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PA Environment Digest
An Update On Environmental Issues In PAEdited By: David E. Hess, Crisci Associates
Winner 2009 PAEE Business Partner Of The Year Award
Harrisburg, Pa March 2, 2015
Analysis: 5 Things To Look For In Gov. Wolf’s Budget Address Next Week
When Gov. Tom Wolf presents his first budget to the General Assembly March 3, environmental
advocates will be looking to see if he will at least make a downpayment on reversing the 12 year
almost steady decline in state environmental funding which has so far claimed over $2.4 billion .
Given the $2.3 billion
General Fund deficit, no one is expecting miracles, but will there be some steps in the right direction?
Here are five things to look for-- hope for-- in the Governor’s budget proposal--
1. Environmental Funding In The Severance Tax Proposal: On February 11, Gov. Wolf
unveiled a natural gas severance tax proposal that would, he said, raise about $1 billion in FY
2016-17. Unfortunately, there was no mention of any funding for environmental restoration
programs and only a passing reference to some “smaller” portion going to DEP for regulating the
oil and gas industry.
The Governor and Acting DEP Secretary John Quigley both acknowledged not all the
details have been worked out in the proposal and many hope it will include environmental
funding afterall.
One other “detail” to be worked out is what happens to funding for environmental programs now benefiting from Act 13 drilling impact fee revenue if that fee goes away.
Eliminating the Act 13 drilling impact fee altogether would put at least $76 million in
funding for these environmental programs at risk--
-- $20.5 million to PennVEST, Commonwealth Financing Authority for water and sewer
projects;
-- $16.4 million to Commonwealth Financing Authority for abandoned mine reclamation,
watershed restoration, water quality monitoring, abandoned oil and gas well plugging, clean
energy programs;
-- $12.3 million for Greenways, recreation trails, open space, natural areas preservation;
-- $8.2 million to the Environmental Stewardship (Growing Greener) Fund for watershed
restoration and other environmental projects;-- $7.5 million annually for county conservation districts, State Conservation Commission;
-- $6 million to DEP for enforcement of clean water and clean air statutes (although there was a
brief mention of this possibility after the announcement);
-- $4.1 million to Hazardous Sites Cleanup Fund; and
-- $1 million to the Fish and Boat Commission for review of drilling permit applications.
Filling in the details on the severance tax, in the right way, would be helpful.
2. Funding To Meet Pennsylvania’s Watershed Cleanup Commitments: Pennsylvania has
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19,761 miles of streams polluted by abandoned mine drainage, agricultural and stormwater
runoff and over 37,761 acres of lakes that do not meet water quality standards, according to
DEP’s latest water quality assessment report .
As DEP’s Citizens Advisory Council noted recently , Pennsylvania also has a specific
obligation, as a result of the federal Clean Water Act and court decisions, to clean up rivers and
streams flowing into the Chesapeake Bay from the Susquehanna and Potomac river basins, aboutone-third of the state.
A U.S. Environmental Protection Agency report last year found Pennsylvania missed its
2013 nitrogen reduction goal by 2 million pounds and sediment reduction milestone by nearly
116 million pounds.
DEP said by 2017 , Pennsylvania must make an additional 10 million pound reduction in
nitrogen and a nearly 212 million pound reduction in sediment to meet our mandated milestones.
Pennsylvania has just 669 days to put in place the best management practices that will
meet these 2017 reduction requirements.
If we do not meet these milestones, the Chesapeake Bay Program requires the federal
government to implement “backstop” control measures of their choosing that will dramatically
affect local communities and businesses.Pennsylvania also has a legacy of almost 220,000 acres of abandoned mines that pollute
more than 5,000 miles of streams in 45 counties across the state.
Between 1995 and 2002, Pennsylvania reclaimed over 33,300 acres of abandoned mine
lands, about 4,125 acres a year. In 2013, DEP’s Bureau of Abandoned Mine Reclamation
completed 647.3 acres of reclamation projects.
As DEP’s Citizens Advisory Council also pointed out recently, in just seven years federal
Abandoned Mine Reclamation Fund monies coming to Pennsylvania to support mine
reclamation work will end.
In 2013 Pennsylvania received $58.5 million in federal AML Fund money, which makes
up the bulk of the funding for reclaiming abandoned mines in the Commonwealth.
Beyond allocating significant funding from any new severance tax and making sure
environmental programs funded by the Act 13 impact fee are made whole, the $43.8 million now
taken out of the Environmental Stewardship (Growing Greener) Fund to pay debt service on the
Growing Greener II bond issue that is long gone should be restored to the program.
3. Investing DCNR’s Oil And Gas Fund In Conservation, Not Operations: Gov. Rendell
began the process of wholesale diversion of Oil and Gas Fund revenues to balance the state’s
budget and to pay the personnel and administrative costs of the State Parks and State Forestry
Programs in DCNR. Gov. Corbett continued that practice.
One step in the right direction would be to propose a multi-year process of weaning
DCNR’s personnel and administrative costs off Oil and Gas Fund revenues and earmark the
revenues in that Fund for the conservation purposes for which they were originally intended.4. Begin Restoring Staffing Levels At DEP, In Particular For Water Programs: Over the
last 12 years, the Department of Environmental Protection has lost about 17 percent of its staff
positions without a commensurate reduction in the numbers of laws and programs it administers.
The FY 2010-11 budget signed by Gov. Rendell reduced General Fund monies to DEP to
less than FY 1994-95 levels erasing nearly 17 years of state funding. In 2009, Gov. Rendell
furloughed or eliminated 333 full time positions at DEP and DCNR because of budget cuts
joining Gov. Robert Casey in being the only Governors to furlough staff from any state
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environmental agency.
While DEP did get a $12.4 million General Fund increase in FY 2014-15, the first
significant increase in 12 years, agency funding is still way below where it had been a decade
ago, again with no commensurate reduction in the programs it has to administer. But DEP still
lost staff positions.
The most significant cuts in staff have come in the water quality programs in the DEPregional offices as well as central office in Harrisburg because many of those positions are
supported by General Fund monies not permit fee revenue.
A helpful step here would be a multi-year plan to restore staff positions to DEP and take
an honest look at what the core functions of DEP are and eliminate those programs and activities
not directly related to environmental protection, restoration and public and worker safety.
5. Keep The Keystone, Recycling, Storage Tank And Other Environmental Funds Whole:
At various times over the last 12 years, Governors and/or the Senate and House have taken
money from a variety of special environmental funds to balance the state budget.
In addition to the Oil and Gas Fund and the Environmental Stewardship (Growing
Greener) Fund, money has been taken out of the Keystone Recreation, Parks and Conservation
Fund, Act 101 Recycling Fund, the State Timber Fund, Alternative Energy Investment Act Program and “borrowed” from the Underground Storage Tank Insurance Fund.
A commitment to keep these funds whole would be another positive step.
Yes, the state’s budget is a jumble of competing interests, pet projects and new priorities,
but no other set of state programs have been cut as long or as deeply over the last 12 years as
environmental programs.
Pennsylvania can do better. Perhaps redirecting the $60 million a year they spend to
support movie productions like Zack and Miri Make A Porno would be a good start.
The environmental community is looking for a fresh start at reversing what has been a
dismal trend over the last 12 years with Governors and the Senate and House of both political
parties.
We hope Tuesday bares at least some fruit or at the very, very least doesn’t hurt the
environment any more.
NewsClips:
Report: PA’s Effective Tax Rate Thru Drilling Fee Is Declining
Op-Ed: We’re Already Taxing Marcellus Shale Gov. Wolf
Op-Ed: Wolf’s Severance Tax Bad News For Gas Industry
Op-Ed: A Sensible Way To Enact A Severance Tax
Op-Ed: A Severance Tax Would Set Back Pennsylvania
Halt In New DCNR Gas Leases Will Improve Oversight
Wolf Tax Proposal Puts Shell Cracker Plant At Risk
Bill Looking To Add Housing Money To Act 13 Funds Audit: State Lawmakers Sitting On $161 Million
GOP Lawmakers Rally Behind Plan To Slow Growth Of State Spending
Wolf Says Goal Is Fairness Amid Talk Of Tax Increases
GOP Leaders Respond To Wolf Budget Rumors
Reed Discusses Expectations For Wolf’ Budget
Pack Your Toothbrush, Going To Be A Long Budget Season
http://blog.pennlive.com/capitol-notebook/2015/02/pack_your_toothbrush_and_jammi.htmlhttp://www.theplsreporter.com/Home/TabId/56/ArtMID/472/ArticleID/580/Reed-discusses-expectations-for-Gov-Wolfs-upcoming-budget-address-.aspxhttp://www.theplsreporter.com/Home/TabId/56/ArtMID/472/ArticleID/581/GOP-leaders-respond-to-Wolf-budget-rumors.aspxhttp://triblive.com/news/adminpage/7837391-74/wolf-tax-statehttp://www.pennlive.com/midstate/index.ssf/2015/02/tapping_budget_brakes_pa_gop_l.html#incart_riverhttp://thetimes-tribune.com/news/audit-state-lawmakers-sitting-on-161-million-1.1838047http://www.pennlive.com/midstate/index.ssf/2015/02/bill_looking_to_fund_low-incom.htmlhttp://triblive.com/business/headlines/7841703-74/gas-wolf-shellhttp://www.pennlive.com/politics/index.ssf/2015/02/cindy_dunn_my_obligation_is_to.htmlhttp://www.post-gazette.com/opinion/2015/02/27/A-severance-tax-on-the-natural-gas-industry-would-set-back-Pennsylvania/stories/201502260015http://www.pennlive.com/opinion/2015/02/heres_the_sensible_way_for_pa.html#incart_riverhttp://www.pennlive.com/opinion/2015/02/a_drilling_ban_and_severance_t.html#incart_riverhttp://www.pennlive.com/opinion/2015/02/were_already_taxing_marcellus.htmlhttp://stateimpact.npr.org/pennsylvania/2015/02/26/report-pennsylvanias-effective-tax-rate-on-drillers-is-declining/http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20826http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=29339http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=30852http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=30852http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=29277
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IFO Estimates Act 13 Drilling Fee Revenue Down In 2014 To $220.4 Million
The Independent Fiscal Office this week released an update on the Act 13 drilling impact fee
revenue saying in 2014 the fee is estimated to generate $220.5 million, down slightly from
$225.7 million in 2013. IFO said that equates to a 2.1 percent effective tax rate.
The effective tax rate, calculated by IFO, has been decreasing steadily since the fee wasfirst imposed from an effective rate of 5.3 percent in 2011, 4.6 percent in 2012, 2.5 percent in
2013 to 2.1 percent in 2014.
The IFO noted 2014 was the first year in which horizontal stripper wells were eligible for
an exemption from the fee after paying the fee for three years which resulted in an $8.7 million
loss in revenue.
Due to the formula used to calculate the impact fee, the IFO cautiously estimated revenue
from the fee in 2015 could drop by as much as $128.6 million-- $61.1 million from a drop in the
number of new wells by 10 percent, $38.2 million because more wells will be operating in year
four and five of their expected production life, and $29.3 million if the average price of natural
gas is below $3.00 per MMBtu in 2014.
The market value of natural gas produced from unconventional (Shale) wells was valuedat $10.5 trillion by IFO. In addition, the market value of natural gas liquids produced in
Pennsylvania was $145.4 million.
The IFO drilling fee update is available online .
NewsClips:
Report: PA’s Effective Tax Rate Thru Drilling Fee Is Declining
Op-Ed: We’re Already Taxing Marcellus Shale Gov. Wolf
Op-Ed: Wolf’s Severance Tax Bad News For Gas Industry
Op-Ed: A Sensible Way To Enact A Severance Tax
Op-Ed: A Severance Tax Would Set Back Pennsylvania
Halt In New DCNR Gas Leases Will Improve Oversight
Wolf Tax Proposal Puts Shell Cracker Plant At Risk
Bill Looking To Add Housing Money To Act 13 Funds
Audit: State Lawmakers Sitting On $161 Million
GOP Lawmakers Rally Behind Plan To Slow Growth Of State Spending
Wolf Says Goal Is Fairness Amid Talk Of Tax Increases
GOP Leaders Respond To Wolf Budget Rumors
Reed Discusses Expectations For Wolf’ Budget
Pack Your Toothbrush, Going To Be A Long Budget Season
DEP Citizens Advisory Council Hearing March 27 On Act 54 Mining Impact Report
The Citizens Advisory Council to the Department of Environmental Protection announced
Thursday it will hold an additional public hearing to accept testimony on the 2008-2013
Underground Coal Mining Impact Report required by the state’s Bituminous Mine Subsidence
and Land Conservation Act (Act 54).
The hearing will take place on March 27, 2015, from 1:00 p.m. to 3:00 p.m. at DEP’s
California District Mining Office, Monongahela Conference Room, 25 Technology Drive,
California Technology Park, Coal Center, PA 15423.
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An additional hearing on the Act 54 Report, scheduled for March 17, 2015, from 12:00
p.m. to 2:00 p.m. in Room 105 of the Rachel Carson State Office Building, 400 Market Street,
Harrisburg, will take place as previously scheduled.
Pre-registration for the hearing scheduled on March 27, 2015, is encouraged to reserve a
time to testify.
Individuals who do not pre-register may testify at the hearing as time allows.Organizations are encouraged to designate one representative to provide testimony. Testimony is
restricted to 10 minutes per speaker and is limited to comments on the Act 54 Report only,
including the data, analysis and findings included in the report.
Individuals are encouraged to submit a written copy of their testimony to the CAC.
To pre-register to testify at the March 27, 2015, hearing, contact Michele Tate, Executive
Director of the CAC, by March 19, 2015, at 717.787.8171 or by email at: [email protected] .
The 2008-2013 Act 54 Report is the fourth in a series required under Act 54. The report
includes information that documents and assesses the surface impacts resulting from both
longwall and traditional room and pillar underground bituminous coal mining, including damage
to surface structures and impacts to aquatic life, pH and conductivity of streams and the loss of
domestic water supplies from mining in Armstrong, Beaver, Cambria, Clearfield, Elk, Greene,Indiana, Jefferson, Somerset and Washington counties.
The report was prepared by the University of Pittsburgh and reviewed by DEP staff prior
to its release on December 30, 2014. DEP is required to submit the impact report to the CAC, the
General Assembly, and the Governor every five years. Three previous Act 54 reports, also
reviewed by the CAC, covered 1993 through 2008.
The University was selected by DEP to complete the report due to the expertise of its
faculty and research staff on all aspects of the effects of mining-related subsidence.
In addition to accepting public testimony, the CAC is inviting the public to submit
written comments on the Act 54 report and is extending the public comment period deadline to
April 14, 2015. Comments may be sent by mail to: DEP Citizens Advisory Council, Rachel
Carson State Office Building, 13th Floor, 400 Market Street, Harrisburg, PA 17105-8459 or by
email to: [email protected] .
The CAC will use the comments in its own review of the Act 54 report and is expected to
issue its assessment and recommendations on the report in May 2015.
The Act 54 Report (2008-2013) is accessible on DEP's website .
Individuals in need of accommodations, as provided for in the Americans with
Disabilities Act, should contact the CAC to discuss their needs at 717-787-8171 or through the
Pennsylvania AT&T Relay Service at 800-654-5984 (TDD) or 800-654-5988 (voice users).
The Citizens Advisory Council was created by statute to advise the Department of
Environmental Protection on environmental issues affecting Pennsylvania. The CAC is
comprised of 18 members who are appointed by the Governor, Senate and House. CAC meetingsare held in Room 105 of the Rachel Carson State Office Building in Harrisburg.
For more information, please visit the DEP Citizens Advisory Council webpage.
PA Environment Digest Google+ Circle, Blogs, Twitter Feeds
PA Environment Digest now has a Google+ Circle called Green Works In PA. Just go to your
Google+ page and search for [email protected] , the email for the Digest Editor
mailto:[email protected]://goo.gl/aydPm0http://goo.gl/nF54zBmailto:[email protected]:[email protected]
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David Hess, and let us join your Circle.
Google+ now combines all the news you now get through the PA Environment Digest,
Weekly, Blog, Twitter and Video sites into one resource.
You’ll receive as-it-happens postings on Pennsylvania environmental news, daily
NewsClips and links to the weekly Digest and videos.
Also take advantage of these related services from Crisci Associates --
PA Environment Digest Twitter Feed : On Twitter, sign up to receive instant updates from:
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and announcements on environmental topics in Pennsylvania of immediate value. Sign up and
receive as they are posted updates through your favorite RSS reader. You can also sign up for a
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are posted updates through your favorite RSS reader. You can also sign up for a once daily
email alerting you to new items posted on this blog.
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Twitter feed to get instant updates on other news from in and around the Pennsylvania State
Capitol.
Governor’s Schedule
Gov. Tom Wolf's work calendar will be posted each Friday and his public schedule for the day
will be posted each morning. Click Here to view Gov. Wolf’s Weekly Calendar and Public
Appearances.
Senate/House Agenda/Session Schedule/Bills Introduced
Here are the Senate and House Calendars and Committee meetings showing bills of interest as
well as a list of new environmental bills introduced--
Bill Calendars
House (March 2): Click Here for full House Bill Calendar.
Senate (March 2): Senate Bill 201 (Schwank-D-Berks) allowing the the location of agriculture-
related business on preserved farmland ( sponsor summary ); Senate Bill 289 (Fontana-D-
Allegheny) funding for sewage lateral line improvements and repair ( sponsor summary ); Senate
Bill 307 (Yudichak-D-Luzerne) providing for an independent counsel for the Environmental
http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=0307http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=0307http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20150&cosponId=15457http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=0289http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20150&cosponId=15642http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2015&sInd=0&body=S&type=B&bn=201http://www.legis.state.pa.us/WU01/LI/SC/HC/0/RC/SCHC.HTMhttp://www.governor.pa.gov/Schedule/Pages/schedule.aspx#.VNVGE0K4lBxhttp://www.twitter.com/PaCapitolDigesthttp://www.crisciassociates.com/category/capitol-blog/http://www.crisciassociates.com/category/environment-blog/http://www.twitter.com/http://www.crisciassociates.com/
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Quality Board ( sponsor summary ); Senate Bill 375 (Scarnati-R-Jefferson) establishing a Health
Advisory Panel on Shale Gas Extraction ( sponsor summary ); Senate Bill 385 (Pileggi-R-
Delaware) will modernize the Pennsylvania Transit Revitalization Investment District (TRID)
Act ( sponsor summary ). Click Here for full Senate Bill Calendar.
Committee Meeting Agendas This Week
House: the State Government Committee meets to consider House Bill 296 (Evankovich-R-
Allegheny) beneficial use of steel and blast furnace slag ( sponsor summary ); the Game and
Fisheries Committe e information meeting to receive the Fish and Boat Commission’s annual
report; the House Democratic Policy Committee hearing on carbon neutrality. Click
Here for full House Committee Schedule.
Senate: the Local Government and Environmental Resources and Energy Committees hold
a joint hearing on the opportunities created by the Act 13 drilling impact fee for counties,
municipalities, conservation districts and local economic development agencies Click
Here
for full Senate Committee Schedule.
Other: Governor’s Budget Address Tuesday; Joint Legislative Air And Water Pollution
Control and Conservation Committee presentation by Brian Wagner, PA Council of Trout
Unlimited.
Bills Pending In Key Committees
Here are links to key Standing Committees in the House and Senate and the bills pending in
each--
House
Appropriations
Education
Environmental Resources and Energy
Consumer Affairs
Gaming Oversight
Human Services
Judiciary
Liquor Control
Transportation
Links for all other Standing House Committees
Senate
Appropriations
Environmental Resources and Energy
Consumer Protection and Professional Licensure
Community, Economic and Recreational Development
Education
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Judiciary
Law and Justice
Public Health and Welfare
Transportation
Links for all other Standing Senate Committees
Bills Introduced
The following bills of interest were introduced this week--
Adopt-A-River: House Bill 519 (Sturla-D-Lancaster) establishing the Adopt-A-River Program
within DCNR ( sponsor summary ).
Severance Tax: House Bill 526 (Conklin-D-Centre) would impose a 5 cents per volume
severance tax dedicated solely to facilitate the growth of natural gas transportation systems
( sponsor summary ) and House Bill 528 (Conklin-D-Centre) would impose a 10 cents per
volume severance tax and dedicate up to $300 million in revenue to the Low-Income EnergyAssistance Program and any remaining revenue would be dedicated to the Property Tax/Rent
Rebate Program ( sponsor summary ).
Stream Buffers: Senate Bill 560 (Rafferty-R-Montgomery) which would authorize
municipalities to adopt regulations requiring riparian buffers and the Department of
Environmental Protection to enforce a 100 foot stream buffer requirement ( sponsor summary ).
Session Schedule
Here is the latest voting session schedule for the Senate and House--
Senate
March 2, 3 (Budget Address), 4
April 13, 14, 15, 20, 21, 22
May 4, 5, 6, 11, 12, 13
June 1, 2, 3, 8, 9, 10, 15, 16, 17, 18, 22, 23, 24, 25, 26, 29, 30
House
March 2, 3 (Budget Address), 4, 30, 31April 1, 13, 14, 15, 20, 21, 22
May 4, 5, 6, 11, 12, 13
June 1, 2, 3, 8, 9, 10, 15, 16, 17, 18, 22, 23, 24, 25, 26, 27, 28, 29, 30
Senate/House Bills Moving
The following bills of interest saw action this week in the House and Senate--
http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20150&cosponId=15912http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=0560http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20150&cosponId=16501http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=H&type=B&bn=0528http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20150&cosponId=16875http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=H&type=B&bn=0526http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20150&cosponId=16334http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=H&type=B&bn=0519http://www.legis.state.pa.us/cfdocs/CteeInfo/StandingCommittees.cfm?CteeBody=Shttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=19&CteeBody=Shttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=33&CteeBody=Shttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=29&CteeBody=Shttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=39&CteeBody=S
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House
Natural Gas Competition: House Bill 57 (Payne-R-Dauphin) relating to improving natural gas
retail competition by providing a more frequent mechanism for truing up natural gas costs
(
sponsor summary
) was reported out of the House Consumer Affairs Committee and Tabled.
Senate
Shale Gas Health Panel: Senate Bill 375 (Scarnati-R-Jefferson) establishing a Health Advisory
Panel on Shale Gas Extraction ( sponsor summary ) was reported out of the Senate Health and
Welfare Committee and is now on the Senate Calendar for action.
Extend Natural Gas Service: Senate Bill 214 (Yaw-R-Lycoming) promoting the expansion of
natural gas service into unserved or underserved areas ( sponsor summary ) was reported out of
the Senate Environmental Resources and Energy Committee and was referred to the Senate
Appropriations Committee.
EQB Counsel: Senate Bill 307 (Yudichak-D-Luzerne) providing for an independent counsel for
the Environmental Quality Board ( sponsor summary ) was reported out of the Senate
Environmental Resources and Energy Committee and is now on the Senate Calendar for action.
Sewer Laterals: Senate Bill 289 (Fontana-D-Allegheny) funding for sewage lateral line
improvements and repair ( sponsor summary ) was reported out of the Senate Environmental
Resources and Energy Committee and is now on the Senate Calendar for action.
Preserved Farmland Uses: Senate Bill 201 (Schwank-D-Berks) allowing the the location of
agriculture-related business on preserved farmland (
sponsor summary
) was amended and
reported out of the Senate Agriculture and Rural Affairs Committee and is now on the Senate
Calendar for action.
Transit-Related Development: Senate Bill 385 (Pileggi-R- Delaware) will modernize the
Pennsylvania Transit Revitalization Investment District (TRID) Act ( sponsor summary ) was
amended and reported from the Senate Appropriations Committee and is now on the Senate
Calendar for action.
News From The Capitol
Marcellus Shale Health Panel Bill Advances In Senate
Senate Bill 375 (Scarnati-R-Jefferson), creating a Health Advisory Panel on Shale Gas
Extraction was reported out of the Senate Public Health and Welfare Committee and is now on
the Senate Calendar for action.
The panel would be tasked with thoroughly investigating and studying advancements in
science, technology and public health data in order to provide Pennsylvania elected officials,
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regulators and the general public with information, analysis and recommendations regarding the
safe, efficient and environmentally responsible extraction and use of unconventional natural gas
reserves in the Commonwealth.
“There has been much discussion regarding the potential effects of Marcellus Shale
drilling on public health and safety,” said Sen. Scarnati. “The creation of an advisory panel
composed of experts from a wide range of fields including doctors, scientists, academics andindustry leaders will provide Pennsylvania with a critical asset in addressing any current or
future impacts arising from the development of the Marcellus Shale.”
The creation of a permanent health advisory panel was a suggestion of the Governor's
Marcellus Shale Advisory Commission .
The panel would consist of nine members including the Secretaries of Health and
Environmental Protection, as well as individuals to be appointed by the Governor, President Pro
Tempore of the Senate, Speaker of the House, and the House and Senate Minority Leaders.
NewsClip: Senate Panel Approves Shale Gas Health Panel
Senate Environmental Committee OKs Bill To Expand Natural Gas Service
The Senate Environmental Resources and Energy Committee approved legislation Tuesday to
extend natural gas service into unserved or underserved areas, on sewer lateral funding and an
independent counsel for the Environmental Quality Board. The bills include--
-- Senate Bill 214 (Yaw-R-Lycoming) promoting the expansion of natural gas service into
unserved or underserved areas ( sponsor summary );
-- Senate Bill 307 (Yudichak-D-Luzerne) providing for an independent counsel for the
Environmental Quality Board ( sponsor summary ); and
-- Senate Bill 289 (Fontana-D-Allegheny) funding for sewage lateral line improvements and
repair ( sponsor summary ).
“The impetus for this bill (Senate Bill 214) started in Bradford County a few years ago,”
Sen. Yaw said. “The Center for Rural Pennsylvania
held a hearing and during the course of that
hearing it became apparent that a significant part of Pennsylvania was not served by natural gas,
although we’re sitting on one of the largest deposits of natural gas in the world. This bill will
provide the opportunity for residents to obtain gas service should they choose that source of
energy.”
"There is widespread interest in seeing locally produced natural gas used locally to
benefit our area businesses and homeowners," Sen. Yaw added.
Sen. Gene Yaw (R-Lycoming) serves as Majority Chair and Sen. John Yudichak
(D-Luzerne) serves as Minority Chair.
Legislative Audit Shows House, Senate Have $132.6 Million Surplus
The bicameral, bipartisan Legislative Audit Advisory Commission, chaired by Rep. Mark Keller
(R-Perry), Monday voted to accept the audit report of the General Assembly’s finances for the
2013-14 fiscal year as conducted by an independent certified public accounting firm.
The audit shows as of June 30, 2014, the Senate and House had a surplus of $132.6
million in their legislative accounts.
“While the numbers in the audit are already seven months out-of-date, reserve funds are
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being spent down in large part due to the governor’s budget vetoes,” Rep. Keller said. “But it is
important to remember that an adequate reserve be maintained to ensure the independent and
continued operation of the General Assembly in the event of a government shutdown, including
one created by a budget stalemate, for example.”
The annual audit of the various legislative departments and legislative service agencies
revealed a reserve of $161,436,941, as of June 30, 2014. The audit was carried out by Mitchell &Titus, LLP, of Philadelphia.
Below is a breakdown of the June 30, 2014, reserves included in the audit:
-- Senate – $53,747,892
-- House of Representatives – $72,944,882
-- Legislative Reference Bureau – $6,743,307
-- Legislative Budget and Finance Committee – $1,181,938
-- Legislative Data Processing Committee – $14,507,174
-- Joint State Government Commission – $649,199
-- Local Government Commission – $432,354
-- Legislative Air and Water Pollution Control Commission – $260,893
-- LAAC – $189,450-- Independent Regulatory Review Commission – $1,047,384
-- Capitol Preservation Committee – $3,468,296
-- Independent Fiscal Office – $2,046,050
-- Pennsylvania Legislative Reapportionment Commission – $1,275,554
-- Commonwealth Mail Processing Center – $2,942,568.
“We continue to be as open and transparent as possible with Pennsylvania citizens
regarding the findings of the annual audit. Once again, the audit report is fully accessible online,”
added Rep. Keller.
The full audit and report, along with audits and reports dating back to 2007, can be
viewed on the General Assembly website .
In July of last year, Gov. Corbett vetoed $65 million
in General Fund appropriations for
the Senate and House beginning July 1, 2014. On election day in November, the Senate
Republicans and Democrats filed a lawsuit challenging Gov. Corbett’s veto actions.
The members of the commission are: Keller, Rep. Florindo Fabrizio (D-Erie), Sen.
Patrick Browne (R-Lehigh), Sen. Lawrence Farnese (D-Philadelphia), Jacqueline Whitcomb
(House appointee), Merritt Reitzel (Senate appointee) and Ira Weiss (Senate appointee).
NewsClips:
Audit: State Lawmakers Sitting On $161 Million
GOP Lawmakers Rally Behind Plan To Slow Growth Of State Spending
Report: PA’s Effective Tax Rate Thru Drilling Fee Is Declining
Op-Ed: We’re Already Taxing Marcellus Shale Gov. Wolf Op-Ed: Wolf’s Severance Tax Bad News For Gas Industry
Op-Ed: A Sensible Way To Enact A Severance Tax
Op-Ed: A Severance Tax Would Set Back Pennsylvania
Halt In New DCNR Gas Leases Will Improve Oversight
Wolf Tax Proposal Puts Shell Cracker Plant At Risk
Bill Looking To Add Housing Money To Act 13 Funds
Wolf Says Goal Is Fairness Amid Talk Of Tax Increases
http://triblive.com/news/adminpage/7837391-74/wolf-tax-statehttp://www.pennlive.com/midstate/index.ssf/2015/02/bill_looking_to_fund_low-incom.htmlhttp://triblive.com/business/headlines/7841703-74/gas-wolf-shellhttp://www.pennlive.com/politics/index.ssf/2015/02/cindy_dunn_my_obligation_is_to.htmlhttp://www.post-gazette.com/opinion/2015/02/27/A-severance-tax-on-the-natural-gas-industry-would-set-back-Pennsylvania/stories/201502260015http://www.pennlive.com/opinion/2015/02/heres_the_sensible_way_for_pa.html#incart_riverhttp://www.pennlive.com/opinion/2015/02/a_drilling_ban_and_severance_t.html#incart_riverhttp://www.pennlive.com/opinion/2015/02/were_already_taxing_marcellus.htmlhttp://stateimpact.npr.org/pennsylvania/2015/02/26/report-pennsylvanias-effective-tax-rate-on-drillers-is-declining/http://www.pennlive.com/midstate/index.ssf/2015/02/tapping_budget_brakes_pa_gop_l.html#incart_riverhttp://thetimes-tribune.com/news/audit-state-lawmakers-sitting-on-161-million-1.1838047http://www.pacapitoldigest.com/newsletter/default.asp?NewsletterArticleID=30394http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=29338http://www.legis.state.pa.us/cfdocs/CteeInfo/laac.cfm
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GOP Leaders Respond To Wolf Budget Rumors
Reed Discusses Expectations For Wolf’ Budget
Pack Your Toothbrush, Going To Be A Long Budget Season
Sen. Hutchinson To Introduce Bills Supporting PA Timber Industry
Citing the important role that timber operations play in the Commonwealth’s economy, Sen.
Scott Hutchinson (R-Venango) is introducing a bill and a resolution that will protect and promote
the state’s forest areas and the thousands of family-sustaining jobs provided by the wood
harvesting industry.
“Pennsylvania has more than 17 million acres of hardwood forest and 25,000 miles of
streams, making up almost 60 percent of the Commonwealth,” Sen. Hutchinson said. “The
forests of Pennsylvania are also home to a multi-billion dollar forest-product industry that
employs more than 60,000 people. A resource that provides so much to the state and its citizens
must be protected.”
Sen. Hutchinson is introducing a bill that would provide for a sales and use tax exemption
for timber and logging operations and a resolution to reinstate a legislative Forestry Task Forceunder the Joint Legislative Air and Water Pollution Control and Conservation Committee , which
he chairs.
Sen. Hutchinson has been an active proponent of the timbering industry, as recognized by
his reappointment on February 17 by Senate President Pro Tempore Joe Scarnati to serve on the
Pennsylvania Hardwoods Development Council . The council is responsible for the development,
expansion and promotion of the hardwoods industry in Pennsylvania.
As the number one state in the nation for hardwoods production, the council plays an
important role in promoting Pennsylvania's forests and wood products both domestically and
abroad.
“On behalf of the 260 companies represented by the Pennsylvania Forest Products
Association
and 60,000 employees supported by the state’s forest products industry, I want to
thank Sen. Hutchinson for his continued leadership in working to ensure that Pennsylvania
continues to be a good place for our companies to do business,” said PFPA Executive Director
Paul Lyskava.
Overall, sales from the Pennsylvania wood industry in 2012 was estimated to be $11.5
billion, with the total economic impact of Pennsylvania's industry estimated at about $19 billion.
Sen. Hutchinson said his tax exemption bill would encourage growth in that industry.
His legislation would allow timber and logging businesses to claim a sales and use tax exemption
on items like machinery, equipment or supplies in a manner similar to other Pennsylvania
industries.
“From tractors to feed, silos to fertilizers, traditional farming and agriculture receives taxexemptions for many aspects of their industry. This allows them to thrive and provide more for
the people of Pennsylvania,” Sen. Hutchinson said. “The timber and logging industry is
currently not eligible for sales and use tax exemptions. Expanding those exemptions would
provide an economic incentive for many businesses to make capital improvements or major
equipment purchases that would enable them to expand and create jobs.”
Lyskava said PFPA strongly endorses the tax exemption and agreed that it benefits the
industry.
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“In Pennsylvania, there is a sales and use tax exclusion for purchases of equipment,
material and services used in both manufacturing/processing operations and agricultural
operations. No such sales and use tax exclusion currently exists for equipment and material
purchases used in commercial timbering operations,” he said. “As a result, loggers are required
to pay sales tax on purchases of equipment that is similar or even identical to tax-exempt
equipment used at both farms and sawmills. This bill will promote the purchase of updated andmodern equipment that will provide additional safety to loggers and improve the efficiency of
the state’s logging industry.”
Sen. Hutchinson said his resolution would reinstate the Forestry Task Force, which had
been in place for many years, but lapsed during the last legislative session.
“The task force will be a bicameral and bipartisan committee that will investigate and
look to improve the current state of Pennsylvania’s forests and provide long-term forest
management strategies,” Sen. Hutchinson said. “The task force will consider topics such as
invasive species, local government interaction, reinvigorating the timber harvesting industry, and
developing a state forest management plan.”
Rep. Conklin Introduces 2 Natural Gas Severance Tax Proposals
Rep. Scott Conklin (D-Centre) introduced not one but two natural gas severance tax proposals
this week--
-- House Bill 526 would impose a 5 cents per volume severance tax dedicated solely to facilitate
the growth of natural gas transportation systems ( sponsor summary ); and
-- House Bill 528 would impose a 10 cents per volume severance tax and dedicate up to $300
million in revenue to the Low-Income Energy Assistance Program and any remaining revenue
would be dedicated to the Property Tax/Rent Rebate Program ( sponsor summary ).
NewsClips:
Report: PA’s Effective Tax Rate Thru Drilling Fee Is Declining
Op-Ed: We’re Already Taxing Marcellus Shale Gov. Wolf
Op-Ed: Wolf’s Severance Tax Bad News For Gas Industry
Op-Ed: A Sensible Way To Enact A Severance Tax
Op-Ed: A Severance Tax Would Set Back Pennsylvania
Halt In New DCNR Gas Leases Will Improve Oversight
Wolf Tax Proposal Puts Shell Cracker Plant At Risk
Bill Looking To Add Housing Money To Act 13 Funds
Audit: State Lawmakers Sitting On $161 Million
GOP Lawmakers Rally Behind Plan To Slow Growth Of State Spending
Wolf Says Goal Is Fairness Amid Talk Of Tax Increases
GOP Leaders Respond To Wolf Budget Rumors Reed Discusses Expectations For Wolf’ Budget
Pack Your Toothbrush, Going To Be A Long Budget Season
House Democratic Policy Committee Hearing March 2 On Climate Change
The House Democratic Policy Committee will hold a hearing on March 2 starting at 10:00 on
what Pennsylvania can do to achieve carbon neutrality.
http://www.pahouse.com/policycommittee/http://blog.pennlive.com/capitol-notebook/2015/02/pack_your_toothbrush_and_jammi.htmlhttp://www.theplsreporter.com/Home/TabId/56/ArtMID/472/ArticleID/580/Reed-discusses-expectations-for-Gov-Wolfs-upcoming-budget-address-.aspxhttp://www.theplsreporter.com/Home/TabId/56/ArtMID/472/ArticleID/581/GOP-leaders-respond-to-Wolf-budget-rumors.aspxhttp://triblive.com/news/adminpage/7837391-74/wolf-tax-statehttp://www.pennlive.com/midstate/index.ssf/2015/02/tapping_budget_brakes_pa_gop_l.html#incart_riverhttp://thetimes-tribune.com/news/audit-state-lawmakers-sitting-on-161-million-1.1838047http://www.pennlive.com/midstate/index.ssf/2015/02/bill_looking_to_fund_low-incom.htmlhttp://triblive.com/business/headlines/7841703-74/gas-wolf-shellhttp://www.pennlive.com/politics/index.ssf/2015/02/cindy_dunn_my_obligation_is_to.htmlhttp://www.post-gazette.com/opinion/2015/02/27/A-severance-tax-on-the-natural-gas-industry-would-set-back-Pennsylvania/stories/201502260015http://www.pennlive.com/opinion/2015/02/heres_the_sensible_way_for_pa.html#incart_riverhttp://www.pennlive.com/opinion/2015/02/a_drilling_ban_and_severance_t.html#incart_riverhttp://www.pennlive.com/opinion/2015/02/were_already_taxing_marcellus.htmlhttp://stateimpact.npr.org/pennsylvania/2015/02/26/report-pennsylvanias-effective-tax-rate-on-drillers-is-declining/http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20150&cosponId=16501http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=H&type=B&bn=0528http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20150&cosponId=16875http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=H&type=B&bn=0526
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There will be eight speakers, including world-class climate scientist Richard Alley,
controversial Cornell Professor Tony Ingraffa and PUC Commissioner James Cawley.
Rep. Greg Vitali (D-Delaware), Minority Chair of the House Environmental Resources
and Energy Committee, will lead the hearing.
The hearing will be in Room 418 of the Main Capitol. Click Here to watch the hearing
live.
Senate Hearing March 3 On Opportunities Created By Act 13 Drilling Fees
The Senate Local Government and Environmental Resources and Energy Committees are
scheduled to hold a joint hearing March 3 on the opportunities created by the Act 13 drilling
impact fee for counties, municipalities, conservation districts and local economic development
agencies.
The hearing will be held in Hearing Room 1 of the North Office Building starting at 8:30.
Sen. Scott Hutchinson (R-Venango) serves as Majority Chair of the Local Government
Committee and Sen. Rob Teplitz (D-Dauphin) servers as Minority Chair.
Sen. Gene Yaw (R-Lycoming) serves as Majority Chair of the Environmental Resourcesand Energy Committee and Sen. John Yudichak (D-Luzerne) serves as Minority Chair.
News From Around The State
CBF, Stroud Water Center Applaud Introduction Of New Stream Buffer Bill
On Wednesday, Sen. John Rafferty (R-Montgomery) introduced Senate Bill 560 which would
authorize municipalities to adopt regulations requiring riparian buffers and the Department of
Environmental Protection to enforce a 100 foot stream buffer requirement.
The Chesapeake Bay Foundation’s Pennsylvania
Executive Director Harry Campbelltoday applauded the introduction of SB 560 saying, “Pennsylvania has over 19,000 miles of
rivers and streams that are considered impaired due to pollution. Forest buffers are one of the
most cost effective practices to reduce pollution and protect water quality.
“While Pennsylvania has set goals to increase the acreage of forest buffers within the
Chesapeake Bay watershed, it is not on track to meet those goals. This legislation would provide
an important new tool to accelerate protection and restoration of all our local rivers and streams.
“CBF would like to thank Senators Rafferty, Teplitz, Alloway, Hughes, Costa, Leach and
Schwank and the other cosponsors for moving this legislation forward.”
Riparian buffers are the most effective best practices for protecting waterways,
communities, and natural resources.
“We reviewed over 230 scientific studies and concluded that streamside forest buffersmust be at least 100 feet wide on both side of the stream to adequately protect its physical,
chemical, and biological integrity. So, this proposed legislation is consistent with the latest
science,” said Bernard W. Sweeney, Ph.D. Director Stroud Water Research Center , based in
Avondale, PA.
A sponsor summary is available online .
Susquehanna River Basin Commission Meeting March 5 In Hershey
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The Susquehanna River Basin Commission is conducting its next business meeting March 5 at
9:00 a.m., Hershey Lodge, Convention Center Entrance, Crystal A Room (Confection Hall
Level), 325 University Drive, Hershey, Pa. 17033. The meeting is open to the public.
The commissioners will act on several agenda items, including 15 project applications;
revised FY-2016 budget; a resolution to encourage the use of dry cooling technology for powergeneration and other facilities for the conservation of the waters of the Susquehanna River Basin;
notice for Four Seasons Golf Course project sponsor to appear and show cause before the
Commission; regulatory compliance matter with Cabot Oil & Gas Corporation; and contracts and
grants.
SRBC will also host an informational presentation of interest to the Lower Susquehanna
Subbasin area.
Opportunities for public comment on project applications were provided previously;
however, SRBC may accept general public comments at the conclusion of the meeting.
SRBC’s rules of conduct for quarterly business meetings include:
— All persons must sign-in and show photo identification.
— Signage, posters, banners or other display media will be permitted only in designated areas. — The press will be permitted to set up and use video and recording devices in a designated
area.
— The public will be permitted to use small, hand-held devices that remain in their possession
and are used in a non-disruptive manner.
To view the complete agenda with the list of project applications and the full set of rules
of conduct, visit SRBC’s Public Participation webpage.
Capital Region Water Board Rejects Sale Of Clarks Valley Land
Capital Region Water’s Board of Directors voted 3-1 Wednesday to reject the proposed
Agreement of Sale for 384 acres of property in Clarks Valley in Dauphin County at their
February meeting. This decision comes after almost 24 months of discussions, a two month
public comment period, and two public hearings.
“We truly appreciate the public comments that we’ve received concerning this proposed
sale”, said Capital Region Water CEO Shannon Williams. “The comments received from our
customers, neighbors, and partners during the deliberation of this sale overwhelmingly supported
the long-term conservation of Capital Region Water’s property in Clarks Valley.”
Under the proposed Agreement of Sale, the land would have been purchased by The
Conservation Fund using funds from Fort Indiantown Gap’s Army Compatible Use Buffer
Program and the Game Commission and transferred to the Game Commission for permanent
ownership including oil, gas, mineral and timber rights.“While selling this land to the Pennsylvania Game Commission would have led to
long-term conservation, this decision was weighted by the fact that the property would no longer
be managed by people directly affected by the quality of water flowing past the property, as it
was originally intended over 70 years ago when the property was acquired. Capital Region Water
takes great pride in acting as the steward of our community’s drinking water as was reflected in
the process leading up to the vote last night,” said Williams.
Chairman Marc Kurowski expressed interest in proceeding with the Agreement of Sale as
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a means to further evaluate next steps in the best interest of Capital Region Water while retaining
the ability to accept the offer proposed.
Under the proposal, 150 days were provided to complete a due diligence review further
determining whether the sale was in the best interest of Capital Region Water in terms of the
water system, water quality, land preservation, and public interest.
The Board thanked The Conservation Fund, Fort Indiantown Gap, and the PennsylvaniaGame Commission for their efforts negotiating a potential sale of the property. As trusted
partners, their goals are closely aligned in ensuring the protection of Capital Region Water’s land
and water resources for current and future generations.
Recreational use of the property will not change as this parcel has been enrolled under the
Public Access Program – Cooperative Forest Game Use Project Agreement with the PA Game
Commission since 2001. Hunting and hiking are currently permitted on the parcel and will
continue into the future.
For more information, visit the Capital Region Water’s website. Customers with
questions and concerns can also contact Capital Region Water by calling 888-510-0606 or by
emailing: [email protected] .
NewsClips:Capital Region Water Land Sale Rejected By Board
Capital Region Water Would Gain From Land Sale
DEP: Newport Borough Water Authority Agrees To Address Drinking Water Violations
The Department of Environmental Protection Tuesday announced the Newport Borough Water
Authority in Newport, Perry County, has signed a consent order and agreement (COA) to address
drinking water treatment, monitoring and reporting violations that occurred in 2013 and 2014.
“DEP took this action not only to ensure the safety of the community’s drinking water
supply, but to address ongoing shortcomings of the authority’s operation of its new filter plant,”
DEP Southcentral Regional Director Lynn Langer said. “A state-of-the-art plant is not effective
if it’s not operated properly.”
DEP issued a public water supply permit to the authority in March 2013, authorizing
limited-term operation of the new Juniata River filter plant. The authority operated the plant for
75 days during the next 13 months.
When DEP conducted an evaluation and sanitary inspection of the filter plant in April
2014, it discovered several regulatory and public water supply permit violations as well as
numerous operational concerns including:
— The authority failed to accurately record filtered water turbidity levels during the 13 months it
operated the plant in 2013 and 2014. Turbidity is a measurement of the cloudiness of the water
and is an indicator of water quality. — The authority’s former operator falsely reported to DEP that filtered water turbidity had been
recorded and the readings were all acceptable during the months of October and December 2013
and March 2014.
— The authority failed to accurately record and report chlorine residuals necessary to provide
reliable inactivation of Giardia through disinfection.
— The authority’s operation of several aspects of the facility did not comply with standards set
forth in the public water supply permit.
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— Newport failed to notify the public of these issues.
DEP discovered the violations in April 2014 and immediately notified Newport Borough
Water Authority. Last June, the authority agreed to shut down the filter plant until DEP agrees
that it can be returned to service.
Under the COA, the authority is required to address the violations by:
— Immediately retaining the services of a professional engineer to address each of the violationsidentified by DEP in its filter plant evaluation.
— Providing professional engineering oversight of the daily operation of the filter plant.
— Hiring a new certified water system operator.
— Providing notice to the public regarding the issues.
— Paying a civil penalty of $40,000.
If Newport fails to complete the corrective actions according to the schedule spelled out
in the COA, the authority will be required to pay a series of additional civil penalties or may be
subject to other enforcement.
Meanwhile, the authority has been providing drinking water from several of its permitted
wells. Due to the closure of the treatment plant, there are no ongoing health risks as a result of
the violations.
WPCAMR: Film About Operation Scarlift Mine Reclamation Program Now Online
The Western Coalition for Abandoned Mine Reclamation made available at film on YouTube
produced by the Department of Environmental Resources in 1970 to describe the impact of
Operation Scarlift in cleaning up Pennsylvania’s abandoned mines, putting out mine fires and
deal with mine subsidence damage.
On May 16, 1967, Pennsylvania voters approved a $500 million environmental bond
issue. A portion of this program was to be expended for the elimination of stream pollution from
abandoned coal operations, air pollution from burning coal refuse banks, alleviation of
subsidence from abandoned mining operations and elimination of underground mine fires.
On January 19, 1968, the legislature enacted the "Land and Water Conservation and
Reclamation Act" (1968 P.L.996, No.443) which directed $200 million of that bond issue toward
abandoned mine reclamation and mine drainage abatement within the Commonwealth.
The abandoned mine reclamation portion of the act, known as "Project 500," "Operation
Scarlift," or "The Bond Issue Program," was administered initially by the Department of Mines
and Mineral Industries and subsequently by the Department Environmental Resources (now
Department of Environmental Protection).
In 1976, Department Environmental Resources staff prepared the paper Operation
Scarlift - Mine Drainage Abatement
and presented it at the ASCE Annual Convention and
Exposition.Utilizing Operation Scarlift bond funding, between 1968 and 1981 the department spent
$78,000,000 to complete 500 stream pollution abatement projects, and an additional $64,000,000
to extinguish 76 underground mine fires, stabilize 156 areas subjected to mine subsidence and
prevent air pollution at 28 burning refuse banks. The list of projects completed under Operation
Scarlift is contained in the Bond Issue Report .
Click Here to watch the film. Click Here to learn more about this part of Pennsylvania’s
environmental restoration heritage. Click Here to view Operation Scarlift Watershed Reports.
http://www.amrclearinghouse.org/Sub/SCARLIFTReports/http://www.portal.state.pa.us/portal/server.pt/community/operation_scarlift/21625https://www.youtube.com/watch?v=20vL4JWFXvQ#t=79http://www.portal.state.pa.us/portal/server.pt/community/operation_scarlift/21625/bond_issue_report_-_1990/1695679http://www.portal.state.pa.us/portal/server.pt/community/operation_scarlift/21625/asce_paper_-_1976/1695681http://www.portal.state.pa.us/portal/server.pt/community/operation_scarlift/21625/asce_paper_-_1976/1695681https://www.youtube.com/watch?v=20vL4JWFXvQ#t=79http://www.wpcamr.org/
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PROP Recycling Film Festival Now Accepting Entries
The Professional Recyclers of Pennsylvania's Eighth Annual Recycling Film Festival will be
held in Conjunction with PROP's Annual Recycling & Organics Conference in Harrisburg July
29 - 31. The deadline for entries is July 10.PROP is soliciting short video productions on recycling or waste reduction topics from
businesses, government agencies, individuals, schools, colleges and universities, waste and
recycling authorities, and others in the recycling and waste industry.
PROP is especially encouraging production of videos of approximately five minutes in
length describing the following subject examples: how recycling works in my apartment
building, my classroom, my community, my place of business, my school, or my sports stadium.
Composting and waste reduction initiatives are also encouraged as video themes.
Winning videos will be selected by ballots submitted by the 2015 Film Festival attendees.
The top contender will receive a cash prize and will be featured on PROP's YouTube Channel .
All entries must be submitted in DVD format: Amy Schirf, Education Coordinator,
Centre County Recycling & Refuse Authority, 253 Transfer Road, Bellefonte, PA 16823.Questions can be directed to Amy Schirf by email to: [email protected] .
25th Recycling & Organics Conference July 29-31 In Harrisburg
The Professional Recyclers of Pennsylvania will hold its 25th annual Recycling and Organics
Conference July 29-31 at the Best Western Premier in Harrisburg.
Meet up with friends and colleagues from around the state to learn what's new in the
world of recycling and organics, to discover what new technologies are available from our
exhibitors, and to hear the latest update from the Department of Environmental Protection.
For more information on sponsorship opportunities, a conference agenda and registration,
visit the Recycling and Organics Conference
webpage.
Wolf Sends Obama Letter Asking For Federal Action To Prevent Oil Train Accidents
Gov. Tom Wolf Thursday wrote a letter to President Barack Obama to express concern and call
for action to improve the safety of transportation of crude oil by rail in Pennsylvania. Each
week, roughly sixty to seventy trains carrying crude oil from North Dakota’s Bakken region
travel through the Commonwealth destined for Philadelphia or another East Coast refinery.
“As you know, Pennsylvania is blessed with abundant natural resources, including shale
gas,” said Gov. Wolf. “The transport of some shale energy resources, and particularly Bakkan
shale oil, however, raises particularly significant safety concerns. Pennsylvania sees some of thelargest volume of Bakken crude oil transportation by rail in the United States, and I am asking
for the federal government’s assistance to make sure that transportation of oil by train is safe.
“I have already taken actions to address this issue including holding emergency trainings,
participating in meetings with executives, and tasking my administration to put plans in place to
both prevent accidents and mitigate impacts.
“We also need expedited federal regulatory action in several areas along with a greater
commitment to funding inspection and enforcement. We cannot afford to wait for a major
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incident before taking action.”
The text of the letter follows--
Dear Mr. President,
As you know, Pennsylvania is blessed with abundant natural resources, including shale
gas. I am eager to attract good paying jobs to our state as we responsibly develop the gas.
Expanding our manufacturing base and building new advanced manufacturing enterprises is akey goal as we cleanly use our shale gas for energy and for feedstock purposes
The transport of some shale energy resources, and particularly Bakkan shale oil,
however, raises particularly significant safety concerns. Addressing those concerns is the subject
of this letter.
I am writing to express concern and respectfully ask for your help to improve the
transportation of crude oil in Pennsylvania. Each week, roughly sixty to seventy trains carrying
crude oil from North Dakota’s Bakken region travel through the Commonwealth destined for
Philadelphia or another East Coast refinery.
Pennsylvania sees some of the largest volume of Bakken crude oil transportation by rail
in the United States.
Unfortunately, there already is a long history of incidents involving trains and tank carscarrying the especially volatile Bakken crude oil. Among the tragic accidents-to-date is the
derailment that occurred in Lac-Mégantic, Quebec, when a train derailed and exploded, killing
forty-seven people and destroying most of the town.
There have also been train derailments and explosions in the United States, including
recent disasters in Virginia and West Virginia, where both fires were managed by allowing them
to burn out over several days.
In the case of Pennsylvania, there have been four train derailments since January, 2014,
including 2 within the city of Philadelphia.
Furthermore, the United States Department of Transportation just released an analysis
regarding transportation of crude oil and ethanol across the nation. This analysis indicates that,
under current conditions, over the next two decades these trains may derail some ten times per
year and potentially fifteen times in 2015.
It also indicates that an accident in a high-population area could kill more than
two-hundred people and cause some six-billion dollars in damages.
The potential for disaster is too great to ignore. In my first weeks in office, I have made
it a top priority to address this issue. My administration has begun to take steps to increase safety
and response capability regarding trains traveling through Pennsylvania. These steps include:
— In our first full week in office we conducted an emergency table-top planning exercise to
model the state’s response in the event of a crude oil train derailment in an urban area. I
participated personally in this multi-hour exercise.
— I have met with executives from Norfolk Southern and have a meeting scheduled with CSXCorporation, the two top transporters of crude oil in Pennsylvania, to discuss safety measures
that could lower the risk of derailments.
— I have directed the Pennsylvania Office of the Fire Commissioner to examine how an oil train
fire could be extinguished if needed to protect public safety.
— We have undertaken a review of the frequency and the procedures associated with rail
infrastructure inspections by federal and state inspectors.
I will continue to take these and other steps to ensure the safety of Pennsylvania’s
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citizens. But, the tools and options available to me are limited. I am therefore respectfully asking
for your assistance in this vital matter. Expedited federal regulatory action in several areas is
essential in better ensuring safety.
First, consistent national standards to reduce the volatility of crude oil prior to
transportation are a must. North Dakota currently is taking steps in this regard. But we have to
ensure all Bakken crude has been treated to remove dangerous volatiles and is transported underthe appropriate pressure and other relevant conditions
Second, current federal standards have reduced speeds to forty miles-per-hour in
high-density urban areas. It is instructive to note that recent derailments and explosions have
occurred at speeds less than this limit. I therefore respectfully request further review of this
matter and revisions to the speed limit as necessary to ensure against explosive derailments.
Third, inspections by government inspectors of rail infrastructure must be enhanced. In
Pennsylvania we have only six inspectors trained with the support of federal resources, even
though we have some five thousand miles of track, among the highest in the nation. I request
additional federal assistance to assist us in hiring and training an adequate number of rail safety
inspectors.
Fourth, the current standards for tank cars and braking systems are not sufficient. Recentaccidents in West Virginia and Ontario both led to large oil fires, even though the tank cars were
of new and more stringent design. Braking systems and tank car standards must be enhanced to
reduce risk.
Finally, the pace of federal rulemaking on rail safety is too slow. We urge that new
federal safety rules be developed and implemented with a sense of urgency appropriate to the
risk presented.
Now is the time for action in order to increase safety and reduce risk.
Thank you Mr. President for your personal attention to this critical matter.
Respectfully and sincerely yours,
Tom Wolf
NewsClips:
Wolf: We Can’t Afford To Wait To Improve Rail Safety
Wolf Asks Obama To Strengthen Oil Train Safety
Wolf Urges Obama To Speed Action On Oil Train Safety
Runaway Train Rolls Thru 12 Intersections Before Stopping
Families Return Home After WV CSX Train Derailment
Oil Train Accidents Raise Concern In Philadelphia
AP: Fuel-Hauling Trains Could Derail At 10 A Year
Casey Tells Feds To Speed Up Rail Safety Initiative
Allegheny Institute Policy Brief: Governor Pitches Severance Tax Proposal
While stumping for the governorship, the current Governor made a Marcellus Shale severance
tax a key campaign promise. And true to his promise, now that he occupies the seat, he has
officially proposed a five percent severance tax on the value of natural gas coming from the
Marcellus Shale formation.
While most observers were sure this proposal was coming (see Policy Brief Volume 14,
Number 59 ) they did not see the added twist coming—a flat fee of 4.7 cents per thousand cubic
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feet (Mcf) of gas extracted.
As we wrote in that Policy Brief, a five percent severance tax was not going to raise $1
billion based on recent production and gas price levels. At 2014’s average trading price ($4.13
based on the formula from Act 13 that created the impact fee) and production rates
(approximately 3.99 billion Mcf from unconventional wells) a 5 percent severance tax would
have generated $822.2 million.At recent lower prices—gas closed at $2.75 on Tuesday February 17th, down from $5.80
from this date one year ago—there is no chance of raising $1 billion from the severance tax
alone; unless there is an enormous and unexpected surge in production.
This no doubt explains the add-on flat 4.7 cents per Mcf to the tax proposal. This
combined tax proposal follows West Virginia’s scheme of a five percent severance tax plus the
4.7 cents per Mcf.
The latter was added in 2005 to provide money for a worker compensation fund.
However, a major difference is that West Virginia also allows deductions for annual industry
operating expenses—a feature not included in the Governor’s proposal.
Taking 2014’s production rate as a base, the 4.7 cents per Mcf would raise another
$187.4 million. When added to the five percent severance tax, which would have generated$822 million, had it been in place in 2014, the two taxes together just top the $1 billion mark.
This matches the campaign talk of generating $1 billion to be spent on education.
Remember that to get to a billion dollars in revenue it was necessary to use last year’s
production and prices—and the add-on flat fee. At the recent price, $2.75 as of February 17th
and, assuming last year’s production, the two new taxes would produce just under $735.5
million.
If prices and production fall from where they are now, estimated revenue from the
proposed tax scheme would fall further.
Keep in mind too, that these revenue predictions assume no reaction from the industry.
When costs rise that cannot be passed along to buyers in the form of higher prices, it could
negatively impact production and specifically new well drilling.
Thus, depending on market conditions, there could well be contraction in the industry,
particularly from the smaller companies who were operating with very thin margins when the
price of natural gas was significantly higher in 2014.
We were already hearing of drillers holding back on tapping new wells when the price
started to fall earlier this January. 2014’s production levels from unconventional wells
(Marcellus Shale) were 28.5 percent higher than in 2013. But this represents a decline from the
growth in 2013 when production was up 52 percent above 2012, which in turn was 92 percent
better than 2011.
The production growth rate could well slow further or stop altogether if the Governor’s
tax proposal is enacted. Thus, it is important to have a much better and clearer sense of theindustry’s probable reaction when making revenue projections.
In addition, there are other considerations to be weighed before the tax proposal gets very
far in the General Assembly. For instance, will the levying of the taxes have a chilling effect on
talks with complimentary industries or businesses the Commonwealth is trying to lure to the
state—such as the cracker plant which separates the chemical compounds in natural gas for use
in the manufacturing of other products?
Second, bear in mind that passing a severance tax would—as required in Act 13—rescind
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the current impact fee and do away with substantial revenue presently being shared by
municipalities, counties and state programs.
The impact fee over its first three years has generated more than $632.4 million in
revenue at an average over $210.8 million per year. Therefore, any money collected by the
proposed severance tax will have to backfill Act 13 promises to these entities.
It is unlikely the current recipients of the impact fee money will sit still and watch thosedollars disappear. This is especially true of the counties with heavy concentrations of rigs that
receive significant payouts from the impact fee revenue.
If the Governor is looking for an additional $1 billion to fulfill his campaign promises, he
will almost certainly need to raise more than $1.2 billion to do that and replace the impact fee.
Given our estimations above, using 2014’s production report and the current gas price, the net
gain to state coffers (total severance tax revenue minus impact fee obligations) would be just shy
of $525 million. Certainly well off the billion dollar mark trumpeted on the campaign trail.
While the Governor has made good on his campaign promise to propose a severance tax,
it is not clear how it will be received by the Legislature. In areas where the impact fee money
has had a positive effect, and drilling had boosted employment and local tax coffers, this will be
a tough sell.The Governor was quoted in the news media as saying “The alternative is not really no
tax. It’s no drilling, a ban, as in the case of New York.” Does he really mean to imply that he
would recommend a ban? If so, that will be a total non-starter and a very poor choice of words
considering the large economic benefit this new industry has produced for the Commonwealth.
Written By: Frank Gamrat, Ph.D., Senior Research Associate and Jake Haulk, Ph.D., President,
Allegheny Institute for Public Policy , in Pittsburgh.
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