Overview

• Created in 2019 with $21 billion after PG&E’s bankruptcy, the Wildfire Fund holds more than $13 billion and covers utility liabilities over $1 billion per incident.
• Newsom’s draft would add $18 billion to the fund, with ratepayers footing half via monthly fees and investor-owned utilities covering the rest.
• The proposal pushes the sunset date from 2035 to 2045 and mandates a state agency study on spreading wildfire risk costs across taxpayers.
• It seeks to cap insurers’ subrogation claims to curb high-dollar settlements often acquired by hedge funds.
• Utilities and insurance companies are contesting the fee structure and payout limits, with final legislation pending negotiations before legislators return August 18.