 Thank you all for being here. I just want to make a few comments then you're going to hear from Secretary McDonnell and Secretary Dabbin and then we'll take questions on topic from the podium and I'll take any off topic questions if there are any off to the side here So when I was running for governor I traveled around the state and I met with citizens met with businesses to hear what they wanted to see from their government I wanted to hear about the issues they saw so that when I became governor I was ready to tackle the challenges so that we could build a more responsive government that worked for everybody One of the criticisms I heard was around permit backlogs And long wait times that people had encountered with DEP So when I became governor I tasked DEP with looking at ways to reduce backlogs and reduce wait times in a responsible fashion so that we could meet the ambitious goals of the permit decision guarantee while still providing Robust environmental protections for our citizens To get at the solution we had to first identify the problem and the problem to me was clear For the last ten years our legislature and prior administrations had cut the department drastically Even as that department had been given drastically new responsibilities Just in the last ten years even while the Marcello shale industry was growing and beginning beginning to create economic opportunity for the Commonwealth DEP staff had been reduced by 43 percent This meant that a huge new piece of work was being placed on a significantly fewer smaller number of staff The legislature and prior administrations were attempting to cut the department while asking that to do more and to do its work more quickly Now when I was in business I never would have tried this kind of gimmick because it really doesn't work You can't cut staff and then ask them to do twice the work in half the time You cannot cut your way to greater efficiency If you're all if all all you're doing is cutting the number of people that do the same amount of work And you don't have to be in business to know that that doesn't work anywhere So prior administrations and the legislature put the department in a no-win situation And then heaped blame on the department when they couldn't make this impossible situation work So we all know what this led to Hundreds of days to get simple development permits Thousands of permits sitting in backlogs and permit reviewers with workloads. They could never meet This kind of thinking doesn't make any sense and it hasn't made sense. It doesn't make sense for our industries It doesn't make sense for the environment. It doesn't make sense for the people of Pennsylvania who have a Constitutional right to clean air and pure water. So when I became governor, I knew we had to improve the permitting process So instead of forcing cuts or sanctions on them as prior administrations had done I listened to the department about what their needs were I Asked how we could responsibly reduce permit timeframes and backlogs without Risking the protection of our environment and I tasked Secretary McDonald and his staff with finding new strategies To cut down on wait times and backlogs while still doing the critical work of protecting our environment and this approach has worked Secretary McDonald implemented a number of changes to the permit review process that he piloted with the Southwest Regional office and the results in that office have been remarkable Through a series of common sense steps. This pilot has helped DEP reduce wait times and backlogs we've seen a 220 days 220 days Reduction in wait times for some common development permits We've seen the number of overdue applications for well permits under review reduced from almost 300 to around 30 permits We've seen drastic reductions in the number of permits awaiting review DEP has made this reduction possible in a number of ways first by auditing the performance of the Southwest District office so it could get a sense of where the greatest needs are It did this by rotating pending permits to regions with the capacity to review additional applications It reallocated positions within the office of oil and gas management By targeting new hires in key permit review areas and it did this by providing permit reviewers with additional training to Standardize permit review processes While this pilot was ongoing DEP has also worked to attack their department-wide backlog Head on by devoting staff time and by elevating permit reviews And since the summer of 2017 we've been able to achieve an over 6,000 permit reduction in the department-wide backlog This progress has been unparalleled in DEP's history and it has been felt throughout the Commonwealth We did it by applying a common-sense approach to the problem And that is rather than by punishing the very people were asking to do this critical work We're actually giving them the help they need While we've seen drastic reductions in wait times and backlogs We still have more work to do to meet the goals of the permit decision guarantee So in the coming year we'll be applying the lessons We've learned in our pilot program in the Southwest to the rest of the state so that those incredible results can be replicated elsewhere And we still will also be taking a number of additional steps that will help us cut down on backlogs and wait times Among those steps we're going to expand our e permitting system to include a number of key development permits Reducing the time spent trading paper between the DEP and the industry We're going to create new analytics program that helps managers track progress on open permit applications Allowing them to know how long permits have been in the system By releasing new review processes and registration practices for key development product permits So that we can clarify what is needed to complete an application and make it easier to apply for these permits And supporting common-sense legislation that will bring the permit process in line with the industry It is actually engaged with such as extending permit terms Allowing for well flexibility and allowing multi-well pad permitting These steps will help us meet our broader goals by making it much easier to track permits As they move through our system while making it much simpler to apply for and to use these permits While these steps are incredibly important We also know that we have a staffing issue at the department after years of misguided cuts that we must work to remedy And that's why in this year's budget. I am proud to announce that I will be proposing and fighting for funding for an additional 35 positions at DEP so that we can begin to rebuild the department after a decade of cuts This is a step that hasn't been taken in a long time and frankly. It's long overdue We must turn the page on a decade of funding cuts and staff losses that led to the problems And that begins with bringing people back to do this incredibly important work I believe that with these changes in place and through the expansion of the successful permitting pilot program We can drastically reduce permit time frames and eliminate the backlogs And we believe that these changes will help DEP to meet the goals of the permit decision guarantee by the end of 2018 while keeping in place strong protections for the environment Our approach has been incredibly successful already We've proven that through targeted investment and better management practices We can make the permitting process work better for everyone for every interest And we've taken a smart approach rather than the misguided and backwards approach that has been taken in Harrisburg in this town for decades We do not need staff cuts at DEP and we don't need to attack the people who are actually doing the work We've tried all that and it has only led to giant backlogs and long wait times and not a better environment What this process needs and what we've proven works are common-sense solutions that actually help the department work better We'll continue to make progress and make this process more efficient for everybody involved So I want to thank secretary McDonald there you are For your leadership on this issue and for your work in helping to make DEP work smarter Through a stronger and more efficient permitting process We can protect our God given natural resources while strengthening our economy and now to talk about this further I'd like to introduce secretary Patrick McComber Secretary Thank You governor Wolf Honored to stand here today with governor Wolf to describe a core commitment of governor government that works That is seeing a problem and working through the hard challenges to address it fully The announcement marks the culmination of nearly a year of work at the department That began with a challenge from the governor to analyze DEP's permitting program from the ground up and to recommend Steps that could be taken to improve our processes and performance without compromising Enforcement of critical environmental protections that are the department's mission and duty to the residents of Pennsylvania At the outset of the process, we knew that if we analyze the problem honestly and transparently We could develop meaningful changes that translate into measurable improvements in our processes and our performance In non-technical terms an approved permit is a mutually agreed upon commitment between an applicant and the common Wealth that outlines highly specific terms the in highly specific terms the expectations guidelines and obligations associated with a permitted activity To give you a visual reference one permit can be multiple banker boxes of forms maps charts and data The department receives and reviews over 30,000 permit applications in a given year as Governor Wolf said we at DEP need to be efficient diligent and comprehensive in our review And we need to take advantage of the most current technology in order to help reduce the time it takes It takes us to take final action on applications at DEP We have instituted initiatives that will make meaningful change that the governor is looking for We focused our improvements both internally and externally Internally we started with the backlog We audited all of the permits in our centralized electronic system known as e-facts and Discovered an unreasonable number of permits that were not tracked all the way through to completion This can create confusion about where in the process permits stand permit application stand all told since the summer of 2017 we've corrected and made current our internal permit tracking system while concurrent concurrently Reducing the active perm pending permit applications The result is a status change in more than 6,000 permit applications and a material reduction in pending permit applications But we have to improve how we handle the permit applications that remain in our system with more coming in every week So we audited our processes and have reorganized to ensure resources are being used efficiently specifically we're restructuring our oil and gas management permitting across Permitting programs across three district offices Williamsport Pittsburgh and Meadville that review and issue well and surface permits With a statewide management structure. We will equalize the permit review workload and improve permit review consistency Many of you have heard from legislators and industry applicants about concerns with willing gas permits under review at our Southwest regional office We look closely and seriously at that complaint and agreed that there were significant issues I think applicants are already seeing the results of our work with that office Erosion and sediment control general permits, which are key development permits have been taking more than 300 days to process on average We filled important vacancies in the review chain and Implemented a pilot project that improved and clarified the process I'm pleased to say that we've reduced the average wait time for those permit reviews to 85 days We're trying to accomplish several expectations with this initiative Maintain our adherence to protecting public health public health in the environment Maximize our efficiency and focus on consistency and forget predictability across the Commonwealth It is important to note that the proposition of expedient permit review relies heavily on the receipt of a high quality product or application coming in So on the external side we are focused on helping applicants improve the quality of their submissions and clarify the requirements Contained in the regulations through clear concise and well-organized permit applications To help clarify what is needed in a permit application. We've developed several new and revised guidance documents We just published the final technical guidance on comprehensive environmental assessments for large-scale projects and our evaluating comments We've received on a draft technical guidance document for water quality certification process for interstate gas transmission pipeline projects I can't overemphasize the value of technology in this initiative DP has been handcuffed by a lack of resources to keep up technologically with the very industries that we regulate But thanks to Governor Wolf's mandates for efficiency. We've been able to modernize Significantly e-permitting has already been shown to reduce staff time and oil and gas staff anticipate a 30 percent decrease in permit Review times once their permit applications are moved into an electronic format later this year In the end our goal is a strong permit that holds the applicant accountable Not just for the quality of the permit But through our inspection and compliance processes for implementation of permit obligations Governor Wolf sets a high bar for all agencies and we will continue to accept his challenge by pursuing new initiatives and policies Which allow the department to fulfill that its mission more efficiently and effectively? I also want to thank the governor for recognizing that we need additional resources in order to do this essential job All of us at DEP thank the governor for his commitment to strengthening our agency and helping us rebuild after a decade of cuts That only led to larger backlogs and longer rate wait times His commitment to investing in additional staff for the department across all programs Shows that he recognizes the importance of what DEP does and he is committed to helping us to protect the environment of our Commonwealth While also making sure we're able to process permit applications based on their merit in a timely manner I must end by praising the staff at the Department of Environmental Protection who have embraced this initiative They have an unrelenting commitment to producing a permit review process that is efficient effective and most importantly Environmentally protective so with that I'll close and I'll turn it over to Secretary Dennis Davin from Department of Community and Economic Development for some comments Thank you. Good afternoon. Thank you Governor Wolf and Secretary McDonald for sharing this welcome news Since entering office Governor Wolf has dedicated himself to creating a government that works for Pennsylvania and what we're recognizing today is just one example The initiatives implemented at the Department of Environmental Protection at the governor's request and under Secretary McDonald's leadership Will undoubtedly have positive impacts for Pennsylvania's economy while demonstrating that the economy and Environment do not have to be at odds. I Command Patrick and his team for everything. They've already accomplished including reducing their permit backlog restructuring their oil and gas programs and reforming operations to streamline permit reviews From an economic development perspective these efforts will strengthen communities by empowering businesses Which create jobs and grow low grows local economies across the conma wall at the same time The permitting process preserves the environmental protection so vital to our collective future Governor Wolf's leadership has enabled us to strike that balance between aggressive economic development and job creation and firm commitment to our responsibility to the environment We have an unparalleled wealth of natural resources in Pennsylvania and the administration is dedicated to protecting these resources The streamlined review process allows for thorough reviews that preserve our environment while at the same time promise hope for jobs in stronger communities Reduced backlog time will allow businesses to navigate the permitting process Much more efficiently and this will increase our ability to attract and retain business across the Commonwealth instilling confidence That we can cut through the red tape and issue permits in a timely manner In fact DEP's pilot programs and innovative management strategies have already reduced time frames and backlogs in the oil and gas sector Consistent review processes and trusted timelines for permits through the permit decision guarantee more jobs for Pennsylvania So I applaud both Governor Wolf and DEP as they continue to pave the way for successful businesses and communities while ensuring That we remain good stewards of the environment We're excited to celebrate what has been accomplished so far and are even more excited to see what's coming next by increasing E-permitting activities improving analytics simplifying registration processes and hiring talented employees the Wolf administration will continue to protect our environment and Strengthen our economy in Pennsylvania. Thank you Thank you Secretary McDonald and thank you Secretary Davin now. We would be happy to answer any questions on topic Yes Yeah, I will give the general answer I'm going to turn to Patrick for the specifics, but the general answer is this whole thing is is an attempt to say we we want to protect our environment and The way you do that is not by dragging your feet It is not by making people really angry on the industry side With the time it takes to get permits We want them to live up to strict environmental regulations and our responsibility is if we make we want them to do that We've got to make sure that we do our job in getting their permits on a responsible timely and consistent basis We cannot do that if we continue to ravage the the department and reduce their workforce So this is an attempt to actually strengthen our ability to oversee The environment while at the same time doing what we promised we would do With those who want to do business in Pennsylvania Patrick. Do you want to talk more specifically? Sure, I the thing I'd point out is we've In particular with the budget cuts that we've had over the last 10 years to the general fund All of our programs are funded in different ways and in particular our water programs Are very reliant upon the general fund so when we talk about a lot of these development permits for example The water program is really what we're talking about and that's where we've seen these cuts So Receiving these 35 positions will allow us to start building our capacity back up What's that? Not not exclusively in the water program We have some within the air program some within our waste program as well But but most of them are water related. Yes Well, we what we're doing is taking the control technique guidelines that the federal government developed developed and We've brought that conceptually to our air quality technical advisory committee Looking forward to bring the those regulations in the interim for for new sites. We do have the draft General permit 5 and 5a that we've released and we'll be looking to finalize here later this quarter Yeah, but Patrick maybe you want to talk Sure, I think we're coming close on the drinking water fee package in particular, which is critical for us Given both the importance of drinking water for public health but also the importance of Making sure we're meeting our state and federal obligations We have some additional fee packages that we've been looking at again within our water quality area our air quality area and within the oil and gas area, which is The that staff is a hundred percent reliant on our permit application fees I'm not sure the timing of that that's something we can follow back up with It will be about two and a half million dollars Yes Yes Above our cost to carry us any other questions Okay, thank you very much. I'll take off topic questions over here