H1401B2610A04272 NAD:CDM 10/23/17 #90 A04272

AMENDMENTS TO HOUSE BILL NO. 1401

Sponsor: REPRESENTATIVE BENNINGHOFF
Printer's No. 2610

1 Amend Bill, page 1, line 11, by inserting after "TAX"

2 , for unconventional natural gas air quality protection and for
3 environmental permitting reform
4 Amend Bill, page 28, line 30, by striking out "AN ARTICLE"
5 and inserting
6 articles
7 Amend Bill, page 36, by inserting between lines 5 and 6
8 Section 2404.1. Issuance of permit.
9 (a) Operations.--Notwithstanding any other provision of law,
10 a permit application to undertake an activity related to
11 unconventional oil and gas development which has not been denied
12 by the department within the applicable time period established
13 for review shall be deemed approved. If the review period for
14 the permit has been extended for cause, the department shall
15 provide a refund of the fee to the applicant. If the department
16 has notified the person of deficiencies with the application,
17 the period of time from the date of the receipt of the
18 deficiencies to the date of the receipt of the person's response
19 shall toll the applicable time period established for review.
20 Only two tolling periods shall be authorized.
21 (b) Construction.--Nothing under this section shall be
22 construed to relieve a person who commences activity under this
23 section from complying with each law pertaining to the activity
24 for which the permit is sought.
25 (c) Definitions.--As used in this section, the following
26 words and phrases shall have the meanings given to them in this
27 subsection unless the context clearly indicates otherwise:
28 "Applicable time period established for review." As follows:
29 (1) For a well permit required under 58 Pa.C.S.
30 3211(e) (relating to well permits), within:
31 (i) forty-five calendar days of submission; or
32 (ii) sixty calendar days of submission if the review
33 period has been extended for cause.
34 (2) For a general air quality permit, within 30 calendar
35 days of submission.

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 1 (3) For an earth disturbance permit as required under 25
2 Pa. Code 102.5 (relating to permit requirements), within:
3 (i) fifty-three business days of submission; or
4 (ii) twenty-four business days of submission for an
5 expedited application.
6 Amend Bill, page 36, by inserting between lines 11 and 12
7 ARTICLE XXIV-A
8 UNCONVENTIONAL NATURAL GAS AIR QUALITY PROTECTION
9 Section 2401-A. Definitions.
10 The following words and phrases when used in this article
11 shall have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Department." The Department of Environmental Protection of
14 the Commonwealth.
15 "Temporary activity." Well site and access road preparation,
16 pad construction, drilling and well completion.
17 Section 2402-A. Air quality permits for unconventional natural
18 gas well sites.
19 (a) Publication.--Not earlier than December 31, 2017, the
20 department shall submit to the Legislative Reference Bureau for
21 publication in the Pennsylvania Bulletin each proposed final
22 General Plan Approval and/or General Operating Permit for
23 Unconventional Natural Gas Well Site Operations and Remote
24 Pigging Stations and each General Plan Approval and/or General
25 Operating Permit for Natural Gas Compression Stations,
26 Processing Plants and Transmission Stations modified as a result
27 of the "extension of the comment period" set forth at 47 Pa.B.
28 1235 (February 25, 2017) or as a result of a subsequent
29 extension period.
30 (b) Consideration.--Within 14 legislative days following
31 publication of the proposed final permits under subsection (a),
32 the Air Quality Permit Advisory Committee shall consider each
33 permit and shall vote whether to approve or reject the proposed
34 permit. The following shall apply:
35 (1) If a majority of the Air Quality Permit Advisory
36 Committee votes to disapprove a proposed final permit, the
37 department shall revise that proposed final permit and do the
38 following:
39 (i) review and consider the reasons for disapproval
40 and modify the proposed final permit; and
41 (ii) resubmit the new version of the proposed final
42 permit to the Air Quality Permit Advisory Committee
43 within 14 legislative days.
44 (2) If a majority of the Air Quality Permit Advisory
45 Committee votes to approve a proposed final permit, the
46 following shall apply:
47 (i) The department shall submit the approved permit
48 to the Legislative Reference Bureau for publication in
49 the Pennsylvania Bulletin.

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 1 (ii) The permit shall take effect upon publication
2 in the Pennsylvania Bulletin.
3 (c) Applicability.--The requirements of a General Plan
4 Approval and General Operating Permit for Unconventional Natural
5 Gas Well Site Operations and Remote Pigging Stations shall not
6 apply to any of the following:
7 (1) A natural gas well site which:
8 (i) commenced production prior to the date of
9 publication under subsection (b)(2)(ii); and
10 (ii) continues to meet the requirements to retain
11 that exemption.
12 (2) Temporary activity.
13 Section 2403-A. Air Quality Permit Advisory Committee.
14 (a) Establishment.--The Air Quality Permit Advisory
15 Committee is established.
16 (b) Composition.--The Air Quality Permit Advisory Committee
17 shall consist of the following:
18 (1) One member appointed by the Governor.
19 (2) The following members of the Senate:
20 (i) One member appointed by the President pro
21 tempore of the Senate.
22 (ii) One member appointed by the Majority Leader of
23 the Senate.
24 (iii) One member appointed by the Minority Leader of
25 the Senate.
26 (3) The following members of the House of
27 Representatives:
28 (i) One member appointed by the Speaker of the House
29 of Representatives.
30 (ii) One member appointed by the Majority Leader of
31 the House of Representatives.
32 (iii) One member appointed by the Minority Leader of
33 the House of Representatives.
34 (c) Appointments.--Appointments to the Air Quality Permit
35 Advisory Committee shall be made within 60 days of the effective
36 date of this section.
37 ARTICLE XXIV-B
38 ENVIRONMENTAL PERMITTING REFORM
39 Section 2401-B. Definitions.
40 The following words and phrases when used in this article
41 shall have the meanings given to them in this section unless the
42 context clearly indicates otherwise:
43 "Department." The Department of Environmental Protection of
44 the Commonwealth.
45 "Licensed professional." An individual licensed by the
46 Commonwealth as a professional landscape architect, engineer,
47 land surveyor or geologist.
48 "Permit." A written authorization issued by the department
49 or an authorization under a delegated agreement by the
50 department to engage in a regulated activity, including, but not
51 limited to, a new permit, permit renewal, permit amendment,

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 1 permit modification, permit transfer, change of ownership, plan
2 approval or registration under a general permit. The term does
3 not include a certification or license.
4 "Permit application." The document submitted to the
5 department by an applicant that, if approved, grants a permit to
6 an applicant.
7 "Permit decision." The issuance or denial of a permit.
8 "Permit decision delay." The failure of the department to
9 issue a permit decision within:
10 (1) the time period specified by statute or regulation
11 or by the relevant time period established under 4 Pa. Code
12 Ch. 7a Subch. H (relating to permit decision guarantee for
13 the Department of Environmental Protection); or
14 (2) 30 days after the submission of a permit application
15 or request for plan approval or other authorization when no
16 time period is specified by statute, regulation or 4 Pa. Code
17 Ch. 7a Subch. H.
18 "Permit program." The operation and management of permits
19 within a specific or categorical department, statutory or
20 regulatory program.
21 Section 2402-B. Annual performance review by department.
22 Within 30 days after the effective date of this section, and
23 by each January 31 of each year thereafter, the department shall
24 review all permit decisions and permit decision delays during
25 the immediately prior calendar year and submit a report of
26 findings to the chairperson and minority chairperson of the
27 Environmental Resources and Energy Committee of the Senate and
28 the chairperson and minority chairperson of the Environmental
29 Resources and Energy Committee of the House of Representatives.
30 Section 2403-B. Third-party review under permit program.
31 (a) Program.--Within 30 days of the completion of the
32 initial performance review under section 2402-B, the department
33 shall have one year to create and implement a program to utilize
34 third-party licensed professionals to review permits, plan
35 approvals or other authorization applications and make permit,
36 plan approval or other authorization decisions.
37 (b) Transfer.--The department shall transfer all permit
38 reviews and permit decisions to third-party licensed
39 professionals in accordance with the program created under
40 subsection (a) for all permitting programs for which the annual
41 performance reviews under section 2402-B have identified permit
42 decision delays with more than 25% of all applications
43 submitted. In accordance with this paragraph, the department
44 shall continue to receive all permit applications and refer each
45 permit application to a third-party reviewer at random.
46 (c) Fees.--Fees collected by the department from permit
47 applications in the permit program shall be remitted to the
48 respective third-party licensed professionals with whom the
49 department has contracted for the permit program.
50 (d) Agent of Commonwealth.--A third-party licensed
51 professional with whom the department has contracted for the

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 1 permit program shall be duly recognized as an agent of the
2 Commonwealth for the permit program to resolve each permit
3 application which is subject to a permit decision delay and
4 permit decisions under subsection (e).
5 Section 2404-B. Annual reports.
6 No later than January 31 of each year, the department shall
7 submit to the General Assembly an annual report which, at a
8 minimum, shall contain the following information from the
9 immediately prior calendar year:
10 (1) The number of permit applications received.
11 (2) The number of permit applications reviewed by the
12 department and third-party licensed professionals with whom
13 the department has contracted for the permit program.
14 (3) The average time frame for permit decisions by the
15 department and third-party licensed professionals with whom
16 the department has contracted for the permit program.
17 (4) The number and average workload of third-party
18 licensed professionals with whom the department has
19 contracted for the permit program.
20 (5) The number and average workload of staff members
21 within the department reviewing permit applications,
22 organized by each regional office of the department.
23 Section 2405-B. Rules and regulations.
24 The department shall promulgate rules and regulations
25 necessary to implement the provisions of this article.
26 Regulations established under this section shall ensure that no
27 conflicts of interest exist between permit applicants and permit
28 reviewers.
29 Section 2406-B. Applicability.
30 This article shall apply to all permits required to comply
31 with statutes and regulations administered by the department.
32 Section 2407-B. Effect of article.
33 Nothing in this article shall be construed to limit or
34 otherwise alter the department's authority to revoke a permit
35 for failure to comply with the laws of this Commonwealth.

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