PUC Distributes $244M of Impact Fees (Up 48%) to PA Communities
Yesterday, the Pennsylvania Public Utility Commission (PUC) announced the distribution of $243,877,400 in natural gas impact fees collected from producers for the 2025 reporting year, a whopping 48% increase over 2024. The reason for the big increase was the higher price that natural gas fetched last year and a significant uptick in the number of new wells drilled. This year’s distribution brings the cumulative total of impact fees collected and distributed since 2012 to more than $3.12 billion! Read More “PUC Distributes $244M of Impact Fees (Up 48%) to PA Communities”
Yesterday, Pennsylvania Department of Environmental Protection (DEP) Secretary Jessica Shirley visited the site of an orphaned well being plugged in Allegheny County, PA, to celebrate the plugging of the 400th orphaned well since Josh Shapiro assumed the governorship in January 2023. There’s nothing wrong with Shapiro’s bragging and chest-puffing, except that Ohio plugged 480 orphaned wells last year. Since January 2023, Ohio has plugged 1,214 orphaned wells, compared to PA’s 400 wells (3X more). Which makes us ask: Why does it take so much longer and cost so much more to plug wells in PA than in OH? 
Pennsylvania imposes an annual “impact fee” (the state’s version of a severance tax) on unconventional (i.e., shale) natural gas wells that were drilled or operating in the previous calendar year. The state Independent Fiscal Office (IFO) provides updates to predict how much will be collected from the fee. The IFO released its mid-year report yesterday, which typically focuses on a forecast for the current fiscal year (FY 2026). But this update is different. It spends most of its verbiage on firming up and confirming the final numbers for 2025, which will be distributed in July of 2026. Near the end, the IFOers do break out the crystal ball and venture a guess on revenues for 2026 that will be paid out next July. 
Stephanie Catarino Wissman, executive director of the American Petroleum Institute Pennsylvania, argues in a recent op-ed that Pennsylvania’s Act 13 natural gas impact fee has successfully paired shale development with local investment since 2012. Unlike a severance tax, the fee directs revenue to counties, municipalities, and environmental programs, generating nearly $3 billion overall and more than $1 billion from 2020 to 2024. Funds have supported roads, bridges, stormwater systems, emergency services, parks, watershed restoration, abandoned mine reclamation, orphan well plugging, and tax relief. 
Although there are legitimate concerns over data centers locating in populated communities (noise, water use, etc.), make no mistake: The anti-data center movement is nothing more than the anti-fracking movement in new clothes (see 
Yesterday, the Pennsylvania Independent Fiscal Office (IFO) released its latest quarterly Natural Gas Production Report for January through March 2026 (full copy below). There were 101 new horizontal wells spudded (drilled) in 1Q26, an increase of 7 wells (+7%) compared to 1Q25. Natural gas production volume was 1,928 billion cubic feet (Bcf) in 1Q26, down less than 1/10th of a percent from 1,943 Bcf produced in 1Q25 (down 15 Bcf, -0.8%). The average Pennsylvania spot hub price was $5.22, a huge increase of $1.53 (+41%) from the prior year’s $3.69. 
Pennsylvania families face rising electricity bills despite the state’s abundant energy resources. In an excellent op-ed, Bradford County Commissioner Doug McLinko explains that local utilities like Penelec and PECO don’t control electricity costs—they only deliver power. Prices are set by PJM Interconnection’s regional market, where costs are soaring as baseload power plants retire while demand from manufacturing, data centers, and AI surges. Pennsylvania produces massive natural gas from the Marcellus Shale but lacks sufficient modern power plants to convert it into electricity. 
Pennsylvania Republican gubernatorial candidate Stacy Garrity (currently the State Treasurer) yesterday called for a “total pause” on Pennsylvania A.I. data center development, arguing communities need time to update zoning, protect neighborhoods and farmland, strengthen noise rules, and secure transparency on water, energy, health, infrastructure, taxpayer, and ratepayer impacts. While we have expressed similar sentiment that common-sense guidelines are needed for data centers regarding water, noise, and energy use, we strongly disagree with a total statewide (and indefinite) “pause” on new projects. It sends the exact WRONG signal to the tech industry — that both Republicans and Democrats in the state are now blocking data centers in the Keystone State. Pausing or blocking data centers jeopardizes $92 billion worth of private investment in the state. 
Pennsylvania Governor Josh Shapiro introduced new “Responsible Infrastructure Development (GRID) Standards” for data center developers yesterday. These standards aim to tie tax breaks to sustainability and transparency, addressing concerns about energy affordability, pollution, noise, and overall quality of life. Under Shapiro’s GRID plan, data center developers seeking tax exemptions would need to demonstrate that they meet requirements to protect energy affordability, promote transparency and community engagement, support workforce development, and safeguard the environment. Projects would also be required to incorporate so-called clean energy sources and adhere to strict efficiency and environmental protection measures. 
Sen. Jarrett Coleman (R-Bucks/Lehigh) and Rep. Jamie Walsh (R-Luzerne) have introduced legislation in Pennsylvania to address the rapid expansion of data centers. Their proposed bills aim to repeal a 2021 tax exemption that incentivizes data centers to locate in the state. The bills would also empower municipalities to implement an 18-month moratorium on data center development applications. With all due respect, these two Republicans have lost their way and are out of their minds. 
In March, the Pennsylvania Department of Environmental Protection (DEP) released the results of a two-year study that found radium levels in landfill wastewater (leachate) from landfills with drill cuttings do NOT pose a risk to human health (see 
Last November, the Pennsylvania Public Utility Commission (PUC) approved a Tentative Order by a 3-2 vote, proposing a statewide model tariff (tax) to manage the growing impact of large-load customers, such as AI data centers, on the electric grid (see 
New research by the Commonwealth Foundation finds that Pennsylvania’s foolish pursuit of joining the Regional Greenhouse Gas Initiative (RGGI), a carbon tax scheme, led to a loss of $5 to $8 billion in energy sector investment over six years, stalling power projects and reducing electricity generation capacity. The state’s attempt to join RGGI, initiated by executive order under then-Governor Tom Wolf, was ultimately overturned by the courts and (eventually) by legislative action, citing it as an unconstitutional tax. Meanwhile, neighboring Ohio, not part of RGGI, saw an increase in energy projects, highlighting the differing regulatory environments. 
Yet another rankly hypocritical move by the Democrats in the Pennsylvania legislature. Yesterday, every single Democrat in the PA House voted in lockstep (as they typically do, under the leadership’s complete control) to pass House Bill (HB) 2076, titled “Advancing Geothermal Energy Development.” The Dems were assisted by 16 Republicans who were (charitably) hoodwinked. No matter. The bill won’t pass in the Senate. But why point out this vote? Because the “advanced” geothermal energy that the House wants to promote and regulate uses the very same drilling rigs and fracking as is used to drill in the Marcellus shale, revealing the hypocritical lies of the Democrat left in demonizing fracking. But there’s another reason we’re highlighting this news: The environmental left (including House Democrats) is seeking to increase drilling setbacks in the state from 500 feet to 3,281 feet (and, in some cases, 5,280 feet). Do the House Dems realize the new setbacks would not only ban ALL shale fracking in the state but also all geothermal fracking?