California governor proposes law to create funds to tackle wildfired

California Governor Gavin Newsom released a report on Friday calling for the creation of funds to fight wildfires and proposed that state law should be reformed to reduce liability of utilities, sending shares of PG&E Corp up nearly 12 percent.

Newsom's report calls for changing liability for wildfire damage to a fault-based system. The current system, known as inverse condemnation, exposes the state's utilities to liabilities from wildfires regardless of their negligence, as long as their equipment is involved.

The current system pushed PG&E to seek bankruptcy protection in January, as it faced liabilities in excess of $30 billion related to the deadliest wildfires in California's history. 

(With inputs from agencies.)