Desperate to get a handle on rising property insurance costs driven by natural disasters, some state lawmakers are opening up a new line of attack in the effort to force oil companies to bear the cost of climate change effects. 

In three states, Democratic lawmakers introduced bills this session that would allow insurance companies or state attorneys general to take action against oil companies to offset the rising costs of insurance. 

While none of the measures became law this session, they signal the increasing urgency in states where wildfires, floods and other disasters have driven up the cost of insurance premiums and led some insurers to stop writing new policies. 

The proposals follow other state-led efforts to demand payment from fossil fuel producers for the mounting damages caused by climate change. States and municipalities have filed more than three dozen lawsuits over the industry’s role in the climate crisis, claiming companies violated a variety of laws, including consumer protection, public nuisance, failure to warn, fraud and racketeering.

Meanwhile, a handful of states have passed or introduced “climate Superfund” bills that use attribution science — a new field of research — to calculate the cost of disasters and charge fossil fuel companies for their role in causing them. 

Those efforts have drawn fierce opposition and legal challenges from oil companies and conservative groups. 

Now, some Democrats are using a similar premise to try to put large oil companies on the hook for the fast-growing insurance crisis. 

In many states, property insurance costs have skyrocketed as insurance companies have paid out increasing claims for wildfires, hurricanes and floods. Some insurers have stopped writing policies in certain areas. 

California and some other places have seen a surge of new policies on state-backed “last resort” insurance plans after residents failed to find coverage on the private market. California’s program, known as the FAIR Plan, was hit with billions in losses and sought a massive rate hike following the Los Angeles wildfires in 2025. 

A bill in California would empower the state attorney general to sue fossil fuel companies to recover insurance costs. That measure failed to advance out of committee last month, with Republicans and some Democrats expressing concerns about fuel prices among other issues. 

A bill in Hawaii would allow insurance companies to seek damages from fossil fuel companies for their role in causing disasters worsened by climate change. Any proceeds gathered from actions against polluters would be factored into insurance rates. 

The bill passed both the House and Senate, but failed to advance when a conference committee ran out of time before a deadline earlier this month, the Honolulu Star-Advertiser reported. 

“[T]he largest oil and gas corporations, who knowingly contributed to the drought conditions that made the Maui fires worse, pay nothing while continuing to rake in billions of dollars in profit every year,” Democratic state Sen. Jarrett Keohokalole wrote in a Honolulu Civil Beat op-ed. “Hawaiʻi taxpayers should not be forced to foot the bill for Big Oil’s deception.”

Meanwhile, a similar bill in New York, allowing both insurance companies and the state attorney general to take action against oil companies over insurance costs, has been introduced but has not yet had a hearing in committee.

As with all legislation targeting the fossil fuel industry, the insurance bills have encountered fierce opposition and powerful lobbying campaigns. If enacted, the proposals would undoubtedly face lawsuits. Fossil fuel companies have long argued that they extracted and sold their products while following a suite of federal regulations, insulating them from state claims of harm. 

States have countered that the companies knew about the dangers of climate change but lied to the public, noting the successful campaign to hold tobacco companies accountable for deception even though their products were sold legally. 

Stateline reporter Alex Brown can be reached at abrown@stateline.org.

There’s a lot of untapped potential in our homes and vehicles that could be harnessed to reinforce local power grids and make them more resilient to unforeseen outages, a new study shows.

In response to a cyber attack or natural disaster, a backup network of decentralized devices — such as residential solar panels, batteries, electric vehicles, heat pumps, and water heaters — could restore electricity or relieve stress on the grid, MIT engineers say.

Such devices are “grid-edge” resources found close to the consumer rather than near central power plants, substations, or transmission lines. Grid-edge devices can independently generate, store, or tune their consumption of power. In their study, the research team shows how such devices could one day be called upon to either pump power into the grid, or rebalance it by dialing down or delaying their power use.

In a paper appearing this week in the Proceedings of the National Academy of Sciences, the engineers present a blueprint for how grid-edge devices could reinforce the power grid through a “local electricity market.” Owners of grid-edge devices could subscribe to a regional market and essentially loan out their device to be part of a microgrid or a local network of on-call energy resources.

In the event that the main power grid is compromised, an algorithm developed by the researchers would kick in for each local electricity market, to quickly determine which devices in the network are trustworthy. The algorithm would then identify the combination of trustworthy devices that would most effectively mitigate the power failure, by either pumping power into the grid or reducing the power they draw from it, by an amount that the algorithm would calculate and communicate to the relevant subscribers. The subscribers could then be compensated through the market, depending on their participation.

The team illustrated this new framework through a number of grid attack scenarios, in which they considered failures at different levels of a power grid, from various sources such as a cyber attack or a natural disaster. Applying their algorithm, they showed that various networks of grid-edge devices were able to dissolve the various attacks.

The results demonstrate that grid-edge devices such as rooftop solar panels, EV chargers, batteries, and smart thermostats (for HVAC devices or heat pumps) could be tapped to stabilize the power grid in the event of an attack.

“All these small devices can do their little bit in terms of adjusting their consumption,” says study co-author Anu Annaswamy, a research scientist in MIT’s Department of Mechanical Engineering. “If we can harness our smart dishwashers, rooftop panels, and EVs, and put our combined shoulders to the wheel, we can really have a resilient grid.”

The study’s MIT co-authors include lead author Vineet Nair and John Williams, along with collaborators from multiple institutions including the Indian Institute of Technology, the National Renewable Energy Laboratory, and elsewhere.

Power boost

The team’s study is an extension of their broader work in adaptive control theory and designing systems to automatically adapt to changing conditions. Annaswamy, who leads the Active-Adaptive Control Laboratory at MIT, explores ways to boost the reliability of renewable energy sources such as solar power.

“These renewables come with a strong temporal signature, in that we know for sure the sun will set every day, so the solar power will go away,” Annaswamy says. “How do you make up for the shortfall?”

The researchers found the answer could lie in the many grid-edge devices that consumers are increasingly installing in their own homes.

“There are lots of distributed energy resources that are coming up now, closer to the customer rather than near large power plants, and it’s mainly because of individual efforts to decarbonize,” Nair says. “So you have all this capability at the grid edge. Surely we should be able to put them to good use.”

While considering ways to deal with drops in energy from the normal operation of renewable sources, the team also began to look into other causes of power dips, such as from cyber attacks. They wondered, in these malicious instances, whether and how the same grid-edge devices could step in to stabilize the grid following an unforeseen, targeted attack.

Attack mode

In their new work, Annaswamy, Nair, and their colleagues developed a framework for incorporating grid-edge devices, and in particular, internet-of-things (IoT) devices, in a way that would support the larger grid in the event of an attack or disruption. IoT devices are physical objects that contain sensors and software that connect to the internet.

For their new framework, named EUREICA (Efficient, Ultra-REsilient, IoT-Coordinated Assets), the researchers start with the assumption that one day, most grid-edge devices will also be IoT devices, enabling rooftop panels, EV chargers, and smart thermostats to wirelessly connect to a larger network of similarly independent and distributed devices. 

The team envisions that for a given region, such as a community of 1,000 homes, there exists a certain number of IoT devices that could potentially be enlisted in the region’s local network, or microgrid. Such a network would be managed by an operator, who would be able to communicate with operators of other nearby microgrids.

If the main power grid is compromised or attacked, operators would run the researchers’ decision-making algorithm to determine trustworthy devices within the network that can pitch in to help mitigate the attack.

The team tested the algorithm on a number of scenarios, such as a cyber attack in which all smart thermostats made by a certain manufacturer are hacked to raise their setpoints simultaneously to a degree that dramatically alters a region’s energy load and destabilizes the grid. The researchers also considered attacks and weather events that would shut off the transmission of energy at various levels and nodes throughout a power grid.

“In our attacks we consider between 5 and 40 percent of the power being lost. We assume some nodes are attacked, and some are still available and have some IoT resources, whether a battery with energy available or an EV or HVAC device that’s controllable,” Nair explains. “So, our algorithm decides which of those houses can step in to either provide extra power generation to inject into the grid or reduce their demand to meet the shortfall.”

In every scenario that they tested, the team found that the algorithm was able to successfully restabilize the grid and mitigate the attack or power failure. They acknowledge that to put in place such a network of grid-edge devices will require buy-in from customers, policymakers, and local officials, as well as innovations such as advanced power inverters that enable EVs to inject power back into the grid.

“This is just the first of many steps that have to happen in quick succession for this idea of local electricity markets to be implemented and expanded upon,” Annaswamy says. “But we believe it’s a good start.”

This work was supported, in part, by the U.S. Department of Energy and the MIT Energy Initiative.