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Rep. Vitali Introduces Marcellus Shale Drilling Tax Bill
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Rep. Greg Vitali (D-Delaware) announced this week he has introduced a bill that would tax Marcellus Shale natural gas production to fund environmental programs, assist local government with costs related to the industry and help fill a $4 billion shortfall in next year's state budget.
Rep. Vitali was joined at the news conference by 17 other representatives, Sen. Daylin Leach (D-Montgomery) and a representative of Sen. Andy Dinniman (D-Chester), who is gathering support for his own natural-gas severance tax legislation. Representatives of several environmental and outdoor groups attended the news conference. The bill has 57 co-sponsors.
"Pennsylvania is the only major natural gas producing state in the nation that does not have a severance tax or fee in place," Rep. Vitali said. "Out-of-state companies are profiting from the Commonwealth's resources, and the Commonwealth should benefit too."
The rate of the tax under House Bill 33 would be slightly less than that imposed by West Virginia. It would be 5 percent of the value of each 1,000 cubic feet of natural gas severed, plus 4.6 cents per 1,000 cubic feet.
The tax would generate an estimated $245 million for fiscal year 2011-12 this year, and that number would grow to nearly $570 million by 2015, Rep. Vitali said.
“Our waterways were already under siege. Pennsylvania had 60,000 miles pollution impaired streams before the stresses of Marcellus Shale drilling were added to the equation,” said Rep. Camille George (D-Clearfield), Minority Chair of the House Environmental Resources and Energy Committee. “Extraction of any natural resource comes at a cost. A severance tax would enable Pennsylvania to implement safeguards for our water. Without water we’re up a dry creek without a paddle or prayer.”
John Dawes, Foundation for Pennsylvania Watersheds, expressed support for the legislation.
“I represent 150 watershed associations which have a membership of five to 500 citizens. This thoughtful citizen piece of legislation would empower them to get the job done in terms of watershed stewardship, acid mine drainage abatement, abandoned mine land restoration which they are already in a mode of completely," said Dawes. "Our grants have been the largest single source of the Growing Greener program for the last ten years and they have resulted in bringing back to life over 600 miles of biologically dead streams.”
"It’s important to emphasize that the goal is not to tax simply to punish an industry," said Rep. Michael Gerber (D-Montgomery). "Many of us welcome the economic opportunity the industry presents, but we need revenue to protect the environment now and for years to come, to train Pennsylvanians for industry jobs and to support the local taxpayers who will bear the costs of an invasive industry."
"If we're going to win the future here in Pennsylvania, we need to have the revenue from the drilling tax to protect our environment and fund critical needs like our public schools," said Rep. Steve Santarsiero (D-Bucks). "2011 needs to be the year we get this done."
The news conference featured a monitor, which showed a ticker from the Pennsylvania Budget and Policy Center showing that Pennsylvania has lost nearly $130 million by not enacting a severance tax when one was first introduced in October 2009.
The revenue from Rep. Vitali's legislation would be shared equally by the General Fund, local governments and environmental uses. Some of the environmental money would be used to replenish the Growing Greener Fund, which is used to preserve natural areas and open spaces, clean rivers and streams, and address abandoned mines.
House Democrats Renew Severance Tax PitchShale Tax Bill Proposal Unveiled In Harrisburg |
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2/14/2011 |
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