Gavin Newsom picks the West’s most complicated fight

By Noah Baustin, Jeremy B. White, Camille von Kaenel | 08/21/2026 12:48 PM EDT

His final legislative push is angering insurance companies, wildfire victims and local officials — and billions of dollars are at stake.

Gov. Gavin Newsom talks to media after he toured the North Complex Fire zone in Butte County on Friday, Sept. 11, 2020, outside of Oroville, Calif.

Gov. Gavin Newsom talks to reporters after touring the North Complex Fire zone in Northern California in 2020. Pool photo by Paul Kitagaki Jr.

SACRAMENTO, California — With just months left in office, Gavin Newsom is reopening one of California’s most bitter political fights.

At the center of it is a question the state has struggled with for years: When a power company sparks a catastrophic wildfire, who ultimately shoulders the cost?

Newsom took office in the aftermath of the deadly 2018 Camp Fire, which sent Pacific Gas and Electric into bankruptcy and threatened to destabilize the state’s electricity system. Now, as he prepares to leave office and embark on a likely presidential run, he is pushing eleventh-hour legislation that would sharply limit how much utilities can be forced to pay when their equipment sparks a wildfire, in an effort to avoid another financial collapse.

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It is an extraordinarily complex — and risky — undertaking, and almost everyone with a stake in California’s wildfire fights has something to lose.