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(July 2005) After more than a year of debate, a Green Ribbon Commission, and a voter-approved bond referendum for $625 million, a spending and repayment plan has been given "the green light" for the Growing Greener II program. IssuesPA examined this environmental initiative.

What would we get for our $625 million?

House Bill 3 describes how the bond funds will be spent - and repaid. The bill was being held as part of the negotiated package of legislation - including the budget, the pay raise for legislators and administrative officials, and more.

The primary source of money for the Growing Greener II plan comes from $625 million in voter-approved bonds. Other sources include some federal funds and other money appropriated by the legislature.

Over six years, bond revenue would be distributed to a variety of programs aimed at protecting Pennsylvania’s environment including open space and farmland preservation, watershed protection, mine reclamation and support for environmental clean-up. The funds would be spent by various agencies:

Department of Environmental Protection: $230 million

• At least $60 million annually for acid mine drainage abatement and mine cleanup;
• Up to $10 million annually for the Energy Development Authority for advanced energy projects;
• Up to $5 million annually for cleaning up brownfields sites for industrial reuse.

Department of Conservation and Natural Resources: $217 million

• No less than $100 million for state parks and forests;
• $90 million for open space conservation;
• No more than $5 million for open space preservation

Department of Agriculture: $80 million for farmland preservation.

Department of Community and Economic Development: $50 million for Main Street and Downtown redevelopment, including improvements to water and wastewater infrastructure.

State Fish and Boat Commission: $27.5 million for capital improvements.

State Game Commission: $20 million for capital improvements.

Counties will receive $90 million for special county capital environmental projects. Each county will receive a flat amount based on its classification.

The allocation totals $715 million, an amount significantly higher than the $625 million in authorized borrowing. The difference will be made up from other funds such as the Alternative Fuels Incentive Fund or the Environmental Stewardship Fund.

How is the debt repaid?

The approved program uses no new taxes or fees, unlike Governor Ed Rendell’s original proposal that would have levied a higher tipping fee on municipal and solid waste and new fees on residual waste (mostly non-hazardous industrial waste).

The $625 million debt would be paid back with existing, continuing tipping fees. Of the approximately $90 million taken in annually by these fees, up to $60 million would be dedicated to repaying the debt. The remaining fee income will be used to clean up hazardous waste sites, historic preservation tax credits and grants, and reimbursement of the state General Fund for sales tax holidays for energy efficient appliances.

What does this mean for the future?

Spending on Growing Greener type programs will increase next year and continue at that higher level for the next six years. However, nothing is free. After the proceeds for borrowing run out, spending on these programs will drop considerably because the majority of present source of funding for Growing Greener, tipping fees, is now obligated to pay the debt service for the borrowed funds long after the spending stops.

Policymakers appear to have put off deciding on the longer term future of Growing Greener and environmental programs in Pennsylvania. The funds will pay for programs for six years or so -- while obligating spending for a much longer period of time.