An impact fee imposed on Marcellus Shale natural gas wells will have generated about $630 million since 2012 by year's end, said Pennsylvania Gov. Tom Corbett.
Pennsylvania that year passed a bill, known commonly as Act 13, calling for the impact fee instead of a severance tax. The state Supreme Court in December struck down provisions of the law that pre-empted local zoning to allow for drilling activity statewide.
Data released by the Public Utility Commission on April 4 show the state expects to collect $224.5 million in 2014 through Act 13's impact fee assessed on unconventional wells. Coupled with the $406 million collected in 2012 and 2013, Act 13 will generate more than $630 million since it was signed into law.
The state, according to Corbett, a Republican, directs the majority of the funds directly to local communities.
Democrats are still vying for a severance tax, saying the impact fee is not enough.
A plan introduced by state Sen. John Yudichak, D-Plymouth Township, would levy a 5% tax on Marcellus extraction, the revenue from which would help fund education, environmental and economic development initiatives. Yudichak estimated that the severance tax would generate $720 million in the first year alone.
Under the proposal, education would receive $375 million in fiscal 2014-15, that amount increasing to more than $1 billion by 2020. Roughly $195 million of the revenue in fiscal 2014-15, and $250 million every year thereafter would fund Department of Community and Economic Development programs. DCED functions include oversight of distressed municipalities.
Fitch Ratings and Standard & Poor's rate Pennsylvania's general obligation bonds AA. Moody's Investors Service rates them Aa2.
