In the wake of record-breaking wildfires that devastated Los Angeles County earlier this year, California lawmakers have introduced The Polluters Pay Climate Superfund Act of 2025—a bold initiative aimed at holding fossil fuel companies financially accountable for climate-related disasters.

The legislation, introduced as AB 1243 in the Assembly by Dawn Addis (D-Morro Bay) and as SB 684 in the Senate by Caroline Menjivar (D-San Fernando Valley), seeks to force major fossil fuel polluters to pay into a fund that would help Californians rebuild from climate disasters and invest in climate resilience programs.

The bill comes after the unprecedented series of wildfires that devastated Los Angeles County in January, destroying or damaging nearly 18,300 structures and claimed 29 lives in the Palisades Fire and Eaton Fire. The financial toll is estimated at $250 billion. Insurance companies will likely pay $30 to $40-billion of that, but most of the rest will come from people who lost their homes and taxpayers.

"Californians are paying billions, polluters continue to profit."

-The Polluters Pay Climate Superfund Act of 2025, official press release

Polluters Must Pay for Climate Damage

The Polluters Pay Climate Superfund Act establishes a statewide climate compensation program, requiring fossil fuel companies to pay for the damage caused by their emissions from 1990 to 2024. The bill is modeled after the federal Superfund law (CERCLA) and California’s Childhood Lead Poisoning Prevention Act, both of which successfully held corporations accountable for environmental damages in the past.

If passed, the law would:

• ✅ Direct the California Environmental Protection Agency (CalEPA) to conduct a climate cost study to quantify damages to the state caused by fossil fuel emissions through 2045.
• ✅ Identify and assess fees on the world’s largest fossil fuel polluters, proportional to their historic emissions.
• ✅ Create the Polluters Pay Climate Superfund, a new state fund that would use the polluters' fees to remedy or prevent climate-related harm and costs. The money would also go to mitigating rate increases caused by climate disasters.
• ✅ Prioritize job protection and economic relief, ensuring at least 40% of funds benefit disadvantaged communities hardest hit by climate change.

A Bill Born from Crisis: The LA Wildfires’ Lasting Impact

The bill’s authors emphasize that disasters fueled by climate change, especially wildfires and floods, are imposing crippling financial burdens on everyday Californians.

"We must be relentless and creative in pursuing all avenues to redirect the financial burden away from the consumer as we mitigate the consequences of human-made disasters. Profits for polluters skyrocket year over year, and California’s taxpayers simultaneously pinch their pennies for household expenses while also solely footing the bill for catastrophic wildfires and other related disasters."

-Senator Menjivar

Assemblymember Dawn Addis, whose Central Coast district has seen severe wildfires, flooding, and coastal erosion, echoed those concerns:

“This year’s fires in Los Angeles serve as a stark reminder that collective inaction has catastrophic consequences for all Californians. I’m proud to partner with my colleague, Senator Menjivar, and a diverse coalition of advocates to establish a climate superfund that will provide critical relief to impacted communities.”

-Senator Addis

Strong Support from Environmental and Labor Advocates

The bill has gained widespread support from climate advocacy groups, labor unions, and social justice organizations, which argue that California must take bold action to protect its residents.

“The public shouldn’t be shelling out billions of dollars every year to recover from severe and deadly climate disasters.

"By passing this commonsense bill, state lawmakers can put the financial burden of climate damage on giant polluting companies, where it belongs."

-Kassie Siegel, Director of the Center for Biological Diversity’s Climate Law Institute.

Mary Creasman, CEO of California Environmental Voters, noted that while fossil fuel companies are making billions, California communities are left struggling with the consequences:

"California is facing billions in costs from ongoing devastation and climate impacts, while fossil fuel companies continue profiting from the crisis they created."

"That’s why the Polluters Pay Superfund is so critical – we have to ensure that industry pays their fair share, rather than leaving communities to bear the burden alone.”

-Mary Creasman, Chief Executive Officer, California Environmental Voters.

Labor groups, including the Campaign for a Safe and Healthy California, also back the bill, emphasizing that it protects jobs while transitioning to a cleaner energy economy.

Opposition and Expected Legal Challenges

While the bill has strong backing from climate activists, environmental justice groups, and progressive lawmakers, it faces fierce opposition from the fossil fuel industry, which has already begun mobilizing against it.

Industry Lobbying Efforts & Corporate Influence

A Guardian review of state lobbying filings revealed that in the year preceding the devastating Los Angeles County wildfires, the fossil fuel industry heavily lobbied against a similar “polluter pay” bill. Their disclosures show more than $30 million in filings that included "polluter pay."

• Chevron and the Western States Petroleum Association (WSPA)—the largest oil trade group in California—included the polluter pay bill in 76% of their lobbying disclosures, making it one of the most targeted pieces of legislation in the state.
• At least 34 of the world’s largest oil producers, along with industry trade groups, and major greenhouse gas-emitting companies, participated in the lobbying blitz.
• Overall, the industry spent more than $80 million lobbying in California during the last legislative session.

The bill’s supporters argue that these lobbying efforts directly impact California taxpayers, who are left footing the bill for climate-related disasters, while big oil companies continue to rake in record profits.

Tactics Used to Undermine the Bill

On the day after the Los Angeles wildfires began, WSPA launched a media campaign to oppose polluter pay legislation, contending that such measures would lead to higher fuel prices for consumers.

Industry lobbyists have also argued that:

• The policy would increase energy costs, as fossil fuel companies could pass their fees onto consumers.
• Some refineries may shut down or relocate in response to the increased financial burden.
• Oil companies are already taxed under California’s cap-and-trade program, making additional payments unnecessary.

However, lawmakers backing the bill reject these claims, pointing out that California’s existing cap-and-trade program is designed to reduce emissions, not compensate for climate-related damage. AB 1243 and SB 684, by contrast, explicitly seek to recover the financial costs of past climate disasters, ensuring that polluters—not taxpayers—shoulder the burden.

Legal Challenges on the Horizon

If the bill passes, legal challenges from the fossil fuel industry are almost certain. However, legal experts say the bill’s design—modeled after the federal Superfund law (CERCLA)—makes it more likely to withstand legal scrutiny.

California Joins a Growing National Trend

If AB 1243 and SB 684 are enacted, California would become the third state in the nation to pass a climate superfund law, following Vermont and New York, which approved similar legislation last year.

The bill now moves to legislative committees for review. If passed by a two-thirds majority, it will go into immediate effect, marking a historic shift in California’s approach to climate disaster funding.