The Brief

Three years ago, California built a first-in-the-nation system aimed at protecting drivers when oil markets turn calamitous. The legislature passed it. Gov. Gavin Newsom signed it. He proclaimed "California took on Big Oil and won."

Its author, then-Sen. Nancy Skinner called it a "landmark law" that "will allow us to hold oil companies accountable if they pad their profits at the expense of hard-working families."

But the law — which gave regulators the power to cap refinery profits and penalize oil companies for price gouging — has never been used. Instead, last year, the California Energy Commission voted to delay the rules for five years. Skinner – who wrote the law as a Senator – was absent when her own commission voted to delay it.

Now, with gas topping $5.30 a gallon statewide, that decision is under a new spotlight. The Iran war has sent global oil prices soaring — but the war is only part of the story. California has a structural problem: fewer refineries, a captive market and no easy outside supply options. When prices rise nationally, they can rise even more here.

Proponents say this is precisely the moment the 2023 law was designed for. The commissioners last year left the door open to rescind the delay — and move forward with the rule before the five years — if they change their minds.

"These are the moments we need them, because when the price of a commodity goes through the roof — be it crude oil or refined gasoline — that's when companies make outrageous profits," said Jamie Court, president of Consumer Watchdog.

But those who backed the delay argue it was a necessary concession — that penalizing refiners risked driving them out of the state entirely. It's a tension that cuts to the heart of California's energy predicament: how to protect consumers today from an industry the state can't yet afford to lose, while still making good on its promise to leave that industry behind.

California’s unused gas-price tools

When the California Energy Commission met last August Newsom was already retreating from his confrontation with the oil industry. The question before commissioners was whether to move ahead with aggressive rules targeting refinery profits — or step back, as the governor was doing.

It was a sharp reversal. Newsom had declared special legislative sessions in 2022 and 2024, pushing through sweeping new powers to curb gasoline price spikes — including requirements that refiners store more fuel and replace lost supply during maintenance, and the profit-cap rules now sitting dormant. A new energy commission oversight division created by the law found an unexplained gasoline premium of about 41 cents per gallon between 2015 and 2024, costing drivers an estimated $59 billion.

Gas prices are displayed on a sign at a filling station in Fresno on March 6, 2026.

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Larry Valenzuela

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CalMatters

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“Those are critically important laws,” said Kassie Siegel, director of the Climate Law Institute at the Center for Biological Diversity. “What that information shows is that Californians are at the mercy of a very few refiners with immense power.”

California’s oil industry strongly opposed the measures, and some economists remain skeptical of them. UC Berkeley energy economist Severin Borenstein warned that capping refinery profits during shortages could backfire.

“The last thing we need is to start trying to regulate refinery margins,” he said. “As much as people don't like high gasoline prices, they really, really hate gas lines.”

By last August, refinery closures were looming and warnings of $8-a-gallon gasoline circulated in Sacramento. Newsom and Democratic leaders were negotiating with the oil industry to boost production in Kern County — talks that produced a law that has since driven an uptick in drilling permits.

After Valero said it would close its Benicia refinery, Newsom directed Siva Gunda, vice chair of the California Energy Commission, to “redouble the state’s efforts to work closely with refiners on short- and long-term planning” and ensure a “reliable supply of transportation fuels.” Gunda responded with a series of recommendations that aligned largely with industry’s desires — among them a pause in the state’s profit-cap rule.

Against that backdrop, energy commissioners voted on Aug. 29 to delay the rules for five years. Ahead of the vote, Gunda said the delay would help boost “investor confidence” in the state’s oil refiners, “thereby ensuring a reliable in-state refining capacity.”

Oil industry representatives say the decision made sense – the profit-cap measures, they argued, miss the real problem.

“The real problem is California is an energy island — we’re losing 17% of our refining capacity,” said Zachary Leary, a lobbyist for the Western States Petroleum Association.

But Court, of Consumer Watchdog, said the governor “panicked,” leaving the state without the “hammer” it now needs.

“When you have this type of level of gas run up, you're going to need those tools,” Court said.

The difficult middle of the energy transition

California has committed to phasing out fossil fuels by 2045 — but it still depends heavily on gasoline, and it is losing the refineries that produce it.

Phillips 66 last year shut its Los Angeles refinery, citing concerns about the sustainability of the California market. Valero is closing its Benicia refinery next month, pointing to a challenging regulatory environment.

“If you start losing refineries — as we are going to — and you don't have an alternative source of supply, we're going to start getting price spikes when there's any sort of disruption at one of our refineries,” Borenstein said. “Or just during high demand periods.”

The challenge of reducing fossil fuel use while maintaining adequate supply has created what Gunda — Newsom’s point person in negotiations with the oil industry — calls the “mid-transition.

“This is not going to be a smooth transition,” Gunda said last month in testimony to a state Senate committee. “Every time you lose a refinery, it’s going to be a double-digit percent of refined fuel lost in California. So that abrupt transition will mean an abrupt increase in imports.”

A global oil shock hits California

The recent jump in gasoline prices reflects a global oil shock tied to the war with Iran — not a policy change unique to California, experts said. But the surge highlights how exposed the state remains to global energy markets as it loses refining capacity and imports more crude and gasoline.

Since the conflict began, the international benchmark for crude oil has climbed more than $25 a barrel — a shift that typically translates to about 60 cents per gallon at the pump, in line with the increase in California retail prices, argues Borenstein, of UC Berkeley.

“All of the change we've seen in the last couple of weeks is in line with the change in crude oil prices, and therefore is not California specific,” he said.

Newsom has made a similar argument, blaming the spike on global oil markets and the war with Iran rather than California policies. But analysts note that the state's shrinking refinery base means global shocks land harder here than elsewhere.

A key concern is the Strait of Hormuz. Before the conflict, the narrow waterway carried more than 20 million barrels of oil a day — roughly one-fifth of global supply. Traffic is now at a standstill, and crude prices topped $100 a barrel again — even after more than 30 countries announced releases from emergency reserves.

Ryan Cummings, chief of staff at the Stanford Institute for Economic Policymaking, said a prolonged closure could push crude prices above $130 or $140 per barrel — driving California prices closer to $7, with a worst-case scenario approaching $10 at some stations.

Most analysts consider that outcome unlikely but no longer unthinkable.

“Right now, this doesn't appear likely, but it is a worst-case scenario that is growing by the day,” Cummings said.

Competing ideas for what comes next

Siegel, of the Center for Biological Diversity, said California should move forward immediately to implement the profit-cap rules and require companies to hold larger fuel inventories.

“Our leaders shouldn't rest until the rules are in place to prevent price gouging on top of volatility, and should not rest until people get their money back,” she said.

Economists say California’s biggest challenge may be infrastructure. Valero plans to close its Benicia refinery, which produces about 10% of the state’s gasoline, next month. In an analysis posted last year, Stanford economist Neale Mahoney and Cummings said California could offset lost refinery production with gasoline imports – if permitting allows refineries like Benicia to convert to fuel import terminals. Newsom said in January his administration is working with the company to continue importing gasoline into Northern California after its refinery operations close.

“If I was in the Legislature right now, all of my energies and effort would be built on, one, making sure that Benicia gets turned into an import terminal — and two, making sure whoever owns or operates that is not an incumbent,” Cummings said.

Court, of Consumer Watchdog, pointed to a proposed Phillips 66 pipeline that could bring refined gasoline from Midwest refineries into the state – something California has never had, relying instead on in-state refining and marine imports. Dubbed the Western Gateway Pipeline, the project would build a new pipeline and reverse an existing one to move gasoline and diesel from central U.S. refineries to Arizona and California.

One state lawmaker has proposed expanding access to E85, a cheaper ethanol blend. Both ideas remain proposals without clear timelines.

Meanwhile, some oil companies and even some Democrats are warning California’s climate policies could raise production costs enough that refineries reconsider operating in California — adding another pressure point to an already strained supply picture.

The profit-cap rules that could penalize oil companies remain on hold until 2029. By then, California may have lost more refineries — and may still be grappling with the problem Newsom once promised to solve: gasoline price shocks in the country’s most unaffordable market.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

The legal tug-of-war centers on a two-panel work called “Adam” and “Eve.” The life-size paintings depicting the biblical characters were created around 1530 by German artist Lucas Cranach the Elder.

The Nazis stole the two paintings, and many others, from Jewish art dealer Jacques Goudstikker in Holland in 1940. After the war, the Dutch government sold these two works to a Russian aristocrat, who sold them to the Norton Simon in Pasadena in 1971.

“By pursuing the recovery of the Cranachs, we are seeking to reverse a great injustice perpetrated by the Nazi theft of a Jewish family’s property,” Rabbi Noah Farkas, president and CEO of Jewish Federation Los Angeles, said in a written statement.

The Federation is plaintiff in a lawsuit filed on Monday in L.A. Superior Court that names the museum and two related foundations as defendants. Cranach the Elder’s work has sold for millions of dollars.

Goudstikker’s only living heir, Marei von Saher, gave the Federation the authority to file the lawsuit. If the lawsuit is successful, the Federation pledges to use the majority of the net proceeds to care for impoverished Holocaust survivors living in the L.A. area.

Adam and Eve, painted around 1530 by German artist Lucas Cranach the Elder.

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Courtesy Norton Simon Art Foundation

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Von Saher has spent years trying, unsuccessfully, to get these paintings back. But this lawsuit is different. It’s filed under a 2024 California law that gives people the ability to petition to recover cultural property “that was taken or otherwise lost as a result of political persecution,” according to the law.

Stolen painting

Responding to the lawsuit, the Norton Simon Museum did not challenge that the painting was looted by the Nazis.

“After decades of litigation, court after court including the United States Supreme Court has confirmed that the Norton Simon Art Foundation has proper title to 'Adam' and 'Eve,'" the museum said in a written statement.

The museum is referring to a 2018 ruling by the U.S. Ninth Circuit Court of Appeals, which said that since a foreign government sold the artwork, the court could not declare that sale illegal. The U.S. Supreme Court let that decision stand without reviewing it.

The Norton Simon has been pressured to negotiate with the heirs to return the work, even from the founder’s grandson.

“In my opinion, it's immoral and unethical because they don't have good title,” said Joel Greenberg, founder of the nonprofit Art Ashes, which helps families of Holocaust survivors recover art looted from their ancestors.

It’s not the only high-profile case of Nazi-looted art in the region. The late Los Angeles resident Maria Altman recovered a work by Gustav Klimt that was looted from her family by the Nazis in Austria.

LOS ANGELES (AP) — A motorist was arrested on murder charges after authorities say she slammed her SUV into a city bus in Los Angeles, killing at least two people and injuring six others in a prelude to a second deadly tragedy: the fiery crash of a TV news helicopter that was covering the collision.

Bailee Lynn Rios, 36, of Simi Valley, was arrested Tuesday night and is being held at a Los Angeles jail with bail set at $4 million, police said Wednesday. The case is being forwarded to the district attorney’s office, which will decide whether to file the charges in court or pursue different ones. Information on a lawyer who could speak on her behalf was not immediately available.

The helicopter, which was used by NBC and Telemundo, crashed about two hours after police say Rios drove her 2004 Ford Expedition the wrong way down a busy avenue, ran a red light and struck a vehicle before hitting the bus. One passenger was fully ejected from the bus and another was partially ejected, police said.

Rios’ mother, Cindy Rios, said she was shocked and saddened by the string of events. She said she had not spoken to Bailee Lynn since her arrest and had not been contacted by law enforcement.

“It’s just horrible,” Cindy Rios told The Associated Press in a phone interview Wednesday. “The fact that my daughter was involved and was the cause of it is just extremely disturbing.”

“If anything, I’m sorry for the other families,” she added. “My daughter’s alive. People lost their lives.”

Chopper crash killed a reporter, a pilot and a man on the ground

NBC4 Los Angeles reported that two people aboard the helicopter — reporter Eliana Moreno and pilot George Marciniw — were killed when the chopper went down Tuesday in the Chatsworth neighborhood in the San Fernando Valley north of downtown.

A person on the ground, identified as 29-year-old Edy Gutierrez Mejia, died in a parking lot, the Los Angeles County Medical Examiner’s Office said. He was from Guatemala, the country’s consulate confirmed.

The crash happened as news crews were reporting on the collision involving the SUV that slammed into the bus.

There were no immediate details on what caused the helicopter crash, but an alarm could be heard sounding inside the helicopter’s cockpit as it lost altitude in the final seconds of video the crew broadcast before the crash.

Just after the beeping noise starts, a woman’s voice says “uh oh.” The helicopter moves quickly away from the bus crash site and starts losing altitude. The woman says “You can’t pull up?” before the video stops as the chopper nears the ground.

“That video is probably the most important evidence that we have discovered so far,” National Transportation Safety Board investigator Fabian Salazar said Wednesday at a news briefing.

Salazar said the sounds were consistent with the helicopter’s engine changing speed, as well as what he said were likely advisory tones for the pilot. The NTSB said it is also investigating the bus collision.

The helicopter, a Eurocopter AS350, went down near a large storage facility. At least four cars and two storage containers burned after the helicopter caught fire. NBC4 reporter Robert Kovacik was at the bus scene and saw black smoke and rushed to the helicopter crash site.

Anchor and reporters pay tearful tributes to deceased colleagues

Moreno was a familiar voice for NBC4 and Telemundo 52 during the station’s aerial coverage. She and Marciniw were both were employees of Angel City Air, which operated the chopper for the station.

Moreno, born in Orange County, joined Angel City Air in 2010, the same year she earned a broadcast journalism and political science degree from Chapman University. She reported for several news outlets and began flying with Marciniw in 2023, the NBC4 website said.

Marciniw grew up in Southern California and graduated from Burbank High School in 1974.

“I think a lot of us are still trying to process what happened, this terrible loss,” NBC4 reporter Lauren Coronado told viewers early Wednesday as she stood near the crash site. A hazmat crew was cleaning up jet fuel, she said.

In a tribute to Moreno and Marciniw, the newscast referred to them as “the team in the sky,” saying Moreno would often post videos from her job and was in awe of the view. Anchor Lynette Romero held a colleague’s hand and wiped away tears after hearing Moreno’s voice when one of her posts was played.

In an interview with the station, Esteban Jimenez, a pilot, said he had known Marciniw since the 1990s. He said Marciniw had been his instructor.

“I just talked to him on Sunday. We were talking about the aviation business and retiring,” he said.

Expert talks about what may have caused the crash

Aviation safety expert Jeff Guzzetti said the alarm sounding in the helicopter’s final video sounds like the low rotor RPM warning horn that signals the main rotor is no longer spinning enough to keep the helicopter in the air.

“It just has all the earmarks of a potential loss of engine power and a dangerous decrease in the main rotor speed,” said Guzzetti who used to investigate crashes for both the NTSB and FAA.

Guzzetti said the pilot appeared to be trying to perform an emergency maneuver to use the wind to force the rotor to spin again much like a breeze turns a windmill. Doing that can create a bit of lift that could help cushion the impact, but Guzzetti said there would have been little opportunity to do that because the helicopter had been hovering at a low altitude beforehand.

There are risks to news helicopters particularly in a major city like Los Angeles where multiple helicopters respond to an incident, but the pilots all coordinate closely over the radio to ensure they maintain a safe distance from each other. The industry also shares best practices to help keep these news flights safe.

“It’s a very unique form of flying. And the community is very good about lessons learned,” Guzzetti said. “And so because of that, you don’t hear about too many of those accidents. So they’re rare, but they do occur, just because the mission is a risky one.”

Other crashes involving news helicopters

The station said this is the second aviation tragedy in its history.

In 1977, a KNBC news helicopter crashed when it ran out of fuel while returning to the station after covering a wildfire in Santa Barbara, killing the pilot and camera operator. The pilot, former U.S. Air Force officer Francis Gary Powers, had been in the news years earlier when he was shot down and captured while flying a U-2 spy plane over the Soviet Union for the CIA, an ordeal portrayed in the movie “Bridge of Spies.”

There have been at least eight fatal crashes involving news helicopters in the U.S. since 2000, killing 16 people, according to a review of federal accident records and news accounts.

They include a 2023 crash in a New Jersey forest that killed the pilot and a photographer aboard a helicopter used by Philadelphia station WPVI and a 2022 crash beside a Charlotte, North Carolina, interstate that killed a pilot and meteorologist during a training flight for WBTV.

A 2007 midair collision in Phoenix of two TV news helicopters that were covering a police chase led the NTSB to recommend that news helicopters have at least two people in the cockpit so the pilot can focus on flying while the reporter focuses on the story.

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Golden reported from Seattle, and Collins from Hartford, Connecticut. Associated Press writers Josh Funk in Omaha, Nebraska; Olga Rodriguez in San Francisco; Kathy McCormack in Concord, New Hampshire; and Allen Breed in Raleigh, North Carolina, contributed.

Federal and county law enforcement announced charges Wednesday against three people in a widening investigation of homelessness services fraud in the L.A. area. Prosecutors previously charged three other people and said they plan to bring “many more” cases.

In Wednesday’s announcement at a news conference, authorities alleged a bribery scheme built on "ghost" clients illustrates a yearslong problem.

"Nobody was minding the shop," the region’s top federal prosecutor, Bill Essayli, told reporters in response to a question from LAist. "There's no vetting. There's no auditing. There's no accounting. It was just a rush to push as much money out the door."

What are the charges?

Authorities arrested Michael Young — founder of the Culver City nonprofit Home At Last — and accused him of using shell companies and fake bids to misappropriate $12 million in taxpayer funds. The allegations include siphoning $1 million into a high-end nightclub, a nearly $50,000 trip to Tahiti and a $140,000 restoration of a vintage Chevy Impala.

Michael Young, 46, of Baldwin Hills

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Courtesy Department of Justice

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A headshot of Alex Soofer shared by a federal prosecutor on X.

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First Assistant U.S. Attorney Bill Essayli via X

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Scott Turner, the U.S. secretary for Housing and Urban Development, said Young's group received more than $118 million in public dollars for homeless housing since 2019 — over $75 million of it through the Los Angeles Homeless Services Authority, or LAHSA.

The new cases allege about $12 million in misappropriated funds — almost all of it by Young.

The bribery charges are against Lakiya Malone, an employee of the nonprofit Special Service for Groups, or SSG, who was responsible for referring homeless people to LAHSA-funded housing. Prosecutors say Malone took roughly $180,000 in bribes from Alexander Soofer, head of the now-defunct nonprofit Abundant Blessings, and in exchange steered him "ghost" participants — so he could bill for services never rendered.

Lakiya Malone, 48, of South Los Angeles

Donye Mitchell, 55, of Orange

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Courtesy Department of Justice

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“She was supposed to guard the money, and instead she took bribes,” Essayli, the first assistant U.S. attorney for the Central District of California, said.

In a statement, SSG said it has been working with federal prosecutors “to ensure that any responsible individuals are held accountable” and has strengthened its “protocols and compliance.”

Charges against Soofer were announced in January. Authorities announced Wednesday that he has agreed to plead guilty to wire fraud and money laundering. Soofer admitted in his plea agreement to the alleged bribery scheme.

According to prosecutors, Soofer also admitted to "pocketing at least $2 million in taxpayer money for his own personal enrichment and for businesses unrelated to homeless housing," and that he has agreed to forfeit the money to the U.S. government. Prosecutors previously alleged he diverted a much larger amount: at least $10 million.

An LAist investigation found LAHSA kept awarding millions in contract renewals to Soofer’s group even after LAHSA’s own compliance team labeled it "high-risk" for, among other things, billing for services while reporting no enrolled participants.

The third defendant announced Wednesday is Donye Mitchell of the nonprofit Big Blue Umbrella. Mitchell is accused of lying about his experience to land a $1.2 million county-funded grant, receiving $315,000 and using those funds for personal expenses, including bail for a domestic violence arrest and video games. Officials said he's believed to be in Las Vegas and hadn’t been arrested as of Wednesday morning.

Mitchell is “a convicted fraudster, by the way,” Essayli said. He was convicted in 2011 of defrauding California unemployment benefits, according to the criminal complaint in the new case, and was ordered in 2012 to compensate the state $6 million.

The county funds he’s accused of stealing were awarded by a county vendor in 2024 — well after his fraud conviction.

LAist has left phone messages for Young's and Malone’s lawyers inviting their response to the charges and will update this article if they respond. It is unknown if Mitchell, who has not yet been arrested, has a lawyer.

Prosecutors' critique 

Essayli and L.A. County District Attorney Nathan Hochman criticized what they called a glaring lack of oversight of massive spending on homeless services. Hochman cited a court-ordered 2025 report that found L.A. city officials failed to properly track $2.3 billion in homeless funds, largely by outsourcing to LAHSA — which the review found failed to collect accurate data on its vendors and hold them accountable.

"We have not seen the results you would expect for billions of dollars being spent," Hochman said.

“This is the beginning of these prosecutions,” he added.  ”Many more” are expected in the coming months, he said.

Continuing trouble for LAHSA 

The new charges were announced the day after LAHSA's governing commission decided to give up its responsibility for federal dollars, including applying for roughly $240 million a year in federal homelessness funding and running the annual homeless count.

Also on Tuesday, Mayor Karen Bass skipped a congressional hearing on LAHSA's fraud problems, calling it a "politically motivated" attack.

LAHSA, now led by Interim CEO Gita O'Neill, said in a statement Wednesday that it has "zero tolerance for fraud, waste, or the exploitation of public resources" and commended prosecutors’ action.

The agency said it terminated its contracts with Young’s nonprofit in June after evidence of wrongdoing emerged, and is pursuing recovery of cash seized from Young. The statement added that LAHSA fully cooperated with the federal task force and that no LAHSA staff are implicated — only "external provider executives and outside contractors.”

Essayli was asked Wednesday whether LAHSA's past or current leadership has been culpable.

"That's actually a very difficult question to answer," he said.

"It is not against federal law to be incompetent, unfortunately. I wish it were,” Essayli said. “So just because the people at the helm did not do a good job, that does not give us the authority to arrest them."

“ I assure you, if anyone in power engaged in violation of federal law, we will not hesitate to charge them.”