Facing protests, Newsom drops most of plan limiting utility wildfire liabilities

Posted on August 29, 2026
By Los Angeles Times
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In brief

Governor Newsom has withdrawn most provisions of his controversial wildfire liability reform bill following intense public opposition and late-night negotiations with state legislators. The original proposal aimed to redistribute financial responsibility for utility-caused fires from insurance companies to property owners through premium increases. After mounting pressure from consumer advocacy groups and lawmakers concerned about affordability impacts, the governor agreed to significantly scale back the legislation, preserving California's current insurance framework while pursuing alternative solutions.

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Facing protests, Newsom drops most of plan limiting utility wildfire liabilities

In a late-night deal with lawmakers, Gov. Gavin Newsom agreed to drop his push for legislation that would have shifted more of the cost of utility-sparked wildfires to property insurers, which could have sharply raised premiums across the state.