Smoke Damage Recovery Act.

New Article 2.5 (Section 25544) added to Chapter 6.95 of Division 20 of the Health and Safety Code, creating an 'Environmental Hazard Studies' framework specifically triggered by the Lineage Logistics warehouse fire in Boyle Heights on June 17, 2026.

State-mandated local program designation changed from 'no' to 'yes,' triggering California constitutional reimbursement obligations for costs imposed on local agencies by the bill's new information-sharing and coordination requirements.

Department of Insurance must conduct a study by July 1, 2027, identifying gaps in insurance coverage exposed by the Lineage fire, including additional living expense coverage and business interruption coverage in the absence of a mandatory evacuation order. Final report due December 1, 2027.

Office of Emergency Services, in consultation with CalEPA, must conduct a study by December 31, 2027, identifying entities involved in the Lineage fire incident response and recovery operations, coordination among those entities, and jurisdictional oversight authorities. Final report due July 31, 2028.

New Section 6713 added to the Labor Code requiring the Division of Occupational Safety and Health to propose regulations by July 1, 2029, to protect workers performing work on residential properties that sustained smoke or fire damage from wildfires, including certification requirements for those workers.

The bill's operation is now made contingent upon the enactment of AB 1642 of the 2025-26 Regular Session, meaning the entire Smoke Damage Recovery Act would not take effect unless that companion bill is also enacted.

The Wildfire Remediation and Restoration Certification and Training Fund now also receives fees from worker certification under the new Labor Code provisions, expanding the fund's revenue sources beyond just CalEPA-administered remediation professional certifications.

Replaced the phrase 'wildland-urban interface fire or urban conflagration' with the single term 'wildfire' throughout the bill. The definition of 'wildfire' still requires a state of emergency declaration, but the separate definitions of 'urban conflagration' and 'wildland-urban interface fire' no longer independently require that declaration, simplifying the legal framework.

Section 2060.2(b) was rewritten to limit additional wildfire-specific requirements to those imposed by CalEPA under Section 25405, replacing the broader provision that allowed any local or state public health department, environmental agency, or other governmental agency to issue guidance that would apply to insurance claims.

New subdivision (d) in Section 25405 requires CalEPA standards to consider the adequacy of sensory inspection methods, including visual inspection and odor perception assessments, and to specify circumstances under which these methods are appropriate or inappropriate for determining smoke damage clearance.

Regulation adoption by CalEPA is now mandatory ('shall adopt regulations') rather than conditional ('as may be necessary'). The Department of Forestry and Fire Protection was removed from the joint regulation-adoption requirement, making CalEPA solely responsible.

The definitions of 'urban conflagration' and 'wildland-urban interface fire' no longer include the requirement that the fire be designated in a state of emergency under Section 8558 of the Government Code. Only the umbrella term 'wildfire' retains that requirement.

The bill now uses the abbreviation 'CalEPA' throughout instead of spelling out 'California Environmental Protection Agency' each time, and removes the phrase 'in coordination with other state agencies and local public health departments' from the main standard-setting mandate in Section 25405(a).

The tiered zone system (high-impact within 6 miles, moderate-impact 6-12 miles, low-impact beyond 12 miles) has been removed and replaced with a single 'impact zone' defined as ZIP Codes within or adjacent to the fire perimeter (downwind based on NOAA maps). This simplifies how properties are classified for testing requirements.

The provision allowing CalEPA, CAL FIRE, or local agencies to designate a 'smoke exposure zone' for a specific wildfire (which would supersede default zones) has been removed entirely.

Throughout the bill, references to CalEPA issuing 'guidance' have been changed to 'standards and requirements,' elevating the legal weight of what CalEPA produces from advisory documents to binding standards that insurers must follow.

The rebuttable presumptions that tied specific levels of inspection and testing to the high, moderate, and low impact zones have been removed from Insurance Code Section 2060.2.

A new subdivision (b) in Insurance Code Section 2060.2 was added specifying that when CalEPA imposes additional requirements for a specific wildfire under its authority in Section 25405(e), those requirements apply to all covered smoke damage claims, not just those within the impact zone.

The interim measure provision (former subdivision (f)) that allowed CalEPA to impose sampling and testing requirements before regulations were adopted, with those requirements becoming inoperative upon regulation adoption, has been removed.

'Remediates' has been added to the list of activities (inspect, evaluate, sample, test, analyze, remediate, restore) that require training and certification under the new program, explicitly covering remediation professionals in addition to restoration professionals.

The fund name changed from 'Wildfire Remediation Certification and Training Fund' to 'Wildfire Remediation and Restoration Certification and Training Fund,' reflecting the expanded scope to include restoration work.

The definition of 'restoration of the property to preloss condition' now explicitly includes both 'remediation and restoration' rather than just remediation, broadening what must be done to return a property to its pre-loss state.

A new definition of 'impact zone' is added: a ZIP Code that is either within the fire perimeter or adjacent to the fire perimeter and downwind based on maps generated by NOAA. This creates a geographic boundary for where certain insurance protections apply.

Section 2060.2(a) now limits the application of California EPA guidance to 'claims within the impact zone' rather than all covered smoke damage claims, narrowing the geographic scope of mandatory sampling and testing standards for insurers.

The provision requiring insurers to cover sampling and testing costs no longer references 'the conditions and limitations set forth in subdivision (h)' as a limiting condition. Previously, an insurer's responsibility for these costs was subject to the 120-day notice deadline and the 10 percent sublimit for late claims; that cross-reference has been removed.

Minor language fixes throughout: 'assured of' changed to 'ensured of,' 'caselaw' changed to 'case law,' 'Vote: majority 2/3' simplified to 'Vote: 2/3,' and page numbers updated from 96 to 95.

A new Section 9 declares the bill an urgency statute that takes effect immediately, citing the lack of existing standards for handling wildfire smoke damage insurance claims as the justification. The required vote changes from a simple majority to two-thirds, which is constitutionally required for urgency statutes.

The definition of 'smoke damage' in Section 25405(g)(7) is broadened by removing the phrase 'that requires restoration of the property to preloss condition.' Previously, smoke damage only applied if restoration was needed; now it applies to any exposure of residential property or its contents to wildfire smoke, combustion byproducts, and associated chemicals and contaminants.

Section 25405(a) changes from requiring the agency to 'develop requirements related to minimum health-based standards' to simply 'develop health-based standards,' and removes redundant language about 'standards, parameters, required parameters and thresholds,' replacing it with just 'required parameters and thresholds.' This tightens the mandate slightly.

Section 25405(e)(1) removes the phrase 'the identification of additional chemicals of concern' from the list of things the California Environmental Protection Agency may include in wildfire-specific requirements, narrowing the scope of additional requirements that can be imposed.

A cross-reference error in Section 25405(f)(2) is corrected: 'subdivision (e). (a)' is changed to 'subdivision (a),' fixing a drafting mistake about when interim measures become inoperative.

CalEPA must now develop 'minimum health-based standards' for sampling, testing, and chemical screening levels, rather than just 'minimum sampling, testing, and chemical screening levels.' This explicitly grounds the requirements in health science.

New requirement that CalEPA consult with specific agencies when developing smoke damage standards, including the Department of Toxic Substances Control, Office of Environmental Health Hazard Assessment, State Air Resources Board, State Department of Public Health, and air pollution control districts.

The definition of 'smoke damage' was narrowed from 'exposure to residential property or its contents caused by wildfire smoke, combustion byproducts, and the chemicals and contaminants contained within the wildfire smoke that requires restoration of the property to preloss condition' to simply 'exposure of residential property or its contents caused by wildfire smoke.' This removes the requirement that restoration be necessary as part of the definition itself.

New subdivision (b) in Section 2060.2 requires that when a local or state public health department, environmental agency, or other governmental agency issues explicit guidance for a specific wildfire (identifying chemicals of concern, contaminants, sampling recommendations, and screening levels), that guidance must also apply to residential property insurance claims using the same tiered zone system.

Section 25405(e)(1) now allows CalEPA to impose requirements related to 'wildland-urban interface fire or urban conflagration contaminants' in addition to 'additional chemicals of concern,' broadening the range of substances that can be targeted for specific wildfire remediation.

New subdivision (c) in Section 2060.2 creates an interim mechanism: until CalEPA develops its required guidance by June 30, 2027, any local or state government agency guidance describing specific standards for sampling, testing, and chemical screening levels for residential smoke damage must apply to insurance claims.

The findings section now states the Smoke Claims and Remediation Task Force 'has submitted its report of recommendations to the Insurance Commissioner' rather than being 'in the process of completing' it, reflecting the Task Force's completion.

Fixed an internal cross-reference error in Section 25405(f)(2), changing 'subdivision (e)' to 'subdivision (a)' so the interim measure correctly references the main standards provision.

The fiscal committee vote changed from 'no yes' (indicating a split or pending status) to 'yes,' indicating the Legislative Fiscal Committee now supports the bill.

The bill was given the short title 'Smoke Damage Recovery Act' and expanded from findings-only language to include operative regulatory provisions across the Health and Safety Code and Insurance Code.

CalEPA must develop minimum sampling, testing, and chemical screening requirements for smoke-damaged residential properties by June 30, 2027, using tiered zones: high-impact (within 6 miles of fire perimeter), moderate-impact (6 to 12 miles), and low-impact (beyond 12 miles). Agencies may designate a 'smoke exposure zone' for a specific wildfire that supersedes the default zones.

CalEPA must establish training and certification requirements by January 1, 2028, for persons who inspect, evaluate, sample, test, analyze, or restore smoke-damaged residential properties, including industrial hygienists, restoration professionals, and laboratories. Fees are limited to the cost of administering and enforcing the program.

Insurers must inspect smoke-damaged properties within 30 calendar days of receiving notice (or 30 days after access is granted if government restrictions apply), pay actual cash value within 30 days of inspection, and pay the undisputed replacement cost amount within 15 days of receiving the insured's contractor contract. Late payments accrue interest.

The Department of Insurance must develop training and certification programs by January 1, 2028, for both insurance adjusters (Section 14048) and public insurance adjusters (Section 15009.2) in inspecting, evaluating, sampling, or testing wildfire smoke damage in residential properties. Violations are unfair practices subject to penalties.

A Wildfire Remediation Certification and Training Fund is created in the State Treasury. Fees collected for certification of smoke damage inspectors, testers, and restorers are deposited into this fund and available upon legislative appropriation.

Insurers are prohibited from terminating additional living expenses coverage for a smoke damage claim until the property has been cleared for habitation per CalEPA guidance. This applies to residential property insurance policies for wildfires declared a state of emergency.

Rebuttable presumptions are created: properties in the high-impact zone are presumed to have significant smoke damage exposure; moderate-impact zone properties are presumed moderate impact; low-impact zone properties are presumed low impact. Insurers bear the cost of required sampling and testing.

Insureds must provide notice of a smoke damage claim within 120 days after the wildfire reaches 100 percent containment. Late notice may result in a sublimit of no less than 10 percent of policy limits for the primary structure, with extensions available for good cause.

The fiscal committee answer changed from 'no' to 'yes,' indicating the amended bill now has a state fiscal impact due to the new fund and regulatory requirements.