PA Environment Digest

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90% Of PA Voters Want Senate, House To Provide More Funding For Critical Environmental, Conservation Programs; That Didn’t Happen In 2020

During 2020, millions of Pennsylvanians sought refuge from the COVID-19 pandemic in state and local parks, trails and outdoor recreation. Read more here.

A poll released in September, well after the pandemic began, found 90 percent of voters want the Senate and House to provide more funding for critical environmental, recreation and conservation programs-- and they are willing to pay for it. Read more here.

What did the General Assembly and the Governor do?

Cut $153 million in dedicated environment and energy funding to help balance the state budget, diverting money from local clean water project funding, help so farmers can preserve their farmland, cleanup of polluted industrial sites, regulation of surface coal mining, supporting clean energy projects, environmental education and for cleaning up leaking underground storage tanks. Read more here.

$48.9 million in monies from shale gas drilling in the dedicated Oil and Gas Lease Fund was unconstitutionally diverted to pay for DCNR operating costs, again. Read more here.

They also continued the $50 million annual cut in Act 339 funding to support local wastewater plant operations and diverted $15 million from the Marcellus Shale Legacy Fund to the Hazardous Sites Cleanup Fund to keep that program limping along in the face of increasing PFAS/PFOS chemical contamination of drinking water. Read more here.

The bright spots in the budget were few, but included no diversions out of the Keystone Recreation, Park and Conservation Fund or the Environmental Steward (Growing Greener) Fund in this budget and the budget supports conservation districts and regional water agencies like the Delaware and Susquehanna River Basin Commissions from the General Fund rather than taking it from the Environmental Stewardship Fund.

However, the $20 million transfer from the Oil and Gas Lease Fund to the Marcellus Shale Legacy Fund to the Environmental Stewardship Fund was not made in FY 2020-21. Read more here.

House Republicans tried and failed to get separate provisions in the final budget to freeze local project funding in the Keystone and Environmental Stewardship, other environmental funds and for county conservation districts. Read more here.

House Republicans also moved, but did not pass, legislation allowing them to annually reallocate dedicated funding from the Keystone Fund to other purposes. Read more here.

DEP Budget

The FY 2020-21 State General Fund appropriation of $156.337 million to support personnel and operating costs is still below 1994-95 appropriation levels-- $165.6 million.

This means DEP has no option but to continue to rely on permit fees assessed on industry, farmers, local governments and everyone else the agency regulates for operating money.

In 2020, DEP finalized or proposed major permit fee packages totaling $26 million--

-- $15 million in Oil & Gas Management Program fees, Read more here;

-- $13 million in Air Quality Program fees, that House Republicans tried to block, Read more here;

-- Up to $6 million in Water Quality Chapter 91/92a Permit Fees, Read more here.

It is unlikely these fee packages will result in the amount of estimated revenue because of the slow down in the shale gas drilling industry and the economy generally due to the COVID-19 pandemic.

It takes three years or more to develop and adopt changes in fees by regulation, which means DEP is constantly in a hole. Read more here.

Next Year?

What does all this mean for next year’s budget? It will be another challenge.

Attempts will again be made to cut and divert funding from environment and energy funds dedicated by law and voter referendums to support community-driven, local environmental cleanup, recreation and water infrastructure projects.

These one-time gimacks don’t provide real solutions to the state’s budget problems, but can easily become permanent diversions away from supporting community-based projects.

We will see more proposed permit fee increases from DEP because they have no choice. No doubt, the House and Senate will attempt to block some or all of them.

If no additional state and local economic stimulus aid is provided by Congress related to the COVID pandemic, the stress on Pennsylvania’s state and local budgets will be even greater and mean even more cuts in environmental, recreation and conservation agency operating funds.

3 Front War

The cuts to local environmental project and environmental program funding are part of a three front war conservative Pennsylvania Republicans have been fighting against environmental programs for the last decade--

-- Starving environmental agencies for funding so they have to cut staff and programs and then turn around and say they can’t do their job;

-- Adding even more layers of bureaucracy and procedures to block environmental regulations, reduce environmental standards and give regulated entities more control over these programs [Read more here]; and

-- Using every chance they get to cut funding to support community-based projects to protect and restore the environment, improve recreation opportunities and land conservation efforts that real people-- voters-- overwhelmingly support.

And the fact the Republican leadership in both the Senate and House has gotten more conservative and much less moderate over the last few years means all these bad ideas and more will be back in 2021.

Itemized List Of $3.468 Billion In Cuts/Diversions

Here's an itemized list of $3.468 billion (or so) in cuts and diversions of environmental funding over the last 13 years; $266.9 million in FY 2020-21 state budget--

-- $945 million in Act 339 grants intended to support wastewater plant operations over the last 16 years were eliminated to balance the budget ($52 million or so each year);

-- $143 million diverted from the DCNR Oil and Gas Fund to balance the FY 2008-09 budget;

-- $79 million cut from the DEP and DCNR General Fund budget during FY 2009-10;

-- $60 million diverted from the DCNR Oil and Gas Fund to balance the FY 2009-10 budget;

-- $100 million in 2002 from the Underground Storage Tank cleanup insurance fund to balance the budget (although this was supposed to be repaid over 10 years);

-- $52.7 million “one-time” diversion from the Keystone Recreation, Parks and Conservation Fund in 2006 to balance the budget;

-- $50 million in 2007 and 2008 from the Environmental Stewardship Fund, which supports mine reclamation and watershed restoration, to fund the Hazardous Sites Cleanup Program because there was no agreement on how to fund that program;

-- $185.7 million in FY 2007-08, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16, 2016-17, 2017-18, 2018-19 (thru 2035) from the Environmental Stewardship Fund to pay debt service on the Growing Greener II bond issue and taking funding away from restoration projects each year for the next 25 years – reflecting a pattern of only environmental programs being required to address their own bond debt service;

-- $15 million “one-time” transfer from the Recycling Fund to the General Fund to balance the FY 2008-09 budget;

-- $18.4 million put into budgetary reserve in 2008-09 from the Department of Environmental Protection and Department of Conservation and Natural Resources;

-- $5 million reduction in Resource Enhancement and Protection (REAP) farm conservation tax credit program in FY 2009-10;

-- $102.8 million cut from the DEP and DCNR General Fund budget in FY 2010-11 budget;

-- $180 million diverted from the DCNR Oil and Gas Fund to General Fund in proposed FY 2010-11 budget;

-- $5.5 million reduction in Resource Enhancement and Protection (REAP) farm conservation tax credits in FY 2010-11;

-- $5 million in additional cuts to the agencies to balance the FY 2010-11 budget;

-- $3.9 million in across-the-board cuts to help fill gaps caused by reduced federal Medicaid appropriations-- $2.4 million from DEP, $1.5 million from DCNR;

-- $669,000 from the Safe Water line item in DEP's budget;

-- $102.8 million cut continued from the FY 2010-11 DEP and DCNR General Fund budget in FY 2011-12 budget;

-- $8.3 million mid-year budget freeze cuts additional resources for environmental programs: Agriculture: $2.6 million; DCNR: $1.5 million; and DEP: $4.2 million;

-- FY 2012-13 budget eliminates $11.8 million in General Fund monies from DEP, and $2.5 million from DCNR;

-- FY 2012-13 budget continues the $102.8 million cut in FY 2010-11;

-- FY 2012-13 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000);

-- FY 2013-14 budget continues the $102.8 million cut in FY 2010-11;

-- FY 2013-14 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000);

-- FY 2013-14 budget diverts $106.5 million from the Oil and Gas Fund to support DCNR operations;

-- FY 2014-15 budget diverts $73 million from the Oil and Gas Fund to support DCNR operations.

-- FY 2014-15 budget diverts another $95 million in royalties and payments from the Oil and Gas Fund to balance the state budget;

-- FY 2014-15 budget diverts $20 million from State Forest Timber operations to balance the state budget;

-- FY 2014-15 budget diverts $6.2 million from the Alternative Fuels Incentive Grant Fund to balance the state budget;

-- FY 2014-15 budget continues the $102.8 million cut beginning in FY 2010-11;

-- FY 2014-15 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000);

-- FY 2014-15 budget cuts $500,000 for Delaware River Basin Commission;

-- FY 2015-16 transfer of $31.9 million to pay for DCNR operations from Oil and Gas Lease Fund;

-- FY 2015-16 budget cuts $15 million coming from Environmental Stewardship Fund for watershed restoration projects;

-- FY 2015-16 budget cuts $900,000 for Sewage Facilities Grants;

-- FY 2015-16 budget continues the $102.8 million cut in FY 2010-11;

-- FY 2015-16 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000);

-- FY 2016-17 budget cuts $35 million coming from Environmental Stewardship Fund for watershed restoration projects;

-- FY 2016-17 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000);

-- FY 2017-18 budget transfers $9 million from Recycling Fund to General Fund

-- FY 2017-18 budget transfers $5 million from Alternative Fuels Incentive Fund to General Fund

-- FY 2017-18 budget cuts transfer from Marcellus Legacy Fund to Hazardous Sites Cleanup Fund by $5 million;

-- FY 2017-18 budget transfers $12 million from CBF High Performance Green Buildings Program to new CFA Natural Gas Infrastructure Program;

-- FY 2017-18 Governor puts $1.125 million from DCNR in budgetary reserve;

-- FY 2017-18 transfers $30.4 million from Attorney General settlement from Volkswagen to General Fund;

-- FY 2017-18 transfers $20 million from DCNR Oil and Gas Lease Fund to Marcellus Shale Legacy Fund for distribution to the Environmental Stewardship Fund;

--FY 2017-18 transfers $15 million from Marcellus Shale Legacy Fund to Hazardous Sites Cleanup fund;

-- FY 2017-18 appropriations for Susquehanna and Delaware River Basin Commissions and Interstate Commission on the Potomac River cut by half - $477,000;

-- FY 2017-18 $10 million transfer from the Keystone Recreation, Parks and Conservation Fund to the General Fund as part of a larger $300 million set of transfers to help balance the state budget;

-- FY 2017-18 budget for the State System of Higher Education zeroes out funding again for the PA Center for Environmental Education ($368,000) and McKeever Environmental Center ($213,000);

-- FY 2017-18 transfer of $61.2 million to pay for DCNR operations from Oil and Gas Lease Fund;

-- FY 2018-19 appropriations for Susquehanna and Delaware River Basin Commissions and Interstate Commission on the Potomac River cut by half - $477,000; and

-- FY 2018-19 transfer of $48.7 million to pay for DCNR operations from Oil and Gas Lease Fund.

-- FY 2019-20 $69.774 million transferred from the Oil and Gas Lease Fund to pay operating expenses for DCNR.

-- FY 2019-20 $16.045 million diverted from the Environmental Stewards (Growing Greener) Fund to pay for DEP administrative costs.

-- FY 2019-20 $10 million diverted from the Recycling Fund to pay for DEP administrative costs.

-- FY 2019-20 $20 million payment from Marcellus Shale Legacy Fund not made to Environmental Stewardship (Growing Greener) Fund.

-- FY 2019-20 transferred several programs formerly funded by the General Fund are now being paid for by the Environmental Stewardship (Growing Greener) Fund: $2.5 million to support county conservation districts; $873,000 in costs for the Delaware and Susquehanna River Basin Commission, Interstate Commission on the Potomac River, Interstate Chesapeake Bay Commission, Ohio River Valley Water Sanitation Commission, Delaware River Master; $2.25 million for DCNR’s Heritage Parks Program.

-- FY 2020-21 transferred $153 million from dedicated environment and energy funds to balance the state budget: PennVEST Fund - $10,000,000; PennVEST Drinking Water Revolving Fund - $26,000,000; PennVEST Water Pollution Control Revolving Fund - $9,000,000; Recycling Fund - $50,000,000; Underground Storage Tank Indemnification Fund - $30,000,000; Industrial Sites Cleanup Fund - $10,000,000; Industrial Sites Environmental Assessment Fund - $7,500,000; Agricultural Conservation Purchase Easement Fund - $5,000,000; Surface Mining Conservation & Reclamation Fund $4,000,000; Energy Development Fund - $1,000,000; Environmental Education Fund - $500,000; Highway Beautification Fund - $150,000. Read more here.

-- FY 2020-21 $48.8 million transferred from the Oil and Gas Lease Fund to pay for DCNR operations Read more here;

-- FY 2020-21 $15 million transfer from the Marcellus Legacy Fund to Hazardous Sites Cleanup Fund to continue the program with minimal funding Read more here.

-- FY 2020-21 $20 million transfer from the Oil and Gas Lease Fund to the Marcellus Shale Legacy Fund to the Environmental Stewardship Fund was not made in FY 2020-21. Read more here.

2020 In Review:

-- Environment & Energy Bills Signed Into Law, Vetoed In 2020

-- This NICE List Of Good Environment & Energy Bills We Hope Will Be Back Next Year

-- This NAUGHTY List Of Bad Environment & Energy Bills Will Be Back Again Next Year

Related Articles - 2020 Budget:

-- $201,977,000 Diverted From Environment, Energy Funds To Balance FY 2020-21 State Budget

-- New Poll Shows 90% Of PA Voters Want Senate, House Members To Address Environmental, Conservation Priorities, Provide More Funding For Critical Programs

-- PA Farm Bureau, 45 Other Hunting, Angler, Business, Environmental, Watershed Groups Urge Senate, House To Pass On-Farm Conservation Funding Bill This Year

-- PA Conservation Districts Ask Lawmakers To Keep Same Funding For Their Vital Services As They Finalize FY 2020-21 State Budget

-- State Parks Continue To Break Visitor Records In September: 4.7 Million Visitors, Up 31 percent Over Last Year

-- State, Regional, Local Outdoor Recreation ‘Through The Roof’ Across Pennsylvania

-- Op-Ed: Now Is The Time To Invest In Parks, Not Cut Them