2026 Session Wrap: California

SB193

Sponsors: Senate Committee on Budget and Fiscal Review

Summary: Senate Bill No. 193 makes significant amendments to the allocation and administration of Californias Greenhouse Gas Reduction Fund (GGRF), which is central to the state’s climate change mitigation and adaptation efforts. The bill maintains and clarifies the continuous appropriations for key climate and community programs, including $200 million for forestry and fire prevention.

SB195

Sponsors: Senate Committee on Budget and Fiscal Review

Summary: Extends and expands the exclusion of certain wildfire mitigation payments from state personal and corporate income taxes. Specifically, the bill extends the tax exclusion for California qualified wildfire loss mitigation payments to taxable years beginning before January 1, 2031, instead of the previous cutoff of January 1, 2029. The definition of a qualified wildfire loss mitigation payment is broadened to include grants, rebates, direct assistance, or other financial aid for wildfire mitigation, home and structure hardening, vegetation management, defensible space, fuel modification, and community wildfire resilience, provided through either the California Wildfire Mitigation Financial Assistance Program or the wildfire mitigation grant program established under the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (Proposition 4).

AB1642

Title: Wildfires: contamination standards.

Sponsors: Asm. John Harabedian

Summary: Establishes statewide standards and guidance for testing, remediation, and restoration of properties contaminated by hazardous substances following wildfires in California. The bill mandates that the Department of Toxic Substances Control (DTSC), in consultation with the Office of Environmental Health Hazard Assessment (OEHHA) and other agencies, develop and adopt regulations for lead and asbestos testing and remediation by December 31, 2028, and publish additional guidance for other contaminants such as heavy metals, cyanide, lithium, manganese, dioxins, and polycyclic aromatic hydrocarbons by December 31, 2029. The State Air Resources Board is also required to develop and publish guidance on indoor air contaminants resulting from wildfire smoke damage by December 31, 2028, with the option to release interim guidance earlier and update it as new data emerges.

AB1795

Title: Smoke Damage Recovery Act.

Sponsors: Asm. Mike Gipson

Summary: Establishes comprehensive standards and procedures for addressing smoke damage to residential properties resulting from wildfires and large-scale urban fires in California. The bill introduces a rebuttable presumption that smoke, ash, soot, or combustion byproducts found in residential properties within a wildfire impact zone are attributable to the wildfire, thereby streamlining insurance claims for affected homeowners. Insurers are prohibited from terminating additional living expense coverage for smoke damage claims until the property is restored to its preloss condition and cleared for human occupancy, as defined by new regulatory standards. The bill mandates that insurers cover the costs of necessary sampling and testing for smoke damage remediation and sets strict timelines for inspections and payments related to claims, with interest accruing for late payments. It also clarifies that claims for recontamination after clearance are to be treated as new claims, subject to policy provisions and deductibles. The legislation requires the California Department of Insurance to develop, by July 1, 2029, training and certification programs for both insurance adjusters and public insurance adjusters who handle wildfire smoke damage claims, ensuring that only qualified professionals assess and process such claims. The Department is also tasked with enforcing these requirements, with violations constituting unfair practices subject to disciplinary action. Additionally, the bill directs the Division of Occupational Safety and Health to propose, by July 1, 2029, new regulations to protect workers involved in the remediation of smoke- or fire-damaged residential properties, including certification requirements and the establishment of a dedicated fund to support these regulatory activities.

AB1847

Title: Mortgage forbearance: state of emergency: wildfire.

Sponsors: Asm. John Harabedian

Summary: Expands and modifies mortgage forbearance provisions for homeowners affected by the Eaton Wildfire, Palisades Fire, and Straight-line Winds disasters declared in January 2025. The bill extends the maximum forbearance period from 12 to 24 months and moves the final deadline for requesting forbearance from January 7, 2027, to January 7, 2029. Borrowers must affirm that their property is uninhabitable due to the wildfire disaster, in addition to experiencing financial hardship.

HR136

Title: Relative to Home Hardening Week.

Summary: Designates the second week of September as ‘Home Hardening Week’ in California. The resolution responds to the increasing frequency and severity of wildfires in the state, which have caused significant property damage and led to a sharp rise in homeowners insurance costs, particularly in high-risk fire zones.

AB35

Sponsors: Asm. David Alvarez

Summary: Expedites the implementation of the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, which was approved by voters as Proposition 4 and authorizes $10 billion in state general obligation bonds for a range of environmental and climate resilience projects. Declared as an urgency statute, AB 35 takes immediate effect to address heightened risks from climate change, such as wildfires and drought, and to ensure timely distribution of funds for public health and environmental protection.

SB168

Sponsors: Senate Committee on Budget and Fiscal Review

Summary: Budget-related amendments and new provisions concerning California’s public resources, energy, climate, wildfire mitigation, and utility regulation. Modifies the administration of the Wildfire Fund and related accounts, clarifying the process for determining and collecting annual contributions from large electrical corporations to ensure timely payment of wildfire claims. It updates the allocation method for prohibiting certain fire risk mitigation capital expenditures from being included in the equity rate base of large electrical corporations and extends the timeline for eligible expenditures to December 31, 2035. The bill further allows funds appropriated in the 2021 Budget Act for the Distributed Electricity Backup Assets Program to be used for the Demand Side Grid Support Program, extending the availability of these funds for encumbrance or expenditure until June 30, 2027.

AB2791

Sponsors: Assembly Committee on Natural Resources

Summary: Modifies the Zberg-Nejedly Forest Practice Act of 1973 by removing the requirement that all trees harvested under the Forest Resilience Exemption be marked by or under the supervision of a registered professional forester before felling. The bill clarifies the conditions under which exemptions for timber operations may be granted, including specific acreage, road construction limits, and requirements for professional oversight and notification to relevant agencies.

ACR179

Title: Wildland-Urban Interface Preparedness and Resilience Day.

Sponsors: Asm. Heath Flora

Summary: Establishes May 1 as Wildland-Urban Interface Preparedness and Resilience Day in California. The resolution recognizes the increasing frequency, intensity, and duration of wildfires in the state, particularly in areas where homes and infrastructure are adjacent to fire-prone wildlands, known as the Wildland-Urban Interface (WUI).

SCR165

Title: California Wildfire Preparedness Week.

Sponsors: Sen. Timothy “Tim” Grayson

Summary: Designates May 3 to May 9, 2026, as California Wildfire Preparedness Week.

AB706

Title: Forest Organic Residue, Energy, and Safety Transformation and Wildfire Prevention Fund Act.

Sponsors: Asm. Cecilia Aguiar-Curry

Summary: Creates the Forest Organic Residue, Energy, and Safety Transformation (FOREST) program, administered by the State Board of Forestry and Fire Protection, to maintain and expand biomass power generation, revitalize idle biomass facilities and support new capacity in regions with high wildfire risk. The program is funded, upon appropriation, from the Timber Regulation and Forest Restoration Fund and the Greenhouse Gas Reduction Fund through a new FOREST Fund, and ratepayer funds may not be used. Eligible facilities must source at least 60% of their feedstock from Tier 1 and Tier 2 high hazard wildfire zones, generate electricity in California after January 1, 2027, and sell to specified retail sellers.

AB1486

Title: Climate resiliency: research farms: grant program.

Sponsors: Asm. Esmeralda Soria

Summary: Implements provisions from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (Proposition 4), which authorized $10 billion in bonds for various climate and environmental projects.

SB1090

Title: Planning and zoning: housing development projects: urban lot splits: subdivisions: 2025 Eaton Wildfire: Altadena.

Sponsors: Sen. Sasha Perez

Summary: Establishes a temporary moratorium, through January 1, 2030, on ministerial (streamlined) approval of housing development and urban lot split applications under the Starter Home Revitalization Act of 2021 in the unincorporated Altadena area of Los Angeles County (ZIP Codes 91001 and 91003), in response to the 2025 Eaton Wildfire. The moratorium applies to applications submitted on or after October 1, 2026. Applications submitted before that date keep their eligibility for streamlined approval if the applicant meets documentation deadlines, and 100% affordable housing projects by qualified nonprofits are exempt.

AB2038

Title: Residential property insurance: cancellations and nonrenewals.

Sponsors: Asm. Rick Zbur; Asm. John Harabedian

Summary: Strengthens residential property insurance protections for disaster-affected homeowners. The bill extends the required renewal period after a total loss from a disaster from at least two annual renewal periods to at least three, provided the loss was not due to the insured’s negligence and the property remains insurable. It also doubles the moratorium on cancellations and nonrenewals for properties within or adjacent to a wildfire perimeter from one year to two years after a state of emergency declaration, when the action is based solely on the property’s location. Exceptions remain for willful or grossly negligent acts by the insured, unrelated losses that make the risk ineligible, and changes that make the property uninsurable.

AB2700

Title: Electrical corporations: wildfire victim restitution shortfalls: report.

Sponsors: Asm. Joe Patterson

Summary: Directs the California Public Utilities Commission to produce a report by January 1, 2028, identifying verified restitution shortfalls for victims of wildfires caused by electrical corporations before July 12, 2019, with a focus on victims of the 2015-2018 PG&E wildfires, and recommending mechanisms to ensure full, fair and timely compensation. Ratepayer funds may not be used; mechanisms must instead rely on tools such as deferred or reduced shareholder dividends, retained earnings, equity contributions or bonds, and restitution must be paid directly to victims rather than attorneys. The commission may not implement the recommended mechanisms without further statutory approval.

AB2724

Title: Catastrophe modeling: distressed areas.

Sponsors: Asm. Rebecca Bauer-Kahan

Summary: Requires the Department of Insurance, by July 1, 2027, and annually thereafter, to review and update the identification of ’distressed areas’ (regions where residents have difficulty obtaining property insurance) using the latest wildland-urban interface designations. The department must publish findings, including a list of affected ZIP Codes, and report to the Legislature, with the option to move to biennial reporting if coverage improves. The bill also replaces the flat penalty for insurers that fail to submit required fire risk reports with civil penalties of up to $5,000 per 30-day period of noncompliance ($10,000 if willful), capped at $100,000.

SB1423

Title: Regional planning: standardized spatial planning datasets.

Sponsors: Sen. Henry Stern

Summary: Requires the Governor’s Office of Land Use and Climate Innovation to compile, standardize and maintain a core set of statewide spatial planning datasets and make them publicly available through a consolidated online platform by July 1, 2028. The datasets cover hazards (such as fire, flood and sea level rise), natural resource sensitivity and agricultural value, and must be updated as new data becomes available. By January 1, 2029, the office must provide guidance on integrating the datasets into regional planning.

SB742

Title: Electricity: electrical infrastructure: permanently abandoned transmission facilities: emergency response: liaisons.

Sponsors: Sen. Sasha Perez

Summary: Directs the California Public Utilities Commission to require electrical corporations to remove permanently abandoned transmission facilities, while keeping safety and wildfire mitigation measures in place until removal. A permanently abandoned facility is one that is out of service with no demonstrated intent to return it to service within a commission-determined timeframe. Wildfire mitigation plans must include an accounting of all transmission facilities, including abandoned ones, and a plan for their removal, with preliminary plans required beginning January 1, 2027

SB894

Title: Wildfire resiliency: financial assistance.

Sponsors: Sen. Benjamin “Ben” Allen

Summary: Establishes the California Wildfire Resilience Loan Program to provide financial assistance for projects that reduce wildfire risk and losses. Eligible activities include home hardening, vegetation management, defensible space, smoke mitigation retrofits and other measures that improve structural survivability. Assistance is available to individual property owners statewide, regardless of property classification or hazard zone, and will not take the form of a property lien. The program is funded upon legislative appropriation, including federal or private funds, but not utility ratepayer funds. The bill also authorizes the Department of Forestry and Fire Protection to provide technical assistance and outreach and to prioritize high-risk areas. No specific funding amount is set.

SB904

Title: Recovery from wildfires.

Sponsors: Sen. Kelly Seyarto

Summary: Strengthens the state’s disaster recovery framework for wildfires that destroy 25 or more residential or commercial structures. Within 10 days of a gubernatorial state of emergency for wildfire, the Office of Emergency Services must determine whether the threshold was met. If so, the Department of Housing and Community Development must recommend state permitting requirements and local procedures that could be suspended or revised to speed rebuilding, with a goal of issuing all necessary permits within 30 days of application.

AB1699

Title: Good Fire Act: Prescribed Fire Liability Pilot Program: burn bosses: California Environmental Quality Act.

Sponsors: Asm. Chris Rogers

Summary: Known as the Good Fire Act, the bill expands California’s use of prescribed fire and cultural burning. It indefinitely extends the Prescribed Fire Liability Pilot Program, previously set to expire in 2028, and opens the Prescribed Fire Claims Fund to losses from prescribed fire and cultural burning on any lands in the state other than those led by the Department of Forestry and Fire Protection or the federal government, including claims by individuals, private entities and California Native American tribes. Burn plans reviewed by a certified burn boss no longer need department approval and must be submitted to a claims fund portal before ignition. The bill requires burn boss recertification at least every three years, allows the department to waive land inspections for burn permits submitted by certified burn bosses and cultural fire practitioners, and requires agencies awarding beneficial fire grants to allow overtime or double pay when necessary. It also exempts certain department actions supporting prescribed fire and cultural burning projects from CEQA.

SB973

Title: Wildfire County Coordinator Program.

Sponsors: Sen. Henry Stern; Sen. Josh Becker

Summary: Creates a statutory framework for the Wildfire County Coordinator Program. Program objectives include strengthening countywide coordination on wildfire mitigation, prevention, preparedness and recovery, with emphasis on evacuation planning, public education, smoke mitigation, home hardening, defensible space and fuels reduction. The program must develop standardized guidance and templates, help local governments access state and federal funding, collect data on mitigation outcomes, and coordinate with the California Wildfire Mitigation Program Joint Powers Authority. The bill builds on $9.5 million appropriated in the 2025 Budget Act and does not change how insurers use wildfire risk models for ratemaking.

SB1079

Title: Department of Forestry and Fire Protection: Fire Innovation Unit.

Sponsors: Sen. Henry Stern

Summary: Establishes a Fire Innovation Unit within the Department of Forestry and Fire Protection, contingent on legislative appropriation, until January 1, 2033. The unit serves as the department’s arm for wildfire technology research, coordination, procurement and deployment, and comprises the Office of Wildfire Technology Research and Development, the Innovation, Outreach, and Coordination Program, and the Rapid Acquisition and Deployment Program. It may evaluate and test technologies, set up testbeds, partner with research institutions, provide technical assistance to fire agencies, and administer the Wildfire Innovation Program, which funds early-stage, mature or dual-use technology projects through grants and contracts.

AB1960

Title: Wildfire Prevention Grants Program: identified cohesive fire communities.

Sponsors: Asm. Steve Bennett

Summary: Establishes a voluntary wildfire mitigation validation program within the Department of Forestry and Fire Protection, in consultation with the State Fire Marshal’s Wildfire Mitigation Advisory Committee, to officially recognize communities that make measurable progress on community-scale wildfire preparedness. The department and committee will set the required mitigations, such as home hardening, defensible space, Firewise USA recognition and fuel reduction projects, along with the minimum share needed for recognition, and will periodically raise those thresholds. Beginning in fiscal year 2028-29, the department may direct Wildfire Prevention Grants Program funds to recognized communities that partner with fire safe councils or other eligible groups, with priority available for disadvantaged communities. Recognition may not be used as a basis for insurance rate or underwriting decisions unless supported by empirical evidence.

AB1934

Title: State Fire Marshal: home hardening certification program implementation plan.

Sponsors: Asm. Steve Bennett

Summary: Requires the State Fire Marshal’s Wildfire Mitigation Advisory Committee to develop, by January 1, 2028, an implementation plan for a voluntary home hardening certification program, covering measures such as defensible space that can be adopted during renovations to bring existing buildings closer to current state building standards. The committee must recommend multiple certification tiers (including at least one ember-resistant tier), minimum standards, inspector qualifications and certification validity periods, and report to legislative committees by January 1, 2028. By January 1, 2029, the State Fire Marshal must establish the program based on those recommendations. Development of the plan may be funded by the Building Standards Administration Special Revolving Fund, subject to appropriation. The bill also expands the committee’s duties and membership and requires monthly meetings.

AB1964

Title: State Fire Marshal: home hardening certification program implementation plan.

Sponsors: Asm. Steve Bennett

Summary: The State Fire Marshal must develop specific home hardening standards to assess whether homes are adequately protected against fire risks, particularly from ember showers and direct flame or radiant heat exposure. These standards are intended to provide a clear benchmark for evaluating the fire resistance of residential structures in areas prone to wildfires.
The State Fire Marshal must also compile a comprehensive report by January 1, 2030, detailing the status of homes located in moderate, high, and very high fire hazard severity zones, as defined by existing statutes in the Government Code and Public Resources Code. The report must estimate the total number of homes in each zone and responsibility area, as well as the number of homes that already meet the newly developed hardening standards and those that require further improvements. This data must be broken down by responsibility area and county, providing a granular view of wildfire preparedness across the state.
No specific funding allocations are detailed in the bill text, nor are there direct mandates for homeowners to retrofit properties; rather, the focus is on standard-setting and information gathering to inform future policy and resource allocation.

SB1153

Title: Disaster preparedness: urban retail water suppliers and public water systems: wildfire.

Sponsors: Sen. Anna Caballero

Summary: Requires urban retail water suppliers serving 3,300 or more people in high or very high fire hazard severity zones to include wildfire-specific incident response procedures in their disaster preparedness plans, and in any federally required emergency response plans, beginning January 1, 2028. Plans must address mitigation actions, preparedness (including identifying critical infrastructure and coordinating with emergency responders), resilience assessments such as fire hardening and backup power, immediate response, and recovery, and must be reviewed at least every five years. Incident-specific procedures are shared with county offices of emergency services, with confidentiality protections for sensitive infrastructure information. The bill clarifies that public water systems are not required to design, build or maintain their systems for wildfire defense or suppression, and that failure to maintain water supply or pressure during a wildfire cannot be considered a substantial cause of wildfire damages, though liability for negligent operation is not limited.

AB2513

Title: Wildfire: Regional Forest and Fire Capacity Program: local assistance grant program: regional landscape grants.

Sponsors: Asm. Cottie Petrie-Norris

Summary: Expands support for regional wildfire and forest resilience work. The bill authorizes the Director of Conservation and the Wildlife Conservation Board to directly award regional landscape grants to regional entities (including state conservancies, local and tribal governments, resource conservation districts, joint powers authorities and qualified nonprofits) to carry out strategies aligned with the Wildfire and Forest Resilience Action Plan, with funding guidelines developed with the Wildfire and Forest Resilience Task Force. It removes the sunset on the Department of Conservation’s authority to make advance payments under the Regional Forest and Fire Capacity Program, broadens eligible fire prevention activities to include vegetation modification, ignition prevention and management of ignition-prone fuels, including along roadways and driveways, and prioritizes projects in high and very high fire hazard severity zones. Certain wildfire resilience projects that have completed federal NEPA review are exempted from state environmental review. The bill includes a clause to coordinate with AB 1699 if both are enacted.

SB1370

Title: Covered wildfire mitigation projects: consolidated and expedited review.

Sponsors: Sen. Henry Stern; Sen. Josh Becker

Summary: Creates a consolidated, expedited state review process for covered wildfire mitigation projects, such as hazardous tree removal, fuel breaks, defensible space vegetation management and prescribed fire. Applicants submit a single application to the Natural Resources Agency and the California Environmental Protection Agency, and a project review team evaluates it for compliance with the Statewide Fuels Reduction Environmental Protection Plan. A decision is required within 60 days of a completed application, and certain state statutes and regulations may be waived, except federal requirements and specified water and endangered species protections. CEQA does not apply to covered projects, violations carry civil penalties, and projects are limited in size and duration. The bill also establishes a Nontimber Vegetation Management Program, with emergency regulations from the Board of Forestry and Fire Protection due by July 1, 2028, and permanent regulations by July 1, 2030.

AB442

Title: Zberg-Nejedly Forest Practice Act of 1973: working forest management plans: nonindustrial timber management plans.

Sponsors: Asm. Heather Hadwick

Summary: Amends the Zberg-Nejedly Forest Practice Act of 1973 to loosen limits on nonindustrial timber management and working forest management plans. The bill raises the maximum acreage for nonindustrial tree farmers and nonindustrial timber management plans from 2,500 to 4,000 acres, and for working forest landowners and working forest management plans from 10,000 to 15,000 acres. It removes the requirement that a working forest management plan’s harvest area fall within a single hydrologic area.

SB876

Title: Fire and residential property insurance.

Sponsors: Sen. Stephen “Steve” Padilla

Summary: Reforms California’s fire and residential property insurance laws, with emphasis on consumer protection and claims handling after wildfires and other states of emergency. Insurers must offer extended replacement cost coverage of at least 50% above policy limits, with acknowledgment required if it is declined, and all insurers, including the California FAIR Plan Association, must provide regular rebuilding cost estimates. Additional living expense coverage must last at least 24 months after a state of emergency, with possible extensions. Coverage for building code upgrades must apply to the codes in effect at the time of rebuilding. Insurers must assign a primary point of contact within 30 days of an emergency-related claim and submit disaster response plans to the Department of Insurance by April 1, 2028. Civil penalties for unfair or deceptive acts related to states of emergency rise to as much as $20,000 per willful act, and the Insurance Commissioner’s restitution authority is expanded. Most provisions take effect January 1, 2028.

AB2129

Title: State employees: compensation: firefighters.

Sponsors: Asm. Heath Flora

Summary: Adds Section 19827.4 to the Government Code, requiring the state to bargain in good faith with the exclusive representative of State Bargaining Unit 8 to bring salaries for rank-and-file CAL FIRE firefighters within 15% of the average salaries for corresponding ranks in 20 California fire departments. An MOU prevails in a conflict. The Legislature must approve expenditures.

AB2483

Title: Wildland firefighters: Formerly Incarcerated Firefighter Certification and Employment Program.

Sponsors: Asm. Sade Elhawary

Summary: Establishes the Formerly Incarcerated Firefighter Certification and Employment Program that provides official written certification to eligible individuals who complete firefighting training while incarcerated, counting toward the minimum requirements for Fire Fighter 1 or Forestry Technician classifications. Starting January 1, 2028, qualifying formerly incarcerated individuals receive a hiring preference (Category Placement 2) for Fire Fighter 1 positions, and their training and fieldwork as incarcerated hand crew members counts toward minimum qualifications for Forestry Technician positions. Other state agencies with wildland management responsibilities may establish similar hiring pathways.

AB2383

Title: Electricity: large energy use facilities.

Sponsors: Asm. Rick Zbur

Summary: Establishes new regulatory requirements for electricity service to data centers. The bill requires the California Public Utilities Commission to direct each electrical corporation to file transmission, distribution and generation tariffs for data centers so that these customers pay a fair share of costs, including wildfire mitigation and environmental programs.

AB2111

Title: Electricity: transmission planning and transmission facilities.

Sponsors: Asm. Diane Papan

Summary: Updates California’s electricity transmission planning framework to accelerate delivery of renewable and zero-carbon energy. State transmission policy goals include minimizing wildfire risk, improving reliability and cost efficiency, and reducing interconnection timelines.

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This memo was prepared by CSG West staff using AI-assisted research tools, with findings reviewed and verified prior to publication. The Council of State Governments (CSG) is a nonpartisan organization that provides members with unbiased research based on peer-reviewed evidence, reliable data, facts, and objective analysis. CSG takes no position on any pending legislation, enacted laws; proposed or enacted regulations, executive orders or agreements, or other executive actions; past or present court rulings or orders; or any other governmental action or potential action mentioned in this brief or in any linked material. Additionally, CSG does not endorse the viewpoints of any outside author, source, or third-party publication mentioned; sources cited are for informational purposes only.