Governor Newsom Signs Executive Order to Address Economic Consequences of the State’s Climate and Wildfire Crisis

September 30, 2025 – Governor Gavin Newsom signed an executive order that calls for multiple state agencies and departments to collaborate on research and recommendations to develop long-term durable tools to mitigate and fairly allocate the costs of recovering from natural catastrophes, further stabilize the insurance market and utility sector, make insurance more affordable and accessible, protect ratepayers, ensure compensation for wildfire survivors, and more. The Order will expedite the state’s work to undertake the analysis called for in SB 254.

What’s included in SB 254?

SB 254 will create the next generation of the state’s Wildfire Fund to support wildfire survivors and protect ratepayers from excessive utility liability costs. One major component of SB 254 directs the state’s wildfire fund administrator to prepare a report by April 2026 analyzing new approaches to responding to catastrophes, including wildfires. This executive order expedites the state’s work to undertake that analysis, reflecting the Governor’s urgency to protect Californians from the costs of catastrophic wildfire, and other climate threats and natural disasters.

Updates to the Wildfire Fund:

The California Earthquake Authority (CEA), as the Wildfire Fund Administrator, will evaluate and prepare a report on innovative and durable reforms to California’s energy utility and insurance markets in the face of the state’s growing exposure to natural catastrophes. CEA will collaborate with several state agencies on the study and has issued a call for stakeholder contributions to the study. Those with an interest in California’s natural catastrophe resiliency are encouraged to participate and share their expertise.