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Senate Adjourns Before Agreement On Severance Tax, House NOT Coming Back Early
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UPDATED STORY. With action on several of Gov. Rendell's key legislative priorities-- transportation funding and alternative energy-- off the table, the only high profile environmental issue left is action on a proposed severance tax on Marcellus Shale natural gas production. What a roller coaster ride this week!
First Senate Republicans refused to meet with the Governor and House Leaders on Monday-- Columbus Day-- saying coming back on Tuesday was good enough.
Senate Republicans maintained all week the bill used by the House to pass their version of the severance tax was unconstitutional and the Senate did not have a vehicle they could use to send any agreed-to tax package back to the House for final action.
After a meeting Tuesday, Gov. Rendell said the Senate Republican position on the constitutionality of the House severance tax bill was "bull." Dueling opinions from the Legislative Reference Bureau were trotted out on the issue by both sides.
House Speaker Keith McCall (D-Carbon) said a Legislative Reference Bureau opinion said the constitutionality problems could be fixed and by the way the Senate had two other House Bills they could use to get the job done if they wanted-- House Bill 786 (D-George) establishing a state energy office within DEP or House Bill 2235 (Vitali-D-Delaware) putting in place a three year moratorium on Marcellus Shale drilling (never in the Senate).
By Wednesday, after another meeting of Senate and House Leaders and the Administration, the Governor told the Capitol Press Corps there was progress in the tax talks and commended Senate Republicans for their willingness to work toward a compromise and "meet in the middle."
A spokesperson for Senate Republicans was puzzled saying he didn't know what changed between Tuesday and Wednesday.
The sides are still very far apart on the tax rate and whether to include the auxiliary issues the Senate wanted on local government regulation of drilling, well spacing and other environmental and inspection issues.
Talks between the Senate, House and Rendell Administration are continuing in spite of the adjournment by the Senate. We were told the Senate does intend to come back to finish action on a Marcellus Shale natural gas severance tax when (or if) there is final agreement on a package. The Senate still has no plans to consider legislation after the election.
The House has already committed to return before the election, if there is an agreement on the tax.
Late Friday the House announced it would be holding voting session on October 18, and possibly more days, to vote on House Bill 2497, the pension reform and Independent Fiscal Office bill.
UPDATED. House Democratic Leadership reversed course suddenly Saturday and said Monday, October 18 would not be a voting session day. The reason for the change, coming in less than 24 hours, was they lacked the votes needed to pass a pension reform bill.
In addition to other pressures, Gov. Rendell is still counting on $70 million from a severance tax to fill the last hole created by the federal government shortchanging the state on Medicaid funds, although September revenues pushed up state revenues for the year over $75 million.
Stay tuned to the PA Environment Digest Twitter Instant Updates and PA Environment Daily Blog for the latest information.
Senate Action On Other Issues
The Senate did take action to pass and send to the Governor bills on alternative energy production on preserved farmland, blight, local government mergers, electric purchases by boroughs and encouraging traditional neighborhoods. (see Bills On Governor's Desk)
They also passed and sent back to the House for concurrence bills requiring the recycling of electronic devices, another bill dealing with alternative energy production on preserved farmland and passed a bill on the recycling of textbooks. (see Senate/House Bills Moving)
Senate Leaders Refuse Call For Holiday Session On Shale Gas Tax
Governor Wants Columbus Day Meeting On Severance Tax Editorial: Political Gas, But No Tax Revenue
Editorial: State Needs Middle Ground On Marcellus Shale Tax Editorial: Severance Tax In Taxpayers' Best Interest
Editorial: PA Needs The Severance Fee Editorial: Meet In Middle On Marcellus Tax Editorial: Legislative Finger Pointing Drillers' Campaign Contributions Draw Concern
Groups Say Corbett Received Most Natural Gas Campaign Money |
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10/18/2010 |
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