IFO: Act 13 Drilling Impact Fee 2020 Revenue To Drop By Over $55.5 Million; Dropped By Over 42% In Just 2 Years

On January 5, the Independent Fiscal Office issued a report estimating the Act 13 drilling impact fee revenue will drop by over $55.5 million to $144.850 million from the 2019 total of $200.365 million.

Since 2018, revenue from the Act 13 drilling impact fee has dropped by $106.981 million -- by over 42.4 percent-- from $251.831 million in 2018 to $144.850 million in 2020.

This means a decrease in funding for these key programs in 2020--

-- Counties, Municipalities & Housing: from $109.180 million to $75.872 million - $33.3 million

-- Marcellus Legacy Fund: from $72.787 million to $50.581 million-- $22.2 million

Funding for county conservation districts and state agencies will remain the same.

The IFO said the primary reasons for the decrease in collections include--

-- Lower Fee Schedule: Due to the price dropping below $2.25, the impact fee schedule decreased by $5,000 per horizontal well compared to CY 2019 levels. Estimated impact: -$52.1 million.

-- Aging Wells: The net impact of (1) reduced collections from aging wells that pay lower fees and wells that become exempt offsetting fees from new wells and (2) any payments for the prior year that were not received in time for disbursement. Estimated impact: -$3.8 million.

Click Here for a copy of the full report.

For information on past distributions of Act 13 drilling impact fee revenue, visit the PUC’s Act 13 Impact Fee webpage.

Related Articles - PA Budget:

-- New Poll Shows 90% Of PA Voters Want Senate, House Members To Address Environmental, Conservation Priorities, Provide More Funding For Critical Programs

-- PA Farm Bureau, 45 Other Hunting, Angler, Business, Environmental, Watershed Groups Urge Senate, House To Pass On-Farm Conservation Funding Bill This Year

-- Senate Environmental Committee Puts Spotlight On Funding Needed To Implement PA Clean Water Plan At Chesapeake Bay Briefing [January 2020]

-- $201,977,000 Diverted From Environment, Energy Funds To Balance FY 2020-21 State Budget

-- Analysis: 2020 Is A Make Or Break Year For Environmental Funding

-- House Speaker Cutler: Republicans Will First Raid Dedicated Funds To Balance Budget In November

-- House Republicans Pass Bill To Freeze Funding For County Conservation Districts, Local Parks, Farm Conservation, Watershed Restoration Projects; Will Hurt Local Economies

-- House Republicans Moving Bill To Reallocate Keystone Fund, Damage Vitality Of PA’s Outdoor Economy

-- Analysis: Why Republican Freeze On Funding For Local Parks, Trails, Farm Conservation, Mine Reclamation, Recycling Is Bad For The Economy, Communities, The Environment

[Posted: January 5, 2020]  PA Environment Digest