Act 13 impact fees expected to total nearly $225 million
Pennsylvania is expecting to bring in nearly $225 million this year through the state’s Act 13 impact fees on unconventional natural gas wells. The Public Utility Commission hopes to divvy up the funds by mid-June, and most of that money will be allocated to county and municipal governments across the state.
Impact fees have brought nearly $6 million into Greene County and $9 million into Washington County since Act 13 was passed in 2012. Since then, impact fees generated more than $630 million in Pennsylvania, including this year’s pot of money.
Patrick Henderson, energy executive in Gov. Tom Corbett’s office, said PUC’s allocation formula “will look at exactly where new wells have been drilled, both by county and municipality,” which in turn feeds into the amount of money a government body receives directly.
Governments can use Act 13 funds for various purposes, including environmental, public safety, infrastructure and emergency response initiatives.
In a news release, Corbett said, “Through Act 13, we are protecting public health and safety, safeguarding our environment, and making sure our world-class energy industry grows in a responsible way.”
Marcellus Shale Coalition President Dave Spigelmyer said in a news release the new stream of revenue is “having a positive and real impact in communities with shale development, as well as those without active Marcellus production.”
In addition to government allocations, the impact fees also contribute to state agencies to strengthen their oversight of drilling activities. These agencies include the Department of Environmental Protection, Pennsylvania Emergency Management Agency, Pennsylvania Public Utility Commission, the Office of the State Fire Commissioner and the Pennsylvania Fish and Boat Commission. County conservation districts also receive a portion of funds.
Conservation programs such as Growing Greener and the Marcellus Legacy Fund also receive funding from Act 13 fees. Growing Greener, established in 1999, addresses farmland preservation, water and sewer loans/grants, oil and gas well plugging, mine drainage treatment, state park infrastructure and conservation grants.
The Legacy Fund, a newly created program administered by the Commonwealth Financing Authority, brought more than $65,000 into Greene County and more than $350,000 into Washington County for bridges and improvement projects alone in the past two years. The fund also contributes to watershed restoration, abandoned mine reclamation, open space, greenway, trail and recreation projects, flood control and other environmental purposes.