Legislative Action

Gov. Josh Shapiro appeared before a joint session of the General Assembly to deliver is FY 2025-26 budget proposal on February 4. https://www.pa.gov/governor/governor-shapiro-s-budget/budget-details.html. The sprawling, 90-minute speech outlined the Shapiro administration’s priorities for the next fiscal year, which begins on July 1.

Gov. Shapiro proposed $51.4 billion spending plan, some $3.5 billion higher than the current with a major focus on spending more for education, workforce development and health care while recognizing concerns about the uncertainty of federal funding as DOGE cuts loom.

Shapiro's plan leans heavily on $4.5 billion from the expected year-end surplus and the Rainy Day Fund to balance the budget, leaving an estimated $6.4 billion in the Rainy Day Fund when the next fiscal year ends in June 2026, according to official press briefings. The budget also counts on new revenues from long-debated proposals, most notably legalization of adult recreational use of marijuana and regulating skill games, that lawmakers would also have to legislate before they can be counted on.

As expected, the budget proposal was met with mixed reactions from legislative leaders, who are charged with putting the proposal through the legislative crucible.

After completing a detailed analysis of Governor Shapiro’s 2025-26 budget plan, Senate Appropriations Committee Chairman Scott Martin (R-Lancaster) raised serious concerns about shortfalls in future years that would burden taxpayers with significant new costs and higher taxes in the years ahead.

“Pennsylvanians deserve a budget that is honest with taxpayers about the impact of its proposed spending and policies. They need to know not just what it means today, but also tomorrow and a few years down the road,” Martin said. “In all my time working in government, I have never seen a budget plan that is so wildly inaccurate in terms of predicting future spending and revenues.”

Martin detailed $27 billion worth of concerns over the next five years under Governor Shapiro’s plan. The shortfalls fall into five categories:

• Unrealistic new revenues — $12.1 billion.
• Suppressing future human services costs — $6.3 billion.
• Overstating baseline revenue growth — $5.1 billion.
• Program eliminations — $2.8 billion.
• Tax credit revisions — $1 billion.

Meanwhile, Senate Democrat leaders applauded the Governor’s stated priorities. “Today’s budget proposal is a very solid plan to deliver critical growth, freedom, and opportunity to every Pennsylvanian,” said Senate Democratic Leader Jay Costa. “Governor Shapiro’s plan is a commonsense approach to progress in our state, balancing fiscal responsibility with a bold vision for improving the lives of our families and workers. From ensuring folks can get to work on functional roads and transit systems to unleashing our energy potential, Pennsylvania stands poised to seize the opportunities before us. I look forward to the next few weeks of budget hearings and collaborative discussions with my colleagues in all four caucuses as we move forward.”

Senator Vincent Hughes, Democratic Appropriations Chair, said, “This budget is a testament to Governor Shapiro’s commitment to hardworking Pennsylvania’s. It funds student teachers and schools, childcare providers, direct care workers, and opportunities for young people and adults to develop new skills and get high paying jobs. It introduces new money for affordable housing, lower utility costs, and tax relief for homeowners.

We want the people of Pennsylvania to know we are listening, and we are fighting for them. While we continue to see chaos and reckless cuts out of Washington, Governor Shapiro and state Democrats are committed to protecting Pennsylvanians from paying more for basic necessities. We are focused on affordability. We are serving the people of Pennsylvania, not a handful of millionaires and billionaires.”

These caucus differences were echoed by their respective House counterparts.

The House and Senate then recessed for several weeks to allow the respective Appropriations committees to hold public hearings with various agencies to dig into their specific areas of responsibility. The hearings began in February, and will continue into the first two weeks of March, before the legislature returns to session, and begin to work on budget- and non-budget-related legislation. Some of those hearings of interest are reviewed below.

The committee held a budget hearing with the Department of Environmental Protection and the Department of Conservation and Natural Resources on February 27.

The Department of Environmental Protection (DEP) was represented by:

• Jessica Shirley, acting secretary, DEP,
• Ramez Ziadeh, executive deputy secretary, DEP, and
• David Althoff, director, Energy Program Office, DEP.

The Department of Conservation and Natural Resources (DCNR) was represented by:

• Cindy Adams Dunn, secretary, DCNR,
• John Norbeck, deputy secretary, Parks and Forestry, DCNR,
• Mike Walsh, deputy secretary, Administration, DCNR,
• Claire Jantz, deputy secretary, Conservation and Technical Services, DCNR,
• Seth Cassell, state forester and director, Bureau of Forestry, DCNR,
• John Hallas, director, Bureau of State Parks, DCNR, and
• Cindy Thomas, director of operational excellence DCNR.

Chairman Jordan Harris (D-Philadelphia) opened the budget hearing.

Minority Chairman Jim Struzzi (R-Indiana) discussed the budget requests for DEP at approximately $262.6 million and for DCNR at about $198.5 million. He noted that under the proposal, DEP’s budget would increase $27 million and DCNR’s budget would increase $23 million from the current year. He added that both departments receive significant federal funding. He asserted that both departments represent about $4.6 billion in federal and state funding.

Rep. Paul Friel (D-Chester) asked Sec. Dunn about the auditor general's report on the Community Conservation Partnership Program, specifically regarding the lack of competitive bidding on projects and the acceptance of late applications. Sec. Dunn explained that only 3.9% of grants used discretionary authority for reasons such as innovative projects or emergencies and detailed improvements made since the audit, including a fully electronic grant application system. She also discussed a specific instance where a late application was accepted based on discretionary authority to support communities in need with American Rescue Plan Act (ARPA) funds. Rep. Friel noted that the audit found that DCNR had not complied with federal inspection requirements for Land and Water Conservation Fund projects. Sec. Dunn said the department greatly improved its inspection methods since DCNR was last audited. She added the discrepancy was due to a clerical error and difficulties due to the COVID-19 pandemic.

Rep. Eric Davanzo (R-Westmoreland) asked Sec. Shirley how Pennsylvania can use its natural gas reserves to attract businesses. Sec. Shirley discussed the governor's lightning plan and the state's significant natural gas reserves, noting the current price of natural gas incentivizes its development. Rep. Davanzo questioned if joining the Regional Greenhouse Gas Initiative (RGGI) contradicts efforts to attract businesses by increasing energy costs, mentioning the loss of several power plants in the state. Sec. Shirley responded that the “cap and trade” program is under review by the state Supreme Court and the issue of limited proposals for natural gas-fired power plants is a regional issue. Rep. Davanzo compared Pennsylvania's stance on energy as unfavorable when compared to Ohio. Sec. Shirley mentioned that power plants are not being built in Ohio either. Rep. Davanzo suggested poor policy might be why new power plants aren't being built in Pennsylvania and asked about integrating natural gas or hydrogen into public transportation. Althoff explained the Alternative Fuels Incentive Grant Program, funded by a millage of the utilities' gross receipts tax, generating about $5 million annually for the program. Rep. Davanzo emphasized the importance of utilizing Pennsylvania's natural gas and expressed skepticism towards electric vehicles due to concerns over child labor overseas.

Rep. Marla Brown (R-Lawrence) asked for an update on the $21 million technology upgrade for IT infrastructure to improve permitting processes. Sec. Shirley mentioned the department selected Salesforce as the provider, with a second request for proposal (RFP) issued to customize the system for various programs. She said the program could be rolled out by late summer. Rep. Brown asked how much the program will improve timeframes. Sec. Shirley responded that the new system is part of broader efforts to reduce processing times, but there are other initiatives evaluating the department’s processes to reduce wait times. Rep. Brown further asked if these efforts would expedite the permitting process. Sec. Shirley mentioned working on expediting timeframes through third-party reviews and pilot programs with county conservation districts. Brown questioned how the technological updates compare in competitiveness with other states. Sec. Shirley highlighted the rollout of a permit tracker in January to improve efficiency and transparency in the permitting process.

Rep. Joseph Webster (D-Montgomery) emphasized the importance of modeling hydrology to prevent flooding and protect property. Sec. Shirley acknowledged the challenge of increased localized flooding across Pennsylvania, emphasizing the importance of stormwater management.

Rep. Ben Waxman (D-Phila.) highlighted the uncertainty and impacts of the 10-day federal funding freeze on the commonwealth. Sec. Shirley added that the funding freeze could have lasting impacts, deterring project partners from undertaking projects without guaranteed reimbursement. Rep. Waxman inquired about communication with the Office of the Budget and the federal government post-lawsuit. Sec. Shirley deferred questions about project partners' actions to the budget secretary.

Rep. Joshua Kail (R-Beaver) asked about the citizens' rulemaking process and the number of petitions under consideration at the DEP. Sec. Shirley said she was unsure of the exact number but explained the role of the Environmental Quality Board (EQB) in the rulemaking process and stated that anyone could petition provided they have the necessary information. Rep. Kail inquired about three specific petitions related to the natural gas industry and their financial impacts: bonding in the natural gas industry, setback rules and a cap and trade program. Sec. Shirley explained the evaluation process for petitions, including assessing financial implications and impacts on small businesses. She mentioned that this evaluation could lead to a recommendation for rulemaking or rejection of the petition.

Rep. Kail asked if rules could be implemented without legislative consent. Sec. Shirley explained the criteria for petition evaluation. Kail confirmed that anyone, including out-of-state entities and NGOs funded by the United States Agency for International Development (USAID), can file a petition. Sec. Shirley noted an increase in the variety of petitions submitted over the last two years, historically focused on stream redesignations. Sec. Shirley stated that the time required to evaluate petitions varies, with some quickly dismissed if outside DEP's authority, while others may need extensive analysis. Rep. Kail expressed concern about the impact of petitions on industries, emphasizing the risk to investments and jobs without legislative input. Sec. Shirley remarked that the petition process does not automatically enforce regulations, which still require the typical rulemaking process including legislative input. Rep. Kail criticized the absence of legislative consent in the approval of regulations and the regulatory process for lacking a floor vote or rule review. Sec. Shirley responded that the legislature has opportunities to engage in the regulatory process and that there is a legislative review process for rulemaking.

Rep. Emily Kinkead (D-Allegheny) highlighted the issue of landslides and sinkholes in Pennsylvania, asking about DEP's actions to assist affected individuals. Sec. Shirley explained that the response to sinkholes varies depending on their cause and that DEP does not provide assistance for financial losses related to landslides and sinkholes not associated with mine subsidence. Rep. Kinkead inquired about the process for mapping wells and prioritizing which wells are plugged first. Sec. Shirley explained DEP prioritizes emergencies based on threats to public health and environmental protection, focusing on the highest priority wells. She continued that the criteria for addressing leaking wells include the impact on houses, water, or under driveways. Rep. Kinkead also asked about DEP's plan for plugging wells in inaccessible locations like the Allegheny Forest. Sec. Shirley said the department is working with Allegheny National Forest and explained there is separate funding provided by the federal government to plug those wells. Rep. Kinkead asked about the expected number of orphan wells to be plugged with additional funds. Sec. Shirley responded that about $300 million is expected, allowing for at least 3000 wells to be plugged. Kinkead further inquired about the timeline for this project. Sec. Shirley explained DEP received $78 million this year and anticipates over $100 million for the next two years, with a total project timeline of potentially seven years.

Rep. Charity Grimm Krupa (R-Fayette) asked if the Streamlining Permits for Economic Expansion and Development (SPEED) program applies to general permits. Sec. Shirley said it does apply to those permits.  Rep. Krupa raised concerns about the inefficiency of the permit process, particularly for fish habitat enhancement and agricultural crossings. She asked if there were plans to address these inefficiencies. Ziadeh highlighted improvements made to the general permits process, including better standard operating procedures and a new platform to automate processes.

Rep. Regina Young (D-Philadelphia) thanked Sec. Dunn for her department's collaboration on environmental concerns in her district, particularly Bartram's Garden, emphasizing the importance of community involvement and expressing eagerness to continue discussions on education and prioritizing children. Sec. Shirley discussed DEP's response to communication failures identified in the Bartram's Garden situation, detailing improvements in engagement and coordination efforts to ensure effective communication with the community. Sec. Dunn highlighted DCNR's involvement with Bartram’s Garden, mentioning grants provided and efforts to reconnect the community with the Schuylkill River, and discussed other efforts in the area. Rep. Young inquired about workforce development initiatives, asking how communication improvements and access to resources are being integrated into hiring practices. Sec. Dunn described the Pennsylvania Outdoor Corps., a program employing youth in conservation work on public lands, emphasizing its success in integrating staff into their workforce and exposing young people to conservation careers.

Rep. Justin Fleming (D-Dauphin) inquired about the progress of stormwater management in the commonwealth. He asked if there is any group that rates how the state is progressing. Sec. Shirley discussed the complexity of managing stormwater at the municipal level in Pennsylvania and highlighted the success of regional stormwater management in water quality and flood prevention. She mentioned that some funding was allocated this year for planning in this area. Ziadeh noted that under the Clean Streams Fund, $8.8 million was available two years ago for counties to update their comprehensive stormwater management plans, with $2.7 million awarded to counties that engaged in updating their plans.

Rep. Fleming mentioned his intention to reintroduce a bill requiring the commonwealth to pay stormwater fees for state buildings to municipalities and inquired about employment gains in the DCNR since the PA outdoor core program began. Sec. Dunn said about 58 individuals have become employed with the program. She said she enjoyed seeing the leadership and other soft skills developing among young people.

HB721 RE: Strengthening the Construction Workplace Misclassification Act (by Rep. Kyle Donahue, et al)

Increases penalties on contractors who misclassify workers and expands the purview of the Attorney General and District Attorneys to investigate and prosecute worker misclassification. Additionally,the bill permits misclassified workers to pursue a private right of action.

Referred to House Labor and Industry Committee, 2/25/2025

HB571 RE: Investing in Infrastructure Improvements Throughout Pennsylvania (by Rep. Mary Isaacson, et al)

The Rebuild Pennsylvania Act establishes the Rebuild Pennsylvania Board, the Rebuild Pennsylvania Program and the Rebuild Pennsylvania Fund; providing for powers and duties of the board and for use of program money; and making an interfund transfer. Adds definitions. Establishes the Rebuild Pennsylvania Program as an independent administrative board and outlines the composition and meeting requirements. Establishes by laws, participating and voting, compensation, appointments and dissolution requirements and processes. Establishes the Rebuild Pennsylvania program in the board to provide financial assistance in the form of grants, loans or other forms of financing or funding for eligible uses. Outlines the allocation criteria for the program money. Allows for the board to use the money to provide financial assistance and outlines use requirements including for flood control infrastructure, for disaster response measures, for green infrastructure, for redevelopment, repairs and blight demolition, for storm water infrastructure, for brownfield cleanup, for containment remediation, for business development and site selection, for energy efficiency and for transportation infrastructure. Requires the agencies to consider regional and socioeconomic diversity. Allows for matching funds and outlines the requirements. Provides for application processes. Establishes the Rebuild Pennsylvania Fund as a separate fund in the State Treasury. Appropriates $3 million from the General Fund to the fund for fiscal year 2024-2025.

Referred to House Environmental and Natural Resource Protection Committee, 2/12/2025

SB291 RE: . Capital Budget For Fiscal Year 2025-2026 (by Sen. Vincent J. Hughes, et al)

An Act providing for the capital budget for fiscal year 2025-2026.

Referred to Senate Appropriations Committee, 2/26/2025

HB543 RE: Expanding the Use of Mechanical Insulation in Energy Efficiency and Conservation Programs (Former HB491) (by Rep. Regina G. Young, et al)

Amends Title 66 (Public Utilities), in restructuring of electric utility industry, further providing for energy efficiency and conservation program. Prohibits the commission from disapproving a plan solely due to the inclusion of mechanical insulation which is demonstrated to be cost effective using a total resource cost test approved by the commission. Adds a definition for mechanical insulation.

Referred to House Consumer Protection, Technology and Utilities Committee, 2/10/2025

HB580 RE: Lead Levels in Playground Areas (Former HB 605) (by Rep. Mary Isaacson, et al)

Amends Title 35 (Health and Safety), providing Part I for public health; imposing duties on the Department of Environmental Protection relating to lead levels in soil; and imposing penalties. Provides several definitions. Establishes permissible levels of lead regarding a playground. Provides for enforcement and penalties, outlining prohibitions, violations, service, hazardous conditions, penalties and continued violations. Asserts that penalties and other orders of the department under this chapter are subject to 2 Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of commonwealth agencies) and 7 Subch. A (relating to judicial review of commonwealth agency action). Permits the department to promulgate regulations necessary to carry out the provisions of this chapter.

Referred to House Environmental and Natural Resource Protection Committee, 2/12/2025

HB584 RE: Lead Abatement Grant Program (Former HB 606) (by Rep. Mary Isaacson, et al)

Amends Title 27 (Environmental Resources), providing Chapter 64 for lead abatement assistance; establishing the Lead Abatement Grant Program and the Lead Abatement Assistance Fund; and imposing an architectural paint surcharge. Provides several definitions. Requires program to be in collaboration with the Department of Health (DOH) and Department of Community and Economic Development (DCED). Specifies what grants are to be used for. Establishes eligibility and competitive awards. Explains the money in the Lead Abatement Assistance Fund is appropriated to the department on a continuing basis for the purposes specified in this chapter. Requires the money collected from surcharges to be deposited into the fund. Specifies use of money. Authorizes the imposing and collection of surcharges. Requires department to establish guidelines. Effective in 60 days.

Referred to House Housing and Community Development Committee, 2/12/2025

HB659 RE: Comprehensive Storm Water Management (by Rep. Joe Webster, et al)

Requires counties to prepare and implement a comprehensive storm water management plan based on watershed boundaries that includes proposed solutions to existing storm water runoff issues, assessments of current storm water management facilities, public education and information programs, and provisions requiring that the plan be reviewed every five years.

Referred to House Environmental and Natural Resource Protection Committee, 2/20/2025

HB660 RE: Appliance Energy Efficiency Standards (by Rep. Jennifer O'Mara, et al)

The Pennsylvania Energy and Water Efficiency Standards Act provides for minimum energy and water efficiency standards for certain products sold in this commonwealth; imposes penalties; and repeals all acts and parts of acts insofar as they are inconsistent with the provisions of this act. Outlines legislative findings. Establishes what products the provisions of this act apply to. Specifies limitations. Provides definitions. Requires the Environmental Quality Board (EQB) to promulgate regulations establishing minimum efficiency standards for the types of new products listed no later than one year after the effective date, outlining the minimum efficiency standards that the regulations shall provide for. Provides for implementation, detailing the requirement of efficiency and the restriction on installation. Directs EQB to set efficiency standards on a determination that increased efficiency standards would serve to promote energy or water conservation in this commonwealth and would be cost-effective for consumers who purchase and use the products, provided that no increased efficiency standards shall become effective within one year following the adoption of any amended regulations establishing increased efficiency standards. Provides for product testing and imposes duties on the Department of Environmental Protection (DEP). Requires compliance through DEP certification and compliance to mark, label or tag products. Permits DEP to cause periodic inspections to be made of distributors or retailers of new products listed in order to determine compliance. Outlines the complaint process. Abrogates all regulations and parts of regulations to the extent of any inconsistency with the provisions of this act.

Referred to House Energy Committee, 2/18/2025

HB673 RE: Protecting Riparian Buffers (by Rep. Joe Webster, et al)

The Riparian Buffer Protection Act provides for protection of existing riparian buffers, for restoration of impaired riparian buffers, for exemptions, for municipal authority, for powers and duties of Department of Environmental Protection, for property inspections, for delegation to a municipality, for municipal action appeals, for penalties, civil action and liability for costs and for effect on other commonwealth laws or regulations and municipal ordinances. Provides several definitions. Prohibits land development within a riparian buffer area. Provides width requirements and distances. Authorizes impaired riparian buffer restoration. Provides exemptions for land development activity. Permits municipal authority to enact a local land use ordinance to protect, preserve and restore riparian buffers. Mandates a riparian buffer ordinance adopted by a municipality shall conform to this act. Provides for existing ordinances and variances. Permits inspections by municipalities. Establishes enforcement. Creates powers and duties of the department. Authorizes the department to make property inspections and violation notices. Permits the department to delegate authority to a municipality. Establishes penalties. Explains that if a provision of this act or regulation or ordinance authorized by this act is declared invalid or unconstitutional by a court of competent jurisdiction, the validity of the remainder shall not be affected by the invalidity or unconstitutionality.

Referred to House Environmental and Natural Resource Protection Committee, 2/20/2025

SB352 RE: Dam Safety and Encroachments Act Exemption for Farmers (by Sen. Michele Brooks, et al)

Amends the Dam Safety and Encroachments Act (Act 325 of 1978) to exempt farmers who clear streams of debris on their property from the cumbersome permitting process required by the Act and its corresponding regulations.

Referred to Senate Environmental Resources and Energy Committee, 2/26/2025

HB513 RE: Updating the PA State Plane Coordinate System (by Rep. Eric Davanzo, et al)

The Pennsylvania State Plane Coordinate System Act provides for Pennsylvania State Plane Coordinate System, for notation requirements and for duties of State Geospatial Coordinating Board; and repeals the act entitled “An act to describe, define, and officially adopt a system of coordinates for designating the positions of points on the surface of the earth within the Commonwealth of Pennsylvania” insofar as it is inconsistent with this act. Asserts the most recent system of plane coordinates based on the National Spatial Reference System known as the State Plane Coordinate System shall be adopted and known as the Pennsylvania State Plane Coordinate System, the parameters to be defined and published by the National Geodetic Survey. Directs the Pennsylvania State Plane Coordinate System to be comprised of a single zone with full coverage of the commonwealth, for statewide geospatial datasets, and a set of smaller regional zones, established by the National Geodetic Survey, with the same amount of coverage, for engineering or surveying projects. Asserts the plane coordinates of a point on the earth’s surface be expressed by two distances, known as the east or x-coordinate and the north or y-coordinate, in meters or international feet and that any document using coordinates from the Pennsylvania State Plane Coordinate System must contain specified information. Directs the State Geospatial Coordinating Board to give notice to the Legislative Reference Bureau for publication upon the release of the State Plane Coordinate System 2022. Asserts this act does not prohibit appropriate use of other geodetic systems. Sections 8 and 11 of this act are effective immediately. The remainder of this act is effective upon publication of the notice under Section 8.

Referred to House Intergovernmental Affairs and Operations Committee, 2/5/2025

SB309 RE: Ensuring Competition in UCC Enforcement (by Sen. Daniel Laughlin, et al)

Proposes an amendment to the Pennsylvania Construction Code Act, aimed at enhancing fairness and choice for property owners in municipalities that enforce the Uniform Construction Code (UCC) through third-party agencies. Requires municipalities utilizing third-party agencies for UCC enforcement to contract with at least two certified agencies, ensuring property owners have a choice. Additionally, the legislation provides a waiver option for very rural municipalities that can demonstrate they are unable to contract with a second agency.

Referred to Senate Labor and Industry Committee, 2/26/2025

HB723 RE: Eliminating State Subsidies for Union Busting (by Rep. John C. Inglis III, et al)

amends the tax code to prohibit state agencies from awarding tax credits to entities that have been found guilty of any federal or state labor violation in the previous 10 years.

Referred to House Finance Committee, 2/25/2025

SB315 RE: Career and Technical Education Equipment Grant Funding Fix (by Sen. Lynda Schlegel Culver, et al)

Reintroduction of Senate Bill 1342  of 2023-24 session. Amends the School Code to provide more predictability regarding Career and Technical Education Equipment Grant Funding.

Referred to Senate Education Committee, 2/26/2025