A wildfire liability bill that would have created a fast-pay program for Eaton Fire survivors died Tuesday, Sept. 1. Assembly Speaker Robert Rivas declined to bring Senate Bill 492 to a floor vote on the session's final day.

The bill had been negotiated over nearly a month of closed-door talks. Gov. Gavin Newsom and legislative leaders announced a compromise over the Aug. 29-30 weekend. But the deal collapsed within days under pressure from utilities, and the Assembly never voted.

Assemblymember John Harabedian, a Pasadena Democrat who represents the Eaton Fire burn zone, said the bill failed his community. "SoCal Edison burned down my community and hasn't spent a dime reinvesting in Altadena," Harabedian said in a statement reported by Colorado Boulevard.

What the bill would have done

The compromise version of SB 492 would have established a fast-pay program requiring valid claims to be determined within 60 days and settlement offers within 30 days after that. Survivors could still sue utilities. The bill also would have banned private equity firms from buying insurance claims.

A separate provision would have barred utility CEO bonuses in years their companies caused fatal fires resulting in more than $1 billion in damage, according to the Pasadena Star-News.

None of those provisions will take effect.

Why it died

Rivas told reporters the proposal contained "some half measures" and that Californians deserved more. He said Newsom did not ask him to shelve the bill, according to the Los Angeles Times.

The chief executives of PG&E and Southern California Edison wrote to legislative leaders Aug. 31, warning that the two utilities had collectively lost $20 billion in market value since Aug. 27, CalMatters reported via LAist. After the bill died, Edison stock gained 7.3% on Sept. 1 and PG&E shares rose 6%, according to the Times.

Jamie Court, president of Consumer Watchdog, called the outcome tragic. Every Fire Survivors Network and Consumer Watchdog said in a joint statement that the utilities preferred to kill the bill rather than accept a compromise that rejected the bailout they sought.

What it means for Pasadena

The Eaton Fire in January 2025 killed 19 people, destroyed or damaged more than 10,000 structures and scorched over 14,000 acres in Altadena, Pasadena, Sierra Madre and adjacent neighborhoods. Los Angeles County fire investigators determined Southern California Edison equipment caused the blaze. More than 11,000 households have filed suit against the utility.

Despite that finding, Edison's profit in 2025 rose more than 200%, from $1.3 billion in 2024 to $4.5 billion, the Times reported.

Harabedian said the market reaction to the compromise deal amounted to "hysteria" and that the market had "false expectations" about what the Legislature could accomplish in its final weeks.

What comes next

Newsom's spokesperson said only "Stay tuned" when asked Sept. 1 whether the governor would call a special session on wildfire liability, according to the Daily Bulletin. Newsom leaves office in January.

Assemblymember Cottie Petrie-Norris (D-Irvine) said the Legislature plans to hold hearings this fall on wildfire costs.