Delco reps explain their votes on taxing Marcellus shale
The day after a discharge motion attempted to resuscitate a Marcellus shale tax, members of the Delaware County delegation shared their thoughts on move.
All of the Republicans – state Reps. Steve Barrar, R-160 of Upper Chichester, Nick Miccarelli, R-162 of Ridley Park, Jamie Santora, R-163 of Upper Darby, Alex Charlton, R-165 of Springfield, and Chris Quinn, R-168 of Middletown, voted to have the bill, HB 113, introduced by state Rep. Kate Harper, R-61, of Blue Bell, moved to the floor for a vote, bucking the majority of their own party.
The local Democrats had mixed responses to that move. State Rep. Leanne Krueger-Braneky, D-161 of Swarthmore and Brian Kirkland, D-159 of Chester, voted for it. State Rep. Margo Davidson, D-164 of Upper Darby, wasn’t present for the vote and state Rep. Greg Vitali, D-166 of Haverford, was the sole vote from the Delco delegation against it.
He said that was because the environment took too much of a hit in exchange for the tax in this version.
“It is clear the Semite Republicans will not agree to a severance tax unless they get concessions very damaging to the Pennsylvania Department of (Environmental) Protection,” he said. “The severance tax the Senate was offering was paltry, less than 1 percent, but even a more robust severance tax would not be worth the price.”
Vitali said the bill would have included third-party permitting, automatic approved permits after a certain time elapse and the appointment of a political body to approve air permits for unconventional wells.
“It would emasculate the Department of Environmental Protection,” he said. “Regrettably, it seems that Gov. Wolf and House leadership have signed off on that for a severance tax.”
Vitali said the issue has become a political football.
“The severance tax has more value to politicians as a political issue than a financial issue,” he said. “Both sides are looking at the severance tax through the lens of next year’s gubernatorial race.”
Vitali said he didn’t want to be a part of that.
“I do not want to sell out environmental protection for this political issue,” he said. “It’s just not worth it, it’s just not worth it.”
When asked if his vote to not have the shale tax moved to the House floor for discussion sided with those who say the industry shouldn’t be taxed at all, he explained, “I try to focus on good public policy. I think good policy makes good politics. My focus is on what is good public policy.”
Miccarelli said the discharge wasn’t the optimum action, but it was necessary.
“Because it’s not a typical procedural motion, some members who supported a shale tax didn’t support the discharge resolution,” he said. “However, I don’t know that we’re going to get an opportunity to do it any other way.”
As a member of the House Appropriations Committee, he wants the revenue package to be solidified.
“I would like to see members of the House and Senate Appropriations committees get in a room, lock the doors behind us and nobody leaves until we put a budget on the governor’s desk,” he said.
Santora said other options may be available for the issue.
“We’re looking at other avenues to get another shale tax on the floor,” he said. “I believe that the impact fee is a good thing, it should be netted out, there is room for a severance tax.” Quinn offered his view. “I prefer not to see any tax increase on anyone,” he said. “But, this gas is a natural resource, some of which is going to be exported.”
So, he said, if he has to choose between a tax increase on his neighbors or a shale tax, he’s going with the shale tax.
Quinn said he would’ve like the Delco delegation to stand unified on this issue.
“I should think we should’ve been able to count on 100 percent of the Delaware County representatives to vote on this,” he said.
Charlton also expressed disappointment because the issue didn’t make it to the floor for a vote, failing on the discharge measure by an 83-115 vote. Hence, it returned to the House Environmental Resources and Energy Committee.
“For me, I’m not sure why the Democrats sat on this discharge for three weeks,” he said. “Once that discharge resolution gets announced, you have to strike while the iron is hot. If they had moved this sooner, we would’ve seen more representatives on board with it.”
Charlton said now is the time for legislators to discuss the merits of a shale tax.
“We need to be able to have that debate on the value of that for the state,” he said. “This is a Pennsylvania commodity, this is a product that’s being taken, one of our resources, I don’t think a shale tax is a bad idea.”
Charlton said it’s time to bring this issue to a close, having been banded about for at least a decade.
“This is the year we need to finalize this,” he said. “Let’s put the vote out there. This is something that has shown its viability.”
Attempts to reach Davidson and Kirkland were unsuccessful Thursday.