POLICY ANALYSIS — APRIL 2026

Wildfires & Forestry

From the Camp Fire bankruptcy to the 2025 LA fires. Why California burns, who pays, and the climate-vs-management debate that misses the interaction effect.

2025 Acres Burned
525K
Below 5-yr average; LA fires drove damage
LA Fires Cost
$250B+
Estimated total economic loss
Forest Federally Owned
57%
Of CA's 33M forest acres
PG&E Wildfire Cost
$30B+
Liabilities since 2017

Why California Burns

Multiple causes, layered over a century of fire suppression.

California's fire problem is structural, not new. Pre-1850 estimates suggest 4–12 million acres burned annually — many set deliberately by Indigenous peoples to manage landscape. By contrast, the worst recent year (2020) burned 4.3 million acres, and the average since 2000 has been around 800,000.

What changed isn't fire frequency — it's where people live, how forests have been managed, and how much fuel has accumulated. Three forces converge: a century of fire suppression that built up fuel loads, climate change extending the fire season and drying vegetation, and 1.5+ million homes built in the wildland-urban interface (WUI) since 1990.

The question isn't whether California will keep burning. It will. The honest debate is over which interventions actually reduce damage, who pays, and whether the rebuild-and-repeat cycle in high-risk areas is financially sustainable for the state and its utilities.

The Six Threads

What this section covers, tab by tab.

The Numbers

Acres burned, structures destroyed, deaths — historical context for the recent fire seasons.

2025 LA Fires

Palisades, Eaton, and 12 others. 31 dead, 18,000 structures, $250B+ in damage.

The PG&E Story

Camp Fire bankruptcy, AB 1054, the wildfire fund, and how it shows up on your bill.

Forest Management

Federal vs. state ownership, prescribed burns, the 33-million-acre problem.

Climate vs. Management

What share is climate change, what share is fuel buildup, and why both sides oversimplify.

Honest Assessment

What's working, what isn't, and the rebuild question California has yet to answer.

Sources. California Department of Forestry and Fire Protection (Cal Fire); California Public Utilities Commission; AB 1054 (Statutes of 2019); Pacific Gas & Electric Company SEC filings; CalMatters wildfire tracker; National Interagency Fire Center; US Forest Service Pacific Southwest Region; UC Berkeley Center for Forestry; Climate Central; World Weather Attribution; Boston University School of Public Health (LA fire mortality study, Aug 2025); LA Fed Reserve damage estimates.
Sources: EIA, CAISO, CA Energy Commission, CPUC, CA Legislative Analyst, NRC, AAA, GasBuddy, Tax Foundation, MIT/Stanford, Kpler, Bloomberg, Reuters, CalMatters, UC Davis. March 2026.
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