Natural Gas Revenue Generated from Pennsylvania’s Impact Tax Tops $2.2 Billion Over Past Decade, Benefits All Pennsylvanians

HARRISBURG, PA – June 17, 2022 - American Petroleum Institute Pennsylvania (API PA) Executive Director Stephanie Catarino Wissman offered the following statement on the Public Utility Commission’s (PUC) report on impact fee collection and distribution from the taxation of the natural gas industry for the 2021 reporting year:

“Every corner of the commonwealth has directly benefitted from Pennsylvania’s impact fee,” said Wissman. “This tax on natural gas wells has generated new revenue - totaling more than $2.2 billion over the past decade – for a wide variety of environmental, conservation, infrastructure, public safety and recreation projects. The report shows how natural gas production in Pennsylvania provides hundreds of millions annually in essential revenue while strengthening our economy.”

As outlined in Act 13 of 2012, impact fee revenue depends on the average annual price of natural gas on the New York Mercantile Exchange (NYMEX), which increased in 2021 compared to 2020, when the demand for natural gas declined with the COVID-19 pandemic and a mild winter. Impact tax revenue reached $234 million in 2021, nearly 60 percent more than 2020, and one of the highest collections since the impact tax was imposed ten years ago.

“As the demand for energy rebounds, policy certainty and long-term energy solutions are needed to help ensure that Americans have access to affordable and reliable energy,” said Wissman. “Pennsylvania’s abundant shale gas presents a unique opportunity to bolster domestic supply while funding critical infrastructure and environmental programs across the state, even in areas without natural gas development.”

Under Act 13, the PUC is responsible for collecting and distributing the impact fee to state agencies and local jurisdictions.

API Pennsylvania is a division of API, which represents all segments of America’s natural gas and oil industry supporting more than 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our nearly 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence^®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

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