State Budget Agreement Mixed Bag For Environment: RGGI Gone; $156 Million Solar For All Money OK’d; PUC Review Of Load Forecasts; $15 Million For Oil & Gas Regulation; More Cuts To Special Funds Coming

The FY 2025-26 state budget compromise given final approval by the Senate and House and signed by Gov. Shapiro is a mixed bag for environment, energy and natural resource programs--

Good News in Fiscal Code Bill - House Bill 416 --

-- $156 million Solar For All federal money appropriate to PA Energy Development Authority, but the Commonwealth Financing Authority will be the agency deciding where funding goes [Just as EPA proposes ending the Solar For All Program];

-- $25 million to DCED for Solar For School Program;

-- $15 million for DEP Oil & Gas Regulatory Program funding to plug a hole due to lack of permit application revenue; 

-- Electricity Load Forecasting Accountability provisions giving Public Utility Commission authority to review and investigate electric utility load forecasts provided to PJM - A.I. data center related;

-- $45,269,814 to PennVEST for Small Water/Sewer Projects between $30,000 and $500,000

-- $5,709,187 to Commonwealth Financing Authority for H2O Water Infrastructure Grants 

Bad News in Fiscal Code Bill - House Bill 416 --

-- Abrogation of Regional Greenhouse Gas Initiative [RGGI] regulations requiring carbon pollution reductions at Pennsylvania power plants [program was never implemented];

Gov. Shapiro said about this provision-- “For years, Senate Republicans have used RGGI as an excuse to stall substantive conversations about energy. Today, that excuse is gone.

“It’s time to look forward – and I’m going to be aggressive about pushing for policies that create more jobs in the energy sector, bring more clean energy onto the grid, and reduce the cost of energy for Pennsylvanians.

“It’s time to get it done — and I know we can.”

-- $670 million is required to be transferred from special funds and restricted accounts to balance the state budget - a list of the funds and amounts to come later; 

-- Any interest earned by any special fund shall be transferred to the General Fund, except funds administered by DEP and DCNR.

Permit Review Provisions in Fiscal Code Bill - House Bill 416 --

-- New permits added to the DEP SPEED Permit Review Program: storage tanks, certain non-coal mining permits, concentrated animal feeding operations [7 DEP permits are in current SPEED Program. DEP processes about 742 permit applications per week through its regular permitting program.];

-- Setting review deadlines for Air Quality General Permits, Water Quality General Permit Renewals (stormwater, small-flow treatment facilities, petroleum groundwater remediation systems, we weather over flow discharges from combined sewer systems)

-- Establish SPEED-type permit review programs in other state agencies from Senate Bill 6

 

Overview

-- DEP

-- General Fund shows 5.5% increase, general cost-to-carry funding

-- DCNR

-- General Fund Shows Cut, But about $48.5 million Oil & Gas Fund makes up funding in GGO, Parks, Forests personnel line items, but a total of $130 million is being transferred out of the Oil & Gas Fund to DCNR for other purposes

Budget Documents

-- FY 2025-26 Budget Spreadsheet

-- House Bill 416 - Fiscal Code Bill Summary - Amendment Language

-- Senate Bill 160 - General Fund Budget Bill - Summary Of Budget Bill

-- Senate Bill 315 - School Code

-- House Bill 749 - Human Services Code

Related Articles This Week:

-- State Budget Agreement Mixed Bag For Environment: RGGI Gone; $156 Million Solar For All Money OK’d; PUC Review Of Load Forecasts; $15 Million For Oil & Gas Regulation; More Cuts To Special Funds Coming  [PaEN] 

-- Scranton Times Editorial: Pursuing A Clean Energy Pennsylvania Remains A Worthwhile Goal That Is Critical To The Economic Future Of The State And The Health Of Its Residents  [PaEN] 

-- Chesapeake Bay Foundation: PA State Budget Settlement Holds Promises And Pitfalls For The Environment  [PaEN] 

NewsClips:

-- JDSupra.com: Major Environmental Permitting Reform Advance As Part Of PA Budget Settlement

-- National Law Review: PA Fiscal Code Bill Abrogates RGGI, Expedites DEP Permitting Procedures, Gives PUC Oversight Of Electric Utility/PJM Demand Forecasts

-- WESA - Rachel McDevitt: PA Ends Attempt At Carbon Pollution Regulation [RGGI], Leaving Questions On How To Address Climate Change

-- The Center Square: The Carbon Tax Saga Ends In Pennsylvania, For Now  [Ending RGGI That Was Never Implemented] 

-- Inside Climate News - Jon Hurdle: Gov. Shapiro Files To Discontinue PA Supreme Court Appeal Of RGGI Rule After State Budget Deal [RGGI Was Never Implemented]

-- Inquirer - Frank Kummer: Rise Of A.I. Data Centers Prompts Lawmakers To Seek More Say Over Electric Grid Load Forecasts In Budget Settlement

-- Spotlight PA: $50.1 Billion State Budget That Ends Impasse Sends $565 Million To Needy Schools, Makes Key Climate Concession [Ending RGGI That Was Never Implemented] 

-- Inquirer: PA Budget Deal Kills Major Program To Control Greenhouse Gases [Ending RGGI That Was Never Implemented] 

-- Spotlight PA: Democrats Sacrifice Climate Program For $50.1 Billion State Budget Agreement  [Ending RGGI That Was Never Implemented] 

-- WHYY - Susan Phillips: Breaking The PA Budget Impasse Hinged On Ditching A Major Climate Initiative  [Ending RGGI That Was Never Implemented] 

-- Inquirer Editorial: Harrisburg Finally Passes A State Budget, But It Comes At A Steep Cost For PA’s Effort To Stem Greenhouse Gases [Ending RGGI That Was Never Implemented]

-- TribLive: State Budget Agreement Sees No New Money For Public Transit

-- WHYY: SEPTA CEO Calls PA State Budget ‘Disappointing’ After Transit Funding Left Out

[Posted: November 12, 2025]  PA Environment Digest