As Los Angeles grapples with recovery from yet another onslaught of wildfires, California legislators are creating a new bill to address the insurance affordability crisis. State Senator Scott Wiener, a Democrat from San Francisco, has introduced the Affordable Insurance and Climate Recovery Act, which seeks to shield Californians from soaring insurance costs and hold major fossil fuel companies accountable for their contribution to climate disasters.
The bill, known as SB 222, proposes that the financial burden of increased insurance costs due to climate-related damage should no longer fall primarily on the shoulders of California policyholders. Instead, it would shift some of that responsibility onto the fossil fuel companies whose practices have contributed to a rise in climate disasters. According to California State Senate District 11, Senator Wiener emphasized the importance of making "victims of climate disasters whole" by enabling them to pursue damages from the companies responsible in court.
SB 222's supporters, including Assemblymember Al Muratsuchi and Senators such as Sasha Renée Pérez and Lena Gonzalez, argue that the impact of climate change demands decisive legal remedies. They assert that oil companies have known for decades about the potential impact of their emissions on the climate but have failed to act responsibly. Renée Pérez articulated the urgency of these measures, citing the Eaton Fire as a catalyst for demanding justice and accountability. As per the Senate's news release, she stressed, "Our communities have never seen anything like this in urban Los Angeles."
The reality of climate disasters is reflected in the state's staggering statistics. Damage from the Palisades fire alone has racked up an estimated $250 billion, with an additional $4.5 billion in damage from atmospheric rivers hitting Northern California in 2024. These events have pushed up insurance prices and led to policy nonrenewals for millions of Californians. Senator Stern pointed out the unfortunate reality that currently, the financial stopgap for wildfire insurance funds is other Californians rather than those who caused these fires to become more dangerous with their pollution.
Advocacy groups like the Center for Climate Integrity and Consumer Watchdog are backing SB 222, citing the need for relief for victims and accountability from major polluters. They align with the sentiments expressed by Sierra Kos of Extreme Weather Survivors, who said, as recounted by California State Senate District 11, "The oil and gas companies who helped cause this steep rise in extreme weather events across the country – including the LA fires – should have to chip in too."
