As Climate Disasters Create an Insurance Crisis, a California Bill Seeks to Make Fossil Fuel Companies Pay
A California bill aims to make fossil fuel companies pay for climate damages to help shore up the state's insurance market. The bill, introduced by Democratic state Sen. Scott Wiener, would empower the state's attorney general to sue fossil fuel companies.
California Senate Bill 982, also known as the Affordable Insurance and Recovery Act, aims to make fossil fuel companies pay for climate damages. The bill, introduced by Democratic state Sen. Scott Wiener, would empower the state's attorney general to sue these companies. The move comes as insurance companies have retreated from California due to destructive wildfires, significantly increasing policy costs. The bill would create a fund to support the California FAIR Plan, an 'insurer of last resort,' and help communities reinforce their homes against extreme weather. Industry groups oppose the bill, claiming it is too broad and unconstitutional. The bill targets companies with a market cap or worldwide annual revenue of $500 million involved in fossil fuel extraction, production, or sale.
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