Legislative Proposals
The General Assembly failed to enact a severance tax in the 2009-2010 budget. Governor Rendell has proposed a severance tax in his 2010-2011 budget. Leaders in the House Democratic Caucus, environmental and sportsmen groups, and a strong grassroots movement continue to fight for the enactment of this tax that will reinvest in the land, water, wildlife and communities impacted by natural gas drilling. The following are legislative proposals on both a severance tax and a moratorium on new drilling in state forests:
House Bill 1489
Prime Sponsor: Representative Bud George
House Bill 1489 was the originial house bill that would assess a severance tax on the extraction of natural gas. An amendment was adopted by the House Environmental Resources and Energy Committee (A07833) on June 21, 2010 that sets the tax rate at at a rate of 35 cents per 1,000 cubic feet (mcf). Under this amendment, 50% of tax revenues will be directed to the general fund and 15% to the Environmental Stewardship Fund. Revenues will also be distributed for local government services, an environmental disaster recovery account, the hazardous sites cleanup fund, conservation districts, the Game Commission, the Fish and Boat Commission, LIHEAP, and DEP for low-dam removal, repair and restoration. In the first year of the tax, $75 million would be given to the General Fund and the rest would be divided using the set percentages. Starting in the second year, all of the revenues would be distributed according to these percentages.
Bill Progress
The bill was approved by the House Environmental Resources and Energy Committee and has been referred to the House Appropriations Committee.
House Bill 2235 - Moratorium on New Drilling Leases in State Forests
Prime Sponsor: Representative Vitali
House Bill 2235 place a 3-year moratorium on new leases of State Forest to natural gas drillers. The three years would give DCNR time to study the impacts current drilling leases will have on the environmental, economic and recreational values of our State Forests. After the moratorium ends, the bill would allow DCNR to lease further lands only if DCNR determines that such leases can be done without threatening water and air quality, habitat, ecosystems, recreational, social and asthetic values of the forests.
Bill Progress
The bill was passed by the House on May 4th, 2010 with a vote of 157 to 33. (see how your representative voted). The bill is now in the hands of the Senate.
Senate Bill 1420
Prime Sponsor: Senator Daylin Leach
Senate Bill 1420 is identical to House Bill 2235. Senate Bill 1420, with a bipartisan roster of 13 co-sponsors.
Bill Progress
Senate Bill 1420 has been referred to the Senate Environmental Resources and Energy Committee
Senate Severance Tax Bill Prime
Sponsor: Senator Dinniman
Senate Bill 997 would institute a severance tax using the same rate used in neighboring West Virginia, (5% of the gross value at the wellhead and 4.7 cents/1,000 cubic feet). Funding generated from the severance tax would be allocated as follows:
- 22% to the Environmental Stewardship Fund (Growing Greener)
- 22% to local governments impacted by natural gas production and transmission
- 3% to the PA Fish and Boat Commission
- 3% to the PA Game Commission
- 50% to the General Fund Natural gas extractioncan greatly damage land, water, wildlife and communities.
Bill Progress
Senate Bill 997 has been referred to the Senate Finance Committee
This site is maintained by the Pennsylvania Land Trust Association on behalf of the ninety organizations that support a
severance tax
on natural gas with a portion of the revenues directed to the protection of our land, water, wildlife, and communities.