Assemblyman Pedro Nava, D-Santa Barbara, announced Thursday that he will author legislation to require the oil industry to pay Californians a percentage of the value of the oil they take from California lands and sea beds.

“This budget crisis has hit California very hard. It appalls me that Wall Street has been viewing the crisis as a boon for oil companies,” Nava said. “With high unemployment, a stagnant housing industry and reduced consumer spending, California families are feeling a bruising economic pinch and paying a heavy toll. I want to make sure that the oil industry pays their fair share as well.”

Nava will introduce legislation to create an oil severance tax of 10 percent of the gross value of each barrel of oil pumped in California, resulting in about $1.5 billion in increased General Fund revenues annually. It would be available for all General Fund expenditures, including education, public safety, human services and other vital programs.

During the budget crisis, Gov. Arnold Schwarzenegger advocated for a proposal that would have allowed a single oil company to bypass existing environmental review processes and start the first new drilling in state water since the 1969 Santa Barbara oil spill. That proposal would have raised about $100 million annually. Nava’s proposal could raise more than 15 times that amount.

Last month, the governor announced he would call the Legislature into special session in September to revamp the state’s tax system. “It would be foolish to discuss changes to the revenue stream and not include the oil industry in that discussion,” Nava said.

Of the top 10 oil-producing states, California is the only state not charging a severance tax, Nava said.

“It is no wonder Wall Street views California’s budget crisis as an economic boon to the oil industry,” Nava said. “The mineral resources of this state belong to all Californians. The state government has an obligation to the people to make sure that Californians are benefiting from the use of these resources by the oil industry.”

— John Mann is a spokesman for Assemblyman Pedro Nava, D-Santa Barbara.