Pa Environment Digest March 2, 2015

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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

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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:








Bill Looking To Add Housing Money To Act 13 Funds

Audit: State Lawmakers Sitting On $161 Million






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

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mailto:[email protected]://goo.gl/aydPm0http://goo.gl/nF54zBmailto:[email protected]:[email protected]


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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

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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

http://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=23&CteeBody=Shttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=31&CteeBody=Shttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=7&CteeBody=Shttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=9&CteeBody=Shttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=3&CteeBody=Shttp://www.legis.state.pa.us/cfdocs/CteeInfo/StandingCommittees.cfm?CteeBody=Hhttp://www.legis.state.pa.us/cfdocs/CteeInfo/StandingCommittees.cfm?CteeBody=Hhttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=38&CteeBody=Hhttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=28&CteeBody=Hhttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=24&CteeBody=Hhttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=56&CteeBody=Hhttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=54&CteeBody=Hhttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=10&CteeBody=Hhttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=8&CteeBody=Hhttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=12&CteeBody=Hhttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=4&CteeBody=Hhttp://www.legis.state.pa.us/WU01/LI/CO/SM/COSM.HTMhttp://www.legis.state.pa.us/WU01/LI/CO/SM/COSM.HTMhttp://www.legis.state.pa.us/WU01/LI/CO/HM/COHM.HTMhttp://www.legis.state.pa.us/WU01/LI/CO/HM/COHM.HTMhttp://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20150&cosponId=16871http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=H&type=B&bn=0296http://www.legis.state.pa.us/WU01/LI/SC/SC/0/RC/CAL.HTMhttp://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20150&cosponId=15491http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=0385http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20150&cosponId=16207http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=0375http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20150&cosponId=16407


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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,

http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=0375http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20150&cosponId=15491http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=0385http://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//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=16407http://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=16111http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=0214http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20150&cosponId=16207http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=0375http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20150&cosponId=15697http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=H&type=B&bn=0057


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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

http://www.legis.state.pa.us/cfdocs/CteeInfo/laac.cfmhttp://www.ruralpa.org/http://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=16407http://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=16111http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=0214http://www.legis.state.pa.us/cfdocs/cteeInfo/Index.cfm?Code=9&CteeBody=Shttp://stateimpact.npr.org/pennsylvania/2015/02/25/senate-committee-approves-shale-gas-health-bill/http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19729http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19729


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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:




Op-Ed: We’re Already Taxing Marcellus Shale Gov. Wolf Op-Ed: Wolf’s Severance Tax Bad News For Gas Industry







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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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.

http://paforestproducts.org/http://paforestproducts.org/http://www.agriculture.state.pa.us/portal/server.pt/gateway/PTARGS_6_2_24476_10297_0_43/AgWebsite/OrganizationDetail.aspx?name=Hardwoods-Development-Council&navid=34&parentnavid=0&orgid=17&http://jcc.legis.state.pa.us/index.cfmhttp://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.aspx


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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:












GOP Leaders Respond To Wolf Budget Rumors Reed Discusses Expectations For Wolf’ Budget


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

http://www.legis.state.pa.us//cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20150&cosponId=15912http://www.stroudcenter.org/http://www.cbf.org/pahttp://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/cteeInfo/Index.cfm?Code=9&CteeBody=Shttp://www.legis.state.pa.us/cfdocs/CteeInfo/index.cfm?Code=15&CteeBody=Shttp://www.pahouse.com/live


15/54

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

http://www.alleghenyinstitute.org/wp-content/uploads/2014/12/Vol14No59.pdfhttp://www.alleghenyinstitute.org/wp-content/uploads/2014/12/Vol14No59.pdfhttp://stateimpact.npr.org/pennsylvania/2015/02/26/senator-casey-tells-obama-administration-to-speed-up-rail-safety-initiative/http://m.apnews.com/ap/db_268748/contentdetail.htm?contentguid=QgOUd4gshttp://www.philly.com/philly/business/20150222_Oil-train_accidents_raise_concern_in_Phila_.htmlhttp://powersource.post-gazette.com/powersource/consumers-powersource/2015/02/20/All-but-five-families-allowed-return-home-after-CSX-train-derailment-Mount-Carbon-West-Virginia/stories/201502200287http://www.mcall.com/news/nationworld/pennsylvania/mc-pa-midvalley-runaway-train-20150227-story.html#navtype=outfithttp://powersource.post-gazette.com/local/2015/02/27/Wolf-urges-president-to-speed-action-on-rail-shipments-of-crude-oil/stories/201502270303http://stateimpact.npr.org/pennsylvania/2015/02/27/gov-wolf-asks-obama-to-strengthen-oil-train-safety/http://www.pennlive.com/politics/index.ssf/2015/02/wolf_letter.html#incart_m-rpt-2


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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.

NewsClips:










Documents

Pa Environment Digest March 2, 2015