Secretary Hanger- DEP Cut To Bone After Years Of Budget Reductions

Department of Environmental Protection Secretary John Hanger told the House Appropriations Committee today his agency's budget has had a series of budget cuts over the past few years and "now we are down to the bone or close to the bone" in terms of having the resources needed to accomplish its mission to protect the environment.
In 2007, then-DEP Secretary Kathleen McGinty used almost those same words to describe the Gov. Rendell's budget request for that year. (3/9/2007 PA Environment Digest)
In formal testimony before the Committee, Secretary Hanger highlighted hiring the Governor's directive to hire 68 new staff to beef up the agency's permit reviewers and inspection staff to deal with the influx of Marcellus Shale natural gas permits. He also said the agency was moving to update the agency's rules to put in place tougher Total Dissolved Solids and well casing requirements to protect water quality from new drilling technologies.
His testimony also repeated the Governor's call to increase the requirement for electric utilities to buy renewable energy under the state's Alternative Energy Portfolio Standards and implementing the recommendations of the Climate Change Action Plan. He also outlined DEP's progress in spending its share of the federal stimulus funds and called for the extension of the $2/ton Recycling Fee to support local recycling programs. (2/12/10 PA Environment Digest)
In response to questions, Secretary Hanger touched on these issues--
Increasing Penalties for Drilling Violations: Rep. David Millard (R-Columbia) asked, on behalf of sportsmen in his area, whether DEP has considered increasing the penalties for water quality violations by drilling operations.
Secretary Hanger said he is not considering increasing penalties at this time because other tools like halting work on drill sites and revoking permits can be much more effective than simply imposing higher fines. "We will not allow violations to be a cheaper way to operate. We will not hesitate to make criminal referrals to District Attorneys, the Attorney General or to the (federal) Department of Justice for violations we see."
Taking Conservation District Out of Drilling Enforcement: Rep. Gordon Denlinger (R-Lancaster) asked the Secretary to explain why conservation districts were removed from the erosion and sedimentation permitting and enforcement process related to gas drilling operations.
Secretary Hanger said it seemed to make sense to have one agency rather than two handling permitting for Marcellus Shale drilling operations, especially when funding for districts is going down and funding for DEP's drilling permitting and enforcement operations is increasing courtesy of recent permit fee increases.
Future Drilling Enforcement Funding: Rep. William Adolph (R-Delaware), Minority Chair of the House Appropriations Committee, asked if recent fee increases for drilling permits is adequate now and will it be adequate in the future to oversee Marcellus Shale production.
Secretary Hanger said the recent permit fee increases gave the agency more resources to handle the permitting and enforcement of Marcellus Shale drilling. Perhaps 10 to 20 years into the future, when the number of new permits decreases, the department may have to consider some sort of annual permit fee to support drilling oversight activities, but not now.
Monongahela River Total Dissolved Solids Pollution: Rep. William Kortz (D-Allegheny) asked for a status report on the TDS pollution in the Monongahela River, especially since water coming into Pennsylvania from West Virginia already violates TDS standards.
Secretary Hanger said water in the Monongahela had TDS in violations in 2008 and 2009 and agreed water coming into the state violated TDS standards at times.
He noted a number of steps were being taken to deal with the problem, including changes proposed to TDS regulations on sources in Pennsylvania, stopping wastewater treatment plants in certain communities from accepting drilling wastewater for treatment and intervening in water quality permits being considered in West Virginia to reduce TDS discharges.
Conservation District Funding Cuts: Rep. Mario Scavello (R-Monroe) expressed concern about the cuts to funding for county conservation districts saying the state is only pushing costs down on local government.
Secretary Hanger said this was one of the many tough decisions that had to be made in this budget and if the funding is restored it would have to come from some where. He agreed, however, with the sentiment in the Representative's statement.
Chesapeake Bay Cleanup: Rep. Gorden Denlinger (R-Lancaster) asked for an update on the steps Pennsylvania was taking to comply with nutrient reduction requirements to clean up the Chesapeake Bay.
Secretary Hanger said, briefly, Pennsylvania must show progress in meeting the cleanup standards because if we do not, the Commonwealth runs the risk of having a federal court taking jurisdiction and imposing requirements it seems are appropriate. He noted Pennsylvania now has to report our progress every two years.
He also said he sees promising new technologies, like manure digestors and using manure as a fuel, to help deal with the nutrient reduction requirements.
Mine Reclamation Funding: In response to a question by Rep. William Kortz (D-Allegheny), Secretary Hanger said DEP expects to receive $55 million in mine reclamation funds from the federal Office of Suface Mining. He did not mention funding for projects from the Growing Greener Watershed Restoration Program was largely ending this year.
Withdrawal From Delaware River Basin Commission: Rep. Scott Petri (R-Bucks) suggested Pennsylvania should consider withdrawing from the Delaware River Basin Commission because New York City is blocking attempts by the Commonwealth to deal with flooding and fishkill issues in the Basin.
Secretary Hanger said he has been engaging New York City in discussions on these important issues and that progress was being made
Septic Tank Maintenance Ordinances: Rep. John Siptroth (D-Monore) asked why DEP was putting pressure on local governments in Monroe, Wayne and Pike counties to adopt local septic tank maintenance ordinances and delaying the processing of sewage modules for new development. He also expressed concern about reductions in local sewage enforcement grants.
Secretary Hanger said a recent court decision required DEP to change the way it administers this program, but agreed the options communities have to comply with these requirements were not clearly articulated by agency staff. He said meetings are being arranged in the northeast counties to make those options clearer.
Secretary Hanger said funding local sewage enforcement was one of those tough budget decisions that had to be made and if it is to be restored it would have to come from some other part of the budget.
Sewage Permits Expiring: Rep. Doug Reichley (R-Berks) said bankrupt subdivisions being sold by banks are running into an issue where water quality permits are expiring for these incomplete developments and the new owners are being required to get a new permit with new requirements being imposed. He said this kind of inflexibility is blocking the orderly resale of these developments.
Secretary Hanger said he was just made aware of this issue by a letter from Rep. Reichley and was looking into it in detail.
Recycling Fee Extension: Rep. John Siptroth (D-Monroe) asked the status of recycling programs given the $2/ton Recycling Fee will be expiring soon. He also asked about the agency's position on legislation to authorize a county solid waste management fee of up to $4/ton.
Secretary Hanger said he is now in the process of shutting down the recycling grants program because the General Assembly has not taken action to extend the recycling fee. He did not comment on the county solid waste management fee.
Alternative Energy: Rep. Greg Vitali (D-Delaware) asked for some general background on the costs and benefits of increasing the renewable energy requirements in the Alternative Energy Portfolio Standards. Rep. Cherelle Parker (D-Philadelphia) also asked about the benefits of alternative energy to urban areas.
Secretary Hanger pointed to the recent Black & Veatch study which documented the economic and other benefits of increasing the standard as recommended by Gov. Rendell. He said jobs have been created all over the state as a result of alternative energy investments and pointed to the recent announcement by Hellosphera US to create 400 jobs at the former Philadelphia Navy Yard.
A copy of Secretary Hanger's written testimony is available online.
The Senate Appropriations Committee on DEP's budget will be held on March 1 at 1:00.

Note: Senate and House budget hearings can be seen live online on the PCN TV website Channels 1 and 2. Senate Hearings can be seen live and archived on the Senate Appropriations Committee webpage.