California is poised to become the first U.S. state to set standards for testing and remediation for smoke contamination from wildfires, with a pair of bills passed Monday.

After months of negotiations and a last-minute compromise, Gov. Gavin Newsom’s wildfire liability plan, was killed in the Assembly on Tuesday.

Gov. Gavin Newsom on Saturday backed off his proposal to reduce costs for electrical utilities after their equipment sparks wildfires, agreeing instead to a narrower deal.

The Legislature’s decision not to shield utilities from wildfire liability caused stock prices for Pacific Gas and Electric and Edison International to tumble by 20% and 23%. Bills that passed included proposals on balcony solar and data center rate structures.

As wildfire season intensifies, four California fires have scorched thousands of acres, including the growing Timber Fire in Big Sur.

With billions of dollars at stake, it was ultimately the proposal’s ambition and breadth that sank it.

A California bill is “more focused on victim protections without any new investor protections,” according to analysts.

Lawmakers balk at Newsom’s proposal to limit utilities’ wildfire liabilities, sending shares down sharply.