X-ray spectroscopy of Seyfert 2 galaxies provides an excellent probe of the circumnuclear environment in active galactic nuclei. The grating experiments on both Chandra and XMM-Newton have now provided the first high resolution spectra of several of the brightest Seyfert 2s. We present Chandra HETG data on Markarian 3 and XMM-Newton RGS data on NGC 1068. In both cases, the spectra are dominated by emission lines due to radiative recombination following photoionization, photoexcitation, and fluorescence. There is no evidence for any significant contribution from collisionally-heated gas.