California Governor Gavin Newsom is pursuing legislation to modify how utilities are held financially responsible for wildfire damage. The proposal, announced as the final legislative session of his governorship draws to a close, would cap utility payments to victims, allow insurers to assume more liability for property loss, and impose fines on utility executives and shareholders if a fire caused by their equipment exceeds $1 billion. Newsom says the current system, which obliges utilities to pay damages regardless of negligence, is unsustainable as wildfire costs rise and the state’s wildfire fund approaches exhaustion. Survivors and advocacy groups argue the plan favors utilities over fire victims, while insurance companies warn that rates could increase. A coalition of the state’s major utilities — PG&E, Southern California Edison and San Diego Gas & Electric — has urged lawmakers to adopt the measure. The Legislature must act by August 31, or Newsom could convene a special session. Lawmakers have not detailed a final agreement, though a supplemental $18 billion was approved last year to bolster the wildfire fund. An economist at UC Berkeley notes that climate‑driven fire intensity and infrastructure decisions complicate the question of liability distribution. Newsom has said he will not leave the issue for his successor.