Sen. Vincent Hughes (D-Philadelphia), Minority Chair of the Senate Appropriations Committee, and Sen. John Yudichak (D-Luzerne), Minority Chair of the Senate Environmental Resources and Energy Committee, introduced the text of their natural gas severance tax bill Thursday.
Senate Bill 1333 would enact a 5 percent severance tax on natural gas production with the proceeds going to fund education, environmental and economic development.
Proceeds from the severance tax would be deposited into a new Environmental Purpose and Economic Development Fund which would be allocated to these purposes-- $150 million so natural gas drilling on state lands is not necessary, $190 million in FY 2014-15 and $250 million thereafter for economic development and job creation and the remaining funds for basic education funding.
There are no allocations to specific programs, like the Environmental Stewardship (Growing Greener) Fund, nor is there any specific language banning additional leasing of state land for natural gas drilling as some Democrats have advocated.
There is no specific language on what would happen to the existing Act 13 drilling impact fee, although Act 13 has a provision which automatically eliminates the impact fee on drillers if a severance tax is enacted.
Sen. Yudichak and Sen. Hughes originally announced their proposal in March.
