The Federal Emergency Management Agency and the California Governor’s Office of Emergency Services say they are taking steps to separate their claims against Pacific Gas and Electric, Corp. from the $13.5 billion pot of money set aside for wildfire victims.
Under the current plan proposed by PG&E and lawyers, victims would have to compete with the governmental agencies during the allocation of the $13.5 billion, expected later this summer. But the governmental agencies say they did not agree to that deal and are trying to get a separate settlement. It’s unclear if the strategy will be successful.
Several government agencies are asking PG&E to cover some of the costs associated with wildfires it sparked with faulty equipment. Most notably, FEMA is asking for $3.9 billion under a federal law that requires it to seek recovery from entities that cause a disaster. If it does not get money from PG&E, it may have to ask victims themselves to pay it back for some of the expenses, like emergency rentals, that were covered several times over.