The natural gas impact fee continues to be a moneymaker for Pennsylvania. This year’s allocation, generated from 2025 natural gas drilling activity, produced nearly $244 million. Since 2012, the impact fee has contributed an astonishing $3.1 billion to Pennsylvania.

These funds — which are collected and distributed annually — help to pay for countless community improvement projects throughout the state. Every county — regardless of whether there is drilling within its borders or not — gets a portion of the annual allocation. The rest of the funds go towards statewide environmental and grant programs that also benefit communities across the Keystone State.

The impact fee is one of those rare taxes where you can see the benefits. You can follow the allocation of money to see how it is being utilized. The distribution is based on a fair formula. Its allowable uses are clearly spelled out in law.

These funds are having a huge impact on local municipalities who can utilize them to help pay for important local improvements that might otherwise have to be put off until other funding sources became available.

There is a misunderstanding that the impact fee is ending and that this beneficial revenue stream for local communities is therefore ending. The good news is the impact fee will continue to benefit local communities as new wells will pay an impact fee for fifteen years.

The impact fee is working for Pennsylvania, and it will continue to for decades to come. As more wells come online, they will contribute to the annual impact fee collections and therefore benefit every community in Pennsylvania. It is an example of smart tax policy at work.

Gretchen Sterns

Deer Lake