Yesterday, the California State Senate Judiciary Committee rejected S.B. 222, the Affordable Insurance and Climate Recovery Act. The legislation needed seven votes to pass the committee, but received only five. A full tally of the votes can be found at the bottom of this article. The legislation is dead for this session.
Had it passed, S.B. 222 would have allow victims of climate disasters their insurers or the California FAIR Plan (a publicly supported “insurer of last resort”) to sue oil companies to recoup losses. S.B. 222 points to energy companies that have intentionally misled the government and the public about the impacts that fossil fuel consumption has on creating the current climate disaster.
The legislation, introduced by Senator Scott Wiener (D-SF) would have been the first of its kind in the country. Supporters hoped that it would become a model for other states as natural disasters become more common and powerful as a result of global warming.
“Californians are paying a devastating price for the climate disasters that have and will continue to wreak havoc on our state. Tens of thousands of people in Southern California have lost their homes and large swaths of their community in the recent fire that was the most destructive in the recent history of our state,” Wiener stated in a press event earlier in the day. An embed of the press event can be found at the bottom of this article.
“And it happened in the middle of winter,” he concluded.
Wiener pointed out that fires aren’t the only climate disasters in the state, noting that mudslides and floods are also increasing statewide.
Opponents argued that the legislation would increase the cost of utilities, drive up prices at the gas pump for Californians, and would have disrupted supply chains by increasing the cost of transportation. A report by the California Center for Jobs, a non-partisan think tank founded by business interests last decade, calculates the potential increases in Special Report: Consumer & Fiscal Impacts of S.B. 222:
Businesses facing massive litigation costs will pass expenses to consumers, leading to higher energy prices—gasoline could jump 63% to $7.38 per gallon, diesel 69% to $8.23, and electricity rates could rise up to 55% for industrial users. Natural gas prices would spike 76% for residential customers, increasing heating and cooking costs.
Housing costs will also climb sharply, with homeowners paying $1,161 more per year and renters facing an extra $1,692 annually due to rising utility costs.
…Overall, households could lose up to $6,200 per year in disposable income, worsening affordability challenges and forcing more residents and businesses to consider leaving the state.
Melissa Romero, the policy director with Environmental Voters of California took the opposite position, arguing that savings in the insurance market would offset any increased energy costs. State Farm, the state’s largest property insurer, was also in Sacramento yesterday asking for permission to raise their premiums, claiming that if they can't they would risk going out of business in California. The increased premiums, which would likely be passed on to renters, could increase homeowners insurance by nearly $850 a year.
Work on this legislation began in previous sessions, but it was formally introduced at the end of January, weeks after fires devastated housing in several Southern California communities. Moira Morel, a resident of Altadena who lost her home in the Eaton Fire, spoke about the impact the fire had on her life.
“Everything we owned is burnt to the ground. Explaining to my son that everything he owned, that he loved, is gone..was one of the hardest things I ever had to do,” she began. “Every time we go to a new place, he asks, ‘how do you know we’re safe here..”
“These companies are denying what’s happening because it benefits them,” she continued. “Homeowners, renters, regular Californians all over the state are picking up the tab for these disasters. What we’re asking is why?”
Moira’s story is sadly far from unique.
“The Eaton Fire destroyed over 9,000 structures in my district, wiping out almost the entire town of Altadena, leaving thousands of my residents calling for justice and accountability,” wrote Sen. Sasha Renée Pérez (D-Pasadena), who co-authored S.B. 222. “The Affordable Insurance and Climate Recovery Act will hold the oil industry responsible for the damage it has inflicted, and provide relief for future communities impacted by climate disasters.”
In addition to Wiener and Renée Pérez, SB 222 was co-authored by Lena Gonzalez (D-Long Beach), Caroline Menjivar (D-San Fernando Valley), Henry Stern (D-Los Angeles), Jerry McNerney (D-Stockton) and Assemblymembers Al Muratsuchi (D-Torrance) and Dawn Addis (D-Morro Bay).
S.B. 222 was sponsored by the Center for Climate Integrity, California Environmental Voters, and Extreme Weather Survivors.
It was opposed by a wide variety of business associations, labor groups, and oil and gas representatives, including the Western States Petroleum Association and the State Building and Construction Trades Council of California
Senate Judiciary Vote on SB 222, April 8, 2025:
Yes
Ben Allen (D-Santa Monica)
John Laird (D-Santa Clara)
Henry Stern (D-Los Angeles)
Akilah Weber Pierson (D-La Mesa)
Scott Wiener (D-SF)
No/Abstention (abstentions are effectively a no vote)
Angelique Ashby (D-Sacramento) - Abstain
Jesse Arreguín (D-Berkeley) - Abstain
Maria Elena Durazo (D-Los Angeles) - Abstain
Tom Umberg (D-Anaheim) - Abstain
Anna Caballero (D-Merced) - No
Roger Niello (R-Sacramento) - No
Suzette Martinez Valladares (R-Ventura) – unsure if no or abstain
