Gov. Wolf’s Chief of Staff Kathleen McGinty told the Pennsylvania Press Club Monday the Governor supports the Act 13 drilling impact fee and it is maintained under his severance tax proposal.

“The governor supports the impact fee. The impact fee is incorporated in his plan and actually he takes it one step better and guarantees those impact dollars to impacted communities at the highest levels they’ve ever been,” said McGinty.

However, severance tax proposals introduced last week advertised as the Governor’s severance tax proposal specifically do not retain the drilling impact fee.  The language says the fee expires on January 1, 2016.

Sen. James Brewster (D-Allegheny) introduced the severance tax proposal as Senate Bill 116 (sponsor summary) and Rep. Margo Davidson (D-Delaware) as House Bill 1142.

As introduced, the Democratic severance tax proposals would also--

-- Reduce the local government share of the severance tax revenue from $123.1 million (the highest level under the Act 13 impact fee) to $113.5 million.

-- Reduce the annual distributions from Gov. Wolf’s original severance tax proposal to agencies like county conservation districts, DEP, Fish and Boat Commission, PennDOT, PEMA, the State Fire Commissioner and the PUC to Act 13 impact levels.

-- Clarifies that severance tax revenue would go to support basic education after allocations for local governments, environmental programs and other Act 13 impact fee disbursements were made.

NewsClips:

Drilling Decline Hurts Funding For DEP Regulators

Wolf Fires Back At Industry For Severance Tax Opposition

Wolf Snaps Back At Critics Of Gas Extraction Tax Plan

McGinty: Time For Severance Tax Action

PA Business Leaders Challenge Proposed Natural Gas Taxes

5/25/2015