11/18/24 - 107 New Stories - REAL Environmental & Conservation Leadership In PA: http://tinyurl.com/3zb7jppr
| Share this: | ||||
|
|
|
|
|
|
Marcellus Shale Impact Fee Loses Another Round In 3 Year Battle
|
|
Now in its third year, efforts to adopt a Marcellus Shale fee or severance tax lost another round this week as bipartisan initiatives in both the House and Senate fell apart after Gov. Corbett specifically threatened to veto any Marcellus Shale natural gas impact fee bill sent to his desk before the Governor's Marcellus Shale Commission submits its report on July 22. Interestingly, neither Senate President Pro Tempe Joe Scarnati (R-Jefferson) nor Senate Majority Leader Dominic Pileggi (R-Delaware), both with Marcellus Shale impact fee proposals pending, attended the 11:45 p.m. budget signing ceremony Thursday with Gov. Corbett.
Just hours after Gov. Corbett signed the FY 2011-12 state budget, the Department of Revenue announced the state collected $785.5 million more in revenue than they estimated.
Momentum toward adoption of a Marcellus fee proposal was building significantly over the last several weeks.
Two weeks ago the Senate Environmental Resources and Energy Committee amended and reported out Senate Bill 1100 (Scarnati-R-Jefferson) establishing a Marcellus Shale Impact fee and requiring the development of a model local zoning ordinance to control drilling activities to provide a vehicle for the impact fee issue.This week Rep. David Reed (R-Indiana), Chair of the House Republican Policy Committee, filed an amendment to Senate Bill 303 (MJ White-R-Venango) on the House Calendar which would allocate monies from the Oil and Gas Fund to support the Growing Greener Program and establish a per well Marcellus Shale impact fee. In addition to these proposals, Rep. Marguerite Quinn (R-Bucks) introduced House Bill 1700, Rep. Kate Harper (R-Montgomery) introduced House Bill 1406, Senators John Yudichak (D-Luzerne) and Ted Erickson (R-Delaware) introduced Senate Bill 905, and Rep. Bud George (D-Clearfield) introduced House Bill 833 containing Marcellus Shale fee or severance tax proposals.
In the House this week, Republicans and Democrats proposed more than half a dozen amendments to the Fiscal Code bill-- Senate Bill 907 (Browne-R-Lehigh)-- containing a variety of severance tax and fee proposals, including proposals by Reps. Reed, Quinn and George.
Those amendments were suddenly dropped after the Governor's veto threat.
In the Senate, Sen. Scarnati was still pushing hard for Senate Bill 1100 up until the last minute. Senate Democrats, led by Sen. Yudichak did offer an amendment to the Fiscal Code bill when it returned to the Senate for a concurrence vote, but ultimately were unsuccessful.
“This is the third year in a row we have talked but not acted on the issue of Marcellus Shale. We can’t allow this to be one more year where drillers are let off the hook,” said Sen. Yudichak. “The majority of Pennsylvanians and legislators on both sides of the aisle support a reasonable fee. The industry expects to be asked to do their part, yet Pennsylvania remains the only state that year after year gives this multi-billion dollar industry a free pass.” Last year before the legislative session ended, Senate Republicans and House Democrats, then in control of the House, failed to meet their commitment to adopt a severance tax.
The most recent voter poll on the issue found 69 percent of those polled supported a new tax on drilling companies, including at least 60 percent in each region of the state. Twenty-four percent said they were opposed. Former Gov. Tom Ridge has also encouraged the adoption of a Marcellus Shale severance tax.
Rep. Reed's Proposal
Rep. David Reed (R-Indiana), Chair of the Republican Policy Committee, filed an amendment to Senate Bill 303 (MJ White-R-Venango) on the House Calendar which would allocate monies from the Oil and Gas Fund to support the Growing Greener Program and establish a per well Marcellus Shale impact fee
The proposal was in two parts-- -- Transfers from the Oil and Gas Lease Fund:
-- 25 percent of the available yearly ending balance to the Environmental Stewardship Fund;
-- 7.5 percent of the available yearly ending balance up to $7.5 million to payment in lieu of taxes to communities with State Forest land;
-- 1 percent of the available yearly ending balance up to $3 million to a Catastrophic Fund associated with unconventional wells;
-- $40 million to the Hazardous Site Clean Up Fund. This transfer will be updated annually based on the CPI (inflation rate). -- Marcellus Shale Per Well Impact Fee: -- Fee Schedule: Year 1: $50,000; Year 2: $25,000; Year 3: $25,000; Year 4: $10,000; Year 5: $10,000; Year 6: $10,000; Year 7: $10,000; Year 8: $10,000; Year 9: $10,000; Year 10: $10,000;
-- In cased when a well is re-stimulated (re-fracked) the fee rate reverts back to $10,000 per year for 5 additional years. If an existing well is used to drill to a different strata (Utica) then the impact fee structure resets at year 2 ($25,000).
-- Revenues collected under this fee are distributed as follows: 37.5 percent to host counties; 10 percent to host counties dedicated to EMS and first responders; 25 percent to host municipalities on a per well basis; 17.5 percent to all municipalities within a host county; 10 percent to Conservation Districts. Sen. Yudichak's Proposal
The proposal authored by Sen. Yudichak, Minority Chair of the Senate Environmental Resources and Energy Committee, and offered by Senate Democrats to Senate Bill 907 was based on the framework in Senate Bill 1100 and would establish an annual fee of $17,000 per well, an increase over the $10,000 per well fee proposed by Sen. Scarnati, raising an estimated $205 million in FY 2011-12 and $260 million in FY 2012-13.
Revenues from the impact fee would be distributed to--
-- County Conservation Districts-- $5 million, rather than $7.5 million;
-- Local share would be 55 percent, rather than 60 percent and the statewide distribution would increase to 45 percent from 40 percent. Ten percent of the funds would go to local governments in areas where there is no drilling activity by where they have pipelines and other related facilities;
-- There would be a cap on the amount of funds a municipality could receive equally 50 percent of a municipality's budget;
-- Growing Greener (Environmental Stewardship Fund) would be restored as an eligible program;
-- There would be a hard limit on the amount of money that could be spent on statewaide initiatives like drinking water, wastewater, flood control and dam safety projects administered by the Commonwealth Financing Authority;
-- The revenue going to the Hazardous Waste Cleanup Fund would be increased to 20 percent;
-- It would add weatherization, energy efficiency and energy conservation measures to the list of eligible projects;
-- The Motor License Fund would be removed from the distribution;
-- Office of State Fire Commissioner $2 million;
-- Model Ordinance language is removed from the bill;
-- The Shale Impact Fee Housing Credit is removed; and
-- Would require annual reports from the Public Utility Commission, the administering agency, to the General Assembly, from municipalities receiving funds and to the public.
Shale Drilling Fee Again Off Table In Budget Talks
Impact Fees, Somewhat New IdeaDebate On Gas Drillers' Impact Fee Put Off Natural Gas Levy Vote Pulled From House Agenda No Go On Natural Gas Drilling Impact Fee State Official Argues For More Funds To Keep Eye On Drilling Marcellus Fee Plans Largely Benefit 8 Drilling Counties Related Stories
|
|
7/4/2011 |
| Go To Preceding Article Go To Next Article |
