Utilities seek legal shield from wildfire lawsuits as climate risks grow

As utilities face growing wildfire liability tied to aging power lines and worsening climate conditions, lawmakers across the U.S. West are weighing whether to protect them from massive lawsuits or leave them on the hook.

Alex Brown reports for Stateline.


In short:

  • Electric utilities in at least eight U.S. states are lobbying for legal protections that would limit their financial liability for wildfires started by their equipment if they follow mitigation plans like trimming vegetation or burying lines.
  • Opponents — including wildfire survivors, insurers, and attorneys — argue that limiting utility liability will shift the cost burden onto homeowners and reduce incentives to prevent fires.
  • States like Utah, Idaho, and Wyoming have already passed such laws, while others including Arizona, Montana, and Oregon are considering similar legislation that could reshape who pays when disaster strikes.

Key quote:

“We’re only one wildfire away from bankruptcy. Even if we avoid bankruptcy, we’d have huge rate increases to cover the cost of a lawsuit.”

— Shawn Taylor, executive director of the Wyoming Rural Electric Association

Why this matters:

As the climate warms and wildfires become more intense and frequent, communities across the West are grappling with who bears the financial burden when a blaze destroys homes, livelihoods, and ecosystems. Utilities, often the spark behind catastrophic fires, argue they can’t afford to stay afloat without legal protections. But shifting liability off corporations and onto homeowners and insurers raises serious equity concerns, especially as more people in fire-prone areas are dropped by insurers or priced out of coverage altogether. The legal and financial frameworks being built today will shape how — and whether — residents recover from tomorrow’s disasters.

Read more: Oil industry allies push back against climate lawsuits

An oil tower with flames during a gas flare against a blue sky

Equipment issue led to excessive LNG Canada flaring, docs reveal

LNG Canada delayed reporting ‘integrity issue’ to regulators and never fully informed the public, while locals raised concerns about noise, smoke and emissions.

an underwater view of a coral reef with fish

Great Barrier Reef and climate change: See the largest effort to save Australia’s gem

Australia’s Reef Restoration and Adaptation Program is racing to keep the Great Barrier Reef alive by collecting coral spawn at sea and breeding millions of baby corals in high-tech tanks for reseeding.

A teal calculator rests on a white surface.

New calculator shows exactly how much environmental damage is behind your internet searches

The internet is responsible for 3.7 per cent of global carbon emissions, outpacing air travel. If the internet were a country, it would be the fourth-largest polluter in the world.

A man wearing a hard hat standing in front of solar panels

The consequences of Trump's war on climate in 7 charts

Seven snapshots reveal how climate rollbacks altered the trajectory of U.S. energy, environmental protection, and economic security.
Two people wearing protective gear looking at a laptop in front of a mining waste pond

In hunt for rare earths, companies are scouring mining waste

Tailings and acid mine drainage from mines contain critical minerals needed for clean energy technologies; now, researchers are developing new techniques for retrieving these key metals.

A hospital worker in a cafeteria kitchen

Morrison Healthcare recognized as one of modern healthcare’s Best in Business Winners for sustainability

Morrison Healthcare has been named a Modern Healthcare Best in Business winner for sustainability, recognizing its plant-forward culinary strategy and efforts to cut carbon emissions across hospital food systems.

brown concrete building under blue sky during daytime

Climate change and health

Climate change, combined with other natural and human-made stressors, is intensifying existing health threats and creating new ones, with impacts varying by age, income, and location.

From our Newsroom
Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

One facility has emitted cancer-causing chemicals into waterways at levels up to 520% higher than legal limits.

Regulators are underestimating health impacts from air pollution: Study

Regulators are underestimating health impacts from air pollution: Study

"The reality is, we are not exposed to one chemical at a time.”

Pennsylvania governor Josh Shapiro speaks with the state flag and American flag behind him.

Two years into his term, has Gov. Shapiro kept his promises to regulate Pennsylvania’s fracking industry?

A new report assesses the administration’s progress and makes new recommendations

silhouette of people holding hands by a lake at sunset

An open letter from EPA staff to the American public

“We cannot stand by and allow this to happen. We need to hold this administration accountable.”

wildfire retardants being sprayed by plane

New evidence links heavy metal pollution with wildfire retardants

“The chemical black box” that blankets wildfire-impacted areas is increasingly under scrutiny.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.