Revenue from Pennsylvania’s natural gas impact tax generated a record $279 million that directly benefits all 67 counties, according to new data released by the Public Utility Commission. A 19% increase compared to 2022, more than $2.5 billion in new revenue since 2012 has supported state, county and municipal programs, ranging from infrastructure improvements and emergency management services to environmental conservation programs.
“Policymakers should pay attention: Pennsylvania’s unique approach to a severance tax allows all four corners to benefit from the natural gas produced here,” Marcellus Shale Coalition President David Callahan said in a release. “It’s a structure no other energy-producing state uses and has created a valuable revenue stream municipalities, state agencies and environmental programs rely on.”
Projects like Bradford County’s state-of-the-art Public Safety Center, which was fully refurbished using impact fee dollars, represent the scale of which this revenue can benefit small towns.
The year’s distributions represent a $44 million increase compared to 2022. Washington ($25 million), Susquehanna ($23 million), Bradford ($19 million), Greene ($17 million), Lycoming ($12 million), Tioga ($11 million) and Butler ($8 million) counties will receive the largest combined payments to county and municipal governments.
Even parts of the state without natural gas activity, such as York County, benefit from development elsewhere in the state. As State Senator Kristin Phillips-Hill (R-28) said, “even though York County does not have any active natural gas drilling, it still benefits from Pennsylvania’s natural gas industry. The fees levied make it a better place for all of us by improving area parks and streams.”
Her thoughts were echoed by State Senator Gene Yaw, “The natural gas industry has been a great partner in creating new jobs and opportunities in our communities, and today’s announcement is another reminder of the importance of this industry in Pennsylvania.”
While two-thirds (more than $155 million in this year’s case) are distributed to local communities, the remaining funds will aid statewide environmental programs through the Marcellus Legacy Fund, support state agency oversight, and critical first response initiatives.
The breakdown for 2022 Pennsylvania government programs are as follows:
- Marcellus Legacy Fund: $103,641,907
- County Conservation Districts, State Conservation Commission: $9,276,671
- Pennsylvania Department of Environmental Protection: $6,000,000
- Fish & Boat Commission: $1,000,000
- Pennsylvania Department of Transportation: $1,000,000 (rail freight assistance)
- Pennsylvania Public Utility Commission: $1,000,000
- Office of the State Fire Commissioner: $750,000
- Pennsylvania Emergency Management Agency: $750,000
Here’s what Pennsylvanians are saying about the Impact Fee at work:
PUC announces gas drilling impact fees for 2023
The Marcellus Shale Coalition further states that over $155 million will be distributed to local governments, while over $103 million will go to statewide environmental programs
Natural gas drilling impact fee reaches record
“Policymakers should note that Pennsylvania’s unique approach to a severance tax allows the entire Commonwealth to benefit from the natural gas produced here,” Marcellus Shale Coalition President David Callahan said in a release. “It’s a structure that no other energy-producing state uses, providing a valuable revenue stream that directly benefits municipalities, state agencies and environmental programs.”
Natural gas impact fees highest in several years
Bradford County is one of 14 north-central Pennsylvania counties that will receive a combined total of $50,607,454.30. Bradford County will receive $19,526,476.25 from that combined total, which is almost 39%.
County, municipalities getting $8M from Act 13 fees
“It’s clear that the natural gas industry is still strong in our region and the commonwealth. It’s really putting money back into infrastructure, and we’ve been able to use that to leverage a lot of other funding to get a lot of projects done. We continue to support the natural gas industry in our region,” Butler County Commissioner Leslie Osche said.
Natural Gas tax revenue exceeds $2.5M, funds critical programs
More than $155 million will be distributed to local governments, leaving $103 million for statewide environmental programs and nearly $20 million for state agency oversight, including $6 million for the Pennsylvania Department of Environmental Protection, $1 million for the Fish & Boat Commission, $1 million for the Pennsylvania Department of Transportation for rail freight assistance, and $1 million to the Pennsylvania Public Utility Commission.
Indiana County gets more than half a million in Act 13 funds
With this year’s distribution, PUC spokesman Nils Hagen-Frederiksen said, the PUC has collected and distributed more than $2.5 billion to Pennsylvania communities. He said the commission has forwarded the information also made public Tuesday to the state Department of Treasury and expects payments to be distributed in early July.
Pa. fracking fees come in at $279 million for 2022, PUC says
“Pennsylvania natural gas development has delivered national energy security, cleaner air, consumer and economic gains here at home and abroad,” David Callahan, president of the Marcellus Shale Coalition, an industry trade group, said in a press release. “The impact tax is yet another example of how the industry supports better quality of life for all Pennsylvanians.”
Natural gas impact fee revenue up 19% as capacity issues remain
“The impact tax continues to be a smart policy that provides county and local governments the flexibility to support projects tailored to individual community needs,” Marcellus Shale Coalition President David Callahan said in a press release. The most money will go to the southwestern, north central, and northeastern parts of the state. Washington, Susquehanna, Greene, Bradford, and Butler Counties will receive the largest payments to county and municipal governments, ranging from $8 million to about $25 million.
State Senator Gene Yaw: “The Impact Fee not only funds critical projects locally, but also a wide variety of important environmental projects in communities throughout the state. The natural gas industry has been a great partner in creating new jobs and opportunities in our communities, and today’s announcement is another reminder of the importance of this industry in Pennsylvania.”
State Senator Kristin Phillips-Hill: “Even though York County does not have any active natural gas drilling, it still benefits from Pennsylvania’s natural gas industry. The fees levied make it a better place for all of us by improving area parks and streams.”
State Representative Tina Pickett: “I do have many opportunities to realize what these impact fees mean to our local municipalities…They have adequate equipment for road and bridge maintenance. They can make purchases that improve public safety. They also have funding for enhancing parks and other recreational facilities, which benefits the wellness of their citizens. In addition, many natural gas company employees serve their communities through involvement in nonprofits or as emergency first responders, with the blessing of management.”
State Senator Camera Bartolotta: “Remarkably, 27% of all county and municipal Impact Fee Distributions for the entire state are going to just Greene and Washington counties. It’s quite a sizable sum of money that will be put to great use improving our area for everyone’s benefit.”
State Representative Jonathan Fritz: “Natural gas is paving the future for energy solutions within our Commonwealth,” said Fritz. “This annual funding, which goes toward important infrastructure projects and emergency response efforts, is vital to these local communities. I am incredibly excited to see so many municipalities in my district receive these impact fees. Natural gas drilling is such a large and important part of the area economy.”
Pennsylvania Chamber of Business & Industry President Luke Bernstein: “As today’s impact fee announcement makes clear, the natural gas industry generates hundreds of millions of dollars in annual revenue to support our local governments, environment, infrastructure, and public safety. Natural gas has been a game changer for our economy and positions Pennsylvania to be a global leader in energy production for generations to come.”
