Nearly $3 billion generated for Pa. communities to date; Consumer savings top $10 billion in 2024
PITTSBURGH, PA – June 23, 2025 – Pennsylvania’s natural gas impact fee, the state’s tax on natural gas development, generated $164.5 million in 2024, the Pennsylvania Public Utility Commission (PUC) announced today. This brings the 14-year total to more than $3 billion in funds generated by the industry dedicated to community, environmental and infrastructure needs across the Commonwealth.
Since its creation in 2012 under Act 13, the impact fee has provided a consistent stream of funding to all 67 Pennsylvania counties – even regions without industry activity. These funds can be used for a variety of municipal needs, including infrastructure improvements, emergency services, economic development projects and environmental protection.
“Natural gas development delivers real, measurable benefits for Pennsylvania communities – driving job creation, powering economic growth and strengthening energy security,” said Jim Welty, president of the Marcellus Shale Coalition. “Beyond these core advantages, this industry continues to invest in projects that improve quality of life across the Commonwealth. The impact fee alone has generated nearly $3 billion since 2012 – a clear, bipartisan policy success that reinforces the broad, lasting value of Pennsylvania’s natural gas resources.”
Natural gas development remains a key economic driver in Pennsylvania. In 2022, the industry contributed more than $6 billion in local, state and federal tax revenues, according to a Marcellus Shale Coalition economic impact study. The sector supports over 120,000 family-sustaining jobs, with average wages approaching $100,000 – more than double the state median.
In addition to strengthening Pennsylvania’s economy, natural gas production continues to translate into real-world cost savings for consumers. Households and businesses that use natural gas across the Commonwealth saved nearly $10 billion last year compared to 2008 prices, an MSC analysis of Pa. PUC data shows.
“The natural gas impact fee provides critical financial support to communities across Pennsylvania. Pennsylvania developed a first-in-the-nation plan to fund communities directly rather than passing money to the state capital first and hoping it made its way to impacted communities,” said Pennsylvania State Association of Township Supervisors executive director David Sanko. “These funds enable townships and other municipalities to invest in key priorities such as water and sewer upgrades, road and bridge improvements, public safety, and affordable housing initiatives.”
While all counties receive a share of annual impact fee revenues, distributions are weighted toward regions with active development. The fee structure – based on the number of wells drilled, their age and market prices – means total collections fluctuate from year to year. State agencies, including the Pa. Department of Environmental Protection, the Fire Commissioner, Pa. Emergency Management Agency and Pa. PUC also receiving funding directly from the impact fee for programs like the Pa. Housing Affordability & Rehabilitation Enhancement (PHARE) fund, the Greenways, Trails, and Recreation Program, the Watershed Restoration Protection Program, among others.
