A subcommittee of U.S. House members will hold a hearing Thursday on how regulatory policies will affect the prevention of natural disasters, focusing on the fatal wildfires that destroyed Southern California last month.
The GOP-led House Judiciary Subcommittee on Administrative States, Regulatory Reform and Antimonopoly Act will begin a hearing Thursday at 10am entitled “Consequences of California Fires and Overregulation.”
The hearing not only examines how Golden State's regulatory policies have affected natural disaster prevention, particularly wildfire prevention, but also how to allow insurance “overregulation” and slow recovery We will also address this.
A few days after the fire began, California Gov. Gavin Newsom suspends regulations related to reconstruction, waives permit requirements under the California Coastal Act and the California Environmental Quality Act, and creates a faster reconstruction process. It's made possible.
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On January 8, 2025, firefighters are working from the deck when they burn beachfront facilities in Malibu, California. (AP Photo/Etienne Laurent)
In the wake of the fire, a March 2024 announcement from California's largest private insurance company, State Farm, said it had resurfaced the policy for 72,000 homes and apartments, creating backlash and questions around it. Masu. Insurance accessibility in the area in particular.
The insurance company said the letter sent to the California Department of Insurance (CDI) shortly after its announcement was “an alarm indicating a critical need for rapid and transformative action.”
Currently, State Farms asks CDI to “immediately approve” rates of 22% for non-tenant homeowners, 15% for renters and condominium owners, and 38% for rental homes. Masu.
Smoke from the Palisade fire will rise to a residence in Mandeville Canyon, Los Angeles, on Saturday, January 11th, 2025. (AP Photo/Jae C. Hong)
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The increase in rates is to “avoid dire circumstances,” and the state farm said it will take effect on May 1, 2025.
“As of February 1st, the state farm general (fire only) had received more than 8,700 claims and has already paid over $1 billion in customers,” the insurer wrote in a release on its website, in a release. It's there. “State farm generals ultimately pay a significant amount because collectively these fires are the most expensive disaster in the history of state farm generals.”
Aerial photos show multiple burnt homes after the Eton fire in Altadena, California on January 30, 2025. (AP Photo/Jae C. Hong)
Kelsey Grammer says California lawmakers have “taken their eyes off the ball.”
The hearing is an effort to meet President Donald Trump and members of Congress the day after Newsom traveled to Washington, D.C., to secure more federal funds for wildfire recovery.
Wade Crowfoot, secretary of the California Department of Natural Resources, oversaw water and fire policies throughout the state and attended meetings.
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Witnesses at the hearing include Steve Hilton, founder of Golden Together. Stephen Greenhatt, resident senior fellow and Western Region Director at the R Street Institute. Edward Ring oversees water and energy policy at the California Policy Center.
Rachel Wolf of Fox Business contributed to this report.
