Two California Democratic lawmakers have introduced a groundbreaking bill that could allow residents and insurance companies to sue oil and gas corporations for damages caused by climate-driven disasters, such as wildfires and mudslides.
The Affordable Insurance and Climate Recovery Act, authored by Sen. Scott Wiener (D-San Francisco) and Sen. Sasha Renée Pérez (D-Pasadena), accuses fossil fuel companies of misleading the public about climate change and contributing to worsening natural disasters.
If passed, California would be the first state in the U.S. to allow such lawsuits, Wiener said during a news conference in Sacramento.
Holding Big Oil Accountable
Speaking alongside consumer protection and environmental groups, Wiener argued that fossil fuel companies have profited immensely while leaving the public to pay for the destruction caused by climate-related disasters.
“We are all paying for these disasters, but there is one stakeholder that is not paying: the fossil fuel industry, which makes the product that is fueling climate change,” Wiener said.
He emphasized that forcing fossil fuel companies to pay their fair share would help stabilize California’s struggling insurance market and support homeowners and businesses impacted by natural disasters.
Wildfires and the Insurance Crisis
The proposal comes as Southern California recovers from deadly wildfires that have killed at least 28 people and burned over 35,000 acres.
Due to the increasing number of climate-driven disasters, seven of the top 12 insurance companies in California have paused or reduced coverage in the past 18 months. Many property owners are now relying on the FAIR Plan, a last-resort state-run insurance option.
Under the new bill, insurance companies—including those under the FAIR Plan—could file lawsuits against fossil fuel corporations to recoup losses from climate-related damage.
Sen. Pérez, who represents a district heavily impacted by the Eaton Fire, argued that the fossil fuel industry has long known about the consequences of climate change but failed to act responsibly.
“Now, communities like mine are paying the price, and it’s time for Big Oil to take responsibility,” Pérez said.
Opposition from the Oil Industry and Republican Lawmakers
The bill has faced immediate backlash, particularly from oil industry representatives and Republican lawmakers.
The Western States Petroleum Association (WSPA), which represents oil and gas companies across five states, strongly opposes the measure.
“State lawmakers are using the wildfires to scapegoat the industry,” said Catherine Reheis-Boyd, president and CEO of WSPA. “We need real solutions to help victims in the wake of this tragedy, not theatrics. Voters are tired of this approach.”
Criticism from Republican Leaders
State Sen. Roger Niello (R-Roseville), vice chair of the Senate Insurance Committee, criticized the bill, calling it a misguided political move.
“This furthers the false narrative that this is all about climate change. It is of course much more complicated than that,” Niello said.
He argued that poor forest management and budget cuts to firefighting services have also played a role in California’s wildfire crisis.
“Do those issues have anything to do with the conflagration that we’ve seen in Southern California? I think so,” Niello stated.
He then challenged Wiener and Pérez, asking whether their bill would also allow lawsuits against state and local leaders who have allegedly failed to manage fire prevention efforts properly.
What’s Next?
If the Affordable Insurance and Climate Recovery Act moves forward, it could set a legal precedent for holding fossil fuel companies financially responsible for climate-related disasters.
However, with strong opposition from the oil industry and Republican lawmakers, the bill is likely to face heated debates in the California Legislature.
What do you think? Should oil companies be held liable for climate-related disasters, or is this bill unfairly blaming them?
