To date, severance tax the most significant environmental legislation of 2015

June 1 was the unofficial start to Pennsylvania’s state budget negotiations. Expect the same budget showmanship and political stunts as years past but, nonetheless, this year’s budget negotiations have the potential to be an historic turning point. In fact, I’ll go so far as to say the Governor’s budget, anchored by a 5 percent severance tax on natural gas drilling, could be the most significant piece of environmental legislation of 2015.

That might sound off base to some so hear me out.

The overall impact of the severance tax can and will be measured by where the revenue it generates is directed, not necessarily from the direct impact of the severance tax itself. As most in the Commonwealth know, Gov. Tom Wolf has long proposed using most of the severance tax revenue to invest in education. But a deeper look at his budget also shows that the governor wants to leverage the severance tax to kick-start the state's clean energy economy and bolster environmental protection.

In particular, Gov. Wolf has proposed using a portion of the revenue generated to float a bond that would invest:

1. $225 million for clean energy and energy efficiency programs that will cut pollution and position Pennsylvania as a hub for clean energy jobs and industries;
2. $10 million to hire 50 new enforcement staff at the Department of Environmental Protection that will ensure Pennsylvania’s growing gas industry is safe and cleaner;
3. and $19 million to reduce the Department of Conservation and Natural Resources’ budgetary dependence on extractive industries so the state can increase its investment in our parks and forests.

The importance of restarting state investment in clean energy cannot be overstated. In four years, Pennsylvania went from being a leading state for clean energy job and industry growth to a lagging state because policymakers decided to end most incentive programs. The governor’s budget proposes to reverse that process by injecting some much needed investment in solar, energy efficiency, wind, and combined heat and power. It certainly wouldn’t be the end of the debate on state clean energy policy or proper investment levels but it’s a step in the right direction.

It’s critical that the clean energy and environmental protection piece of the governor’s budget proposal be included in all budget negotiations, particularly those surrounding the severance tax. It may sound funny linking natural gas drilling to clean energy but jump-starting these programs and industries requires revenue -- and the severance tax is the best bet.

Matthew Stepp is director of policy for PennFuture and works out of our Philadelphia and Harrisburg offices. He tweets @MatthewStepp.