THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY WHITE, K. BOYLE, CALTAGIRONE, CARROLL, DALEY, GERGELY, HORNAMAN, JOSEPHS, KORTZ, KOTIK, LONGIETTI, MURT, PAYTON, STEPHENS, YOUNGBLOOD AND HALUSKA, JUNE 27, 2012

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, JUNE 27, 2012  

AN ACT

Establishing the Energy Employment Legacy Fund; and providing

for powers and duties of the Department of Revenue.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited the as Energy

Employment Legacy Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department."  The Department of Revenue of the Commonwealth.

"Ethane."  A colorless, odorless gaseous alkane, C2H6, which

occurs as a constituent of natural gas and is used as the raw

material in the manufacturing of ethylene.

"Fund."  The Energy Employment Legacy Fund established in

section 3.

"Natural gas."  A fossil fuel consisting of a mixture of

hydrocarbon gasses, primarily methane, and possibly including

ethane, propane, butane, pentane, carbon dioxide, oxygen,

nitrogen and hydrogen sulfide and other gas species. The term

includes natural gas from oil fields known as associated gas or

casing head gas, natural gas fields known as nonassociated gas,

coal beds, shale beds and other formations. The term does not

include coal bed methane.

"Number of spud unconventional gas wells."  The most recent

numerical count of spud unconventional gas wells on the

inventory maintained and provided to the Pennsylvania Public

Utility Commission by the Department of Environmental Protection

as of the last day of each month.

"Producer."  A person or its subsidiary, affiliate or holding

company that holds a permit or other authorization to engage in

the business of severing natural gas for sale, profit or

commercial use from an unconventional gas well in this

Commonwealth. The term does not include a producer that severs

natural gas from a site used to store natural gas that did not

originate from the site.

"Spud."  The actual start of drilling of an unconventional

gas well.

"Unconventional gas well."  A bore hole drilled or being

drilled for the purpose of or to be used for the production of

natural gas from an unconventional formation.

Section 3.  Energy Employment Legacy Fund.

(a)  Establishment of fund.--The Energy Employment Legacy

Fund is established in the State Treasury as a nonlapsing

restricted interest-bearing account. The fund shall consist of

the fees collected under subsection (b). Money in the fund and

the interest it accrues are appropriated to the department for

the purpose of funding a tax credit for entities purchasing

ethane for use in manufacturing ethylene at a facility in this

Commonwealth which has been placed in service on or after the

effective date of this section.

(b)  Well surcharge.--Each producer shall annually pay a fee

in an amount calculated by dividing $66,000,000 by the total

number of spud unconventional gas wells in this Commonwealth and

multiplying the resulting quotient by the number of spud

unconventional gas wells of the producer.

(c)  Collection.--The fee shall be collected by the

department in accordance with procedures established by the

department. The department shall pay all remitted fees to the

State Treasurer for deposit into the fund within 30 days of

receipt, for use as provided in this section.

(d)  Surcharge sunset.--The fee established in subsection (b)

shall terminate on December 31, 2042.

Section 4.  Effective date.

This act shall take effect immediately.