House Hearing On DEP Budget

Acting DEP Secretary John Hanger appeared before the House Appropriations Committee to answer questions about Gov. Rendell's proposed 2009-10 for the agency. (Acting Secretary Hanger's written testimony.)
DEP is set to receive about $340 million in federal economic stimulus funding: $130 million for energy conservation, efficiency and alternative energy projects, $219 million for drinking water/wastewater system funding (administered by PennVEST), $6 million for cleaning up abandoned underground storage tanks and $1.8 million for conversion to cleaner diesel engines.
DEP has already prepared a list of some 500 energy and water infrastructure for funding, in particular those applications it already has that were worthy but not funded before.
DEP has advised legislators of the urgent need to reauthorize the $2/ton recycling fee to support the program which is being hurt by a reduction of waste imports and a $15 million diversion of recycling funds to balance this year's budget.
DEP is drafting a Green Building Code as promised by Gov. Rendell in his budget address based on LEED and other green building standards.
DEP said there is much more work to be done in reducing nutrients flowing to the Chesapeake Bay, highlighting significant progress already made by agriculture and wastewater plants. DEP also said there is a need to do more to make sure the nutrient credit trading program is a success.
DEP praised the work of conservation districts, at the same time noting a $500,000 cut in district funding in their budget ($1 million overall) was the result of eliminating "legislative adds" to the budget over the last few years.
DEP said there is a need to take the next steps in expanding the Alternative Energy Portfolio Standards and creating a carbon sequestration network to help deal with climate change issues as proposed in legislation by Rep. Vitali (D-Delaware) and Sen. Erickson (R-Delaware).
With respect to the expiration of electric rate caps in 2010, DEP said the Governor supports phasing in rate increases which are expected to be on average 25 percent.
DEP said there are now about 1.2 million scrap tires to be cleaned up across the state. As a result of efforts over the last 10 years 29 million tires have been cleaned up.
DEP has permission to hire 37 more people to speed processing of permits for Marcellus Shale natural gas wells and a new office in Williamsport. Process times have been reduced to an average of 28 days.
DEP said there is a limited need to make changes in law to deal with issues raised by Marcellus Shale drilling, but one of which is to give DEP authority in the Ohio River Basin to approve water withdrawals related to drilling.
In response to questions about significant permit backlogs in the agency, DEP said they have directed staff to take steps over the next two years to eliminate the backlog. They were also proposing changes to erosion and sedimentation and stormwater management permits that should speed processing, although the proposals so far are opposed by environmental groups as a rollback of federal Clean Water Act requirements.
The Senate hearing on DEP's budget is Wednesday.