Latest / Pod Save America / Breaking: Gavin Newsom On the LA Fires
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- 1:31Speaker 1: for sponsoring this episode. Welcome to Pod Save America. I'm
- 1:56Speaker 1: Jon Favreau. We are driving back from the Emergency Response
- 2:01Speaker 1: Command Center in Malibu, where I just sat down with
- 2:04Speaker 1: Governor Gavin Newsom to talk about the L.A.
- 2:07Speaker 2: Fires.
- 2:08Speaker 1: The governor's team reached out to us earlier this afternoon
- 2:12Speaker 1: on Friday and said that the governor wanted to answer
- 2:14Speaker 1: some questions and that he would have a couple of announcements.
- 2:17Speaker 1: He invited Donald Trump to come to California to witness
- 2:22Speaker 1: the devastation. and called him out in the invitation for
- 2:25Speaker 1: spreading disinformation from the sidelines. So we talked about that.
- 2:29Speaker 1: The governor also announced an investigation into the water shortage
- 2:35Speaker 1: that hampered the efforts to put out the fires in
- 2:38Speaker 1: the Palisades on Tuesday night. And so we talked about that.
- 2:42Speaker 1: We also talked about the recovery effort. We talked about
- 2:46Speaker 1: the rebuilding effort that's to come. And we talked about
- 2:49Speaker 1: people's frustrations and hopes who are dealing with the devastation
- 2:54Speaker 1: from these fires. Here's my interview with Gavin Newsom. Governor Newsom,
- 3:04Speaker 1: welcome back to Pod Save America.
- 3:05Speaker 2: Good to be with you under difficult circumstances.
- 3:08Speaker 1: Very. We are recording this Friday afternoon at the Command
- 3:11Speaker 1: Center in Malibu. Just before we started recording, you invited
- 3:15Speaker 1: Donald Trump to come here to Los Angeles, see the devastation. Uh,
- 3:20Speaker 1: you said the hundreds of thousands of Americans displaced from
- 3:22Speaker 1: their homes and fearful for the future deserve to see
- 3:25Speaker 1: us all working together in their best interests, not politicizing
- 3:28Speaker 1: a human tragedy and spreading disinformation from the sidelines. So
- 3:32Speaker 1: this is after Trump blamed you for the fires. He
- 3:36Speaker 1: says it's the fault of water mismanagement. Your initial response
- 3:39Speaker 1: to that was, I have a lot of thoughts and
- 3:41Speaker 1: I know what I want to say. I won't. Uh,
- 3:44Speaker 1: it seems like you're trying to walk a very fine
- 3:46Speaker 1: line here, extending, an open hand to Trump as you
- 3:50Speaker 1: signed your letter, but also calling him out for spreading disinformation.
- 3:55Speaker 1: Is that because you have concerns that he might withhold
- 3:59Speaker 1: disaster assistance when he becomes president?
- 4:01Speaker 2: He's been pretty straightforward about that. He's tried to do
- 4:03Speaker 2: it in the past. He's not just done it here
- 4:04Speaker 2: in California. He's done it in states all across the country.
- 4:08Speaker 2: I mean, he did it in Puerto Rico. He did
- 4:10Speaker 2: it even in Utah. He did it in Connecticut. In
- 4:14Speaker 2: other states, Georgia, he got upset and withheld emergency dollars.
- 4:17Speaker 2: In 2018, even before I was governor of California, he
- 4:20Speaker 2: tried to withhold money down in Orange County until apparently
- 4:23Speaker 2: a staff member, and this has been well reported, staff
- 4:25Speaker 2: member said there were a lot of Trump supporters, and
- 4:27Speaker 2: he decided to change his mind. And so the rhetoric
- 4:30Speaker 2: is very familiar, and it's increasingly acute, and obviously we
- 4:38Speaker 2: all have reason to be concerned about it.
- 4:41Speaker 1: What's the disinformation you were referring to in the letter,
- 4:44Speaker 1: and what is the correct information?
- 4:45Speaker 2: Well, I mean, look, what the president-elect was saying about
- 4:51Speaker 2: State Water Project and the Delta smelt somehow being culpable
- 4:58Speaker 2: of somehow leading to some of the challenges that we
- 5:03Speaker 2: face down here was– it's words. It's a salad of words.
- 5:09Speaker 2: It's a form and substance of fog. It's made up.
- 5:12Speaker 2: It's delusional. And it's a consistent mantra from Trump going
- 5:17Speaker 2: back years and years and years. And it's reinforced over
- 5:21Speaker 2: and over and over within the right wing. And so
- 5:24Speaker 2: it's become gospel. And it's so profoundly ignorant. And yet
- 5:28Speaker 2: he absolutely believes it. It's not an ignorance on his part.
- 5:32Speaker 2: It's sort of an indelible misinformation that he sort of
- 5:35Speaker 2: manifested a falsehood And he decided to bring it into
- 5:40Speaker 2: this crisis in a profoundly demeaning and damaging way. I
- 5:46Speaker 2: say demeaning to the facts, demeaning to the people that
- 5:50Speaker 2: were suffering and struggling, to the kids literally who were
- 5:53Speaker 2: watching their schools burn down. I was just talking to
- 5:57Speaker 2: a staff member, a good friend, whose house was burned down.
- 6:02Speaker 2: And his four-year-old as they're driving away, say, Daddy, do
- 6:05Speaker 2: you remember, did you get my bunny? And, you know,
- 6:08Speaker 2: I got four kids. No empathy, no compassion, no capacity
- 6:15Speaker 2: to even to understand. Just a guy wants to be understood. And, yeah,
- 6:22Speaker 2: that's hard because a lot of people were misled. And it's,
- 6:26Speaker 2: I think, led to a lot of finger pointing and
- 6:28Speaker 2: consternation and at a time when we're quite literally, and
- 6:31Speaker 2: I say literally because second before I was here, I
- 6:34Speaker 2: just got the latest briefing, we're bringing cadaver dogs out
- 6:37Speaker 2: there in some parts of the fire where people are
- 6:39Speaker 2: still potentially missing and we've already lost 11 lives.
- 6:43Speaker 1: People are just devastated in Los Angeles.
- 6:47Speaker 2: They're scared.
- 6:49Speaker 1: They are angry. Some of that is directed at local officials,
- 6:52Speaker 1: state officials, you. We talk about how some of that
- 6:56Speaker 1: anger is based on you know, inaccurate information from Donald
- 6:59Speaker 1: Trump and others. But from your perspective, is there anything
- 7:02Speaker 1: the state of California could have done to be better
- 7:05Speaker 1: prepared for a fire like this? And is there anything
- 7:07Speaker 1: the state could have done better or faster in responding?
- 7:10Speaker 2: Well, you always have to have some humility and grace
- 7:14Speaker 2: as it relates to that question. And I'm very self-critical
- 7:18Speaker 2: in that respect. And so we, in every incident, do
- 7:22Speaker 2: an after-action report And we will take a sober and
- 7:26Speaker 2: reflective look at that. But let's just look at the facts.
- 7:29Speaker 2: Just in the last few years I've been governor, we've
- 7:31Speaker 2: close to doubled the investments in CAL FIRE, the state
- 7:37Speaker 2: firefighting force. Close to doubled the number of personnel. We've
- 7:42Speaker 2: increased the size of our aerial fleet by 16 new helicopters.
- 7:46Speaker 2: We were finally able to get from the Pentagon seven C-130s.
- 7:50Speaker 2: We got the first one up there. You saw it
- 7:52Speaker 2: up there in the CAL FIRE flag on this fire.
- 7:54Speaker 2: We had pre-positioned Saturday our State Office of Emergency Service.
- 7:58Speaker 2: We all got together before this event, days before the event,
- 8:02Speaker 2: and we agreed to pre-position in six counties here in
- 8:05Speaker 2: Southern California. Hundreds and hundreds of assets. Let me be
- 8:09Speaker 2: specific about that. On Sunday, we had 110 engines, hundreds
- 8:15Speaker 2: of personnel, specialty crews, dozers, water tenders, helicopters, We pre-positioned
- 8:23Speaker 2: them strategically in multiple counties. And because we had pre-positioned them,
- 8:28Speaker 2: they were first on the scene. Many of these people
- 8:30Speaker 2: supplementing the resources of this local fire department dealing with
- 8:36Speaker 2: overwhelming winds in this overwhelming fire that I happened to
- 8:40Speaker 2: be present at within its first few hours and saw
- 8:44Speaker 2: firsthand the hurricane winds and the embers going as far
- 8:47Speaker 2: as two miles That was overwhelming for the thousands of
- 8:51Speaker 2: people that were down there fighting them concurrent not just
- 8:55Speaker 2: here in the Palisades With the fire out there at
- 8:59Speaker 2: Eaton and some other fires five current active fires as
- 9:02Speaker 2: we're dealing with today 12,000 personnel currently working 175 engines
- 9:07Speaker 2: that have come from five different states We have people
- 9:11Speaker 2: from around the world offering resources notably from Canada and
- 9:15Speaker 2: Mexico And we're putting everything we have at it.
- 9:19Speaker 1: You just sent a letter telling LA and LA County
- 9:22Speaker 1: officials that you're directing the state to investigate the causes
- 9:25Speaker 1: of lost water supply and water pressure during the fires.
- 9:29Speaker 1: I believe there was also a large reservoir in Pacific Palisades,
- 9:32Speaker 1: the San Ynez Reservoir, that was closed for repairs during
- 9:35Speaker 1: the fire. Local officials have said the demand for water
- 9:39Speaker 1: was just too great to maintain the pressure in the hydrants,
- 9:41Speaker 1: especially since aerial water support wasn't available immediately due to
- 9:45Speaker 1: the high winds. Do you not believe that explanation?
- 9:48Speaker 2: No, it may be the absolute explanation, but there's so
- 9:51Speaker 2: much mistrust and finger pointing. Let's just get the facts
- 9:53Speaker 2: and let's get them out quickly. Let's stop the finger pointing.
- 9:56Speaker 2: Let's just assess the truth. I'm not interested in who's
- 9:59Speaker 2: to blame. I want to know what happened. It's a
- 10:02Speaker 2: perfectly plausible analysis on the basis of personal experience with
- 10:07Speaker 2: some of the biggest fires in US history, the Tubbs fire,
- 10:10Speaker 2: what happened at the Camp Fire, what happened in Maui,
- 10:13Speaker 2: that you get systems that are completely tapped out and overwhelmed.
- 10:16Speaker 2: They weren't designed for these level of fires. And so
- 10:19Speaker 2: that explanation is the one that sort of almost, I
- 10:21Speaker 2: won't say universally, but I bet if you talked to
- 10:24Speaker 2: nine out of 10 of the folks that are out
- 10:25Speaker 2: here at the command, they would subscribe to that point
- 10:28Speaker 2: of view. Others are saying, no, it was the pump
- 10:30Speaker 2: that went down. It's the pipes. It was the electricity.
- 10:33Speaker 2: So let's just get the facts. It's DWP that ran
- 10:37Speaker 2: this system. And we want to make sure this never
- 10:41Speaker 2: happens again. Do we need more redundancy? Do we need
- 10:44Speaker 2: to harden? I remember I was mayor of San Francisco.
- 10:46Speaker 2: We did a bond to significantly reduce upgrade our infrastructure
- 10:50Speaker 2: because we're concerned about a catastrophic earthquake and how that
- 10:53Speaker 2: could overwhelm our pumping and fire suppression system. So we
- 10:57Speaker 2: want to determine all those facts, not on the basis, again,
- 11:00Speaker 2: of finger-pointing and assigning blame, but accountability, and we want transparency.
- 11:06Speaker 1: One of my best friends just lost his house in
- 11:09Speaker 1: the Palisades. He just moved in a couple months ago.
- 11:11Speaker 1: He was able to get his two kids and his dogs,
- 11:15Speaker 1: and that was it. Lost everything else. He texted me
- 11:18Speaker 1: the investigation announcement and said, what's going on here? Is
- 11:21Speaker 1: he just trying to pass the blame? And just to
- 11:23Speaker 1: your point about the finger pointing and the blame, so
- 11:26Speaker 1: many people are so angry and You know, how do
- 11:31Speaker 1: you see that in a moment like this when you're
- 11:34Speaker 1: trying to figure out, A, you're governor of the largest
- 11:37Speaker 1: state in the country, and what happens in L.A. isn't
- 11:40Speaker 1: always going to come across your desk, but also you're
- 11:44Speaker 1: ultimately responsible as the governor of the state.
- 11:48Speaker 2: Of course. I want to know the answers. So I'm
- 11:52Speaker 2: the governor of California. I want to know the answer.
- 11:53Speaker 2: I've got that question. I can't tell you by how
- 11:55Speaker 2: many people what happened. my own team saying what happened.
- 11:59Speaker 2: And I want to get the answers. And I'll be
- 12:00Speaker 2: candid with you, I wasn't getting straight answers. I watched
- 12:03Speaker 2: the press conference. I met with some of those leaders.
- 12:05Speaker 2: We had my team start talking to local leaders saying
- 12:08Speaker 2: what's going on.
- 12:08Speaker 1: And you weren't getting straight answers from the local leaders.
- 12:10Speaker 2: I was getting different answers. And so for me, that's
- 12:14Speaker 2: not a story. When you start getting different answers, then
- 12:16Speaker 2: I'm not getting the actual story. And they're assessing it.
- 12:18Speaker 2: And I get that as well. You have a little
- 12:20Speaker 2: bit of grace back to the point. We're in this
- 12:22Speaker 2: emergency environment and everything else. So I just want to
- 12:24Speaker 2: determine the facts. But no one has any patience anymore.
- 12:27Speaker 2: In this weaponized, back to the grievance of Trump, everyone else,
- 12:31Speaker 2: there's immediacy. And lies travel the proverbial world, and it's
- 12:34Speaker 2: hard to get the facts out there unless you have
- 12:37Speaker 2: the backing of those facts, and you can communicate them soberly.
- 12:41Speaker 2: And so that's what we're trying to achieve as it
- 12:43Speaker 2: relates to this. But I have 10 other things we're
- 12:45Speaker 2: doing concurrently as well. I mean, across the board on recovery,
- 12:49Speaker 2: on disaster assistance, getting the major disaster declaration, and maybe
- 12:52Speaker 2: the first one in U.S. history over a text. with
- 12:55Speaker 2: the White House within literally 36 hours to get 100%
- 12:59Speaker 2: reimbursement for folks out here. We've been working concurrently in
- 13:02Speaker 2: all of these areas. We're doing executive orders as I
- 13:05Speaker 2: speak as it relates to recovery and land use, dealing
- 13:09Speaker 2: with speculation and fraud and trying to address issues on
- 13:12Speaker 2: the Coastal Commission here and address the issue of planning
- 13:15Speaker 2: permits and how we address all of the myriad of
- 13:18Speaker 2: needs for small businesses, all of this in real time.
- 13:21Speaker 2: as the state, even though this is not a state responsibility,
- 13:24Speaker 2: are to support the city and the county that are
- 13:27Speaker 2: overwhelmed at this moment.
- 13:29Speaker 1: Do you, as you were talking about sort of misinformation
- 13:32Speaker 1: on how fast it travels, one thing I was saying
- 13:34Speaker 1: on the show yesterday is I feel like in this age, politicians,
- 13:39Speaker 1: elected officials need to almost over-communicate, communicate as much as possible.
- 13:44Speaker 1: You've done that throughout your tenure. Do you think that
- 13:48Speaker 1: Mayor Bass should have canceled her trip to Ghana when
- 13:51Speaker 1: she knew that they were going to be an extreme
- 13:53Speaker 1: weather event?
- 13:53Speaker 2: I literally can't judge it. I don't know when she left.
- 13:56Speaker 2: I can't assess that. It's not on it. And I
- 13:59Speaker 2: mean this like, at peril, my response appears to be
- 14:04Speaker 2: political because I literally do not know when she left.
- 14:10Speaker 2: I know when she came back. I know that when
- 14:13Speaker 2: I was on the scene a few hours after the
- 14:16Speaker 2: original 10 Acres was announced, that her team was on
- 14:19Speaker 2: the phone and we were coordinating and we were hand
- 14:22Speaker 2: in glove in that respect. And I was grateful for that.
- 14:24Speaker 2: And I felt confident in the command response and the
- 14:28Speaker 2: team that was assembled at the site. That said, I
- 14:32Speaker 2: was not confident on the basis of the hurricane winds
- 14:36Speaker 2: that we were experiencing, that we were going to be
- 14:39Speaker 2: successful in saving a lot of those homes for one
- 14:43Speaker 2: reason that the firefighters were coming down saying, Our focus
- 14:46Speaker 2: right now is creating safety corridors. Our focus right now
- 14:49Speaker 2: is saving lives and making sure people get out. Then
- 14:52Speaker 2: we focus on property, and then we'll get to perimeter.
- 14:56Speaker 2: Because of the acuity, the extreme unprecedented hurricane force winds
- 15:01Speaker 2: and how they were swirling in every conceivable direction, this
- 15:05Speaker 2: is not a big deal at all. But we went
- 15:08Speaker 2: up to one of the canyons on the fire, sitting
- 15:11Speaker 2: there feeling we're a good quarter mile away, I'm not
- 15:14Speaker 2: making this up video to bear it out. All of
- 15:17Speaker 2: a sudden, we see an ember hits the tree. Tree
- 15:19Speaker 2: goes on fire. 100 seconds. God is my witness. May
- 15:22Speaker 2: have been 90 seconds. The house is in flames. I
- 15:25Speaker 2: have embers of flames are taking it off my hair
- 15:27Speaker 2: and we're running back into the car. Winds are swirling around.
- 15:31Speaker 2: Garbage cans were in the air and we were getting
- 15:33Speaker 2: the hell out of there. That's how quick. And we
- 15:35Speaker 2: were with experts. We were the leaders with a force
- 15:39Speaker 2: who said, we're good. We just want to take you close,
- 15:41Speaker 2: keep you safe. And all of a sudden they were like,
- 15:43Speaker 2: they all said, never experienced anything in January, in January.
- 15:48Speaker 2: And I remind people that drought, I mean, you know, everybody,
- 15:52Speaker 2: how dare you bring up drought? Well, it's real, it's real,
- 15:54Speaker 2: but plenty of water down here. I mean, all the
- 15:56Speaker 2: reservoirs more than full, uh, though this one reservoir, this
- 16:00Speaker 2: local reservoir, that's part of the inquiry. Uh, that was
- 16:03Speaker 2: something that wasn't communicated originally. That was one of the
- 16:06Speaker 2: reasons to answer the question of your friend and others
- 16:09Speaker 2: as well about getting straight answers. that triggered me saying, enough,
- 16:13Speaker 2: let's get these facts and let's get them out today.
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- 19:41Speaker 1: I ask you this because I know you've been someone
- 19:43Speaker 1: who cares a lot about modernizing government, bringing technology to government.
- 19:48Speaker 1: And this is an L.A. County thing, but... they have
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- 20:04Speaker 1: they've been doing great work. I don't know who's behind it,
- 20:05Speaker 1: but it's a nonprofit. But I was struck by people
- 20:09Speaker 1: relying on watch duty app. And then we're all sitting
- 20:12Speaker 1: there in our house and the emergency evacuation goes off
- 20:14Speaker 1: and people are close to the perimeter and freaking out.
- 20:17Speaker 1: And I'm like, how is that happening in 2024?
- 20:19Speaker 2: Yeah, I mean, these are precisely the kinds of things.
- 20:22Speaker 2: There are thousands and thousands of things that happen. Some big,
- 20:26Speaker 2: some small, some you read about, some you never know about,
- 20:28Speaker 2: some you experience, something someone else experiences. All part of
- 20:31Speaker 2: an AAP, which is the action after action report that
- 20:34Speaker 2: we put out. And it's, in fact, I encourage people,
- 20:38Speaker 2: I was just looking at the Woolsey after action report,
- 20:40Speaker 2: and there were a lot of good lessons learned from that.
- 20:43Speaker 2: And of course, we had a fire. We had fires
- 20:45Speaker 2: in November down here, fires in December. Went so far,
- 20:48Speaker 2: the Franklin scar that actually was, we were able to
- 20:50Speaker 2: hold the line. That's around the Franklin scar right there.
- 20:53Speaker 2: That was because it was burned just recently in December.
- 20:56Speaker 2: So all those things are analyzed. But let me just
- 20:57Speaker 2: say this on the technology. We have people all around
- 20:59Speaker 2: the world coming to California because we're leaders in technology,
- 21:03Speaker 2: on artificial intelligence, We did a procurement sprint called RFI2,
- 21:08Speaker 2: where we're literally doing sandbox. We changed the whole procurement
- 21:10Speaker 2: strategy on how we adopt technology and we pay for performance.
- 21:14Speaker 2: We have a program called Technosilver, which does predictive mapping,
- 21:18Speaker 2: FIRIS systems. We have a DOD contract work for years
- 21:21Speaker 2: and years, finally got into the Biden administration for satellite technology,
- 21:25Speaker 2: drone technology, and surveillance. All of these alert cameras, thousand
- 21:30Speaker 2: plus AI alert cameras that are calling before 9-1-1, someone
- 21:33Speaker 2: calls 9-1-1, to get to early suppression. As I say,
- 21:37Speaker 2: double traditional workforce as it relates to boots on the ground.
- 21:41Speaker 2: We have 2,000 more firefighters that are in the budget
- 21:43Speaker 2: for the next few years. We put out a forest
- 21:46Speaker 2: management plan with 99 specific actions to address vegetation management,
- 21:51Speaker 2: forest management. $ 4 billion to back that up. $ 2. 5 billion
- 21:55Speaker 2: that's been spent. $ 1. 5 billion that's in this year's new budget.
- 21:58Speaker 2: And on that, 100% I'm not making this up. We
- 22:01Speaker 2: had a big press conference a few months ago on this.
- 22:03Speaker 2: 100% of those 99 actions are either adopted or are
- 22:08Speaker 2: being adopted. We waived CEQA and environmental rules as it
- 22:12Speaker 2: relates to getting defensible spaces. We've tried to move heaven
- 22:15Speaker 2: and earth as it relates to forest fire, forest management,
- 22:18Speaker 2: vegetation management, et cetera, to support locals and to address
- 22:22Speaker 2: the anxiety people have. We had the National Guard doing
- 22:25Speaker 2: hand crew work here on day one. We call them
- 22:28Speaker 2: the rattlesnake teams. I got 855 National Guard as we
- 22:30Speaker 2: speak working not just the lines on the fire, but
- 22:35Speaker 2: also offline doing traffic management and supporting and supplementing a
- 22:39Speaker 2: lot of the police force. But again, technology is a
- 22:41Speaker 2: big part of this. We're not just running the old
- 22:45Speaker 2: fire strategies. We're leaders in adaptation and adoption. And a
- 22:49Speaker 2: lot of that at scale at the state level, not
- 22:53Speaker 2: fully implemented to your point at the local level, but
- 22:57Speaker 2: that's starting to change. And we're seeing a lot of
- 22:59Speaker 2: the private sector, not just the public sector, begin to
- 23:03Speaker 2: advance some partnerships that maintain a state-of-the-art mindset.
- 23:08Speaker 1: I want to ask about the rebuilding effort. The legislature
- 23:10Speaker 1: just began a special session on Thursday to prepare the
- 23:13Speaker 1: state for legal battles with the incoming Trump administration. Have
- 23:16Speaker 1: you thought about calling a special session focused on recovery
- 23:19Speaker 1: and rebuilding?
- 23:20Speaker 2: Yeah, I was just talking to both legislative leaders today.
- 23:22Speaker 2: We were text exchanging because we had lousy cell service
- 23:25Speaker 2: up there. And we're going to get together on whether
- 23:28Speaker 2: we need to do that. I'm already working on the
- 23:30Speaker 2: executive orders. We're looking to codify some of the executive
- 23:33Speaker 2: orders through legislative action. Do we need a special session
- 23:36Speaker 2: to do that or we can do it in a
- 23:37Speaker 2: regular session? I'm open to either. I'm happy to do
- 23:40Speaker 2: whatever moves the needle forward. We already have tracks on
- 23:43Speaker 2: insurance in the state's fair plan, reinsurance. I got a
- 23:47Speaker 2: track on utilities, what this means to the utility sector
- 23:51Speaker 2: more broadly. Obviously, we're investigating responsibility, culpability. Is it arson?
- 23:56Speaker 2: Is it a public power agency? Is it private? Power agency,
- 23:59Speaker 2: all those things are being determined in real time. We're
- 24:02Speaker 2: working on a recovery posture as it relates to if
- 24:04Speaker 2: an atmospheric river comes here in the next few weeks,
- 24:07Speaker 2: floods and mitigations as it relates to hazardous waste, traffic management.
- 24:12Speaker 2: All teams are running these parallel tracks in real time as, again,
- 24:15Speaker 2: we're trying to suppress these five fires.
- 24:17Speaker 1: Palisades alone has something like $ 6 billion of insurance exposure
- 24:21Speaker 1: under FAIR, California's insurance program, not nearly enough to rebuild
- 24:24Speaker 1: those homes. Should the state step in and help finance
- 24:27Speaker 1: the rebuilding of these homes, or do the homeowners have
- 24:29Speaker 1: to do it themselves?
- 24:32Speaker 2: There was an estimate of $ 5. 9 billion, which I think
- 24:34Speaker 2: you're referring to. These are back-of-the-envelope estimates. Wall Street Journal
- 24:37Speaker 2: did some $ 57 billion. I mean, people haven't even been in.
- 24:40Speaker 2: I just got an area that no one, trust me,
- 24:42Speaker 2: had been in. So I don't know how the hell
- 24:44Speaker 2: you've assessed all the damage. It's some aerial assessments, and
- 24:47Speaker 2: there's damage happening in real time. But they're catastrophic. The
- 24:51Speaker 2: number of buildings still estimated. I mean, it's well north
- 24:54Speaker 2: of 10,000, 12,000, 15,000. I mean, it changes by the hour. Structures.
- 24:58Speaker 2: And what's a structure? Is it a full home or
- 25:00Speaker 2: is it an ADU? Is it, you know, what it
- 25:02Speaker 2: is exactly? So all that's going to be stress test.
- 25:04Speaker 2: Here's the concern. You've had a market, insurance market all
- 25:07Speaker 2: across the country, not even unique to California, that has
- 25:10Speaker 2: been stretched and impacted by climate change. Let's just be candid.
- 25:14Speaker 2: And the inability in some states like California to do
- 25:17Speaker 2: climate modeling, as it relates to rate structures as well.
- 25:20Speaker 2: We've made reforms in the last year to include climate modeling.
- 25:24Speaker 2: We've made some reforms, ironically, that just last week led to,
- 25:30Speaker 2: and this is not my words, led to, they announced
- 25:32Speaker 2: because of the reforms, led to a new insurer going
- 25:37Speaker 2: into Paradise, California to reinsure people there that have already
- 25:40Speaker 2: recovered and moved back in. So we're finally making progress
- 25:43Speaker 2: on that. And obviously this is going to set us back.
- 25:45Speaker 2: That said, Fair Plan has a reinsurance plan It reimburses
- 25:50Speaker 2: anywhere from 30 to 90%, depending on the size of
- 25:53Speaker 2: the claim. There's a socialization as it relates to the
- 25:57Speaker 2: fair plan. It's not a state plan. It's not a
- 25:59Speaker 2: public plan. It's run through this insurance, this pool of
- 26:03Speaker 2: which the current insurers market participate. And so there may
- 26:09Speaker 2: be a bleed into the pockets of those, and we'll
- 26:13Speaker 2: see the impacts more broadly, the rates across the state.
- 26:16Speaker 2: You have a lot of higher end homes, that were
- 26:19Speaker 2: insured not by your traditional California insurers, but by international insurers.
- 26:24Speaker 2: That's also being assessed. All of that is happening in
- 26:26Speaker 2: real time. Like I said, we have a whole team
- 26:29Speaker 2: just on the insurance market looking at utilities. Remember, in Paradise,
- 26:32Speaker 2: it led to the bankruptcy of PG & E, the
- 26:34Speaker 2: largest investor-owned utility in the United States of America, where
- 26:38Speaker 2: we created a new fund under SB 1054, a wildlife fund,
- 26:43Speaker 2: which we're also stress testing right now. All of these things, again,
- 26:48Speaker 2: in real time.
- 26:48Speaker 1: What's the future look like on insurance, though? I mean,
- 26:51Speaker 1: thousands of people had their insurance policies canceled even in
- 26:54Speaker 1: the weeks before the fire. I know the insurance commissioner
- 26:56Speaker 1: came out and said, moratorium for a year on any
- 26:59Speaker 1: place that's been impacted by the fire.
- 27:02Speaker 2: Well, it's legislation I just signed, and I'm glad he
- 27:04Speaker 2: exercised it. And he also called for a voluntary extension
- 27:07Speaker 2: of that for an additional six months. We want to
- 27:09Speaker 2: get into the commercial sector as well. So that was
- 27:12Speaker 2: timely that we at least were able to do that.
- 27:13Speaker 2: So anyone that did lose... their home, they cannot cancel
- 27:17Speaker 2: your insurance, legally cannot cancel your insurance for a minimum
- 27:19Speaker 2: of a year. Again, we'd love to see that extended,
- 27:22Speaker 2: and we may need to look at legislation. Again, trying
- 27:25Speaker 2: to find the balance between market pressures, realities, and costs,
- 27:29Speaker 2: meaning the burden on the monthly plans. So people were
- 27:35Speaker 2: pulling back, seen it across the country. Rates here, I mean,
- 27:38Speaker 2: it's ironic. California has, and trust me, I'm on the
- 27:41Speaker 2: receiving end. I lost one of our homes, which is
- 27:43Speaker 2: in the WUI. We're on the fair plan because we
- 27:45Speaker 2: lost private insurance. We pay more than the mortgage on
- 27:48Speaker 2: the property just for insurance, and it's significantly underinsured.
- 27:51Speaker 1: Wooey is wildland urban interface.
- 27:53Speaker 2: You got it.
- 27:53Speaker 1: Got it.
- 27:55Speaker 2: So I intimately understand the challenges of this. That said,
- 27:58Speaker 2: the market was beginning to stabilize again. Farmers made announcements.
- 28:02Speaker 2: They were moving back in. So all of this, we
- 28:04Speaker 2: need to unpack and figure out what it's going to
- 28:07Speaker 2: do to the market. But adjustments will need to be made.
- 28:09Speaker 2: And again, we'll move quickly since we're back in session.
- 28:13Speaker 2: be it a special session or regular session, and drive this.
- 28:16Speaker 1: Down the road, though, how do you make sure that
- 28:19Speaker 1: insurance companies will even insure people in places in California
- 28:24Speaker 1: that are vulnerable to fight, that will be more vulnerable
- 28:26Speaker 1: as climate change worsens?
- 28:27Speaker 2: In the executive order I did a year ago where
- 28:29Speaker 2: we talked about the prospect of allowing forward-thinking climate modeling
- 28:34Speaker 2: for the first time to allow for rates to be
- 28:37Speaker 2: established and also work in the insurance commissioner-led this effort,
- 28:41Speaker 2: it requires... if you're entering the market and you're going
- 28:44Speaker 2: to increase rates a certain percent, that you have to
- 28:49Speaker 2: insure within these WUI areas. So there's an actual prescriptive
- 28:53Speaker 2: requirement that requires in return for any rate increases, a
- 28:58Speaker 2: comparable commitment to actually insure and not just run out
- 29:02Speaker 2: of the market. So again, this is the balance. You've
- 29:05Speaker 2: seen it all throughout the United States, obviously in the South,
- 29:08Speaker 2: the impacts of these hurricanes, a place like Florida, the
- 29:11Speaker 2: rates are off the charts. California is ironically a little
- 29:14Speaker 2: below the national average. No one feels that way. I
- 29:16Speaker 2: certainly don't as a rate payer. But this obviously is
- 29:20Speaker 2: going to impact all that. Look, it's going to impact,
- 29:22Speaker 2: we have tax collection issues, property tax issues. We're putting
- 29:26Speaker 2: our budget together. Clearly the IRS under a major disaster
- 29:29Speaker 2: declaration is going to extend taxes We'll have to conform
- 29:32Speaker 2: with that appropriately in the state of California, so you're
- 29:34Speaker 2: going to budgeting a little differently with economic. This is
- 29:38Speaker 2: a tentpole of the economy in the state, among the tentpoles,
- 29:41Speaker 2: in a state that's a tentpole of the U.S. economy,
- 29:44Speaker 2: the fifth largest economy, $ 3. 86 trillion-a-year economy, where, by the way,
- 29:48Speaker 2: the economy is starting to boom again. Our revenues, we
- 29:51Speaker 2: just announced today, have $ 16. 5 billion from what we projected
- 29:55Speaker 2: just six months ago. That was announced today in terms
- 29:59Speaker 2: of the top line And so this comes at an
- 30:01Speaker 2: inopportune time. Um, and obviously with the transition, uh, and
- 30:05Speaker 2: power in, in Washington, DC. So a lot of challenges.
- 30:08Speaker 1: Do you think people in Los Angeles need to think
- 30:11Speaker 1: twice about living in the hills and canyons and, and
- 30:14Speaker 1: people in places that are, you know, vulnerable to fires
- 30:18Speaker 1: and other climate?
- 30:18Speaker 2: Well, there's, it's the new reality. I mean, we say
- 30:20Speaker 2: it all the time. The hots are getting hotter, dries
- 30:22Speaker 2: are getting drier. Wets are getting a lot wetter. These
- 30:24Speaker 2: atmospheric rivers, you know, just these, these just rain bombs. Um,
- 30:29Speaker 2: that we're all experiencing. We have changed everything. I mean,
- 30:33Speaker 2: I've put out a new water management plan in the
- 30:35Speaker 2: state of California. We fund it with billions and billions
- 30:37Speaker 2: of unprecedented investments in infrastructure. In that space, got to
- 30:42Speaker 2: change conveyance, got to change the way you capture water,
- 30:45Speaker 2: not just above ground, but below ground. We got to
- 30:48Speaker 2: change some of our environmental rules, which we've been proactive about.
- 30:52Speaker 2: And that's constant challenge. And that's, again, what Donald Trump
- 30:56Speaker 2: was speaking to specifically. We may have more in common
- 30:59Speaker 2: than he thinks. We may have a lot less in
- 31:01Speaker 2: common in other ways than he thinks on that.
- 31:03Speaker 1: More in common in that there are some regulations and
- 31:06Speaker 1: environmental rules that.
- 31:07Speaker 2: Yeah. I mean, the simplicity to which he marks this,
- 31:15Speaker 2: it's a deeper dive. Though I think you did a
- 31:18Speaker 2: pretty damn, you did a masterclass on this. I think
- 31:21Speaker 2: it was yesterday. Oh, yeah.
- 31:22Speaker 1: And we learned all about the smell.
- 31:24Speaker 2: Yeah.
- 31:24Speaker 1: No.
- 31:24Speaker 2: So I would refer to the previous podcast, which went
- 31:28Speaker 2: off to trot on all grounds here. But that's what
- 31:32Speaker 2: Trump's doing. And these are golden oldies going back decades
- 31:36Speaker 2: and decades in California. But it's not a binary. I
- 31:38Speaker 2: want more flexibility. I'm ready to work with anyone in
- 31:41Speaker 2: terms of modernization. Back to the point, not just on
- 31:44Speaker 2: infrastructure as it relates to capturing water, but recognizing we
- 31:47Speaker 2: have to change the way we design and build our communities. Ingress, egress,
- 31:53Speaker 2: redundancy systems, perfect example, what that letter represents to understand
- 31:57Speaker 2: what's going on. By the way, That letter wasn't just
- 31:59Speaker 2: for this. It was for every other community. And what's
- 32:02Speaker 2: going on? What other similarly situated communities are there? I mean,
- 32:06Speaker 2: no one denies this. There is no fire season. If
- 32:11Speaker 2: someone says that, it's become laughable. I just said, I
- 32:14Speaker 2: reminded everyone, we just had the Franklin Fire in December.
- 32:17Speaker 2: We had the Mountain Fire in November, just down here
- 32:20Speaker 2: in Southern California. There hasn't been any meaningful rain since
- 32:22Speaker 2: last May. And here we are in January with the
- 32:26Speaker 2: prospects of the next 10 days. I mean, dry, it's
- 32:29Speaker 2: 72 degrees out here. And so that's reality. You deal
- 32:32Speaker 2: with reality. And so you're going to rebuild. You've got
- 32:34Speaker 2: to rebuild, as the president said today, better in the
- 32:37Speaker 2: context of materials. And we need to reward better construction
- 32:44Speaker 2: with lower rates for insurance. We've got to design our
- 32:47Speaker 2: communities with public safety in mind. And that's what we
- 32:52Speaker 2: learned in Paradise, which had a P.O. box to your
- 32:55Speaker 2: question of should we move into the WUEI. it goes
- 32:58Speaker 2: back to the gold rush. Who came first? And so
- 33:02Speaker 2: you tell communities that have been around since the beginning
- 33:05Speaker 2: of this state being around, you've got to vacate because
- 33:08Speaker 2: now you're too proximate in a world of climate change
- 33:13Speaker 2: to the beauty and the majesty of the state. So
- 33:16Speaker 2: it's tough, but obviously land use has to radically be rethinked.
- 33:20Speaker 1: We have an affordability crisis as it is. How do
- 33:23Speaker 1: you make sure that people can rebuild their homes as
- 33:25Speaker 1: fast as possible without dealing with the usual red tape bureaucracy.
- 33:30Speaker 1: How do you make sure this doesn't lead to California
- 33:32Speaker 1: becoming an even more expensive state to live in?
- 33:34Speaker 2: Well, we've been hammering, hammering the last six years on
- 33:38Speaker 2: reforming housing and reforming our regulatory system. I created a
- 33:41Speaker 2: housing accountability unit because I wasn't satisfied. 540 actions, tens
- 33:46Speaker 2: of thousands of units we've unlocked. We're suing cities because
- 33:49Speaker 2: they're not zoning. They're not building housing fast enough, not
- 33:52Speaker 2: even market rate housing, let alone workforce housing, and low-income housing.
- 33:56Speaker 2: And so we're going to continue to drive accountability. In fact,
- 33:59Speaker 2: we strengthened our accountability rules and regulations last year. We're
- 34:03Speaker 2: reforming our environmental rules. As I said, 42 CEQA reforms.
- 34:06Speaker 2: But specific to your question around this rebuild, the executive orders.
- 34:11Speaker 2: We run executive orders. I want to work with the
- 34:13Speaker 2: legislature to codify those executive orders. Time value to construction.
- 34:19Speaker 2: Get the permits. State Deal with all of those. Create
- 34:24Speaker 2: a specific timeline. Making it up. We're working on the
- 34:27Speaker 2: exact date, so don't hold me to it. 120 days.
- 34:29Speaker 2: Get the permit. And do it in a way that
- 34:33Speaker 2: we've done it with the experience at hand in other
- 34:37Speaker 2: communities that have been severely ravaged by wildfires. I remind you, Tubbs, 5,600
- 34:42Speaker 2: units impact. And we're rebuilding that community. 18,000 in Paradise.
- 34:49Speaker 2: So we know... how to do this. We've done it
- 34:52Speaker 2: in the past. We learn, we iterate, but the scale
- 34:56Speaker 2: of this is going to require us to be better
- 34:58Speaker 2: and do better. And I'm not waiting back to doing
- 35:00Speaker 2: everything at once. We are going to be making announcements
- 35:04Speaker 2: quite literally in the next few days to specifically answer
- 35:08Speaker 2: that question through the executive authority that's vested in me
- 35:10Speaker 2: and then get to work with the legislature in this
- 35:12Speaker 2: legislative session. Last question.
- 35:14Speaker 1: Do you have a message for people who have lost
- 35:19Speaker 1: everything in these fires and who are scared and angry
- 35:23Speaker 1: and frustrated and concerned that, you know, the state's going
- 35:27Speaker 1: to forget them or leave them behind or they're not
- 35:29Speaker 1: going to be able to rebuild.
- 35:31Speaker 2: That's not in our DNA. It's just not in our DNA. Look,
- 35:35Speaker 2: maybe it's nature or nurture. Five generations from San Francisco.
- 35:38Speaker 2: I grew up in San Francisco. The flag of San
- 35:40Speaker 2: Francisco is the phoenix, phoenix rising. I mean, the San
- 35:46Speaker 2: Francisco pre-1906 versus San Francisco today, we built back stronger, better,
- 35:51Speaker 2: more vibrant, more dominant in every category, every way, shape,
- 35:55Speaker 2: or form, our spirit, sense of pride, purpose, mission. And
- 36:00Speaker 2: that's exactly what's going to happen down here. I mean,
- 36:02Speaker 2: I told you, the campfire, there was no way that
- 36:07Speaker 2: was ever going to be repopulated. The fact that kids
- 36:09Speaker 2: are back in school, we never turned our back on
- 36:12Speaker 2: those folks. We'll never turn our back. on the folks
- 36:15Speaker 2: down here, not just here on the coast, but those
- 36:17Speaker 2: folks and that very diverse community near Pasadena and Altadena
- 36:25Speaker 2: and those communities that have been impacted by the Eden fire.
- 36:29Speaker 2: We will be back. We have their back. I was
- 36:31Speaker 2: with the FEMA director today. I want that disasterassistance.gov, disasterassistance.gov.
- 36:38Speaker 2: Anyone that's been impacted, go to that. We've got this
- 36:41Speaker 2: major disaster declaration. I said to FEMA, you're not turning
- 36:46Speaker 2: your back in the short run. We want you back.
- 36:48Speaker 2: I don't care what the administration is. They still have,
- 36:51Speaker 2: by the way, a FEMA office from 1994 related to
- 36:56Speaker 2: impacts here and disasters from 1994. And we're actually expanding
- 37:01Speaker 2: that office in Pasadena for being the new FEMA office today.
- 37:05Speaker 2: They never left. We're not going to turn our back.
- 37:08Speaker 2: We're not leaving.
- 37:09Speaker 1: Governor Newsom, thank you. Thanks for joining Pod Save America.
- 37:12Speaker 2: Thanks for having me.
- 37:12Speaker 1: It's a busy day. Thank you.
- 37:13Speaker 2: Sorry about everything happening.
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