When Pennsylvania’s Act 13 was signed into law 14 years ago, the goal of the bipartisan policy was straightforward: encourage responsible natural gas development, further strengthen environmental safeguards and ensure local communities see real, lasting benefits tied to energy production. Nearly a decade and a half later, the results speak for themselves.
Since 2012, the Act 13-created impact fee – Pennsylvania’s unique tax on natural gas production – has generated over $3.1 billion in revenue for counties and municipalities across the state, with hundreds of millions distributed every year.
Importantly, these significant tax revenues are overwhelmingly directed to county and local governments, helping to make possible critical road repairs, water system upgrades, emergency response investments as well as community-level enhancement projects in parks, trails and public safety.
In many communities across the commonwealth, the revenue from natural gas development has meant the difference between postponing needed infrastructure improvement projects and actually getting them done.
This includes regions of Pennsylvania where no natural gas development occurs. Take for example York, Dauphin and Lebanon counties, who have and continue to receive millions of dollars in impact tax revenue – helping to fund safer roads and bridges and stronger emergency response capabilities. Successful projects include the Codorus Creek Beautification Initiative and upgrades at Robert A. Kinsley Nature Reserve in York County, including a universal-access trail and ADA parking, just to name a few.
These same impact fee dollars have enabled Dauphin County to advance its Stream Assessment Program, strengthening environmental monitoring and watershed protection efforts, and build a community amphitheater in Lower Paxton Township, while Lebanon County has enhanced recreational opportunities through Wheatland Woods Park Improvements, creating better access to green space for area residents.
The law’s authors had the wisdom of empowering local governments with the flexibility to make decisions about how these tax revenues are best directed for their community’s specific needs. County commissioners and township supervisors – who are closest to their communities – decide how best to use those funds to meet their unique needs. That’s why the investments look different everywhere. One town fixes bridges. Another upgrades a fire station. Another invests in broadband or stormwater systems. The money follows local needs, not a one-size-fits-all mandate.
In the bipartisan Act 13 law, natural gas revenue not only supports local communities but also helps fund important statewide priorities and environmental initiatives. A portion of impact tax revenue is directed to the Marcellus Legacy Fund and the Growing Greener program, which together support abandoned mine cleanup, watershed restoration, flood mitigation, recreational projects, open space conservation, and plugging orphan wells.
Beyond this critical source of revenue, Act 13 also modernized Pennsylvania’s environmental rules for unconventional natural gas development to some of the highest standards in the country. The law created more than forty new or enhanced environmental standards, including increased setback distances, expanded public disclosures, strengthened protections for drinking water sources, and well plugging. In short, Act 13 is the standard bearer of environmental stewardship.
That balance matters, yet it’s often missing from today’s debate.
The broader shale revolution, guided by Act 13, has fundamentally reshaped Pennsylvania’s economy. Locally-produced natural gas heats more than half of Pennsylvania’s homes and provides reliable and cleaner power to millions of families and businesses across the region. Our abundant and affordable natural gas is also improving regional manufacturing competitiveness while enhancing U.S. energy security. In fact, the natural gas industry supports approximately 123,000 jobs – many across the building and union trades – throughout Pennsylvania and contributes roughly $41 billion in annual economic activity. And lower natural gas prices saved Pennsylvania consumers over $18 billion in lower utility rates over just the past two years.
Our industry takes its commitment and responsibility to being good neighbors seriously. Through prioritizing safety and transparency, we’re giving back, investing and working with a diverse set of stakeholders – conservation groups, the skilled trades, workforce development organizations and educational institutions – to maximize this unique energy opportunity for the Commonwealth and our nation.
With Act 13, Pennsylvanians didn’t have to choose between development and community safety, or between economic growth and investment. We chose all of the above and did so in a way that has held up for more than a decade.
Pennsylvania’s impact fee continues to deliver real benefits to real communities, year after year. As we mark yet another milestone of this policy, we are reminded of what is possible when stakeholders work together toward shared goals: economic opportunity, environmental responsibility and investing directly in our communities.
