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California lawmakers block bill that could hold oil companies liable for millions in climate disaster damages

Jacob Shelton April 10, 2025

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Justin Hughes, left, Randy Ramirez and Steven Wells, right, of Bridwell Oil Company, work in an injection well on the Bridwell River Ranch. Progress Ed 2019 Oil Industry 3

Sacramento, California – California lawmakers have rejected a bill aimed at holding oil and gas companies accountable for the damage caused by natural disasters linked to climate change. The bill, which would have allowed victims of fires, floods, and hurricanes to sue fossil fuel companies for damages, was blocked by the Senate Judiciary Committee late Tuesday. Several Democrats abstained from voting, and the bill may be reconsidered later this year.

The proposed legislation would have allowed victims of natural disasters to seek damages of at least $10,000 from fossil fuel companies, as well as allowing home insurers to file claims for compensation. The bill was introduced shortly after the devastating Los Angeles-area wildfires in January, which destroyed thousands of homes and caused at least 30 deaths.

Opponents of the bill argued that it could raise gas prices and harm jobs in the energy sector. They also expressed concerns about the difficulty of proving a specific company’s responsibility for a particular disaster. State Sen. Anna Caballero, who represents parts of the Central Valley, emphasized that the bill would not help rebuild homes in fire zones and that it could create more litigation rather than a solution for disaster survivors.

However, State Sen. Scott Wiener, who authored the bill, rejected the argument that it would lead to higher gas prices. He stated that the bill was intended to hold the fossil fuel industry accountable for its role in climate change and the resulting natural disasters. He called the vote a setback for disaster victims, particularly those affected by the Los Angeles wildfires.

The failed bill follows previous efforts in California to hold oil companies accountable for health problems caused by proximity to oil wells, which were also blocked by lawmakers. The state’s climate policies, however, continue to face challenges, particularly from federal lawmakers under the Trump administration.

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