Senate Appropriations Set To Consider $106.6 Million In Annual ‘Forever’ Taxpayer Subsidies For Use Of Natural Gas, Hydrogen

The Senate Appropriations Committee is scheduled to meet today and could consider an amendment to House Bill 1059 that would provide $106.6 million in annual taxpayer subsidies to manufacturing and other businesses that use natural gas and hydrogen in their operations forever into the future.

Called the Pennsylvania Economic Development For A Growing Economy (PA Edge) Tax Credits, the amendment would provide--

-- $50 million annually for using natural gas or “clean hydrogen” as defined by the U.S. Department of Energy in manufacturing;

-- Increase the current tax credit for using natural gas to make petrochemicals or fertilizer from $26,666,668 to $56,666,668 annually;

-- $20 million in tax credits annually to support semiconductor & biomedical manufacturing; and

-- $15 million in tax credits annually to support milk processing facilities.

As drafted in this version of the amendment, the tax credits would continue annually forever.

Click Here for a copy of one version of the amendment.

It seems clear the tax credits are an attempt to try to make natural gas competitive again through taxpayers subsidies after U.S. and Pennsylvania natural gas prices have increased dramatically as a result of their link to world energy markets.

As national business media have reported, natural gas drillers have been focused on keeping natural gas prices high to reward their investors with significant profits.  Read more here.

Range Resources just announced Tuesday it will be cutting back to one drilling rig in 2023 to keep production flat or only slightly growing and limiting capital expenditures.  Read more here.

The Senate Appropriations Committee will hold its meeting off the floor, meaning there is no set time for the meeting.  It will be held in the Senate Chamber and is available online.

(Photos: Be ready for the development of much more natural gas infrastructure across Pennsylvania, courtesy of Bob Donnan.)

NewsClips:

-- PennLive Guest Essay: Tax Credit Bill Gifts Natural Gas, Dirty Hydrogen With $4 Billion In Taxpayer Subsidies - By Patrick McDonnell, PennFuture

-- Spotlight PA - Stephen Caruso: Wolf, PA Lawmakers Look To Push Through Massive Tax Incentives For Hydrogen Production, Natural Gas

-- TribLive Editorial: State Fines Should Be Higher Than Tax Cuts To Penalize Environmental Leaks [10.19.22]

-- Republican Herald Editorial: State Lawmakers Should Adopt Rules That Preclude State Taxpayers From Subsidizing Pollution From Oil & Gas Industry  [10.19.22]

-- Republican Herald Editorial: Dangerous Course For Oil & Gas Well Emissions, Obstructionists Should Get Out Of The Way  [10.17.22]

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-- Gov. Wolf, Senate, House Republicans Again Fail To Hold Conventional Oil & Gas Drillers Accountable For Protecting The Environment, Taxpayers On Hook For Billions [7.19.22]

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-- Penn State Study: Potential Pollution Caused By Road Dumping Conventional Oil & Gas Wastewater Makes It Unsuitable For A Dust Suppressant, Washes Right Off The Road Into The Ditch  [7.26.22]

-- DEP Lists 84 Townships As ‘Waste Facilities’ Where Conventional Oil & Gas Wastewater Has Been Disposed Of By Road Spreading; Municipalities Need To Do Their Due Diligence [12.27.21]

-- On-Site Conventional Oil & Gas Drilling Waste Disposal Plans Making Hundreds Of Drilling Sites Waste Dumps  [6.6.22]

-- Conventional Oil & Gas Drillers Dispose Of Drill Cuttings By ‘Dusting’ - Blowing Them On The Ground, And In The Air Around Drill Sites  [5.2.22]

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-- Study: Industry Data Shows Hazardous Air Pollutants Are ‘Ubiquitous’ In The Natural Gas Transmission System; More Justification For Robust Leak Prevention Programs  [9.21.22]

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-- Conventional Oil & Natural Gas Drilling: An Industrial Machine Moving Across The PA Countryside Leaving Behind Big Liabilities & Spreading Pollution Everywhere It Goes  [8.3.22]

-- House Committee Fails To Address $70 Million In Penalties On Natural Gas Pipelines Or Real Concerns Of People Living Near Gas Production & Distribution Facilities  [9.20.22]

-- DEP: Shell, Pipeline Contractor Assessed $670,000 Penalty For Falcon Ethane Pipeline Construction Violations In Allegheny, Beaver, Washington Counties [10.13.22]

-- DEP Collects $147,250 Penalty From Rice Drilling B LLC For Erosion & Sedimentation Violations In Greene County; DEP Found Rice Had Hundreds Of Other Violations, Including Abandoning Wells Without Plugging Them  [10.6.22]

-- Republican Chair Of House Environmental Committee Believes Opponents Of Natural Gas Infrastructure Projects ‘Just Need To Be Ignored And Politically Ran Over’  [3.28.22]

[Posted: October 26, 2022]  PA Environment Digest