California lawmakers race to overhaul wildfire liability rules before deadline

California lawmakers and Gov. Gavin Newsom are racing to reach a deal on changes to the state's wildfire liability system, with just days remaining before the legislative session ends.

The proposed reforms could affect how wildfire victims are compensated and how much utilities such as PG&E are responsible for paying after fires linked to their equipment.

Will Abrams remembers the final moments before his home was destroyed in the 2017 Tubbs Fire.

"Kids under your arms running out of the house on fire," Abrams said.

Nearly a decade later, Abrams is concerned the proposed changes could hurt wildfire survivors like him. 

"What I'm concerned about is they are trying to put window dressing around a burning house," Abrams said.

One proposal under discussion would create a so-called "fast pay" system designed to get money to wildfire victims more quickly.

Abrams said faster compensation could come at too high a cost if survivors are required to give up their ability to pursue additional damages.

"Certainly get me money fast, but if that means I have to forgo rights in the future and can't go after every red cent that I'm owed from this perpetrator of this fire, that is not a tradeoff we should be forcing upon victims," Abrams said.

Democrats and Republicans are expected to consider multiple bills addressing wildfire liability, utilities and compensation for victims.

"These are the real policy challenges that Californians expect us to talk about, debate — come to consensus, if we can," Assemblymember Bryan Isaac (D-Los Angeles) said.

Assemblymember Joe Patterson (R-Rocklin) said his priority is making sure wildfire victims are compensated rather than protecting utilities from financial consequences.

"I have zero interest in bailing out the utility — like none," Patterson said.

PG&E is among several utilities that have formed a coalition supporting changes to the current system under the banner "Wildfire Victims First." The coalition argues California is facing both an affordability crisis and a wildfire crisis and says the existing system is failing victims.

Mark Toney, executive director of The Utility Reform Network, said lawmakers need to move quickly.

"We are in a race with time," Toney said. "We need to cut out third parties, insurance companies. We need to limit attorneys' fees."

The debate comes as California continues to grapple with the enormous costs associated with devastating wildfires, including compensation claims and the financial pressure those liabilities can place on utilities and ratepayers.

California's legislative session ends Monday, and lawmakers face a tight timeline to advance any final wildfire liability legislation.

Bills must be in print at least 72 hours before lawmakers vote on them, meaning lawmakers have only until Friday to introduce legislation that could be considered before the session ends.