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Lawmakers and stakeholders split over liability reforms as wildfire fund options are debated
Summary
The SB 254 hearing surfaced a sharp split: utilities and municipal utilities seek liability certainty or state backstops to protect finances and mitigation investments; survivors, consumer groups and many cities oppose weakening inverse condemnation or capping damages, citing accountability and survivor restitution.
A central fault line at the Senate hearing on the SB 254 report was whether to revise California's liability framework for utility-caused wildfires.
Advocates for liability reform — including municipal utilities and some utility-aligned witnesses — argued that California's unique exposure to inverse condemnation (strict liability for property damage regardless of negligence) creates uncapped fiscal risk that can impair municipal finances and deter investment in resilience. Fernando Valero of LADWP and the California Municipal…
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