Climate change is no longer a future problem—it’s here, and Californians are feeling its effects more than ever. From devastating wildfires to catastrophic flooding, the state has been on the front lines of extreme weather events, and these disasters are taking a huge toll on the state’s and individuals’ lives and wallets. But now, a new bill in the California State Legislature aims to hold fossil fuel companies accountable for their role in fueling the climate crisis—and it could provide much-needed relief for both victims of climate disasters and insurers.
What is SB 222?
Senate Bill 222 (SB 222), introduced by State Senator Scott Wiener (D-San Francisco) and Senator Sasha Renée Pérez (D-Pasadena), would create a legal pathway for individuals and insurers to sue fossil fuel companies for damages caused by climate disasters. The bill claims that oil and gas companies have misled the public about the impact of their products on climate change, and this misinformation has contributed to increasingly severe weather events in California.
If the bill passes, Californians who experience property damage or bodily harm from these disasters would be able to sue the responsible fossil fuel companies for compensation. The bill also provides a route for insurers, including the California FAIR Plan (the state’s insurer of last resort), to recover the costs of claims related to climate change-related damages.
How Does the Bill Work?
Under SB 222, people who have suffered damages of $10,000 or more due to a climate disaster can file a lawsuit against the companies they believe are responsible. The key here is that the companies would be held liable for their role in spreading misleading or deceptive information about the link between fossil fuel products and climate change.
The bill makes it clear that fossil fuel companies would be jointly, severally, and strictly liable for the damages caused, meaning they could be held fully accountable for the harm they’ve caused. And if plaintiffs win their cases, they would be entitled to full compensation, including noneconomic and punitive damages, to ensure that they are made whole.
This would also apply to all Californians who are impacted by climate disasters, such as wildfires and floods, as the bill defines these events as “injuries in fact” for residents harmed by them. Essentially, the bill gives any California resident who’s affected by a climate disaster the right to pursue legal action against fossil fuel companies.
What About Insurance?
The bill isn’t just about helping individuals—it also gives a boost to the insurance industry. In recent years, insurance companies in California have struggled with rising costs due to climate disasters. To address this, SB 222 would allow insurers to seek damages from fossil fuel companies for the costs they pay out on climate-related claims.
The California FAIR Plan, a state-backed insurance program for people who can’t find coverage through private insurers, would be able to sue these companies on behalf of policyholders affected by large-scale wildfires or other climate-related disasters. This could help reduce the burden on both insurers and homeowners who have seen their premiums skyrocket.
The bill also includes provisions for an independent advisory body that will assess the financial impact of climate disasters on the FAIR Plan and guide insurers on whether they should pursue subrogation (seeking reimbursement from the responsible party). This could ultimately help stabilize California’s insurance market, which has been facing huge challenges as insurers pull out of the state due to the increasing risk of climate-related events.
Why Does This Matter?
SB 222 is about more than just lawsuits—it’s about holding the fossil fuel industry accountable for the climate crisis they’ve helped create. California is already experiencing the harsh realities of climate change, and these disasters are only going to get worse. By passing this bill, lawmakers are saying that the companies that have contributed the most to the problem should help pay for the damage they’ve caused.
Senator Wiener, who introduced the bill, put it simply: “Californians are paying a devastating price for the climate crisis, as escalating disasters destroy entire communities and drive insurance costs through the roof. By forcing the fossil fuel companies driving the climate crisis to pay their fair share, we can help stabilize our insurance market and make the victims of climate disasters whole.”
Supporters of SB 222 argue that this is an important step in addressing California’s home insurance crisis and ensuring that people who are impacted by climate disasters don’t have to bear the financial burden alone.
The Road Ahead
While SB 222 has garnered support from environmental groups, it’s not without controversy. Many U.S. insurers have significant investments in fossil fuel companies, and there could be potential conflicts of interest when it comes to pursuing legal action against those companies.
Still, experts argue that this bill could create a clearer pathway for insurers to recover costs from fossil fuel companies—especially if states make it a requirement for insurers to take action as a condition for rate increases. Given the mounting financial pressure on both individuals and insurance companies, SB 222 could be a crucial tool for addressing the escalating costs of climate change.
Conclusion
SB 222 represents a bold move to tackle the dual challenges of rising insurance costs and the increasing frequency of climate disasters in California. By holding fossil fuel companies accountable for their role in climate change, the bill provides a legal avenue for both residents and insurers to recover damages and reduce the financial strain caused by wildfires, floods, and other extreme weather events. As the bill moves through the legislative process, it will undoubtedly spark debates on the role of the insurance industry, the fossil fuel sector, and the responsibility they share in addressing the climate crisis.
For Californians who are bearing the brunt of climate change, SB 222 may offer some much-needed relief—and a chance to push back against the companies that have fueled the crisis for far too long.