Gas prices, wildfire, insurance, climate – what each candidate said last night
Wildfire and insurance — issues amped by climate change — along with the price of gas, took center stage at the California governor’s debate on Tuesday night.
Here are some of the candidates’ defining statements, starting left of the stage:
Tony Thurmond
The Democratic State Superintendent of Public Instruction addressed the state’s wildfire insurance crisis, where private insurers have been dropping policies as climate changes fuels more frequent catastrophic fire. The state has allowed insurers to raise rates in return for writing more policies, but so far its backup FAIR Plan, meant to provide coverage when other companies will not, continues to grow.
Thurmond said he would withhold tax credits, subsidies and benefits from non-cooperative insurers, although moderators and other candidates raised questions about the legality of this strategy.
“The governor can certainly work with the Insurance Commissioner to say there should be no rate increase unless the insurance industry is actually writing policies. They have failed California in our greatest need. They’ve taken the money for premiums and then when people needed to have support to rebuild their homes, they said, ‘whoops, we’re not going to help you.’ Then they got a rate increase. I’m sorry, where I come from, when you do a bad job, you don’t get a raise.”
Chad Bianco
The Republican Riverside County Sheriff said insurers aren’t leaving California because of climate change, but because the state has failed to pass and enforce vegetation management and defensible space policies that would reduce wildfire risk.
“It wasn’t global warming, stop believing that. It was a failed environmental policy that doesn’t allow fire departments to prevent defensible space around our homes or clear out the brush for 30 years that are building in our mountains and in our hills that took out a city. [Insurers] specifically said we were going to lose a city, and our governor said ‘we don’t care.’ And so the insurance companies left.”
Inadequate brush clearance has contributed to other fires in the state, although it’s not a factor experts cite in the Los Angeles fires specifically.
Tom Steyer
The Democratic billionaire hedge fund founder who is positioning himself as the climate candidate in the race, touted his drive to make oil companies pay for damages from climate change, including rising insurance rates and homes lost to wildfires.
“In environmentalism, I have three real rules. Number one is polluter pays. It’s absolutely critical that if people are going to pollute and damage the environment and cause harm to their neighbors, they pay. Two, we have to include environmental justice in every single environmental rule. And third is we need to start to deploy all of the clean energy stuff that’s cheaper now and get us back to the front of the world in leading it.
“There is one person that the corporations are going after, including Big Oil, who is spending millions of dollars to stop me. The electric monopolies, PG&E, millions of dollars to stop me, because I’m the person on this stage who’s the change agent.”
Steve Hilton
The former Republican Fox News commentator said insurers should be allowed to raise rates consistent with actual wildfire risk. He also advocated for “modern forest management,” removing fuel from forests, as a way to protect against wildfires, reduce carbon emissions from fire, and revive the state’s timber industry.
“We can create jobs and opportunity in rural California and reduce carbon emissions in the process, because we won’t have the mega wildfires.”
Asked if he supports the transition to electrification, he promoted natural gas: “Yes, but let’s be sensible about electric. Right now, we have a fleet of gas fired power stations generating electricity that are running at 10 to 15% of their capacity, even though we have abundant natural gas in California that we could be using to generate affordable, reliable electricity that would lower the cost of electric bills for consumers and businesses.”
According to the U.S Energy Information Administration, California’s natural gas production provides less than one tenth of what the state consumes.
Xavier Becerra
The former Health and Human Services Secretary said he would call a state of emergency as governor to require wildfire insurers to freeze rates and come to the table.
“This affordability crisis is hitting every family, and we have to act as if this were a break glass moment … Rate payers have to understand what their risk is, so they understand why they are going to pay for what they’re going to pay for their home insurance. But an insurance company has to be open and transparent about how its pricing its policies so people can afford it.”
Moderator Julie Watts noted that California home insurance rates are below the national average and questioned the legality of a freeze.
Katie Porter
The former Democratic Orange County Congresswoman was asked whether California should keep its refineries. Two of them closed in the past year, reducing the state’s refining capacity by 20 percent and causing California to lean more heavily on imports.
She said the state should keep the remaining refineries open, but also rapidly scale up green energy to meet the state’s growing electricity demand: “Right now we need to keep all of our energy sources online. That’s just the reality that we’re in. … Right now those refineries, they’re up, they’re running, they’re creating good jobs. Let’s keep them there. But I want to be really clear … The people who work at those refineries, and the people who live in Kern County also face some of the worst pollution and lower life expectancies. Green energy gets us out of that.”
She also backed an idea to have state dollars cover insurance for insurers, known as reinsurance.
Matt Mahan
Democratic San Jose Mayor called to suspend the state’s 61 cent-per-gallon gas tax, used to fund road repairs, bridges, and public transport. The state is looking at a $216.4 billion revenue shortfall over the next decade due to increasing fuel economy and electric vehicles. The other Democratic candidates support keeping the tax; Mahan has instead proposed a flat fee on all vehicles.
He said: “I’m the only candidate on this stage who has pledged to suspend and then reform the gas tax. It is the most regressive tax in California. Working people, rural people, are spending three times as much maintaining our roads as wealthier EV owners.”
On the wildfire insurance crisis he said: “The government in Sacramento created so many restrictions, including taking over a year to approve any rate changes, prohibiting insurance companies from using climate data to project future costs, that they stopped writing new policies. The answer is bring them back, force them to compete, allow them to appropriately price risk, and then hold government accountable for maintaining our wildland, reducing all that vegetation and wildfire risk so that we don’t have these catastrophic fires.”
Antonio Villaraigosa
The former Democratic L.A. mayor expressed his concerns with the readiness of the state’s infrastructure to support a transition to electric vehicles.
“We need an all of the above strategy that understands we’ve got to transition from oil and gas to renewables. But here’s an example: the 2035 mandate [to ban gas-powered car sales]. We built 167,000 charging stations in the last 10 years. We need 2 million more to get to that mandate, and if we build them, we don’t have a grid. So we ought to build the grid instead of arguing about whether or not we need an all-of-the-above policy.”
