(1)Existing law generally regulates classes of insurance, including fire and residential property insurance. Existing law specifies the measure of indemnity under an open fire insurance policy that requires payment of actual cash value or replacement cost. If there is a covered loss relating to a state of emergency, existing law requires additional living expense coverage to be for a period of no less than 24 months from the inception of the loss.

This bill, the Smoke Damage Recovery Act, would create a rebuttable presumption that if wildfire smoke, ash, soot, char, or combustion byproducts are present in a surviving residential property in the wildfire impact zone after a wildfire, then smoke damage in the property is the result of that wildfire. The bill would prohibit an insurer from terminating additional living expenses coverage for a residential property insurance smoke damage claim for a property within the wildfire impact zone until the property has been restored to preloss condition and cleared for human occupancy, as specified. The bill would require specified regulations and guidance to apply to these claims within the wildfire impact zone. The bill would make an insurer responsible for the cost of sampling and testing that is necessary to restore a damaged property to its preloss condition and render it cleared for human occupancy. If a residential property has been cleared for human occupancy, the bill would require a claim for recontamination to be considered a new claim. The bill would require an insurer that chooses to exercise its right to inspect a smoke-damaged property to inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim or, if applicable, no later than 30 calendar days after access to the property is granted. The bill would require the insurer to pay the actual cash value of the cost to restore the damaged personal property to its preloss condition no later than 30 calendar days after the inspection, unless the policyholder has agreed to restoration by the insurer. For damaged residential property, the bill would also require the insurer to pay the undisputed amount of replacement cost, up to the applicable policy limits, within 30 calendar days from the date the restoration is completed, unless the policyholder has agreed to restoration by the insurer. For a portion of a smoke damage claim pertaining to the replacement of covered personal property, the bill would require the insurer to pay the undisputed amount of the replacement cost of the personal property within 30 days from the date the insurer was provided with a receipt for purchase of the replaced personal property.

This bill would require the Department of Insurance, in coordination with others, to conduct a study on or before July 1, 2027, that, among other things, identifies the gaps in insurance coverage exposed by the Lineage Logistics (Lineage) warehouse fire in the Boyle Heights community in the City of Los Angeles, which broke out on June 17, 2026, including additional living expense coverage and business interruption coverage in the absence of a mandatory evacuation order triggering the coverage. The bill would require the department, on or before December 1, 2027, to submit a final written report detailing the findings and recommendations of the study to the Governor and Legislature, and would require the study to be posted on the departments public internet website.

(2)Existing law, the Insurance Adjuster Act, generally regulates the licensing of insurance adjusters. Existing law, the Public Insurance Adjusters Act, generally regulates the licensing of insurance adjusters. The acts set forth various requirements with respect to operation as an insurance adjuster or public insurance adjuster.

This bill would require the Department of Insurance to develop training and certification programs for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildfire involving residential properties. The bill would require an insurer, adjuster firm, or qualified manager to train and accredit its adjusters in accordance with specified regulations and guidance, and would require a public insurance adjuster hired by an insured to adjust smoke damage claims to have the requisite license, training, and certification.

(3)Existing law establishes the Division of Occupational Safety and Health and the Occupational Safety and Health Standards Board within the Department of Industrial Relations and sets forth their powers and duties relating to the adoption of health and safety standards for workers.

This bill would require the Division of Occupational Safety, on or before July 1, 2029, to propose to the Occupational Safety and Health Standards Board regulations to protect the health and safety of employees performing work on residential properties that have sustained smoke or fire damage as a result of a wildfire. The bill would require the regulations to include requirements for the certification of individuals who perform that work and would authorize the regulations to establish fees for certification, which would be deposited into the newly created Wildfire Remediation and Restoration Certification and Training Fund for use, upon appropriation by the Legislature, to cover the costs of administering and enforcing the related requirements and regulations.

(4)Existing law establishes the Office of Emergency Services within the office of the Governor, and sets forth its powers and duties, including responsibility for addressing natural, technological, or manmade disasters and emergencies, including activities necessary to prevent, respond to, recover from, and mitigate the effects of emergencies and disasters to people and property. Existing law also requires the California Environmental Protection Agency, in consultation with the Office of Environmental Health Hazard Assessment, to, among other things, determine which specified extremely hazardous substances pose a regulated substances accident risk, as specified.

This bill would require, on or before December 31, 2027, the Office of Emergency Services, in consultation with the California Environmental Protection Agency, to coordinate with state and local agencies and other entities, as necessary, to conduct a study that, among other things, identifies the various entities involved in the Lineage fire incident response and recovery operations, the coordination of entities involved in the incident response and recovery operations, and the various jurisdictional oversight authorities, as specified. The bill would require the state and local agencies to provide the Office of Emergency Services and the California Environmental Protection Agency with any requested assistance. The bill would require the Office of Emergency Services, on or before July 31, 2028, to submit a final written report detailing the findings and recommendations of the study to the Governor and Legislature, and would require the study to be posted on the offices public internet website. Because the bill would require local agencies to provide specified information to state agencies, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(5)This bill would the operation of its provisions contingent upon the enactment of AB 1642 of the 202526 Regular Session.

(1)Existing law generally regulates classes of insurance, including fire and residential property insurance. Existing law specifies the measure of indemnity under an open fire insurance policy that requires payment of actual cash value or replacement cost. If there is a covered loss relating to a state of emergency, existing law requires additional living expense coverage to be for a period of no less than 24 months from the inception of the loss.

This bill, the Smoke Damage Recovery Act, would create a rebuttable presumption that if wildfire smoke, ash, soot, char, or combustion byproducts are present in a surviving residential property in the wildfire impact zone after a wildfire, then smoke damage in the property is the result of that wildfire. The bill would prohibit an insurer from terminating additional living expenses coverage for a residential property insurance smoke damage claim for a property within the wildfire impact zone until the property has been restored to preloss condition and cleared for human occupancy, as specified. The bill would require specified regulations and guidance to apply to these claims within the wildfire impact zone. The bill would make an insurer responsible for the cost of sampling and testing that is necessary to restore a damaged property to its preloss condition and render it cleared for human occupancy. If a residential property has been cleared for human occupancy, the bill would require a claim for recontamination to be considered a new claim. The bill would require an insurer that chooses to exercise its right to inspect a smoke-damaged property to inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim or, if applicable, no later than 30 calendar days after access to the property is granted. The bill would require the insurer to pay the actual cash value of the cost to restore the damaged personal property to its preloss condition no later than 30 calendar days after the inspection, unless the policyholder has agreed to restoration by the insurer. For damaged residential property, the bill would also require the insurer to pay the undisputed amount of replacement cost, up to the applicable policy limits, within 30 calendar days from the date the restoration is completed, unless the policyholder has agreed to restoration by the insurer. For a portion of a smoke damage claim pertaining to the replacement of covered personal property, the bill would require the insurer to pay the undisputed amount of the replacement cost of the personal property within 30 days from the date the insurer was provided with a receipt for purchase of the replaced personal property.

This bill would require the Department of Insurance, in coordination with others, to conduct a study on or before July 1, 2027, that, among other things, identifies the gaps in insurance coverage exposed by the Lineage Logistics (Lineage) warehouse fire in the Boyle Heights community in the City of Los Angeles, which broke out on June 17, 2026, including additional living expense coverage and business interruption coverage in the absence of a mandatory evacuation order triggering the coverage. The bill would require the department, on or before December 1, 2027, to submit a final written report detailing the findings and recommendations of the study to the Governor and Legislature, and would require the study to be posted on the departments public internet website.

(2)Existing law, the Insurance Adjuster Act, generally regulates the licensing of insurance adjusters. Existing law, the Public Insurance Adjusters Act, generally regulates the licensing of insurance adjusters. The acts set forth various requirements with respect to operation as an insurance adjuster or public insurance adjuster.

This bill would require the Department of Insurance to develop training and certification programs for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildfire involving residential properties. The bill would require an insurer, adjuster firm, or qualified manager to train and accredit its adjusters in accordance with specified regulations and guidance, and would require a public insurance adjuster hired by an insured to adjust smoke damage claims to have the requisite license, training, and certification.

(3)Existing law establishes the Division of Occupational Safety and Health and the Occupational Safety and Health Standards Board within the Department of Industrial Relations and sets forth their powers and duties relating to the adoption of health and safety standards for workers.

This bill would require the Division of Occupational Safety, on or before July 1, 2029, to propose to the Occupational Safety and Health Standards Board regulations to protect the health and safety of employees performing work on residential properties that have sustained smoke or fire damage as a result of a wildfire. The bill would require the regulations to include requirements for the certification of individuals who perform that work and would authorize the regulations to establish fees for certification, which would be deposited into the newly created Wildfire Remediation and Restoration Certification and Training Fund for use, upon appropriation by the Legislature, to cover the costs of administering and enforcing the related requirements and regulations.

(4)Existing law establishes the Office of Emergency Services within the office of the Governor, and sets forth its powers and duties, including responsibility for addressing natural, technological, or manmade disasters and emergencies, including activities necessary to prevent, respond to, recover from, and mitigate the effects of emergencies and disasters to people and property. Existing law also requires the California Environmental Protection Agency, in consultation with the Office of Environmental Health Hazard Assessment, to, among other things, determine which specified extremely hazardous substances pose a regulated substances accident risk, as specified.

This bill would require, on or before December 31, 2027, the Office of Emergency Services, in consultation with the California Environmental Protection Agency, to coordinate with state and local agencies and other entities, as necessary, to conduct a study that, among other things, identifies the various entities involved in the Lineage fire incident response and recovery operations, the coordination of entities involved in the incident response and recovery operations, and the various jurisdictional oversight authorities, as specified. The bill would require the state and local agencies to provide the Office of Emergency Services and the California Environmental Protection Agency with any requested assistance. The bill would require the Office of Emergency Services, on or before July 31, 2028, to submit a final written report detailing the findings and recommendations of the study to the Governor and Legislature, and would require the study to be posted on the offices public internet website. Because the bill would require local agencies to provide specified information to state agencies, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(5)This bill would the operation of its provisions contingent upon the enactment of AB 1642 of the 202526 Regular Session.

(1)Existing law requires the Secretary for Environmental Protection to implement a unified hazardous waste and hazardous materials management regulatory program, known as the unified program. Existing law requires the Office of the State Fire Marshal to develop and make available on its internet website a Wildland-Urban Interface Fire Safety Building Standards Compliance training intended for use in the training of local building officials, builders, and fire service personnel, as specified. Existing law authorizes the Office of the State Fire Marshal to allow certification of contractors who conduct defensible space, home hardening, fuel reduction, roadside clearance, and other contracting activities for wildlife resiliency efforts and who have completed specified training programs.

This bill, the Smoke Damage Recovery Act, would require the California Environmental Protection Agency, Agency (CalEPA), on or before June 30, 2027, to develop health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildfire, as defined. The bill would additionally authorize the California Environmental Protection Agency CalEPA to impose additional sampling, testing, or chemical screening requirements pertaining to a specific wildfire.

This bill would require the California Environmental Protection Agency, CalEPA, on or before January 1, 2028, and in consultation with state and local agencies, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, remediates, or restores residential properties that have sustained smoke damage as a result of a wildfire. The bill would require the California Environmental Protection Agency CalEPA to promulgate regulations to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which governmental entity or entities shall have jurisdiction over the different categories of persons who will be subject to the requirements. The bill would require the regulations to establish the fees that will be required for the certifications, and limit the fees to the amount sufficient to cover the costs of administering and enforcing these requirements. The bill would establish the Wildfire Remediation and Restoration Certification and Training Fund in the State Treasury, require fees collected pursuant to these provisions to be deposited into the fund, and make these funds available, upon appropriation by the Legislature, for use in administering the training and certification requirements.

(2)Existing law generally regulates classes of insurance, including fire and residential property insurance. Existing law specifies the measure of indemnity under an open fire insurance policy that requires payment of actual cash value or replacement cost. If there is a covered loss relating to a state of emergency, existing law requires additional living expense coverage to be for a period of no less than 24 months from the inception of the loss.

This bill would prohibit an insurer from terminating additional living expenses coverage for a residential property insurance smoke damage claim as a result of a wildfire until the property has been cleared for habitation, as specified. The bill would require the above-described California Environmental Protection Agency CalEPA standards and requirements to apply to these claims within the impact zone. The bill would make an insurer responsible for the cost of sampling and testing required pursuant to California Environmental Protection Agency CalEPA standards and requirements. The bill would require an insurer that chooses to exercise its right to inspect a smoke-damaged property to inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim or, if applicable, no later than 30 calendar days after access to the property is granted. The bill would require the insurer to pay the actual cash value of the cost to restore the damaged property to its preloss condition no later than 30 calendar days after the inspection, unless the policyholder has agreed to remediation and restoration by the insurer. After that payment is made, the bill would require the insurer to pay the undisputed amount of replacement cost, up to the applicable policy limits, within 15 calendar days from the date the insured provides the insurer with their contractors contract to remediate and restore the damaged property to its preloss condition, unless the policyholder has agreed to remediation and restoration by the insurer.

(3)Existing law, the Insurance Adjuster Act, generally regulates the licensing of insurance adjusters. Existing law, the Public Insurance Adjusters Act, generally regulates the licensing of public insurance adjusters. The acts set forth various requirements with respect to operation as an insurance adjuster or public insurance adjuster.

This bill would require the Department of Insurance to develop training and certification programs for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildfire involving residential properties. The bill would require an insurer, adjuster firm, or qualified manager to train and accredit its adjusters in accordance with those standards and requirements, and would require a public insurance adjuster hired by an insured to adjust smoke damage claims to have the requisite license, training, and certification.

(4)This bill would declare that it is to take effect immediately as an urgency statute.

(1)Existing law requires the Secretary for Environmental Protection to implement a unified hazardous waste and hazardous materials management regulatory program, known as the unified program. Existing law requires the Office of the State Fire Marshal to develop and make available on its internet website a Wildland-Urban Interface Fire Safety Building Standards Compliance training intended for use in the training of local building officials, builders, and fire service personnel, as specified. Existing law authorizes the Office of the State Fire Marshal to allow certification of contractors who conduct defensible space, home hardening, fuel reduction, roadside clearance, and other contracting activities for wildlife resiliency efforts and who have completed specified training programs.

This bill, the Smoke Damage Recovery Act, would require the California Environmental Protection Agency, on or before June 30, 2027, and in coordination with other state agencies and local public health departments, to develop health-based standards for required and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration. wildfire, as defined. The bill would additionally authorize the California Environmental Protection Agency to impose additional sampling, testing, or chemical screening requirements pertaining to a specific wildfire.

This bill would require the California Environmental Protection Agency, on or before January 1, 2028, and in consultation with state and local agencies, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, remediates, or restores residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration. wildfire. The bill would require the California Environmental Protection Agency to promulgate regulations, if necessary, regulations to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which governmental entity or entities shall have jurisdiction over the different categories of persons who will be subject to the requirements. The bill would require the regulations to establish the fees that will be required for the certifications, and limit the fees to the amount sufficient to cover the costs of administering and enforcing these requirements. The bill would establish the Wildfire Remediation and Restoration Certification and Training Fund in the State Treasury, require fees collected pursuant to these provisions to be deposited into the fund, and make these funds available, upon appropriation by the Legislature, for use in administering the training and certification requirements.

(2)Existing law generally regulates classes of insurance, including fire and residential property insurance. Existing law specifies the measure of indemnity under an open fire insurance policy that requires payment of actual cash value or replacement cost. If there is a covered loss relating to a state of emergency, existing law requires additional living expense coverage to be for a period of no less than 24 months from the inception of the loss.

This bill would prohibit an insurer from terminating additional living expenses coverage for a residential property insurance smoke damage claim as a result of a wildland-urban interface fire or urban conflagration that is declared a state of emergency wildfire until the property has been cleared for habitation, as specified. The bill would require the above-described California Environmental Protection Agency guidance and specified local or state guidance standards and requirements to apply to these claims within the impact zone. The bill would make an insurer responsible for the cost of sampling and testing required pursuant to California Environmental Protection Agency guidance. standards and requirements. The bill would require an insurer that chooses to exercise its right to inspect a smoke-damaged property to inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim or, if applicable, no later than 30 calendar days after access to the property is granted. The bill would require the insurer to pay the actual cash value of the cost to restore the damaged property to its preloss condition no later than 30 calendar days after the inspection, unless the policyholder has agreed to remediation and restoration by the insurer. After that payment is made, the bill would require the insurer to pay the undisputed amount of replacement cost, up to the applicable policy limits, within 15 calendar days from the date the insured provides the insurer with their contractors contract to remediate and restore the damaged property to its preloss condition, unless the policyholder has agreed to remediation and restoration by the insurer.

(3)Existing law, the Insurance Adjuster Act, generally regulates the licensing of insurance adjusters. Existing law, the Public Insurance Adjusters Act, generally regulates the licensing of public insurance adjusters. The acts set forth various requirements with respect to operation as an insurance adjuster or public insurance adjuster.

This bill would require the Department of Insurance to develop training and certification programs for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildland-urban interface fire or urban conflagration in wildfire involving residential properties. The bill would require an insurer, adjuster firm, or qualified manager to train and accredit its adjusters in accordance with those standards, standards and requirements, and would require a public insurance adjuster hired by an insured to adjust smoke damage claims to have the requisite license, training, and certification.

(4)This bill would declare that it is to take effect immediately as an urgency statute.

(1)Existing law requires the Secretary for Environmental Protection to implement a unified hazardous waste and hazardous materials management regulatory program, known as the unified program. Existing law requires the Office of the State Fire Marshal to develop and make available on its internet website a Wildland-Urban Interface Fire Safety Building Standards Compliance training intended for use in the training of local building officials, builders, and fire service personnel, as specified. Existing law authorizes the Office of the State Fire Marshal to allow certification of contractors who conduct defensible space, home hardening, fuel reduction, roadside clearance, and other contracting activities for wildlife resiliency efforts and who have completed specified training programs.

This bill, the Smoke Damage Recovery Act, would require the California Environmental Protection Agency, on or before June 30, 2027, and in coordination with other state agencies and local public health departments, to develop health-based standards for required sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration. The bill would authorize the California Environmental Protection Agency, the Department of Forestry and Fire Protection, or a city or county public health or safety agency to designate a smoke exposure zone for a specific wildfire, as provided, and, upon that designation, establish that the smoke exposure zone would supersede the default zones. The bill would additionally authorize the California Environmental Protection Agency to impose additional sampling, testing, or chemical screening requirements pertaining to a specific wildfire.

This bill would require the California Environmental Protection Agency, on or before January 1, 2028, and in consultation with state and local agencies, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, or restores residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration. The bill would require the California Environmental Protection Agency to promulgate regulations, if necessary, to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which entity or entities shall have jurisdiction over the different categories of persons who will be subject to the requirements. The bill would require the regulations to establish the fees that will be required for the certifications, and limit the fees to the amount sufficient to cover the costs of administering and enforcing these requirements. The bill would establish the Wildfire Remediation Certification and Training Fund in the State Treasury, require fees collected pursuant to these provisions to be deposited into the fund, and make these funds available, upon appropriation by the Legislature, for use in administering the training and certification requirements.

(2)Existing law generally regulates classes of insurance, including fire and residential property insurance. Existing law specifies the measure of indemnity under an open fire insurance policy that requires payment of actual cash value or replacement cost. If there is a covered loss relating to a state of emergency, existing law requires additional living expense coverage to be for a period of no less than 24 months from the inception of the loss.

This bill would prohibit an insurer from terminating additional living expenses coverage for a residential property insurance smoke damage claim as a result of a wildland-urban interface fire or urban conflagration that is declared a state of emergency until the property has been cleared for habitation, as specified. The bill would require the above-described California Environmental Protection Agency guidance and specified local or state guidance to apply to these claims. The bill would create a rebuttable presumption regarding the impact classification of a smoke-damaged property and claims within the impact zone. The bill would make an insurer responsible for the cost of sampling and testing required pursuant to California Environmental Protection Agency guidance. The bill would require an insurer that chooses to exercise its right to inspect a smoke-damaged property to inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim or, if applicable, no later than 30 calendar days after access to the property is granted. The bill would require the insurer to pay the actual cash value of the cost to restore the damaged property no later than 30 calendar days after the inspection, unless the policyholder has agreed to remediation and restoration by the insurer. After that payment is made, the bill would require the insurer to pay the undisputed amount of replacement cost, up to the applicable policy limits, within 15 calendar days from the date the insured provides the insurer with their contractors contract to remediate and restore the damaged property to its preloss condition, unless the policyholder has agreed to remediation and restoration by the insurer.

(3)Existing law, the Insurance Adjuster Act, generally regulates the licensing of insurance adjusters. Existing law, the Public Insurance Adjusters Act, generally regulates the licensing of public insurance adjusters. The acts set forth various requirements with respect to operation as an insurance adjuster or public insurance adjuster.

This bill would require the Department of Insurance to develop training and certification programs for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildland-urban interface fire or urban conflagration in residential properties. The bill would require an insurer, adjuster firm, or qualified manager to train and accredit its adjusters in accordance with those standards, and would require a public insurance adjuster hired by an insured to adjust smoke damage claims to have the requisite license, training, and certification.

(4)This bill would declare that it is to take effect immediately as an urgency statute.

(1)Existing law requires the Secretary for Environmental Protection to implement a unified hazardous waste and hazardous materials management regulatory program, known as the unified program. Existing law requires the Office of the State Fire Marshal to develop and make available on its internet website a Wildland-Urban Interface Fire Safety Building Standards Compliance training intended for use in the training of local building officials, builders, and fire service personnel, as specified. Existing law authorizes the Office of the State Fire Marshal to allow certification of contractors who conduct defensible space, home hardening, fuel reduction, roadside clearance, and other contracting activities for wildlife resiliency efforts and who have completed specified training programs.

This bill, the Smoke Damage Recovery Act, would require the California Environmental Protection Agency, on or before June 30, 2027, and in coordination with other state agencies and local public health departments, to develop health-based standards for required sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration. The bill would authorize the California Environmental Protection Agency, the Department of Forestry and Fire Protection, or a city or county public health or safety agency to designate a smoke exposure zone for a specific wildfire, as provided, and, upon that designation, establish that the smoke exposure zone would supersede the default zones. The bill would additionally authorize the California Environmental Protection Agency to impose additional sampling, testing, or chemical screening requirements pertaining to a specific wildfire.

This bill would require the California Environmental Protection Agency, on or before January 1, 2028, and in consultation with state and local agencies, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, or restores residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration. The bill would require the California Environmental Protection Agency to promulgate regulations, if necessary, to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which entity or entities shall have jurisdiction over the different categories of persons who will be subject to the requirements. The bill would require the regulations to establish the fees that will be required for the certifications, and limit the fees to the amount sufficient to cover the costs of administering and enforcing these requirements. The bill would establish the Wildfire Remediation Certification and Training Fund in the State Treasury, require fees collected pursuant to these provisions to be deposited into the fund, and make these funds available, upon appropriation by the Legislature, for use in administering the training and certification requirements.

(2)Existing law generally regulates classes of insurance, including fire and residential property insurance. Existing law specifies the measure of indemnity under an open fire insurance policy that requires payment of actual cash value or replacement cost. If there is a covered loss relating to a state of emergency, existing law requires additional living expense coverage to be for a period of no less than 24 months from the inception of the loss.

This bill would prohibit an insurer from terminating additional living expenses coverage for a residential property insurance smoke damage claim as a result of a wildland-urban interface fire or urban conflagration that is declared a state of emergency until the property has been cleared for habitation, as specified. The bill would require the above-described California Environmental Protection Agency guidance and specified local or state guidance to apply to these claims. The bill would create a rebuttable presumption regarding the impact classification of a smoke-damaged property and would make an insurer responsible for the cost of sampling and testing required pursuant to California Environmental Protection Agency guidance. The bill would require an insurer that chooses to exercise its right to inspect a smoke-damaged property to inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim or, if applicable, no later than 30 calendar days after access to the property is granted. The bill would require the insurer to pay the actual cash value of the cost to restore the damaged property no later than 30 calendar days after the inspection, unless the policyholder has agreed to remediation and restoration by the insurer. After that payment is made, the bill would require the insurer to pay the undisputed amount of replacement cost, up to the applicable policy limits, within 15 calendar days from the date the insured provides the insurer with their contractors contract to remediate and restore the damaged property to its preloss condition, unless the policyholder has agreed to remediation and restoration by the insurer.

(3)Existing law, the Insurance Adjuster Act, generally regulates the licensing of insurance adjusters. Existing law, the Public Insurance Adjusters Act, generally regulates the licensing of public insurance adjusters. The acts set forth various requirements with respect to operation as an insurance adjuster or public insurance adjuster.

This bill would require the Department of Insurance to develop training and certification programs for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildland-urban interface fire or urban conflagration in residential properties. The bill would require an insurer, adjuster firm, or qualified manager to train and accredit its adjusters in accordance with those standards, and would require a public insurance adjuster hired by an insured to adjust smoke damage claims to have the requisite license, training, and certification.

(1)Existing law requires the Secretary for Environmental Protection to implement a unified hazardous waste and hazardous materials management regulatory program, known as the unified program. Existing law requires the Office of the State Fire Marshal to develop and make available on its internet website a Wildland-Urban Interface Fire Safety Building Standards Compliance training intended for use in the training of local building officials, builders, and fire service personnel, as specified. Existing law authorizes the Office of the State Fire Marshal to allow certification of contractors who conduct defensible space, home hardening, fuel reduction, roadside clearance, and other contracting activities for wildlife resiliency efforts and who have completed specified training programs.

This bill, the Smoke Damage Recovery Act, would require the California Environmental Protection Agency, on or before June 30, 2027, and in coordination with other state agencies and local public health departments, to develop requirements related to minimum health-based standards for required sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration. The bill would authorize the California Environmental Protection Agency, the Department of Forestry and Fire Protection, or a city or county public health or safety agency to designate a smoke exposure zone for a specific wildfire, as provided, and, upon that designation, establish that the smoke exposure zone would supersede the default zones. The bill would additionally authorize the California Environmental Protection Agency to impose additional sampling, testing, or chemical screening requirements pertaining to a specific wildfire.

This bill would require the California Environmental Protection Agency, on or before January 1, 2028, and in consultation with state and local agencies, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, or restores residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration. The bill would require the California Environmental Protection Agency to promulgate regulations, if necessary, to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which entity or entities shall have jurisdiction over the different categories of persons who will be subject to the requirements. The bill would require the regulations to establish the fees that will be required for the certifications, and limit the fees to the amount sufficient to cover the costs of administering and enforcing these requirements. The bill would establish the Wildfire Remediation Certification and Training Fund in the State Treasury, require fees collected pursuant to these provisions to be deposited into the fund, and make these funds available, upon appropriation by the Legislature, for use in administering the training and certification requirements.

(2)Existing law generally regulates classes of insurance, including fire and residential property insurance. Existing law specifies the measure of indemnity under an open fire insurance policy that requires payment of actual cash value or replacement cost. If there is a covered loss relating to a state of emergency, existing law requires additional living expense coverage to be for a period of no less than 24 months from the inception of the loss.

This bill would prohibit an insurer from terminating additional living expenses coverage for a residential property insurance smoke damage claim as a result of a wildland-urban interface fire or urban conflagration that is declared a state of emergency until the property has been cleared for habitation, as specified. The bill would require the above-described California Environmental Protection Agency guidance and specified local or state guidance to apply to these claims. The bill would create a rebuttable presumption regarding the impact classification of a smoke-damaged property and would make an insurer responsible for the cost of sampling and testing required pursuant to California Environmental Protection Agency guidance. The bill would require an insurer that chooses to exercise its right to inspect a smoke-damaged property to inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim or, if applicable, no later than 30 calendar days after access to the property is granted. The bill would require the insurer to pay the actual cash value of the cost to restore the damaged property no later than 30 calendar days after the inspection, unless the policyholder has agreed to remediation and restoration by the insurer. After that payment is made, the bill would require the insurer to pay the undisputed amount of replacement cost, up to the applicable policy limits, within 15 calendar days from the date the insured provides the insurer with their contractors contract to remediate and restore the damaged property to its preloss condition, unless the policyholder has agreed to remediation and restoration by the insurer.

(3)Existing law, the Insurance Adjuster Act, generally regulates the licensing of insurance adjusters. Existing law, the Public Insurance Adjusters Act, generally regulates the licensing of public insurance adjusters. The acts set forth various requirements with respect to operation as an insurance adjuster or public insurance adjuster.

This bill would require the Department of Insurance to develop training and certification programs for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildland-urban interface fire or urban conflagration in residential properties. The bill would require an insurer, adjuster firm, or qualified manager to train and accredit its adjusters in accordance with those standards, and would require a public insurance adjuster hired by an insured to adjust smoke damage claims to have the requisite license, training, and certification.

Existing law generally regulates classes of insurance, including fire insurance. Existing law prescribes the standard form for the issuance of fire insurance policies covering property. Existing law requires all fire insurance policies to be on the standard form, with no additions to or omissions from that form, except as provided. Existing law requires this standard form to insure against, among other things, all loss by fire.

This bill would state the intent of the Legislature to set forth standards and protocols to ensure the health and safety of residents and for the proper handling of smoke damaged residential property insurance claims caused by wildfires, as specified. The bill would make related findings and declarations.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1795

Author:(Gipson)

As Amended Ver:August 28, 2026

Majority vote

SUMMARY

Establishes requirements pertaining to residential property insurance claims for smoke damage occurring within a wildfire impact zone, including requirements for restoring a property to preloss condition and clearing it for human occupancy in accordance with regulations and guidance for lead, asbestos, and other contaminants developed pursuant to Assembly Bill (AB) 1642 (Harabedian) of the current legislative session. AB 1795's enactment is contingent upon AB 1642's enactment, and vice versa. AB 1795 also establishes study and reporting requirements pertaining to the Lineage Logistics warehouse fire (Lineage Fire).

Senate Amendments

On residential property insurance claims for smoke damage:

1. Provide that AB 1795 shall only become operative if AB 1642 is enacted and takes effect on or before January 1, 2027.
2. Delete all of the following:
3. Requirements for the California Environmental Protection Agency (CalEPA) to develop, on or before June 30, 2027, health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildfire, and to adopt regulations that implement these standards and requirements;
4. A definition of "impact zone," meaning a ZIP Code that is either within the fire perimeter, as specified, or adjacent to the fire perimeter and downwind of the fire perimeter, based on maps generated by the National Oceanic and Atmospheric Administration;
5. A definition of "restoration of the property to preloss condition," meaning the removal of smoke damage residues, combustion byproducts, chemicals, contaminants, and odor caused by wildfire smoke exposure through remediation and restoration of the property, to the same condition that existed before exposure;
6. A definition of "smoke damage," meaning exposure of residential property or its contents to wildfire smoke, combustion byproducts, and the chemicals and contaminants contained within the wildfire smoke; and,
7. Requirement for CalEPA to establish, as specified, training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, remediates, or restores residential properties that have sustained smoke damage as a result of a wildfire.
8. Define:
9. "Wildfire impact zone" to mean a ZIP code within or partially within the fire perimeter, as specified;
10. "Restored to preloss condition" to mean the removal of smoke damage residues, ash, soot, char, combustion byproducts, chemicals, contaminants, and odor caused by wildfire smoke exposure through remediation and restoration of a residential property to the same condition that existed before exposure; provides that restoration does not include improvements, upgrades, or betterments beyond the condition of the property immediately before the wildfire smoke exposure; and,
11. "Smoke damage" to mean exposure of residential property, as specified, to wildfire smoke, ash, soot, char, combustion byproducts, and the chemicals and contaminants contained within the wildfire smoke; provides that wildfire smoke damage does not include smoke, soot, ash, char, fumes, or particulate matter resulting from agricultural, industrial, or commercial operations or routine residential activities unrelated to a covered wildfire.
12. Establish a rebuttable presumption that if wildfire smoke, ash, soot, char, or combustion byproducts are present in a surviving residential property in the wildfire impact zone after a wildfire, then smoke damage in the property is the result of that wildfire.
13. Provide that the regulations and guidance for lead, asbestos, and other contaminants developed pursuant to AB 1642 shall apply to claims governed by AB 1795.
14. Prohibit an insurer from terminating coverage for additional living expenses for a covered smoke damage claim for a property within the wildfire impact zone, as specified, until the property has been restored to preloss condition and cleared for human occupancy, in accordance with regulations or guidance established pursuant to AB 1642, subject to the applicable policy limit.
15. Require an insurer to be responsible for covering the cost of the sampling and testing that is necessary to restore a damaged property to its preloss condition and render it cleared for human occupancy; requires the sampling and testing to be in accordance with the regulations or guidance issued pursuant to AB 1642, subject to the terms and provisions of the policy; provide that AB 1795 does not require continued additional living expense payments once the property has been restored to preloss condition and cleared for human occupancy.
16. Provide that if a residential property has been restored to preloss condition and cleared for human occupancy, in accordance with the regulations or guidance established pursuant to AB 1642, then the claim shall not be reopened due to recontamination, and a claim for recontamination shall be considered a new claim, subject to policy provisions and a new deductible.
17. Require the California Department of Insurance (CDI) to implement and enforce a licensee's responsibility to restore a residential property to preloss condition and render it cleared for human occupancy, in accordance with the regulations or guidance established pursuant to AB 1642.
18. Provide that the above apply to all residential property insurance claims that occur on or after January 1, 2027 (AB 1795's operative date).
19. Require CDI to develop training and certification programs for insurance and public insurance adjusters, as specified, on or before January 1, 2029, instead of January 1, 2028, and to base the training and certification on the residential property being restored to preloss condition and cleared for human occupancy, in accordance with the regulations or guidance issued pursuant to AB 1642.
20. Require, on or before July 1, 2029, the Division of Occupational Safety and Health (i.e., Cal/OSHA) to propose regulations to protect the health and safety of employees performing work on residential properties that have sustained smoke or fire damage as a result of a wildfire to the state's Occupational Safety and Health Standards Board, for its consideration and possible adoption; requires these regulations to include requirements for the certification of individuals who perform this work.

On the Lineage Fire:

1. Require, on or before December 31, 2027, the Office of Emergency Services (CalOES) to coordinate with state and local agencies and other entities, as specified, to conduct a study to identify the various entities involved in the Lineage Fire incident response and recovery operations, the coordination of entities involved in the incident response and recovery operations, and the various jurisdictional oversight authorities, to determine if enactment of further laws and regulations would prevent or mitigate these problems for potential future events; require, on or before July 31, 2028, CalOES to submit a final written report detailing the study's findings and recommendations to the Governor and Legislature and to post the report on its internet website.
2. Require, on or before July 1, 2027, CDI to conduct a study that identifies the gaps in insurance coverage exposed by the Lineage Fire, identify potential new triggers for insurance coverage, and determine if the enactment of further laws and regulations should be considered to close the gaps; require, on or before December 1, 2027, CDI to submit a final written report detailing the study's findings and recommendations to the Governor and Legislature, and to post the report on CDI's internet website.

COMMENTS

This bill and harmonizing amendments with AB 1642: As noted below, there are no pre-existing state or federal standards for indoor contaminants from smoke damage. With the rise in destructive wildfires, there is an urgent need to protect public health by developing health-based standards for these contaminants. There is also an urgent need for a regulatory framework that articulates how these standards will apply to residential property insurance claims for smoke damage.

This year, AB 1795 and AB 1642 took up the challenge of tackling these issues and advancing critical conversations about how to approach them. Amendments taken in the Senate harmonize the two bills, such that they now each hold a critical piece of California's—and the nation's—first wildfire smoke damage policy. AB 1642 requires DTSC to establish standards for lead, asbestos, and several other post-wildfire contaminants, and AB 1795 articulates how these standards will apply to residential property insurance claims.

Indoor contaminants after wildfires: The frequency and severity of wildfires have been increasing, both in the state and all over the world. When these fires burn into densely populated areas, they can transition into urban conflagrations, in which fires spread rapidly from structure-to-structure. In the wake of these fires, both the interiors and exteriors of structures can become polluted by smoke residue, ash, and debris, which in turn can contain toxic chemicals. For homes that remain standing, but have been impacted by wildfire smoke and debris, there are no uniform state or federal standards pertaining to investigation, testing, and remediation for indoor chemical hazards.

The Smoke Claims and Remediation Task Force: Recognizing the need for statewide standards, in May 2025, CDI established the Smoke Claims and Remediation Task Force (Task Force). The Task Force's final report highlights areas of agreement and disagreement on how to address smoke damage. There was general consensus regarding the relatively greater potential for harm from toxins resulting from wildfires; the need for standards for contaminants of concern; the utility of a tiered classification system for smoke damage claims with varying protocols; and the importance of training and certification programs for personnel involved in the insurance claim and remediation process, including, but not limited to insurance adjusters, industrial hygienists, remediation experts, and testing laboratories.

The Lineage Fire: On June 17, 2026, a fire ignited at the Lineage, Inc. storage facility in the Boyle Heights neighborhood in the city of Los Angeles. According to the City of Los Angeles' Emergency Management Department, the fire burned within a heavily insulated, 491,000 square foot cold storage structure that stored an estimated 85 million pounds of frozen food product. Although clean-up efforts have progressed since the fire, local frustrations have emerged with the pace of the clean-up and serious pest and air quality problems associated with rotting food in the warehouse. According to the Los Angeles Times article, "Millions of pounds of rotting food have finally been removed from burned warehouse in Boyle Heights," more than 4,900 odor complaints have been submitted to the South Coast Air Quality Management District for "persistent rotten, sour and garbage-like odors."

According to the Author

"AB 1795 creates a consistent statewide framework for handling wildfire smoke damage insurance claims which would be the first in the nation. This bill would require that homes contaminated after a wildfire are properly evaluated and restored to a safe and habitable condition—and hold insurance companies accountable when standards are not met. Right now, the absence of statewide standards has created confusion, unfair claims handling, and uncertainty for families already coping with unimaginable losses. Consumer protection is my number one priority, and establishing clear rules will ensure that homeowners are protected and survivors can safely move back into their restored homes knowing they do not face life-long health risks. After a wildfire, recovery should not depend on a homeowner's ability to navigate complex insurance disputes while their life is already turned upside down. More than a year after the most devastating fires Los Angeles has ever seen, there is no reason to delay. I am dedicated to swift passage of AB 1795, the Smoke Damage Recovery Act, to pave the way for a better process that insurance policyholders can rely upon."

Arguments in Support

According to Eaton Fire Residents United (EFRU):

"Many of us signed a letter supporting AB 1642 in June and many also signed a letter opposing AB 1795 unless it was amended. Both bills have harmonized since then. We urge you to vote yes on both bills when they come to you on the floor.

The two bills now travel together. Neither one takes effect unless both are enacted. AB 1642 writes the science. It creates the first standards in the nation for testing and remediating homes of toxic contaminants after a wildfire. AB 1795 requires insurance companies to follow them within the impact zone. Apart, each bill is half an answer. Together they are the first real wildfire smoke damage standards this country has.

Currently, a family is told their home is clean when an insurance adjuster says it is clean. As reported by the New York Times, that gap has allowed insurance companies to deny testing, insufficiently clean homes, prematurely terminate smoke damage claims, and force survivors back into homes that were never cleared for occupancy…EFRU's own testing found lead in every standing home we tested for it. In a separate group of homes tested after professional cleaning, most still came back above the federal threshold for lead. Cleaning a home without a standard to sample and test against does not reliably produce a clean home.

California has the chance to write the rules the rest of the country will use as their north star. Wildfires are not going away. They are only increasing in severity and geographic diversity. Yet, no state has put standards in place to ensure there is clarity on when it is safe to return to a smoke damaged home. We have spent a year and a half learning what happens when there is no standard. Now is the time to lean into scientific advances in the identification, measurement, and remediation of toxic contaminants in smoke damaged homes."

Arguments in Opposition

Writing in an opposed-unless-amended position on a prior version of AB 1795, a coalition of insurance industry groups comprised of the American Property Casualty Insurance Association, the National Association of Mutual Insurance Companies, Pacific Association of Domestic Insurance Companies, and the Personal Insurance Federation of California states:

"AB 1795 introduces a comprehensive new framework governing wildfire smoke testing, remediation, and insurance claims handling. While intended to improve consistency and consumer outcomes, several provisions raise significant concerns for insurers related to contract certainty, retroactive application, operational feasibility, and cost escalation.

The bill was improved in Assembly Insurance Committee; however we do remain concerned with certain provisions of the bill. Most importantly the cost. In recent years we have seen the costs for smoke claims grow exponentially. These are claims where a home does not have a single ember touch the home, and in some cases are exhausting million-dollar policies. These are unpredictable costs that fall well outside underwriting expectations and the pricing of smoke coverage. If AB 1795 moves forward as drafted companies will have to anticipate that the entirety of a homeowner's policy could be exhausted through smoke claims, thus undermining the affordability and availability benefits of mitigation.

To address this concern and continue towards greater market availability and affordability we have suggested to the author and sponsor that a sublimit on smoke should be included. This would cap smoke coverage at a percentage of the total policy coverage, such that cleaning, remediation, and testing are available without increasing the amount needed in claims paying capacity. This sublimit would be available with optional higher limits for those desiring higher coverage protection for smoke. This will contain the costs for those not in [the wildland urban interface] or high smoke risk areas, while providing sufficient protection for homeowners and predictability to insurers."

FISCAL COMMENTS

According to the Senate Appropriations Committee, writing on a prior version of AB 1795, enactment of this bill would result in one-time costs to CDI of $91,000; ongoing annual costs of $6 million to CalEPA, as well as substantial, yet undetermined annual contracting costs; ongoing annual costs of $1.024 million to the Office of Environmental Health Hazard Assessment; ongoing annual costs of $545,000 to the California Department of Public Health; minor and absorbable costs to the Department of Industrial Relations; and unknown costs that could range from absorbable to the high hundreds of thousands of dollars for other state agencies required to consult with CalEPA during the development of testing standards.

VOTES:

ASM ENVIRONMENTAL SAFETY AND TOXIC MATERIALS: 5-1-1

YES: Connolly, Bauer-Kahan, Lee, McKinnor, Papan

NO: Castillo

ABS, ABST OR NV: Ellis

ASM INSURANCE: 14-2-1

YES: Calderon, Addis, Alvarez, Ávila Farías, Berman, Ellis, Gipson, Harabedian, Krell, Nguyen, Ortega, Petrie-Norris, Michelle Rodriguez, Valencia

NO: Wallis, Hadwick

ABS, ABST OR NV: Chen

ASM APPROPRIATIONS: 11-4-0

YES: Wicks, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache

NO: Hoover, Dixon, Ta, Tangipa

ASSEMBLY FLOOR: 56-7-17

YES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Chen, Connolly, Elhawary, Flora, Fong, Gabriel, Gipson, Mark González, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Krell, Lee, Lowenthal, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NO: Castillo, DeMaio, Hadwick, Macedo, Patterson, Sanchez, Tangipa

ABS, ABST OR NV: Alanis, Bains, Davies, Dixon, Ellis, Gallagher, Garcia, Jeff Gonzalez, Haney, Kalra, Lackey, Muratsuchi, Petrie-Norris, Celeste Rodriguez, Schultz, Ta, Wallis

UPDATED

VERSION: August 28, 2026

CONSULTANT: Naomi Ondrasek / E.S. & T.M. / (916) 319-3965 FN: 0004566

 THIRD READING  

Bill No: AB 1795

Author: Gipson (D)

Amended: 8/28/26 in Senate

Vote: 21

SENATE INSURANCE COMMITTEE: 5-1, 6/24/26

AYES: Padilla, Becker, Menjivar, Richardson, Rubio

NOES: Niello

NO VOTE RECORDED: Jones

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-0, 7/1/26

AYES: Blakespear, Valladares, Allen, Gonzalez, Menjivar

NO VOTE RECORDED: Dahle, Hurtado

SENATE APPROPRIATIONS COMMITTEE: 5-0, 8/13/26

AYES: Cervantes, Cabaldon, Grayson, Richardson, Wahab

NO VOTE RECORDED: Seyarto, Dahle

ASSEMBLY FLOOR: 56-7, 6/8/26 - See last page for vote

SUBJECT: Smoke Damage Recovery Act

SOURCE: Insurance Commissioner Ricardo Lara / California Department of Insurance

DIGEST:

This bill 1) requires that the California Environmental Protection Agency (CalEPA) develop, by June 30, 2027, health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage from a wildland-urban interface (WUI) fire or urban conflagration; 2) establishes a framework for the application and implementation of these standards, including the development of training and certification requirements for insurance adjusters and those who sample, test, or restore residential properties; and 3) sets down affiliated requirements for insurers, and responsibilities for the California Department of Insurance (CDI).

Senate Floor Amendments of 8/28/26

1) Task the California Office of Emergency Services (CalOES) in consultation with the California Environmental Protection Agency to coordinate with state and local agencies to evaluate the response and recovery operations related to the Lineage Logistics (Lineage) Fire, as specified, and assess if further laws and regulations may be needed to improve response and protect residents and businesses.

2) Require CalOES, by July 31, 2028, to submit a final report of its findings and recommendations to the Governor and Legislature, and to post this report on its website.

3) Task the California Department of Insurance (CDI) to coordinate with state agencies, and other stakeholders to evaluate the related sufficiency of insurance coverage and assess if further or amended laws and regulations may be needed to address any shortfalls, as specified.

4) Require CDI, by December 1, 2027, to submit a final report of its findings and recommendations to the Governor and Legislature, and to post this report on its website.

5) Create a rebuttable presumption that if wildfire smoke, ash, soot, char, or combustion byproducts are present in a surviving residential property in the wildfire impact zone after a wildfire, then smoke damage in the property is the result of that wildfire.

6) Specify restrictions on the termination of Additional Living Expenses coverage for smoke damage claims on residential properties within a wildfire impact zone, dependent on restoration of pre-loss condition or clearance for human occupancy.

7) Contain cross references to related guidelines and regulations for clearance for human occupancy, as well as contaminant testing, remediation, and restoration stated and developed pursuant to AB 1642 (Harabedian).

8) State that insurers will be responsible for covering the cost of sampling and testing necessary to restore a damaged property to its pre-loss condition and clear it for human occupancy.

9) Specify that for the portion of a smoke damage claim pertaining to the replacement of covered personal property that is deemed a total loss, the insurer must pay the undisputed amount of the actual cash value of the personal property within 30 days from the date the personal property is determined to be a total loss.

10) Specify that for the portion of a smoke damage claim pertaining to the replacement of covered personal property, the insurer must pay the undisputed amount of the replacement cost of the personal property within 30 days from the date the insurer was given a receipt for the replacement of that property.

11) Stipulate that if a residential property has been restored to pre-loss condition and cleared for human occupancy, a claim shall not be reopened due to recontamination. Instead, a new claim must be filed.

12) State that CDI shall implement and enforce a licensee’s responsibility to restore a residential property to pre-loss condition and clear it for human occupancy.

13) Require CDI to develop training and certification programs for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildfire involving residential properties. Subsequently, insurers, adjuster firms, or qualified managers must train and accredit their adjusters accordingly. Public insurance adjusters hired by insureds to adjust smoke damage claims must have the requisite license, training, and certification.

14) Require the Division of Occupational Safety and Health, by July 1, 2029, to propose to the Occupational Safety and Health Standards Board regulations to protect the health and safety of employees performing work on residential properties that have sustained smoke or fire damage because of a wildfire. These regulations must include requirements for the certification of such individuals and allow fees for certification to be deposited into a newly created Wildfire Remediation and Restoration Certification and Training Fund for use, upon appropriation by the Legislature, to cover the costs of administering and enforcing the related requirements and regulations.

15) Create affiliated definitions.

16) Make conforming changes.

17) Make and revise related findings and declarations.

18) Remove the urgency clause.

19) Make this bill’s provisions operative only if AB 1642 (Harabedian) is enacted by January 1, 2027.

ANALYSIS:

Existing law:

1. Provides that a fire perimeter is determined by the Department of Forestry and Fire Protection (CAL FIRE) in consultation with the Office of Emergency Services (CalOES). Subsequently, CAL FIRE must provide the Insurance Commissioner (Commissioner) with data describing the fire perimeter so that the Commissioner may determine which ZIP Codes are within or adjacent to the fire perimeter. The Commissioner must then issue a bulletin to inform insurers which ZIP Codes are subject to a one-year moratorium.
2. Defines a “state of emergency” as the duly proclaimed existence of conditions of disaster or extreme peril to the safety of persons and property within the state, caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, cyberterrorism, sudden and severe energy shortage, electromagnetic pulse attack, plant or animal infestation or disease, among other conditions.
3. Regulates the licensing including exam, education, and background check requirements for insurance adjusters, who engage in investigation for the purpose of obtaining information while adjusting or participating in the disposal of any claim in connection with a policy of insurance.
4. Regulates the licensing including exam, education, and background check requirements of public insurance adjusters who act on behalf of an insured in negotiating for or effecting the settlement of a claim or claims for loss or damage under a policy of insurance.
5. Establishes the Hazardous Waste Control Law (HWCL) to authorize the Department of Toxic Substances Control (DTSC) to regulate the management of hazardous wastes in California.
6. Defines "hazardous waste" as waste, that, because of its quantity, concentration, or physical, chemical, or infectious characteristics:
7. Causes, or significantly contributes to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness.
8. Poses a substantial present or potential hazard to human health or the environment, due to factors including, but not limited to, carcinogenicity, acute toxicity, chronic toxicity, bio accumulative properties, or persistence in the environment, when improperly treated, stored, transported, disposed of, or otherwise managed.
9. Requires DTSC, under the HWCL, to adopt, and revise when appropriate, standards and regulations for the management of hazardous waste to protect against hazards to public health, domestic livestock, wildlife, or the environment.

This bill:

1. Requires CalEPA, on or before June 30, 2027, to develop health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration.
2. Stipulates that the standards and requirements mentioned above must include protocols, parameters, and thresholds for pre-remediation testing, post-remediation testing, and clearance of a residential property for habitation after remediation is completed.
3. Requires, in creating these standards, CalEPA to consult with agencies including DTSC, Office of Environmental Health Hazard Assessment (OEHHA), California Air Resources Board (CARB), California Department of Public Health (CDPH), air pollution control districts, and local public health departments, as necessary. Requires CalEPA to adopt regulations to implement or make the above provisions more specific.
4. States that CalEPA may create additional standards and requirements pertaining to a particular wildfire, including requirements for the identification of contaminants, supplementary minimum sampling and testing recommendations or requirements, or chemical screening levels for residential properties that have sustained smoke damage. Further states that these requirements, relating to a particular wildfire, shall be exempt from specified state laws that govern rulemaking.
5. Creates related definitions, including that "impact zone" means a ZIP Code that is either within the fire perimeter or adjacent to the fire perimeter, as specified, and downwind of the fire perimeter based on maps generated by the National Oceanic and Atmospheric Administration.
6. Requires CalEPA, by January 1, 2028, to consult with CDI, CDPH, the Department of Industrial Relations (DIR), Contractors State License Board (CSLB), State Water Resources Control Board (State Water Board), and any other state or local government agency, as may be necessary, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, remediates, or restores residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration, including industrial hygienists, restoration professionals, and laboratories.
7. Prohibits an insurer from terminating coverage for additional living expenses for a covered smoke damage claim submitted under a policy of residential property insurance, as a result of a WUI fire or urban conflagration until the property has been cleared for habitation pursuant to CalEPA's standards and requirements, subject to the applicable policy limit.
8. States that CalEPA's standards and requirements apply to all covered smoke damage claims within the impact zone submitted under policies of residential property insurance due to a WUI fire or urban conflagration.
9. Requires that, if a smoke damage insurance claim is settled on the basis of a written scope or estimate prepared by or for the insurer, the insurer must supply the claimant with a copy of each document upon which the settlement is based.
10. Stipulates that the estimate be for an amount that will restore the damaged property to at least its pre-loss condition and allow for restoration to meet or exceed CalEPA's standards and requirements, other relevant laws and regulations, and accepted trade and industry standards that do not conflict with CalEPA's standards and requirements.
11. Requires CDI, by January 1, 2028, to develop, implement, and enforce training and certification programs, as specified, for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a WUI fire or urban conflagration involving residential properties.
12. Makes related findings and declarations.
13. Contains an urgency clause.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

According to the Senate Appropriations Committee:

CDI estimates a one-time cost of $91,000 (Insurance Fund) in Fiscal Year (FY) 2026-27 to develop the training and certification program for adjusters and to address the expected increase in rate filing.

CalEPA estimates ongoing annual costs of $6 million (General Fund) to promulgate regulations and to implement, administer, and enforce the requirements of this bill. CalEPA also anticipates substantial, yet undetermined, annual contracting costs.

The Office of Environmental Health Hazard Assessment (OEHHA) estimates total ongoing annual costs of $1.024 million (Wildfire Remediation Certification and Training Fund and General Fund). This estimate includes $624,000 to support 1.0 personnel year (PY) and $400,000 in contract funding to maintain and update standards, as well as to identify and develop additional standards as new wildland-urban interface related fire hazards are identified.

The California Department of Public Health (CDPH) estimates ongoing annual costs of $545,000 (General Fund) beginning in FY 2026-27 to consult with CalEPA and to resolve current laboratory and measurement issues, including the specific chemicals to be tested, regarding residential property wildfire remediation and restoration.

The Department of Industrial Relations (DIR) anticipates any costs associated with its required consultation activities will be minor and absorbable.

Unknown costs to other state agencies required to consult with CalEPA during the development of the testing standards. Based on feedback from OEHHA, CDPH, and DIR, these costs may range from absorbable to the high hundreds of thousands of dollars (General Fund and special fund).

Staff notes that actual ongoing costs to each affected state agency are unknown because the bill does not specify a timeline or requirements for updating the standards. While the upfront workload to evaluate WUI-related fire hazards may be significant, ongoing costs could decrease in subsequent years. This reduction would occur if agencies review and update standards on an as-needed basis, rather than conducting a full annual review.

SUPPORT: (Verified 8/14/26)

Insurance Commissioner Ricardo Lara / California Department of Insurance (source)

City of Los Alamitos

Eaton Fire Residents United

United Policyholders

OPPOSITION: (Verified 8/14/26)

301 Organics

350 Conejo

350 Conejo / San Fernando Valley

350 South Bay LA

350 South Bay Los Angeles

350 Southland Legislative Alliance

After the Fire

Altadena Arts

Altadena Colab

Altagether

American Property Casualty Insurance Association

Ban Sup

Biomax Environmental

California Community Foundation

Civic Sundays

Clergy Community Coalition

Consumer Attorneys of California

Consumer Watchdog

Dena Rise Up

Eaton Fire Collaborative

Eaton Fire Renters Coalition

End Child Poverty CA

Glendale Environmental Coalition

Greenfaith

Hello Claire

Hollly Wyman Design

Indivisible Alta Pasadena

Joan Collaborative

LA Voice

LA Standing Homes

Leap of Faith Family to Family Support

Little Tokyo Service Center

Long Beach Alliance for Clean Energy

Maeve Mt. Washington Glassell Park

McClain Consulting Services

My Tribe Rise

National Association of Mutual Insurance Companies

Pacific Association of Domestic Insurance Companies

Pacific Film Foundation

Pasadenans Organizing for Progress

Personal Insurance Federation of California

Resilient Palisades

San Diego 350

San Diego350

Sonoma County Climate Activist Network

ARGUMENTS IN SUPPORT: According to Insurance Commissioner Ricardo Lara, sponsor of the bill:

“California has experienced record-breaking wildfires, including the January 2025 Eaton and Palisades Fires, which destroyed thousands of homes and left many more contaminated by smoke, soot, ash, char, and other hazardous substances. Thousands of smoke-damage insurance claims have since been filed. Because no authoritative, enforceable standards exist for testing or remediating smoke damage, survivors report inconsistent claims handling, partial or total denials, and refusals by insurers to pay for pre- or post-remediation testing. CDI has taken executive actions—including consumer bulletins, enforcement actions, and investigations—but the absence of standards has resulted in a patchwork of insurer practices. In response to the January 2025 fires, I convened a Smoke Claims and Remediation Task Force to develop recommendations for statewide standards and insurance coverage expectations.

Residential property insurance policies that cover the peril of fire also cover smoke damage caused by fire, and insurers are required to cover restoration of properties to pre-loss condition. However, California has no statewide standards governing the inspection or testing of smoke-damaged homes, no minimum sampling or clearance protocols, no mandated remediation methods, and no training or certification requirements for professionals who assess or remediate smoke damage. No state agency is currently designated to enforce uniform smoke-damage remediation standards, and existing claims-handling requirements lack the specificity needed for consistent enforcement.

The absence of enforceable standards has resulted in inconsistent insurer practices, including denials of testing, partial claim denials, and refusals to reimburse for pre- or post-remediation testing. Homeowners and tenants face uncertainty about whether their homes are safe to reenter, and many have been forced to pay for testing or remediation out of pocket. Without statewide standards, neither insurers nor regulators have a clear framework to ensure that smoke-damaged homes are restored to safe, habitable, pre-loss condition, and the resulting instability contributes to rising costs in the residential property insurance market

AB 1795 would create a comprehensive statewide framework for residential property insurance policies to ensure consistent, science-based handling of smoke-damage claims. This bill will mandate insurer compliance with remediation protocols and clarify their obligation to cover the cost of restoring properties to a pre-loss condition. Finally, AB 1795 also identifies the appropriate state agencies responsible for implementing and enforcing the standards and creates penalties for noncompliance.”

ARGUMENTS IN OPPOSITION: According to the insurance associations known as the “Trades”:

“The insurance industry supports standards on the testing and remediation of smoke claims and actively participated in the Smoke Claims and Remediation Task Force established by the California Department of Insurance (CDI). Clear and credible standards benefit homeowners, regulators, and insurers. However, standards must be grounded in defensible science and structured in a way that is operationally feasible and legally durable.

AB 1795 introduces a comprehensive new framework governing wildfire smoke testing, remediation, and insurance claims handling. While intended to improve consistency and consumer outcomes, several provisions raise significant concerns for insurers related to contract certainty, retroactive application, operational feasibility, and cost escalation.

The bill was improved in Assembly Insurance Committee; however we do remain concerned with certain provisions of the bill. Most importantly the cost. In recent years we have seen the costs for smoke claims grow exponentially. These are claims where a home does not have a single ember touch the home, and in some cases are exhausting million-dollar policies. These are unpredictable costs that fall well outside underwriting expectations and the pricing of smoke coverage. If AB 1795 moves forward as drafted companies will have to anticipate that the entirety of a homeowner’s policy could be exhausted through smoke claims, thus undermining the affordability and availability benefits of mitigation.

To address this concern and continue towards greater market availability and affordability we have suggested to the author and sponsor that a sublimit on smoke should be included. This would cap smoke coverage at a percentage of the total policy coverage, such that cleaning, remediation, and testing are available without increasing the amount needed in claims paying capacity. This sublimit would be available with optional higher limits for those desiring higher coverage protection for smoke. This will contain the costs for those not in WUI or high smoke risk areas, while providing sufficient protection for homeowners and predictability to insurers. We appreciate the commitments made by the author to address this concern and are in active discussion with his office and the CDI to determine the best way to proceed.”

ASSEMBLY FLOOR: 56-7, 6/8/26

AYES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Chen, Connolly, Elhawary, Flora, Fong, Gabriel, Gipson, Mark González, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Krell, Lee, Lowenthal, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NOES: Castillo, DeMaio, Hadwick, Macedo, Patterson, Sanchez, Tangipa

NO VOTE RECORDED: Alanis, Bains, Davies, Dixon, Ellis, Gallagher, Garcia, Jeff Gonzalez, Haney, Kalra, Lackey, Muratsuchi, Petrie-Norris, Celeste Rodriguez, Schultz, Ta, Wallis

Prepared by: Brandon Seto / INS. / (916) 651-4110

8/30/26 16:21:58

**** END ****

 THIRD READING  

Bill No: AB 1795

Author: Gipson (D)

Amended: 7/2/26 in Senate

Vote: 27 - Urgency

SENATE INSURANCE COMMITTEE: 5-1, 6/24/26

AYES: Padilla, Becker, Menjivar, Richardson, Rubio

NOES: Niello

NO VOTE RECORDED: Jones

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-0, 7/1/26

AYES: Blakespear, Valladares, Allen, Gonzalez, Menjivar

NO VOTE RECORDED: Dahle, Hurtado

SENATE APPROPRIATIONS COMMITTEE: 5-0, 8/13/26

AYES: Cervantes, Cabaldon, Grayson, Richardson, Wahab

NO VOTE RECORDED: Seyarto, Dahle

ASSEMBLY FLOOR: 56-7, 6/8/26 - See last page for vote

SUBJECT: Smoke Damage Recovery Act

SOURCE: Insurance Commissioner Ricardo Lara / California Department of Insurance

DIGEST:

This bill requires that the California Environmental Protection Agency (CalEPA) develop, by June 30, 2027, health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage from a wildland-urban interface (WUI) fire or urban conflagration. Establishes a framework for the application and implementation of these standards, including the development of training and certification requirements for insurance adjusters and those who sample, test, or restore residential properties. Further sets down affiliated requirements for insurers, and responsibilities for the California Department of Insurance (CDI).

ANALYSIS:

Existing law:

1. Provides that a fire perimeter is determined by the Department of Forestry and Fire Protection (CAL FIRE) in consultation with the Office of Emergency Services (CalOES). Subsequently, CAL FIRE must provide the Insurance Commissioner (Commissioner) with data describing the fire perimeter so that the Commissioner may determine which ZIP Codes are within or adjacent to the fire perimeter. The Commissioner must then issue a bulletin to inform insurers which ZIP Codes are subject to a one-year moratorium.
2. Defines a “state of emergency” as the duly proclaimed existence of conditions of disaster or extreme peril to the safety of persons and property within the state, caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, cyberterrorism, sudden and severe energy shortage, electromagnetic pulse attack, plant or animal infestation or disease, among other conditions.
3. Regulates the licensing including exam, education, and background check requirements for insurance adjusters, who engage in investigation for the purpose of obtaining information while adjusting or participating in the disposal of any claim in connection with a policy of insurance.
4. Regulates the licensing including exam, education, and background check requirements of public insurance adjusters who act on behalf of an insured in negotiating for or effecting the settlement of a claim or claims for loss or damage under a policy of insurance.
5. Establishes the Hazardous Waste Control Law (HWCL) to authorize the Department of Toxic Substances Control (DTSC) to regulate the management of hazardous wastes in California.
6. Defines "hazardous waste" as waste, that, because of its quantity, concentration, or physical, chemical, or infectious characteristics:
7. Causes, or significantly contributes to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness.
8. Poses a substantial present or potential hazard to human health or the environment, due to factors including, but not limited to, carcinogenicity, acute toxicity, chronic toxicity, bio accumulative properties, or persistence in the environment, when improperly treated, stored, transported, disposed of, or otherwise managed.
9. Requires DTSC, under the HWCL, to adopt, and revise when appropriate, standards and regulations for the management of hazardous waste to protect against hazards to public health, domestic livestock, wildlife, or the environment.

This bill:

1. Requires CalEPA, on or before June 30, 2027, to develop health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration.
2. Stipulates that the standards and requirements mentioned above must include protocols, parameters, and thresholds for pre-remediation testing, post-remediation testing, and clearance of a residential property for habitation after remediation is completed.
3. Requires, in creating these standards, CalEPA to consult with agencies including DTSC, Office of Environmental Health Hazard Assessment (OEHHA), California Air Resources Board (CARB), California Department of Public Health (CDPH), air pollution control districts, and local public health departments, as necessary. Requires CalEPA to adopt regulations to implement or make the above provisions more specific.
4. States that CalEPA may create additional standards and requirements pertaining to a particular wildfire, including requirements for the identification of contaminants, supplementary minimum sampling and testing recommendations or requirements, or chemical screening levels for residential properties that have sustained smoke damage. Further states that these requirements, relating to a particular wildfire, shall be exempt from specified state laws that govern rulemaking.
5. Creates related definitions, including that "impact zone" means a ZIP Code that is either within the fire perimeter or adjacent to the fire perimeter, as specified, and downwind of the fire perimeter based on maps generated by the National Oceanic and Atmospheric Administration.
6. Requires CalEPA, by January 1, 2028, to consult with CDI, CDPH, the Department of Industrial Relations (DIR), Contractors State License Board (CSLB), State Water Resources Control Board (State Water Board), and any other state or local government agency, as may be necessary, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, remediates, or restores residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration, including industrial hygienists, restoration professionals, and laboratories.
7. Prohibits an insurer from terminating coverage for additional living expenses for a covered smoke damage claim submitted under a policy of residential property insurance, as a result of a WUI fire or urban conflagration until the property has been cleared for habitation pursuant to CalEPA's standards and requirements, subject to the applicable policy limit.
8. States that CalEPA's standards and requirements apply to all covered smoke damage claims within the impact zone submitted under policies of residential property insurance due to a WUI fire or urban conflagration.
9. Requires that, if a smoke damage insurance claim is settled on the basis of a written scope or estimate prepared by or for the insurer, the insurer must supply the claimant with a copy of each document upon which the settlement is based.
10. Stipulates that the estimate be for an amount that will restore the damaged property to at least its pre-loss condition and allow for restoration to meet or exceed CalEPA's standards and requirements, other relevant laws and regulations, and accepted trade and industry standards that do not conflict with CalEPA's standards and requirements.
11. Requires CDI, by January 1, 2028, to develop, implement, and enforce training and certification programs, as specified, for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a WUI fire or urban conflagration involving residential properties.
12. Makes related findings and declarations.
13. Contains an urgency clause.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

CDI estimates a one-time cost of $91,000 (Insurance Fund) in Fiscal Year (FY) 2026-27 to develop the training and certification program for adjusters and to address the expected increase in rate filing.

CalEPA estimates ongoing annual costs of $6 million (General Fund) to promulgate regulations and to implement, administer, and enforce the requirements of this bill. CalEPA also anticipates substantial, yet undetermined, annual contracting costs.

The Office of Environmental Health Hazard Assessment (OEHHA) estimates total ongoing annual costs of $1.024 million (Wildfire Remediation Certification and Training Fund and General Fund). This estimate includes $624,000 to support 1.0 personnel year (PY) and $400,000 in contract funding to maintain and update standards, as well as to identify and develop additional standards as new wildland-urban interface related fire hazards are identified.

The California Department of Public Health (CDPH) estimates ongoing annual costs of $545,000 (General Fund) beginning in FY 2026-27 to consult with CalEPA and to resolve current laboratory and measurement issues, including the specific chemicals to be tested, regarding residential property wildfire remediation and restoration.

The Department of Industrial Relations (DIR) anticipates any costs associated with its required consultation activities will be minor and absorbable.

Unknown costs to other state agencies required to consult with CalEPA during the development of the testing standards. Based on feedback from OEHHA, CDPH, and DIR, these costs may range from absorbable to the high hundreds of thousands of dollars (General Fund and special fund).

Staff notes that actual ongoing costs to each affected state agency are unknown because the bill does not specify a timeline or requirements for updating the standards. While the upfront workload to evaluate WUI-related fire hazards may be significant, ongoing costs could decrease in subsequent years. This reduction would occur if agencies review and update standards on an as-needed basis, rather than conducting a full annual review.

SUPPORT: (Verified 8/14/26)

Insurance Commissioner Ricardo Lara / California Department of Insurance (source)

City of Los Alamitos

OPPOSITION: (Verified 8/14/26)

301 Organics

350 Conejo

350 Conejo / San Fernando Valley

350 South Bay LA

350 South Bay Los Angeles

350 Southland Legislative Alliance

After the Fire

Altadena Arts

Altadena Colab

Altagether

American Property Casualty Insurance Association

Ban Sup

Biomax Environmental

California Community Foundation

Civic Sundays

Clergy Community Coalition

Consumer Attorneys of California

Consumer Watchdog

Dena Rise Up

Eaton Fire Collaborative

Eaton Fire Renters Coalition

Eaton Fire Residents United

End Child Poverty CA

Glendale Environmental Coalition

Greenfaith

Hello Claire

Hollly Wyman Design

Indivisible Alta Pasadena

Joan Collaborative

LA Voice

LA Standing Homes

Leap of Faith Family to Family Support

Little Tokyo Service Center

Long Beach Alliance for Clean Energy

Maeve Mt. Washington Glassell Park

McClain Consulting Services

My Tribe Rise

National Association of Mutual Insurance Companies

Pacific Association of Domestic Insurance Companies

Pacific Film Foundation

Pasadenans Organizing for Progress

Personal Insurance Federation of California

Resilient Palisades

San Diego 350

San Diego350

Sonoma County Climate Activist Network

ARGUMENTS IN SUPPORT:

According to Insurance Commissioner Ricardo Lara, sponsor of the bill:

“California has experienced record-breaking wildfires, including the January 2025 Eaton and Palisades Fires, which destroyed thousands of homes and left many more contaminated by smoke, soot, ash, char, and other hazardous substances. Thousands of smoke-damage insurance claims have since been filed. Because no authoritative, enforceable standards exist for testing or remediating smoke damage, survivors report inconsistent claims handling, partial or total denials, and refusals by insurers to pay for pre- or post-remediation testing. CDI has taken executive actions—including consumer bulletins, enforcement actions, and investigations—but the absence of standards has resulted in a patchwork of insurer practices. In response to the January 2025 fires, I convened a Smoke Claims and Remediation Task Force to develop recommendations for statewide standards and insurance coverage expectations.

Residential property insurance policies that cover the peril of fire also cover smoke damage caused by fire, and insurers are required to cover restoration of properties to pre-loss condition. However, California has no statewide standards governing the inspection or testing of smoke-damaged homes, no minimum sampling or clearance protocols, no mandated remediation methods, and no training or certification requirements for professionals who assess or remediate smoke damage. No state agency is currently designated to enforce uniform smoke-damage remediation standards, and existing claims-handling requirements lack the specificity needed for consistent enforcement.

The absence of enforceable standards has resulted in inconsistent insurer practices, including denials of testing, partial claim denials, and refusals to reimburse for pre- or post-remediation testing. Homeowners and tenants face uncertainty about whether their homes are safe to reenter, and many have been forced to pay for testing or remediation out of pocket. Without statewide standards, neither insurers nor regulators have a clear framework to ensure that smoke-damaged homes are restored to safe, habitable, pre-loss condition, and the resulting instability contributes to rising costs in the residential property insurance market

AB 1795 would create a comprehensive statewide framework for residential property insurance policies to ensure consistent, science-based handling of smoke-damage claims. This bill will mandate insurer compliance with remediation protocols and clarify their obligation to cover the cost of restoring properties to a pre-loss condition. Finally, AB 1795 also identifies the appropriate state agencies responsible for implementing and enforcing the standards and creates penalties for noncompliance.”

ARGUMENTS IN OPPOSITION:

According to the insurance associations known as the “Trades”:

“The insurance industry supports standards on the testing and remediation of smoke claims and actively participated in the Smoke Claims and Remediation Task Force established by the California Department of Insurance (CDI). Clear and credible standards benefit homeowners, regulators, and insurers. However, standards must be grounded in defensible science and structured in a way that is operationally feasible and legally durable.

AB 1795 introduces a comprehensive new framework governing wildfire smoke testing, remediation, and insurance claims handling. While intended to improve consistency and consumer outcomes, several provisions raise significant concerns for insurers related to contract certainty, retroactive application, operational feasibility, and cost escalation.

The bill was improved in Assembly Insurance Committee; however we do remain concerned with certain provisions of the bill. Most importantly the cost. In recent years we have seen the costs for smoke claims grow exponentially. These are claims where a home does not have a single ember touch the home, and in some cases are exhausting million-dollar policies. These are unpredictable costs that fall well outside underwriting expectations and the pricing of smoke coverage. If AB 1795 moves forward as drafted companies will have to anticipate that the entirety of a homeowner’s policy could be exhausted through smoke claims, thus undermining the affordability and availability benefits of mitigation.

To address this concern and continue towards greater market availability and affordability we have suggested to the author and sponsor that a sublimit on smoke should be included. This would cap smoke coverage at a percentage of the total policy coverage, such that cleaning, remediation, and testing are available without increasing the amount needed in claims paying capacity. This sublimit would be available with optional higher limits for those desiring higher coverage protection for smoke. This will contain the costs for those not in WUI or high smoke risk areas, while providing sufficient protection for homeowners and predictability to insurers. We appreciate the commitments made by the author to address this concern and are in active discussion with his office and the CDI to determine the best way to proceed.”

ASSEMBLY FLOOR: 56-7, 6/8/26

AYES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Chen, Connolly, Elhawary, Flora, Fong, Gabriel, Gipson, Mark González, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Krell, Lee, Lowenthal, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NOES: Castillo, DeMaio, Hadwick, Macedo, Patterson, Sanchez, Tangipa

NO VOTE RECORDED: Alanis, Bains, Davies, Dixon, Ellis, Gallagher, Garcia, Jeff Gonzalez, Haney, Kalra, Lackey, Muratsuchi, Petrie-Norris, Celeste Rodriguez, Schultz, Ta, Wallis

Prepared by: Brandon Seto / INS. / (916) 651-4110

8/15/26 12:18:10

**** END ****

SENATE COMMITTEE ON

Senator Sabrina Cervantes, Chair

2025 - 2026 Regular Session

AB 1795 (Gipson) - Smoke Damage Recovery Act

Bill Summary:

AB 1795 requires the California Environmental Protection Agency (CalEPA) to develop health-based residential smoke damage testing standards by June 30, 2027, establishes a framework that mandates training and certification requirements for property restorers and insurance adjusters, and creates specific regulatory responsibilities for the California Department of Insurance (CDI), as specified.

Fiscal Impact:

• CDI estimates a one-time cost of $91,000 (Insurance Fund) in Fiscal Year (FY) 2026-27 to develop the training and certification program for adjusters and to address the expected increase in rate filing.
• CalEPA estimates ongoing annual costs of $6 million (General Fund) to promulgate regulations and to implement, administer, and enforce the requirements of this bill. CalEPA also anticipates substantial, yet undetermined, annual contracting costs.
• The Office of Environmental Health Hazard Assessment (OEHHA) estimates total ongoing annual costs of $1.024 million (Wildfire Remediation Certification and Training Fund and General Fund). This estimate includes $624,000 to support 1.0 personnel year (PY) and $400,000 in contract funding to maintain and update standards, as well as to identify and develop additional standards as new wildland-urban interface (WUI) related fire hazards are identified.
• The California Department of Public Health (CDPH) estimates ongoing annual costs of $545,000 (General Fund) beginning in FY 2026-27 to consult with CalEPA and to resolve current laboratory and measurement issues, including the specific chemicals to be tested, regarding residential property wildfire remediation and restoration.
• The Department of Industrial Relations (DIR) anticipates any costs associated with its required consultation activities will be minor and absorbable.
• Unknown costs to other state agencies required to consult with CalEPA during the development of the testing standards. Based on feedback from OEHHA, CDPH, and DIR, these costs may range from absorbable to the high hundreds of thousands of dollars (General Fund and special fund).

Staff notes that actual ongoing costs to each affected state agency are unknown because the bill does not specify a timeline or requirements for updating the standards. While the upfront workload to evaluate WUI-related fire hazards may be significant, ongoing costs could decrease in subsequent years. This reduction would occur if agencies review and update standards on an as-needed basis, rather than conducting a full annual review.

Background:

When fires in the WUI burn into densely populated areas, wildfires can transition into urban conflagrations, in which fires spread rapidly from structure-to-structure. In the wake of these fires, both the interiors and exteriors of structures can become polluted by smoke residue, ash, and debris, which can contain toxic chemicals. The smoke from these fires doesn’t just consist of the chemicals from plant-fueled fires, but also of various toxic compounds from lead-based paint, lithium batteries, vinyl siding, fiberglass insultation, electrical wiring, rubber tires, and more. These chemicals can also be altered from the high intensity of the wildfire and interact with each other as they are being emitted.

Fires have been blamed for a long list of health illnesses. Wildland fire smoke has been linked to increased hospital admissions for asthma, strokes, and heart attacks. House fires have been associated with higher levels of cancer in firefighters. But new hazards arise when these types of fires are combined and amplified by burning entire neighborhoods. Health risks associated with WUI fire toxicants can persist beyond the active burning of the fire, due to contamination of the ecosystem and built environment. Exposure to these toxicants and health impacts can also extend well beyond the WUI communities, as smoke can be transported for hundreds to thousands of kilometers.

Proposed Law:

• Requires CalEPA, by June 30, 2027, to develop health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration.
  • Specifies that these standards must include protocols, parameters, and thresholds for pre-remediation testing, post-remediation testing, and clearance of a residential property for habitation after remediation is complete.
  • Directs CalEPA, when creating these standards, to consult with agencies including the Department of Toxic Substances Control (DTSC), OEHHA, California Air Resources Board (CARB), CDPH, air pollution control districts, and local public health departments, as necessary.
  • Requires the standards to consider differences, if appropriate, based on the distance of a residential structure from the fire perimeter.
  • Mandates consideration of whether certain wildfire smoke byproducts and associated hazardous substances transform or dissipate with the passage of time.
  • Stipulates that the standards must evaluate the adequacy of the practice of sensory inspection, including visual inspection and odor perception assessments, and consider the circumstances under which the employment of these inspection methods is appropriate or inappropriate.
• Requires CalEPA to adopt regulations to implement or make the standards and requirements more specific. Authorizes CalEPA to impose additional standards and requirements pertaining to a particular wildfire, including requirements for the identification of contaminants, supplementary minimum sampling and testing recommendations or requirements, or chemical screening levels for residential properties that have sustained smoke damage. Further states that these requirements, relating to a particular wildfire, shall be exempt from specified state laws that govern rulemaking.
• Creates related definitions, including that "impact zone" means a ZIP Code that is either within the fire perimeter or adjacent to the fire perimeter, as specified, and downwind of the fire perimeter based on maps generated by the National Oceanic and Atmospheric Administration.
• Requires CalEPA, by January 1, 2028, to consult with CDI, CDPH, DIR, Contractors State License Board (CSLB), the State Water Board, and any other state or local government agency, as may be necessary, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, remediates, or restores residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration, including industrial hygienists, restoration professionals, and laboratories.
• Requires CalEPA to adopt regulations to administer the certification program, establish penalties for noncompliance, and determine which governmental entities have jurisdiction over the various categories of regulated individuals.
  • Requires these regulations to include a cost recovery mechanism to cover CalEPA’s administrative expenses, funded through the imposition of certification fees on persons who inspect, evaluate, sample, test, analyze, remediate, or restore residential properties that have sustained smoke damage as a result of a wildfire.
• Prohibits an insurer from terminating coverage for additional living expenses for a covered smoke damage claim submitted under a policy of residential property insurance as a result of a WUI fire or urban conflagration until the property has been cleared for habitation pursuant to CalEPA's standards and requirements, subject to the applicable policy limit.
• States that CalEPA's standards and requirements apply to all covered smoke damage claims within the impact zone submitted under policies of residential property insurance due to a WUI fire or urban conflagration.
• Requires that, if a smoke damage insurance claim is settled on the basis of a written scope or estimate prepared by or for the insurer, the insurer must supply the claimant with a copy of each document upon which the settlement is based.
• Stipulates that the estimate be for an amount that will restore the damaged property to at least its pre-loss condition and allow for restoration to meet or exceed CalEPA's standards and requirements, other relevant laws and regulations, and accepted trade and industry standards that do not conflict with CalEPA's standards and requirements.
• Requires CDI, by January 1, 2028, to develop, implement, and enforce training and certification programs, as specified, for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a WUI fire or urban conflagration involving residential properties.
• States legislative findings and declarations.

Related Legislation:

AB 1642 (Harabedian) would require DTSC to adopt regulations that specify standards for investigation, environmental testing, and clearance to guide the removal of contamination from WUI fire debris in residential areas after a wildfire. AB 1642 is pending in this committee.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Blakespear, Chair

2025 - 2026 Regular

Bill No: AB 1795

SUBJECT: Smoke Damage Recovery Act

DIGEST: This bill requires the California Environmental Protection Agency (CalEPA) to develop health-based standards and requirements for minimum sampling, testing, chemical screening levels, and clearance for residential properties that have sustained smoke damage as a result of a wildfire and establish training and certification requirements for specified personnel involved in the remediation process.

ANALYSIS:

Existing federal law:

1. Establishes the federal Toxic Substances Control Act (TSCA), which, among other things, empowers the United States Environmental Protection Agency (U.S. EPA) with the authority to require reporting, record-keeping, and testing requirements, and restrictions relating to chemical substances and mixtures. (15 United States Code (USC) §§ 2601 et seq.)
2. Establishes, under TSCA, dust-lead hazard standards, post-abatement clearance levels, and abatement requirements for lead-based paint in certain residential structures. (40 Code of Federal Regulations (CFR) §§ 745.61 et seq.)
   

Existing state law:

1. Establishes the California Environmental Protection Agency (CalEPA) in the state government to protect public health and the environment. (Government Code (GC) §§ 12800 et seq.)
2. Establishes the Hazardous Waste Control Law (HWCL) to authorize the Department of Toxic Substances Control (DTSC) to regulate the management of hazardous wastes in California. (Health and Safety Code (HSC) §§ 25100 et seq.)
3. Defines “hazardous waste” as waste, that, because of its quantity, concentration, or physical, chemical, or infectious characteristics:
   1. Causes, or significantly contributes to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness; or,
   2. Poses a substantial present or potential hazard to human health or the environment, as specified. (HSC § 25141(b))
4. Requires the DTSC, under the HWCL, to adopt, and revise when appropriate, standards and regulations for the management of hazardous wastes to protect against hazards to public health, domestic livestock, wildlife, or the environment. (HSC § 25150)
5. Establishes DTSC’s Toxicity Criteria for Human Health Risk Assessments, Screening Levels, and Remediation Goals (Toxicity Criteria Rule) for hazardous waste and hazardous substance cleanup sites; requires, among other things, that human health risk assessment calculations—including, but not limited to, all cancer risk and non-cancer hazard screening levels and corrective action objectives—use the toxicity criteria specified under the Toxicity Criteria Rule and attain human health protection, as specified. (22 California Code of Regulations (CCR) § 68400.5).
6. Specifies, under the Toxicity Criteria Rule, criteria for all human health risk assessments, human health risk-based screening levels, and human health risk-based remediation goals statewide, for the cleanup of releases of hazardous waste or hazardous substances to the environment. (22 CCR §§ 69020-69022)
7. Defines, under DTSC’s health standards for the management of hazardous waste, “remediation goal” to mean a contaminant concentration that is media-specific (e.g., for air, groundwater, surface water, or soil affected by a release), site-specific, protective of human health and the environment, and used as a final cleanup goal for a response or corrective action. (22 CCR § 69020(c)(5))
8. Defines, under DTSC’s health standards for the management of hazardous waste, “screening level” to mean a risk-based, contaminant concentration, calculated as specified and considered to be protective for humans (including sensitive groups) over a lifetime. (22 CCR § 69020(c)(6))
   

This bill:

Under the Health and Safety Code:

1. Requires CalEPA to develop health-based standards and requirements through regulation for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildfire in consultation with specified agencies on or before June 30, 2027.
2. Requires the developed standards and requirements to include protocols, parameters, and thresholds for pre-remediation testing, post-remediation testing, and clearance of a residential property for habitation after completed remediation.
3. Requires the developed standards and requirements to consider all of the following:
   1. Differences based on the distance of a residential structure from the fire perimeter; and
   2. Whether certain wildfire smoke byproducts and hazardous substances dissipate with the passage of time.
4. Authorizes CalEPA to impose additional standards and requirements pertaining to a specific wildfire, including that related to additional wildfire contaminants, minimum sampling and testing recommendations or requirements, or chemical screening levels, and exempts these additional standards from the Administrative Procedure Act.
5. Defines “fire perimeter” to mean the footprint or entire outer boundary of a burned area as a result of a wildland-urban interface fire or urban conflagration, as specified.
6. Defines “impact zone” to mean a ZIP code that is either of the following:
   1. Within the fire perimeter, as specified; or
   2. Adjacent to and downwind of the fire perimeter, as specified.
7. Requires CalEPA to consult with the Department of Insurance (CDI) and other specified agencies to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, remediates, or restores residential properties that have sustained smoke damage as a result of a wildfire, as specified.
8. Requires CalEPA to promulgate regulations to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which governmental entity shall have jurisdiction over the different categories of persons who will be subject to the requirements.
9. Requires the regulations concerning training and certification to establish fees that will be required for certification at levels not to exceed an amount sufficient to cover the costs of administering and enforcing such requirements.
10. Requires the fees collected to be deposited into the Wildfire Remediation and Restoration Certification and Training Fund created in the State Treasury, with funds available upon appropriation by the Legislature.

Under the Insurance Code:

1. Prohibits an insurer from terminating coverage for additional living expenses for a covered smoke damage claim submitted under a policy of residential property insurance as a result of a wildfire until the property has been cleared for habitation, as described.
2. Requires the standards and requirements developed by CalEPA for minimum sampling, testing, and chemical screening levels to apply to all covered smoke damage claims within the impact zone submitted under policies of residential property insurance as a result of a wildfire.
3. Requires any additional standards developed by CalEPA related to additional wildfire contaminants, minimum sampling, testing recommendations or requirements, or chemical screening levels to apply to all covered smoke damage claims.
4. Requires an insurer to be responsible for covering the cost of the sampling and testing that is required pursuant to the standards and requirements developed by CalEPA, subject to the terms and provisions of the policy.
5. Allows an insurer to cover sampling and testing that exceeds what is required pursuant to the standards and requirements developed by CalEPA.
6. Requires all of the following conditions to apply to covered smoke damage claims:
   1. The insurer must inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim, if the insurer chooses to exercise its right to inspect the smoke-damaged property, as specified;
   2. The insurer must pay the actual cash value of the cost to restore the damaged property to no less than its pre-loss condition, unless the policyholder has agreed to permit the insurer to remediate and restore the property to its pre-loss condition;
   3. The insurer must pay the undisputed amount of replacement cost to restore the damaged property to no less than its pre-loss condition up to the applicable policy limits within 15 calendar days from the date of which the insured provides the insurer with a copy of the contract remediating and restoring the property, unless the policy holder has agreed to permit the insurer to remediate and restore the property to its pre-loss condition under a policy that requires payment of the replacement cost for a lass after the actual cash value payment; and
   4. A payment not made pursuant to the specified timeframes must accrue interest payable to the insured.
7. Requires the insurer to supply the claimant with a copy of each document upon which the settlement is based if a claim is settle on the basis of a written scope or estimate prepared by or for the insurer.
8. Requires the estimate prepared by or for the insurer to be for an amount that will restore the property to no less than its pre-loss condition and that allows for restoration to meet or exceed the standards and requirements developed by CalEPA, other applicable laws and regulations, and accepted trade and industry standards that do not conflict with the standards developed by CalEPA.
9. Requires a vendor or contractor hired or referred by the insurer to have the requisite license, training, and certification mandated by the state.
10. Requires CDI to implement and enforce the standards and requirements developed by CalEPA as they pertain to its licensees and assess penalties for noncompliance.
11. Specifies that the proposed provisions do not limit any other law or regulation, including the Unfair Trade Practices Act and the Fair Claims Settlement Practices Regulations.
12. Requires CDI to develop a training and certification program for insurance adjusters (hired by an insurer) and public insurance adjusters (hired by an insured) in inspecting, evaluating, sampling, or testing smoke damage caused by a wildfire and subjects all activities for training and certification to the standards and requirements developed by CalEPA on or before January 1, 2028.
13. Requires CDI to implement and enforce the training and certification program and assess penalties for noncompliance.
14. Makes related findings and declarations.
    

Background

1. Fires in the wildland urban interface. Due to climate change, the frequency and severity of wildfires have been increasing in the state and globally.^[1] Four out of the five most destructive wildfires in California history have occurred in the last 10 years.^[2] In 2025, the Eaton and Palisades fires in Los Angeles County destroyed over 16,000 structures and burned nearly 38,000 acres combined; in 2018, the Camp Fire in Butte County destroyed nearly 19,000 structures and burned 153,000 acres; and in 2017, the Tubbs Fire in Napa and Sonoma counties destroyed more than 5,500 structures and burned nearly 37,000 acres.

These fires are all examples of wildland urban interface (WUI) fires, which means a zone of transition between unoccupied land and human development. It is known as the line, area, or zone where structures and other human development meet or intermingle with undeveloped wildland or vegetative fuels.^[3] Although the area burned in the WUI comprises a relatively small percentage of the overall burn area, the majority of damage to human structures occurs in the WUI. California is first among the top five states with the most homes in WUI areas, with 30-45% of all homes in the state in WUI areas.

1. Where there’s smoke, there’s toxins. When fires in the WUI burn into densely populated areas, wildfires can transition into urban conflagrations, in which fires spread rapidly from structure-to-structure. In the wake of these fires, both the interiors and exteriors of structures can become polluted by smoke residue, ash, and debris, which can contain toxic chemicals. The smoke from these fires doesn’t just consist of the chemicals from plant-fueled fires, but also of various toxic compounds from lead-based paint, lithium batteries, vinyl siding, fiberglass insultation, electrical wiring, rubber tires, and more.^[4] These chemicals can also be altered from the high intensity of the wildfire and interact with each other as they are being emitted.

Fires have been blamed for a long list of health illnesses. Wildland fire smoke has been linked to increased hospital admissions for asthma, strokes, and heart attacks. House fires have been associated with higher levels of cancer in firefighters. But new hazards arise when these types of fires are combined and amplified by burning entire neighborhoods. Health risks associated with WUI fire toxicants can persist beyond the active burning of the fire, due to contamination of the ecosystem and built environment. Exposure to these toxicants and health impacts can also extend well beyond the WUI communities, as smoke can be transported for hundreds to thousands of kilometers.^[5]

Studies have reported that several types of chemicals can be found at elevated concentrations inside of structures following WUI fires, including volatile organic compounds (VOCs) and heavy metals.^[6],[7],[8] Reports and independent studies have also demonstrated that unsafe levels of toxins can remain in homes after professional cleaning and can be redistributed throughout the home by the HVAC systems.^[9] Some types of contamination from WUI fire smoke damage may cause permanent physical damage to property and pose potential acute and chronic health impacts if it goes without sufficient remediation.^[10]

For homes that remain standing but have been impacted by WUI fire smoke and debris, there are no uniform state or federal standards pertaining to investigation, testing, and remediation for indoor chemical hazards. Residents returning to their homes have reported feeling concerned about whether it is safe to do so. In the absence of such standards, various entities have developed professional standards and certifications to guide the work of remediation and testing by contractors and hygienists, as well as recommendations for residents. Some guidance has been released from the state for soil contamination following WUI fires, which contains screening levels for various soil contaminants, step-by-step instructions for survivors and local authorities for soil sampling based on property damage levels, information on how to interpret results, and an overview of professional remediation methods.^[11] The state has not released similar guidance for indoor contaminants.

This bill would require CalEPA to develop standards and requirements for minimum sampling, testing, chemical screening levels, and clearance for residential properties that have sustained smoke damage as a result of a wildfire. AB 1795 also requires CalEPA and the CDI to establish training and certification requirements for anyone who inspects, evaluates, tests, remediates, or adjusts insurance claims.

1. Navigating a hazy insurance landscape. Following the Eaton and Palisades Fires, thousands of residential properties suffered damage from WUI fire smoke and its associated harmful contaminants. Under insurance policies, claims can be made for smoke damage when smoke residue, odor, or contamination impacts a property following a fire. CDI estimated that over 13,000 insurance claims involving standing homes that sustained smoke damage were filed after the WUI fires in Los Angeles County.

As claims were filed and addressed, CDI received complaints from policyholders regarding the handling of smoke damage claims, including disputes over the scope of investigation, claim denial, and the extent of remediation and restoration.¹⁰ Some policyholders reported feeling pressured to return to homes they suspected were unsafe and faced significant costs to test and restore their homes to pre-loss conditions. A lack of consistency in sampling and testing protocols, restoration methods, and claims adjusting practices has led to varying outcomes and frustrations for WUI fire survivors.

Additionally, the insurance industry has indicated operational and legal challenges associated with increased smoke damage claims; uncertainty with inconsistent standards and protocols for evaluating and remediating smoke damage; and competing expectations surrounding claims handling and insurance affordability.¹⁰

Thus, the need for uniform standards that guide the evaluation of smoke damage, remediation and restoration practices, and the handling of smoke damage insurance claims emerged. This bill would provide consistency through the development of standards and would require that all smoke damage insurance claims be subject to the developed standards, as specified.

1. Smoke Claims and Remediation Task Force. Out of recognition of the need for statewide standards for investigating and addressing smoke damage, CDI established the Smoke Claims and Remediation Task Force (Task Force) in May 2025. The Task Force was charged with the following:
   • Evaluating existing methods of best practices and recommending uniform standards for inspecting, testing, and remediating properties with smoke damage;
   • Recommending standards for determining whether structures damaged are below, at, or above, established levels for health and safety of occupants; and
   • Determining which state and local government agencies must be involved in creating and enforcing these standards.

On March 9, 2026, CDI released the Task Force’s findings in a report. The report documents various activities of the Task Force, including discussions on how smoke damage and contaminants should be addressed in the wake of WUI fires and urban conflagrations. Throughout the discussions, the Task Force heard from numerous stakeholders, including impacted homeowners and survivor groups, consumer advocates, academics, industrial hygienists, restoration specialists, local and state public health experts, insurance industry representatives, an attorney on behalf of policyholders, and an attorney on behalf of the insurance industry.

Key takeaways of the report highlighted areas of agreement and disagreement on how to address smoke damage. There was general consensus regarding the relatively greater potential for harm from toxins resulting from WUI fires; the need for standards for contaminants of concern in addition to existing standards; the utility of a tiered classification system for smoke damage claims with varying protocols; and the importance of training and certification programs for personnel involved in the insurance claim and remediation process, including, but not limited to insurance adjusters, industrial hygienists, remediation experts, and testing laboratories.

Areas of contention included the necessity for pre-remediation testing; the applicability of additional remediation and repeated clearance testing under an insurance claim; and the development of the tiered classification system for smoke damage claims based on distance from the fire perimeter and the activities that apply to the varying protocols.

This bill, sponsored by the Insurance Commissioner Ricardo Lara, was born out of the findings of the Smoke Claims and Remediation Task Force. Reflecting some of the arguments made during Task Force activities, this bill would require that the standards are developed with consideration of distance from the fire perimeter, which may have implications for what pre- and post-remediation testing are conducted.

Comments

1. Purpose of Bill. According to the author, “AB 1795 creates a consistent statewide framework for handling wildfire smoke damage insurance claims which would be the first in the nation. This bill would require that homes contaminated after a wildfire are properly evaluated and restored to a safe and habitable condition – and hold insurance companies accountable when standards are not met. Right now, the absence of statewide standards has created confusion, unfair claims handling, and uncertainty for families already coping with unimaginable losses. Consumer protection is my number one priority, and establishing clear rules will ensure that homeowners are protected and survivors can safely move back into their restored homes knowing they do not face life-long health risks. After a wildfire, recovery should not depend on a homeowner’s ability to navigate complex insurance disputes while their life is already turned upside down. More than a year after the most devastating fires Los Angeles has ever seen, there is no reason to delay. I am dedicated to swift passage of AB 1795, the Smoke Damage Recovery Act, to pave the way for a better process that insurance policyholders can rely upon.”
   
2. A presumption of attribution. Following the Eaton and Palisades fires, there have been many anecdotes of insurance claim denials for smoke damage, as insurers would indicate that evidence of contamination would not be attributable to the WUI fire, even if the test results were positive, and would determine the contamination to be pre-existing. These denials have left wildfire survivors without resources that may have been warranted and have led to litigation against insurers, costing everyone involved time and resources.

Opponents of the bill argue that a presumption that attributes evidence of contamination to a WUI fire would prevent the denial of rightful claims. To be more protective of wildfire survivors, it may be important to consider the inclusion of a presumption in this bill. Although the author committed to include a rebuttable presumption in this bill on the Assembly floor, one has not yet been included in the bill. The sponsors of the bill have indicated that a presumption is built in, as the adopted standards would apply to any residence within the impact zone, however, that has not been clear to the impacted groups, and it is unclear how CalEPA will employ such a presumption in the regulations.

Because there are concerns that opportunists may exploit the presumption for their own personal gain, a presumption could include additional guardrails to ensure it is employed appropriately. The presumption could be based off additional established standards that indicate an elevated level of contamination that is attributed to smoke from WUI fires. With this approach, agencies would also need to determine background levels and margins of error of which to compare the elevated level and the types of contaminants involved. This could provide a consistent baseline of which to make such a presumption.

The use of a presumption could also depend on the distance from the fire perimeter. This bill provides that the established standards and requirements shall consider differences based on distance of a residential structure from the fire perimeter, if appropriate. A presumption could be automatically made for residential structures within or closer to the fire perimeter, and the presumption based off an elevated level of contamination could apply to residential structures much further away.

Going forward, the author may wish to consider including in the established standards a rebuttable presumption that evidence of contamination is attributable to a WUI fire and pair the presumption with an elevated level of contamination or similar metric, such as detection sampling results.

1. Directing the use of industry standards. This bill requires that the estimate prepared by or for an insurer to be for an amount that will restore the damaged property to no less than its pre-loss condition and allow for restoration to be completed in a manner that meets or exceeds the CalEPA established standards, other relevant laws and regulations, and accepted trade and industry standards, as long as the trade and industry standards do not conflict with the CalEPA established standards and requirements. The trade and industry standards, such as from the Institute of Inspection Cleaning and Restoration Certification (IICRC) or the American Industrial Hygiene Association (AIHA), specify protocols for pre-restoration evaluation, wildfire impact assessment, sampling, analytical chemical methods, data interpretation, and restoration methods.

A particular protocol found to be problematic is the visual inspection and odor perception tests both as part of the pre-remediation evaluation and the restoration completion evaluation. These sensory tests can be subjective, and some technical guides even acknowledge that odor perception can vary by orders of magnitude between individuals. This can lead to inconsistent and insufficient assessment during pre- and post-remediation.

AB 1795 only references these trade and industry standards for provisions that involve post-remediation activities and includes a provision that they shall not conflict with the CalEPA established standards. However, it is not certain that the CalEPA established standards will preclude the use of visual and olfactory assessment, which could lead to its continued use. It may be important to continue to generally reference the use of these standards for some applications, as they are not exclusive to the sensory perception assessments, and may include helpful tools that could fall outside the scope or jurisdiction of CalEPA’s expertise. However, if there is consensus on the inadequacy of the sensory perception assessments, then the Legislature could give direction to explicitly exclude such tests, when appropriate. The author and committee may wish to consider ensuring the standards established by CalEPA indicate the appropriate and inappropriate employment of the visual and olfactory assessments as outlined in trade and industry standards.

1. Transformation and dissipation. This bill currently proposes that the standards and requirements developed by CalEPA consider whether certain wildfire smoke byproducts and associated hazardous substances dissipate with the passage of time. This accounts for one physical process that may occur with contamination from WUI fire smoke that may decrease the presence or concentrations of those chemicals. However, there are other physical processes that may impact the composition and toxicity of WUI fire smoke. Hazardous chemicals from WUI fire smoke can undergo chemical reactions, transform, and degrade over time, sometimes into substances that may be more toxic than the primary contaminants.⁵ Similar to the author’s intent to require CalEPA to consider physical changes to the chemistries of WUI fire smoke, the author and committee may wish to consider requiring CalEPA to consider whether certain wildfire smoke byproducts and associated hazardous substances transform with the passage of time when developing the standards and requirements.
2. Twin flames: AB 1642 & AB 1795. Another bill pending hearing before this committee, AB 1642 (Harabedian) addresses wildfire smoke contamination through establishing health-based standards, similar to this bill, except it does not include provisions that link the standards to insurance claims. Both bills require the establishment of health-based standards for testing, remediation, and clearance, but AB 1642 houses this work at DTSC in coordination with the Office of Environmental Health Hazard Assessment (OEHHA) and AB 1795 houses this work at the California Environmental Protection Agency (CalEPA), which houses both DTSC and OEHHA. If both bills are passed by the Legislature in their current form and signed by the Governor, they have the potential to duplicate efforts under CalEPA. While proponents have expressed that the intent differs between the two bills, there may still be jurisdictional overlap and questions regarding how any established standard will apply in the real-world, especially in the context of insurance.

Because of the wide-reaching implications and domestic importance of both bills, conversations regarding how they will fit together or co-exist will continue beyond this committee with coordination between both authors and the respective agencies. For the purpose of this analysis, below are considerations that could resolve areas of conflict or duplication:

• 1. Presumptions and proxies. AB 1642, which is primarily supported by wildfire survivors, includes a presumption that if WUI debris is present in a surviving structure after a WUI fire, then any identified contamination is a result of that WUI fire. This presumption has been deemed necessary due to experiences of insurance claim denials when a homeowner suspects their home has been contaminated with WUI debris and detection sampling results are ignored. The evaluations of contamination or smoke damage have also been contingent on visual and olfactory assessment, which can be more subjective than testing results for contaminants. If the inspector does not sense smoke damage or contamination, this could also lead to a decision to deny further testing and/or a denial of an insurance claim.

AB 1795 does not currently have such a presumption, although commitments for one may be forthcoming. It should be noted that the sponsors of AB 1795 have indicated that a presumption is built into the bill, as the adopted standards would apply to any residence within the impact zone, though it is uncertain what those standards will look like. There have also been concerns about the design of the impact zone and whether the standards would apply to potentially impacted homes. Generally, there are costs concerns associated with the presumption AB 1642 proposes as well concerns that opportunists may abuse it. There are also concerns with the number of tests that would need to be conducted as part of the presumption and pre-remediation testing.

To balance the concerns for costs and testing requirements with assurance that contamination will be addressed appropriately, agencies could be authorized to include a proxy (or proxies) in the standards that could act as a substitute for other types of contamination and indicate a certain likelihood that sampled contamination is associated with wildfire or WUI debris. There are various types of contaminants and contamination profiles associated with pre-existing background conditions, wildfires, and WUI fires.⁵ The regulators could determine whether one type of contaminant has a likelihood of co-existing with other types of contamination or debris, which could strengthen any argument of presumption or attribution. This proxy could be paired with an established elevated level described in comment 2 to provide a level of certainty to the attribution of the contamination to the wildfire or WUI fire.

Testing one proxy (or a limited set of proxies) could mitigate any concerns around the costs of multiple tests of contaminants and subsequent increases in insurance costs. The utilization of the proxy could also be distance-dependent, as a blanket presumption may be of more utility closer to the fire perimeter, whereas a proxy may be more useful much further downwind. It is important to note that this proxy would not substitute the need or determination for pre-remediation testing, however, it could serve as a cost-effective, scientifically based metric to base a presumption on and be more stringent than current industry inspection standards.

• 1. Standards and guidance. Although it has been indicated that AB 1642 does not apply in an insurance context, the current language does suggest implications for insurance protocols. AB 1642 is intended to focus on the development and adoption of health-based standards and guidance. AB 1795 is intended to focus on the same, but in conjunction with insurance protocols. Both standards are likely to assess some, if not the same, level of risk and could possibly take economic considerations into account.

Standards are typically applied within a regulatory framework with various considerations at play. AB 1642 could focus more on developing guidance with health-based thresholds that will not take economic considerations into account. This could be similar to thresholds OEHHA established as public health goals for drinking water that considers “no significant risk.” The State Water Board then sets drinking water standards as close to the public health goal as economically and technologically feasible with a stringent assessment of risk. A similar structure could be outlined here, with the health-based thresholds established for scientific clarity and standards developed that consider risk, the technological limitations of testing, and feasibility under the existing insurance framework. If AB 1642 were to reflect guidance instead of standards, it would be more in alignment with the author’s expressed intent. It should be noted, however, that guidance is not typically enforceable, whereas a standard set by AB 1795 would be.

1. Committee amendments. Staff recommends the committee adopt the bolded amendments contained in comments 3 & 4 above.

DOUBLE REFERRAL:

This measure was heard in Senate Committee on Insurance on June 24, 2026, and passed out of committee with a vote of 5-1.

Related/Prior Legislation

AB 1642 (Harabedian) would require DTSC to adopt regulations that specify standards for investigation, environmental testing, and clearance to guide the removal of contamination from wildland urban interface (WUI) fire debris in residential areas after a wildfire. This bill is pending before the Senate Environmental Quality Committee.

AB 1 (Connolly, Chapter 472, Statutes of 2025) required, by January 1, 2030 and every five years thereafter, CDI to consider whether to update the Safer from Wildfires regulations to include certain building hardening measures.

SB 1176 (Niello, 2024) would have required CAL FIRE, the California Governor's Office of Emergency Services, and DTSC, in consultation with academic and research institutions with demonstrated relevant expertise, and any other governmental agency or educational institution that may have experience in public health and wildfires, to form a workgroup related to toxic heavy metal exposure after a wildfire. This bill was held on the suspense file in the Assembly Appropriations Committee.

AB 541 (Wood, Chapter 530, Statutes of 2023) required the State Water Board to require a public water system that has experienced a major wildfire event of 300 acres or more and under specified conditions to perform sample collection and analysis of its source waters for the presence of benzene as soon as it is safe to do so; and authorized the State Water Board to require the public water system to take specified response actions if benzene is detected.

SOURCE:

Insurance Commissioner Ricardo Lara

SUPPORT:

Insurance Commissioner Ricardo Lara / California Department of Insurance

OPPOSITION:

301 Organics
350 Conejo
350 Conejo / San Fernando Valley
350 South Bay LA
350 South Bay Los Angeles
350 Southland Legislative Alliance
Altadena Arts
American Property Casualty Insurance Association
Ban Sup
Civic Sundays
Clergy Community Coalition
Dena Rise Up
Eaton Fire Collaborative
Eaton Fire Renters Coalition
Eaton Fire Residents United
End Child Poverty CA
Greenfaith
Hello Claire
Hollly Wyman Design
Joan Collaborative
L.a. Voice
Leap of Faith Family to Family Support
Little Tokyo Service Center
Long Beach Alliance for Clean Energy
Maeve Mt. Washington Glassell Park
Mcclain Consulting Services
My Tribe Rise
National Association of Mutual Insurance Companies
Pacific Association of Domestic Insurance Companies
Pacific Film Foundation
Pasadenans Organizing for Progress (POP!)
Personal Insurance Federation of California
Resilient Palisades
San Diego350
Sonoma County Climate Activist Network (SOCOCAN!)

-- END --

1. California Air Resources Board. (2026). Wildfires & Climate Change. ↑

2. CAL FIRE. (2025). Top 20 Most Destructive California Wildfires. ↑

3. U.S. Fire Administration. (2026). What is the WUI?. ↑

4. Cornwall, W. (2025). In the Ashes. ↑

5. National Academies of Sciences, Engineering, and Medicine. (2022). The Chemistry of Fires at the Wildland-Urban Interface. ↑

6. LA Fire Health Study. (2026). LA Fire HEALTH Study. ↑

7. Jech, S., et. al. (2024). Determination of Soil Contamination at the Wildland-Urban Interface after the 2021 Marchall Fire in Colorado, USA. ↑

8. Allen, J. et. al. (2025). Post-fire soil hazards: recommendations for updated soil testing protocols and clearance thresholds. ↑

9. Callimachi, R. and Migliozzi, B. (2025). How Did This Family End Up Back in a Toxic House?. ↑

10. California Department of Insurance. (2026). Report of the Smoke Claims and Remediation Task Force. ↑

11. Department of Toxic Substances Control. (2025). Residential Soil Evaluation. ↑

SENATE COMMITTEE ON INSURANCE

Senator Stephen Padilla, Chair

2025 - 2026 Regular

Bill No: AB 1795 Hearing Date: June 24, 2026

SUBJECT: Smoke Damage Recovery Act

DIGEST:

Requires that the California Environmental Protection Agency (CalEPA) develop, by June 30, 2027, health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage from a wildland-urban interface (WUI) fire or urban conflagration. Establishes a framework for the application and implementation of these standards, including the development of training and certification requirements for insurance adjusters and those who sample, test, or restore residential properties. Further sets down affiliated requirements for insurers, and responsibilities for the California Department of Insurance (CDI).

ANALYSIS:

Existing law:

1. Provides that a fire perimeter is determined by the Department of Forestry and Fire Protection (CAL FIRE) in consultation with the Office of Emergency Services (CalOES). Subsequently, CAL FIRE must provide the Insurance Commissioner (Commissioner) with data describing the fire perimeter so that the Commissioner may determine which ZIP Codes are within or adjacent to the fire perimeter. The Commissioner must then issue a bulletin to inform insurers which ZIP Codes are subject to a one-year moratorium.
2. Defines a “state of emergency” as the duly proclaimed existence of conditions of disaster or extreme peril to the safety of persons and property within the state, caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, cyberterrorism, sudden and severe energy shortage, electromagnetic pulse attack, plant or animal infestation or disease, among other conditions.
3. Regulates the licensing including exam, education, and background check requirements for insurance adjusters, who engage in investigation for the purpose of obtaining information while adjusting or participating in the disposal of any claim in connection with a policy of insurance.
4. Regulates the licensing including exam, education, and background check requirements of public insurance adjusters who act on behalf of an insured in negotiating for or effecting the settlement of a claim or claims for loss or damage under a policy of insurance.
5. Establishes the Hazardous Waste Control Law (HWCL) to authorize the Department of Toxic Substances Control (DTSC) to regulate the management of hazardous wastes in California.
6. Defines "hazardous waste" as waste, that, because of its quantity, concentration, or physical, chemical, or infectious characteristics:
7. Causes, or significantly contributes to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness.
8. Poses a substantial present or potential hazard to human health or the environment, due to factors including, but not limited to, carcinogenicity, acute toxicity, chronic toxicity, bio accumulative properties, or persistence in the environment, when improperly treated, stored, transported, disposed of, or otherwise managed.
9. Requires DTSC, under the HWCL, to adopt, and revise when appropriate, standards and regulations for the management of hazardous waste to protect against hazards to public health, domestic livestock, wildlife, or the environment.

This bill:

1. Requires CalEPA, on or before June 30, 2027, to develop health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration.
2. Stipulates that the standards and requirements mentioned above must include protocols, parameters, and thresholds for pre-remediation testing, post-remediation testing, and clearance of a residential property for habitation after remediation is completed.
3. Requires, in creating these standards, CalEPA to consult with agencies including DTSC, Office of Environmental Health Hazard Assessment (OEHHA), California Air Resources Board (CARB), California Department of Public Health (CDPH), air pollution control districts, and local public health departments, as necessary. Requires CalEPA to adopt regulations to implement or make the above provisions more specific.
4. States that CalEPA may create additional standards and requirements pertaining to a particular wildfire, including requirements for the identification of contaminants, supplementary minimum sampling and testing recommendations or requirements, or chemical screening levels for residential properties that have sustained smoke damage. Further states that these requirements, relating to a particular wildfire, shall be exempt from specified state laws that govern rulemaking.
5. Creates related definitions, including that "impact zone" means a ZIP Code that is either within the fire perimeter or adjacent to the fire perimeter, as specified, and downwind of the fire perimeter based on maps generated by the National Oceanic and Atmospheric Administration.
6. Requires CalEPA, by January 1, 2028, to consult with CDI, CDPH, the Department of Industrial Relations (DIR), Contractors State License Board (CSLB), State Water Resources Control Board (State Water Board), and any other state or local government agency, as may be necessary, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, remediates, or restores residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration, including industrial hygienists, restoration professionals, and laboratories.
7. Prohibits an insurer from terminating coverage for additional living expenses for a covered smoke damage claim submitted under a policy of residential property insurance, as a result of a WUI fire or urban conflagration until the property has been cleared for habitation pursuant to CalEPA's standards and requirements, subject to the applicable policy limit.
8. States that CalEPA's standards and requirements apply to all covered smoke damage claims within the impact zone submitted under policies of residential property insurance due to a WUI fire or urban conflagration.
9. Requires that, if a smoke damage insurance claim is settled on the basis of a written scope or estimate prepared by or for the insurer, the insurer must supply the claimant with a copy of each document upon which the settlement is based.
10. Stipulates that the estimate be for an amount that will restore the damaged property to at least its pre-loss condition and allow for restoration to meet or exceed CalEPA's standards and requirements, other relevant laws and regulations, and accepted trade and industry standards that do not conflict with CalEPA's standards and requirements.
11. Requires CDI, by January 1, 2028, to develop, implement, and enforce training and certification programs, as specified, for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a WUI fire or urban conflagration involving residential properties.
12. Makes related findings and declarations.
13. Contains an urgency clause.

Background

According to the author:

“AB 1795 creates a consistent statewide framework for handling wildfire smoke damage insurance claims which would be the first in the nation. This bill would require that homes contaminated after a wildfire are properly evaluated and restored to a safe and habitable condition – and hold insurance companies accountable when standards are not met. Right now, the absence of statewide standards has created confusion, unfair claims handling, and uncertainty for families already coping with unimaginable losses. Consumer protection is my number one priority, and establishing clear rules will ensure that homeowners are protected and survivors can safely move back into their restored homes knowing they do not face life-long health risks. After a wildfire, recovery should not depend on a homeowner’s ability to navigate complex insurance disputes while their life is already turned upside down. More than a year after the most devastating fires Los Angeles has ever seen, there is no reason to delay. I am dedicated to swift passage of AB 1795, the Smoke Damage Recovery Act, to pave the way for a better process that insurance policyholders can rely upon.”

ARGUMENTS IN SUPPORT:

According to Insurance Commissioner Ricardo Lara, sponsor of the bill:

“California has experienced record-breaking wildfires, including the January 2025 Eaton and Palisades Fires, which destroyed thousands of homes and left many more contaminated by smoke, soot, ash, char, and other hazardous substances. Thousands of smoke-damage insurance claims have since been filed. Because no authoritative, enforceable standards exist for testing or remediating smoke damage, survivors report inconsistent claims handling, partial or total denials, and refusals by insurers to pay for pre- or post-remediation testing. CDI has taken executive actions—including consumer bulletins, enforcement actions, and investigations—but the absence of standards has resulted in a patchwork of insurer practices. In response to the January 2025 fires, I convened a Smoke Claims and Remediation Task Force to develop recommendations for statewide standards and insurance coverage expectations.

Residential property insurance policies that cover the peril of fire also cover smoke damage caused by fire, and insurers are required to cover restoration of properties to pre-loss condition. However, California has no statewide standards governing the inspection or testing of smoke-damaged homes, no minimum sampling or clearance protocols, no mandated remediation methods, and no training or certification requirements for professionals who assess or remediate smoke damage. No state agency is currently designated to enforce uniform smoke-damage remediation standards, and existing claims-handling requirements lack the specificity needed for consistent enforcement.

The absence of enforceable standards has resulted in inconsistent insurer practices, including denials of testing, partial claim denials, and refusals to reimburse for pre- or post-remediation testing. Homeowners and tenants face uncertainty about whether their homes are safe to reenter, and many have been forced to pay for testing or remediation out of pocket. Without statewide standards, neither insurers nor regulators have a clear framework to ensure that smoke-damaged homes are restored to safe, habitable, pre-loss condition, and the resulting instability contributes to rising costs in the residential property insurance market

AB 1795 would create a comprehensive statewide framework for residential property insurance policies to ensure consistent, science-based handling of smoke-damage claims. This bill will mandate insurer compliance with remediation protocols and clarify their obligation to cover the cost of restoring properties to a pre-loss condition. Finally, AB 1795 also identifies the appropriate state agencies responsible for implementing and enforcing the standards and creates penalties for noncompliance.”

ARGUMENTS IN OPPOSITION:

According to the insurance associations known as the “Trades”:

“The insurance industry supports standards on the testing and remediation of smoke claims and actively participated in the Smoke Claims and Remediation Task Force established by the California Department of Insurance (CDI). Clear and credible standards benefit homeowners, regulators, and insurers. However, standards must be grounded in defensible science and structured in a way that is operationally feasible and legally durable.

AB 1795 introduces a comprehensive new framework governing wildfire smoke testing, remediation, and insurance claims handling. While intended to improve consistency and consumer outcomes, several provisions raise significant concerns for insurers related to contract certainty, retroactive application, operational feasibility, and cost escalation.

The bill was improved in Assembly Insurance Committee; however we do remain concerned with certain provisions of the bill. Most importantly the cost. In recent years we have seen the costs for smoke claims grow exponentially. These are claims where a home does not have a single ember touch the home, and in some cases are exhausting million-dollar policies. These are unpredictable costs that fall well outside underwriting expectations and the pricing of smoke coverage. If AB 1795 moves forward as drafted companies will have to anticipate that the entirety of a homeowner’s policy could be exhausted through smoke claims, thus undermining the affordability and availability benefits of mitigation.

To address this concern and continue towards greater market availability and affordability we have suggested to the author and sponsor that a sublimit on smoke should be included. This would cap smoke coverage at a percentage of the total policy coverage, such that cleaning, remediation, and testing are available without increasing the amount needed in claims paying capacity. This sublimit would be available with optional higher limits for those desiring higher coverage protection for smoke. This will contain the costs for those not in WUI or high smoke risk areas, while providing sufficient protection for homeowners and predictability to insurers. We appreciate the commitments made by the author to address this concern and are in active discussion with his office and the CDI to determine the best way to proceed.”

SUPPORT:

Insurance Commissioner Ricardo Lara / California Department of Insurance (Sponsor)

City of Los Alamitos

OPPOSITION:

301 Organics

350 Conejo

350 Conejo / San Fernando Valley

350 South Bay LA

350 South Bay Los Angeles

350 Southland Legislative Alliance

After the Fire

Altadena Arts

Altadena Colab

Altagether

American Property Casualty Insurance Association

Ban Sup

Biomax Environmental

California Community Foundation

Civic Sundays

Clergy Community Coalition

Consumer Attorneys of California

Consumer Watchdog

Dena Rise Up

Eaton Fire Collaborative

Eaton Fire Renters Coalition

Eaton Fire Residents United

End Child Poverty CA

Glendale Environmental Coalition

Greenfaith

Hello Claire

Hollly Wyman Design

Indivisible Alta Pasadena

Joan Collaborative

LA Voice

LA Standing Homes

Leap of Faith Family to Family Support

Little Tokyo Service Center

Long Beach Alliance for Clean Energy

Maeve Mt. Washington Glassell Park

McClain Consulting Services

My Tribe Rise

National Association of Mutual Insurance Companies

Pacific Association of Domestic Insurance Companies

Pacific Film Foundation

Pasadenans Organizing for Progress

Personal Insurance Federation of California

Resilient Palisades

San Diego 350

San Diego350

Sonoma County Climate Activist Network

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1795

Author:(Gipson)

As Amended Ver:May 18, 2026

2/3 vote. Urgency

SUMMARY

Requires that the California Environmental Protection Agency (CalEPA) develop, by June 30, 2027, health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland-urban interface (WUI) fire or urban conflagration; establishes a framework for the application and implementation of these standards, to include the development of training and certification requirements for insurance adjusters and persons who sample, test, or restore residential properties; requirements for insurers; and requirements pertaining to specified responsibilities for the California Department of Insurance (CDI); provides that this bill is an urgency statute.

Major Provisions

1. Requires CalEPA, on or before June 30, 2027, to develop health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration; requires the standards and requirements to include protocols, parameters, and thresholds for preremediation testing, postremediation testing, and clearance of a residential property for habitation after remediation is completed; requires CalEPA to consult with agencies that include, but are not limited to, the Department of Toxic Substances Control (DTSC), Office of Environmental Health Hazard Assessment (OEHHA), California Air Resources Board (CARB), California Department of Public Health (CDPH), air pollution control districts, and local public health departments, as necessary; and, requires CalEPA to adopt regulations to implement or make more specific the above provisions.
2. Authorizes CalEPA to impose, in addition to the standards and requirements described in bullet 1 above, additional standards and requirements pertaining to a specific wildfire, including requirements for the identification of contaminants, additional minimum sampling and testing recommendations or requirements, or additional chemical screening levels for residential properties that have sustained smoke damage; provides that these requirements, pertaining to a specific wildfire, shall be exempt from specified state laws that govern rulemaking.
3. Establishes multiple definitions, including that "impact zone" means a ZIP Code that is either within the fire perimeter, as specified; or adjacent to the fire perimeter, as specified, and downwind of the fire perimeter based on maps generated by the National Oceanic and Atmospheric Administration.
4. Requires CalEPA, by January 1, 2028, to consult with CDI, CDPH, the Department of Industrial Relations (DIR), Contractors State License Board (CSLB), State Water Resources Control Board (State Water Board), and any other state or local government agency, as may be necessary, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, remediates, or restores residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration, including industrial hygienists, restoration professionals, and laboratories.
5. Prohibits an insurer from terminating coverage for additional living expenses for a covered smoke damage claim submitted under a policy of residential property insurance, as a result of a WUI fire or urban conflagration until the property has been cleared for habitation pursuant to CalEPA's standards and requirements, subject to the applicable policy limit.
6. Provides that CalEPA's standards and requirements shall apply to all covered smoke damage claims within the impact zone submitted under policies of residential property insurance as a result of a WUI fire or urban conflagration.
7. Provides that, if a smoke damage insurance claim is settled on the basis of a written scope or estimate prepared by or for the insurer, the insurer shall supply the claimant with a copy of each document upon which the settlement is based; requires the estimate to be for an amount that will restore the damaged property to no less than its preloss condition and allow for restoration to be completed in a manner that meets or exceeds CalEPA's standards and requirements, all other laws and regulations applicable to the specific work being performed, and accepted trade and industry standards as long as these do not conflict with CalEPA's standards and requirements.
8. Requires CDI, by January 1, 2028, to develop training and certification programs, as specified, for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a WUI fire or urban conflagration involving residential properties on behalf of insureds, and to implement and enforce these programs, as specified.

COMMENTS

WUI fire implications for communities: According to CARB, the frequency and severity of wildfires have been increasing, both in the state and all over the world. The Eaton, Palisades, Camp, and Tubbs fires, as well as major wildfires in other states, including the 2023 Lahaina fire in Hawaii and 2021 Marshall Fire in Colorado, are all examples of WUI fires. The United States Fire Administration defines "WUI fire" to mean a type of wildfire that burns in the "zone of transition between unoccupied land and human development…the line, area or zone where structures and other human development meet or intermingle with undeveloped wildland or vegetative fuels."

Although the area burned in the WUI comprises a relatively small percentage of the overall burn area caused by wildfires, the majority of damage to human structures, including homes, businesses, and schools, occurs in the WUI. When fires in the WUI burn into densely populated areas, wildfires can transition into urban conflagrations, in which fires spread rapidly from structure-to-structure. In the wake of these fires, both the interiors and exteriors of structures can become polluted by smoke residue, ash, and debris, which in turn can contain toxic chemicals.

Indoor contaminants after WUI fires: In December 2025, the New York Times (NYT) article "How did this family end up back in a toxic house?" reported findings from an investigation, in which the NYT asked a family impacted by the Eaton Fire for permission to have a certified professional test for lead and other heavy metals in each room of their house, and to submit strands of hair so scientists could measure the family's exposure to metals over time. The family's home had already undergone cleaning recommended by their insurance company, which included ripping out their attic insulation; vacuuming and mopping their floors; wiping countertops and other surfaces; laundering carpets and drapes; and using air scrubbers in every room. The readings, taken a month after the family had moved back into their home, showed that six out of 11 samples collected in the house had "unsafe levels of contaminants, including extremely high levels of lead." The NYT also found that readings for lead on the floor next to the refrigerator and where the kitchen tile met the dining room floor were 27 times and seven times, respectively, the federal hazard limit for lead established under the United States Environmental Protection Agency's (US EPA) lead-based paint program. In addition, the investigation found a lead level near 8,000 micrograms/square foot (µg/ft²) in a sample taken from the Heating, Ventilation, and Air Conditioning (HVAC) in the attic. For context, the US EPA's action levels—the level at which the US EPA recommends abatement under its lead-based paint program—for lead in dust on floors, window sills, and window troughs are 5 µg/ft², 40 µg/ft², and 100 µg/ft², respectively. Hair samples from the family showed "measurable spikes in heavy metals after [the family] returned to the home in August, indicating a period of elevated exposure."

The need for uniform, health-protective standards: For homes, schools, and workplaces that remain standing, but have been impacted by WUI fire smoke and debris, there are no uniform state or federal standards pertaining to investigation, testing, and remediation for indoor chemical hazards. While there are screening and remediation goals for soil contaminants, testing protocols have been inconsistently applied. Residents returning to their homes have reported feeling concerned about whether it is safe to do so, as illustrated in the NYT article described above:

"Every day, he vacuums, mops and wipes every surface in his house, which stands on one of the blocks in Altadena, Calif., that survived the flames of the Los Angeles wildfires, but not the smoke.

He works in deliberate lines across the kitchen tile, then along the baseboards, then into the corners where the smoke pooled nearly a year ago—following a map only he can see.

It’s the only way to quiet his thoughts: Is it safe for his children, 6-year-old Sylvia and 9-year-old Milo, to walk barefoot on the kitchen tiles? Should he wash the toys they drop on the floor with bleach, or with soap and water? The darkest thoughts are about his wife, Cathlene Pineda, 41, a jazz pianist who is on medication for cancer. If the toxins were in the house, he wonders, could they bring the cancer back?"

The Smoke Claims and Remediation Task Force: In May 2025, the California Department of Insurance (CDI) established the Smoke Claims and Remediation Task Force (Task Force). The Task Force was charged with: 1) evaluating existing best practices and recommending uniform standards for inspecting, testing, and remediating properties with smoke damage; 2) recommending standards for determining whether structures damaged are below, at, or above, established levels for health and safety of occupants; and 3) determining which state and local government agencies must be involved in creating and enforcing these standards, including to mitigate the submission of fraudulent or exaggerated smoke claims.

In July 2025, CDI announced appointments to the Task Force. The Task Force was comprised of representatives from CDI, CDPH, the Los Angeles County Department of Public Health, the Department of Forestry and Fire Protection, United Policyholders, the Consumer Federation of California Education Foundation; Safeguard EnviroGroup, Inc.; Anderson Group International; HRA Environmental Consultants, Inc.; Forensic Analytical Consulting Services; Personal Insurance Federation of California; and the American Property Casualty Insurance Association.

On March 9, 2026, CDI released the Task Force's findings in a report. According to the report, the topic that elicited the most discussion involved a "tiered classification" concept, which posits that "the degree of smoke damage to an impacted home varies by the density of smoke in the area, direction of the wind, proximity of the home to the wildfire burn zone, duration of the fire, characteristics of the home, and other factors." With this concept in mind, the Task Force discussed a potential framework comprised of an "objective standard," based on the distance of homes from the fire perimeter, and a "wildfire-specific standard," based on designation of an "ash zone," defined as the area covered by settled, fine particulate residue, including soot, char, and ash carried by a smoke plume and winds. The aim of this tiered framework is to ensure that there are "default" standards available for immediate implementation in the wake of a WUI fire or urban conflagration (achieved through the impact zone approach), while allowing for flexibility via an alternative approach (the designation of a smoke exposure zone) in cases where major wind events disperse contaminants in ways that cannot be captured by the default impact zones.

This bill: As noted above, there are no pre-existing, wildfire-specific state or federal standards for indoor contaminants, and the science underlying these contaminants and their health implications is complex and emerging. Despite these challenges, there is a critical need for health-based standards and an associated regulatory framework to protect the health and safety of California's residents and communities, in an era of increasingly severe and frequent wildfires. Two bills this year—AB 1795 and AB 1642 (Harabedian) of the current legislative session—have taken up the challenge of tackling this issue and advancing critical conversations about how to approach it.

AB 1795 aims to fill this gap by requiring CalEPA to develop health-based standards for sampling, testing, and chemical screening levels for homes that have sustained smoke damage after a WUI fire or urban conflagration. AB 1795 also establishes a framework for the application and implementation of these standards, to include the development of training and certification requirements for insurance adjusters and persons who sample, test, or restore residential properties; requirements for insurers; and requirements pertaining to specified responsibilities for CDI.

According to the Author

"AB 1795 creates a consistent statewide framework for handling wildfire smoke damage insurance claims which would be the first in the nation. This bill would require that homes contaminated after a wildfire are properly evaluated and restored to a safe and habitable condition—and hold insurance companies accountable when standards are not met. Right now, the absence of statewide standards has created confusion, unfair claims handling, and uncertainty for families already coping with unimaginable losses. Consumer protection is my number one priority, and establishing clear rules will ensure that homeowners are protected and survivors can safely move back into their restored homes knowing they do not face life-long health risks. After a wildfire, recovery should not depend on a homeowner’s ability to navigate complex insurance disputes while their life is already turned upside down. More than a year after the most devastating fires Los Angeles has ever seen, there is no reason to delay. I am dedicated to swift passage of AB 1795, the Smoke Damage Recovery Act, to pave the way for a better process that insurance policyholders can rely upon."

Arguments in Support

According to Ricardo Lara, Insurance Commissioner at CDI:

"Residential property insurance policies that cover the peril of fire also cover smoke damage caused by fire, and insurers are required to cover restoration of properties to pre-loss condition. However, California has no statewide standards governing the inspection or testing of smoke-damaged homes, no minimum sampling or clearance protocols, no mandated remediation methods, and no training or certification requirements for professionals who assess or remediate smoke damage…The absence of enforceable standards has resulted in inconsistent insurer practices, including denials of testing, partial claim denials, and refusals to reimburse for pre- or post-remediation testing. Homeowners and tenants face uncertainty about whether their homes are safe to reenter, and many have been forced to pay for testing or remediation out of pocket. Without statewide standards, neither insurers nor regulators have a clear framework to ensure that smoke-damaged homes are restored to safe, habitable, pre-loss condition, and the resulting instability contributes to rising costs in the residential property insurance market.

AB 1795 would create a comprehensive statewide framework for residential property insurance policies to ensure consistent, science-based handling of smoke-damage claims. It will establish minimum protocols for inspection, sampling, and testing of smoke-related contaminants and sets clear thresholds for determining whether a property is safe. This bill will mandate insurer compliance with remediation protocols and clarify their obligation to cover the cost of restoring properties to a pre-loss condition. Finally, AB 1795 also identifies the state agencies responsible for implementing and enforcing the standards and creates penalties for noncompliance."

Arguments in Opposition

Writing in an opposed-unless-amended position, a coalition that includes wildfire survivor, community-based, and environmental organizations states:

"We represent more than 4,000 Altadena residents whose homes survived the Eaton Fire but were contaminated by smoke, ash, and hazardous debris. Our compiled testing data was presented to the CDI Smoke Claims and Remediation Task Force and incorporated as Appendix K of the Task Force Report. It showed that 100% of tested homes in Altadena were positive for lead before remediation, and 96% of remediated homes still showed detectable lead and 35% still showed asbestos after professional remediation…The April 27 amendments moved the bill in the wrong direction…

We acknowledge the following provisions as genuine progress.

1. The smoke damage definition was fixed. The prior version allowed insurers to argue that contamination did not count as smoke damage if they decided restoration was not needed. That circular language is gone.
2. Health-based standards are now the anchor for CalEPA's testing framework. The right agencies are in the consultation process.
3. CalEPA is required to consult with DTSC, OEHHA, CARB, and the State Department of Public Health.

We are asking this Committee to hold the bill until the following amendments are made.

1. Make CalEPA health-based clearance the sole restoration standard. Remove the trade standards (IICRC) language from Section 2060.2.
2. Require pre- and post-remediation testing for every covered claim, with no visual inspection gate.
3. Add a causation presumption. Where WUI debris is present and contamination is detected, the fire is presumed to have caused it.
4. Restore the rebuttable presumptions as the explicit basis for the insurer's testing cost obligation, not merely the policy terms.
5. Fix the 120-day deadline. The clock must run from discovery of contamination, not fire containment. Provide an 18-month window for fires occurring before the bill's effective date.
6. Add a savings clause. The bill establishes minimums. It does not limit or displace existing insurer obligations under California law.
7. Add floor language to each substantive provision clarifying it does not replace broader existing regulatory duties.
8. Expand scope to all structures. Schools, workplaces, and exteriors must be included.

Once these amendments are in place, restoring the open claims provision would mean the bill reaches the 13,000-plus survivors with active claims from the January 2025 fires. Without the amendments, restoring that provision would apply a weakened framework to open claims and could leave survivors worse off than they are today under existing California law."

Writing in opposition, a coalition of insurance industry groups comprised of the American Property Casualty Insurance Association, the National Association of Mutual Insurance Companies, Pacific Association of Domestic Insurance Companies, and the Personal Insurance Federation of California describes several concerns, including the following:

"The changes made in Assembly Insurance Committee address certain concerns from the industry and improve the feasibility of the bill. However, we continue to have concerns around the correct legal standard, cost concerns for policy holders and insurers, and technical revisions to the insurance contract terms.

Insurers have requested that reference to 'direct physical loss' be tied to the 'preloss condition' remediation standard throughout the bill. Including 'preloss condition' requirements throughout the bill without reference to the threshold requirement of 'direct physical loss' leaves open the door for continuation of the current legal disputes about which claims are valid and which aren't…

In recent years we have seen the costs for smoke claims grow exponentially. These are claims where a home does not have a single ember touch the home, and in some cases are exhausting million-dollar policies. These are unpredictable costs and are well outside what companies have anticipated, or charged, for smoke claims coverage. If AB 1795 moves forward as drafted companies will have to anticipate that the entirety of a homeowner's policy could be exhausted through smoke claims, thus eliminating any benefit that mitigation could have provided for availability and affordability. To address this concern and continue towards greater market availability and affordability we have suggested to the author and sponsor that a sublimit on smoke should be included...

This bill currently sets higher standards for insurer performance on smoke claims than for claims related to total losses. Throughout the bill we have made recommendations where certain safeguards are needed in consideration of contract terms for vendor selection, timeliness where shortages of vendors frustrate performance, and alignment with existing law. We view these provisions as being technical in nature to ensure that insurers are able to perform their negotiated contract obligations."

FISCAL COMMENTS

According to the Assembly Appropriations Committee, the following agencies, boards, departments, and offices anticipate costs should AB 1795 be enacted: $6 million in ongoing annual costs and ongoing annual contracting costs of an unknown, but potentially significant amount to CalEPA; one-time costs of $14,000 to CDI; ongoing annual costs of $624,000 to OEHHA; ongoing annual costs of $373,000 to CARB; one-time costs of $1.4 million in fiscal year 2027-28, followed by ongoing annual costs of $600,000 for DTSC; and costs of an unknown amount to the State Water Board, DIR, CSLB, and other impacted agencies.

VOTES

ASM ENVIRONMENTAL SAFETY AND TOXIC MATERIALS: 5-1-1

YES: Connolly, Bauer-Kahan, Lee, McKinnor, Papan

NO: Castillo

ABS, ABST OR NV: Ellis

ASM INSURANCE: 14-2-1

YES: Calderon, Addis, Alvarez, Ávila Farías, Berman, Ellis, Gipson, Harabedian, Krell, Nguyen, Ortega, Petrie-Norris, Michelle Rodriguez, Valencia

NO: Wallis, Hadwick

ABS, ABST OR NV: Chen

ASM APPROPRIATIONS: 11-4-0

YES: Wicks, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache

NO: Hoover, Dixon, Ta, Tangipa

UPDATED

VERSION: May 18, 2026

CONSULTANT: Naomi Ondrasek / E.S. & T.M. / (916) 319-3965 FN: 0003011

Date of Hearing: May 13, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1795

Author:(Gipson) – As Amended Ver:April 27, 2026

Urgency: Yes State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the California Environmental Protection Agency (CalEPA) to create statewide testing standards for smoke damage and establishes a smoke damage claim process under the California Department of Insurance (CDI).

Specifically, this bill, among other things:

1. Requires CalEPA, in coordination with other state agencies and local public health departments, to develop health-based standards for required sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland urban interface (WUI) fire or urban conflagration, as specified; requires the standards to include required parameters and thresholds for pre-remediation testing, post-remediation testing, and clearance of a residential property for habitation after remediation is completed (with specified requirements as provided in the bill); and, requires CalEPA to consult with agencies including Department of Toxic Substances Control (DTSC), the Office of Environmental Health Hazard Assessment (OEHHA), California Air Resources Board (CARB), California Department of Public Health (CDPH), and air pollution control districts, as necessary.
2. Requires CalEPA and the California Department of Forestry and Fire Protection (CAL FIRE) to adopt regulations as necessary to implement or make more specific the above requirements.
3. Authorizes CalEPA to impose requirements pertaining to a specific wildfire, including requirements for the identification of additional WUI or urban conflagration contaminants, additional minimum sampling and testing recommendations or requirements, or additional chemical screening levels for residential properties that have sustained smoke damage, and exempts these requirements from the Administrative Procedure Act.
4. Requires CalEPA, by January 1, 2028, to consult with CDI, CDPH, Department of Industrial Relations (DIR), Contractors State License Board (CSLB), State Water Resources Control Board (State Water Board), and any other state or local government agency, as necessary, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, or restores residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration, as specified.
5. Requires CalEPA to promulgate regulations, if necessary, to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which entity or entities will have jurisdiction over the different categories of persons subject to the requirements; requires these regulations to establish certification fees; provides that these fees shall be established at levels that do not exceed an amount sufficient to cover administration and enforcement costs; and requires fees to be deposited into the Wildfire Remediation Certification and Training Fund, established to support the above activities.
6. Prohibits an insurer from terminating coverage for additional living expenses for a covered smoke damage claim submitted under a policy of residential property insurance as a result of a WUI fire or urban conflagration that is declared a state of emergency, as specified, until the property has been cleared for habitation pursuant to the CalEPA guidance.
7. Provides that, in addition to the CalEPA guidance, if a local or state public health department, environmental agency, or any other government agency with jurisdiction over the area where a wildfire has occurred issues a public notice, bulletin, or advisory that provides explicit guidance pertaining to a specific wildfire, as specified, that guidance shall also apply to claims within the impact zone submitted under residential property insurance, as specified, using the same tiered sampling and testing recommendations for each zone developed by CalEPA.
8. Requires an insurer to be responsible for covering the cost of the sampling and testing required pursuant to this bill, as specified, subject to the terms and provisions of the policy; requires that all of a specified list of conditions and limitations apply to covered smoke damage claims resulting from a WUI fire or urban conflagration that is declared a state of emergency; provides that specified provisions in the bill apply to all policies of residential property insurance issued, amended, or renewed on or after the bill’s operative date; requires CDI to implement and enforce specified standards; gives CDI administrative authority to assess penalties for noncompliance, as specified; and authorizes CDI to adopt regulations as necessary to implement specified provisions of the bill.
9. Requires CDI, by January 1, 2028, to develop a training and certification program for public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a WUI fire or urban conflagration in residential properties on behalf of insurers, and requires CDI to implement and enforce these standards, as specified.

For a more detailed summary of this bill’s provisions, please see the Assembly Insurance Committee’s analysis of this bill.

FISCAL EFFECT:

1) CalEPA estimates ongoing annual costs of $6 million for 25 positions and ongoing annual contracting costs of an unknown but potentially significant amount to develop remediation requirements for residential properties that have sustained smoke damage from a WUI fire or urban conflagration, to establish wildfire remediation training and certification requirements, and to promulgate regulations to implement, administer, and enforce these requirements.

Most of these costs would be borne by the General Fund. The bill requires CalEPA’s regulations to implement, administer, and enforce training and certification requirements (for a person who inspects, evaluates, samples, tests, analyzes, or restores residential properties that have sustained smoke damage as a result of wildfire) and to establish fees to cover the agency’s administrative and enforcement costs (Wildfire Remediation Certification and Training Fund). However, any startup costs to implement this requirement would likely need to be covered by the General Fund.

2) The committee anticipates this bill may result in ongoing costs to CDI to enforce new standards for residential wildfire smoke damage insurance claims, including insurer obligations for testing, remediation payments, additional living expenses, claim timelines, and unfair practice penalties; adopt related regulations, as needed; and create and enforce training and certification programs for adjusters who inspect or evaluate smoke damage.

For its part, CDI estimates a one-time cost of $14,000 (Insurance Fund) to develop the training and certification program for adjusters.

3) OEHHA anticipates ongoing annual costs of $624,000 (Wildfire Remediation Certification and Training Fund and General Fund) for one position and contract dollars to maintain and update required standards; identify and develop additional standards as new WUI-related fire hazards are identified; prepare chemical assessments for WUI-related chemicals that currently lack an assessment; develop and oversee contracts to complete this work; and provide technical support to CalEPA in developing training materials and certification competencies to ensure certified professionals are knowledgeable about chemicals and their toxicities.

4) One-time or ongoing General Fund costs of an unknown amount to CAL FIRE to, among other things, coordinate with CalEPA on regulations.

5) ARB estimates ongoing annual General Fund costs of $373,000 for about two positions to consult with CalEPA on the development of health-based standards for smoke-damaged properties. ARB notes it is actively involved in the development of indoor air quality guidelines and conducts research on all aspects of indoor air quality, with a focus on determining levels of exposure to harmful indoor air pollutants like volatile organic compounds. ARB contends this type of research and indoor air quality expertise will be necessary as CalEPA develops its standards.

6) While the bill tasks CalEPA with creating the health-based standards and training certification requirements, DTSC anticipates considerable involvement in this process because of DTSC’s technical expertise, significant on-the-ground experience with wildfire emergency response, and recent experience developing and issuing its “Residential Soil Evaluation: Guidance for the 2025 Los Angeles Wildfires.” Accordingly, DTSC estimates General Fund contract costs of at least $1.4 million in fiscal year (FY) 2027-28, followed by ongoing annual General Fund costs of about $600,000 for two positions to, among other things, survey and collect information from other state and local entities, review the latest relevant literature, compile this information for factual and policy review by DTSC staff and management, assist CalEPA during regulation development, and, in an ongoing capacity, provide guidance related to the use of the established standards and requirements.

7) Costs of an unknown amount to the State Water Board, DIR, CSLB, and other impacted agencies.

The Legislative Analyst’s Office recently warned of General Fund structural deficits of around $35 billion per year in the 2027-28 FY and ongoing.

COMMENTS:

1) Purpose. According to the author:

AB 1795 creates a consistent statewide framework for handling wildfire smoke damage insurance claims which would be the first in the nation. This bill would require that homes contaminated after a wildfire are properly evaluated and restored to a safe and habitable condition – and hold insurance companies accountable when standards are not met. Right now, the absence of statewide standards has created confusion, unfair claims handling, and uncertainty for families already coping with unimaginable losses. Consumer protection is my number one priority, and establishing clear rules will ensure that homeowners are protected and survivors can safely move back into their restored homes knowing they do not face life-long health risks.

2) Background. Wildfire survivors have filed thousands of smoke damage insurance claims as a result of recent wildfires in the state, including the Eaton and Palisades fires in January 2025. According to CDI, because no authoritative, enforceable standards exist for testing or remediating smoke damage, survivors report inconsistent claims handling, partial or total denials, and refusals by insurers to pay for pre- or post-remediation testing. Contaminants from wildfires may also pose significant long-term risks to people’s health. CDI further notes while property insurance policies that cover fire also cover smoke damage caused by fire, California has no statewide standards governing the inspection or testing of smoke-damaged homes, no minimum sampling or clearance protocols, no mandated remediation methods, and no training or certification requirements for professionals who assess or remediate smoke damage. No state agency is currently designated to enforce uniform smoke damage remediation standards, and existing claims-handling requirements lack the specificity needed for consistent enforcement.

In May 2025, out of recognition that the state needs consistent statewide standards for investigating and paying smoke damage claims, CDI established the Smoke Claims and Remediation Task Force (Task Force). In March 2026, the Task Force issued its formal report. CDI is sponsoring this bill to set forth standards and protocols to ensure the health and safety of residents and for the proper handling of smoke-damaged residential property insurance claims caused by wildfires after consideration of the recommendations in the Task Force report, as well as other relevant scientific and health-based sources.

Among others in opposition to this bill, several associations representing the insurance industry argue that while the industry supports smoke claim testing and remediation standards and actively participated in the Task Force, these standards “must be grounded in defensible science and structured in a way that is operationally feasible and legally durable.” The coalition argues this bill, while intended to improve consistency and consumer outcomes, raises significant concerns for insurers related to contract certainty, retroactive application, operational feasibility, and cost escalation.

3) Related Legislation. AB 1642 (Harabedian) of the current legislative session requires DTSC to adopt regulations specifying science-informed, health-based standards to guide investigation, testing, and remediation efforts after WUI fire events. AB 1642 is pending in this committee.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 22, 2026

ASSEMBLY COMMITTEE ON INSURANCE

Lisa Calderon, Chair

ABPCA Bill Id:AB 1795 (

Author:Gipson) – As Amended Ver:April 16, 2026

SUBJECT: Smoke Damage Recovery Act

SUMMARY: Requires the California Environmental Protection Agency (CalEPA) to create, on or before June 30, 2027, statewide testing standards for smoke damage, and sets up a smoke claim process under the California Department of Insurance (CDI). Specifically, this bill:

1. Requires CalEPA, in coordination with other state agencies and local public health departments, as necessary, to develop health-based standards for required sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland urban interface (WUI) fire or urban conflagration, similar in scope to the "Residential soil evaluation: Guidance for the 2025 Los Angeles Wildfires" document developed by the Department of Toxic Substances Control (DTSC) and Department of Resources, Recycling and Recovery (CalRecycle); requires the standards to include required parameters and thresholds for preremediation testing, postremediation testing, and clearance of a residential property for habitation after remediation is completed; and, requires CalEPA to consult with agencies that include, but are not limited to, DTSC, the Office of Environmental Health Hazard Assessment (OEHHA), California Air Resources Board (CARB), California Department of Public Health (CDPH), and air pollution control districts, as necessary.
2. Provides that CalEPA's requirements consider differences, where appropriate, based on the distance of a residential structure from the fire perimeter; requires the following default zones to be used:
   1. High-impact zone;
   2. Moderate-impact zone; and,
   3. Low-impact zone.
3. Requires, if applicable, standards to be more stringent for the high-impact zone and less stringent for the moderate- and low-impact zones.
4. Authorizes CalEPA, the Department of Forestry and Fire Protection (CAL FIRE), or a city or county public health or safety agency to designate a smoke exposure zone for a specific wildfire.
5. Requires, if a smoke exposure zone is designated that the smoke exposure zone supersede CalEPA's default high-, moderate-, and low-impact zones, and that the requirements applicable to the high-impact zone apply within the smoke exposure zone.
6. Provides that CalEPA's requirements shall consider, where appropriate, whether certain wildfire smoke byproducts and associated hazardous substances dissipate with the passage of time.
7. Requires CalEPA and CAL FIRE to adopt regulations, as may be necessary to implement the above requirements, or make them more specific.
8. Authorizes CalEPA to impose requirements pertaining to a specific wildfire, including requirements for the identification of additional WUI or urban conflagration contaminants, additional minimum sampling and testing recommendations or requirements, or additional chemical screening levels for residential properties that have sustained smoke damage; provides that these requirements, pertaining to a specific wildfire, shall be exempt from specified state laws that govern rulemaking.
9. Authorizes CalEPA, as an interim measure before the adoption of the regulations, to impose sampling, testing, and chemical screening requirements pertaining to a specific wildfire that a person involved in the inspection, evaluation, testing, or remediation process shall comply with, including in an open, pending, or disputed insurance claim; provides that these interim measure requirements shall be exempt from specified state laws that govern rulemaking and become inoperative upon adoption of the regulations.
10. Defines "fire perimeter" as the footprint or entire outer boundary of a burned area as a result of a WUI fire or urban conflagration, as determined and mapped by CAL FIRE.
11. Defines "high-impact zone" as the area within the fire perimeter and within six miles from the fire perimeter, or the area within a smoke exposure zone designated for a specific wildfire.
12. Defines "moderate-impact zone" as the area within six miles to 12 miles from the fire perimeter, or within six miles from a smoke exposure zone designated for a specific wildfire.
13. Defines "low-impact zone" as the area greater than 12 miles from the fire perimeter, or the area greater than six miles from a smoke exposure zone designated for a specific wildfire.
14. Defines "person" as an individual, insurance company, association, organization, partnership, business trust, limited liability company, or corporation.
15. Defines "restoration of the property to preloss condition" as the removal of smoke damage residues, combustion byproducts, chemicals, contaminants, and odor caused by wildfire smoke exposure through remediation of the property, including structural elements, building systems, contents, and indoor environment, to the same condition that existed before exposure.
16. Defines "smoke damage" as exposure of residential property or its contents to wildfire smoke, combustion byproducts, and the chemicals and contaminants contained within the wildfire smoke.
17. Defines "smoke exposure zone" as the area exposed to significant settled, fine particulate residue, including soot, char, and ash, carried by a smoke plume and winds after a WUI fire or urban conflagration, as designated by CalEPA, CAL FIRE, or a city or county public health or safety agency.
18. Defines "urban conflagration” as a massive, uncontrollable fire, regardless of cause, that spreads rapidly from building to building through densely populated, developed areas, typically overwhelming fire suppression resources, and that has been designated and declared in a state of emergency, as specified; specifies that these fires are typically fueled by high winds, structural density, and flammable materials, often transitioning from WUI fires into surrounding communities.
19. Defines "wildfire" as a WUI fire, or an urban conflagration, that has been designated and declared a state of emergency, as specified.
20. Defines "wildland-urban interface fire" as a fire, regardless of cause, in the zone of transition between unoccupied land and human development, including the area or zone where structures and other human development meet or intermingle with undeveloped wildland or vegetative fuels, creating significant fire risk to developed areas and a significant number of structures, that has been designated and declared a state of emergency, as specified.
21. Requires CalEPA, by January 1, 2028, to consult with CDI, CDPH, the Department of Industrial Relations, Contractors State License Board, State Water Resources Control Board (State Water Board), and any other state or local government agency, as may be necessary, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, or restores residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration, including industrial hygienists, restoration professionals, and laboratories; requires the requirements to be tailored to each category of persons, depending on their role with regard to wildfire smoke damage.
22. Requires CalEPA to promulgate regulations, if necessary, to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which entity or entities will have jurisdiction over the different categories of persons subject to the requirements; requires these regulations to establish certification fees; provides that these fees shall be established at levels that do not exceed an amount sufficient to cover administration and enforcement costs; and requires fees to be deposited into the Wildfire Remediation Certification and Training Fund, established to support the above activities.
23. Prohibits an insurer from terminating coverage for additional living expenses for a covered smoke damage claim submitted under a policy of residential property insurance, as a result of a WUI fire or urban conflagration that is declared a state of emergency, as specified, until the property has been cleared for habitation pursuant to the CalEPA guidance.
24. Provides that, in addition to the CalEPA guidance if a local or state public health department, environmental agency, or any other government agency with jurisdiction over the area where a wildfire has occurred issues a public notice, bulletin, or advisory that provides explicit guidance pertaining to a specific wildfire—including identifying specific WUI or urban conflagration contaminants, minimum sampling and testing recommendations, and chemical screening levels for residential properties that have sustained smoke damage—then that guidance shall also apply to claims under residential property insurance, as specified, using the same tiered sampling and testing recommendations for each zone developed by CalEPA.
25. Provides that, until CalEPA develops the guidance, if a local or state public health department, environmental agency, or any other government agency with jurisdiction over the area where a wildfire has occurred issues a public notice, bulletin, advisory, or guidance that describes specific standards for sampling, testing, and chemical screening levels for residential smoke damage and restoration pertaining to a specific wildfire, then those standards shall apply to a person involved in the inspection, evaluation, testing, and restoration process, including in open, pending, or disputed insurance claims for that specific wildfire.
26. Requires an insurer to be responsible for covering the cost of the sampling and testing required pursuant to AB 1795, as specified, subject to the terms and provisions of the policy, specified conditions and limitations, and all of the following rebuttable presumptions:
    1. For residential properties in the high-impact zone: a rebuttable presumption that there is significant smoke damage exposure from the wildfire; requires the smoke damage claim to be classified as high impact for purposes of the type of inspection, evaluation, and testing it receives;
    2. For residential properties in the moderate-impact zone: a rebuttable presumption that the property shall initially be classified as moderate impact for purposes of the type of inspection, evaluation, and testing, if applicable, it receives; and,
    3. For residential properties in the low-impact zone: a rebuttable presumption that the property shall initially be classified as low impact for purposes of the type of inspection, if any, and evaluation it receives.
27. Provides that AB 1795 does not preclude an insurer from covering sampling and testing that exceeds AB 1795's requirements.
28. Requires that all of a specified list of conditions apply to covered smoke damage claims resulting from a WUI fire or urban conflagration that is declared a state of emergency, including that, if a smoke damage insurance claim is settled on the basis of a written scope or estimate prepared by or for the insurer, the insurer shall supply the claimant with a copy of each document upon which the settlement is based; requires the estimate to be for an amount that will restore the damaged property to no less than its condition before the loss and allow for restoration to be completed in a manner that meets or exceeds the CalEPA guidance and accepted trade and industry standards for the specific work being performed.
29. Requires that a specified list of conditions and limitations apply to covered smoke damage claims resulting from a WUI fire or urban conflagration that is declared a state of emergency, including the following:
    1. Notice of the claim shall be provided to the insurer within 120 days after the wildfire has reached 100% containment, as determined by CAL FIRE; an insurer shall provide an insured, or insured's representative, additional extensions of this time period for good cause if the insured, acting in good faith and with reasonable diligence, encounters a delay in providing notice of the claim that is beyond the control of the insured; provides that circumstances beyond the control of the insured may include either of the following, if applicable to the specific claim: the death, disability, injury, or incapacity of the insured; or, the inability of the insured to access the insured property as a result of governmental action or because the property is located in an area that is exposed to hazardous materials posing a health risk; and,
    2. If notice of the claim is given to an insurer later than the time period specified above, then the claim may be subject to a sublimit of no less than 10% of the policy limits, as specified.
30. Provides that specified provisions in AB 1795 apply to all policies of residential property insurance issued, amended, or renewed on or after AB 1795's operative date.
31. Requires CDI, by January 1, 2028, to develop training and certification programs, as specified, for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a WUI fire or urban conflagration in residential properties on behalf of insurers, and to implement and enforce these programs, as specified.
32. Authorizes CDI to adopt regulations as necessary to implement specified provisions under AB 1795.
33. Contains an urgency clause.
34. Makes findings and declarations.

EXISTING LAW:

1. Provides that a fire perimeter is determined by CAL FIRE in consultation with the Office of Emergency Services (CalOES). Subsequently, CAL FIRE must provide the Insurance Commissioner with data describing the fire perimeter so that the Commissioner may determine which ZIP Codes are within or adjacent to the fire perimeter. The Commissioner must then issue a bulletin to inform insurers which ZIP Codes are subject to a one-year moratorium. (Insurance Code, Section 675.1)
2. Defines “state of emergency” as the duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, cyberterrorism, sudden and severe energy shortage, electromagnetic pulse attack, plant or animal infestation or disease, the Governor’s warning of an earthquake or volcanic prediction, or an earthquake, or other conditions, other than conditions resulting from a labor controversy or conditions causing a “state of war emergency,” which, by reason of their magnitude, are or are likely to be beyond the control of the services, personnel, equipment, and facilities of any single county, city and county, or city and require the combined forces of a mutual aid region or regions to combat, or with respect to regulated energy utilities, a sudden and severe energy shortage requires extraordinary measures beyond the authority vested in the Public Utilities Commission. (Insurance Code, Section 2051.5; Government Code, Section 8558)
3. Establishes the Hazardous Waste Control Law (HWCL) to authorize DTSC to regulate the management of hazardous wastes in California. (Health and Safety Code (HSC) Section 25100, et seq.)
4. Defines "hazardous waste" as waste, that, because of its quantity, concentration, or physical, chemical, or infectious characteristics:
5. Causes, or significantly contributes to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness; or,
6. Poses a substantial present or potential hazard to human health or the environment, due to factors including, but not limited to, carcinogenicity, acute toxicity, chronic toxicity, bio accumulative properties, or persistence in the environment, when improperly treated, stored, transported, disposed of, or otherwise managed. (HSC Section 25141(b))
7. Requires DTSC, under the HWCL, to adopt, and revise when appropriate, standards and regulations for the management of hazardous wastes to protect against hazards to public health, domestic livestock, wildlife, or the environment. (HSC Section 25150)
8. Establishes DTSC's Toxicity Criteria for Human Health Risk Assessments, Screening Levels, and Remediation Goals (Toxicity Criteria Rule) for hazardous waste and hazardous substance cleanup sites; requires, among other things, that human health risk assessment calculations—including, but not limited to, all cancer risk and non-cancer hazard screening levels and corrective action objectives—use the toxicity criteria specified under the Toxicity Criteria Rule and attain human health protection, as specified. (22 California Code of Regulations (CCR) Section 68400.5).
9. Specifies, under the Toxicity Criteria Rule, criteria for all human health risk assessments, human health risk-based screening levels, and human health risk-based remediation goals statewide, for the cleanup of releases of hazardous waste or hazardous substances to the environment. (22 CCR Section 69020-69022)
10. Defines, under DTSC's health standards for the management of hazardous waste, "remediation goal" to mean a contaminant concentration that is media-specific (e.g., for air, groundwater, surface water, or soil affected by a release), site-specific, protective of human health and the environment, and used as a final cleanup goal for a response or corrective action. (22 CCR Section 69020(c)(5))
11. Defines, under DTSC's health standards for the management of hazardous waste, "screening level" to mean a risk-based, contaminant concentration, calculated as specified and considered to be protective for humans (including sensitive groups) over a lifetime. (22 CCR Section 69020(c)(6))
12. Requires DTSC to develop sampling and analytical methods for the collection of methamphetamine residue; requires DTSC, to the extent funding is available, to develop health-based target remediation standards for iodine, methyl iodide, and phosphine; authorizes DTSC, to the extent funding is available and using guidance developed by OEHHA, to develop additional health-based target remediation standards for additional precursors and byproducts of methamphetamine; requires DTSC to adopt investigation and cleanup procedures for use in the remediation of sites contaminated by the illegal manufacturing of methamphetamine; requires the procedures to ensure that contamination can be remediated to meet DTSC's remediation standards, to protect the health and safety of all future occupants of the site. (HSC Section 79380)
13. Establishes the federal Toxic Substances Control Act (TSCA), which, among other things, empowers the United States Environmental Protection Agency (US EPA) with the authority to require reporting, record-keeping, and testing requirements, and restrictions relating to chemical substances and mixtures. (15 U.S.C. Section 2601, et seq.)
14. Establishes, under TSCA, dust-lead hazard standards, post-abatement clearance levels, and abatement requirements for lead-based paint in certain residential structures. (40 Code of Federal Regulations (CFR) Section 745.61, et seq.)

FISCAL EFFECT: Unknown.

COMMENTS:

1. Purpose for the bill: According to the author: "AB 1795 creates a consistent statewide framework for handling wildfire smoke damage insurance claims which would be the first in the nation. This bill would require that homes contaminated after a wildfire are properly evaluated and restored to a safe and habitable condition—and hold insurance companies accountable when standards are not met. Right now, the absence of statewide standards has created confusion, unfair claims handling, and uncertainty for families already coping with unimaginable losses. Consumer protection is my number one priority, and establishing clear rules will ensure that homeowners are protected and survivors can safely move back into their restored homes knowing they do not face life-long health risks. After a wildfire, recovery should not depend on a homeowner’s ability to navigate complex insurance disputes while their life is already turned upside down. More than a year after the most devastating fires Los Angeles has ever seen, there is no reason to delay. I am dedicated to swift passage of AB 1795, the Smoke Damage Recovery Act, to pave the way for a better process that insurance policyholders can rely upon."
2. Wildfires are increasing in frequency and severity: According to CARB, the frequency and severity of wildfires have been increasing, both in the state and all over the world. Since 1950, the area burned annually by California wildfires has grown, as spring and summer temperatures increase and spring snowmelt occurs earlier.  CAL FIRE data show that four out of the five most destructive wildfires in California history happened in just the last 10 years. In 2025, the Eaton and Palisades fires in Los Angeles County destroyed over 16,000 structures and burned 38,000 acres combined; in 2018, the Camp Fire in Butte County destroyed nearly 19,000 structures and burned 153,000 acres; and in 2017, the Tubbs Fire in Napa and Sonoma counties destroyed more than 5,500 structures and burned nearly 37,000 acres.

When fires in the WUI burn into densely populated areas, wildfires can transition into urban conflagrations, in which fires spread rapidly from structure-to-structure. In the wake of these fires, both the interiors and exteriors of structures can become polluted by smoke residue, ash, and debris, which in turn can contain toxic chemicals. Emerging science points to the presence of toxic chemicals after WUI fire events. In the wake of the Eaton and Palisades fires, researchers from multiple research institutions—including Harvard University; the University of Southern California; Stanford University; the University of California (UC), Davis; UC, Irvine; UC, Los Angeles; the University of Texas at Austin; and Yale University—launched a collective scientific effort to investigate the short- and long-term health impacts of the fires. The 10-year study, called the LA Fire Health Study, aims to evaluate the types, levels, locations, and human health impacts of pollutants associated with the fires. So far, the collaborative has reported, through a series of briefs, the discovery of several types of concerning chemicals inside and outside of structures, including volatile organic compounds (VOC) in indoor and outdoor air; chromium-6 in outdoor air; and benzene and other VOCs in tap water.

1. AB 1795: This measure was previosuly heard in the Assembly Environmental Safety & Toxic Materials Committee, therefore this analysis will focus on those issues that fall under the Assembly Insurance Committee jurisdiction.

The Pacific Palisades and Eaton wildfires highlighted a number of weaknesses. AB 1795 attempts to address a major weakness: the absence of statewide smoke damage standards for residential properties damaged by smoke exposure from wildfire. The fall out of these fires highlighted that each insurer approaches smoke damage claims differently and on a case-by-case basis. The statewide standards established under AB 1795 would include standards for inspection, testing and remediation for residential properties. The measure also provides protocols for admitted insurers to follow in relation to smoke damage. Additionally, AB 1795 creates training and certification requirements for professionals involved in smoke-damage assessment and cleanup.

Two points in AB 1795’s finding and declarations are important to highlight because they get to the purpose of this bill:

“While all property insurance policies that cover the peril of fire also cover smoke damage resulting from fire, the extent to which insurance companies are covering the remediation and restoration of properties has been inconsistent, and many residents are concerned that they will incur significant financial burden to remediate and restore their properties on their own.

While remediation of smoke damage is made more challenging due to the varying severity of smoke inundation on the exterior and interior of properties, consistent standards are vitally needed regarding the inspection, testing, and remediation of smoke damage on residential properties after a fire so that the Department of Insurance is able to enforce insurance companies’ remediation obligations and so that residential properties are rendered safe and habitable and restored to preloss condition.”

California would be the first state to create and implement statewide smoke damage standards should this measure become law.

1. Smoke Damage Claim Litigation and Challenges: A number of lawsuits are still pending around smoke damage claims, but even case law does not provide a clear pathway to how best to approach smoke damage.

• LA wildfire victims vs. Los Angeles Department of Water and Power: Lawsuit alleges that utility-caused fires led to widespread smoke contamination.
• A number of homeowner lawsuits against insurers: numerous individual and class‑style actions alleging improper denial or underpayment of smoke damage claims. Environmental contamination lawsuits: cases involving toxic debris, ash, and smoke particulates after major fires (e.g., Camp Fire, Marshall Fire)
• Bottega, LLC v. National Surety Corp. (N.D. Cal. Jan. 10, 2025): A Napa Valley restaurant contaminated by smoke from the 2017 North Bay Fires sought coverage. Court ruled for the policyholder, finding smoke and soot infiltration could constitute covered physical loss.
• Gharibian v. Wawanesa (Cal. Ct. App. Feb. 7, 2025) Homeowners filed a claim after the 2019 Saddle Ridge Fire caused extensive smoke and ash contamination. Court ruled for the insurer, holding that contamination did not constitute “demonstrable, physical alteration.”

In December 2025, the New York Times (NYT) article "How did this family end up back in a toxic house?" reported findings from an investigation, in which the NYT asked a family impacted by the Eaton Fire for permission to have a certified professional test for lead and other heavy metals in each room of their house, and to submit strands of hair so scientists could measure the family's exposure to metals over time. The family's home had already undergone cleaning recommended by their insurance company, which included ripping out their attic insulation; vacuuming and mopping their floors; wiping countertops and other surfaces; laundering carpets and drapes; and using air scrubbers in every room. The readings, taken a month after the family had moved back into their home, showed that six out of 11 samples collected in the house had "unsafe levels of contaminants, including extremely high levels of lead." The NYT also found that readings for lead on the floor next to the refrigerator and where the kitchen tile met the dining room floor were 27 times and seven times, respectively, the federal hazard limit for lead established under the US EPA's lead-based paint program. In addition, the investigation found a lead level near 8,000 µg/ft² in a sample taken from the HVAC in the attic. For context, the US EPA's action levels—the level at which the US EPA recommends abatement under its lead-based paint program—for lead in dust on floors, window sills, and window troughs are 5 µg/ft², 40 µg/ft², and 100 µg/ft², respectively. Hair samples from the family showed "measurable spikes in heavy metals after [the family] returned to the home in August, indicating a period of elevated exposure."

The article referenced above highlights the complexities of smoke damage and how challenging it may be as it relates to an insurance claim.

Furthermore, the California FAIR Access to Insurance Requirements (FAIR) Plan is a good example of the challenges that CDI faces in regards to smoke damage. In 2017, the FAIR Plan redefined “direct physical loss” to require “permanent physical changes” to the property, which leads us to today. On June 27, 2025, after 4 years of litigation, the Los Angeles Superior Court ruled in the case of Alif v. California Fair Plan Association that several key aspects of a FAIR Plan policy unlawfully restricted coverage compared to the standard fire policy requirements under the California Insurance Code. (Insurance Codes Sections 2070 and 2071)

The issue at hand was the FAIR Plan handling of smoke claims policies, for which "direct physical loss” meant coverage was only available to damage that was perceptible by sight or smell. FAIR Plan policies provide coverage for “direct physical loss,” defined as "any actual loss or physical damage evidenced by permanent physical damages or changes to the covered property caused by smoke damage." The definition of smoke damage includes sudden and accidental physical loss from smoke, including airborne particles like soot, ash, or char debris that are visible to the "unaided human eye", or "odors detectable by the unaided human nose." The policy specifically excludes reliance on laboratory testing or individual subjective senses.

The FAIR Plan policy also contains a unique dispute resolution process for smoke damage claims. Homeowners may choose between two methods. Under Method 1, both sides appoint a neutral party, who jointly select a third person to serve as an umpire. This three-person panel inspects the property and determines by majority vote whether evidence of smoke damage exists. The decision is binding. Alternatively, Method 2 allows for a sole neutral umpire to make the determination, with the parties sharing the cost. If the smoke damage is confirmed through either method but the parties dispute the amount of loss, the claim proceeds to a separate appraisal process governed by the policy's appraisal provision.

The court issued a formal declaration holding that the FAIR Plan policy's definition of "direct physical loss" violated Insurance Code Section 2070 because it provided coverage less favorable than, and not substantially equivalent to, the coverage required by the standard form fire policy.

Following this case, CDI brought action against the FAIR Plan in July 2025 for denying smoke damage claims in the response to the Pacific Palisades and Eaton wildfires. According to CDI data, they received approximately 220 smoke claims complaints related to the FAIR Plan. A number of smoke claims lawsuits were filed in 2025, and have yet to be decided.

1. Statewide smoke Process: For homes that have burned, CalRecycle and DTSC, along with federal partners, implement a phased approach to clearing properties. Typically, Phase 1 involves the removal of visible household hazardous waste (e.g., batteries, pesticides, paints, building materials that contain asbestos, and e-waste) and Phase 2 includes soil testing and the removal of contaminated debris, ash, and soil. In the case of the Los Angeles fires, the Federal Emergency Management Agency assigned Phase 2 to the U.S. Army Corps of Engineers. California formally requested, but the federal government denied, confirmation soil sampling as part of the debris removal process.

For homes that remain standing but have been impacted by WUI fire smoke and debris, there are no uniform state or federal standards pertaining to investigation, testing, and remediation for indoor chemical hazards. Residents returning to their homes have reported feeling concerned about whether it is safe to do so, as illustrated in the NYT article described above:

"Every day, he vacuums, mops and wipes every surface in his house, which stands on one of the blocks in Altadena, Calif., that survived the flames of the Los Angeles wildfires, but not the smoke.

He works in deliberate lines across the kitchen tile, then along the baseboards, then into the corners where the smoke pooled nearly a year ago—following a map only he can see.

It’s the only way to quiet his thoughts: Is it safe for his children, 6-year-old Sylvia and 9-year-old Milo, to walk barefoot on the kitchen tiles? Should he wash the toys they drop on the floor with bleach, or with soap and water? The darkest thoughts are about his wife, Cathlene Pineda, 41, a jazz pianist who is on medication for cancer. If the toxins were in the house, he wonders, could they bring the cancer back?"

In the absence of state and federal health-based standards, various entities have developed professional standards and certifications to guide the work of remediation and testing by contractors and hygienists, as well as recommendations for residents. In August 2025, DTSC and CalRecycle released their "Residential soil guidance for the 2025 Los Angeles wildfires," which contains screening levels for various soil contaminants (screening levels are used to help determine if the amount of chemicals in a sample indicates a health risk), step-by-step instructions for survivors and local authorities for soil sampling based on property damage levels, information on how to interpret results, and an overview of professional remediation methods. The state has not released similar guidance for indoor contaminants.

1. CDI Action on Smoke Claims: Following the January 2025 wildfires, CDI issued a bulletin on March 7, 2025( Bulletin 2025-7 Insurance Coverage for Smoke Damage and Guidance for Proper Handling of Smoke Damage Claims for Properties Located in or near California Wildfire Damage )to all admitted insurers providing “guidance for proper handling of smoke damage claims for properties located in or near California wildfire areas.” The bulletin replayed CDIs expectations with regard to how insurance companies process and pay smoke damage claims as a result of wildfires. More specifically, CDI stated “whether a particular smoke damage claim is covered depends on the specific policy language and the unique facts of each claim.”

The Smoke Claims and Remediation Task Force: In May 2025, out of recognition that California needs consistent statewide standards for investigating and paying smoke damage claims, CDI established the Smoke Claims and Remediation Task Force (Task Force). The Task Force was charged with:

• Evaluating existing methods of best practices and recommending uniform standards for inspecting, testing, and remediating properties with smoke damage;
• Recommending standards for determining whether structures damaged are below, at, or above, established levels for health and safety of occupants; and,
• Determining which state and local government agencies must be involved in creating and enforcing these standards, including to mitigate the submission of fraudulent or exaggerated smoke claims.

In July 2025, CDI announced appointments to the Task Force. The Task Force was comprised of representatives from CDI, CDPH, the Los Angeles County Department of Public Health, CAL FIRE, United Policyholders, the Consumer Federation of California Education Foundation; Safeguard EnviroGroup, Inc.; Anderson Group International; HRA Environmental Consultants, Inc.; Forensic Analytical Consulting Services; Personal Insurance Federation of California; and the American Property Casualty Insurance Association.

On March 9, 2026, CDI released the Task Force's findings in a report. The report documents presentations the Task Force heard, materials the Task Force reviewed, and Task Force discussions, including differing perspectives on how smoke damage and contaminants should be addressed in the wake of WUI fires and urban conflagrations. The Task Force heard from numerous stakeholders, including impacted homeowners and survivor groups, consumer advocates, academics, industrial hygienists, restoration specialists, local and state public health experts, insurance industry representatives, an attorney on behalf of policyholders, and an attorney on behalf of the insurance industry.

According to the report, the topic that elicited the most discussion involved a "tiered classification" concept, which posited that "the degree of smoke damage to an impacted home varies by the density of smoke in the area, direction of the wind, proximity of the home to the wildfire burn zone, duration of the fire, characteristics of the home, and other factors." With this concept in mind, the Task Force discussed a potential framework comprised of an "objective standard," based on the distance of homes from the fire perimeter, and a "wildfire-specific standard," based on designation of an "ash zone," defined as the area covered by settled, fine particulate residue, including soot, char, and ash carried by a smoke plume and winds.

AB 1795 adopts a tiered impact zone framework in which homes are designated as being in a particular impact zone (high, moderate, or low) based on pre-determined distances from the fire perimeter; or designated as being inside or outside of a smoke exposure zone (defined as an area exposed to soot, char, and ash carried by a smoke plume and winds), which may be established after a wildfire event by CalEPA, CAL FIRE, or a city or county public health or safety agency. According to CDI, the aim of this tiered framework is to ensure that there are "default" standards available for immediate implementation in the wake of a WUI fire or urban conflagration (achieved through the impact zone approach), while allowing for flexibility via an alternative approach (the designation of a smoke exposure zone) in cases where major wind events disperse contaminants in ways that cannot be captured by the default impact zones.

While there was consensus among some Task Force members that this approach held potential, some raised questions and concerns. According to the Task Force Report, CDPH asserted that "the proposed mileage cutoffs for defining high, moderate, and low impact zones [were] somewhat arbitrary and [lacked] justification and that although they [appeared] to be based on the distance cutoffs used in the [American Industrial Hygiene Association] Technical Guide, those were intended only as examples to describe the conceptual model and that the use of 1 km, 10 km, and 100 km zones was not meant to imply any actual relevance to real situations."

The committee amendments recommended below attempt to address this issue.

1. Arguments in Support: According to Ricardo Lara, Insurance Commissioner at CDI: "California has experienced record-breaking wildfires, including the January 2025 Eaton and Palisades Fires, which destroyed thousands of homes and left many more contaminated by smoke, soot, ash, char, and other hazardous substances. Thousands of smoke-damage insurance claims have since been filed. Because no authoritative, enforceable standards exist for testing or remediating smoke damage, survivors report inconsistent claims handling, partial or total denials, and refusals by insurers to pay for pre- or post-remediation testing. CDI has taken executive actions—including consumer bulletins, enforcement actions, and investigations—but the absence of standards has resulted in a patchwork of insurer practices. In response to the January 2025 fires, I convened a Smoke Claims and Remediation Task Force to develop recommendations for statewide standards and insurance coverage expectations.

Residential property insurance policies that cover the peril of fire also cover smoke damage caused by fire, and insurers are required to cover restoration of properties to pre-loss condition. However, California has no statewide standards governing the inspection or testing of smoke-damaged homes, no minimum sampling or clearance protocols, no mandated remediation methods, and no training or certification requirements for professionals who assess or remediate smoke damage…The absence of enforceable standards has resulted in inconsistent insurer practices, including denials of testing, partial claim denials, and refusals to reimburse for pre- or post-remediation testing. Homeowners and tenants face uncertainty about whether their homes are safe to reenter, and many have been forced to pay for testing or remediation out of pocket. Without statewide standards, neither insurers nor regulators have a clear framework to ensure that smoke-damaged homes are restored to safe, habitable, pre-loss condition, and the resulting instability contributes to rising costs in the residential property insurance market.

AB 1795 would create a comprehensive statewide framework for residential property insurance policies to ensure consistent, science-based handling of smoke-damage claims. It will establish minimum protocols for inspection, sampling, and testing of smoke-related contaminants and sets clear thresholds for determining whether a property is safe. This bill will mandate insurer compliance with remediation protocols and clarify their obligation to cover the cost of restoring properties to a pre-loss condition. Finally, AB 1795 also identifies the state agencies responsible for implementing and enforcing the standards and creates penalties for noncompliance."

1. Arguments in Opposition: According to the opposition, The American Property Casualty Insurance Association (APCIA), the National Association of Mutual Insurance Companies (NAMIC), the Pacific Association of Domestic Insurers (PADIC), and the Personal Insurance Federation of California (PIFC), collectively known as the “trades”, “the insurance industry supports standards on the testing and remediation of smoke claims and actively participated in the Smoke Claims and Remediation Task Force established by the California Department of Insurance (CDI). Clear and credible standards benefit homeowners, regulators, and insurers. However, standards must be grounded in defensible science and structured in a way that is operationally feasible and legally durable.

AB 1795 introduces a comprehensive new framework governing wildfire smoke testing, remediation, and insurance claims handling. While intended to improve consistency and consumer outcomes, several provisions raise significant concerns for insurers related to contract certainty, retroactive application, operational feasibility, and cost escalation.

Contract Certainty Risks: Expansion beyond traditional “direct physical loss or damage”: Multiple provisions redefine “smoke damage” as exposure that “requires restoration,” without specifying who makes that determination or tying it clearly to demonstrable physical damage. This approach departs from long-standing property insurance constructs and risks undermining the predictability and uniformity that the Standard Fire Policy framework is intended to provide. The bill makes reference to “unsettled caselaw,” however it is not an issue in dispute. Gharibian v. Wawanesa General Insurance Company (2025) 108 Cal.App.5th 730 established that “direct physical loss” is a necessary showing in order for smoke claims to be covered. This bill changes that legal standard.

Undefined standards for “clearance for habitation”: The bill repeatedly conditions insurer obligations—particularly Adjusted Living Expenses (ALE)—on a property being “cleared for habitation,” but does not define clearance thresholds. This creates uncertainty about when coverage obligations end and invites dispute. Absent a defined endpoint, insurers, homeowners, and regulators are left without a clear standard for when coverage obligations conclude, increasing the likelihood of dispute and litigation.

Potential expansion beyond insured property: References to remediation frameworks analogous to “residential soil evaluation” raise concern that standards could extend to soil, ambient air, or broader environmental conditions, which are typically outside property insurance coverage.”

1. Double referral: This measure recently passed out of the Assembly Environmental Safety & Toxic Materials Committee with a 5-1 vote.
2. Related legislation: AB 1642 (Harabedian). Establishes the Wildfire Environmental Safety and Testing Act, which, among other things, requires DTSC, by July 1, 2027, to adopt emergency regulations specifying science-informed, health-based standards to guide the adequate removal of lead and asbestos inside and outside of standing homes, schools, workplaces, and other structures after a WUI fire; requires, by July 1, 2028, DTSC to adopt non-emergency regulations specifying standards for additional contaminants. This bill is pending before the Assembly Appropriations Committee.
3. Recommended Amendments: This measure is attempting to tackle a major issue spotlighted after the January 2025 wildfires. As stated previously, California would be the first state to create statewide smoke damage standards should this bill be signed. With that in mind, careful thought and consideration needs to go into this measure as it will have direct impacts on California’s insurance market. While this bill is still in the beginning of the legislative review process, a lot more work is needed should it move forward. The committee is recommending the following amendments to address the issues/confusion/frustration around the tiered zone approach. The bill only applies to wildfires that are a declared state of emergency; therefore, the committee recommends removing the tiered zone system and applying the bill to ZIP Codes determined by CDI for the existing one year moratorium plus adjacent zip codes that are identified as downwind based on maps generated by the National Oceanic and Atmospheric Administration. These ZIP Codes would be known soon after the Governor declared a state of emergency and easy to track by survivors and insurers. The recommended amendments also make clear that the deciding entities are CalEPA pertaining to smoke damage standards and CDI pertaining to insurers. This bill arose partly due to the case-by-case approach taken by each insurer on what constitutes smoke damage; therefore, anything in the bill that supports having potentially different and differing smoke damage standards between the state or a local government/agencies are recommended to be deleted. CalEPA and CDI will likely need to issue additional regulations once CalEPA has completed the initial work which this measure allows them to do.
   1. On page 6- line 36, delete, “the”, delete lines 37-40
   2. On page 7 delete lines 1-15
   3. On page 8, delete lines 1-7
   4. On page 8 delete lines 22-33 and insert:

“Impact-zone” means ZIP Codes:

Within the fire perimeter as defined pursuant to Section 675.1 (b)(2) of the Insurance Code; and,

Adjacent ZIP codes as defined pursuant to 675.1 (b)(2) of the Insurance code that are also identified as downwind of the fire perimeter based on maps generated by the National Oceanic Atmospheric Administration.

• 1. On page 9 delete line 6-12
  2. On page 11, line 30 after ‘claims” insert “within the impact zone”
  3. On page 12, line 7 delete “for each zone”
  4. On page 12, delete line 9-20
  5. On page 12, line 25, delete “and all” and delete lines 26-39

REGISTERED SUPPORT / OPPOSITION:

Support

City of Los Alamitos
Insurance Commissioner Ricardo Lara / California Department of Insurance

Support If Amended

Institute of Inspection Cleaning and Restoration Certification
United Policyholders

Oppose

American Property Casualty Insurance Association
California Community Foundation
Consumer Watchdog
National Association of Mutual Insurance Companies
Pacific Association of Domestic Insurance Companies
Personal Insurance Federation of California

Oppose Unless Amended

After the Fire
Altadena Arts
Altadena Colab
Altagether
Biomax Environmental
Civic Sundays
Consumer Attorneys of California
Dena Rise Up
Eaton Fire Renters Coalition
Eaton Fire Residents United
Glendale Environmental Coalition
Hello Claire
Hollly Wyman Design
Indivisible Alta Pasadena
Joan Collaborative
L.a. Voice
LA Standing Homes
Long Beach Alliance for Clean Energy
Mcclain Consulting Services
My Tribe Rise

Analysis Prepared by: Kathleen O'Malley / INS. / (916) 319-2086

Date of Hearing: April 14, 2026

ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS

Damon Connolly, Chair

ABPCA Bill Id:AB 1795 (

Author:Gipson) – As Amended Ver:April 7, 2026

SUBJECT: Smoke Damage Recovery Act

SUMMARY: Requires that the California Environmental Protection Agency (CalEPA) develop, by June 30, 2027, health-based standards for required sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland-urban interface (WUI) fire or urban conflagration; establishes a framework for the application and implementation of these standards, to include the development of training and certification requirements for insurance adjusters and persons who sample, test, or restore residential properties; requirements pertaining to insurers and insured individuals; and requirements pertaining to specified responsibilities for the California Department of Insurance (CDI). Specifically, this bill:

1. Makes numerous findings and declarations, including that:
2. Thousands of smoke damage insurance claims have been filed as a result of recordbreaking wildfires, and the lack of universally recognized standards for testing, evaluation, and remediation of smoke damage has prompted complaints from survivors that their insurance companies have completely or partially denied their smoke damage or have refused to conduct, or reimburse for, preremediation testing or postremediation clearance testing to ensure their homes have been properly restored to preloss condition;
3. Smoke, soot, char, ash, and other contaminants that emanate from wildfires cause damage to properties by depositing particulate matter, gases, heavy metals, volatile organic compounds (VOCs), and other pollutants onto personal property and into the walls, floors, ceilings, surfaces, and other infrastructure of a property. Those contaminants not only compromise the integrity of the premises, but they may also pose significant long-term health issues long after the fire has been extinguished; and,
4. It is the Legislature's intent to set forth standards and protocols to ensure the health and safety of residents and for the proper handling of smoke-damaged residential property insurance claims caused by wildfires, after consideration of the recommendation in the Smoke Claims and Remediation Task Force Report (Task Force Report).
5. Under state Health and Safety Code (HSC):
6. Requires CalEPA, on or before June 30, 2027 and in coordination with other state agencies and local public health departments, as necessary, to develop health-based standards for required sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration, similar in scope to the "Residential soil evaluation: Guidance for the 2025 Los Angeles Wildfires" document developed by the Department of Toxic Substances Control (DTSC) and Department of Resources, Recycling and Recovery (CalRecycle); requires the standards to include required parameters and thresholds for preremediation testing, postremediation testing, and clearance of a residential property for habitation after remediation is completed; and, requires CalEPA to consult with agencies that include, but are not limited to, DTSC, the Office of Environmental Health Hazard Assessment (OEHHA), California Air Resources Board (CARB), California Department of Public Health (CDPH), and air pollution control districts, as necessary.
7. Provides that CalEPA's requirements (described in bullet 2(a) above) shall consider differences, where appropriate, based on the distance of a residential structure from the fire perimeter; requires the following default zones to be used:
8. High-impact zone;
9. Moderate-impact zone; and,
10. Low-impact zone.
11. Requires, if applicable, standards to be more stringent for the high-impact zone and less stringent for the moderate- and low-impact zones.
12. Authorizes CalEPA, the Department of Forestry and Fire Protection (CAL FIRE), or a city or county public health or safety agency to designate a smoke exposure zone for a specific wildfire.
13. Requires, if a smoke exposure zone is designated, the smoke exposure zone to supersede CalEPA's default high-, moderate-, and low-impact zones, and the requirements applicable to the high-impact zone to apply within the smoke exposure zone.
14. Provides that CalEPA's requirements (described in bullet 2(a) above) shall consider, where appropriate, whether certain wildfire smoke byproducts and associated hazardous substances dissipate with the passage of time.
15. Requires CalEPA and CAL FIRE to adopt regulations, as may be necessary to implement the above requirements, or make them more specific.
16. Authorizes CalEPA to impose, in addition to the requirements described in bullet 2(a) above, requirements pertaining to a specific wildfire, including requirements for the identification of additional WUI or urban conflagration contaminants, additional minimum sampling and testing recommendations or requirements, or additional chemical screening levels for residential properties that have sustained smoke damage; provides that these requirements, pertaining to a specific wildfire, shall be exempt from specified state laws that govern rulemaking.
17. Authorizes CalEPA, as an interim measure before the adoption of the regulations described in bullet 2(a), to impose sampling, testing, and chemical screening requirements pertaining to a specific wildfire that a person involved in the inspection, evaluation, testing, or remediation process shall comply with, including in an open, pending, or disputed insurance claim; provides that these interim measure requirements shall be exempt from specified state laws that govern rulemaking and become inoperative upon adoption of the regulations described in bullet 2(a).
18. Establishes the following definitions:
19. "Fire perimeter" means the footprint or entire outer boundary of a burned area as a result of a WUI fire or urban conflagration, as determined and mapped by CAL FIRE;
20. "High-impact zone" means the area within the fire perimeter and within six miles from the fire perimeter, or the area within a smoke exposure zone designated for a specific wildfire;
21. "Moderate-impact zone" means the area within six miles to 12 miles from the fire perimeter, or within six miles from a smoke exposure zone designated for a specific wildfire;
22. "Low-impact zone" means the area greater than 12 miles from the fire perimeter, or the area greater than six miles from a smoke exposure zone designated for a specific wildfire;
23. "Person" means an individual, insurance company, association, organization, partnership, business trust, limited liability company, or corporation;
24. "Restoration of the property to preloss condition" means the removal of smoke damage residues, combustion byproducts, chemicals, contaminants, and odor caused by wildfire smoke exposure through remediation of the property, including structural elements, building systems, contents, and indoor environment, to the same condition that existed before exposure;
25. "Smoke damage" means exposure of residential property or its contents to wildfire smoke, combustion byproducts, and the chemicals and contaminants contained within the wildfire smoke;
26. "Smoke exposure zone" means the area exposed to significant settled, fine particulate residue, including soot, char, and ash, carried by a smoke plume and winds after a WUI fire or urban conflagration, as designated by CalEPA, CAL FIRE, or a city or county public health or safety agency;
27. "Urban conflagration" means a massive, uncontrollable fire, regardless of cause, that spreads rapidly from building to building through densely populated, developed areas, typically overwhelming fire suppression resources, and that has been designated and declared in a state of emergency, as specified; specifies that these fires are typically fueled by high winds, structural density, and flammable materials, often transitioning from WUI fires into surrounding communities;
28. "Wildfire" means a WUI fire, or an urban conflagration, that has been designated and declared a state of emergency, as specified; and,
29. "Wildland-urban interface fire" means a fire, regardless of cause, in the zone of transition between unoccupied land and human development, including the area or zone where structures and other human development meet or intermingle with undeveloped wildland or vegetative fuels, creating significant fire risk to developed areas and a significant number of structures, that has been designated and declared a state of emergency, as specified.
30. Requires CalEPA, by January 1, 2028, to consult with CDI, CDPH, the Department of Industrial Relations, Contractors State License Board, State Water Resources Control Board (State Water Board), and any other state or local government agency, as may be necessary, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, or restores residential properties that have sustained smoke damage as a result of a WUI fire or urban conflagration, including industrial hygienists, restoration professionals, and laboratories; requires the requirements to be tailored to each category of persons, depending on their role with regard to wildfire smoke damage.
31. Requires CalEPA to promulgate regulations, if necessary, to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which entity or entities will have jurisdiction over the different categories of persons subject to the requirements; requires these regulations to establish certification fees; provides that these fees shall be established at levels that do not exceed an amount sufficient to cover administration and enforcement costs; and requires fees to be deposited into the Wildfire Remediation Certification and Training Fund, established to support the above activities.
32. Under state Insurance Code:
33. Prohibits an insurer from terminating coverage for additional living expenses for a covered smoke damage claim submitted under a policy of residential property insurance, as a result of a WUI fire or urban conflagration that is declared a state of emergency, as specified, until the property has been cleared for habitation pursuant to the CalEPA guidance described in bullet 2(a) above.
34. Provides that, in addition to the CalEPA guidance described in bullet 2(a) above, if a local or state public health department, environmental agency, or any other government agency with jurisdiction over the area where a wildfire has occurred issues a public notice, bulletin, or advisory that provides explicit guidance pertaining to a specific wildfire—including identifying specific WUI or urban conflagration contaminants, minimum sampling and testing recommendations, and chemical screening levels for residential properties that have sustained smoke damage—then that guidance shall also apply to claims under residential property insurance, as specified, using the same tiered sampling and testing recommendations for each zone developed by CalEPA.
35. Provides that, until CalEPA develops the guidance described in bullet (2)(a) above, if a local or state public health department, environmental agency, or any other government agency with jurisdiction over the area where a wildfire has occurred issues a public notice, bulletin, advisory, or guidance that describes specific standards for sampling, testing, and chemical screening levels for residential smoke damage and restoration pertaining to a specific wildfire, then those standards shall apply to a person involved in the inspection, evaluation, testing, and restoration process, including in open, pending, or disputed insurance claims for that specific wildfire.
36. Requires an insurer to be responsible for covering the cost of the sampling and testing required pursuant to AB 1795, as specified, subject to the terms and provisions of the policy, specified conditions and limitations, and all of the following rebuttable presumptions:
37. For residential properties in the high-impact zone: a rebuttable presumption that there is significant smoke damage exposure from the wildfire; requires the smoke damage claim to be classified as high impact for purposes of the type of inspection, evaluation, and testing it receives;
38. For residential properties in the moderate-impact zone: a rebuttable presumption that the property shall initially be classified as moderate impact for purposes of the type of inspection, evaluation, and testing, if applicable, it receives; and,
39. For residential properties in the low-impact zone: a rebuttable presumption that the property shall initially be classified as low impact for purposes of the type of inspection, if any, and evaluation it receives.
40. Provides that AB 1795 does not preclude an insurer from covering sampling and testing that exceeds AB 1795's requirements.
41. Requires that all of a specified list of conditions apply to covered smoke damage claims resulting from a WUI fire or urban conflagration that is declared a state of emergency, including that, if a smoke damage insurance claim is settled on the basis of a written scope or estimate prepared by or for the insurer, the insurer shall supply the claimant with a copy of each document upon which the settlement is based; requires the estimate to be for an amount that will restore the damaged property to no less than its condition before the loss and allow for restoration to be completed in a manner that meets or exceeds the CalEPA guidance described in bullet (2)(a) and accepted trade and industry standards for the specific work being performed.
42. Requires that a specified list of conditions and limitations apply to covered smoke damage claims resulting from a WUI fire or urban conflagration that is declared a state of emergency, including the following:
    1. Notice of the claim shall be provided to the insurer within 120 days after the wildfire has reached 100% containment, as determined by CAL FIRE; an insurer shall provide an insured, or insured's representative, additional extensions of this time period for good cause if the insured, acting in good faith and with reasonable diligence, encounters a delay in providing notice of the claim that is beyond the control of the insured; provides that circumstances beyond the control of the insured may include either of the following, if applicable to the specific claim: the death, disability, injury, or incapacity of the insured; or, the inability of the insured to access the insured property as a result of governmental action or because the property is located in an area that is exposed to hazardous materials posing a health risk; and,
    2. If notice of the claim is given to an insurer later than the time period specified above, then the claim may be subject to a sublimit of no less than 10% of the policy limits, as specified.
43. Provides that specified provisions in AB 1795, including those described in bullets (3)(b) through (3)(g) above, apply to all policies of residential property insurance issued, amended, or renewed on or after AB 1795's operative date.
44. Requires CDI, by January 1, 2028, to develop training and certification programs, as specified, for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a WUI fire or urban conflagration in residential properties on behalf of insurers, and to implement and enforce these programs, as specified.
45. Authorizes CDI to adopt regulations as necessary to implement specified provisions under AB 1795.

EXISTING LAW:

1. Establishes the Hazardous Waste Control Law (HWCL) to authorize DTSC to regulate the management of hazardous wastes in California. (HSC § 25100, et seq.)
2. Defines "hazardous waste" as waste, that, because of its quantity, concentration, or physical, chemical, or infectious characteristics:
3. Causes, or significantly contributes to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness; or,
4. Poses a substantial present or potential hazard to human health or the environment, due to factors including, but not limited to, carcinogenicity, acute toxicity, chronic toxicity, bio accumulative properties, or persistence in the environment, when improperly treated, stored, transported, disposed of, or otherwise managed. (HSC § 25141(b))
5. Requires DTSC, under the HWCL, to adopt, and revise when appropriate, standards and regulations for the management of hazardous wastes to protect against hazards to public health, domestic livestock, wildlife, or the environment. (HSC § 25150)
6. Establishes DTSC's Toxicity Criteria for Human Health Risk Assessments, Screening Levels, and Remediation Goals (Toxicity Criteria Rule) for hazardous waste and hazardous substance cleanup sites; requires, among other things, that human health risk assessment calculations—including, but not limited to, all cancer risk and non-cancer hazard screening levels and corrective action objectives—use the toxicity criteria specified under the Toxicity Criteria Rule and attain human health protection, as specified. (22 California Code of Regulations (CCR) § 68400.5).
7. Specifies, under the Toxicity Criteria Rule, criteria for all human health risk assessments, human health risk-based screening levels, and human health risk-based remediation goals statewide, for the cleanup of releases of hazardous waste or hazardous substances to the environment. (22 CCR § 69020-69022)
8. Defines, under DTSC's health standards for the management of hazardous waste, "remediation goal" to mean a contaminant concentration that is media-specific (e.g., for air, groundwater, surface water, or soil affected by a release), site-specific, protective of human health and the environment, and used as a final cleanup goal for a response or corrective action. (22 CCR § 69020(c)(5))
9. Defines, under DTSC's health standards for the management of hazardous waste, "screening level" to mean a risk-based, contaminant concentration, calculated as specified and considered to be protective for humans (including sensitive groups) over a lifetime. (22 CCR § 69020(c)(6))
10. Requires DTSC to develop sampling and analytical methods for the collection of methamphetamine residue; requires DTSC, to the extent funding is available, to develop health-based target remediation standards for iodine, methyl iodide, and phosphine; authorizes DTSC, to the extent funding is available and using guidance developed by OEHHA, to develop additional health-based target remediation standards for additional precursors and byproducts of methamphetamine; requires DTSC to adopt investigation and cleanup procedures for use in the remediation of sites contaminated by the illegal manufacturing of methamphetamine; requires the procedures to ensure that contamination can be remediated to meet DTSC's remediation standards, to protect the health and safety of all future occupants of the site. (HSC § 79380)
11. Establishes the federal Toxic Substances Control Act (TSCA), which, among other things, empowers the United States Environmental Protection Agency (US EPA) with the authority to require reporting, record-keeping, and testing requirements, and restrictions relating to chemical substances and mixtures. (15 U.S.C. § 2601, et seq.)
12. Establishes, under TSCA, dust-lead hazard standards, post-abatement clearance levels, and abatement requirements for lead-based paint in certain residential structures. (40 Code of Federal Regulations (CFR) § 745.61, et seq.)

FISCAL EFFECT: Unknown.

COMMENTS:

Need for the bill: According to the author:

"AB 1795 creates a consistent statewide framework for handling wildfire smoke damage insurance claims which would be the first in the nation. This bill would require that homes contaminated after a wildfire are properly evaluated and restored to a safe and habitable condition—and hold insurance companies accountable when standards are not met. Right now, the absence of statewide standards has created confusion, unfair claims handling, and uncertainty for families already coping with unimaginable losses. Consumer protection is my number one priority, and establishing clear rules will ensure that homeowners are protected and survivors can safely move back into their restored homes knowing they do not face life-long health risks. After a wildfire, recovery should not depend on a homeowner’s ability to navigate complex insurance disputes while their life is already turned upside down. More than a year after the most devastating fires Los Angeles has ever seen, there is no reason to delay. I am dedicated to swift passage of AB 1795, the Smoke Damage Recovery Act, to pave the way for a better process that insurance policyholders can rely upon."

Wildfires are increasing in frequency and severity: According to CARB, the frequency and severity of wildfires have been increasing, both in the state and all over the world. Since 1950, the area burned annually by California wildfires has grown, as spring and summer temperatures increase and spring snowmelt occurs earlier.  CAL FIRE data show that four out of the five most destructive wildfires in California history happened in just the last 10 years. In 2025, the Eaton and Palisades fires in Los Angeles County destroyed over 16,000 structures and burned 38,000 acres combined; in 2018, the Camp Fire in Butte County destroyed nearly 19,000 structures and burned 153,000 acres; and in 2017, the Tubbs Fire in Napa and Sonoma counties destroyed more than 5,500 structures and burned nearly 37,000 acres.

WUI fire implications for communities: The Eaton, Palisades, Camp, and Tubbs fires, as well as major wildfires in other states, including the 2023 Lahaina fire in Hawaii and 2021 Marshall Fire in Colorado, are all examples of WUI fires. According to the United States (U.S.) Fire Administration, the WUI is the "zone of transition between unoccupied land and human development…the line, area or zone where structures and other human development meet or intermingle with undeveloped wildland or vegetative fuels."

Although the area burned in the WUI comprises a relatively small percentage of the overall burn area caused by wildfires, the majority of damage to human structures, including homes, businesses, and schools, occurs in the WUI, as summarized by the U.S. Department of Agriculture and Forest Service on its webpage, "Interface areas are critical to wildfire losses: Half of all buildings lost in these WUI areas with relatively low fuels":

"In California and the entire United States, wildfire management has become more complex, costly and dangerous. Research by a Northern Research Station scientist and her partners found that wildfire losses in California are most common in interface areas, which lack dense wildland fuels. Interface WUI, i.e. settled areas with little wildland vegetation that are near large blocks of wildland vegetation, contained over 50% of all buildings lost to wildfire while making up only 2% of all wildfire perimeters by area (fires from 1985-2013)."

According to the U.S. Fire Administration, more than 60,000 communities across the U.S. are at risk for WUI fires; between 2002 and 2016, an average of over 3,000 structures per year were lost to WUI fires; and the WUI area continues to grow by about 2 million acres per year. California—where between 30% and 45% of houses are in the WUI—is among the top five states with the most homes in WUI areas.

Urban conflagrations pose unique human health risks: When fires in the WUI burn into densely populated areas, wildfires can transition into urban conflagrations, in which fires spread rapidly from structure-to-structure. In the wake of these fires, both the interiors and exteriors of structures can become polluted by smoke residue, ash, and debris, which in turn can contain toxic chemicals. The 2025 article, "In the ashes," published in the journal Science, describes the unique health concerns posed by these types of fires, using the Eaton fire as an example:

"The blaze that consumed parts of Altadena started as a brush fire on a hillside near Eaton Canyon. At first, the smoke would have been a predictable mixture of hundreds of chemicals that are known to emanate from plant-fueled fires, including microscopic particles, toxic gases, and nitrogen-based molecules such as ammonia.

But within hours, the nature of the fire—and the smoke—changed dramatically. Winds gusting at more than 100 kilometers per hour showered nearby homes with embers, igniting blazes that overwhelmed firefighters. As entire blocks burned through the night, the billowing smoke became more complex and mysterious—filled with a range of toxic compounds from the burning of lead-based paint, lithium batteries, vinyl siding, fiberglass insulation, electrical wiring, nylon clothes, rubber tires, and more…

Fires have been blamed for a long list of health ills. Wildland fire smoke has been linked to increased hospital admissions for asthma, strokes, and heart attacks. House fires have been associated with higher levels of cancer in firefighters.

But new hazards arise when those two things meet and a wildfire consumes an entire neighborhood. The high intensity of wildfire can alter the chemicals swirling in the air after they are emitted from burning houses. The number of people affected when wildfire sweeps into urban areas also dwarfs the number exposed during a typical house fire. More than 18 million people live in the greater LA metropolitan area, and a huge swath of them were bathed in hazardous levels of air pollution in January. Tests at the California Institute of Technology, for instance, 4 kilometers from Altadena, found elevated levels of lead in ash that seeped into campus buildings."

Emerging science reveals indoor and outdoor chemical hazards after WUI fires: In its 2022 report, "The chemistry of fires at the wildland-urban interface," the National Academies of Sciences, Engineering, and Medicine note the significant human health threats posed by WUI fire chemical hazards, as well as some of the challenges associated with investigating these hazards after fire events:

"Health risks associated with toxicants from WUI fires can persist well beyond the active burning of the fire, due to contamination of the ecosystem (water and soil) and built environments. Health impacts can also extend well beyond the WUI communities, as smoke can be transported for hundreds to thousands of kilometers. While toxicants from WUI fires are a recognized problem, their variability and complexity present significant challenges. For example, the emissions from a WUI fire can vary depending on whether the fire burns homes, cars, or commercial areas; even a subset of these fuel types can vary, such as homes of different ages made of different materials. Emissions vary depending on fuel composition, fire characteristics, and the heating dynamics that the fuels experience. Human exposure can vary greatly, depending on weather patterns during and after the fire, personal activities, and the living and working circumstances of the people exposed."

Despite the challenges, emerging science points to the presence of toxic chemicals after WUI fire events. In the wake of the Eaton and Palisades fires, researchers from multiple research institutions—including Harvard University; the University of Southern California; Stanford University; the University of California (UC), Davis; UC, Irvine; UC, Los Angeles; the University of Texas at Austin; and Yale University—launched a collective scientific effort to investigate the short- and long-term health impacts of the fires. The 10-year study, called the LA Fire Health Study, aims to evaluate the types, levels, locations, and human health impacts of pollutants associated with the fires. So far, the collaborative has reported, through a series of briefs, the discovery of several types of concerning chemicals inside and outside of structures, including VOCs in indoor and outdoor air; chromium-6 in outdoor air; and benzene and other VOCs in tap water.

A 2024 study by Jech, et al., published in Environmental Science and Technology, reports that residential properties affected by the Marshall Fire had elevated concentrations of heavy metals in soil, including zinc, copper, chromium, and lead, though the levels were below soil standards established by the US EPA for sites contaminated by hazardous waste. Another study by Allen et al., published in 2025 in The Journal of Exposure Science and Environmental Epidemiology, summarizes research showing that there was a 110-fold increase in atmospheric lead levels (documented through initial air monitoring after the fires), and elevated lead levels in soil in areas downwind of the Eaton Fire. Allen et al. conclude that this lead "poses a long-term risk of exposure, particularly for biologically sensitive populations like children, through contact with contaminated soil or inhalation of lead dust."

In December 2025, the New York Times (NYT) article "How did this family end up back in a toxic house?" reported findings from an investigation, in which the NYT asked a family impacted by the Eaton Fire for permission to have a certified professional test for lead and other heavy metals in each room of their house, and to submit strands of hair so scientists could measure the family's exposure to metals over time. The family's home had already undergone cleaning recommended by their insurance company, which included ripping out their attic insulation; vacuuming and mopping their floors; wiping countertops and other surfaces; laundering carpets and drapes; and using air scrubbers in every room. The readings, taken a month after the family had moved back into their home, showed that six out of 11 samples collected in the house had "unsafe levels of contaminants, including extremely high levels of lead." The NYT also found that readings for lead on the floor next to the refrigerator and where the kitchen tile met the dining room floor were 27 times and seven times, respectively, the federal hazard limit for lead established under the US EPA's lead-based paint program. In addition, the investigation found a lead level near 8,000 µg/ft² in a sample taken from the HVAC in the attic. For context, the US EPA's action levels—the level at which the US EPA recommends abatement under its lead-based paint program—for lead in dust on floors, window sills, and window troughs are 5 µg/ft², 40 µg/ft², and 100 µg/ft², respectively. Hair samples from the family showed "measurable spikes in heavy metals after [the family] returned to the home in August, indicating a period of elevated exposure."

The need for uniform, health-protective standards: For homes that have burned, CalRecycle and DTSC, along with federal partners, implement a phased approach to clearing properties. Typically, Phase 1 involves the removal of visible household hazardous waste (e.g., batteries, pesticides, paints, building materials that contain asbestos, and e-waste) and Phase 2 includes soil testing and the removal of contaminated debris, ash, and soil. In the case of the Los Angeles fires, the Federal Emergency Management Agency assigned Phase 2 to the U.S. Army Corps of Engineers. California formally requested, but the federal government denied, confirmation soil sampling as part of the debris removal process.

For homes that remain standing, but have been impacted by WUI fire smoke and debris, there are no uniform state or federal standards pertaining to investigation, testing, and remediation for indoor chemical hazards. Residents returning to their homes have reported feeling concerned about whether it is safe to do so, as illustrated in the NYT article described above:

"Every day, he vacuums, mops and wipes every surface in his house, which stands on one of the blocks in Altadena, Calif., that survived the flames of the Los Angeles wildfires, but not the smoke.

He works in deliberate lines across the kitchen tile, then along the baseboards, then into the corners where the smoke pooled nearly a year ago—following a map only he can see.

It’s the only way to quiet his thoughts: Is it safe for his children, 6-year-old Sylvia and 9-year-old Milo, to walk barefoot on the kitchen tiles? Should he wash the toys they drop on the floor with bleach, or with soap and water? The darkest thoughts are about his wife, Cathlene Pineda, 41, a jazz pianist who is on medication for cancer. If the toxins were in the house, he wonders, could they bring the cancer back?"

In the absence of state and federal health-based standards, various entities have developed professional standards and certifications to guide the work of remediation and testing by contractors and hygienists, as well as recommendations for residents. In August 2025, DTSC and CalRecycle released their "Residential soil guidance for the 2025 Los Angeles wildfires," which contains screening levels for various soil contaminants (screening levels are used to help determine if the amount of chemicals in a sample indicates a health risk), step-by-step instructions for survivors and local authorities for soil sampling based on property damage levels, information on how to interpret results, and an overview of professional remediation methods. The state has not released similar guidance for indoor contaminants.

The Smoke Claims and Remediation Task Force: In May 2025, out of recognition that California needs consistent statewide standards for investigating and paying smoke damage claims, CDI established the Smoke Claims and Remediation Task Force (Task Force). The Task Force was charged with:

• Evaluating existing methods of best practices and recommending uniform standards for inspecting, testing, and remediating properties with smoke damage;
• Recommending standards for determining whether structures damaged are below, at, or above, established levels for health and safety of occupants; and,
• Determining which state and local government agencies must be involved in creating and enforcing these standards, including to mitigate the submission of fraudulent or exaggerated smoke claims.

In July 2025, CDI announced appointments to the Task Force. The Task Force was comprised of representatives from CDI, CDPH, the Los Angeles County Department of Public Health, CAL FIRE, United Policyholders, the Consumer Federation of California Education Foundation; Safeguard EnviroGroup, Inc.; Anderson Group International; HRA Environmental Consultants, Inc.; Forensic Analytical Consulting Services; Personal Insurance Federation of California; and the American Property Casualty Insurance Association.

On March 9, 2026, CDI released the Task Force's findings in a report. The report documents presentations the Task Force heard, materials the Task Force reviewed, and Task Force discussions, including differing perspectives on how smoke damage and contaminants should be addressed in the wake of WUI fires and urban conflagrations. The Task Force heard from numerous stakeholders, including impacted homeowners and survivor groups, consumer advocates, academics, industrial hygienists, restoration specialists, local and state public health experts, insurance industry representatives, an attorney on behalf of policyholders, and an attorney on behalf of the insurance industry.

According to the report, the topic that elicited the most discussion involved a "tiered classification" concept, which posited that "the degree of smoke damage to an impacted home varies by the density of smoke in the area, direction of the wind, proximity of the home to the wildfire burn zone, duration of the fire, characteristics of the home, and other factors." With this concept in mind, the Task Force discussed a potential framework comprised of an "objective standard," based on the distance of homes from the fire perimeter, and a "wildfire-specific standard," based on designation of an "ash zone," defined as the area covered by settled, fine particulate residue, including soot, char, and ash carried by a smoke plume and winds.

This concept serves as the basis for the framework established in AB 1795, in which homes are designated as being in a particular impact zone (high, moderate, or low) based on pre-determined distances (specified in AB 1795) from the fire perimeter; or designated as being inside or outside of a smoke exposure zone (defined as an area exposed to soot, char, and ash carried by a smoke plume and winds), which may be established after a wildfire event by CalEPA, CAL FIRE, or a city or county public health or safety agency. According to CDI, the aim of this tiered framework is to ensure that there are "default" standards available for immediate implementation in the wake of a WUI fire or urban conflagration (achieved through the impact zone approach), while allowing for flexibility via an alternative approach (the designation of a smoke exposure zone) in cases where major wind events disperse contaminants in ways that cannot be captured by the default impact zones.

While there was consensus among some Task Force members that this approach held potential, some raised questions and concerns. According to the Task Force Report, CDPH asserted that "the proposed mileage cutoffs for defining high, moderate, and low impact zones [were] somewhat arbitrary and [lacked] justification and that although they [appeared] to be based on the distance cutoffs used in the [American Industrial Hygiene Association] Technical Guide, those were intended only as examples to describe the conceptual model and that the use of 1 km, 10 km, and 100 km zones was not meant to imply any actual relevance to real situations."

Policy considerations: As AB 1795 moves forward, the author may wish to consider the following policy questions:

1. What happens if no one designates a smoke exposure zone, even in high wind events that could blow smoke debris and contaminants beyond high-impact zone boundaries? As noted above, AB 1795 uses a two-tiered framework for the application of contaminant sampling, testing, and screening standards and determination of insurance coverage requirements. The impact zones—divided into a high-impact zone (the area within the fire perimeter and within 6 miles of the perimeter), moderate-impact zone (the area that is 6-12 miles from the fire perimeter), and low-impact zone (the area beyond 12 miles of the perimeter)—would function as the "default" approach, with the strongest standards applying to homes in the high-impact zone and lesser standards applying to homes in the moderate- and low-impact zones. However, out of recognition that contaminant dispersal may not always fit cleanly into this default model, especially when a smoke plume is driven by strong winds, AB 1795 provides an alternative option: designation of a geographic region as a "smoke exposure zone." The same standards established for a "high-impact zone" would apply to this smoke exposure zone.

The adaptability of this approach makes sense, given that wildfires are dynamic events and no two fires are exactly alike. However, AB 1795 does not specify the conditions under which a smoke exposure zone would need to be created, and no entity is required to establish a smoke exposure zone, though any of several agencies identified in the bill (CalEPA, CAL FIRE, or a city or county public health or safety agency) could choose to do so. This design allows for the possibility that no agency would designate a smoke exposure zone, even for a fire in which strong winds blow significant WUI debris and smoke beyond 6 miles of the fire perimeter. In this situation, homes that may be heavily impacted, but are beyond the boundaries of the default high-impact zone (i.e., more than 6 miles from the fire perimeter), would not benefit from application of CalEPA's strictest standards. Notably, as shown above, satellite imagery shows that for at least part of the time that the 2025 Eaton Fire was burning, the smoke plume blew from the fire perimeter out to the Pacific coast (near Rancho Palos Verdes), covering a straight-line distance that exceeded 30 miles from the fire.

1. Is 120 days enough time for people to file a claim, given the time it might take for residents to regain access to their homes and for government agencies to complete toxic debris removal for nearby destroyed homes? AB 1795 specifies a list of conditions and limitations that apply to covered smoke damage claims, including that insured individuals must provide notice of their claim within 120 days after a wildfire has reached 100% containment; otherwise, they risk having their claim subjected to a "sublimit of no less than 10% of the policy limits." This timeframe might not fully account for the time it may take for residents to be able to return to their properties in the aftermath of a fire, or the time it may take a resident to determine that their home might be contaminated. In addition, active Phase I and Phase II efforts to clear highly toxic debris—including household hazardous waste and contaminant-laden ash—from neighboring properties can take months, and in the process remobilize contaminants within the immediate area. In the case of the Eaton and Palisades fires, the U.S. Army Corps of Engineers did not clear its final property until late August 2025, nearly seven months after the fires were fully contained.
2. What if CalEPA's standards and industry standards differ? AB 1795 requires an insurance estimate to "be for an amount that will restore the damaged property to no less than its condition before the loss and allow for restoration to be completed in a manner that exceeds [CalEPA's standards] and accepted trade and industry standards…" As noted below, stakeholders from impacted communities have raised concerns that CalEPA's health-based standards may not prevail, in situations where CalEPA's standards and "accepted trade and industry standards" do not align.

Author's amendment: Due to the pressing nature and human health implications of wildfire contamination issues, the author wishes to amend AB 1795 to add an urgency clause.

This bill: As noted above, there are no pre-existing, wildfire-specific state or federal standards for indoor contaminants, and the science underlying these contaminants and their health implications is complex and emerging. Despite these challenges, there is a critical need for health-based standards and an associated regulatory framework to protect the health and safety of California's residents and communities, in an era of increasingly severe and more frequent wildfires. Two bills this year—AB 1795 and AB 1642 (Harabedian, heard previously in the Environmental Safety & Toxic Materials Committee and now pending before the Assembly Appropriations Committee)—have taken up the challenge of tackling this issue and advancing critical conversations about how to approach it. This is no small task given that this is, in many ways, uncharted territory.

AB 1795 requires CalEPA to develop health-based standards for sampling, testing, and chemical screening levels for homes that have sustained smoke damage as a result of a WUI fire or urban conflagration, and establishes a framework for the application and implementation of these standards. Given the urgency and complexity of this problem, ongoing stakeholder engagement will be essential as efforts to "build this plane" move forward.

Arguments in support: According to Ricardo Lara, Insurance Commissioner at CDI:

"California has experienced record-breaking wildfires, including the January 2025 Eaton and Palisades Fires, which destroyed thousands of homes and left many more contaminated by smoke, soot, ash, char, and other hazardous substances. Thousands of smoke-damage insurance claims have since been filed. Because no authoritative, enforceable standards exist for testing or remediating smoke damage, survivors report inconsistent claims handling, partial or total denials, and refusals by insurers to pay for pre- or post-remediation testing. CDI has taken executive actions—including consumer bulletins, enforcement actions, and investigations—but the absence of standards has resulted in a patchwork of insurer practices. In response to the January 2025 fires, I convened a Smoke Claims and Remediation Task Force to develop recommendations for statewide standards and insurance coverage expectations.

Residential property insurance policies that cover the peril of fire also cover smoke damage caused by fire, and insurers are required to cover restoration of properties to pre-loss condition. However, California has no statewide standards governing the inspection or testing of smoke-damaged homes, no minimum sampling or clearance protocols, no mandated remediation methods, and no training or certification requirements for professionals who assess or remediate smoke damage…The absence of enforceable standards has resulted in inconsistent insurer practices, including denials of testing, partial claim denials, and refusals to reimburse for pre- or post-remediation testing. Homeowners and tenants face uncertainty about whether their homes are safe to reenter, and many have been forced to pay for testing or remediation out of pocket. Without statewide standards, neither insurers nor regulators have a clear framework to ensure that smoke-damaged homes are restored to safe, habitable, pre-loss condition, and the resulting instability contributes to rising costs in the residential property insurance market.

AB 1795 would create a comprehensive statewide framework for residential property insurance policies to ensure consistent, science-based handling of smoke-damage claims. It will establish minimum protocols for inspection, sampling, and testing of smoke-related contaminants and sets clear thresholds for determining whether a property is safe. This bill will mandate insurer compliance with remediation protocols and clarify their obligation to cover the cost of restoring properties to a pre-loss condition. Finally, AB 1795 also identifies the state agencies responsible for implementing and enforcing the standards and creates penalties for noncompliance."

Arguments in opposition: Writing in an opposed-unless-amended position, a coalition that includes several community-based organizations describes several concerns, including the following:

"The testing provisions in Section 25405 [of AB 1795] are a step in the right direction. But several provisions will undermine the bill's own goals. This letter addresses the health and safety concerns within this committee's jurisdiction…

Issue 1—No Causation Presumption

When contamination is found in a standing home, it has to be linked to the fire to matter. That is not simple. Insurers routinely claim contamination is pre-existing. Homeowners are left trying to prove causation substance by substance while still living in the home.

AB 1642 (Harabedian) addresses this with a rebuttable presumption: if WUI debris is present and contamination is detected, a rebuttable presumption assumes that the fire caused it. The burden then shifts to the insurer to prove otherwise. AB 1795 has no such presumption. Without it, the testing standards this bill creates will be much harder to act on…

Issue 2—The Testing Standard Is Built on Visual Inspection, Not Science

Section 2060.2(g) ties restoration to 'accepted trade and industry standards.' In practice, that means the Institute of Inspection, Cleaning and Restoration Certification (IICRC) guide. The IICRC guide starts with a visual and odor inspection to decide whether chemical testing is even needed at all. A home that looks and smells clean may never be tested for lead, asbestos, or heavy metals.

The IICRC acknowledged in its March 6 letter to the Legislature that it is only now convening a group of experts to evaluate wildfire-specific updates to its standard. The bill would codify a standard its own authors say is not yet ready. That is not a science-based approach…

Issue 3—Pre- and Post-Remediation Testing Is Not Mandatory

The bill says insurers pay for testing 'required pursuant to CalEPA guidance.' But under the IICRC protocols the bill references, chemical testing can be skipped entirely if a visual inspection does not flag a high risk. A file can be closed without a single lab result.

Pre-remediation testing identifies what WUI fire contaminants are present and where. Post-remediation clearance testing confirms they have actually been removed. Both must be required, with no exceptions. This is the single most concrete protection this bill can provide. Even if every other provision were stripped, mandatory testing would change every smoke damage claim in California…

Issue 4—The Zone Framework Is Built on the Wrong Fire

The IICRC guide uses the 2011 Bastrop County fire as its baseline for contamination zones. Bastrop had 0.05 homes per acre. The Eaton Fire had 0.67 homes per acre. That is more than 13 times denser.

In Bastrop, the fire consumed forested land. In Altadena, it consumed thousands of homes filled with lead paint, asbestos, treated lumber, plastics, and electronics. Contamination from urban WUI fires does not dissipate the way rural fire data suggests. In high-density neighborhoods, the near-field zone of one destroyed home overlaps with the standing home next door. Structural ash containing lead and asbestos infiltrates HVAC systems of neighboring homes. Bastrop-based zones do not account for this…

Issue 5—The 120-Day Deadline Prevents Proper Scientific Assessment

Section 2060.2(h) gives homeowners 120 days from fire containment to file a claim or lose 90% of their coverage. The Eaton Fire reached containment January 31, 2025. Debris removal was not completed until August 14, 2025. That is 195 days. Many standing homes adjacent to total-loss properties could not be accessed or professionally tested until debris removal was complete.

The deadline runs out before families can get into their homes to assess contamination. Many contaminants are invisible. They require professional testing to detect. A 120-day window that runs from containment, not from discovery, penalizes homeowners for following the science. For January 2025 fire claimants, this deadline has already passed…

Issue 6—AB 1795 Should Align with AB 1642 on Definitions and Scope

AB 1642 (Harabedian) includes definitions and provisions that AB 1795 should adopt. Specifically: the definitions of clearance, contamination, and hazardous chemicals in AB 1642 Part 3 Section 13980, and the minimum science-informed health-based standards for testing and screening levels in Sections 13982 and 13983.

AB 1642 also ensures these standards apply to schools, workplaces, and other structures, not just residential homes. The January 2025 fires contaminated all of these. AB 1795 should not create a narrower framework that leaves those structures out…

Issue 7—Protections Should Not Depend on an Emergency Declaration

AB 1795's definitions of wildfire, wildland-urban interface fire, and urban conflagration each require a declared state of emergency under Government Code Section 8558. A WUI fire that contaminates standing homes does not become less hazardous because a declaration was not issued.

Tying health and safety protections to a political threshold leaves families unprotected in any future WUI fire that falls short of the emergency declaration, regardless of what the contamination data shows."

Writing in opposition, a coalition of groups comprised of the American Property Casualty Insurance Association, the National Association of Mutual Insurance Companies, Pacific Association of Domestic Insurance Companies, and the Personal Insurance Federation of California describes several concerns, including the following:

"AB 1795 introduces a comprehensive new framework governing wildfire smoke testing, remediation, and insurance claims handling. While intended to improve consistency and consumer outcomes, several provisions raise significant concerns for insurers related to contract certainty, retroactive application, operational feasibility, and cost escalation…

Undefined standards for 'clearance for habitation': The bill repeatedly conditions insurer obligations—particularly Adjusted Living Expenses (ALE)—on a property being 'cleared for habitation,' but does not define clearance thresholds. This creates uncertainty about when coverage obligations end and invites dispute. Absent a defined endpoint, insurers, homeowners, and regulators are left without a clear standard for when coverage obligations conclude, increasing the likelihood of dispute and litigation.

Potential expansion beyond insured property: References to remediation frameworks analogous to 'residential soil evaluation' raise concern that standards could extend to soil, ambient air, or broader environmental conditions, which are typically outside property insurance coverage…

Exemption from the Administrative Procedures Act (APA): The APA is critical in ensuring that regulations are fair and conform with the duties, obligations, and authority that is granted to the regulating body. By exempting emergency action from the APA this bill curtails that legal protection. Agencies do not need to be exempted from the APA in order to act quickly in the face of an emergency. Authority exists through emergency regulation to ensure that the correct entity can act expeditiously where needed…

Fragmented regulatory authority: Claims obligations may be driven by standards issued by CalEPA, CDI, state public health agencies, local health departments, or other governmental entities, creating a patchwork of potentially inconsistent requirements which could be subject to political influence and fall outside assigned legal authority and jurisdiction. Allowing multiple state and local agencies to issue guidance that directly governs insurance claims handling risks inconsistent, overlapping, or conflicting requirements. This fragmentation creates uncertainty for homeowners and insurers and increases the likelihood of uneven enforcement…

Mandated testing and remediation obligations: Requirements that insurers pay for testing—potentially regardless of necessity or proportionality—risk increasing claim severity and loss adjustment expenses. Mandatory testing that is not tied to demonstrable property damage risks driving up claim severity and adjustment costs without improving outcomes for homeowners…

The fire zones described in the bill do not conform with the existing professional guidance by the American Industrial Hygiene Association (AIHA) and the Institute for Inspection, Cleaning, and Restoration Certification (IICRC). These zones have the potential of creating windfall payments to individuals well outside the impact area by establishing a high-impact zone 6 miles wide, whether upwind or downwind of the fire. These zones must be aligned with existing science and the presumptions must be adjusted to ensure that there is protection for those impacted, without enriching those who are not.

Recent public‑agency sampling and independent analyses further underscore the importance of proportional, targeted testing approaches. Large‑scale soil sampling conducted by Los Angeles County following the Eaton and Palisades fires identified lead as the primary contaminant of concern, while findings for many other chemicals commonly cited in policy discussions were localized, limited, or consistent with background conditions rather than widespread fire‑related impacts. Public health agencies emphasized that these results are intended for health‑protective screening purposes, do not mandate cleanup, and should not be used as clearance or habitability determinations. These findings caution against broad, default testing mandates for expansive contaminant panels absent property‑specific indicators, and support a more evidence‑based approach to post‑fire assessment.

Recent experience in other states further underscores the importance of careful scientific vetting before standards are codified. In Colorado, significant stakeholder concerns regarding the scientific assumptions and methodologies in a smoke remediation study draft report led the Division of Insurance to seek external review and ultimately withdraw the draft report. That experience highlights the legal and regulatory risks of advancing policy based on unsettled or misapplied science."

Double referral: Should AB 1795 be approved by the Assembly Environmental Safety & Toxic Materials Committee, it will be re-referred to the Assembly Insurance Committee.

Related legislation:

1. AB 1642 (Harabedian). Establishes the Wildfire Environmental Safety and Testing Act (Act), which, among other things, requires DTSC, by July 1, 2027, to adopt emergency regulations specifying science-informed, health-based standards to guide the adequate removal of lead and asbestos inside and outside of standing homes, schools, workplaces, and other structures after a WUI fire; requires, by July 1, 2028, DTSC to adopt non-emergency regulations specifying standards for additional contaminants; provides that the Act is an urgency statute. This bill is pending before the Assembly Appropriations Committee.
2. AB 1 (Connolly, Chapter 472, Statutes of 2025). Requires, by January 1, 2030 and every five years thereafter, CDI to consider whether to update the Safer from Wildfires regulations to include certain building hardening measures.
3. SB 1176 (Niello, 2024). Would have required CAL FIRE, the California Governor's Office of Emergency Services, and DTSC, in consultation with academic and research institutions with demonstrated relevant expertise, and any other governmental agency or educational institution that may have experience in public health and wildfires, to form a workgroup related to toxic heavy metal exposure after a wildfire. This bill was held on the suspense file in the Assembly Appropriations Committee.
4. AB 541 (Wood, Chapter 530, Statutes of 2023). Requires the State Water Board to require a public water system that has experienced a major wildfire event of 300 acres or more and under specified conditions to perform sample collection and analysis of its source waters for the presence of benzene as soon as it is safe to do so. Authorizes the State Water Board to require the public water system to take specified response actions if benzene is detected.

REGISTERED SUPPORT / OPPOSITION:

Support

Insurance Commissioner Ricardo Lara, California Department of Insurance (sponsor)

City of Los Alamitos

Opposition

After the Fire
Altadena Arts
Altadena Colab
Altagether

American Property Casualty Insurance Association
Biomax Environmental

California Community Foundation
Civic Sundays

Consumer Watchdog
Dena Rise Up
Eaton Fire Renters Coalition
Eaton Fire Residents United
Glendale Environmental Coalition
Hello Claire
Hollly Wyman Design
Indivisible Alta Pasadena
Joan Collaborative
L.A. Voice
LA Standing Homes
Long Beach Alliance for Clean Energy

National Association of Mutual Insurance Companies
McClain Consulting Services
My Tribe Rise

Pacific Association of Domestic Insurance Companies

Personal Insurance Federation of California

266 Individuals

Analysis Prepared by: Naomi Ondrasek / E.S. & T.M. / (916) 319-3965