Kettle Creek Restoration Project

The General Assembly not only passed legislation directing how the $625 million bond passed by voters in May will be spent, but they also made major changes in how funds now going to the existing Growing Greener Program are used.

House Bill 3 (Quigley-R-Montgomery) would spend the $625 million in bond proceeds over six years, floating $210 million in bonds every two years. No new taxes or fees would be used to pay off the bond.

The bond funds would be spent in this manner—

· $230 million for the Department of Environmental Protection for existing Growing Greener –type projects, plus flood protection, projects to address geologic hazards and brownfields remediation. At least $60 million must be spent on acid mine drainage projects.

The legislation adds watershed projects that address regional water priorities and those activities designed to bring the state into compliance with the Chesapeake Bay cleanup agreements and which implement the water resources planning requirements.

In addition, up to $10 million can be made available by DEP to the Pennsylvania Energy Development Authority with up to $5 million annually going to the Department of Community and Economic Development for brownfields remediation;

· $217.5 million for the Department of Conservation and Natural Resources for existing Growing Greener-type projects with at least $100 million to be spent on State Park and Forest improvements and $90 million for open space conservation;

· $80 million to the Department of Agriculture for farmland preservation;

· $50 million to the Department of Community and Economic Development for Main Street and downtown redevelopment related to smart growth projects;

· $27.5 million for Fish and Boat Commission infrastructure improvement projects; and

· $20 million for Game Commission infrastructure projects.

House Bill 3 also earmarks a total of $90 million of these bond funds within the allocations for the departments of Agriculture, Environment Protection, Conservation and Natural Resources and Community and Economic Development for use by counties for capital projects under a new County Environmental Initiative Program.

Each county in each of the eight classes of counties is allocated a specific amount it could use on Growing Greener, flood protection and related projects. Counties would apply to each of the agencies for funding up to their allotted amount. County conservation districts are to be consulted on each of the projects.  The allocation for each county in each class is--

· First Class: $2.7 million – Philadelphia;

· Second Class: $2.7 million – Allegheny;

· Second A Class: $2.7 million -- Bucks, Delaware, Montgomery;

· Third Class: $1.75 million -- Berks, Chester, Dauphin, Erie, Lackawanna, Lancaster, Lehigh, Luzerne, Northampton, Westmoreland, York;

· Fourth Class: $1.39 million -- Beaver, Butler, Cambria, Cumberland, Fayette, Schuylkill, Washington;

· Fifth Class: $1.39 million -- Blair, Centre, Franklin, Lawrence, Lebanon, Lycoming, Mercer, Monroe, Northumberland;

· Sixth Class: $1 million -- Adams, Armstrong, Bedford, Bradford, Carbon, Clarion, Clearfield, Clinton, Columbia, Crawford, Elk, Greene, Huntingdon, Indiana, Jefferson, McKean, Mifflin, Pike, Somerset, Susquehanna, Tioga, Venango, Warren, Wayne;

· Seventh Class: $1 million -- Juniata, Perry, Snyder, Union, Wyoming; and

· Eighth Class: $1 million -- Cameron, Forest, Fulton, Montour, Potter, Sullivan

The Governor’s Budget Office determines how much of the $90 million will be available to the counties each year.

The County Environmental Initiative Program provides an opportunity for watershed, environmental and land trust groups to partner with counties to do capital projects locally.

The $88 million now received annually in the Environmental Stewardship Fund to fund watershed restoration, recreation, State Park, open space, water and sewer and other projects by Agriculture, DEP, DCNR and PENVEST, would be reallocated to do several things—

· Up to $60 million a year shall be used to pay debt service on the $625 million bond issue and any other debt issued by the Commonwealth for projects eligible for funding under the legislation (the first withdrawal would be in FY 06-07);

· Up to $20 million the first year, and up to $30 million the next year is authorized to be used to fund the Hazardous Sites Cleanup Program, although these funds may be repaid under the bill from bond proceeds;

· $10 million annually is authorized to be spent to support historic preservation grants, if separate implementing legislation is passed;

· $2.5 million annually is authorized to be spent to support a sales tax holiday for energy efficient appliances, if separate implementing legislation is passed;

· Any monies remaining in the Fund would be spent by DEP, DCNR, the Department of Agriculture and PennVEST for Growing Greener-type projects based on the existing percentage breakdowns; and

· Transfers of funds into the Environmental Stewardship Fund are authorized from the Alternative Fuels Incentive Fund to keep funding “at historic levels.”

The “up to” and “authorized” language means there is still some flexibility in how much funding is actually taken out of the Environmental Stewardship Fund and used for other purposes in this and future budget years. The Governor’s Budget Office could decide to take $1 in some categories or up to the full amount, depending on their preference leaving more or less money for the original Growing Greener grant purposes.

Gov. Rendell’s proposal to use Recycling Fund monies to pay for the environmental bond issue was not adopted by the General Assembly.

In other changes, the legislation increases the administrative expense limits on grants provided under the Growing Greener Program from two percent to five percent and the $4 per ton fee on municipal waste disposed in Pennsylvania going into the Environmental Stewardship Fund would be extended indefinitely to match the twenty-five cent fee.

House Bill 3 also clarifies the Environmental Stewardship Act to require the $4.25 Growing Greener fee on waste to be collected at both public and privately owned waste facilities.

“Growing Greener provides funding for a host of important needs - acid mine drainage abatement, mine reclamation, oil and gas well plugging, parks and recreation, open space and farmland preservation and State park and forest improvements,” said Sen. Mary Jo White (R-Venango), chair of the Senate Environmental Resources and Energy Committee. “It has empowered local volunteer groups and provided measurable improvements to our environment and added protection of our natural resources.”

Sen. Ray Musto (D-Luzerne), Democratic Chair of the Senate Environmental Committee, said, "I was very pleased that we were able to complete our work on the Growing Greener bond referendum. It was a bipartisan effort and everyone knew how important it was to get this done. The bond referendum that the voters strongly supported last May will now provide funds for important environmental programs, land conservation, and our wildlife agencies."

"This is a great day for Pennsylvania’s environment," said Rep. Bill Adolph (R-Delaware), chair of the House Environmental Resources and Energy Committee. "With this funding, we can continue to preserve valuable open space and farmland, and clean up areas of the state already damaged by irresponsible environmental stewardship. Our children and grandchildren will benefit from the work we did here today."

Rep. Camille George (D-Clearfield) Democratic Chair of the House Committee said, “It wasn’t the straight-up investment in Pennsylvania’s environment that I would have preferred, but it will benefit Clearfield County with funds to fight abandoned mine and acid-mine runoff that so hampers our progress.

George added, “Recycling funds also were preserved and Growing Greener’s emphasis on alternative fuels such as waste coal will pay dividends locally.”

Jan Jarrett, Vice-President of PennFuture said, “While the negotiations were long and hard, this legislation is a victory for the voters, the environment, the economy and the future of Pennsylvania, our legislators rose to the occasion, placing the needs of the Commonwealth over their own parochial interests. Rural and urban legislators alike recognized, in the end, that the future of the entire state was at stake.

“We intend to watch over this money, to make sure that these programs continue to receive the maximum benefit of the voter-approved bond funding each year,” continued Jarrett. “This bill is an advance for working farms, natural areas, and clean water. Each year, however, we will be watching to ensure that minimal amounts of money are transferred out of the Environmental Stewardship Fund to finance the bond. If current funding from the Environmental Stewardship Fund is used to repay the bonds, new sources of revenue will have to be found in seven years to continue current programs.”

NewsClip: New Law Expands Resources Programs

Legislators OK Plan to Divide Bond Issue

Rendell Signs Budget With No New Taxes

Counties to Divvy $90M for Green Efforts

Attachment: Senate Committee Summary of House Bill 3 Changes - PDF

7/8/2005