House Appropriations Committee Moves Marcellus Shale Severance Tax Proposal

Rep. Dwight Evans (D-Philadelphia), Majority Chair of the House Appropriations Committee, reported out yet another version of a Marcellus Shale natural gas production severance tax. It was adopted as an amendment to Senate Bill 1155 (Eichelberger-R-Blair) by a vote of 18 to 12 with only one negative Democratic vote.
The funds would be distributed through this formula--
For FY 2010-11, 2011-12 and 2012-13 the first $75 million shall go to: $70 million General Fund, $5 million Department of Labor & Industry for job training and for contracting with community colleges and other institutions of higher education for job training programs.
After the above transfers any money remaining shall be allocated as follows:
60 percent to General Fund;
12 percent to the Environmental Stewardship (Growing Greener) Fund;
16 percent to the Local Government Services Account;
1.6 percent to Hazardous Sites Cleanup Fund;
2.4 percent to Conservation District Fund;
1.6 percent to Game Commission;
2.4 percent to Fish & Boat Commission;
1.6 percent to Low Income Home Energy Assistance Program;
1.6 percent to Oil and Gas Environmental Disaster Recovery Account; and
0.8 percent to DEP for dam removal, restoration and repair.
Click here to download amendment.