L.A. Times Politics is reporting that a major wildfire liability bill in California failed to pass after the state Assembly rebelled against a compromise negotiated by Gov. Gavin Newsom and top legislative leaders. The L.A. Times said the bill, considered the year's most significant, aimed to determine financial responsibility for blazes ignited by for-profit utility equipment.
The issue centered on who would bear the financial burden: utility investors, ratepayers, insurers or their premium payers. The L.A. Times noted that the stakes included the ability of electricity providers like Southern California Edison, Pacific Gas & Electric and San Diego Gas & Electric to remain solvent, and the potential for property insurance companies to cease issuing policies or make premiums unaffordable across California.
Politically, the bill's collapse raised questions about Gov. Newsom's influence as a "lame duck" chief executive, set to be termed out in January. It also cast doubt on Assembly Speaker Robert Rivas' leadership, as he reportedly reneged on the deal with Newsom and Senate President Pro Tem Monique Limon under pressure from the Assembly Democratic Caucus, leading to the bill's demise without a floor vote. The L.A. Times quoted Newsom saying, "I know we all hate utilities, so no one wants to defend a utility. But you’ve got to deal with reality. This thing’s not going to get better on its own," referring to utilities' financial liability.
The L.A. Times columnist George Skelton, who covered the events, personally suggested it might be an overreach to conclude Newsom's power is severely weakened or Rivas lacked leadership. Skelton noted Newsom still holds significant clout with hundreds of bills awaiting his signature or veto by Sept. 30, and that he could be a presidential nominee.