Governor Newsom’s order fast-tracks rebuilding efforts, extends price-gouging protections, and provides tax relief to wildfire victims in Los Angeles County
Governor Gavin Newsom has issued an executive order to accelerate recovery efforts in Los Angeles and Ventura counties following catastrophic wildfires that have burned more than 39,000 acres, destroyed over 12,000 structures, and displaced thousands of residents.
The executive order, announced on Jan. 12, introduces sweeping measures aimed at expediting rebuilding efforts while incorporating fire-hardening and resilience strategies to mitigate future wildfire risks. Among the directives, the order suspends certain state permitting and building code requirements, extends price-gouging protections for rebuilding materials, and mandates rapid permitting processes to replace destroyed homes.
The wildfires, including the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley fires, have been deemed among the most destructive in California history. “The devastation in Los Angeles County is unimaginable,” Newsom stated. “We are removing bureaucratic barriers to ensure families can rebuild quickly and safely, without unnecessary costs and delays.”
Key Provisions of the Executive Order
- Permitting and Environmental Waivers: Temporary suspension of California Environmental Quality Act (CEQA) regulations and other permitting requirements for rebuilding structures that meet specific criteria.
- Extension of Price-Gouging Protections: Price-gouging restrictions will remain in effect until January 7, 2026, ensuring fair prices for building materials, housing, and other essential services.
- Housing and Permitting Reviews: State agencies, including the Department of Housing and Community Development (HCD), must review and recommend streamlining measures for local permitting processes to issue rebuilding permits within 30 days.
Tax Relief for Affected Residents
In tandem with the executive order, the California Franchise Tax Board (FTB) announced state disaster tax relief for individuals and businesses in Los Angeles County. Taxpayers will have until October 15, 2025, to file 2024 tax returns and make payments originally due between January 7 and October 15, 2025.
This aligns with federal disaster relief measures granted by President Joe Biden’s Major Disaster Declaration. The relief applies to individual tax returns, quarterly estimated payments, corporate taxes, and tax-exempt organization filings.
“My heart goes out to everyone affected,” said State Controller and FTB Chair Malia M. Cohen. “We are committed to ensuring Californians have the support they need during this incredibly difficult time.”
