Wolf renews call for drilling tax

Feb. 01--WILKES-BARRE -- Pennsylvania Gov. Tom Wolf on Thursday visited Luzerne County to once again advocate for a severance tax on natural gas drillers that would be used to invest

$4.5 billion in the state's infrastructure.

The funding would enhance flood protection, rehabilitate blighted areas for development and expand broadband internet services across the state, Wolf said.

"Pennsylvania is the only major natural gas producing state without a severance tax," Wolf said at the Luzerne County Emergency Management Agency building in Wilkes-Barre. "This is an idea whose time has come."

The Marcellus Shale Coalition, which represents the gas industry, quickly responded with opposition to Wolf's proposal, noting drillers already pay an "impact fee" that generates hundreds of millions of dollars a year for the state.

"Imposing additional energy taxes will cost consumers, hurt local jobs, especially among the building and labor trades, and negatively impact investment needed to safely produce clean and abundant energy that's ushering in a new era of manufacturing growth," Marcellus Shale Coalition president David Spigelmyer said in a statement.

Wolf noted even Republican-majority states that are more friendly to the drilling industry have a severance tax to fix infrastructure.

The $4.5 billion would be invested over the next four years and paid for by the tax over a 20-year period, Wolf said.

Wolf said he was "personally tired" of responding to disaster zones and saying "sorry" when infrastructure improvements, like flood walls, could have prevented them.

Rural parts of the state don't have internet, which negatively affects everything from GPS navigation to online doctor consultations, Wolf said.

The Democratic governor has long tried to implement a severance tax by proposing the fee as part of his annual budget.

This is a separate effort as part of a bill that will be sponsored by state Sen. John Yudichak, D-14, Plymouth Twp.

Yudichak said it's time for a "responsible, fair and common sense" severance tax.

He said there is bipartisan support for the bill.

"This is about the safety and security of the citizens of Pennsylvania and the economic future," Yudichak said.

Yudichak said the funds would be used to invest in infrastructure projects that normally take years to fund, like the Solomon Creek flood wall in Wilkes-Barre.

As an example of how infrastructure investments improve the economy, he noted the $90 million invested in the South Valley Parkway in Nanticoke and Hanover Twp. has already sparked $1 billion in private investments on formerly mine-scarred land that will create 4,000 new jobs.

State Rep. Rep Eddie Day Pashinski, D-121, Wilkes-Barre, said Pennsylvania is lucky to have Marcellus Shale gas in the ground.

"Not every state has that," he said.

He said the gas is the "people's resource" and all the people of the state should benefit.

The Republican controlled state legislature has blocked past efforts by Wolf to include a severance tax in his budget.

Yudichak thinks his bill, co-sponsored by Republicans, will pass the Senate. It remains to be clear how the House will vote, he said.

"That will be the challenge," Yudichak said.

Contact the writer:

[email protected]

570-821-2055, @cvbobkal

___

(c)2019 The Citizens' Voice (Wilkes-Barre, Pa.)

Visit The Citizens' Voice (Wilkes-Barre, Pa.) at citizensvoice.com

Distributed by Tribune Content Agency, LLC.