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Legislation Doesn’t Restore PA - It Jeopardizes Pennsylvania’s Economic Strength


202.682.8114 | press@api.org



HARRISBURG, June 5, 2019 – API-PA Executive Director Stephanie Catarino Wissman today issued the following response to legislation introduced today to consider Governor Wolf’s fifth proposal to increase taxes on Pennsylvania’s natural gas industry.

“This is the fifth time in five years Governor Wolf has proposed a severance tax that targets one industry through a counterproductive, punitive and anti-consumer policy. If enacted, this additional tax could discourage investments and risk the loss of revenues that have helped bolster the very communities and infrastructure in all 67 counties the proposal seeks to aid,” said Wissman. “The proposed tax jeopardizes Pennsylvania’s economic strength and pits itself against the working families who rely on affordable American energy in every facet of their lives. Pennsylvania’s natural gas and oil industry works hard to help make access to energy and opportunity within reach for every woman and man in commonwealth. The U.S. natural gas and oil industry is proving every day that environmental progress and economic growth are not mutually exclusive, investing billions in high-tech innovation, efficiency improvements, and ever-cleaner fuels, powering jobs and boosting revenues in communities across the Pennsylvania. Our legislative policies must balance these existing gains and meeting record consumer energy demand.

“Rather than rerun the same tired ideas that would pull the commonwealth in the wrong direction, we should look  to working with the legislature and the administration on policies that build on Pennsylvania’s successes.”

Since 2012, Pennsylvania has generated nearly $1.5 billion in new revenues from the existing impact tax. The state Independent Fiscal Office estimates that the impact tax collected from production in 2018 will total $247 million for distribution across the state this summer, the largest-ever annual revenue generated, which will bring the total revenues to more than $1.7 billion.

API-PA is a division of API, which represents all segments of America’s oil and natural gas industry. API which started as a standards-setting organization has developed almost 700 standards to enhance the safety of our workers and protect the community and environment – standards the world looks to as a guide. Its more than 600 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 47 million Americans.