No real solution to budget woes, but closed-door brokering may overturn 40 years of coastal protection in a sweetheart deal for one company.

NRDC and nearly three dozen California environmental organizations strongly oppose a proposal - included in the latest state budget deal - to allow the first new offshore oil drilling in state waters in over 40 years.  The exact details of this deal have not yet been released because it was brokered behind closed doors by Governor Schwarzenegger and leaders of the Senate and Assembly.  Reportedly, the deal would overturn a decision to reject new drilling off Santa Barbara made by the State Lands Commission in an open and public process.  It would also be a major reversal of the Governor's long-standing opposition to any new drilling off our coast:

This is a terrible deal for the marine life, ocean, and beaches that are central to California's economy and natural heritage, but it also does far less than a known alternative to help the state out of the budget crisis.  If California's leaders want to use oil revenue to help balance the state budget, they should impose an oil severance tax.  Every oil-producing state, including Texas, Oklahoma, and Alaska, already has this kind of tax. If California passed the same measure, it could provide close to $1 billion in revenue this fiscal year alone. This dependable, annual source of state revenue makes far more sense than what's in the budget deal: a one-time $100 million advance from Plains Exploration & Production Co. (PXP). [PLEASE NOTE: information released after the vote on this deal revealed that this was not a loan, as previously reported.]

No California governor since the massive 1969 oil spill, either Republican or Democrat, has supported new offshore drilling in state water. This deal could set new precedent for additional drilling along the California coastline.

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