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Tipsheet

It's No Surprise Who CA Dems Want to Be Liable for 'Major Climate Disasters'

AP Photo/Noah Berger

A bill has been introduced in the California Legislature that would make fossil fuel companies liable for “major climate disasters.” 

Democratic state Sen. Scott Wiener, who co-introduced the Affordable Insurance and Climate Recovery Act, said SB 222 would shift the financial burden of disasters from homeowners to fossil fuel companies, thereby making victims "whole."

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Major fossil fuel companies intentionally misled the public for decades about the impacts of their products, and now Californians are paying the price with devastating wildfires, mud slides, sea level rise, and skyrocketing insurance costs. When climate disasters strike, SB 222 allows homeowners and businesses to recover damages from the fossil fuel companies responsible for the disasters.

The increasing frequency and severity of climate disasters has sent insurance prices skyrocketing across California and has pushed many families into the state’s insurer of last resort, the FAIR Plan. When the costs of climate disasters grow too high, both private insurers and the FAIR Plan recover losses by charging higher prices on California policyholders. By allowing insurance companies and the FAIR Plan to recoup losses for major climate disasters from the fossil fuel companies responsible for the damage, SB 222 provides a major infusion of financial support to stabilize the insurance market and contain the high cost of insurance for Californians.

In addition to Senator Wiener, SB 222 is primary co-authored by Assemblymember Al Muratsuchi (D-Torrance), and co-authored by Senators Sasha Renée Pérez (D-Pasadena), Lena Gonzalez (D-Long Beach), Caroline Menjivar (D-San Fernando Valley), Henry Stern (D-Los Angeles), Jerry McNerney (D-Stockton) and Assemblymember Dawn Addis (D-Morro Bay). (State Sen. Wiener

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“The backstop for wildfire insurance funds shouldn’t just be other California policyholders,” Stern said. “Those who caused these fires to become more dangerous with their pollution should finally pay their fair share.”

Critics pointed out there is no accountability demanded from officials at the local and state level for mismanagement and incompetence leading up to the recent wildfires. 

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