The $165 million generated by Pennsylvania’s natural gas impact tax in 2024 demonstrates yet another way the state’s energy abundance is a win for residents and the Commonwealth. Over 14 years, Pennsylvania’s unique production tax has yielded nearly $3 billion – money that’s gone straight to local communities, not just state coffers in Harrisburg.
“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,” said Jim Welty, president of the Marcellus Shale Coalition.
From the impact fees collected annually, revenues are distributed across county and municipal governments (both where shale gas development occurs and where it doesn’t), provided to state agencies overseeing the industry and for statewide environmental grant programs like the Marcellus Legacy Fund and Growing Greener initiative. Details on how communities can access these funds can be found here.
“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.
Here’s what local officials are saying about these annual returns:
Latrobe Bulletin: County, communities benefit from shale impact fees
Nearly $345,000 in impact fees paid by Marcellus Shale drilling companies will benefit residents of the 59th Legislative District and Westmoreland County. In addition to the municipal funding, Westmoreland County will receive more than $1 million from the impact fees… “It’s good to see our residents benefit from the natural resources developed in our region,” Rep. Rossi said.
Williamsport Sun-Gazette: Gas impact fee brings another $6.9 million to Lycoming County, its communities
Beyond monies being sent directly to local governments, revenue from impact fees have funded a wide variety of projects in the region including rehabilitation of the levee in the borough of South Williamsport, the Muncy Creek streambank restoration and protection project and the Basin Street/Susquehanna Riverwalk Connection in Lycoming County, among others.
Bradford Era: Annual Pa. natural gas impact fee revenues top $164 million
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.
Pennsylvania Business Report: State’s natural gas impact fee generates $164.5M in 2024, say PA regulators
The industry also continues to deliver consumer savings, according to an analysis of PUC data by the Marcellus Shale Coalition that found that households and businesses across Pennsylvania saved nearly $10 billion in energy costs last year compared to 2008 prices.
Lehigh Valley Business: Natural gas impact fee brings over $164M to PA
Over the past 12 years, the impact fee has provided a consistent stream of funding to all 67 Pennsylvania counties – even regions without industry activity, according to a release. Funds can be used for infrastructure improvements, emergency services, economic development projects, and environmental protection.
Senator Gene Yaw: Yaw: Natural Gas Impact Fee Generates Nearly Half a Billion Dollars for 23rd District Since 2011
“The Impact Fee not only funds critical projects locally but also a wide variety of important environmental projects in communities throughout the state,” Yaw said. “The natural gas industry has been a great partner in creating new jobs and opportunities, and today’s announcement is another reminder of the importance of this industry in Pennsylvania.”
Delaware Valley Journal: RPT: PA Collected $164M in Revenues From Natural Gas in 2024
Pennsylvania’s budget coffers received more than $164 million from the state’s natural gas industry last year, the Pennsylvania Public Utility Commission (PUC) announced Monday. Industry advocates say that, while the number is slightly lower than 2023, it’s yet another reminder of how important the energy sector is to Pennsylvania and its economy.
Senator Camera Bartolotta: Impact Fee Tax Brings $23.7 Million Back to 46th District, Bartolotta Says
“Out of all 67 counties in the state, Washington and Greene counties are both in the top five for the amount of Impact Fee tax dollars received. Our communities will have significant support that doesn’t burden taxpayers for public infrastructure needs, like stormwater systems, emergency preparedness, environmental programs, tax reductions and social services,” Bartolotta said.
Representative Aaron Bernstine: Bernstine Announces Butler, Lawrence Counties Receiving Funding from Natural Gas Drilling Impact Fees
“These impact fees are a direct investment in our communities, helping to build stronger roads, cleaner water systems and safer neighborhoods,” said Bernstine. “The natural gas industry continues to be a key driver for local progress and opportunity.”
Representative Jamie Barton: Barton, Argall, Gebhard Announce Nearly $379,000 in Natural Gas Impact Fees Awarded to Schuylkill, Berks Counties
“Impact Fee distributions are very beneficial because they fund important updates to our communities that enhance our lives – and none of the dollars come out of taxpayer pockets,” Gebhard said. “We’re able to improve parks, trails, creeks and more without further burdening taxpayers, which is always my goal.”
Beaver County Radio: State Rep Kozak Announces More Than $862,000 in Natural Gas Impact Fees Awarded to 14th District
“The real benefit the natural gas industry provides to Pennsylvania is a stable, reliable source of energy to power our homes and businesses,” Kozak said. “These impact fees are a welcome bonus to improve our communities.”
Wyoming County Examiner: Wyoming County, municipalities receive $2.2 million in gas drilling impact fees
“I am pleased Wyoming County communities continue to reap the economic benefits of the impact fees created by Act 13,” said Pickett. “The extra revenue helps local governments mitigate the effects of drilling activity and also supports other local improvement projects.”
WFMJ: Lawrence County municipalities receive $200,000 in impact fees from drilling companies
“This funding is an investment in our communities,” said Brown. “It supports road repairs, public safety and essential services, all without burdening local taxpayers. The natural gas industry continues to play a valuable role in strengthening our local economy.”
Impact fees continue to improve communities every year in virtually every corner of the Commonwealth. As the Williamsport Sun-Gazette editors wrote plainly, these returns are just one part of Pennsylvania’s broader natural gas success story.
“We should be thankful for the $6.9 million that will help our communities — and thankful for all the ways that $6.9 million is only part of the story of how Marcellus Shale development brought greater opportunity to our region.”
