02/03/25 - 101 New Stories - REAL Environmental & Conservation Leadership In PA: http://tinyurl.com/mrh8jxf6
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7 Days Left For This General Assembly, Governor To Pass Severance Tax, Fund Environment
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With Senate Republicans sticking to their decision of no voting days after the November election and House Democrats imploding again this week and failing to vote on a Marcellus Shale natural gas production tax or a transportation funding package, the clock continues to count down to the end of this legislative session. There are now only seven voting days scheduled until the end. Any issues not resolved and on the Governor's desk will have to wait for a new Governor and a new General Assembly in January.
That doesn't mean there wasn't any movement on any of Gov. Rendell's initiatives this week.
Alternative Energy
House Bill 1128 (Preston-D-Allegheny) was amended to increase the solar energy mandate to 1.5 percent and then the overall Tier 1 alternative energy standard to 9 percent by 2021 and reported from the Senate Consumer Protection and Professional Licensure Committee by a 7 to 6 vote. It is now on the Senate Calendar for action.
Gov. Rendell had paired back his "ask" on alternative energy to just increasing the solar share instead of a general increase in the Alternative Energy Portfolio Standards mandate and setting up a carbon sequestration program.
Electric utilities are opposing the increase in the mandate, so it remains to be seen whether this will make it all the way through the process.
Marcellus Shale Production Tax
Senate Republicans are still taking the position that until the House sends them a Marcellus Shale natural gas production severance tax package, they do not plan to take any action on the issue. They are still actively meeting with interest groups to further develop their Marcellus package that includes not just the severance tax, but also a version of pooling, dealing with local ordinances and other issues.
For their part, House Democrats are struggling to get agreement on how to spend any revenue raised by a severance tax. Some Western PA House Democrats don't want to vote against any tax, afraid of the political consequences back home.
Trouble is, Gov. Rendell is counting on $70 million of a prospective Marcellus Shale severance tax to fill the budget hole created by the federal government not approving all of the Medicaid money Pennsylvania expected. If that doesn't happen, he has already said there will be more state worker furloughs. (see separate article on furloughs announced this week)
Updated Information--
Environmental Funding Last Priority For House Democrat Severance Tax Plan
A Marcellus Shale natural gas severance tax proposal by House Democrats circulating this weekend would make funding for environmental programs the last priority of their plan to raise over $300 million in the coming fiscal year.
According to reporting by Capitalwire.com, House Democrats are proposing a $307 million plan for FY 2011-12 which would provide $139 million for the General Fund to balance the state budget, $75 million for additional property tax relief, $37 million for counties and municipalities, $28 million for the Environmental Stewardship (Growing Greener) Fund and $28 million split in seven different ways--
-- 1.6 percent for the state Hazardous Sites Cleanup Fund;
-- 2.4 percent for conservation districts;
-- 1.6 percent for the State Game Commission;
-- 2.4 percent for the Fish and Boat Commission;
-- 1.6 percent for the Low Income Heating and Energy Assistance Program;
-- 1.6 percent for a disaster relief fund; and
-- 0.8 percent to DEP for dams.
The House Democratic plan would divide future revenues using this formula: The first $75 million (50 percent for property tax reduction and the remainder for job-creation tax credit and job-training programs), and of the remaining revenues 60 percent would go to the General Fund and 40 percent divided 9 ways--
-- 16 percent to counties and municipalities;
-- 12 percent for the Environmental Stewardship (Growing Greener) Fund;
-- 1.6 percent for the state Hazardous Sites Cleanup Fund;
-- 2.4 percent for conservation districts;
-- 1.6 percent for the State Game Commission;
-- 2.4 percent for the Fish and Boat Commission;
-- 1.6 percent for the Low Income Heating and Energy Assistance Program;
-- 1.6 percent for a disaster relief fund; and
-- 0.8 percent to DEP for dams.
Again according to Capitalwire.com, the Senate Republicans are proposing a more modest program with a much lower tax rate to provide $153.5 million to the General Fund and $77 million split evenly between local governments and environmental programs.
The Senate Republican plan would divide future revenues by allocating 50 percent for the General Fund, 25 percent for local governments and 25 percent for environmental initiatives.
-- End of Update
Transportation Funding If House Democrats were queasy about voting for a Marcellus Shale severance tax, they really don't want to vote for a transportation funding package that increases vehicle and driver fees which hit their constituents directly.
Electronics Recycling
The only other major environmental bill closer to final action is House Bill 708 (Ross-R-Chester) requiring electronics recycling funded by industry fees was amended and reported from the Senate Environmental Resources and Energy Committee and is now on the Senate Calendar for action. It is expected to be referred to Senate Appropriations Committee.
Click here for a list of other environmental bills and issues pending.
Environmentalists Push Tax On Natural Gas Production
Legislators Failing To Make Headway On Marcellus Shale Tax Natural Gas Extraction Tax Urged
Labor Leaders Voice Support For Drilling Severance Tax NE PA Anti-Drilling Activists Bring Passion To Capitol Amid Protests, Gas Tax Talks Go On The (Gas) Meter is Running Related Stories
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9/27/2010 |
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