The Bureau of Ocean Energy Management (BOEM) on January 26, 2026 issued two Calls for Information and Nominations covering previously protected federal waters off Southern and Central California. The notices begin a preliminary review under the Outer Continental Shelf Lands Act and invite public and industry input on environmental conditions, potential commercial interest, and socioeconomic impacts. The “calls” formally initiate a process that could lead to the first new offshore lease sales in the region since 1984.
While the action does not authorize drilling or commit the federal government to holding lease sales, the calls are the first step in the federal Outer Continental Shelf (OCS) leasing process. BOEM could hold offshore lease auctions as soon as 2027.
“These Calls begin a careful analysis of two key areas with promising resource potential on the Outer Continental Shelf to help guide future decisions about potential leasing and development—supporting U.S. energy security, creating good-paying jobs, and reducing reliance on foreign energy, all while maintaining our commitment to responsible environmental stewardship,” BOEM Acting Director Matt Giacona said in a statement.
The review is part of a broader effort by the Trump administration to expand domestic oil and gas production. In January 2025, President Donald Trump issued a series of energy-related memorandums and executives orders that included lifting the ban on offshore oil drilling in federal waters. The orders established U.S. policy to “encourage energy production and exploration on federal lands and waters, including on the Outer Continental Shelf.”
In November, the Department of the Interior released a draft proposal to lease approximately 1.27 billion acres in the OCS, including in six areas off the coast of California. The draft proposal, released on November 20, 2025, follows reports on a leaked draft of the plan earlier this month.
West Coast Opposition
California, Oregon, and Washington moved to oppose the federal action, submitting a joint comment objecting to any new offshore leasing along the Pacific coast. California Governor Gavin Newsom, joined by Oregon Governor Tina Kotek and Washington Governor Bob Ferguson, said the proposal threatens coastal economies and ecosystems while offering limited energy benefits. In a joint statement, the governors argued that offshore drilling poses unacceptable spill risks to fisheries, tourism, ports, and sensitive marine habitats. The California Department of Justice also submitted a comment in opposition.
Legal Risks Loom
State officials have signaled that litigation is likely if the federal government moves beyond preliminary review toward lease sales. California Attorney General Rob Bonta has already sued the Trump administration over federal approvals related to offshore oil infrastructure, including Sable Offshore Corp.’s restart of oil pipelines serving offshore platforms in state waters.
The issuance of oil leases off the coast of California would likely face challenges under the National Environmental Policy Act, the Coastal Zone Management Act, and other federal statutes that require extensive environmental review and state consistency determinations.
Limited Energy Impact
Offshore production in Pacific federal waters currently accounts for approximately 0.1% of total U.S. offshore oil output, according to federal data cited by Reuters. No new federal leases have been issued off California since the early 1980s. Opponents of offshore drilling argue that even a small probability of a spill carries outsized consequences for California’s coastline. (For background on California’s opposition to offshore drilling, see California’s Energy Transition from Oil State to Fossil Free: Introduction Part Three—Offshore Drilling).
Next Procedural Steps
The current BOEM notices initiate a public comment period and data-gathering phase. The agency will use the submissions to inform whether to include California planning areas in a future five-year offshore leasing program.
If BOEM advances the proposal, additional steps would include environmental impact statements, coordination with other federal agencies, and consistency reviews with affected coastal states. Each stage could take years and would provide multiple opportunities for public input and legal challenge.
Interior officials have not indicated whether California waters will ultimately be included in a final leasing schedule, emphasizing that the current review is exploratory.