diff --git a/.gitignore b/.gitignore
index e98ece7..a0586fa 100644
--- a/.gitignore
+++ b/.gitignore
@@ -6,3 +6,4 @@ __pycache__/
 .venv/
 .DS_Store
 frontend/dist/
+.env
diff --git a/README.md b/README.md
index 260aa3d..e5b0539 100644
--- a/README.md
+++ b/README.md
@@ -34,7 +34,7 @@ fully offline and local; the only optional cloud piece is moment classification.
 | **ffmpeg** / **ffprobe** on `PATH` | yes | audio extraction, frame sampling, clip cutting |
 | **Node 18+** | yes | frontend (Vite + Three.js) |
 | **COLMAP** on `PATH` | optional | 3D reconstruction. Without it the app still runs — you get synced videos + timeline, just no 3D scene. `brew install colmap` on macOS. |
-| A classifier API key | optional | AI moment labels. Default **Gemini 2.5 Flash** (`GEMINI_API_KEY`); also Claude or any OpenAI-compatible/local/OpenRouter endpoint via `FESTIVAL4D_CLASSIFIER`. Without a key you still get audio-detected candidate moments, just unlabeled. |
+| A classifier API key | optional | AI moment labels. Default **Gemini flash** (`GEMINI_API_KEY`; model `gemini-3.1-flash-lite`, override with `FESTIVAL4D_GEMINI_MODEL`); also Claude or any OpenAI-compatible/local/OpenRouter endpoint via `FESTIVAL4D_CLASSIFIER`. Without a key you still get audio-detected candidate moments, just unlabeled. |
 
 ---
 
@@ -92,7 +92,7 @@ corrupts existing data.
 To enable AI moment labels, set a key before `events`:
 
 ```bash
-export GEMINI_API_KEY=...             # default provider (Gemini 2.5 Flash, native video)
+export GEMINI_API_KEY=...             # default provider (Gemini flash, native video)
 # or: export FESTIVAL4D_CLASSIFIER=claude  ANTHROPIC_API_KEY=...
 # or: export FESTIVAL4D_CLASSIFIER=local   FESTIVAL4D_OPENAI_BASE_URL=... FESTIVAL4D_OPENAI_MODEL=...
 ```
diff --git a/backend/festival4d/events_ai.py b/backend/festival4d/events_ai.py
index 57b6b84..f8bbf80 100644
--- a/backend/festival4d/events_ai.py
+++ b/backend/festival4d/events_ai.py
@@ -102,13 +102,18 @@ _CLASSIFY_PROMPT = (
 # only pydantic present; construction reads the key/endpoint from the environment.
 # ---------------------------------------------------------------------------
 class GeminiClassifier:
-    """Default provider — Gemini 2.5 Flash, native video input (``GEMINI_API_KEY``)."""
+    """Default provider — Gemini flash tier, native video input (``GEMINI_API_KEY``).
 
-    model = "gemini-2.5-flash"
+    Model is overridable via ``FESTIVAL4D_GEMINI_MODEL``. Default was ``gemini-2.5-flash``
+    until Google retired it for new API keys (404 "no longer available to new users",
+    field-found 2026-07-16); ``gemini-3.1-flash-lite`` is the cheapest current model verified
+    to accept inline video + JSON-schema structured output.
+    """
 
     def __init__(self) -> None:
         from google import genai
 
+        self.model = os.environ.get("FESTIVAL4D_GEMINI_MODEL", "gemini-3.1-flash-lite")
         self._genai = genai
         self._client = genai.Client()  # reads GEMINI_API_KEY from the environment
 
diff --git a/plan/DIRECTIVES.md b/plan/DIRECTIVES.md
index 05498d3..59089cc 100644
--- a/plan/DIRECTIVES.md
+++ b/plan/DIRECTIVES.md
@@ -46,8 +46,23 @@ Content verified accurate — ratified as written. Rule stands for future rounds
 
 **For the human (unchanged + one new):** (a) open the app in a normal focused browser window
 once and confirm the sync panel stays green during continuous playback; (b) shoot or collect
-2–4 overlapping clips of the same performance for the field test; (c) optionally set
-`GEMINI_API_KEY` before `events` to see real moment labels.
+2–4 overlapping clips of the same performance for the field test; (c) ~~optionally set
+`GEMINI_API_KEY`~~ done — see addendum.
+
+**Round 3 addendum (coordinator, same day) — real API keys wired + first field finding:**
+- A local **`.env`** now exists at the repo root (gitignored, chmod 600, **never commit**) with
+  `GEMINI_API_KEY` (default provider) and OpenRouter creds mapped to the `local` provider
+  (`FESTIVAL4D_OPENAI_*`, model `google/gemini-2.5-flash`). Load with
+  `set -a; . ./.env; set +a` before `python -m festival4d events`. Phase-4 agent: the file is
+  machine-local — if it's missing in your worktree, ask the coordinator, don't recreate keys.
+- **Field finding #1 (fixed by coordinator hotfix):** Google retired `gemini-2.5-flash` for new
+  API keys (404 "no longer available to new users"). The Gemini model is now env-overridable
+  (`FESTIVAL4D_GEMINI_MODEL`) with default `gemini-3.1-flash-lite` — verified live: inline
+  video + JSON-schema structured output OK; **3/3 synthetic candidates classified correctly**
+  (`light_show`/`bass_drop`, coherent descriptions). Suite still 101 passed. The degradation
+  path also behaved exactly as designed during the failure — good lane D work.
+- Phase-4 agent: consider a `plan/ISSUES.md` entry template seeded from this finding's shape
+  (symptom → root cause → fix → evidence).
 
 ## Round 2 — 2026-07-16 — Integration complete; v0.1.0 shipped