Pennsylvania’s natural gas impact fee has become one of the Commonwealth’s most successful examples of responsible energy development paired with local investment. Established under Act 13 of 2012, the impact fee was designed with a straightforward principle in mind: communities hosting natural gas development should directly benefit from the economic activity occurring in their backyards.
More than a decade later, the results speak for themselves.
Nearly $3 billion in impact fee dollars has been funneled into counties, municipalities and statewide environmental programs, all while driving Pennsylvania’s economy forward and transforming the state into a national energy powerhouse. The program has proven that economic growth, environmental stewardship and community investment can work hand in hand.
Unlike a severance tax that directs revenues into a state’s general fund, Pennsylvania’s impact fee is intentionally structured to return money directly to local communities and environmental programs. That distinction matters.
In the southwestern part of the state, Washington County, one of the highest-producing counties in the Commonwealth, directly receives approximately $5 million annually that has gone toward upgrades to stormwater systems, emergency preparedness, environmental programs, tax reductions and social services.
Communities experiencing growth associated with natural gas development receive tangible support for the infrastructure, public safety and environmental needs that accompany growth, while areas without natural gas extraction also receive revenue from the impact fee for critical projects.
Take the capital region, for example.
Dauphin County has utilized impact fee revenues to advance critical local efforts, including watershed protection and upgrades to county-owned parks and recreational amenities.
The impact fee has also helped repair and replace roads and bridges, modernize sewer and water systems, improve emergency response capabilities and support county conservation districts. Volunteer fire departments, local governments and emergency management agencies across Pennsylvania have all benefited from investments made possible through the fee.
A substantial portion of the impact fee revenue supports programs dedicated to watershed restoration, abandoned mine reclamation, park improvements, flood mitigation and habitat conservation. Furthermore, the fee has helped fund projects to plug orphan and abandoned wells, improve stormwater management and protect streams throughout Pennsylvania.
The program has also provided stability for local governments. Especially in rural areas, impact fee revenue has allowed local governments to address long-standing needs without placing additional burdens on taxpayers. That financial flexibility has helped many communities complete projects that otherwise may have remained out of reach.
The breadth of these investments demonstrates why the impact fee works and will continue to do so for decades to come. Revenue generated from natural gas wells is reinvested into communities, helping to keep Pennsylvania prosperous and beautiful.
At the same time, Pennsylvania’s natural gas industry has continued to support family-sustaining jobs, manufacturing growth and reliable energy for consumers. In Pennsylvania, the natural gas and oil industry supports 400,000 jobs and contributes over $77 billion to the state’s economy, according to the PwC.
The shale revolution has delivered real results and positioned Pennsylvania as one of the nation’s leading energy producers while reducing reliance on foreign energy sources. Pennsylvania’s experience shows that energy development can advance both economic growth and environmental progress.
Importantly, the fee has also shown durability through changing economic and political conditions. Even during periods of fluctuating energy prices and the COVID-19 pandemic, the program has continued delivering a consistent stream of meaningful funding to communities across the state.
From 2020 to 2024, the impact fee has generated over $1 billion. That consistency has allowed counties and municipalities to plan ahead and invest strategically in long-term priorities.
As more wells are drilled in Pennsylvania, they are subject to the impact fee for 15 years. Natural gas development combined with the impact fee is a winning combination for Pennsylvania – and one reason why the Commonwealth continues to be the second-largest producer of natural gas in America.
Author: Stephanie Catarino WissmanPublication: PennLive
https://www.pennlive.com/opinion/2026/06/pennsylvanias-natural-gas-impact-fee-proves-energy-development-and-community-investment-can-coexist-opinion.html