Independent Fiscal Office Estimates CY 2022 Drilling Impact Fee Will Generate Record $274.8 Million In Revenue At Lowest Tax Rate On Record

On October 31, the Independent Fiscal Office estimated the Calendar Year 2022 Act 13 Drilling Impact fee will generate a record $274.8 million in revenue at the lowest effective tax rate on record-- 0.7 percent.

CY 2022 revenue is a $40.4 million increase over CY 2021-- 17.2 percent.

The IFO said the reason for record revenues is due to the spike in natural gas prices in 2022 that results in a higher per well fee under the fee formula in Act 13 of 2012 as well as an increase in the number of new producing wells.

For CY 2022, the ETR is projected to decline to 0.7 percent. This reduction is due to a notable increase in the market value of natural gas that more than offsets the increase in estimated impact fee collections. 

Market value is projected to increase by 126% from the prior year, the strongest growth since the inception of the impact fee. This is entirely due to price increases, as statewide production growth for CY 2022 is projected to remain flat.

Click Here for a copy of the IFO fee report.

Related Articles:

-- TribLive: Homeowners Brace For Winter As Prices To Heat Homes Skyrocket, Biggest Spike Is For Natural Gas - More Than 34% Increase

-- PA PUC: Cost Of Natural Gas Provided By Major Utilities In PA Increased As Much As 154% Over Last Year [PaEN]

-- National Fuel Gas Requests PUC To Approve 9.2% Increase In Base Delivery Charge; Separate Cost Of Gas Up 127.8% Since May 2021 [PaEN]

-- PUC Approves 9% Increase In The Basic Monthly Bill For Typical PECO Natural Gas Division Customers; On Top Of An 103.2% Increase In Cost Of Natural Gas [PaEN]

-- PA Low-Income Home Energy Assistance Program (LIHEAP) Will Accept Applications Starting Nov. 1 [PaEN]

[Posted: October 31, 2022]  PA Environment Digest