Pennsylvania House Republican Caucus
04/07/2026 | Press release | Distributed by Public on 04/07/2026 14:26
Small Communities, Big Costs: Pugh, Policy Committee Seek Relief from ‘Rain Tax’ Burden
Apr. 07, 2026
LUZERNE COUNTY, PA-The House Republican Policy Committee, led by Chairman David H. Rowe (R-Snyder/Union/Mifflin/Juniata), convened a public hearing Tuesday titled "Small Communities, Big Costs: Reforming the Rain Tax to Make PA More Affordable" to examine solutions to reduce the "rain tax" burden on small communities.
Hosted by Rep. Brenda Pugh (R-Luzerne), the hearing brought together community leaders sharing firsthand insight into the inequitable Municipal Separate Storm Sewer System (MS4) rainwater tax. Pugh recently introduced legislation, House Bill 2360, that would preserve environmental outcomes and ensure costs are distributed fairly and responsibly across the Commonwealth.
"Today's hearing focuses on an issue many Pennsylvanians didn't even know existed until it showed up on their bill. Communities like Luzerne County are being pulled into a system never designed for smaller towns, yet they're expected to pay the same price," said Rowe. "We are here today to explore how we can reduce these costs while still meeting our environmental responsibilities."
Under the federal Clean Water Act and related interstate agreements governing the Chesapeake Bay watershed, Pennsylvania is obligated to reduce nutrient and sediment discharges from stormwater runoff. These MS4 permit requirements impose substantial compliance obligations on municipalities, often passing this "rain tax" directly to local property owners through stormwater fees.
"When fees disproportionately impact homeowners, small businesses and nonprofit organizations, often without regard to their ability to pay or proportional benefit received, the result is an inequitable system in which residents in certain municipalities bear significantly higher costs than similarly situated residents elsewhere in the Commonwealth, despite facing the same statewide environmental mandates," Pugh said. "For many households and community organizations already under financial strain, these fees represent a growing and unsustainable burden. It is time to deliver clean water goals without punishing local communities for responsibilities that belong to all of us."
Testifiers at today's hearing included Chet Mozloom, Dallas Area Municipal Authority, board member, and director for The Lands at Hillside Farms; Mike Stash, supervisor for Lehman Township; and Romilda Crocamo, manager for Luzerne County.
Mozloom observed while the objectives of MS4 are noble, the funding mechanism is controversial.
"Those who are taxed feel inequitably targeted," Mozloom stated in his testimony. "While there are historical agreement-based justifications for the targeted areas, people see similar areas without storm water fees. The funding mechanism causes polarization within what should be something everyone sees as prudent."
Stash's testimony summarized his personal experience as a resident, noting that the charges ranged from $60 to thousands of dollars, setting up an inequitable structural burden.
"In the spirit of responsible and commonsense government, residents deserve clear and
honest answers," Stash explained. "At a time when households are already facing rising utility bills and energy costs, relief from this unfair federal mandate burden is essential. A more equitable solution to stormwater management can and must be developed."
Crocamo noted that while the intention behind this initiative is commendable, it has unfortunately evolved into an example of a good idea gone awry.
"This fee disproportionately impacts certain residents within our county, placing a significant financial burden on them," Crocamo noted. "Many families are already facing economic challenges, and this additional fee could further strain their budgets. It is essential to recognize that while some residents bear this cost, other areas, even in neighboring states, are not contributing to similar fee structures. This inequity raises serious concerns about fairness and responsibility in managing our shared resources."
"As we move forward, we will continue working with stakeholders, municipalities, and our colleagues to identify solutions that protect our environment, respect local communities, and deliver freedom through affordability for Pennsylvania families," concluded Rowe.
Representative David H. Rowe
85th Legislative District
Pennsylvania House of Representatives
Media Contact: Nancy Nilson
717.787.3443
[email protected]
www.policycommittee.com
Hosted by Rep. Brenda Pugh (R-Luzerne), the hearing brought together community leaders sharing firsthand insight into the inequitable Municipal Separate Storm Sewer System (MS4) rainwater tax. Pugh recently introduced legislation, House Bill 2360, that would preserve environmental outcomes and ensure costs are distributed fairly and responsibly across the Commonwealth.
"Today's hearing focuses on an issue many Pennsylvanians didn't even know existed until it showed up on their bill. Communities like Luzerne County are being pulled into a system never designed for smaller towns, yet they're expected to pay the same price," said Rowe. "We are here today to explore how we can reduce these costs while still meeting our environmental responsibilities."
Under the federal Clean Water Act and related interstate agreements governing the Chesapeake Bay watershed, Pennsylvania is obligated to reduce nutrient and sediment discharges from stormwater runoff. These MS4 permit requirements impose substantial compliance obligations on municipalities, often passing this "rain tax" directly to local property owners through stormwater fees.
"When fees disproportionately impact homeowners, small businesses and nonprofit organizations, often without regard to their ability to pay or proportional benefit received, the result is an inequitable system in which residents in certain municipalities bear significantly higher costs than similarly situated residents elsewhere in the Commonwealth, despite facing the same statewide environmental mandates," Pugh said. "For many households and community organizations already under financial strain, these fees represent a growing and unsustainable burden. It is time to deliver clean water goals without punishing local communities for responsibilities that belong to all of us."
Testifiers at today's hearing included Chet Mozloom, Dallas Area Municipal Authority, board member, and director for The Lands at Hillside Farms; Mike Stash, supervisor for Lehman Township; and Romilda Crocamo, manager for Luzerne County.
Mozloom observed while the objectives of MS4 are noble, the funding mechanism is controversial.
"Those who are taxed feel inequitably targeted," Mozloom stated in his testimony. "While there are historical agreement-based justifications for the targeted areas, people see similar areas without storm water fees. The funding mechanism causes polarization within what should be something everyone sees as prudent."
Stash's testimony summarized his personal experience as a resident, noting that the charges ranged from $60 to thousands of dollars, setting up an inequitable structural burden.
"In the spirit of responsible and commonsense government, residents deserve clear and
honest answers," Stash explained. "At a time when households are already facing rising utility bills and energy costs, relief from this unfair federal mandate burden is essential. A more equitable solution to stormwater management can and must be developed."
Crocamo noted that while the intention behind this initiative is commendable, it has unfortunately evolved into an example of a good idea gone awry.
"This fee disproportionately impacts certain residents within our county, placing a significant financial burden on them," Crocamo noted. "Many families are already facing economic challenges, and this additional fee could further strain their budgets. It is essential to recognize that while some residents bear this cost, other areas, even in neighboring states, are not contributing to similar fee structures. This inequity raises serious concerns about fairness and responsibility in managing our shared resources."
"As we move forward, we will continue working with stakeholders, municipalities, and our colleagues to identify solutions that protect our environment, respect local communities, and deliver freedom through affordability for Pennsylvania families," concluded Rowe.
Representative David H. Rowe
85th Legislative District
Pennsylvania House of Representatives
Media Contact: Nancy Nilson
717.787.3443
[email protected]
www.policycommittee.com
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