All comments can be attributed to Neil McCormick, CEO, California Special Districts Association
Anticipated legislation to shift risk from for-profit, investor-owned electric utilities (IOUs) and place that burden on publicly-owned, non for profit local agencies – and their constituents – only makes it more difficult for communities to rebuild and fails to put victims first.
While the Governor’s office has yet to unveil formal language, communication from the Administration has made it clear a proposal framework exists and will be introduced before the end of this legislative session. Despite claims that it holds for-profit IOUs accountable, CSDA is concerned it reduces their financial responsibility and could leave communities without services infrastructure needed to make new, rebuilt homes livable. The only option for special districts, also reeling from losses, would be to pass this enormous cost on to the very residents the Administration and legislators want to protect.
For this reason, CSDA urges our elected leaders to reject any proposal that would:
- Limit the ability of public agencies to recover costs for emergency response or mutual aid.
- Rely on false hopes that that the Federal Emergency Management Agency will provide cost recovery in a timely manner, when there are already ongoing battles for federal funding.
- Prohibit or limit subrogation, which enables insurance companies to pay victims first, and then recover those costs from the IOUs.
- Prevent public agencies from recovering the full cost of new, replacement infrastructure necessary to deliver water, electricity, and vital services to homes.
- Limit recovery of lost property tax revenues needed for essential services.
California should not guarantee corporations profits when things go as hoped and then allow them to shift their costs onto the public sector when they cause damage to our communities.
Any wildfire liability proposal must protect the ability of local service providers, including special districts, to seek full, timely cost recovery from for-profit IOUs responsible for these wildfires. This is what rebuilding communities possible.