Proposed deal would allow first new offshore oil leases in 40 years
The same state budget crisis that could shutter 220 of California’s state parks and beaches, may also open the door for the first new offshore oil leases in state waters in forty years. That is, if a proposal floated in the closed-door state budget negotiations on Thursday wins approval from Governor Arnold Schwarzenegger.
If approved, the deal would pave the way for the first offshore oil leases in California state waters since the 1969 Santa Barbara oil spill and the California Sanctuary Act. In so doing, it would effectively bypass the current regulatory process for formalizing the leases.
“It would be a complete corruption of the safeguards that Californians have demanded in order to protect the coastlines from oil development,” said State Assemblymember Pedro Nava, via telephone on Thursday afternoon.
Nava, who represents California’s 35 District (Santa Barbara), said the proposal was floated during the budget negotiations currently underway in Sacramento between Gov. Schwarzenegger and the top two legislators in each party, otherwise known as “The Big Five”.
Schwarzenegger and other supporters of the plan believe the offshore drilling will result in $1.8 billion in revenues for the state by 2022.
Nava said he was not sure if it was Democrats or Republicans that brought the proposal to the table, but that the governor has the power and the authority to out of hand reject the proposal. “The governor can say no,” he said.
Assemblymember Nava said that the Governor has established his environmental credentials, but “if he allows the first new lease in state waters, that will be the only thing he will be remembered for… that will be his legacy.”
In January, California regulators rejected a compromise that would have closed four offshore oil platforms and allowed new drilling in state waters for the first time in forty years.
The California State Lands has the power to approve any new leases in the state. When the proposal was evaluated it was found to be unenforceable and rejected in a 2-1 vote.
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About Timothy B. Hurst
No way will we allow our California beaches to continue being destroyed by Oil and Gas Companies. Seems to me, Governor Arnold talks the environment Talk but does not Walk the Walk.
My message to the Governor is "how is it – many businesses see the strong economic outcome of building Renewable Energy resources in CA?" I don't understand how you can say one thing to President Obama and another to us in California.
The California Legislature needs to hold its ground and not allow the Governor to continue his play on words.
Arnold is a liar. The new budget (7/20/09) allows offshore drilling, but charges oil companies no severance tax. CA is the only state not to charge an oil severance tax. Alaska charges 25%.
The budget has not been voted on yet, so call the Assembly and the state Senate, and insist on an oil severance tax! A 9% tax would bring in 4 billion a year.
Ca. new budget compromise allows Republicans their demands:
no surtax on corporate profit etc., no oil-extraction fee (Alaska imposes a 25% fee), no vehicle-license restoration fee, no Prop 13 moderation so that corporations will finally pay their fair share of property taxes.
Making matters worse, Democrats also agreed to cuts in schools, universities, colleges, children's health mental health etc.
But what California taxpayers also got saddled with is opening our beautiful shoreline to oil drilling as the source of revenue.
Where is California's bold effective leadership when we need it most!!