California Policy and Politics Friday

How the spike in gas prices is jolting California’s giant economy -- Gas prices surge to nearly $5.50 a gallon amid the Iran war, draining California drivers’ disposable incomes and increasing business operating costs statewide. Agricultural and logistics industries absorb soaring diesel costs, with shipping expenses doubling at L.A. and Long Beach ports supporting more than 200,000 jobs. Laurence Darmiento in the Los Angeles Times$ -- 3/13/26

Gavin Newsom wants to hand Donald Trump his gasoline price problem -- The war in Iran has given the governor an opportunity to shift focus away from refineries idling. He’s taking it. Noah Baustin Politico -- 3/13/26

California passed a law to curb spikes in gas prices. Why isn’t it using those powers now? -- California built a first-in-the-nation system to police refinery profits during price spikes. Regulators delayed it for five years. Gasoline has surged to record highs as global oil markets spike amid the Iran war. The spike exposes a deeper problem: fewer refineries and limited California fuel supply. Alejandro Lazo Calmatters -- 3/13/26

Trump Administration Sues California in Bid to Nix Car Pollutant Rules -- The lawsuit, filed Thursday by the Justice and Transportation departments, targets the California Air Resources Board over its standards for limiting pollutants from light-duty vehicle tailpipes. The suit also takes issue with the state’s efforts to boost production of zero-emission vehicles. Clara Hudson in the Wall Street Journal$ Blanca Begert in the Los Angeles Times$ -- 3/13/26

Dem House members say they’re in the dark about potential Iran threats to California -- The Trump administration is keeping Congress in the dark about the war in Iran and potential threats to California, Democratic members of the House Homeland Security Committee said Thursday. Sara DiNatale in the San Francisco Chronicle$ -- 3/13/26

California sues over Trump demand for college race, test score and GPA admissions data -- California and 16 Democratic states are suing to challenge a Trump administration policy requiring higher education institutions, including University of California and California State University campuses, to collect data — including student grade-point averages — to prove they don’t illegally consider race in admissions. Jaweed Kaleem and Michael Casey in the Los Angeles Times$ -- 3/13/26

Poll: California Democrats want to disband ICE -- California Democrats overwhelmingly want to dismantle Immigration and Customs Enforcement amid backlash to Donald Trump’s mass deportation campaign, according to a new poll by Politico and its partners. Jeremy B. White Politico -- 3/13/26

California attorney general vows to scrutinize Paramount’s deal for Warner Bros. Discovery -- California Atty. Gen. Rob Bonta called out the federal government for largely vacating its role as antitrust regulator, saying it’s now up to California and other states to look out for consumers’ interests. Meg James in the Los Angeles Times$ -- 3/13/26

S.F. public defender held in contempt for refusing cases. He’s not backing down -- San Francisco Public Defender Mano Raju said Thursday he plans to continue to turn down some criminal cases even after a judge found him in contempt. San Francisco Superior Court Judge Harry Dorfman's ruling Tuesday marked the latest fallout from a rare institutional clash over Raju's stance. David Hernandez in the San Francisco Chronicle$ -- 3/13/26

Legislators reject Flock’s first political donations in California -- Campaign representatives for two Democratic lawmakers said they'd return the money amid concerns that Flock’s data could be accessed by ICE investigators. Christine Mui and Tyler Katzenberger Politico -- 3/13/26

Investors are pouring back into Bay Area real estate, new report says -- Real estate investors are betting big on the West Coast, according to a new report from Redfin, and homebuyers are snatching up more properties as investments in California than they did last year. Tessa McLean SFGate -- 3/13/26

Walters: Real journalism tells real stories, not YouTube fables to solicit money -- YouTube and other internet media sites are loaded with videos in which self-proclaimed truth tellers claim to have uncovered some startling facts that mainstream journalists have either ignored or purposely hidden. Dan Walters Calmatters -- 3/13/26

Street

Before deadly Davis e-bike crash, California lawmakers began pushing for regulations -- Seven bills making their way through the Legislature would change rules for e-bikes and e-motos. A handful of the bills came in response to a report released by the Mineta Transportation Institute in San Jose that identified potential loopholes in existing law. Daniel Hennessy KVIE Abridged -- 03/13/26

Workplace

Oscars walks political tightrope as poll shows Californians wary of Hollywood’s influence -- Even in California, just 29 percent of voters say Hollywood has a positive impact on American culture, according to a new poll by Politico and its partners. Daniel Miller Politico -- 3/13/26

Atlanta’s ‘Hollywood of the South’ fades as film production plummets -- Chris Ratledge used to make as much as $9,500 a week working on film sets around Atlanta. Now, he’s on food stamps. R.J. Rico Associated Press -- 3/13/26

Defense contractor lays off 758 California workers in one of state’s biggest job losses in years -- Major defense contractor KBR Services LLC is laying off 758 California workers at Fort Irwin, a U.S. army training center in the Mojave Desert, in one of the state’s biggest job cuts in recent years. Roland Li in the San Francisco Chronicle$ -- 3/13/26

Striking unions unite for capital march, call for CA education funding increase -- Hundreds of striking Sacramento-area educators and their supporters from two school districts converged Thursday morning to call on local leaders to meet their demands for pay raises, improved health care coverage and staffing increases. Jennah Pendleton in the Sacramento Bee$ -- 3/13/26

Water

Conserve water? Your bill is about to go up — while your water-guzzling neighbor’s goes down -- Recent court rulings on tiered water rates are creating confusion and uncertainty at water agencies across California — including in San Diego, where one of the rulings will mean rate hikes for most single-family homes. David Garrick in the San Diego Union Tribune -- 3/13/26

California’s ‘unprecedented’ snowmelt will only get worse from heat wave -- Three weeks after Tahoe’s biggest snowstorm in decades, Donner Summit has as much dirt as snow. Anthony Edwards in the San Francisco Chronicle$ -- 3/13/26

LA28

Advocates concerned city has not reviewed LA28 plan for homelessness, human trafficking -- A report on how Olympic organizers will tackle civil rights, homelessness and human trafficking ahead and during the 2028 Games has not been made public by the city more than two months after it was filed and no date for its release has been set, leaving human rights advocates fearing the issues will not get the attention and funding they deserve. Kevin Baxter in the Los Angeles Times$ -- 3/13/26

Develop

San Jose bet its future on a Google megacampus downtown. Now the land sits mostly empty -- The $19 billion Downtown West project promised jobs, housing and a new skyline. A decade later, San Jose has little power to make it happen. Julia Prodis Sulek in the San Jose Mercury$ -- 3/13/26

Housing

Federal judge sides with San Diego affordable housing law -- The dismissal of a legal challenge upholds a city policy requiring developers either to build affordable units or pay fees that fund housing programs. Kelly Davis in the San Diego Union Tribune -- 3/13/26

Environment

H5N1 bird flu spreads to sea otters and sea lions along San Mateo coast, wildlife experts say -- Researchers say the H5N1 bird flu outbreak in California elephant seals has spread to other marine mammals, including a sea otter and sea lion. However, wildlife officials are cautiously optimistic the outbreak will remain contained. It has so far only been detected on beaches in San Mateo County, although testing is being conducted along the coastline. Susanne Rust in the Los Angeles Times$ Paul Rogers in the San Jose Mercury$ -- 3/13/26

Also

Sony’s new $100,000 EV is part car, part gadget, part gamble -- Sony and Honda are launching a luxury EV brand called Afeela, available exclusively in California with deliveries starting at the end of the year. The debut comes as government incentives for EVs fade and rival high-end EVs such as Lucid struggle to gain traction. The Afeela 1 has 28 speakers, wraparound screens, an AI assistant and gaming capabilities. Caroline Petrow-Cohen in the Los Angeles Times$ -- 3/13/26

Iconic Malibu restaurant poised to reopen 14 months after Palisades fire -- Duke’s, a legendary seaside restaurant on PCH, has remained closed for over a year following heavy mudslides after the Palisades fire. The restaurant had laid off 126 employees as it focused on extensive repairs. Angela Osorio in the Los Angeles Times$ -- 3/13/26

POTUS 47

Pentagon Sends Marine Expeditionary Unit to Middle East -- The Pentagon is moving a Marine expeditionary unit to the Middle East, as Iran steps up its attacks on the Strait of Hormuz, according to two U.S. officials. Defense Secretary Pete Hegseth has approved a request from U.S. Central Command, responsible for American forces in the Middle East, for the expeditionary unit, typically consisting of up to 2,500 Marines, the officials said. Lara Seligman in the Wall Street Journal$ Greg Jaffe in the New York Times$ -- 3/13/26

How Iran’s Naval Mines Work -- Some float on the surface. Some rest on the seafloor. All could further complicate efforts to restart shipping in the Persian Gulf. Samuel Granados, John Ismay and Agnes Chang in the New York Times$ -- 3/13/26

6 dead after U.S. Air Force refueler crashes in Iraq while supporting Iran war -- The KC-135 tanker was involved in an apparent accident with another KC-135. The other aircraft landed safely, officials said. Tara Copp, Alex Horton and Evan Hill in the Washington Post$ -- 3/13/26

U.S. is in the dark on Mojtaba Khamenei’s views on the bomb -- Khamenei’s first public statement made no mention of Iran’s nuclear program. President Trump has outlined the destruction of Iran’s nuclear capabilities as a major goal. Michael Wilner in the Los Angeles Times$ -- 3/13/26

New Iranian leader Khamenei vows ‘never ending’ revenge in first public statement -- Iran’s new supreme leader, Ayatollah Mojtaba Khamenei, vowed retaliation Thursday against the United States and Israel and signaled that Tehran will continue to choke off the world’s most crucial oil route, as the war strained global energy markets and deepened the humanitarian crisis across the region. Gavin J. Quinton in the Los Angeles Times$ -- 3/13/26

Pentagon: First week of Iran war cost about $11B -- The U.S. spent about $11 billion last week on the Iran war, a Pentagon official said Thursday, offering the first public estimate of the conflict’s cost — and one Democratic lawmakers insist is much higher. Leo Shane III and Joe Gould Politico -- 3/13/26

Weakened by War, Iran Hits Back by Strangling a Vital Waterway -- The Iranian tactics have forced the United States to prepare to provide naval escorts for shipping traffic through the strait and to plan for anti-mine operations even as American forces target what is left of the Iranian navy, including Iranian mine-laying vessels. Anton Troianovski, Peter Eavis, Julian E. Barnes and Greg Jaffe in the New York Times$ -- 3/13/26

16 and Counting: Oil and Cargo Ships Are Growing Targets in War With Iran -- On Thursday, two Iraqi tankers were ablaze at sea, some of the latest visible examples of how attacks have increasingly focused on oil and energy infrastructure as the war has sprawled. Blacki Migliozzi, Lazaro Gamio and Christiaan Triebert in the New York Times$ -- 3/13/26

Emboldened by Oil Shock, Iran’s Leaders Play Diplomatic Hardball -- Arab diplomats trying to find a diplomatic path out of the war now being waged by the U.S. and Israel against Iran say Tehran, emboldened by its ability to rattle the global economy by choking oil shipments, has laid out steep preconditions for any return to talks. Summer Said and Benoit Faucon in the Wall Street Journal$ -- 3/13/26

Oil Markets Brace for Lasting Turmoil in the Gulf -- When the U.S. and Israel first attacked Iran, some traders initially expected days of disorder. Now they are expecting the turmoil to last weeks or even months. Rebecca Feng in the Wall Street Journal$ Scott Waldman Politico -- 3/13/26

Democrats are trouncing Republicans in state elections since Trump took office -- A blue wave may already be cresting. Democrats have flipped 28 Republican-held seats in state legislatures across the country over the past 14 months, a sign that the GOP is indeed at risk of losing control of the House, and maybe even the Senate, in the midterms. Natalie Fertig Politico -- 3/13/26

Economy was shakier than it appeared heading into Iran conflict -- Inflation remained elevated in January, and economic growth from October through December was sharply lower than initially reported. Andrew Ackerman in the Washington Post$ -- 3/13/26

China’s ByteDance Gets Access to Top Nvidia AI Chips -- TikTok parent, pushing global expansion, plans to tap Blackwell processors that are barred for export to China. Jon Emont and Liza Lin in the Wall Street Journal$ -- 3/13/26