John Hanger

While 2008 was a productive year in terms of environmental legislation, there were major issues not addressed before the General Assembly left town. They include:

Budget Shortfalls: A Senate Appropriations Committee hearing last week revealed Pennsylvania may have up to a $3 billion budget deficit next year, although the Rendell Administration has not made that prediction. Agencies, including DEP and DCNR, are now subject to a hiring freeze and an across-the-board budget cut of 4.25 percent this current year, by action of the Governor.

Budget Secretary Mary Soderberg said at the Committee hearing if any agency wants an increase in their budget it will have to be offset by cuts elsewhere.

Two weeks ago Acting Department of Environmental Protection Secretary John Hanger told the House Environmental Resources and Energy Committee that his agency needed 68 more people just to handle the workload from increased natural gas drilling.

Other critical environmental programs are also facing a major funding issue next fiscal year as monies from the Growing Greener II bond issue run out and funds to pay the debt service on the Growing Greener II bonds take an increasing bite out of the Environmental Stewardship Fund which had funded the original Growing Greener watershed and mine reclamation programs.

At the same time, Pennsylvania is also facing significant watershed cleanup mandates to reduce nutrients from farms and wastewater plants, not only in the Chesapeake Bay Watershed, but as Total Maximum Daily Load Plans are finished across the state and implemented. (See the PA Fair Share for Clean Water Plan)

In addition to the $750 million Rainy Day Fund that helps cushion budgetary shortfall, there are over $700 million in unused monies now in the MCare medical malpractice insurance fund, since the program has not yet been reauthorized. Some legislators may feel that since doctors across the state have been paying their own insurance bills this entire year, those funds might be better used to balance the budget next year.

The Department of Environmental Protection's budget over the last six years has yet to reach the appropriations levels it received in 2002-03.

Farm Conservation Funding: While the General Assembly approved $1.2 billion in new water infrastructure funding, there was no increase in funding to help farmers install conservation practices to meet state and federal clean water mandates or to match newly approved federal monies that are part of the 2008 Farm Bill. (See article)

The PA Fair Share For Clean Water Coalition supports these specific funding proposals:

-- $50 million in direct cost share aid to farmers to install conservation practices ($35 million for REAP farm tax credits and $15 million in cost share grants);

-- $10 million to county conservation district to expand technical assistance to farmers; and

-- $10 million to restore cuts to the Department of Agriculture budget in farm programs.

Nutrient Credit Trading: Bipartisan legislation to create a workable nutrient credit trading program-- Senate Bill 1493 (Vance-R-Cumberland), House Bill 2654 (Hanna-D-Centre), House Bill 2717(DePasquale-D-York) and House Bill 2441 (Perry-R-Cumberland)-- that will help reduce the costs of wastewater plants meeting state and federal clean water mandates and provide new resources to farmers to finance conservation practices, saw hearings in the Senate and House, but no floor action. This proposal is part of the PA Fair Share for Clean Water Plan. (See article)

Electric Rate Cap Mitigation: There was no agreement on how to provide a smoother transition for electric customers when electric rate caps expire in 2010 and neither the full House nor Senate voted on any proposals. The key legislation included: House Bill 1201 (George-D-Clearfield), Majority Chair of the House Environmental Resources and Energy Committee, and Senate Bill 1134 (Tomlinson-R-Bucks) a plan by Sen. Tomlinson, Majority Chair of the Senate Consumer Protection Committee. Both bills saw action in committee, but later stalled.

Special Session House Bill 54 (George-D-Clearfield) extending rate caps for two more years was the subject of several hearings by the House Environmental Committee and was voted out of Committee, but saw no further action.

Other Energy Bills: Other energy-related legislation like setting green building standards, providing tax credits for installing energy efficient appliances were also left hanging. They included: Special Session House Bill 5 (M.Smith-D-Montgomery) establishing High-Performance Green Building Tax Credit Program, House Bill 894 (Leach-D-Montgomery) increasing state reimbursements for school buildings built using green technology, Special Session House Bill 8 (Leach-D-Montgomery) providing an exclusion from Sales Tax for fluorescent bulbs, Special Session House Bill 11 (Parker-D-Philadelphia) providing an exclusion from Sales Tax for Energy Star appliances and House Bill 690 (Cohen-D-Philadelphia) creating a plug-in hybrid vehicle task force were all passed the House and are now in the Senate and House Bill 656 (Bastian-R-Somerset) allowing preserved farms to lease property for the development of wind farms is still in the House. Special Session Senate Bill 25 (Waugh-R-York) that would add a liquid paper making waste and make other changes to the Alternative Energy Portfolio Standards was passed by the Senate and set to the House for a concurrence vote.

County Waste Management Fee: House Bill 934 (Scavello-R-Monroe) authorizing a county solid waste management fee was reported from the House Environmental Resources and Energy, referred to the House Appropriations Committee, then Tabled.

Public Review of Clean Air Plans: Senate Bill 355 (MJ.White-R-Venango) requiring further public review of State Clean Air Implementation Plans was passed by the Senate, but died in the House Environmental Resources and Energy Committee.

EQB Legal Advice: Senate Bill 105 (Musto-D-Luzerne) requiring independent legal advice for the Environmental Quality Board was passed by the Senate, but died in the House Environmental Resources and Energy Committee.

Justifying Regulations: Senate Bill 752 (Erickson-R-Delaware) requiring a detailed justification prior to the adoption of regulations through the Regulatory Review Act process was passed by the Senate, but died in the House State Government Committee.

Keystone Fund Reporting: Senate Bill 1069 (MJ.White-R-Venango) requiring a detailed annual report by DCNR on expenditures from the Keystone Recreation, Park and Conservation Fund was passed by the Senate, but died in the House Tourism and Recreational Development Committee.

Watershed Planning: House Bill 2266 (Steil-R-Bucks) updating and expanding stormwater, watershed planning requirements, was reported from the House Local Government Committee and then referred to House Appropriations Committee.

Historic Preservation Grants: House Bill 221 (Tangretti-R-Westmoreland) establishing a Historic Preservation Grant Program passed the House, was reported from the Senate Community, Economic and Recreation Development Committee, then Tabled in the Senate.

10/17/2008