California considers letting victims of natural disasters sue oil companies for damages due to climate change

Oil and gas companies could be held financially responsible for damages caused by climate change-related disasters in California under a bill introduced Monday by two Democratic lawmakers.

The legislation argues that the oil industry deliberately misled the public about the dangers of fossil fuels and their role in driving climate change, which has worsened wildfires, storms, and other disasters, causing billions of dollars in damages across the state.

Aerial footage from the aftermath of the Palisades Fire in Los Angeles on January 27, 2025, shows the scale of destruction.

According to supporters of the bill, these climate-driven disasters have pushed California’s insurance market into crisis. Insurers are raising premiums, restricting coverage, or pulling out of high-risk regions altogether.

Currently, state law holds utility companies liable for damages if their equipment sparks a wildfire. The same standard should apply to oil and gas companies for their role in fueling climate change, said Robert Herrell, executive director of the Consumer Federation of California. "They should be held accountable for their massive contribution to these fires driven by climate change," Herrell said.

The bill aims to ease the financial burden on disaster victims and struggling insurance providers by allowing them to sue the oil industry to recover their losses. It would also allow the state’s Fair Access to Insurance Requirements Plan—a safety net for homeowners unable to secure insurance elsewhere—to do the same, helping prevent insolvency.

If passed, California would become the first state in the nation to allow such lawsuits, said state Sen. Scott Wiener, who authored the bill.

“We are all paying for these disasters,” Wiener said at a press conference on Monday. “But there is one group that’s not paying: the fossil fuel industry, which profits from the very product driving climate change.”

The proposal is expected to face fierce opposition from oil and gas companies, which have already suffered multiple defeats in California as the state pivots toward aggressive climate action.

The Western States Petroleum Association, which represents oil and gas companies in five states, has signaled it will fight the measure. Association President and CEO Catherine Reheis-Boyd accused state lawmakers of using wildfires to unfairly “scapegoat” the industry.