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Environmental Update -- DEP Reorganizes to Address Brownfields and Marcellus Shale; New Stormwater General Permit Finalized

September 2011
Paul Bruder, Esquire

The Department of Environmental Protection is changing the agency's organizational structure to more effectively regulate Marcellus Shale natural gas drilling and to streamline the administration or environmental cleanups and brownfield development.

“These organizational changes will enhance the department’s ability to protect Pennsylvania’s air, water and land, and also will result in a consistent and predictable regulatory system,”  DEP Secretary Mike Krancer said.

Marcellus Shale – Long-time DEP attorney Scott Perry will serve as the new Deputy Secretary of Oil and Gas Management to manage Marcellus Shale drilling activities modeled in large part on the successful surface mining regulatory structure.  Permitting, inspection and compliance activities will still take place in the regional offices, but will be managed by a Bureau of District Oil and Gas Operations in Harrisburg rather than reporting to one of DEP's six Regional Directors. A separate Bureau of Oil and Gas Planning and Program Management reporting to the new Deputy will develop the policy and regulations needed to manage regulatory activities.

Rhoads & Sinon’s Environmental, Energy and Natural Resources attorneys applaud the new structure of the Oil and Gas organization at DEP.  Having worked with DEP on behalf of multiple clients related to oil and gas development and support industries, we recognize the importance of centralized decision-making and consistent application of the laws and regulations that govern these industries. 

Brownfields -- The positions of Deputy Secretary for Community Revitalization and Local Government Support and the Deputy Secretary for Energy and Technology Development are to be eliminated and their responsibilities assigned to other parts of the agency.  The primary responsibility for brownfields redevelopment will be moved to a new Bureau of Environmental Cleanup and Brownfields under a slightly renamed Deputy for Waste, Air, Radiation and Remediation.  That position will be filled by Denise Brinley, who holds the current position of Deputy Secretary for Community Revitalization and Local Government Support.  Under the prior organization, cleaning up waste sites under the state Hazardous Sites Cleanup Act, the federal Superfund Program and the Storage Tank Program were artificially separated from brownfields cleanup in two different offices. This change consolidates similar programs in the same office to improve efficiency.

At a recent conference to discuss brownfield development, Secretary Krancer highlighted his priority to redevelop brownfield sites across Pennsylvania. Citing Pennsylvania’s rich industrial history, Krancer touted the opportunities available for redevelopment of abandoned sites. “Brownfields redevelopment is a win-win because we get an economic engine, which revitalizes communities and environmental cleanup at the same time.” Krancer said. “Our program is the best in the nation, and this conference is very timely because our agency’s reorganization puts brownfields redevelopment back in the spotlight as an important policy priority in Pennsylvania.”

The Rhoads & Sinon Environmental Group has been at the forefront brownfield remediation projects and re-use of abandoned sites, so we are happy to see that these stated priorities are becoming reality.

Municipal Stormwater -- DEP also recently issued its revised Municipal Stormwater Permit, a move that it hopes will improve local control and flexibility in dealing with stormwater runoff.  PAG-13, a general permit for municipal separate storm sewer systems (“MS4”) will be renewed, effective March 2013, with revisions that should allow local governments to more effectively manage stormwater runoff.

EPA recently withdrew many of its previous objections to this permit.  Regulated municipalities should now have greater flexibility to develop and implement their own Chesapeake Bay plans, which can now account for local conditions and allow for local decision-making.  DEP Secretary Krancer said that “municipalities will also be able to rely on the state’s existing robust post-construction stormwater control requirements to address their construction and post-construction related control measures. The wait and the work was worth it, and we convinced EPA that our approach was the legal one and the right one for Pennsylvania”.

The present PAG-13 was set to expire in June 2012, but DEP provided a nine-month extension in order to allow municipalities time to assess their storm sewer systems and apply for the revised permit while the state’s discussions with EPA continued. Municipalities must now apply six months prior to the termination of their present PAG-13 permit, which will expire in March 2013.

As with the previous edition of the general permit, municipalities must develop minimum control measures in six categories -- public outreach and education; public participation and involvement; illicit discharge detection and elimination; construction activities greater than one acre; post-construction in new and redeveloped areas; and good housekeeping for municipal operations.

This comes on the heels of recent enforcement actions taken by EPA against dozens of central Pennsylvania MS4 permittees, in which detailed information was requested, and in some cases detailed inspections were performed.  Some of those inspections then resulted in orders to municipal entities to change their stormwater management programs to better comply with existing permit requirements, and threats of significant fines.  At a time when municipal staff and dollars are already stretched thin, drastic changes to such programs and civil penalties may affect municipal operations in other areas unrelated to stormwater.

Rhoads & Sinon counsels many municipalities statewide in stormwater management and regulatory compliance, and we are fully prepared to help those entities understand the new PAG-13 requirements moving forward.

For more information or assistance on issues related to the above topics, please contacts Paul J. Bruder, Chair of Rhoads & Sinon’s Environmental Practice Group, at 717-233-5731, or email Paul at:  pbruder@rhoads-sinon.com.