Newsom Signs Watered-Down Oil Profit Penalty
Alexei Koseff / Wednesday, March 29, 2023 @ 7:41 a.m. / Sacramento
Gov. Gavin Newsom speaks at an event before signing into law his oil profit penalty plan in Sacramento on March 28, 2023. Photo by Miguel Gutierrez Jr. , CalMatters
For six months, Gov. Gavin Newsom waged a highly public battle against the oil industry, accusing companies of fleecing Californians as gasoline prices soared to record levels last year and urging lawmakers to claw back the excess profits to return to taxpayers.
Yesterday, he finally got to take a victory lap, as he signed a first-in-the-nation law that could lead to a cap on earnings for oil refiners.
“We proved we can actually beat Big Oil,” Newsom said during a ceremony under the state Capitol rotunda.
But the measure Newsom signed is still a far cry from what he initially suggested in the fall, reflecting the political perils inherent in taking on an industry that may be a major villain for liberals but also provides a product used daily by millions of Californians.
Nor is this particular showdown likely over.
A representative for the oil industry, which fiercely fought the governor’s efforts, said refiners who operate in the state will closely monitor the development of regulations under the law and whether the Legislature pursues additional bills to address their lingering concerns before deciding whether to mount a legal challenge.
“Then we’ll have a better sense of, will this work, and do we need to step in?” said Kevin Slagle, a spokesperson for the Western States Petroleum Association.
Newsom set off a frenzy at the end of September, as the average price of gas at the pump surged past $6 past per gallon, when he called for a windfall tax on oil company profits, an idea favored by progressives that has never gained traction at the Capitol. Within a week, he announced that he would open a special legislative session later in the year to push for the proposal, using a penalty on excess profits to fund a rebate for taxpayers.
At issue were California’s retail gasoline prices, which are not only expensive, but far more expensive than the rest of the country — by last fall, the gap had grown to more than $2.60 per gallon higher than the national average, an ignominious record. The oil industry says this is caused by greater taxes and regulations in the state, but Newsom argued that greedy companies were taking advantage of global shortages.
Though many legislators agreed with the governor’s assessment that taxes and regulations alone could not explain the steep prices their constituents were paying, his initial plan — to set a cap on refiner profits and fine those who exceeded the threshold — stalled for months at the Capitol without action. Even Democratic allies feared that, without more information, they might unintentionally create a disincentive for gasoline production, further constraining supply and leading to even higher costs for drivers.
The compromise, unveiled less than two weeks ago, shifts the process to state regulators. Oil refiners will be required to report additional data about their operations and a new watchdog division of the California Energy Commission will investigate alleged price gouging by the industry. That could inform the commission to establish a profit threshold above which companies would be assessed a financial penalty, though the rule-making process is merely authorized by the new law, not mandated.
Legislative Democrats raced over the past week to pass the proposal before they leave town at the end of the month for their spring recess, earning howls of disapproval from the oil industry and Republican lawmakers, who argued that the rushed timeline did not allow them to fully vet potential unintended consequences of the bill. Because it was passed through a special session, which the Legislature closed on Monday after a final vote in the Assembly, the law takes effect in 90 days.
Slagle of the Western States Petroleum Association said oil refiners take issue with the amount of data they will be required to report, the lack of privacy safeguards for that sensitive information and a provision of the bill that they contend would allow the state to interfere with their maintenance schedules.
If those points are not resolved in follow-up legislation, Slagle said the industry could potentially sue over the law. An unfavorable profit cap rule developed by the California Energy Commission would also be ripe for a legal challenge.
“We’re concerned about how that all turns out,” Slagle said. But, he added, with this heavily politicized clash at the Capitol now over, “We’re hopeful that we can shift to having a conversation about the real issue here, which is the supply of fuels.”
###
CalMatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.
BOOKED
Yesterday: 13 felonies, 12 misdemeanors, 0 infractions
JUDGED
Humboldt County Superior Court Calendar: Yesterday
CHP REPORTS
No current incidents
ELSEWHERE
RHBB: Celebrate With a Low-Waste Halloween
Governor’s Office: Governor Newsom announces appointments 10.24.25
RHBB: Alaska Airlines Announces Nonstop Flights Between Humboldt and Seattle Starting Next Year
OBITUARY: Mark William Dusel, 1954-2023
LoCO Staff / Wednesday, March 29, 2023 @ 6:56 a.m. / Obits
Mark William Dusel was a kind, caring, skilled, charismatic man. He was survived by his
wife, Julie; son, Matt; granddaughters Jaida and Ramona and their mother, Jessica
Dora. Mark had a twinkle in his eye and brilliance between his ears that captivated all of
us whenever in his presence. His attention to detail was impeccable. Mark was an
incredibly hard worker, fascinated with the natural world, ready for adventure, and tough
as nails. He was a supremely talented man. Mark was born on December 21, 1954 and
passed away on March 4, 2023 after a short battle with blood cancer and related
complications.
Mark worked for CK Johnson’s industrial steel fabrication company for almost 40 years, which had become a second family to him. His expertise with steel was unparalleled. Mark could shape steel like a blade of grass. He could form, bend and plasma-cut steel with unbelievable accuracy and precision. All of his knowledge, skills, experience, and follow through made him a vital leader for CK Johnson and a key ingredient to the success of the company. Mark highly valued the loyalty and quality of his employer.
In his spare time at home, Mark worked hard to perfect the paradise he and his wife created and called home. Years ago, Mark and Julie bought land and built a small studio above a workshop. For five years, he and his wife lived together in the studio as they prepared to build their main house, Mark’s dream. Through hard work and dedication, the time came when Mark was ready to build. He worked day and night to create a beautiful custom home from the ground up, with his ability and bare hands. This beautiful land is called Cedar Hill, situated in the hills and redwoods of Blue Lake, overlooking the Mad River. In his final weeks, he continued to build a gorgeous wrap-around deck that matched the vision he always had.
Mark was very close to his family. He was the youngest of five children. He and his brothers, Jim and John; and sisters, Christine and Julie; grew up together in the Sacramento area and remained close throughout the years. Mark’s parents, Clarice Wilford and John Dusel were both fine educators and paved the way in shaping Mark and his siblings into outstanding humans. Clarice taught English in Japan and John was a professor at Stanford.
Mark could build, fix or engineer anything. His son Matt recalls calling his Dad anytime he experienced a challenge with home ownership. Mark always had the right answer and was always there to help. Mark was also a skilled gardener and he and Julie enjoyed their time together growing food in their own garden on Cedar Hill, and being rewarded for what they sowed.
There are three creatures special to Mark that also live on Cedar Hill. Cedar, Wiley and Ollie are Mark and Julie’s cats and he loved them dearly. Mark and Julie always had cats as pets together, going back to when they lived on Crane street in Eureka when Matt was just a young boy.
Mark accomplished his dream by building his own private paradise for his beloved wife, son and granddaughters. He will always be there in spirit to experience the love and joy that he graciously created.
A celebration of life will be held at a later date.
###
The obituary above was submitted on behalf of Mark Dusel’s loved ones. The Lost Coast Outpost runs obituaries of Humboldt County residents at no charge. See guidelines here. Email news@lostcoastoutpost.com.
HUMBOLDT TODAY with John Kennedy O’Connor | March 28, 2023
LoCO Staff / Tuesday, March 28, 2023 @ 4:50 p.m. / Humboldt Today
HUMBOLDT TODAY: How about that wind, eh? Humboldt awoke to the realization there were fences that needed fixin’; Drug-sniffing dogs from Pelican Bay are being deployed into classrooms; plus, the Elks Lodge dished out some fabulous titles to its favored members! Details in today’s newscast with John Kennedy O’Connor.
FURTHER READING:
- The Sewage Overfloweth in Eureka and Rio Dell Once Again, Due to Heavy Rains
- Arcata’s New Open Door Health Center Will Open This Fall, Replacing the Two Old Clinics in Town
- Highway 101 Closed North of Laytonville and Highway 36 in Trinity County Closed Due to Weather (UPDATE: 101 Reopened)
- CONVERSATIONS: How is Eureka Trying to Put People to Work? Sierra Wood of the City’s ‘Pathway to Payday’ Program Tells Us All About It
HUMBOLDT TODAY can be viewed on LoCO’s homepage each night starting at 6 p.m.
Want to LISTEN to HUMBOLDT TODAY? Subscribe to the podcast version here.
Cal Poly Humboldt Investigating Its Men’s Basketball Program Following Reports of Mistreatment
Ryan Burns / Tuesday, March 28, 2023 @ 4:31 p.m. / Cal Poly Humboldt
Cal Poly Humboldt men’s basketball head coach Tae Norwood. | Screenshot from Cal Poly Humboldt Athletics video.
###
On Saturday, the Times-Standard published the first in a series of investigative stories from reporter Jake Matson chronicling allegations of abuse within Cal Poly Humboldt’s intercollegiate men’s basketball team.
The piece is well worth a read! Matson quotes several members of the team who say they were misled during recruiting, repeatedly subjected to verbal and emotional abuse from head coach Tae Norwood and made to practice for up to six hours per day, in violation of NCAA rules.
“Multiple players stated their mental health deteriorated over the course of the season, including two players who specifically stated they struggled with thoughts of suicide,” Matson reports.
Today the university released a statement saying it has “broadened” its investigation into reports of mistreatment, which obviously suggests that an inquiry was already under way prior to Saturday. The statement also says an outside firm has been hired to conduct an independent investigation.
Here’s the full statement:
Cal Poly Humboldt has broadened its investigation into reports of mistreatment of players as well as other misconduct within its intercollegiate men’s basketball program.
In addition to the inquiries being conducted by a number of campus units, including Intercollegiate Athletics, an outside firm is being retained to carry out an independent investigation.
While the length of these investigations cannot be known for certain, the University is committed to completing them quickly while also ensuring a comprehensive examination of issues that have been raised.
The well-being of the student-athletes is, as always, the top priority. All of the basketball student-athletes will continue to receive the full range of services and support they have been receiving within Intercollegiate Athletics and the University as a whole.
Any student-athlete seeking additional assistance is encouraged to contact the main Intercollegiate Athletics Office, speak to the Faculty Athletics Representative, or contact the Dean of Students Office. They may also access any of the range of support services across campus.
Lumberjack Basketball has a strong history of success in the classroom, on the court, and in the community. A focus on the well-being and development of the student-athletes has been a big part of that, and Cal Poly Humboldt is committed to continuing the legacy.
Cal Poly Humboldt values and supports all students, faculty, and staff, and seeks to maintain a positive learning environment for all. Numerous resources are available for reporting misconduct and for seeking support, including those listed below:
Reports of Title IX are handled using a process described here.
To report Title IX issues:
- Contact the Title IX Office at 707-826-5177, or
- File a report online at this link: https://hsu.link/TitleIXReport, or
- Complete this Formal Complaint Form and email to the Title IX and DHR Prevention Office: https://hsu.link/TitleIXFormalComplaint.
To talk with a confidential resource:
- Campus Advocate Team (CAT) 24-Hour Hotline: (707) 445-2881 Campus Advocate Team Website
- North Coast Rape Crisis Team 24-Hour hotline: (707) 445-2881 NCRCT Website
- Humboldt Domestic Violence Services 24-Hour Hotline: (707) 443-6042 HDVS Website
- Counseling & Psychological Services (CAPS) 24-Hour Phone: (707) 826-3236 CAPS Website
The Sewage Overfloweth in Eureka and Rio Dell Once Again, Due to Heavy Rains
Hank Sims / Tuesday, March 28, 2023 @ 2:23 p.m. / Environment
Once again, as happens every winter — or every winter that has rain, anyway — our Humboldt County municipal wastewater systems have been pushed to the brink.
The rain gauge in Arcata registered nearly three-quarters of an inch between 11 a.m. yesterday and 11 a.m. today, with about two-thirds of that coming in the wee hours of this morning.
So: The sewage releases. Rio Dell was first to report, this morning, that at least 1,000 gallons had escaped from an overflowing manhole on Painter Street, near the banks of the Eel, impacting the waterway. It was not recovered.
Kyle Knopp, Rio Dell city manager, told the Outpost this afternoon that “sewage,” in the common understanding of the word isn’t exactly what we’re talking about, here. The problem that the city is facing is an old set of pipes running all around town that were further damaged by the December earthquake. When the rains fall, way too much water is seeping into the sewage system, overloading capacity. When it’s flushed out like this, the stuff that’s released is extremely dilute.
“We have a modern, state-of-the-art treatment plant, but the problem is getting all of this what is essentially stormwater into the plant,” Knopp said.
It’s not a cheap or easy problem to fix, Knopp said, but the city’s gearing up to apply for a bunch of grants to begin work on the problem — a problem, judging from Knopp’s normally chipper voice, that city staff is extremely sick of dealing with.
It’s much the same up in Eureka, where city recently placed the burden of replacing the thousands of ancient, porous and often leaky sewage laterals on homeowners. But the work is very far from done, and rainwater overloads the system all too often. This morning a failure at a lift station prompted 3,000 gallons of sewage to be set free into the environment. A thousand gallons of wastewater were recovered, according to the city’s report to the California Office of Emergency Services, but about 2,000 were liberated permanently. Humboldt Bay was affected by the spill.
City of Eureka Public Works director told the Outpost this afternoon that the problem, in this case, wasn’t completely down to the storm surge — in addition, there was a possibly unrelated equipment failure at this particular lift station, which is down near Halvorsen Park. They’re still investigating why that was.
As with Rio Dell, Gerving said, the massive influx of stormwater into the system during these storms meant that the sewage released was quite dilute. He said that during storm events the city’s sewage treatment plant normally receives five times the volume that it does during dry days. And the city is likewise upgrading its creaky old infrastructure, but it’s a big job and slow-going.
Gerving said that this morning the city made all the proper notifications as regards the bay’s oyster fishery, but it’s currently unknown whether the release affected oyster farming on the bay.
As a reminder: Hazmat enthusiasts can follow along in near-real time with all the stuff being released into our environment — or at least all the stuff that’s reported — at the LoCO’s Hazmat Incidents page.
Arcata’s New Open Door Health Center Will Open This Fall, Replacing the Two Old Clinics in Town
Stephanie McGeary / Tuesday, March 28, 2023 @ 1:56 p.m. / Health
Rendering of the front of the new Open Door Health Center in Arcata | Image from Open Door Community Health
###
Arcata’s new Open Door Community Health Center – that big ol’ building under construction on the corner of Foster and Sunset – is almost complete and, if everything goes as planned, should be opening its doors to patients this fall.
Open Door announced plans for the project in the summer of 2019, with a plan to open by 2022. But when COVID struck in 2020, the project had to be delayed. The crew finally broke ground in 2021 and Cheyenne Spetzler, Open Door’s senior vice president of development, told the Outpost that since then development has remained pretty on schedule.
“I just have to say that Pacific Builders, those folks are my heroes,” Spetzler said in a phone interview on Monday afternoon. “Because every time there’s a problem, they just figure out a way to keep moving.”
At this point, nearly all of the most time-consuming infrastructure – the plumbing, electrical, and the heating, ventilation and air conditioning (HVAC) systems – have been installed, and the sheetrock has all been put in, too. Spetzler said that one of the main delays with construction has been getting the windows put in, because of supply chain issues. Right now the crews are still waiting on the windows, which are being delivered about four months behind schedule. But Spetzler said that even with the delay, the timeline for the project hasn’t been impacted very much.
The only potential delay that Spetzler is slightly concerned about is with the licensing from the California Department of Public Health. Once the building is complete and has passed inspection, Open Door will need to submit their licensing packet, and sometimes the state will take months to process it. But assuming everything goes smoothly, Spetzler thinks the facility will open its door in October.
To run the new clinic, operations from the two existing Open Door centers in Arcata – Humboldt Open Door on 10th Street and NorthCountry Clinic on 18th Street – will be moved to the new facility, and the other two sites will be closed. Spetzler said that consolidating the two clinics will make things more streamlined for both Open Door staff and patients, who often have to go back and forth between the clinics for care. Also, both of those buildings were very old, and if something disastrous were to happen the Clinic has no other space where it could offer services in Arcata.
The health center building currently under construction, seen from Foster
“The rationale for the new building is the precarious nature of the old facilities that we operate in.” Spetzler said. “Neither building was ever meant to be a clinic. And we did what we could to make them into clinics, with lots of exam rooms and funky offices and everything. But there were two front desks, two labs, two medical records departments and two call departments … . It’s not efficient.”
With more efficient operations, the new facility will require less staff than the two clinics. But this doesn’t mean there will need to be layoffs. Open Door has a pretty high turnover in some staffing areas and is often operating with staffing shortages. Spetzler said that any staff from the two Arcata clinics who are not placed at the new facility will likely be able to transfer to one of Open Door’s other locations around the county.
The new building is much bigger than the existing Arcata locations, totaling 34,000 square feet in size, which is 1,000 square feet larger than the two clinics combined. The space will hold 34 exam rooms, which is one more than the other clinics combined. With a little more space, new facilities and equipment and a more efficient workflow, the new clinic should be able to accommodate a higher number of patients and annual visits. However, the difference is not huge. Open Door estimates that the new clinic can accommodate about 14,000 patients, compared to 13,396 seen by the Arcata clinics now. Visits are also expected to increase from 43,306 from 44,000 annually.
If you are an Open Door patient, then you might already know that parking can be an issue at the other Arcata clinics, with each only holding 10 on-site parking spaces. The new clinic has close to 100 parking spaces, some of which have charging stations for electric vehicles, Spetzler said.
Of course, as with all new developments in Arcata, the City wants the facility to discourage driving cars and encourage other forms of transportation. Spetzler said that employees will be offered incentives for taking other forms of transportation, including free bus passes and possibly cash bonuses for not driving their cars.
Another feature of the new clinic is a gym for the employees, with showers and a changing room. Spetzler said this was something that many staff members said they would like, so that they don’t have to leave the building to work out. The availability of showers and changing rooms will also help encourage employees to ride their bikes to work, if they are able, because they will be able to clean up and change into work clothes after they arrive.
The new building also is equipped with solar panels and will have backup generators. This means that in the event of major power outages, the clinic will be able to serve as an emergency center, providing community members with a place to charge their devices, fill up on clean water, etc.
Though most of the services provided by the clinic will remain the same, Spetzler said that there will be an expansion of behavioral health care, including things like mental health and substance use counseling. Thanks to some funding provided by the Vesper Society in San Francisco, Spetzler said that Open Door will be focusing on providing more of these services, especially for families.
Spetzler said that with the new clinic, Open Door is also working toward expanding other services and programs, such as residency programs for nurse practitioners, in the future. She is very excited for the new clinic to open and wanted to thank the City of Arcata and the community for their support.
“We had these neighborhood meetings and we definitely listened to what the neighbors asked for and we haven’t had almost any complaints,” Spetzler said. “There’s actually been a pretty impressive lack of complaints from the neighborhood, considering we’re building this huge thing.”
###
PREVIOUSLY:
- NEW CLINIC COMING! Open Door Planning Big, Modern Arcata Medical Center to Replace Old Facilities Downtown and in Northtown
- Planning Commission Delays New Arcata Health Center Project Recommendation After Wiyot Tribe Requests Additional Archeological Survey
- New Arcata Clinic Back on Track: The City Has Reached an Agreement With Tribal Historians, and the Project Will Again Go Before the Planning Commission Tonight
Highway 101 Closed North of Laytonville and Highway 36 in Trinity County Closed Due to Weather (UPDATE: 101 Reopened)
LoCO Staff / Tuesday, March 28, 2023 @ 10:44 a.m. / Traffic
This morning Caltrans is reporting a couple of highway closures due to winter weather.
Firstly, and probably more importantly for most, Highway 101 is closed just north of Laytonville due to snow on the road.
Here’s District 1’s Facebook post on the matter:
The closure is between Ten Mile Creek Road and Bell Springs road. Caltrans doesn’t have an estimated time of reopening yet.
Check the map below: If you don’t see a big red STOP sign in the middle when you read this, that means it’s been at least partially reopened.
Likewise, winter conditions have closed 36 in Trinity County between the intersection with Route 3 and the town of Platina. Same deal: If you don’t see the red STOP sign in the map below when you read this, then Caltrans is reporting the road reopened.
