News Summary
Pennsylvania has announced a distribution of $164.5 million from natural gas impact fees for 2024, benefiting local communities affected by gas drilling. Despite a $15 million decrease from 2023 due to fewer new wells and steady prices, funds will support essential public services, infrastructure, and environmental improvements across 67 counties, including specific allocations for Delaware Valley counties. Payments are set to begin in July 2025.
Pennsylvania has announced the distribution of $164.5 million derived from the natural gas impact fee for the year 2024, an essential funding source for local communities affected by gas drilling. The impact fee revenue has significantly contributed to various projects and initiatives since the program’s inception under Act 13 of 2012, with total earnings surpassing $2.88 billion.
This year’s distribution breakdown includes $86.5 million allocated to counties and municipalities directly impacted by natural gas drilling, $57.7 million directed to the Marcellus Legacy Fund for environmental and infrastructure improvements, and $20.4 million designated for state agencies across Pennsylvania. However, it is important to note that the overall funds for 2024 reflect a decrease of approximately $15 million compared to 2023, primarily due to a reduction in the number of new gas wells and steady natural gas prices.
According to data, the natural gas production average price was recorded at $2.74 per one million British Thermal Units (MBtu) for 2024. The past year saw the drilling of only 314 new natural gas wells, a significant decline from 421 new wells in 2023. This change has directly influenced the lower impact fee revenue.
Financial Impact on Pennsylvania Communities
The natural gas impact fee serves as a critical financial asset for local townships, facilitating various public services and infrastructural enhancements. The funds are used to support water and sewer upgrades, road improvements, public safety initiatives, and affordable housing projects. Such investments are vital, especially in regions that do not host natural gas development.
During its 12 years of operation, the impact fee distribution has positively affected all 67 counties across Pennsylvania, allowing local governments to better serve their constituents. In 2022, the state’s natural gas sector generated over $6 billion in tax revenues while supporting more than 120,000 jobs, with average earnings exceeding $100,000—more than double the state median salary. Additionally, households utilizing natural gas enjoyed nearly $10 billion in savings last year when compared with prices from 2008.
Specific Allocations for Delaware Valley Counties
In the recent distribution, counties in Delaware Valley are set to receive a total of $2.7 million, highlighting the impact fee’s reach and effectiveness. The specific allocations for various Delaware Valley counties are as follows:
- Bucks County: $424,409
- Chester County: $361,206
- Delaware County: $378,902
- Montgomery County: $570,760
- Philadelphia: $1 million
Future Distribution Timeline
The Pennsylvania Public Utility Commission (PUC), responsible for overseeing the collection and allocation of the natural gas impact fee, has submitted the details for this distribution to the Pennsylvania Treasury. Payments are expected to commence in early July 2025, once the necessary financial processes are completed.
PUC Chairman Stephen M. DeFrank reiterated the significance of the impact fee as a sustainable source of support for affected communities, emphasizing its role in enhancing local infrastructure and environmental stewardship.
Overall, the natural gas impact fee remains a pivotal element for advancing public services and fostering community resilience in Pennsylvania, despite the recent decrease in available funds for 2024. The continued support from this program signifies a commitment to invest in local needs and priorities while addressing the challenges posed by fluctuations in natural gas production.
Deeper Dive: News & Info About This Topic
- LVB: Natural Gas Impact Fee Brings Over $164M to PA
- Wikipedia: Natural Gas Industry in the United States
- Delaware Valley Journal: $164.5M in PA Natural Gas Impact Fees to be Distributed
- Google Search: Pennsylvania Nature Resource Management
- Reuters: Pennsylvania PUC to Distribute Over $164.5 Million Natural Gas Impact Fees
- Encyclopedia Britannica: Pennsylvania
- NC News Online: Column by Greg Vitali on Pennsylvania’s Oil and Gas Industry
Author: STAFF HERE PHILADELPHIA WRITER
PHILADELPHIA STAFF WRITER The PHILADELPHIA STAFF WRITER represents the experienced team at HEREPhiladelphia.com, your go-to source for actionable local news and information in Philadelphia, Philadelphia County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Mummers Parade, Philadelphia Flower Show, and Thanksgiving Day Parade. Our coverage extends to key organizations like the Greater Philadelphia Chamber of Commerce and United Way of Greater Philadelphia, plus leading businesses in telecommunications, food services, and healthcare that power the local economy such as Comcast, Aramark, and Children's Hospital of Philadelphia. As part of the broader HERE network, we provide comprehensive, credible insights into Pennsylvania's dynamic landscape.
