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Fall Environmental Agenda Crowded For Last 3 Weeks Of Legislative Session

The Senate and House will only be in voting session together for three more weeks during the remainder of this year. Any bills not receiving final votes will die and have to be reintroduced in the new session in January when a new Senate and House and Governor will consider them.

            The Senate is scheduled to be in session for three weeks-- the weeks of September 20, 27 and October 11-- and will not consider legislation after the election.  The House will return to session for the weeks of September 13, 20, 27, October 4, November 8, 15.
            Here is a list of some of the major bills and issues still awaiting action.  It is by no means a complete list--

Severance Tax Commitment

The General Assembly made a commitment in the Fiscal Code bill-- Senate Bill 1042-- passed as part of the budget in July to pass a Marcellus Shale natural gas severance tax by October 1 and to allocate the revenue between the Commonwealth, counties and municipalities and environmental initiatives.     
            Section 4  (page 155)  of Senate Bill 1042 reads--
            "It is the intent of the House Majority Leadership and  Senate Majority Leadership to pass legislation that raises revenue from the extraction of Marcellus Shale natural gas by October 1, 2010, with an effective date for implementation no later than January 1, 2011.  It is the further intent to have revenue raised from the extraction of Marcellus Shale natural gas to be divided by a ratio to be determined by legislation between the Commonwealth, counties and municipalities and environmental initiatives."
            The last severance tax proposal made by Gov. Rendell was in his February budget address which would have generated $178.6 million in FY 2010-11 and allocate $160.7 million to a proposed Stimulus Transition Fund (which never got any support from legislators) and $17.9 million to local communities seeing infrastructure and other impacts from drilling.
            The Governor made no allocation to fund environmental programs like Growing Greener, which ran out of money this year.
            Both Senate Republican and House Democratic staffs have been working on separate drafts of a severance tax and in the case of the Senate, also on other items they say should be linked to the adoption of the tax like more "reasonable" permit and inspection requirements and dealing with local ordinances that regulate drilling.
            Gov. Rendell said at his press conference this week he expects House Democrats to adopt their severance tax proposal soon after they return to session on September 13, although they had significant difficulty in lining up the votes for a tax in June.
            A list of severance tax bills in the House and Senate is included in the list below.  Click here for talking points on the issue from the Foundation for Pennsylvania Watersheds.
                                 Onorato Slams Corbett's Opposition To Drilling Tax
                                 Onorato Slams Corbett On Drilling
                                 Onorato: Make Gas Drillers Pay, Not Taxpayers
                                 Onorato Decides To Back Shale Gas Extraction Tax
                                 Marcellus Shale Severance Tax Coming Up
                                 Think Tank Warns Of Gas Industry Tax Breaks
                                 Editorial: Quick Disclosure On Natural Gas Political Contributions

PCN To Air Special Marcellus Shale Programs Next Week

Next week the Pennsylvania Cable Network will air special programs on the Marcellus Shale natural gas production issue in the Commonwealth.
            From Tuesday through Thursday, the statewide public affairs network will dedicate part of its evening schedule to air special call-ins as well as a town hall meeting and "On the Issues" interview dealing with the topic.
            On Tuesday and Wednesday, viewers may share their comments and questions about the issue during two live call-ins by dialing 1-877-726-5001. Both programs will begin at 7 p.m.
            After the call-in Wednesday (at 8 p.m.), an "On the Issues" program will feature Sen. Bob Casey.
            At 7 p.m. Thursday, PCN will host a live Marcellus Shale town hall meeting at Washington and Jefferson College. Brian Lockman, president and CEO of PCN will moderate a panel. The panel includes Myron Arnowitt, state director of Clean Water Action; John Hanger, secretary of the state Department of Environmental Protection; Matt Pitzarella, director of public affairs for Range Resources; David Yoxtheimer, extension associate for the Penn State Marcellus Initiative for Outreach and Resources; and Angela Zimmerlink, Fayette County commissioner.
            Check the PCN website for a cable company carrying PCN or watch online.

State Budget Shortfall

Two weeks ago Gov. Rendell took steps to implement his plan to make up for the $280 million shortfall caused by a reduced federal appropriation for Medicaid funding.
            That plan includes--
-- An across-the-board cut of 1.9 percent in the state budget that would yield $212 million: 1.9 percent cut to "discretionary appropriations," including $50 million to basic education funding; 1.9 percent cut to the General Assembly, Courts and to elected row offices (Auditor General, Attorney General and State Treasurer);
-- Using $70 million from the proposed Marcellus Shale natural gas production severance tax.
            If the General Assembly fails to adopt the Marcellus Shale severance tax, there will be another $70 million hole to fill.
            The Governor said there will still be the need to layoff about 100 state workers, but he has not yet released a list of which agencies would be affected.

Alternative Energy

Gov. Rendell this week added to his list of "to-dos" for the General Assembly by again urging the Senate and House to adopt an expansion of the state's Alternative Energy Portfolio Standard focused on increasing solar energy requirements.
            Rendell said he cut back his "ask" for a wholesale expansion of the Portfolio Standard in favor of just the expansion of the solar energy standard.
            House Democrats have had Alternative Energy Portfolio Standard legislation-- House Bill 80 (Vitali-D-Delaware) and then House Bill 2405 (DePasquale-D-York) expanding the Alternative Energy Portfolio Standards and authorizing a carbon sequestration network (both without funding)-- on the House Calendar since July 2 of 2009 without being able to bring the bills to a vote.
            Alternative energy isn't even on the Senate Republican radar screen.
            NewsClip: Lawmakers Cool To Rendell Call For Solar Energy

Transportation Funding

On August 23 Gov. Rendell unveiled what he said would be a $1 billion increase in annual transportation-- highway and transit-- funding needed to fill the hole left when the federal government failed to approve plans to toll I-80.  His plan includes--
-- $576 million from a new net profit tax on oil companies which he said now only paid $35 million in state Corporate Net Income Tax, while making $5 billion in profits in Pennsylvania; and
-- $434 million by raising driver and vehicle fees consistent with the increase in inflation (for the average driver the increase would cost 33 cents per week).
            He cited poll numbers saying 74 percent of the public supported the oil company tax and a narrow majority supporting the increase in driver and vehicle fees.
            So far, his tax and fee proposals are not getting much traction with legislators.  
            At a hearing last week, Sen. John Rafferty (R-Montgomery), Majority Chair of the Senate Transportation Committee, said he would like to see a more comprehensive proposal including not only highway and transit, but also items like rail freight funding.  He said 2011 would be a better time to consider these items.
            NewsClip: Onorato Opposes Gasoline Tax, Vehicle Fee Hikes

Reports

REAP Farm Conservation Tax Credit: The House adopted House Resolution 127 (Levdansky-D-Allegheny) directing the Legislative Budget and Finance Committee to determine the impact of tax credit programs on the Commonwealth's economy, job market and state and local tax revenues, including the Resource Enhancement and Protection Farm Conservation Tax Credit. The report is tentatively set to be released in September.

Meeting Chesapeake Bay Cleanup Standards: The Senate adopted  Senate Resolution 215 (Brubaker-R-Lancaster) directing the Legislative Budget and Finance Committee to study the costs to achieve the Chesapeake Bay Program nutrient load reductions required by agricultural sources and to evaluate funding strategies.  The study was to be done on June 30, 2010.  The Committee has not yet taken action to hire a contractor to do the study.

Senate

Drilling Moratorium: House Bill 2235 (Vitali-D-Delaware) imposing a 3 year moratorium on Marcellus Shale natural gas drilling in State Forests and requiring certain studies by the Joint Legislative Budget and Finance Committee (no funding provided) was passed by the House 157 to 33 and is now in the Senate Environmental Resources and Energy Committee for action.

Severance Tax: Senate Bill 905 (Musto-D-Luzerne), Senate Bill 997 (Dinniman-D-Chester) using the severance tax to balance the budget and fund some environmental programs,  Senate Bill 1254 (Dinniman-D-Chester) using the severance tax to provide additional property tax relief.  All the bills are in the Senate Finance Committee.

Leasing Other State Lands For Drilling:  Senate Bill 1159 (D.White-R-Indiana) authorizing the Department of General Services to lease minerals on state land owned by agencies other than DCNR, Fish and Boat and Game Commissions and depositing any payments or royalties in the Environmental Stewardship (Growing Greener) Fund was referred to the Senate Appropriations Committee.

Gas/Coal Spacing:  Senate Bill 1374 (MJ White-R-Venango) requiring DCNR's Bureau of Topographic and Geologic Survey to update workable coal seams maps annually and setting separation distances from gas wells and coal seams with funding provided by the Oil and Gas Fund was referred to the Senate Appropriations Committee.

Well Operator Certification:  Senate Bill 1451 (Baker-R-Luzerne) requiring gas well and wastewater treatment operators to be certified by DEP (no funding provided) is in the Senate Environmental Resources and Energy Committee awaiting action.

Gas Well Setbacks:  Senate Bill 1452 (Baker-R-Luzerne) would require each oil and gas well permit to be accompanied by information regarding the zone of influence of the well site on groundwater and an analysis of the time a potential release of drilling fluids would reach the nearest waterways; a preparedness, prevention and contingency plan; and a plan for notifying all downstream water users in the event of a spill.         

            The bill requires the notification of all public drinking water system operators within the water within 10 days of receiving a permit; a requirement that wells not be drilled within 1,000 feet of a building or water well without the consent of the owner; not within 1,000 feet of any stream, spring or body of water; or 1,000 feet of any wetlands or within 3,000 feet of a drinking water reservoir.  The permit application must also contain a groundwater monitoring and sampling plan before, during and after drilling.
            The bill is in the Senate Environmental Resources and Energy Committee awaiting action.

Ultra Low Sulfur/Bio Heating Oil:  Senate Bill 1282 (Erickson-R-Delaware) requiring heating oil to meet the same ultra low sulfur and biofuels content requirements of diesel fuel is in the Senate Environmental Resources and Energy Committee for consideration.

Flood Control: Senate Bill 235 (Wozniak-D-Cambria) authorizing the use of non-structural flood control alternatives was reported from the Senate Environmental Resources and Energy Committee and is now in the Senate Appropriations Committee for consideration.

Green Buildings: House Bill 444 (M.Smith-D-Allegheny) requiring buildings built and funded by the Commonwealth to meet green building standards (no funding provided) was passed by the House, was amended and reported out of the Senate Environmental Resources and Energy Committee and Tabled.

Green Buildings: Senate Bill 728 (Rafferty-R-Montgomery) setting standards for high performance green buildings (without funding) was referred to the Senate Appropriations Committee.

Green Schools: House Bill 689 (Drucker-D-Chester) providing for reimbursements for schools which meet LEED green building standards (no funding provided) is in the Senate Education Committee for consideration.

Energy Office: House Bill 786 (George-D-Clearfield) creating a State Energy Office within DEP (no funding provided) was passed by the House, was amended and reported out of the Senate Environmental Resources and Energy Committee and was Tabled..

Solar Energy:  House Bill 2234 (Houghton-D-Chester) prohibiting deed restrictions related to solar energy systems on residential property was passed by the House and is now in the Senate Urban Affairs and Housing Committee.

Leasing Lake Erie For Wind Farms:  House Bill 2342 (Hornaman-D-Erie) authorizing the Department of General Services to lease submerged lands in Lake Erie for wind farms was passed by the House and is now in the Senate State Government Committee.

Biofuels: Senate Bill 698 (Waugh-R-York) creating the PA Farms to Fuels Incentive Act along with a $10 million General Fund appropriation was referred to the Senate Appropriations Committee.

Farms- Energy Production: House Bill 984 (Kessler-D-Berks) would limit the roll-back taxes when a landowner leases land enrolled in the program for a wind power generation system was passed by the House and is now in the Senate Agriculture and Rural Affairs Committee for action.

Farmland/Energy Production:  House Bill 1394 (Houghton-D-Erie) providing for the splitting off of farmland for the production of alternative energy was amended and reported from the Senate Agriculture and Rural Affairs Committee and was Tabled.

Land Conservation:  Senate Bill 884 (Waugh-R-York) requiring proceeds from the sale of certain state farms to the Agricultural Conservation Easement Purchase Fund was referred to the Senate Appropriations Committee.

Nutrient Credit Trading: Senate Bill 767 (Vance-R-Cumberland) establishing the Nutrient Credit Trading Program in law and creating a Nutrient Credit Trading Bank is in the Senate Environmental Resources and Energy Committee.

Stormwater Funding: House Bill 2591 (George-D-Clearfield) authorizing funding for stormwater management projects under PennVEST was passed by the House and is now in the Senate Environmental Resources and Energy Committee for consideration.

Clean Water Fund: Senate Bill 1303 (MJ White-R-Venango) authorizing the use of the Clean Water Fund to finance Black Fly and West Nile Virus suppression was referred to the Senate Appropriations Committee.

Electronics Recycling: House Bill 708 (Ross-R-Chester) establishing an electronics waste recycling program with program funding provided by registration fees was passed by the House and is now in the Senate Environmental Resources and Energy Committee for consideration.

 Recycling Textbooks: Senate Bill 1379 (Musto-D-Luzerne) requiring the recycling of textbooks (without funding) was referred to the Senate Appropriations Committee.

Open Space: House Bill 951 (Dally-R-Northampton) providing additional tools to acquire and hold open space was referred to the Senate Appropriations Committee and Senate Bill 172 (Brubaker-R-Lancaster) further authorizing local governments to preserve, acquire or hold land for open space purposes was also referred to the Senate Appropriations Committee.

Land Banks:  House Bill 712 (J.Taylor-D-Philadelphia) providing for creating of land banks to put properties back into productive use (no funding provided) was passed by the House and is now in the Senate Urban Affairs and Housing Committee for action.

Traditional Neighborhood: House Bill 1609 (Freedom-D-Lehigh) further providing for the definition of traditional neighborhood within the Municipalities Planning Code was reported from the Senate Local Government Committee, Senate Appropriations Committee and was Tabled.

Main Street Program: House Bill 102 (Freeman-D-Lehigh) extending the duration of Main Street Program Grants was passed by the House and is now in the Senate Community, Economic and Recreational Development Committee for action.

Landfill Penalties: Senate Bill 547 (Rafferty-R-Montgomery) providing penalties for repeat violations of landfill regulations was referred to the Senate Appropriations Committee.

Historic Preservation: House Bill 42 (Freeman-D-Lehigh) providing for Historic Preservation Grants (no funding provided) was passed by the House and is now in the Senate Community, Economic and Recreational Development Committee for consideration.

Snowmobiles:  House Bill 1171 (Hanna-D-Clinton) relating to snowmobile and ATV registration and use of restricted account was passed by the House and is now in the Senate Environmental Resources and Energy Committee for action.

Green Technology Testing: House Bill 2601 (Siptroth-D-Monroe) establishing the Green Technology Implementation Act to provide for the testing of new environmental and energy technologies (with no funding provided) was passed by the House but has not yet been referred to the Senate State Government Committee.

Box Turtle: House Bill 621 (Curry-D-Montgomery) naming the Eastern Box Turtle as the official reptile of the Commonwealth was passed by the House, was reported from the Senate State Government Committee and Tabled.

House

Natural Gas Severance Tax: House Bill 1489 (George-D-Clearfield) authorizing a natural gas severance tax was referred back and forth from the House Environmental Resources and Energy Committee and is now in the House Appropriations Committee.   

            House Bill 2443 (Levdansky-D-Allegheny) imposing a natural gas production severance tax depositing 45 percent in the General Fund, 22 percent in the Environmental Stewardship (Growing Greener) Fund, 20 percent in a new Local Government Services Fund for counties and municipalities in the drilling areas, 2 percent in the Hazardous Sites Cleanup Fund, 3 percent in the Conservation Districts Fund, 2 percent to the Game Commission, 4 percent to the Fish and Boat Commission and 2 percent to the Low-Income Home Energy Assistance Program is in the House Finance Committee.   
            House Bill 2438 (D.Evans-D-Philadelphia) imposes a natural gas production severance tax depositing 90 percent in the General Fund through June 30, 2011 and 10 percent in a restricted account to be allocated as follows-- 50 percent distributed to municipalities in natural gas drilling areas, 50 percent to counties in natural gas drilling areas to be used for road and bridge repairs, parks and recreation, industrial and commercial development, improvement of municipal water and wastewater systems, preservation and reclamation of surface waters and other purposes relating to the consequences of natural gas development was amended and is in the House Appropriations Committee.

Oil And Gas Wells Water Protection: House Bill 1155 (George-D-Clearfield) providing for addition protection of surface rights owners and requiring compensation agreements with those holding oil and gas well drillers and was referred to the House Appropriations Committee.

Protecting Water Supplies: House Bill 1205 (Pickett-R-Bradford) providing further protection of water supplies from oil and gas drilling through pre-drilling water well surveys was reported from the House Environmental Resources and Energy Committee and referred to the House Appropriations Committee.

Protecting Surface Landowners/Water Supplies From Drilling:  House Bill 2213 (George-D-Clearfield) amending the Oil and Gas Act to further provide for ground and surface water protection (amended) and House Bill 2214 (George) providing for minimum oil and gas royalties were reported from the House Environmental Resources and Energy Committee and referred to the House Appropriations Committee.

Farm-Drilling: Senate Bill 298 (Yaw-R-Bradford) allowing the split off of preserved farmland for drilling purposes was amended and reported out of the House Agriculture and Rural Affairs Committee and re-referred to the House Appropriations Committee..

Mineral Rights: House Bill 1436 (White-D-Allegheny) authorizing re-recording of subsurface mineral rights by surface owner after 10 years of non-use was reported out of the House Environmental Resources and Energy Committee and then referred to the House Rules Committee.

Nutrient Trading: House Bill 1381 (DePasquale-D-York) establish the Nutrient Credit Trading Program in law is now in the House Environmental Resources and Energy Committee for action.

Stormwater Planning: House Bill 1390 (Freeman-D-Lehigh) authorizing local integrated water resources plans was amended to allow local governments to avoid the mandate for stormwater planning if the state does not provide its share of funding (no additional funding provided) and reported from the House Local Government Committee and was referred to the House Appropriations Committee.

Distribution System Improvement Funding: The House Consumer Affairs Committee reported out House Bill 194 (Preston-D-Allegheny) providing for a DISC program for wastewater systems and House Bill 744 (Solobay-D-Washington) providing for a DISC program for natural gas systems. Both bills were referred to the House Appropriations Committee.

Electric Rate Caps: House Bill 20 (McCall-D-Carbon) phasing in electric rate increases was amended and reported out of the House Consumer Affairs Committee and was referred to House Appropriations Committee.

Commonwealth Energy Agency: House Bill 1909 (George-D-Clearfield) creating a Commonwealth Energy Procurement and Development Agency and Fund (without funding) was reported out of the House Environmental Resources and Energy Committee and then referred to the House Rules Committee.

Borough Electric Purchases: Senate Bill 168 (Brubaker-R-Lancaster) authorizing boroughs to enter into energy contracts was reported from the House Local Government Committee and was referred to the House Consumer Affairs Committee.

Alternative Energy/Carbon Network: House Bill 80 (Vitali-D-Delaware) and House Bill 2405 (DePasquale-D-York) expanding the Alternative Energy Portfolio Standards and authorizing a carbon sequestration network (without funding) is on the House Calendar for action.

Green Building Credit: House Bill 43 (Harper-R-Montgomery) establishing a high-performance, green building construction tax credit (without funding) was amended and reported out by the House Environmental Resources and Energy Committee and then referred to House Appropriations Committee.

Energy Star Tax Credit: House Bill 448 (M.Smith-D-Allegheny) providing for an Energy Star rated glass tax credit (no funding provided) was reported from the House Environmental Resources and Energy Committee and then referred to House Appropriations Committee.

Biofuels Exemption: Senate Bill 901 (Scarnati-R-Jefferson) would provide a one year exemption from biodiesel mandates for small refiners was amended and reported from the House Agriculture and Rural Affairs Committee and then referred to the House Appropriations Committee.

Ultra Low Sulfur/Bio Heating Oil:  House Bill 2578 (George-D-Clearfield) including heating oil in the ultra low sulfur and requiring a biofuels content just like diesel fuel was reported from the House Environmental Resources and Energy Committee and referred to the House Rules Committee.

County Waste Management Fee: House Bill 1069 (Scavello-R-Monroe) authorizing a county waste management fee was reported from the House Environmental Resources and Energy Committee and was referred to the House Appropriations Committee.

Air Pollution Fines: Senate Bill 1250 (Pileggi-R-Delaware) requiring the sharing of air pollution fines with local governments was passed by the Senate and is now in the House Environmental Resources and Energy Committee.

Mining Fees:  Senate Bill 1176 (D.White-R-Indiana), Senate Bill 1196 (D.White), Senate Bill 1197 (D.White) requiring mining permit fees to be adopted by regulation were passed by the Senate and are now in the House Environmental Resources and Energy Committee for action.

Non-Coal Permit Fees: Senate Bill 1394 (Eichelberger-R-Blair) requiring permits fees for non-coal mining operations to be set by regulation was reported from the Senate Environmental Resources and Energy Committee and Tabled.

State Parks Use: Senate Bill 974 (D.White-R-Indiana) directing DCNR to honor leases during periods when State Parks or Forests are closed due to an action of the agency was passed unanimously by the Senate and is now in the House Environmental Resources and Energy Committee for action.

Water Trails:  House Resolution 884 (Levdansky-D-Allegheny) directing the Joint Legislative Budget and Finance Committee to study the economic impact of Pennsylvania's Water Trails (without funding) is in the House Tourism and Recreational Development Committee awaiting action.

Open Space: House Bill 1772 (Matzie-D-Allegheny) further authorizing local governments to hold open space for preservation was amended and reported from the House Local Government Committee and was referred to the House Appropriations Committee.

Sludge Testing:  House Bill 1341 (George-D-Clearfield) requiring the testing of sewage sludge (without funding) was referred to the House Appropriations Committee.

Blight: Senate Bill 900 (Argall-R-Schuylkill) providing for neighborhood blight reclamation and revitalization (no funding provided) was passed by the Senate and is now in the House Urban Affairs Committee for consideration.

Acceptable Data: Senate Bill 136 (Erickson-R-Delaware) requiring the submission of acceptable data to the Independent Regulatory Review Commission to support regulatory proposals (without funding) was referred to the House Appropriations Committee.

Environmental Advisory Councils/Geohazards: House Bill 1450 (Deasy-D-Allegheny) transfers language relating to local environmental advisory councils and creates a geologic hazards program (without funding) was amended and reported out of the House Environmental Resources and Energy Committee and then referred to the House Rules Committee.

Hazardous Sites Reporting: Senate Bill 783 (MJ White-R-Venango) requiring additional reporting on the Hazardous Sites Cleanup Fund was passed by the Senate and is now in the House Environmental Resources and Energy Committee for consideration.

Air Quality Plans: Senate Bill 115 (MJ White-R-Venango) requiring publication of changes to the State Air Quality Implementation Plan was passed by the Senate and is now in the House Environmental Resources and Energy Committee for action.

DEP Special Funds: Senate Bill 116 (MJ White) requiring additional reporting by DEP special funds was passed by the Senate and is now in the House Environmental Resources and Energy Committee for action.

Keystone Fund: Senate Bill 117 (MJ White) requiring additional reporting for expenditures from the Keystone Recreation, Park and Conservation Fund was passed by the Senate and is now in the House Environmental Resources and Energy Committee for action.

EQB Counsel: Senate Bill 85 (Musto-D-Luzerne) providing for an independent counsel for the Environmental Quality Board (without funding) was passed by the Senate and is now in the House Environmental Resources and Energy Committee for action.

Lyme Disease:  House Bill 894 (Phillips-R-Northumberland) establishing a Lyme Disease Task Force and assigning responsibilities to the Department of Conservation and Natural Resources (without funding) was reported from the House Appropriations Committee and is now on the House Calendar for action.

GeoSpatial Coordinating Council:  House Bill 2300 (Fairchild-R-Mifflin) creating the State Geospatial Coordinating Council (without funding) was amended and reported from the House Veterans Affairs and Emergency Preparedness Committee and re-referred to the House Rules Committee.


9/6/2010

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