Post by pfsc on Mar 6, 2015 20:14:33 GMT -5
DEP, DCNR DETAIL GOVERNOR’S PROPOSED BUDGET
By Trevor J. Monk, PLS
Acting Secretary of the Department of Environmental Protection (DEP) John Quigley and Acting Secretary of the Department of Conservation and Natural Resources (DCNR) Cindy Dunn held a budget briefing at the Rachel Carson Building on Tuesday afternoon to review Gov. Tom Wolf’s proposed 2015-16 budget.
The briefing detailed how the proposed budget has the potential to make Pennsylvania an energy leader through new investments to take full and responsible advantage of the state’s natural resources, which include natural gas, coal, wind, solar, and timber. The proposal also proposes millions of dollars to protect, clean, and conserve the commonwealth’s land, air and water.
Sec. Quigley explained that in order to become the nation’s energy leader, the Commonwealth must expand and develop new markets for Pennsylvania’s energy technologies, services and fuels. Sec. Quigley expressed his belief that the governor’s budget “makes historic investments to bolster and transform our energy economy.” In addition, Sec. Quigley said, “Gov. Wolf’s budget attests to his commitment to create new jobs and protect public health and our environment, all of which strengthens Pennsylvania’s economy.”
Sec. Quigley explained that the proposed spending plan focuses on responsible shale development and includes a new $225 million energy investment initiative that is part of the governor’s larger economic growth package to ensure a comprehensive energy portfolio that supports gas, coal, oil and renewables, and encourages conservation and clean technology alternatives. He added that the governor’s proposal also invests $10 million for additional inspection and oversight of oil and gas operations.
Sec. Quigley discussed the second spending focus, which advances clean energies. He mentioned that Gov. Wolf’s energy investment initiative includes $50 million to re-launch the PA Sunshine Solar program, which provides rebates on qualifying solar projects. He further explained that an additional $50 million will provide grants for projects to improve energy efficiency at small businesses, local government units, schools and non-profits, with larger grants awarded for collaborative projects.
Sec. Quigley noted the energy investment also includes the following:
$30 million for a combined heat and power competitive grant program
$30 million to the Pennsylvania Energy Development Authority for clean energy market development
$20 million for clean energy and energy efficiency projects in the agriculture sector $25 million for a “last mile” natural gas distribution line fund to provide access to natural gas to Pennsylvania’s manufacturing sector $20 million for a wind energy generation program.
Sec. Quigley also stated the governor’s spending proposal restores more than $7.8 million to DEP’s $147 million General Fund budget to protect water and air quality, address abandoned mine reclamation, and improve enforcement of Pennsylvania’s environmental laws.
Prior to detailing DCNR’s budget, Sec. Dunn clarified that Gov. Wolf’s moratorium on shale drilling in state parks and forest did not affect the pre-existing agreements with drilling companies, with a combined total of 50 operational wells.
Sec. Dunn explained that the governor’s proposal focuses on protecting parks and forests. Specifically, she stated, the proposed budget for the DCNR includes an increase in General Fund appropriations of roughly $20 million, which previously came from the Oil and Gas Lease Fund. She explained that activities that provide monitoring and oversight of the department’s lands that were previously leased for gas development include:
A monitoring program to track, detect and report on the impacts of shale gas development on state forest lands to continue to improve management practices
A major upgrade of the environmental review tool that identifies threatened and endangered species for protection
Improvements in seismic monitoring to enhance the sophistication of our geological information
A robust auditing program to ensure the commonwealth is adequately compensated for shale gas activities on DCNR lands.
She said the proposal maintains the budget for the Bureau of State Parks at about $93 million, the Bureau of Forestry at about $71 million, and anticipates an additional $1 million for the Keystone Fund to support DCNR’s grant program for conservation and recreation in local communities, bringing it to about $51 million total.
She said the proposal also includes 22 new full-time positions in the Bureau of State Parks, primarily to support the transfer of Washington Crossing Historic Park in Bucks County into the state park system and for Point State Park in Pittsburgh.
Sec. Dunn added that additional budget highlights include a continued attention to maintaining the department’s vast infrastructure and improving its energy efficiency, support for a gypsy moth spraying program to counter the cyclical pest that impacts public and private forests, and continuing to improve cost efficiencies related to workforce safety.
In closing, Sec. Dunn said DCNR’s proposed 2015-16 budget from all revenue sources is $342.6 million, which includes $34.2 million from the General Fund.
The secretaries then took questions from the press.
How are you feeling about your upcoming confirmation hearings?
Sec. Dunn said she thinks the confirmation will go well. Sec. Quigley jokingly said, “everyone loves regulation.” He said he values the opportunity to sit down with the members of the Senate. He said is two-thirds of the way through his meetings and things are going well.
Some of the senators are concerned about your blog, are you concerned about what you wrote?
Sec. Quigley said if there are concerns he has not heard them yet. He said the blog posts were either his opinion or information presented to stimulate conversation.
How are you keeping track of the production volume and the pricing of natural gas, since companies have been having problems reporting to DEP?
Sec. Quigley said the pricing is self-reported under the current system and added that if there are better ways to record the pricing, he would support it.
What about the pricing and exactly where the gas will be sold?
Sec. Dunn said the Bureau of Forestry hired an accountant and auditor as part of the monitoring program. She said it is an issue to be taken seriously because all Pennsylvanians own the land.
How many of the clean energy technology programs are controlled by executive branch policy?
Sec. Quigley said he hadn’t seen the actual legislation, and stated there are existing programs and some new programs, but it is not decided how the funding will be distributed.
How does this budget affect the staffing level on the regulatory side of the operations?
Sec. Quigley said the budget provides for roughly 50 additional staff that comes from the general side and the Marcellus shale severance tax.
Some of the estimates from the severance tax have been questioned, where do you see the pricing situation moving forward, and how does that effect revenue?
Sec. Quigley said the governor estimated that the severance tax will raise roughly $1 billion, which he said is possible. He explained that the price would shift because natural gas is a commodity. He said do not think about how much it will generate now, but think about what it will do in the future.
Is the additional staffing funded strictly from the severance tax?
Sec. Quigley said the $10 million is earmarked specifically for oil and gas inspection and roughly $7.8 million comes from the General Fund.
Will you increase the monitoring efforts and how often do the reports come out?
Sec. Dunn said the monitoring has been continually stepped up, and that the proposal calls for seismic monitoring. She said the cost will be shared by DEP and DCNR. A DCNR staff member answered the reports come out periodically and as they are received. He said people who need them at a specific time need to contact DCNR.
Could DEP start regulating oil trains movement through the Commonwealth. Sec. Quigley said there has not been any talk about regulating oil train movements?
Sec. Quigley stated the governor takes emergency preparedness very seriously. He said when incidents do occur, DEP would then take action as part of the emergency responses.
Regarding the Chapter 78 regulations, what is the status on the meeting at the end of the month? Sec. Quigley said a meeting will be held on March 20, 2015. He said the Chapter 78 rules are on track, moving forward, and will be meet the deadline.
By Trevor J. Monk, PLS
Acting Secretary of the Department of Environmental Protection (DEP) John Quigley and Acting Secretary of the Department of Conservation and Natural Resources (DCNR) Cindy Dunn held a budget briefing at the Rachel Carson Building on Tuesday afternoon to review Gov. Tom Wolf’s proposed 2015-16 budget.
The briefing detailed how the proposed budget has the potential to make Pennsylvania an energy leader through new investments to take full and responsible advantage of the state’s natural resources, which include natural gas, coal, wind, solar, and timber. The proposal also proposes millions of dollars to protect, clean, and conserve the commonwealth’s land, air and water.
Sec. Quigley explained that in order to become the nation’s energy leader, the Commonwealth must expand and develop new markets for Pennsylvania’s energy technologies, services and fuels. Sec. Quigley expressed his belief that the governor’s budget “makes historic investments to bolster and transform our energy economy.” In addition, Sec. Quigley said, “Gov. Wolf’s budget attests to his commitment to create new jobs and protect public health and our environment, all of which strengthens Pennsylvania’s economy.”
Sec. Quigley explained that the proposed spending plan focuses on responsible shale development and includes a new $225 million energy investment initiative that is part of the governor’s larger economic growth package to ensure a comprehensive energy portfolio that supports gas, coal, oil and renewables, and encourages conservation and clean technology alternatives. He added that the governor’s proposal also invests $10 million for additional inspection and oversight of oil and gas operations.
Sec. Quigley discussed the second spending focus, which advances clean energies. He mentioned that Gov. Wolf’s energy investment initiative includes $50 million to re-launch the PA Sunshine Solar program, which provides rebates on qualifying solar projects. He further explained that an additional $50 million will provide grants for projects to improve energy efficiency at small businesses, local government units, schools and non-profits, with larger grants awarded for collaborative projects.
Sec. Quigley noted the energy investment also includes the following:
$30 million for a combined heat and power competitive grant program
$30 million to the Pennsylvania Energy Development Authority for clean energy market development
$20 million for clean energy and energy efficiency projects in the agriculture sector $25 million for a “last mile” natural gas distribution line fund to provide access to natural gas to Pennsylvania’s manufacturing sector $20 million for a wind energy generation program.
Sec. Quigley also stated the governor’s spending proposal restores more than $7.8 million to DEP’s $147 million General Fund budget to protect water and air quality, address abandoned mine reclamation, and improve enforcement of Pennsylvania’s environmental laws.
Prior to detailing DCNR’s budget, Sec. Dunn clarified that Gov. Wolf’s moratorium on shale drilling in state parks and forest did not affect the pre-existing agreements with drilling companies, with a combined total of 50 operational wells.
Sec. Dunn explained that the governor’s proposal focuses on protecting parks and forests. Specifically, she stated, the proposed budget for the DCNR includes an increase in General Fund appropriations of roughly $20 million, which previously came from the Oil and Gas Lease Fund. She explained that activities that provide monitoring and oversight of the department’s lands that were previously leased for gas development include:
A monitoring program to track, detect and report on the impacts of shale gas development on state forest lands to continue to improve management practices
A major upgrade of the environmental review tool that identifies threatened and endangered species for protection
Improvements in seismic monitoring to enhance the sophistication of our geological information
A robust auditing program to ensure the commonwealth is adequately compensated for shale gas activities on DCNR lands.
She said the proposal maintains the budget for the Bureau of State Parks at about $93 million, the Bureau of Forestry at about $71 million, and anticipates an additional $1 million for the Keystone Fund to support DCNR’s grant program for conservation and recreation in local communities, bringing it to about $51 million total.
She said the proposal also includes 22 new full-time positions in the Bureau of State Parks, primarily to support the transfer of Washington Crossing Historic Park in Bucks County into the state park system and for Point State Park in Pittsburgh.
Sec. Dunn added that additional budget highlights include a continued attention to maintaining the department’s vast infrastructure and improving its energy efficiency, support for a gypsy moth spraying program to counter the cyclical pest that impacts public and private forests, and continuing to improve cost efficiencies related to workforce safety.
In closing, Sec. Dunn said DCNR’s proposed 2015-16 budget from all revenue sources is $342.6 million, which includes $34.2 million from the General Fund.
The secretaries then took questions from the press.
How are you feeling about your upcoming confirmation hearings?
Sec. Dunn said she thinks the confirmation will go well. Sec. Quigley jokingly said, “everyone loves regulation.” He said he values the opportunity to sit down with the members of the Senate. He said is two-thirds of the way through his meetings and things are going well.
Some of the senators are concerned about your blog, are you concerned about what you wrote?
Sec. Quigley said if there are concerns he has not heard them yet. He said the blog posts were either his opinion or information presented to stimulate conversation.
How are you keeping track of the production volume and the pricing of natural gas, since companies have been having problems reporting to DEP?
Sec. Quigley said the pricing is self-reported under the current system and added that if there are better ways to record the pricing, he would support it.
What about the pricing and exactly where the gas will be sold?
Sec. Dunn said the Bureau of Forestry hired an accountant and auditor as part of the monitoring program. She said it is an issue to be taken seriously because all Pennsylvanians own the land.
How many of the clean energy technology programs are controlled by executive branch policy?
Sec. Quigley said he hadn’t seen the actual legislation, and stated there are existing programs and some new programs, but it is not decided how the funding will be distributed.
How does this budget affect the staffing level on the regulatory side of the operations?
Sec. Quigley said the budget provides for roughly 50 additional staff that comes from the general side and the Marcellus shale severance tax.
Some of the estimates from the severance tax have been questioned, where do you see the pricing situation moving forward, and how does that effect revenue?
Sec. Quigley said the governor estimated that the severance tax will raise roughly $1 billion, which he said is possible. He explained that the price would shift because natural gas is a commodity. He said do not think about how much it will generate now, but think about what it will do in the future.
Is the additional staffing funded strictly from the severance tax?
Sec. Quigley said the $10 million is earmarked specifically for oil and gas inspection and roughly $7.8 million comes from the General Fund.
Will you increase the monitoring efforts and how often do the reports come out?
Sec. Dunn said the monitoring has been continually stepped up, and that the proposal calls for seismic monitoring. She said the cost will be shared by DEP and DCNR. A DCNR staff member answered the reports come out periodically and as they are received. He said people who need them at a specific time need to contact DCNR.
Could DEP start regulating oil trains movement through the Commonwealth. Sec. Quigley said there has not been any talk about regulating oil train movements?
Sec. Quigley stated the governor takes emergency preparedness very seriously. He said when incidents do occur, DEP would then take action as part of the emergency responses.
Regarding the Chapter 78 regulations, what is the status on the meeting at the end of the month? Sec. Quigley said a meeting will be held on March 20, 2015. He said the Chapter 78 rules are on track, moving forward, and will be meet the deadline.