California State Senate Fails to Allow Big Oil Accountability for Climate Disasters
WASHINGTON — After a hearing before the Judiciary Committee in the California State Senate, the proposed Affordable Insurance and Climate Recovery Act (SB 222), failed to move forward after the committee voted 5 in favor to a combination of 7 against and abstentions. The Bill, introduced by California State Senator Scott Wiener, would have shifted the burden of increased insurance costs away from California ratepayers, and onto the fossil fuel companies driving the climate crisis by incenting insurers to sue them for damages in a process known as subrogation. Further, the legislation would have allowed the victims of major climate disasters to seek damages from fossil fuel companies in court.
Below are a series of quotes from organizations that supported the bill:
“The work California Senator Scott Wiener took on in his efforts to protect insurance ratepayers and shift some of the burden of climate disasters onto Big Oil is remarkable. To watch the cowardice of his colleagues as they voted against the measure was horrifying. While climate disasters like the LA fires decimate communities, Big Oil rakes in profits. Meanwhile, working people pay the price as insurers flee the state or attempt to pass the bill for climate disasters onto ratepayers, leaving people without money to rebuild. The people of California deserve leaders willing to stand up to Big Oil like Senator Wiener. ” — Rick Morris, climate and insurance campaigner with Public Citizen’s Climate Program.
“Two months ago, the insurance commissioner decided to make homeowners pay for a $500 million bailout for state insurers, a giveaway offered before the start of peak fire season. How long will the people of California put up with this strategy?,” asked Alex Martin, climate finance policy director with Americans for Financial Reform. “This bill would have offered an avenue to make the responsible parties pay, and until it passes, the people of California will remain on the hook through no fault of their own.”
Center for International Environmental Law Staff Attorney, Financial Strategies, Conor MacDonald adds, “The California legislature passed on its opportunity to encourage insurers to hold fossil fuel companies accountable for fossil fuel industry-driven catastrophes across the state, as seen in the recent fires and the historic losses for homeowners and record-high insurance claims they caused. Instead, the financial responsibility for these catastrophes continues to rest with California homeowners — the real victims of climate change.
“It is essential that we hold those profiting from the climate crisis legally accountable, as families face rapidly increasing premiums, are abandoned by insurers, and are forced to bear the heavy cost of this crisis.”
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