Oct. 26, 2015
By State Rep. Will Tallman
193rd Legislative District
You’ve probably heard about the Marcellus Shale, but did you know Pennsylvania is leading America’s shale revolution? We’re creating jobs and consumer energy savings, revitalizing manufacturing, and providing a revenue boost to the state as well as to local and county governments, all while enhancing our environment.
Energy independence has been promised by politicians on both sides of the aisle for far too long. Today, without the need for a new law or additional government spending program, America has surpassed Saudi Arabia and Russia as the world’s leading oil and natural gas producer through entrepreneurship and private sector innovation. This should be celebrated and we should find ways to protect and expand these positive gains.
For families and small businesses, this translates into lower and more affordable energy costs, which result in increased take-home pay. For American manufacturers, the 21st century has never looked brighter.
Whether it is through new natural gas power plant construction, pipeline and infrastructure expansion, or homegrown manufacturing, shale is creating tens of thousands of good paying jobs. What’s more, countless household goods produced with natural gas – everything from life-saving medicines and batteries to computers and cameras – are now more affordable for consumers.
Locally, the Commonwealth’s current natural gas impact tax has generated more than $850 million since it was enacted in 2012. These revenues, which benefit every county across Pennsylvania regardless of drilling activity, are an invaluable resource for local governments to improve roads and bridges, increase first responder funding, and keep taxes at bay. In short, the current system is working as designed by creating meaningful local benefits.
No drilling is taking place in either Adams or Cumberland County; however, each has received nearly $330,000 in impact tax revenues. What’s more, the impact tax is in addition to the more than $2 billion in various other state and local tax revenues generated from natural gas development over the past several years alone.
As we head into winter, Pennsylvania’s abundant homegrown energy source will keep home-heating and utility costs low. In fact, natural gas utility rates today are less than half of what they were seven years ago.
But shale’s benefits extend beyond the economy, as expanded natural gas use is improving the air we breathe. According to federal government data, America’s CO2 emissions are at a more than 20-year low, thanks in large part to the greater availability and use of natural gas.
Simply put, shale development has provided an incredible boost when we needed it most for both our environment and economy. Unfortunately, these benefits are threatened by even higher energy taxes.
We often hear that “the gas isn’t going anywhere.” That’s true, though intellectually dishonest with respect to a higher energy taxes. Yes, the Marcellus Shale is a leading natural gas formation. It’s also true there are similar formations across the region, the country and world. Developing these resources requires enormous amounts of capital – capital that, like water, seeks the path of least resistance.
The numbers and data validate that. In October 2011, Pennsylvania had an average of 115 rigs operating. Today, there are 29 active rigs. These numbers clearly reflect the competitiveness of this industry as well as the need to ensure we advance policies that encourage rather than discourage investment in the Commonwealth.
Gov. Tom Wolf’s plan for increasing our energy taxes to the point of having the nation’s highest energy tax, according to the state’s non-partisan Independent Fiscal Office, would hit small- and medium-sized locally based Pennsylvania businesses across the industry’s supply chain while they are down.
I will continue to fight for commonsense energy policies, focused on creating more jobs, opportunity and economic growth.
Representative Will Tallman
193rd District
Pennsylvania House of Representatives
Media Contact: Scott Little
717.260.6137
slittle@pahousegop.com
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