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CLS Attorney Raises Concerns On Possible Natural Gas Tax

HARRISBURG (CBS) -- The State Senate has approved legislation that would impose a tax on natural gas drillers. But residential customers would also be tapped to help pay for Pennsylvania's new budget, and that could hurt some of the state's poorest residents.

The bill, passed by the Senate and sent to the House Wednesday, would impose a 5.7% gross receipts tax on natural gas bills.

The measure would also redirect $20 million per year raised by that tax to LIHEAP, the Low Income Home Energy Assistance Program.

But Robert Ballenger, Co-Director of Community Legal Services' Energy Unit, says that doesn't necessarily make it a wash since currently, LIHEAP grants don't reach all customers in need.

"We strongly support efforts to increase assistance grants in the form of LIHEAP grants to low-income families. I think the concern is whether those grants are going to be available for all of the people who are low-income who may face higher gas bills in the winter," Ballenger said.

But the fate of the Senate proposal is entirely uncertain in the House.

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