(Updates with background)
NEW YORK, April 2 (Reuters) - A U.S. judge on Tuesday imposed new criminal probation terms on PG&E Corp aimed at reducing the risk that the bankrupt power producers equipment will spark more destructive wildfires.
U.S. District Court Judge William Alsup of the Northern District of California at a hearing barred PG&E from reissuing dividends so funds can be used to cut wildfire risk.
The probation stems from the company's felony conviction in a deadly 2010 natural gas pipeline blast in San Bruno, California, near San Francisco, that killed eight people and injured 58 others.
PG&E filed for bankruptcy protection on Jan. 29 in anticipation of liabilities from wildfires, including a catastrophic 2018 blaze, the Camp Fire. It killed 86 people in the deadliest and most destructive wildfire in California history.
At a Jan. 30 hearing, Alsup, who is overseeing the company's probation, had said he would consider imposing additional probation terms in the aftermath of Camp Fire. San Francisco-based PG&E expects its equipment will traced as a source of the blaze.
The probation process is separate from PG&E's bankruptcy.
(Reporting by Jim Christie Editing by Nick Zieminski in New York)