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California Senate Democrats want to put the brakes on a new program by Gov. Gavin Newsom’s administration that steers free pollution permits to oil refineries and other major polluters — and they’re using the state budget to force the issue.

In the spending proposal they released last month, the senators moved to block the program until the state funds a three-party climate deal the governor struck with the Legislature last year, an agreement they say Newsom is now breaking. They call their counterplan “Deal is a Deal,” signaling a standoff that could stretch through the summer.

“We really need to stay to the deal,” said Sen. Eloise Gómez Reyes, a San Bernardino Democrat and chair of the Senate’s climate budget subcommittee.

At stake are billions of dollars earmarked for public transit, safe drinking water and affordable housing raised from climate market auctions. The Senate is also threatening to hold up many of Newsom’s own priorities, including funding for high-speed rail and wildfires, electric-car tax credits and a clean jet fuel subsidy.

At issue is a new incentive program created last month by the California Air Resources Board, which overhauled the state’s carbon market under pressure from Newsom and heavy lobbying by the oil industry. It offers free pollution permits worth as much as $4 billion to companies that pledge to invest in clean energy and efficiency initiatives, with half slated for the fossil fuel industry.

That program threatens to drain funds for a series of air quality, housing and transit programs that lawmakers and Newsom agreed to fund last year, when they extended the state’s carbon market through 2045, rebranding it “cap and invest.” The overhaul also puts up to $1 billion guaranteed to the Legislature for discretionary projects in jeopardy.

A climate bargain under threat

California’s carbon-trading program, launched in 2013, is California’s way of putting a price tag on greenhouse gas emissions responsible for climate change.

Last year’s late-session deal set a new pecking order for the billions of dollars the program raises by auctioning pollution permits.

Under the deal, high-speed rail gets $1 billion a year before many other climate programs are funded; another $1 billion annually is dedicated to lawmakers’ priorities.

Last in line are the programs that turn carbon-market money paid by polluters into tangible benefits for some of California’s most burdened communities: affordable housing projects near transit, cleaner buses and rail, safe drinking water, wildfire protection and neighborhood air monitoring.

Last month, following intense lobbying by the oil industry and ballooning gas prices, the air board adopted rules to cut the number of auctioned pollution permits drastically through 2030 with Newsom’s blessing. It also created a new incentive for oil and gas refineries and other industries investing in decarbonization.

“It’s unfortunate that the state of California empowers the oil industry to freak everyone out and adopt bad policies,” said Sen. Scott Wiener, a San Francisco Democrat.

The Legislative Analyst’s Office projects the changes could cut annual auction revenue for state climate programs from roughly $4 billion to $2 billion, which would wipe out community-focused programs.

Newsom spokesperson Anthony Martinez said the changes keep the carbon market “durable” while helping consumers and industry.

“That is not a retreat from climate leadership — it’s how California keeps leading while the federal government is retreating,” Martinez said.

Senate holds Newsom priorities hostage

Senate Democrats have countered with their own plan. It would protect the $1 billion lawmakers control, then steer as much as $2 billion to the housing, transit, clean air and drinking water programs. Newsom’s priorities would move to the back of the line, meaning if the climate fund brings in only $2 billion, Cal Fire, high-speed rail and other programs would get little or nothing.

“Why, at this time … would we take away critical funding to build affordable homes in California?” said Sen. Jesse Arreguín, an Oakland Democrat and chair of the housing committee.

Wiener said public transit should not have to fight for survival. “Every year, transit funding becomes a political football.”

Meanwhile, Assembly Democrats are mum on the rule change in their budget plan and have not proposed any alternatives.

Assemblymembers Jacqui Irwin and Cottie Petrie-Norris, Democrats who chair key climate and energy committees, have supported the air board’s plan, saying the changes reflect the Legislature’s focus on affordability, including potentially more money for Californians’ electric bills.

The governor and the Legislature have until June 30 to agree on a budget deal before the new fiscal year starts. But much of the climate funding tied up in negotiations is not bound by the deadline and can be hashed out before the legislative session wraps in September.

The Senate’s opposition is threatening to hold up many of Newsom’s priorities.

One is his January proposal to spend $200 million on electric vehicle incentives, $115 million of which would come from the climate fund. Senate Democrats have deferred negotiations on it and talks could last through the summer.

The Senate also rejected Newsom’s proposed sustainable aviation fuel tax credit, which Newsom argues would encourage the production of greener fuel and boost refinery jobs. The initiative, which would allow eligible producers to pay less into the state’s road repair funding, followed intensive lobbying by petroleum refining company Phillips 66, the only company that has publicly announced it would benefit from the credit.

Cleanup tool or polluter subsidy?

The climate funding dispute turns on the idea that California may be using its carbon market to soften the rules for some of the state’s biggest polluters.

Air regulators say the permits created through its new program, the Manufacturing Decarbonization Incentive, will go only to companies that cut their own emissions. They say the program has guardrails, including requirements to return the permits if companies fail to deliver. They argue the program will help keep refineries and other major industries in California while sustaining clean-energy investment as President Donald Trump withdraws federal support.

“The cap-and-invest program was updated to do what it was always designed to do: reduce pollution cost-effectively, protect ratepayers, and keep businesses operating in California,” Lindsay Buckley, a spokesperson for the board, said. “The program was never designed to maximize auction revenue.”

Critics of the new program see only a subsidy for polluters that does not guarantee emissions reductions. They argue the new program could threaten California’s ability to meet its legally mandated 2030 emissions targets.

Several board members shared concerns. The overhaul passed 10-3, but only after the board required further review before the new incentive program launches.

The Senate plan would block climate-fund spending unless the Department of Finance certifies that last year’s deal can be funded. It would also stop the air board from handing out the new industrial permits unless state officials show they align with California’s climate targets, lower gasoline prices and leave enough money for threatened climate programs.

The budget fight could have political consequences for Newsom as he defends his climate record beyond California, said Katie Valenzuela, a policy advocate who focuses on environmental justice issues.

“If this (rule) goes forward and isn’t fixed, this is a huge stain on his climate legacy,” Valenzuela said. “He is showing loud and clear that the most vulnerable residents who are most impacted by climate change are not his priority.”

It is with deep regret that we announce the passing of Helen (Nan) Underwood on June 5, 2026. Helen passed away peacefully surrounded by love.

On October 27, 1947 the earth was blessed with the birth of Helen Ann Lindsey. She was born to Jeraldine Thomas and Dewey Lindsey. Helen was the eldest child in her large family with six younger siblings — Edward, Jerry, Fern, Betty, DJ and Steve.

Helen spent her younger years winning dance competitions. She always bragged about being a great dancer. That was something she loved and missed. She also had the privilege of helping her working mom care for her younger siblings. A joy she bragged about until her dying day.

Helen was lucky enough to meet the love of her life Edward Underwood at a very young age. She found and married that man at the young age of 17. That marriage saw her through 61 years of the happiest most loving life. A life filled with cooking, dancing, laughter, hunting, fishing and camping. A life filled to the brim with love.

In those 61 years, Ed and Helen had three beautiful children who became their life — Brenda, Michelle and Edward — along with their son-in-law Martin and daughter-in-law Gina, who they loved and cherished tremendously. Those children gave Ed and Helen nine grandchildren — Cassie, Seymone, Jesika, Taran, Edward, Austin, Hunter, Nicko and Isabella — and 16 great-grandchildren — Mikhail, Desi, Liam, Lincoln, Koda, Henry, Zach, James, Arayla, Elayna, Elijah, Zoe, Payton, Amelia, Aurora and Charlie. A whole empire. There was nothing in this world that made Helen more proud than her grandbabies. She bragged about them to anyone who would listen.

Although in her later years Helen became more of a home body, she relished in the joy her memories gave her. Helen enjoyed nothing more than a vanilla ice cream cone and a drive up the coast with her loving husband.

Helen had a life well lived. She enjoyed a life full of love and laughter. She was an amazing cook and often talked about opening a restaurant one day. Nan was famous for her ocean abalone feeds. She loved cooking for all her family and friends. She had a huge love of playing canasta with family around the dinner table. She had many family card nights filled with laughter and great food she made. Her whole house full of friends and family eating fish, playing games and just enjoying each other.

She was the life of any party and she never minded laughing at herself. Helen (Nan) was full of life. Helen had many life long friends that became family. And a wonderful community that constantly surrounded her with love. She was grateful for all those that shared in the memories she cherished. She had such a will to be here for many more years. She fought so hard. Nan will be missed beyond any measure. Her absence leaves a deep wound in all our hearts.

To celebrate her life we will be having a celebration on August 22 at 2 p.m. at the Rio Dell Fire Hall. We invite any and all people who were impacted by Helen (Nan) to come and celebrate all that she was. She was an incredible woman and we will miss her deeply.

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At last night’s meeting, the Eureka Planning Commission approved the city’s plans to purchase a half-acre lot at Second and A streets in Old Town for a new emergency homeless shelter. The emergency shelter will host up to 40 prefabricated units, as well as bathroom, laundry and meal prep facilities, as well as other supportive services for people experiencing housing insecurity.

The City of Eureka has had its eye on the vacant parcel at 16 Second Street for a while now, but it hasn’t been able to secure the grant funding needed to buy the site. A few years ago, the Betty Kwan Chinn Foundation bought the property for roughly $300,000 and gave the city the right of first refusal, meaning the city will have first dibs on the property when the foundation is ready to sell.

The city has been working with a private donor to purchase the site, but the Betty Kwan Chinn Foundation would still oversee operations at the shelter.

Speaking at last night’s meeting, Commissioner Deborah Dukes asked Eureka City Manager Miles Slattery to explain the advantage of the city owning the site rather than the Betty Kwan Chinn Foundation.

“The donor is interested in putting a long-term deed restriction on it to maintain the property as a shelter/affordable property,” Slattery explained via Zoom. “That’s something that they felt more comfortable with the city having ownership, so that we can assure that that deed restriction can be placed on the property.”

Commissioner Delo Freitas made a motion to approve the property acquisition, which was seconded by Commissioner Dukes. The motion passed in a unanimous 5-0 vote.

Once funding is secured, the Eureka City Council will formally accept the donation and/or grant funds and set parameters for the emergency shelter project.

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A little earlier in the meeting, the planning commission narrowly approved a permit request for five three rental units and two long-term rental units on a single parcel at 1120 J Street in Eureka — but not without some modifications to the original application.

The applicants, Kathleen Stanton and Chris Morse, have been operating five unpermitted vacation rental units (Airbnb, Vrbo, etc.) in a converted Victorian and detached art studio at the J Street property for the last year or so. An application to convert the existing housing units into five vacation rentals was submitted back in 2024, but it was deemed incomplete, and the applicant did not respond to the city’s follow-up request, according to staff.

“During the permitting process, it was discovered that the detached unit was not permitted as a legal dwelling unit, but was being used as a vacation rental. The unit has since been brought up to code and was approved by the building official,” said Taylor Rayburn, an assistant planner with the city. “The applicant has set up a payment plan to repay transient occupancy tax (TOT) owed to the city for prior operation.”

Speaking at last night’s meeting, Stanton apologized for failing to go through the proper channels to get her vacation rentals permitted, claiming she misunderstood the process.

Stanton | Screenshot

“I have two other Airbnbs, one in Arcata and one in the county, and all you have to do is pay your fee, and you’re good to go,” she said, adding that she paid a roughly $1,150 fee for her Eureka rentals compared to $260 in Arcata. “When I got the letter a year later from the planning staff that I was not permitted, it came as a really big shock to me. But thankfully, with staff’s help, we’ve been able to work things out, and we’re now on the right track tonight to hopefully get officially permitted.”

Stanton noted that she and her husband both have backgrounds in historic preservation and had always wanted to remodel a Victorian. 

“We bought the house in March of 2024 and we put $150,000 into it,” she said. “It was a labor of love, but we’re very happy with how the renovation turned out. We think it’s a gift to the street and to the neighborhood.”

One of Stanton’s next-door neighbors urged the commission to approve the permit request during public comment, noting that she’s “never had a problem” with people staying in the rentals. “They’ve been wonderful neighbors,” she said. “When I have friends come to town, I would like them to stay there because it’s beautiful.”

Another neighbor took the opposite stance, expressing concerns that the vacation rentals would take away much-needed housing.

“I don’t believe that changing existing apartments into vacation rental units is good for the city,” she said. “I don’t believe that taking away places within neighborhoods like this from residents and giving them to tourists is appropriate for the life of the city.”

The commission echoed concerns about vacation rentals eating up the city’s affordable housing stock, though they did express appreciation to the applicants for investing in and beautifying the property.

Lazar | Screenshot

Commissioner Steve Lazar took issue with the number of units on site, noting that “this is at least two to three times larger than what we conventionally see” in vacation rental permit applications. Lazar also took issue with the applicant’s claim that she didn’t understand the city’s regulatory process. “These regulations have been in place for a long time by the time this came around, so I am not so sympathetic, frankly.”

The rest of the commission echoed Lazar’s concerns in one way or another, aside from Commissioner Freitas, who didn’t speak up during the discussion. 

“I don’t have a problem with Airbnb units per se, [but] having them in residential areas kind of rubs me the wrong way,” Commissioner Dukes said. “I recognize the support of your neighbor, and I also … worry about taking good housing stock out of what’s a very nice neighborhood.”

After some additional conversation, the commission cobbled together a motion to approve a minor use permit for three vacation rental units at the site, plus two long-term units to provide living quarters for an on-site caretaker. The motion passed 3-2, with commissioners Dukes and Michael Kraft dissenting.

After the vote, city staff addressed Stanton in the audience and said she would have ten days to appeal the commission’s vote to the Eureka City Council. Lazar thanked Stanton and attempted to assure her that the vote was “nothing personal.”

Press release from the Eureka Police Department:

On June 11, 2026, the Eureka Police Department (EPD) responded to a report of fraud. During the investigation, it was determined that several unknown suspects contacted an elderly victim by telephone, falsely claiming to represent the Federal Trade Commission (FTC) and were associated with government agencies. The suspects told the victim that they owed money and threatened arrest if payment was not made immediately.

Believing the claims to be legitimate, the victim complied with the demands and provided a substantial amount of cash to an unknown individual.

The Eureka Police Department would like to remind community members that government agencies will not demand payment over the phone, request cash payments, gift cards, cryptocurrency, or threaten immediate arrest for failure to pay. Scammers often target older adults by creating a sense of urgency and fear in an effort to obtain money or personal information.

If you receive a suspicious phone call:

• Do not provide personal, financial, or banking information.
• Do not send money or make payments to unknown individuals.
• Hang up and independently verify the caller by contacting the agency directly using a publicly listed phone number.
• Consult with a trusted family member or friend before making any financial decisions.

Anyone who believes they may have been the victim of a scam or fraud attempt should contact their local law enforcement agency as soon as possible to file a report. Reporting these incidents helps investigators identify patterns, track suspects, and educate the public about emerging scams. By remaining vigilant and reporting suspicious activity, community members can help protect themselves and others from becoming victims of fraud.

CORRECTION: The District Attorney’s Office has corrected the convicted man’s age.

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Press release from the District Attorney’s Office:

Today, Judge John Feeney sentenced Trinidad Cortez Gomez (38 47) of McKinleyville, to serve 8 years in prison after being convicted by a Humboldt County jury on June 2 of two felony counts of child sexual abuse of a girl in her early adolescence.

Gomez molested the young girl on one occasion in his home and another in his car. The child disclosed the abuse to her mother, who did not report it to police. The Humboldt County Sheriff’s Office began to investigate after receiving a cross report from Child Welfare Services. The child participated in a CAST interview and disclosed what Gomez had done.

During the trial, jurors heard testimony from District Attorney Investigator Ryan Hill, describing cell phone evidence, which revealed Gomez seeking out sexual contact with the minor victim. Gomez testified that he had worked as a local school employee for seventeen years. While testifying, Gomez admitted to masturbating while working at a school multiple times.

The case was prosecuted by Senior Deputy District Attorney Whitney Timm with assistance from District Attorney Investigator Ryan Hill, and District Attorney Victim Witness Advocate Keosha Chambers. Local attorney Owen Tipps defended Gomez.

District Attorney Stacey Eads stated, “Justice has been served thanks to the strength and bravery of a teenage girl.”

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“Disclosure Day,” Steven Spielberg’s latest sci-fi epic, is poised to be one of the summer’s biggest blockbusters when it opens nationwide tomorrow, and yet it won’t be showing at Eureka’s Broadway Cinema. 

Actress Emily Blunt on the poster for “Disclosure Day.”

Nor will it be shown on opening weekend in any of the 14 other theaters owned by the Coming Attractions Cinema, the Ashland, Ore.-based chain with locations in California, Oregon, Washington and Alaska.

Why not? Company reps didn’t offer a clear explanation when contacted by the Outpost except to say that the decision stems from a disagreement with Universal Pictures, the Hollywood studio distributing the film.  

When we reached Coming Attractions Sales and Marketing Director Kim Neufeld by phone this morning and asked about the absence of “Disclosure Day” in the online list of movies showing tomorrow, she put us on hold for a few minutes before coming back on to say she needed time to look into it and would call back.

Instead, she emailed a bit later, saying, “After lengthy discussions with the studio, we have chosen not to play Disclosure Day at this time.” She encouraged people to check the theater’s website for weekly updates to movie listings and upcoming releases.

We emailed back to request more details — including whether this beef with the studio means Coming Attractions theaters will not be showing other upcoming Universal-distributed films such as “Monsters and Minions” and Christopher Nolan’s “The Odyssey” — but we have yet to hear back. 

The Outpost also left a message via a receptionist for Jim Orr, Universal Pictures’ president of domestic theatrical distribution. We’ll update this post if he gets back to us.

Meanwhile, Arcata’s Minor Theatre had no trouble booking “Disclosure Day” for opening weekend, according to owner Josh Neff. 

“We used the same booking reps like everyone else,” Neff said, adding that he was unaware of any anomalies with the film’s distribution.

Movie theaters suffered major economic losses during the COVID pandemic, and in the years since, Coming Attractions permanently closed several of its locations, including Mill Creek Cinema in McKinleyville. However, box office returns have rebounded in 2026 thanks to a string of hits. 

One of those blockbusters is “Obsession,” a small-budget horror film that has broken multiple box office records, raking in $224 million and counting. But none of those dollars came from Coming Attractions locations., because “Obsession” hasn’t shown at any of them. The movie is distributed by Focus Features, which is owned by Comcast as a unit of (you guessed it) Universal Pictures. 

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Press release from the Humboldt County Sheriff’s Office:

On June 10, 2026, Deputies with the Humboldt County Sheriff’s Office Problem Oriented Policing (P.O.P.) Team, with the assistance of the Humboldt County Drug Task Force, served a search warrant near the 500 block of Silva Ave in Eureka Ca. This was a part of a month-long investigation into a drug residence which began after receiving numerous community complaints regarding suspicious drug activity.  

Upon arrival at the residence, deputies located 8 individuals inside the residence. As a result of this investigation, it was determined that all 8 subjects were in violation of a litany of drug-related charges. The following people were arrested:

• Tessa Bennett, age 47 of Eureka. Booked on multiple misdemeanor warrants and H&S 11365(a), visiting a drug residence.
• Renee Norman, age 42 of Eureka. Booked on H&S 11365(a), visiting a drug residence.
• Liesel Norman, age 41 of Eureka. Booked on H&S 11365(a), visiting a drug residence and PC 1203.3, formal probation violation.
• Marcie Harris, age 56 of Eureka. Booked on H&S 11365(a), visiting a drug residence.
• Jonathan David, age 51 of Eureka. Booked H&S 11365(a), visiting a drug residence.
• Jeffrey Thomsen, age 47 of Eureka. Booked on felony warrant and H&S 11365(a), visiting a drug residence.
• Aaron Nelson, age 63 of Eureka. Booked on H&S 11378, possession of methamphetamine for sales and H&S 11366, maintaining a drug residence.
• Kerry Duggan, age 61 of Eureka. Booked on H&S 11366, maintaining a drug residence.

During the service of the search warrant, deputies seized approximately one ounce of methamphetamine, scales, and a large quantity of drug paraphernalia.

Anyone with information about this case or related criminal activity is encouraged to call the Humboldt County Sheriff’s Office at (707) 445-7251 or the Sheriff’s Office Crime Tip line at (707) 268-2539.