Pennsylvania Invests Natural Gas Revenue as New York Misses Out

Pennsylvania is using revenue generated by its natural gas industry to finance a wide range of environmental and community improvement projects through the Marcellus Legacy Fund, providing benefits that extend well beyond the areas where drilling takes place.

Last year, $133.8 million in impact fee revenue was distributed directly to communities hosting unconventional natural gas wells. Another $89.2 million was deposited into the Marcellus Legacy Fund, which supports environmental initiatives, parks, greenways, trails, water quality programs, flood mitigation and infrastructure improvements across the commonwealth.

Created in 2012, the Marcellus Legacy Fund receives a portion of the impact fees paid by natural gas producers and distributes the money to counties, municipalities and state agencies for projects that enhance communities and protect natural resources.

The fund supports the planning, development, rehabilitation and expansion of public parks, recreational trails, greenways, open space and community beautification projects. It also finances watershed restoration efforts, and water resource management initiatives.

Flood mitigation projects are another major focus, with grants available for improvements identified by local governments, the Pennsylvania Department of Environmental Protection, the U.S. Army Corps of Engineers and other agencies. Water and sewer infrastructure projects are also eligible for funding, helping communities improve essential public services.

A portion of the funding is dedicated to repairing deteriorating locally owned bridges, while grants are also available to plug orphaned oil and gas wells and address other environmental priorities.

At the local level, counties have flexibility in how some of the money is invested. In Susquehanna County, for example, officials operate a Marcellus Legacy Fund Mini-Grant Program that provides nonprofit organizations with funding for conservation projects, recreation facilities, heritage parks, beautification efforts and water resource management.

Supporters say the Legacy Fund demonstrates how revenue generated by natural gas development can be reinvested into projects that improve quality of life, strengthen infrastructure and preserve natural resources. While New York prohibits hydraulic fracturing, Pennsylvania continues to use a portion of the industry’s revenues to finance community and environmental initiatives that benefit residents across the state.