Local Government Information

Act 13 (Impact Fee) has many implications for state and local governments, including fee disbursement, distribution and reporting.

Impact Fee Distributions to State & Local Governments

For 2012, the Commission was required to disburse by December 1 the Impact Fees collected. For each year after 2012, the Commission must disburse Impact Fee funds by July 1. Local government Impact Fee distributions are available.

From the Impact Fees collected, Act 13/Impact Fee earmarks about $25.5 million "off the top" for state agencies to offset the statewide impact of drilling. Additionally, for the first three years of the program, a fixed amount "off the top" is distributed to the Marcellus Legacy Fund. After the $25.5 million distribution to state agencies and the fixed distribution to the Marcellus Legacy Fund, the remainder of the fees collected is distributed as follows:

• 60 percent to the Unconventional Gas Well Fund
  • These funds are distributed to counties and municipalities with wells.
  • These funds must be used for the 13 purposes set forth in Section 2314(g) of Act 13.
  • The Unconventional Gas Well Fund Usage Report outlines the purposes for which counties and municipalities must spend these funds. This form must be submitted to the Commission annually by April 15.
     
• 40 percent to the Marcellus Legacy Fund
  • 15 percent of the Marcellus Legacy Fund is distributed by the Commission to all counties, regardless of whether the county has wells located within its borders, to be used for certain environmental initiatives, as set forth in Section 2315(a.1)(5) of Act 13.
    • Counties ARE NOT required to report the expenditure of these funds to the Commission.
  • Other funds making up the Marcellus Legacy Fund include the Highway Bridge Improvement Fund and the Environmental Stewardship Fund.

Local Government Impact Fee Distributions

Information is available regarding the amount of money distributed to local governments at the PUC's Act13/Impact Fee Interactive Website. Click on "Reports" then select the type and year of the report you would like to view.  The site includes information on how much money each municipality received from the Impact Fee and distributions to counties from the Marcellus Legacy Fund.

County and Municipal Disbursements 

Overall Breakdown of Impact Fee Money 

Specific information on how the Impact Fee Distributions were calculated also is available.  From the map, click on the county to receive information about fees paid to the county and municipalities; demographics such as population and highway miles; and well-count information.

Local Government Reporting Requirements

Municipalities and counties receiving funds from the Unconventional Gas Well Fund are required to report the expenditure of these funds to the Commission annually.  However, counties are NOT required to report the expenditure of funds distributed by the Commission from the Marcellus Legacy Fund.  The Unconventional Gas Well Fund Usage Report is available.

Please note that the checks distributed by the Commission to counties include the total amount of funds distributed from both the Unconventional Gas Well Fund and the Marcellus Legacy Fund.  As such, counties must review their local distribution information and report the usage for the line item labeled "Counties with Spud Unconventional Wells."

Act 13/Impact Fee also places a restriction, or cap, on the amount of Impact Fee funds municipalities may receive from the Unconventional Gas Well Fund.  This cap does not apply to counties.  The cap is the greater of $500,000 or 50 percent fo the municipality's total budget for the prior fiscal year beginning with the 2010 budget year.  These caps may be adjusted to reflect upward changes in the Consumer Price Index (CPI).

Municipalities must submit a Municipality Approved Budget Report Form by March 1 of each year.

Municipalities that fail to properly file their Municipality Approved Budget Report Form will be limited to a $500,000 CPI adjusted maximum distribution from the Unconventional Gas Well Fund.

Act 13 Reporting Requirements - A list of local government reporting requirements for Act 13, including important dates and frequently asked questions. Updated Jan. 2023.