Lawmakers in Sacramento will hear a bill to hold oil and gas companies liable for climate-related disasters.
Senate Bill 982 would authorize the Attorney General to sue to recover damages after a natural disaster linked to climate change, like floods or wildfires. A new climate disaster fund could stabilize the state’s FAIR Plan, which is the insurer of last resort in areas abandoned by commercial insurance carriers.
Marisa Aguayo lost her San Diego area home in a flood in 2024. She said her $250,000 insurance policy was insufficient and then the company canceled her policy altogether.
"It was complete devastation," Aguayo recounted. "The insurance process felt like being revictimized and it feels like we're living in a state of overwhelm every single day."
The Western State Petroleum Association called the Affordable Insurance and Recovery Act a $32 billion climate tax which could raise the cost of energy production and lead to higher prices for gas and utilities.
Supporters said something has to be done to save the FAIR plan, which has tripled in size since 2021 and currently insures nearly $700 billion worth of property.
Louise Belley, a Santa Ana homeowner with the group Indivisible, said homeowner’s insurance has shot up since the Los Angeles fires, even for people far from the burn scar.
"The oil companies can help solve this problem," Belley contended. "There (are) going to be more climate-related disasters in the future. Someone's gonna have to pay for it, and I think they should be held accountable."
Studies have linked the burning of fossil fuels to climate change and have tied climate change to the rising frequency of extreme weather events. Belley argued average homeowners should not have to bear the cost of climate change.
"The Attorney General would ensure that the oil and gas companies contribute to a climate disaster fund," Belley explained. "It could be used for community resiliency efforts and for future climate-related disasters."
The AIR Act is cosponsored by three nonprofit advocacy groups: Extreme Weather Survivors, California Environmental Voters and the Center for Climate Integrity.
Source: Public News Service
