Jun. 21, 2018

HARRISBURG – Rep. Tedd Nesbit (R-Mercer/Butler) said today that nearly $2.9 million in revenue from the state’s impact fee program will be redirected back to communities in the 8th Legislative District in Butler and Mercer counties, proving once again that the drilling industry is paying its fair share in business taxes.

“The impact fee has operated as it was intended, and that has been to ensure that municipalities and counties directly affected by deep well drilling would be compensated,” Nesbit said. “A large chunk of that impact fee money – 60 percent of the statewide total – goes right back to the communities where drilling is taking place. Not only do the fees help repair roads and bridges damaged by heavy wear and tear, but they also assist with emergency response, human service needs and a variety of other uses.”

Locally, Butler County will receive $2.1 million, and eligible municipalities within the 8th Legislative District in that county will share $405,431. In addition, $318,634 will benefit Mercer County, with $53,132 being shared among the eligible municipalities in the 8th District.

Statewide, $209.6 million was generated for the 2017 production year, an increase of $36 million or about 21 percent, over last year’s amount. This revenue from Pennsylvania’s drilling activity is more than the drilling tax collected by the states of West Virginia, Ohio, Arkansas and Colorado combined, despite these four states producing more natural gas than Pennsylvania.

Over the past seven years, more than $1.4 billion in impact fees have been returned to communities across Pennsylvania, according to the Public Utility Commission (PUC), the agency charged with collection. Sixty percent of the total impact fee revenue is divided among municipalities with drilling activity, while the remaining 40 percent is collected for statewide uses. Local counties also see a share of that revenue.

In addition, impact fee revenue that is directed to state government will help to enforce clean air and water statutes; plan for emergencies; develop, deliver and sustain training and grant programs for first responders; and help transition traditional fuel-powered vehicles to clean natural gas.

Checks are expected to be distributed in early July.

Representative Tedd Nesbit
8th Legislative District
Pennsylvania House of Representatives

Media Contact: Jennifer Keaton
(717) 705-2094
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