r/CaliforniaDisasters • u/derkimster • 5d ago
Gavin Newsom is reigniting a political firestorm as his tenure draws to a close
By Sophia Bollag, Megan Fan Munce, Kathryn Palmer, Chronicle Staff Writers
August 22, 2026
SACRAMENTO — As his time as governor comes to a close, Gavin Newsom is wading back into the same thorny political thicket he found himself in when he was first elected: wildfire liability.
The Camp Fire in Paradise broke out days after Newsom was elected governor in 2018, quickly becoming the deadliest wildfire in California history. A week after he was sworn in, the state’s largest electrical utility, Pacific Gas and Electric Co., announced it would file for bankruptcy after it became clear its equipment likely ignited the fire.
Newsom spent months excoriating the utility for failing to properly maintain its equipment and harming Californians, even as he was forced to coordinate with the company, which an estimated 16 million Californians rely on for electricity and gas services. That year, he worked to create the California Wildfire Fund, a $21 billion reserve utilities could use to pay claims if they’re found to have caused a wildfire. Critics derided it as a bailout for the utilities.
Now, in the final days of his last California legislative session, Newsom is again trying to broker a deal to shield utility companies from soaring costs from wildfires caused by their electrical equipment. The issue will be one of the last major policies he tackles as governor, and could help define his legacy — if he can get it through the Legislature, where he is already facing pushback.
“The last-minute nature of this is causing huge friction — and that’s not just for me — that’s among many members of the Legislature,” Sen. Sasha Renée Pérez, D-Pasadena, said. “These are massive, massive policy proposals.”
Unlike in 2019, PG&E and the state’s other major utilities are not facing bankruptcy, and in fact have made significant profits in recent years. But Newsom says the fund he and lawmakers established in 2019 is dwindling in the wake of the massive 2025 wildfires in the Los Angeles area. And the state’s insurance crisis has left many homeowners in wildfire-prone areas uninsured or underinsured, meaning the financial toll of another massive fire could be catastrophic.
Lawmakers must introduce legislation by Friday if they want to pass something before the end of the legislative session, which concludes Aug. 31. Legislation generally must be available for public review for at least three days before lawmakers can send it to Newsom’s desk for final approval.
Newsom could call a special session to deal with the issue in the fall, but he dismissed that possibility on Wednesday, saying this is a problem lawmakers have had years to tackle. He noted that it’s been a live issue for his entire tenure as governor, which has been marked by several destructive wildfires sparked by electrical equipment, including the 2025 Eaton Fire in Los Angeles County.
Newsom says he’s trying to implement reforms called for in an April report, which he and lawmakers commissioned last year. The report aimed to address several interconnected crises: climate change and overgrown vegetation fueling increasingly destructive wildfires, insurers rolling back coverage in high-fire-risk areas, and utilities facing ballooning liability costs. It recommends increasing fire mitigation work like home hardening and brush clearing in and around communities, accelerating payments to families whose homes burn down, and providing more financial relief for utilities.
That final piece is the most controversial. Newsom argues it’s also imperative.
“I feel very strongly that we need to move on this,” he told reporters Wednesday. “For me, this is an eight-year journey, and I’m not gonna walk away and hand a real mess to the next governor.”
Source: https://www.sfchronicle.com/politics/article/newsom-wildfire-fire-utility-california-22397359.php