Rep. Keller discusses Marcellus Shale Impact Fees, importance to local economies
HARRISBURG, Pa. (WENY) – Bradford and Tioga Counties are slated to get nearly $14 million combined from impact fees provided by the Marcellus Shale Coalition.
The Marcellus Shale is a sedimentary rock that stretches across several states, including New York and Pennsylvania. It contains a significant amount of natural gas, which is collected in Pennsylvania in part through hydrofracking.
In 2012, Pennsylvania enacted a tax on natural gas drilling across the Commonwealth; since then, those impact fees have provided more than $2 billion for local governments and environmental conservation programs. The program is unique to Pennsylvania and the money goes to all 67 counties, whether or not they have drilling operations in that county.
“It means so much to the local governments in the Commonwealth of Pennsylvania because it’s money that goes to address issues that they have to administer, whether it’s housing or healthcare… or public safety,” said Congressman Fred Keller. “And they have the money right there dedicated. It doesn’t have to go through Washington DC or Harrisburg.”
On Monday, Congressman Keller participated in a House Energy and Commerce Committee Forum, discussing concerns over how President Joe Biden’s energy agenda could affect things like impact fees going to communities across Pennsylvania.
According to a recent report from the Associated Press, impact fee revenue in the state dropped to $146 million in 2020, down $54 million from 2019, due to “reduced drilling and diminished prices during the pandemic”. Locally, Bradford County received $9,371,305 and Tioga County got $4,997,413.
Congressman Keller argues that recently proposed energy and tax policies – including the proposed tax hike on corporations and those making more than $400,000 a year -- from the White House could have a major negative impact on local economies.
“The Biden’s Administration’s policies are going to cost Americans more in higher energy costs and lost opportunities at the local level. So the President can talk all he wants about not raising taxes, but when our states and our local governments don’t have the revenue that they were getting due to the activity of the development of this energy, he’s the reason their local taxes are increasing.
“…In addition to that, they’re also impacting good-paying jobs… When you don’t have people producing energy and doing that work, it’s not just the energy job. It’s all the downstream jobs that happen in our communities that support the energy industry, whether it’s the local service station, or restaurant, or hotel… And he’s [Biden] not factoring all that in when he’s talking about impacts in what they’re doing.”