API-PA speaks out against severance tax on natural gas drilling included in Pennsylvania Governor’s budget proposal

API-PA Executive Director Stephanie Catarino Wissman released a statement Tuesday criticizing Pennsylvania Gov. Tom Wolf’s Restore Pennsylvania proposal, which would fund infrastructure projects through a severance tax on natural gas drilling.

Wolf unveiled his 2020-21 budget proposal on Tuesday, which included the $4.5 billion Restore Pennsylvania plan.

“The governor’s severance tax – which he has proposed six times in six years – continues to be counterproductive, jeopardizing the very existence of the natural gas industry in our state,” Wissman said. “Responsible natural gas development has been good for the state economy, good for local economies, and good for Pennsylvanians. This initiative doesn’t restore Pennsylvania; it jeopardizes Pennsylvania’s economy and the hundreds of thousands of jobs supported by natural gas production.”

API-PA, a division of the American Petroleum Institute (API), a trade association for the U.S. oil and natural gas industry, noted that Pennsylvania has generated approximately $1.7 billion in new revenues from the existing impact tax since 2012.

“Pennsylvania has led the way for the nation in natural gas production, and due to our energy leadership, the world has seen a monumental shift in the balance of energy power,” Wissman said. “This leadership is delivering for communities across the Commonwealth – by keeping utility bills down and bringing manufacturing jobs back, all while delivering savings and cleaner air to Pennsylvanians. This additional tax could discourage investments and risk the loss of revenues that have helped bolster communities and infrastructure in all 67 counties.”