California Governor Gavin Newsom has signed an executive order aimed at strengthening the state’s ability to respond to climate-related disasters and reduce their economic consequences, particularly in the insurance and energy utility sectors. The directive calls for collaboration among multiple state agencies to develop tools and strategies that mitigate risks associated with increasingly frequent and severe natural events. n nThe move follows a series of devastating wildfires across the state, including January fires that caused over $250 billion in damages and economic losses and claimed at least 29 lives. Over the past four decades, California has experienced at least 46 weather or climate disasters each exceeding $1 billion in losses, according to the National Centers for Environmental Information. These include 19 wildfire events, 14 droughts, six floods, three freezes, and four severe storm incidents. n nNewsom’s order seeks to ensure fair cost distribution for recovery efforts, improve access to insurance, and provide financial support for wildfire survivors. It builds upon Senate Bill 254, signed on September 19, which renews the California Wildfire Fund, protects ratepayers from utility liability costs, and mandates a report by April 2026 on innovative approaches to climate disaster response. n nThe executive order, issued on September 30, directs the wildfire fund administrator to work with experts from the California Public Utilities Commission, the Office of Energy Infrastructure Safety, the Department of Insurance, the Office of Emergency Services, and the Department of Forestry and Fire Protection to gather necessary data for the upcoming analysis. n nThis action is part of a broader legislative package designed to lower electricity costs, stabilize the gas market, cut greenhouse gas emissions, and accelerate the transition to clean energy. n n“In the face of climate-driven crises, there’s no partisan divide—red and blue states alike, and nations worldwide, are grappling with this insurance emergency,” Newsom stated in a press release. “We’re mobilizing a comprehensive government response to protect Californians from wildfires, expand coverage options, and reduce costs.” n
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California Gov. Newsom signs EO targeting economic impact of climate change
This audio is auto-generated. Please let us know if you have feedback. n nDive Brief: n nCalifornia Gov. Gavin Newsom signed an executive order last week geared toward accelerating the state’s response to climate-driven disasters and mitigating their economic impact, particularly on the insurance market and the energy utility sector. n nThe order calls for multiple state agencies and departments to partner on research and establish guidance to develop tools and solutions to help the state better mitigate the risk associated with natural disasters. California has experienced deadly wildfires throughout the year, with the January fires estimated to have caused over $250 billion in damages and economic loss and at least 29 deaths. n nAmid the growing frequency and scale of climate driven events, Newsom’s directive seeks to “fairly allocate the costs of recovering” from such catastrophes, improve insurance availability and accessibility and ensure monetary compensation for wildlife survivors, among other measures. n nDive Insight: n nThe executive order came shortly after Newsom signed a package of bipartisan bills that aim to reduce electricity costs for California residents, stabilize the gas market, slash greenhouse gas emissions and help the state transition to a clean energy economy. n nThe package of reforms Newsom signed Sept. 19 includes Senate Bill 254, which seeks to establish the next generation of the California Wildfire Fund, support wildfire survivors and safeguard ratepayers from paying utility liability costs. The bill also directs the state’s wildfire fund administrator to put together a report on novel approaches to responding to climate disasters, including wildfires, by April 2026. n nThe California governor’s Sept. 30 executive order builds on SB 254’s mandate and instructs the state agencies to collaborate with the wildfire fund administrator on the information gathering process needed for that analysis. The EO directs the wildfire fund administrator to continue to consult with members and subject-matter experts from the California Public Utilities Commission, the Office of Energy Infrastructure Safety, the Department of Insurance, the Office of Emergency Services and the Department of Forestry and Fire Protection before compiling the report. n nCalifornia has experienced an uptick of extreme climate-related catastrophes in the past four decades, with many events leading to severe economic loss. Between 1980-2024, the state underwent at least 46 weather or climate disaster events that spurred losses exceeding $1 billion each, according to the National Centers for Environmental Information, a division of the National Oceanic and Atmospheric Administration. These included 14 drought events, six flood events, three freeze events, four severe storm events and 19 wildfire events, per NOAA. n n“There’s no Republican or Democrat thermometer — red and blue states alike, and countries around the world, are facing this climate-fueled insurance crisis,” Newsom said in a Tuesday press release. “We’re taking a whole-of-government response to protect Californians from wildfire while boosting coverage options and bringing down costs.”