# Federal Wildfire Relief Act of 2024

This bill creates a new federal fund to help people and businesses recover from major wildfires, with a particular focus on protecting electric utility companies from being sued for wildfire damage. Here's what it actually does and who it affects.

When a wildfire is officially declared "catastrophic" by the federal government—meaning it destroys more than 500 homes or businesses, or causes over $50 million in damage—people who lost their homes or businesses can file claims with this new Federal Wildfire Relief Fund. If you own a home or business that burned down, you can potentially get money to cover part of your losses, but there are important conditions. Your property had to be insured for at least 50 percent of its value, and the electric utility serving your area had to be following an approved wildfire prevention plan. The fund would pay up to 25 percent of your uninsured losses, with a maximum of 50 percent of what your insurance covered, up to $1 million. You'd also need to waive your right to sue the utility company to receive this money. The government promises to make a decision on your claim within 180 days, and you can request advance payments while waiting for the final decision.

The bill also protects electric utilities from massive lawsuits. If a utility is following an approved wildfire prevention plan, its liability for wildfire damage is capped at just 10 percent of the company's total assets. This is the bill's most significant protection for utilities—it essentially shields them from being bankrupted by catastrophic wildfires. Insurance companies can also receive compensation of up to 10 percent of their losses, and utilities themselves can recover up to 10 percent of their gross assets from the fund. However, the bill specifically excludes compensation for injuries or deaths—it only covers physical damage to buildings.

The bill does not cover personal injury claims or deaths from wildfires, and it only applies to structures that were actually being used as homes or businesses at the time of the fire. While there's no overall cap on how much the fund can pay out for a particular wildfire, individual homeowners and businesses face strict limits on what they can recover. This means the federal government could spend significant money on major disasters, but individual victims would receive only partial compensation for their losses.