Feb 1, 2019 2 min read

HARRISBURG (AP) — Gov. Tom Wolf is planning to ask lawmakers to approve a severance tax on Marcellus Shale natural gas production to finance a multibillion-dollar capital plan for a wide range of projects, from controlling floodwaters to fighting blight.

Wolf, a Democrat, is unveiling the plan Thursday, which his administration says is packaged with a proposal for a Marcellus Shale tax for a fifth straight year.

This time Wolf wants to use the money to pay down a $4.5 billion bond that the administration would spend over four years on projects including expanding high-speed internet access, improving flood control and cleaning up brownfields and blight in hopes of luring new businesses

Approval will be up to the Republican-controlled Legislature, which has thus far rejected Wolf’s overtures for a natural gas tax.

“Pennsylvania’s tax on natural gas – the impact fee – generates hundreds of millions of dollars annually for critical infrastructure programs across the entire Commonwealth. This existing annual tax revenue, when combined with other business taxes paid by the industry as well as lease bonuses and royalties tied to natural gas development on state land, has provided nearly $5 billion in revenue since unconventional shale gas development began. 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. We’ll continue to work with leaders in Harrisburg on solutions to drive continued economic growth, environmental progress and a brighter future for the entire Commonwealth.” Marcellus Shale Coalition president David Spigelmyer