A coalition of business leaders representing a wide variety of industry, energy and Shale drilling  sectors across Pennsylvania Tuesday held a media call to urge the House of Representatives to oppose House Bill 542 – the Tax Code bill.

The legislation would increase taxes on Pennsylvania businesses, the Shale gas industries and residents by $600 million annually they said through a new natural gas severance tax and gross receipt taxes on electric and natural gas energy consumers

In an article by Laura Legere in the Pittsburgh Post-Gazette, the groups also expressed little confidence in environmental regulatory reforms that were married to the new taxes to make the revenue package more palatable to them, saying those provisions can’t be counted on to survive expected legal challenges by environmental organizations.

The reforms-- like mandatory timelines for issuing drilling-related permits and delegating permit reviews to third-party contractors--  have caused a backlash among environmental advocates.

“We are not willing to trade that at all,” said PA Independent Oil and Gas Association executive director Dan Weaver, speaking for his association and its member companies. “Because at the end of the day, what we see happening is that [regulatory reform] component being thrown out and what you’re left with is nothing but the tax.”

Dan Weaver also commented on the issue of DEP permit reviews in an Associated Press story by Marc Levy last Saturday saying--

"So tell me how they're supposed to get their permits through on an expedited basis if they have less money and less staff? And here they go and cut their budget further. Doesn't that exacerbate the problem?"

PA Legislative Services reported that when asked, “Do you support private permit consultants taking over certain DEP jobs?”  “The industry representatives indicated it has not been promoted.”

Specifically, both PIOGA and the Chamber said they did not promote the use of third parties for permit review.  The Chamber said they were not involved in the negotiating or drafting of the third-party permit review language.

Gene Barr, President and CEO of the PA Chamber of Business and Industry said, “Of Pennsylvania’s competitive business advantages, affordable, accessible energy - particularly natural gas - perhaps stands out the most.

“This revenue package would attack that advantage by imposing additional punitive taxes on the natural gas and electricity use – increasing energy costs for businesses throughout the Commonwealth,” he added.  “If we truly want our economy to flourish, state officials need to enact pro-growth policies that will encourage job creation and entice companies to come to Pennsylvania and stay here – which will in turn generate more revenue for the state.”

“In the Senate’s revenue package, over $400 million would come from additional taxes on utilities,” said Energy Association of PA President Terry Fitzpatrick.  “Using utilities as collection agents for state government isn’t good policy.  The Senate plan will put an especially heavy and unfair burden on large energy users.”

Click Here for the full announcement by the business groups.

Special Clips:

Op-Ed: State Budget Bill A Disaster In The Making, PA Environmental Council

Why Are Your Legislators Still Giving $60M A Year To Johnny Depp? Now Stage Shows?

NewsClips:

House Leader Signals Budget Impasse Likely To Linger

Op-Ed: Don’t Trade Away Clean Air And Water In Bargain For Severance Tax

Op-Ed: Cutting Environmental Programs Is Bad For Business

Op-Ed: Why PA’s Fracked-Up Spending Deal Is An Environmental Nightmare

Op-Ed: Senate Revenue Bills Would Cripple Environmental Protection In PA, Rep. Vitali

John Baer: Getting A New PA Budget; Or Driving With No Hands

Editorial: PA Budget Act Is Like Watching Clown Car Headed Off A Cliff

Legere: PA Business Group Boo Energy Taxes In State Budget Proposal

Cusick: Business Groups Slam Senate Energy Tax Proposals

Thompson: Business Community Fires Back Again Energy Taxes

AP: Business Groups Punch Back Against Energy Tax Legislation

Business, Energy Groups Push Back Against Severance Tax Proposal

Battle Over Shale Tax Heats Up In PA

Philly Protesters Want PA Legislators To Tax Shale Gas Drillers

Business Reps Say Tax Hikes To Balance PA Budget Will Hurt

AP: Senate Jams Shale Tax, Industry Permits Into Unhappy Package

PA Looks To Fill Budget Gap Through Your Utility Bills

PA Looks To Fill Budget Gap, Your Utility Bills Could Rise

Op-Ed: Don’t Make PA Gas, Electric Ratepayers Clean Up State Budget Mess, Terry Fitzpatrick

Related Stories:

Rep. Reed: It’s No Secret We Don’t Support Senate Revenue Package, No Urgency To Resolve The Issues

Gov. Wolf Puts $188.3 Million In Budgetary Reserve, Cuts Heritage Parks $625K, State Parks $500K

PA Environmental Council: Budget Deal, A Bad Solution To The Wrong Problem

PRC Urges Senate, House, Gov. Wolf To Oppose Budget Bill Changes That Undercut DEP’s Permitting Authority

Op-Ed: Oil & Gas Wastewater Treatment Facilities Seek Loophole In Senate-Passed Admin Code Budget Rider

Manganese Rider In Budget Bill Shifts Responsibility For Cleaning Up Water From The Discharger To Water Companies, Other Water Users

Nothing In Senate $970 Million Revenue Package For The Environment, Code Bills Littered With Environmental Riders

Senate Environmental Permitting Changes Would Emasculate DEP’s Ability To Regulate Air, Water, Mining, Waste, Radiation, Oil & Gas

[Posted: August 8, 2017]

8/14/2017