Natural Gas Impact Fee Generates $164.5M In 2024 For Communities Across Pennsylvania

Over $2.88B in funding allocated for critical state programs, local projects since 2012

Today, the Pennsylvania Public Utility Commission (PUC) released its latest report on impact fee collection and distribution that showed the natural gas industry contributed $164.5M in 2024, bringing the total revenue collected since 2012 to more than $2.88B.

“Natural gas is fundamental to Pennsylvania’s economy and future, pumping millions of dollars annually into communities and state programs while providing essential energy for households and businesses,” said American Petroleum Institute Pennsylvania Executive Director Stephanie Catarino Wissman. “Natural gas benefits every corner of the Keystone State, channeling critical funding into dozens of road and bridge repairs, park and conservation projects, public safety and other community needs, demonstrating how this one-of-a-kind program is working for Pennsylvanians.”

As outlined in Act 13 of 2012, the impact fee is based on the average annual price of natural gas on the New York Mercantile Exchange (NYMEX) and the age of the well.

“As the second-largest natural gas-producing state in the nation, Pennsylvania helps provide the affordable energy that Americans rely on to power their homes and supports tens of thousands of jobs while reducing carbon emissions in the power sector to the lowest levels in a generation,” said Wissman. “This is Pennsylvania’s energy advantage, and it underscores the importance of pro-energy, pro-growth policies and timely, predictable permitting to strengthen it.”

According to the PUC’s report, county and municipal governments with drilling operations will receive $86.5M, while $20.4M will be distributed to state agencies. Additionally, $57.7M will be transferred to the Marcellus Legacy Fund, which provides financial support for environmental, highway, water and sewer projects, greenways and other projects in every county of the state.

Under Act 13, the PUC is responsible for collecting and distributing the impact fee to state agencies and local jurisdictions.

About The American Petroleum Institute (API)
API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.