Assembly hearing reviews SB 492 wildfire package that speeds payments and limits subrogation

Senator Becker, sponsor of SB 492, presented the bill’s core goals at a hearing of the Assembly Committee on Utilities and Energy: create a fast-payment system for wildfire survivors, prevent hedge funds and private-equity firms from profiting by buying subrogation claims, and reduce executive compensation when utility equipment is found to have caused major fires.

"We believe that this proposal, this fast pay in this bill, does do that," Becker said while outlining the bill’s provisions, adding that the measure will also codify a statewide data commons and require the state fire marshal to help cities and counties develop community wildfire protection plans.

The author and several witnesses described FastPay as an independent, shorter-timeline claims process intended to get money to survivors faster while preserving the right to sue. The bill also directs CAL FIRE to lead a data commons that would combine data from state agencies, local governments and insurers to prioritize mitigation.

Committee members welcomed the survivor-centered framing but repeatedly raised concerns that SB 492 does not enact deeper structural reforms to utility finance and liability. Several members warned that market reactions to the bill could drive higher borrowing costs for investor-owned utilities, which could in turn raise rates and slow investment in clean-energy transmission and housing projects.

Senator Becker said the measure is a partial step and recommended further work next year on affordability and longer-term reforms; he referenced other legislative vehicles, including SB 905, as possible avenues for that work.

The hearing concluded without a vote; the chair adjourned the committee to return to floor business and directed the public to submit formal comments through the committee website.