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Senate of Pennsylvania
Session of 2019 - 2020 Regular Session


Posted: December 11, 2018 09:38 AM
From: Senator Thomas H. Killion and Sen. Andrew E. Dinniman
To: All Senate members
Subject: Pipeline Impact Fee
In the near future, we will be introducing legislation that would establish a pipeline impact fee in the Commonwealth.

Throughout Pennsylvania, residents have been affected by the construction of natural gas lines. With the surge in natural gas drilling, many residents of Pennsylvania are experiencing the effects of the growth in this industry. Although the construction of this energy infrastructure is often done very efficiently, many communities experience a period of reduced quality of life and long term impacts to the environment as a result of the construction process. Increased traffic congestion, noise, environmental impacts, and associated safety risks are experienced by those who live, work or commute in proximity to these projects.

Our legislation would create an impact fee that is calculated based on the acreage of linear feet plus right-of way width of a pipeline using the county average land value in an affected area. The fees generated would be collected by the Public Utility Commission (PUC) and deposited into a Pipeline Impact Fund where they will be disbursed to affected areas. Approximately 10 percent of the money would be used to administer the fund; 50 percent of the money in the fund would be used to make an annual payment to each county where an affected area is located; and the remaining 40 percent would be paid to the municipality in an affected area. This legislation only applies to pipelines constructed after the effective date of this act.

This legislation will be similar to SB 605 of the 2017-2018 Legislative Session which was introduced by Senator Rafferty and Senator Dinniman and was co-sponsored by the following Senators: Costa, Yudichak, Schwank, Leach and Killion.

Please join us in co-sponsoring this important legislation.

Introduced as SB282