Climate disasters: civil actions.
What changed between versions
The term 'responsible party' is replaced throughout with 'covered entity,' a narrower-sounding label that may affect how the bill is perceived legally and politically.
A temporal limitation is added: the Attorney General may only recover climate-attributable damage occurring on or after January 1, 2016. The introduced version had no such date restriction.
New legislative findings are added addressing 'climate redlining' (disparate impact of market withdrawals on communities of color), fossil fuel companies' century-long presence and market control in California due to lack of pipeline connections to other regions, and their record profits during periods of severe climate disasters.
Recovery scope is slightly broadened from 'losses suffered by' to 'costs and losses suffered/incurred by' for both the FAIR Plan Association and insurance policyholders.
A new subsection (3508.5.1(d)) allows courts and juries to use market share and alternate liability principles to determine proportionate liability. Covered fossil fuel products are declared a 'fungible product class.' Market share is determined by worldwide market capitalization or annual revenue. International entities not subject to state jurisdiction are excluded from the 'substantial percentage' threshold. Covered entities may cross-complain or implead other parties.
Strict liability language is strengthened from 'shall be strictly liable' to 'Notwithstanding any other law, a covered entity shall be strictly liable without regard to fault,' making the provision more explicit that it overrides other legal standards.
An entirely new section (3508.5.1.5) makes it an unlawful business practice for a covered entity or affiliated entity to pass through to California consumers, via gasoline or motor fuel prices, any costs incurred in connection with a civil action under this part. The prohibition lasts for the duration of the action or 24 months after final judgment or settlement, whichever is longer. A narrow exception exists if the entity proves the price increase is directly attributable to supplier or labor/material costs and is no more than 10 percent above pre-filing cost.
The definition of 'fossil fuel product' is renamed to 'covered fossil fuel product' and now explicitly excludes used oil and recycled oil products as defined in the Health and Safety Code and Public Resources Code.