--- title: 2.26.25 - Senate DEP Budget Hearing Overview description: DEP's $4.1B budget hearing focused on permitting reforms, energy reliability, federal funding delays, and orphaned well plugging. Key issues included process improvements and energy policy challenges. image: https://support.thedtfirm.com/hubfs/DEP%20Logo.jpg --- ![](https://support.thedtfirm.com/hs-fs/hubfs/DEP%20Logo.jpg?width=225&height=225&name=DEP%20Logo.jpg) Budget Related DEP # 2.26.25 - Senate DEP Budget Hearing Overview ![The DT Firm](https://support.thedtfirm.com/hs-fs/hubfs/website/image/dt-favicon.png?width=48&height=48&name=dt-favicon.png) The DT Firm March 2, 2026 **Senate Budget Hearing Recap: Department of Environmental Protection** The Senate Appropriations Committee convened a budget hearing with the Pennsylvania Department of Environmental Protection (DEP), led by Secretary Jessica Shirley, Executive Deputy Secretary Ramez Ziyadeh, and Energy Office Director David Althoff. The discussion focused on permitting reform, energy reliability and affordability, PJM capacity concerns, federal funding delays, and orphaned well plugging. The hearing reflected both bipartisan concern over energy capacity and cost pressures, as well as ongoing scrutiny of DEP’s operational performance and environmental programs. --- **DEP Budget Overview** DEP’s total proposed budget is **$4.1 billion**, including: The General Fund portion represents a relatively small share of DEP’s total funding, underscoring the department’s reliance on federal dollars and special funds. --- **Permitting Reform and Processing Improvements** The hearing opened with questions about DEP’s efforts to modernize and accelerate permitting. **Measurable Reductions in Review Times** Executive Deputy Secretary Ziyadeh provided specific metrics showing significant reductions in processing times across several permit categories: DEP attributed improvements to internal process reforms, better tracking systems, and enhanced communication with applicants. Secretary Shirley emphasized that complete applications remain the biggest driver of faster approvals. **SPEED Program** The relatively new **SPEED (Streamlining Permits for Economic Expansion and Development)** program was also discussed. DEP reported positive feedback from industry stakeholders and noted improved transparency through online permit tracking tools. --- **Interagency Coordination for Economic Development** Senators questioned DEP’s coordination with the Department of Community and Economic Development (DCED) and the Governor’s Office of Transformation and Opportunity (OTO). DEP described: DEP stressed that early coordination is essential for complex development projects. --- **Energy Affordability and Reliability** Energy reliability and rising electricity costs dominated much of the hearing. **RGGI and Energy Prices** In response to concerns about the Regional Greenhouse Gas Initiative (RGGI), Secretary Shirley stated that although RGGI was announced in 2018, it was never implemented in Pennsylvania, and therefore likely did not materially impact electricity prices Instead, DEP identified several major drivers of price increases: DEP emphasized Pennsylvania’s role as the nation’s top electricity exporter and the growing pressure within the PJM regional grid. --- **PJM, Baseload Generation, and Capacity Concerns** Senators raised significant concerns about supply constraints, growing demand from electrification and data centers, and PJM interconnection backlogs. **PJM Queue Delays** DEP acknowledged: Secretary Shirley cited the Homer City redevelopment as evidence that DEP can move quickly on major projects. **Homer City Example** DEP recently permitted the redevelopment of the Homer City site—replacing a retired coal plant with what was described as the largest natural gas-fired plant in the country. The air permit was issued in approximately **seven months**, which DEP characterized as record time Senators noted, however, that certain projects (including Homer City and Three Mile Island redevelopment discussions) may serve dedicated users rather than the broader grid. **Broader Energy Debate** Senator Yaw emphasized: The exchange reflected a broader policy divide over how quickly Pennsylvania must scale baseload generation to remain competitive. --- **Governor’s “Lightning Plan”** Secretary Shirley referenced the Governor’s proposed “Lightning Plan,” which seeks to modernize outdated energy statutes (some dating back to 2004–2008) to reflect changes in the energy landscape While details were not fully discussed in the exchange, DEP framed the plan as part of a broader affordability and modernization strategy. --- **Energy Storage and Demand-Side Solutions** DEP highlighted two immediate policy priorities: **1. Energy Storage** Secretary Shirley emphasized the importance of storage capacity, arguing that electricity is uniquely treated as an on-demand product without meaningful storage buffers. She suggested expanded battery deployment could reduce peak price volatility and shave high-cost demand spikes Some senators expressed skepticism about near-term storage scalability, arguing that supply-side generation must remain the immediate focus. **2. Federal Energy Efficiency and Solar Funds** DEP reported that: DEP stated it is prepared to deploy the funds immediately if released. --- **Orphaned and Abandoned Well Plugging** Significant time was devoted to oil and gas well plugging. **Scope of the Problem** DEP reported: **Plugging Progress** **Cost Improvements** DEP reported a reduction in average plugging costs: **Capacity and Procurement Challenges** DEP acknowledged: The department indicated it may seek legislative changes to expand participation, particularly to smaller contractors, and streamline the Orphan Well Grant Program Senators emphasized that at current plugging rates, full remediation would take decades without structural reform. --- **Key Themes from the Hearing**   ## Share this post [mailto:https%3A%2F%2Fsupport.thedtfirm.com%2Fdts-budget-blog%2F2.26.25-senate-dep-budget-hearing-overview](mailto:https%3A%2F%2Fsupport.thedtfirm.com%2Fdts-budget-blog%2F2.26.25-senate-dep-budget-hearing-overview) ## Keep reading [![](https://support.thedtfirm.com/hs-fs/hubfs/PSP.jpg?width=225&height=225&name=PSP.jpg) PSP Budget Related ### 3.11.26 - House Budget Hearing Pennsylvania State Police ](https://support.thedtfirm.com/dts-budget-blog/3.11.26-house-budget-hearing-pennsylvania-state-police) [![](https://support.thedtfirm.com/hs-fs/hubfs/OOB2-1.png?width=847&height=460&name=OOB2-1.png) Budget Related OOB ### 3.12.26 - House Budget Hearing - Governor's Budget Office ](https://support.thedtfirm.com/dts-budget-blog/3.12.26-house-budget-hearing-governors-budget-office) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "The DT Firm", "url" : "https://support.thedtfirm.com/dts-budget-blog/author/the-dt-firm" }, "dateModified" : "2026-03-02T14:37:07.336Z", "datePublished" : "2026-03-02T14:36:56.000Z", "headline" : "2.26.25 - Senate DEP Budget Hearing Overview", "image" : [ "https://support.thedtfirm.com/hubfs/DEP%20Logo.jpg" ], "mainEntityOfPage" : { "@id" : "https://support.thedtfirm.com/dts-budget-blog/2.26.25-senate-dep-budget-hearing-overview", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://support.thedtfirm.com/hubfs/website/image/logo-DT-firm.png" }, "name" : "The DT Firm" } } ```