Electric Utility Wildfire Liability Reform in California

摘要

As climate change leads to increasingly frequent and severe on-the-ground effects in California and beyond, it is clear that society needs to conduct realistic risk assessments in relation to wildfires in the WUI. Most land conversion in the United States is for housing development. Fires are bound to happen everywhere, but the risk is especially severe in the WUI. Consumers want and need electricity. Somebody has to pay for wildfire liability, which, in California, is still placed squarely with the utilities in a strict liability scheme (inverse condemnation). After being linked to a series of wildfires, PG&E filed for bankruptcy, but utilities cannot simply cease to exist. A better legal liability and cost-sharing scheme has to be developed. Some steps toward this objective have been taken.