Needing cash, Calif. rethinks offshore oil ban

Gov. Schwarzenegger campaigned to keep ban, but likes new proposal

LOS ANGELES – With California facing a huge budget deficit, officials at the state Department of Finance saw an opportunity to resurrect a controversial proposal for oil drilling off the coast of Santa Barbara as a way to boost revenue and potentially bring $1.8 billion into state coffers over time.

Tom Sheehy, the department’s chief deputy director, said he started working on a plan in March to ask the Legislature to give his department head authority to reconsider a project that had just died before the three-member State Lands Commission. At that meeting, Sheehy represented the governor’s appointee on the panel and was the lone vote for the project.

“We want to let 120 elected officials get a bite at the apple instead of a panel of three,” he said. “We see this as a once-in-a-lifetime opportunity.”

Last week, Gov. Arnold Schwarzenegger gave his blessing by unveiling the surprise plan. What could lead to the first new offshore drilling project in more than 40 years, also puts back into play one of California’s most contentious environmental issues.

MSNBC