Sen. John Rafferty (R-Montgomery) and Sen. Andrew Dinniman (D-Chester) have introduced Senate Bill 557 which would impose a transmission or gathering pipeline impact fee based on the acreage of an oil or natural gas pipeline right of way to be collected by the Public Utility Commission and distributed to the affected counties (sponsor summary).

“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,” said Sen. Rafferty.  

“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,” explained Sen. Rafferty. “Increased traffic congestion, noise, environmental impacts, and  associated safety risks are experienced by those who live, work or commute in proximity to these projects.”

The 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 PUC and deposited into a Pipeline Impact Fund where they will be disbursed to affected areas. 

Fifty percent of the money in the fund will be used to make an annual payment to each county where an affected area is located. The remaining 40 percent will be paid to the municipality in an affected area.  Ten percent of the money will be used to administer the fund.

Sen. Rafferty also introduced a companion bill-- Senate Bill 561-- which would consolidate pipeline safety inspection responsibilities within PennDOT, rather than the PUC (sponsor summary).

3/9/2015