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Pennsylvania House of Representatives
11/01/2024 02:27 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?SPick=20150&chamber=H&cosponId=20303
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted: May 27, 2016 11:03 AM
From: Representative Stephen McCarter
To: All House members
Subject: Legislation Providing for a Severance Tax on the Production of Natural Gas
 

In the near future, I will be introducing legislation that would amend Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes to provide for a severance tax on the production of natural gas.

Specifically, this legislation would levy a severance tax at a rate of 5 percent of the gross value of natural gas severed at the wellhead. In addition, the measure would provide that the current Unconventional Gas Well Fee established under Act 13 of 2012 remain in place regardless of the enactment of a severance tax. The revenue generated from the severance tax would be deposited into the General Fund and would be allocated as follows:
  • 25 percent to the Environmental Cleanup Program in the Department of Environmental Protection.
  • 25 percent to counties to fund projects to provide clean energy efficiency upgrades that use renewable sources of energy, including wind, solar, or geothermal sources.
  • 25 percent to counties impacted by oil and gas operation employment reductions to fund projects to transition underemployed and unemployed residents to energy efficiency jobs.
  • 25 percent for sewer and storm water infrastructure redevelopment projects.
As the production of natural gas continues in the Commonwealth, I believe it is important that we provide funding for environmental cleanup, as well as clean energy projects in our counties impacted by the declining fossil fuel industry. It is imperative that we also invest in Pennsylvania’s workforce by providing funding to assist residents living in impacted counties that are underemployed or unemployed transition into jobs in the renewable energy industry. Equally important is the need to provide critical funding to assist our municipalities in their efforts to redevelop their aging water and sewer infrastructure.

I hope you will join me in sponsoring this important legislation.



Introduced as HB2165