottlieb said approximately $6 billion in determined losses remain unpaid to PG&E Fire Victim Trust claimants.

Under AB 2700, the electrical corporation that caused a wildfire bears responsibility for fair, full and timely restitution. The legislation directs the CPUC to consider financial mechanisms including reduced or deferred shareholder dividends, retained earnings, equity contributions and debt mechanisms.

The measure received no opposing votes during nine recorded legislative votes, according to the coalition, including a 78-0 Assembly concurrence vote and a 40-0 Senate vote.

The law takes effect Jan. 1, 2027. The CPUC will then begin identifying timelines, benchmarks and mechanisms for restitution.