As lawsuits begin to pile up seeking to extract paydays in the name of victims of the Los Angeles area wildfires, California Democratic state lawmakers have moved to allow consumers, insurance companies and even the state of California itself to drag oil companies into court over such wildfires or any other time a natural disaster strikes in California.
Representatives of the oil and gas industry, however, say the legislation represents an attempt by California Democrats to distract from their own policy failures and "scapegoat" an essential industry "for political gain."
California State Senator Scott Wiener, D-San Francisco, announced the new legislation, designated as Senate Bill 222, on Jan. 27.
Catherine Reheis Boyd
| Western States Petroleum Association
Wiener said SB 222, which he called the California Climate Insurance Recovery Act, would force petroleum companies to be "part of the solution" to some of the state's most expensive and vexing policy problems.
In announcing the legislation, Wiener began with the presumption that the Palisades and Eaton fires in the Los Angeles area this winter are to be blamed in large part on the effects of so-called "climate change."
He further pinned the blame for damage caused by "extreme storms" in northern California and other natural sources on "climate change," as well.
And Wiener laid the blame for those problems at the feet of oil and gas companies, who he said "make the product that is fueling climate change." While he did not name the product, Wiener presumably meant to include gasoline and diesel motor fuels that power automobiles, locomotives and other vehicles essential to the economies of the U.S. and California, as well as natural gas used to heat homes, industrial furnaces and some electricity-generating power plants.
Wiener said SB222 is an attempt to use lawsuits to force oil and gas companies to pay insurance companies and state and local governments for damages caused by wildfires and other disasters he said are connected to "climate change," and by extension, to emissions generated by using so-called "fossil fuels."
Wiener asserted this would allow the state to solve two problems: Finding money to fund disaster recovery operations and giving insurance companies a new outlet from which to extract money, rather than only raising insurance premiums.
Wiener said SB222 was co-authored by environmental activist organizations, including California EnviroVoters and the Center for Climate Integrity. He also noted it drew support from the Consumer Federation of California, a left-wing group advocating for "laws that place consumer protection ahead of corporate profit," according to its website.
The legislation has drawn co-sponsors from other Democrats in the state Senate and state Assembly, Wiener said, including state Sen. Sasha Renee Perez, D-Pasadena, whose district includes Altadena, which was ravaged in the Eaton fire.
"Our communities have never seen anything like this in urban Los Angeles," Perez said in a prepared statement. "The reality is that climate change is here and will continue impacting communities everywhere. What makes this worse is decades ago, Big Oil knew this would be our future, but prioritized lining their own pockets at the expense of our environment and the health of our communities.
"The Affordable Insurance and Climate Recovery Act will hold the oil industry responsible for the damage it has inflicted, and provide relief for future communities impacted by climate disasters.”
SB222, however, drew quick criticism and jeers from Republicans and industry sources.
They noted that in the wake of the Palisades and Eaton fires, Gov. Gavin Newsom, L.A. Mayor Karen Bass and other Democratic state officials have come under criticism from President Donald Trump and others for policies that critics say, at best, made the fires worse.
Critics said SB222 represents an attempt by California Democrats to use the Palisades and Eaton fires to further their goals of ultimately bankrupting the oil and gas industry in California and speed the state's desired policy goals of transitioning towards so-called "green energy."
These included decisions to block or slow projects to manage undergrowth in forests and brushland near the Pacific Palisades and Alatdena communities, as well as elsewhere in California; decisions to delay the construction of new reservoirs and other critical water management infrastructure to increase the supply of water in southern California and elsewhere; and local decisions that made fighting the fires more difficult, such as draining the Santa Ynez reservoir near Palisades in February 2024, leaving it empty when fire burned Pacific Palisades.
While the fires are still burning, lawsuits have been filed in Los Angeles County Superior Court against both power company Southern California Edison and the Los Angeles Department of Water and Power, saying they should be blamed for one or both fires. Many more lawsuits are expected to follow.
In response to the filing of SB222, Orange County Republican Chairman Will O'Neill blasted state Democrats for the legislation in a post on the X social media platform, saying:
"Reservoirs sit empty. Hydrants run dry. Mayor is in Ghana. Heavy regulations ruin the home insurance market. Poor fire fuel management. On and on.
"Sacramento’s response: blame and sue oil companies.
"These are not serious people."
The Western States Petroleum Association, which lobbies on behalf of oil and gas companies operating in California, said it was "a shame that Sen. Scott Wiener and Sen. Sasha Renee Perez see the Los Angeles fires as nothing more than a political opportunity."
"We need real solutions to help victims in the wake of this tragedy, not theatrics. Voters are tired of this approach," said WSPA President and CEO Catherine Reheis-Boyd.
“Every day, consumers, including Sen. Wiener, rely on and choose to use gasoline-powered cars and purchase products made from fossil fuels. Our economy depends on oil and gas even as California looks to reduce its carbon footprint. The vulnerabilities in the existing oil and gas infrastructure must be addressed. Otherwise, technical realities will get in the way of aspirational goals if left ignored.
“The announcement of today’s proposal is the latest installment of an ongoing effort to scapegoat our industry - and the thousands of hardworking women and men who keep California running - for political gain, while complex problems continue to go unsolved.”