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Marcellus Shale IMPACT FEE
Elaine Lapp Esch
Senator
Scarnati (along with local Senators Smucker and Brubaker) has recently
introduced
Senate Bill 1100 to “impose an impact fee on unconventional gas”.
It is of utmost importance that you understand why those who have read
the bill so urgently oppose it. First of all, here’s the link to the
bill: If the link does not work, go to
www.legis.state.pa.us and
enter SB1100 in the block in the upper-right corner.
Here’s a
summary of why I oppose it:
First and
foremost, it creates a “model zoning ordinance” that strips counties
and municipalities of their own zoning regulations. If any of their
ordinances are more stringent than the model zoning ordinance they
will not be eligible to receive any funds from the impact fee.
Description of the limitations begin on page 20 of this document, and
it is essential that you read them. It authorizes a wide array of “use
by right” to the gas industry that is simply mind-blowing and would
tie the hands of local governments. Page 22 gives a list of things the
model ordinance will not do – mostly promising the industry that it
will not limit them in any way (noise, hours of operation, equipment
weight, etc.)
Secondly,
the structure itself (called The Commission) is ambiguous and “fussy”
(for lack of a better term). This unknown entity will suddenly create
a statewide set of zoning ordinances for the gas industry, as well as
create a confusing system of distribution. You really need to read it
for yourself, but roughly:
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Off
the top will come funds for conservation districts ($2.5M in 2010,
$5M in 2011, $7.5M in 2012 and thereafter – half of that by dividing
equally among districts, and half by a special formula).
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Of the
remaining funds: 60% will be distributed as follows: 36% of that to
counties where gas wells are located based on ratio of wells in that
county, 37% to municipalities where gas wells are located based on
ratio of wells in that municipality, and 27% to municipalities
located in a county with gas wells based on ratio based on the
following provisions: 50% based on population rations and 50% based
on highway mileage ratios. (On page 18 it spells out what they can
and can’t use that money for.)
The other
40% of the funds (bolded so you can see what I’m talking about) will
be distributed as follows: 80% for grants through the Commonwealth
Financing Authority, 10% to the Motor License Fund, 10% to Hazardous
Site Clean-Up. What is not covered is who will pay for the Commission,
but I’m pretty sure I know the answer to that question: taxpayers.
Thirdly, I
oppose any tax or impact fee that takes the place of holding industry
responsible for the mess they create. There is a terrible impact on
roads due to shale gas. It is estimated that traffic for each well
(not each pad, each WELL) is equivalent of 3.5 million car trips on
local roads. In many current situations, industry is improving the
roads they have destroyed. If they are suddenly charged a “fee” for
road work, they will likely absolve themselves of any further
responsibility and the burden will solidly rest with taxpayers.
Scarnati’s Impact Fee is estimated to bring in $200 Million in the
next two years. That is a drop in the bucket of actual road and bridge
costs, not to mention emergency management costs, and not to mention
water contamination costs. So for $200 million, the industry will have
shifted the burden back to PA. What a deal.
This bill
looks more like an industry kickback than anything helpful to PA. I
hope that each of you take the time to read it in its entirety, and to
comment on it within your circles of influence. Both Lloyd Smucker and
Mike Brubaker are co-authors of this bill, and it is shameful.
Comment on this
Commentary - Comments should be directed to Ken Ralph, Editor of
LCDC Media at his
email address. Comments will be posted
here.
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Elaine Lapp Esch
The opinions expressed here are those of
the author alone and are not the official position of the
Lancaster
County Democratic Committee. |
