Sunday, July 11, 2021

Budget-Related Bills Cut Environmental Stewardship Funding For Local Projects $20 Million; Give Oil & Gas Industry Free Pass On Permits For Storing, Processing Liquid Drilling Wastes

Provisions added at the last minute to the Fiscal Code and Administrative Code bills accompanying the FY 2021-22 budget have a big impact on environmental restoration and protection programs again this year.

Local Restoration Funding Cut

A provision in the FY 2021-22 budget-related Fiscal Code bill again cuts funding to support community-based environmental restoration projects from the Environmental Stewardship Fund by $20 million.

Another provision authorizes payment of $12,289,000 of Personal Income Tax revenue to the Environmental Stewardship Fund to pay Growing Greener II debt service.

New Drilling Waste General Permit

A provision in the Administrative Code bill gives a free pass to the oil and gas industry for transferring, storing and processing liquid drilling wastewater through a new General Permit that eliminates basic environmental protections contained in 25 PA Code Section 287.641(D) for temporary facilities in operation for no more than 180 days at one time.

The provision specifically prohibits DEP from requiring any individuals or municipalities using the General Permit from obtaining an individual determination of applicability if they are  involved in land application or using the material for antiskid uses and other protections under 25 PA Code Section 287.641(D).

A controversy erupted in February over the use of the existing General Permit WMGR123 covering dozens of drilling wastewater storage and resume permits that eliminated public review of their individual uses.  Read more here.

In a settlement, DEP agreed to subject the individual uses of the General Permit to public review.

There are also questions about how this new provision may be applied to or encourage the road dumping of drilling wastewater. Read more here.

House Republicans passed legislation in May to legalize the practice of road dumping wastewater from conventional oil and gas drilling operations. Read more here.

Summary Of Provisions

Here’s a brief summary of the special provisions related to the environment in each of the budget-related bills--

-- Fiscal Code: House Bill 1348 (Saylor-R-Lancaster) amendments to Fiscal Code related to FY 2021-22 budget (House Fiscal Note & Summary, Senate Fiscal Note & Summary).  Special provisions--

     -- No Transfer To Environmental Stewardship Fund.  No transfer of $20 million-- again-- from the Oil & Gas Lease Fund to the Marcellus Legacy Fund to the Environmental Stewardship Fund for local project funding. (page 51).

     -- Transfer to Hazardous Sites Cleanup Fund: directs the transfer of $15 million from the Oil & Gas Lease Fund to the Marcellus Legacy Fund to the Hazardous Sites Cleanup Fund.  (page 51)

    -- Payment Of Growing Greener II Bond Debt: Authorizes payment of $12,289,000 of Personal Income Tax revenue to the Environmental Stewardship Fund to pay Growing Greener II debt service.  (page 106)

     -- Funds Returned To PennVEST: $45 million was returned to PennVEST for drinking water and wastewater funding that was used in 2020 to help respond to the COVID pandemic.  Read more here. (page 113)

     -- Reducing Arrearages of Low-Income Customers: Using $36,763,000 in American Rescue Plan funding to provide funds to owners or operators of public water systems or treatment works to reduce arrearages of and rates charged to low-income households in program administered by the Department of Human Services in consultation with DEP and PennVEST. (page 42)

     -- Low Speed Scooter Pilot Program:  Establishing a low-speed  scooter pilot program. (page 55)

-- Administrative Code: House Bill 336 (R.Mackenzie-R-Lehigh) amendments to Administrative Code related to FY 2021-22 budget (House Fiscal Note & Summary, Senate Fiscal Note & Summary). Special provisions--

     -- Oil & Gas Drilling Liquid Waste General Permit Without Environmental Protections: Directing DEP to prepare and submit for publication a new General Permit for the transfer, storage or processing of oil and gas liquid waste at temporary facilities which will be in operation for no more than 180 days at one time.  The provision specifically prohibits DEP from requiring any individuals or municipalities using the General Permit from obtaining an individual determination of applicability if they are involved in land application or using a material for antiskid uses and other protections under 25 PA Code Section 287.641(D) (page 40).

     -- Floodplain Program: includes provisions of House Bill 1598 (Boback-R-Luzerne) designating the PA Emergency Management Agency as the lead floodplain management agency for National Flood Insurance Program, expressing concerns with enhanced flood hazard mitigation plan (page 26).

     -- Water/Wastewater Authority Audits: Authorizing the Auditor General to perform audits of water or wastewater rates proposed by a municipality in a county of the third class in a municipality of less than 370,000 people. (page 36).

-- General Fund Budget: Senate Bill 255 (Browne-R-Lehigh) General Fund FY 2021-22 Budget bill. -- General Fund Appropriations by line-item/Agency.

     -- Transfers from Oil & Gas Lease Fund: $47.790 million was transferred from the Oil and Gas Lease Fund to support DCNR State Parks, Forests and General Operations.

Related Budget Articles:

-- PA Environmental Council: Legislature Is Out For The Summer, Status Of Key Policy Items, Missed Opportunities  [PaEN]

-- Growing Greener Coalition: Missed Budget Opportunity, But Your Voice Can Still Be Heard On Using American Rescue Plan Dollars To Build, Rebuild Green Infrastructure 

-- Chesapeake Bay Foundation: PA Budget Missed The Opportunity To Make Greater Investments In Clean Water 

-- PennFuture, Conservation Voters Of PA, Sierra Club Of PA: State Budget Again Underfunds Investment In Environmental Infrastructure

-- Farm&Dairy: Farm Bureau - PA Budget Maintains Ag Funding, But Lacking On Broadband, Chesapeake Bay Support

-- CourierT: PA Budget Earmarks $1.6 Million For PFAS Cancer Study

[Posted: July 11, 2021]  PA Environment Digest

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