The Federal Emergency Management Agency (FEMA), through the U.S. Department of Justice (DOJ), has reached an agreement with PG&E and the Official Committee of Tort Claimants (TCC) that will resolve claims by FEMA in the PG&E bankruptcy proceedings. The agreement is subject to final approval by DOJ.
FEMA may receive up to $1 billion in compensation for federal disaster assistance provided in response to the 2015 Butte Fire, 2017 Northern California Wildfires, and 2018 Camp Fire, but only after individual fire survivors have resolved their claims against the $13.5 billion Fire Victims Trust.
FEMA’s goals in filing a claim in the PG&E bankruptcy have been to:
(1) ensure the needs of disaster survivors are placed first;
(2) hold PG&E accountable for the expenditure of federal disaster assistance; and
(3) ensure FEMA meets its legal obligations to avoid any potential duplication of benefits.
The agreement with PG&E and the TCC will meet these goals.
FEMA will consider its claims fully satisfied by PG&E, with any potential duplication of benefits eliminated. FEMA will not seek repayment of federal funding from any state and local governments or individual disaster assistance recipients who also receive funding from PG&E.