California Senate Bill SB982

California 2025-2026 Regular Session

• Introduced: 2/4/26
• Refer: 2/11/26
• Refer: 4/6/26
• Report Pass: 4/21/26
• Refer: 4/21/26

Caption

An act to add Part 3.5 (commencing with Section 3508.5) to Division 4 of the Civil Code, relating to climate disasters.

Impact

If passed, SB 982 would significantly alter the landscape of liability laws in California by establishing that specified fossil fuel companies are strictly liable for climate-related damages without regard to fault. The bill also introduces principles of market share liability, thereby allowing courts to determine the proportionate responsibility of these companies based on their market share. This could lead to increased operational costs for fossil fuel companies as they could be held responsible for considerable financial loss resulting from their emissions, which are strongly linked to climate change disasters. Consequently, this could potentially lead to higher fuel prices for consumers, although the bill expressly prohibits companies from passing on the costs of civil actions to consumers through surcharges or price adjustments.

Summary

Senate Bill 982, also known as the Climate Disaster Act, seeks to hold fossil fuel companies accountable for climate-attributable damages incurred during climate disasters. The bill enables the Attorney General to file civil actions against these companies, allowing the state to recoup costs associated with damages sustained by communities and insurance policyholders as a result of climate change. This legislative effort is particularly focused on the financial effects of extreme weather events, which have increasingly impacted California residents and their properties, resulting in rising insurance costs and financial instability.

Sentiment

The sentiment surrounding SB 982 appears to be mixed. Proponents view the bill as a necessary step toward addressing the disproportionate impacts of climate change on vulnerable communities, arguing that it offers a pathway to hold large corporations accountable for their part in exacerbating climate disasters. Conversely, critics, particularly from the fossil fuel industry and some economic factions, fear that this legislation could increase costs and litigation, stifling investment and economic growth. The debate highlights the ongoing conflict between environmental accountability and economic interests, with proponents stressing the urgency of climate action, while opponents caution against potential unintended consequences on state economies.

Contention

One notable contention surrounding SB 982 is the issue of liability. While the bill seeks to hold fossil fuel companies responsible for damages, there is concern regarding the clarity of what constitutes 'climate-attributable damage' and how courts will define and assess this responsibility. Additionally, the implications of strict liability could open these companies up to continuous litigation, thereby shaping the future of business operations within the fossil fuel sector and potentially influencing the broader market for energy in California. The establishment of the Attorney General Climate Disaster Fund, financed through recovered damages, is another point of discussion, as expectations around the effective allocation of these funds for community resilience and support are high.