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Pennsylvania State Senate
12/11/2024 08:58 PM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?SPick=20250&chamber=S&cosponId=43389
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Senate of Pennsylvania
Session of 2025 - 2026 Regular Session

MEMORANDUM

Posted: December 2, 2024 09:25 AM
From: Senator Camera Bartolotta and Sen. Gene Yaw
To: All Senate members
Subject: Impact Fee Withheld from Municipality in Certain Cases
 
In the near future, we plan to reintroduce legislation that would prohibit the distribution of Impact Fees generated from natural gas development to any municipality that unreasonably limits or prohibits future development of natural gas within the municipality.  It was SB 1346 from last Session.
 
The Impact Fee was carefully constructed to compensate municipalities that hosted or were in proximity to natural gas development for any impacts that may be experienced. Impact Fee dollars were never intended to go to municipalities that took unreasonable actions to prevent ongoing natural gas development within the municipality.
 
While municipalities may have some flexibility in how they zone or regulate oil and gas operations – provided they do not exceed limitations in state or federal law – doing so in an unreasonable manner which prevents future natural gas development should render the municipality ineligible for state collected and distributed impact fees. This legislation prohibits such disbursement of Impact Fee funds by the PA PUC and further requires the PA PUC to hold any funds during the pendency of any litigation challenging the validity of a local zoning ordinance.