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DNREC outlines FY27 priorities, permitting reforms and how RGGI/ACP funds are used

Joint Finance Committee (JFC) · February 17, 2026

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Summary

Department of Natural Resources and Environmental Control presented a FY27 orientation emphasizing permitting reforms, park fee increases, using RGGI proceeds for weatherization and Sustainable Energy Utility programs, and ASF authority adjustments; the department also signaled plans for freshwater wetlands regulation and general permits to speed approvals.

Secretary Patterson presented the Department of Natural Resources and Environmental Control’s FY27 governor‑recommended budget and a series of administrative reforms to the Joint Finance Committee on Feb. 18.

Patterson said DNREC is roughly 25% general‑fund supported and largely sustained by appropriated special funds and federal funds; he described targeted increases of ASF spending authority to align revenue and spending (for example, park fees, boat‑ramp grants and scrap‑tire cleanup) and a $1.6 million addition to reflect statutory salary policy implementation.

Permitting reform was a central theme. DNREC reported mapping a subaqueous permit process that included 89 steps and 37 handoffs and said new online dashboards, digitized permit applications and a suite of general permits (floating docks among the first) are intended to reduce delays. Patterson said the wetlands legislation under discussion would create a new freshwater wetlands permitting program, and DNREC plans to use qualified consultants and certified professionals to carry out portions of fieldwork and assessments to speed processing while maintaining standards for endangered species and habitat protection.

On energy and funding, Patterson and Deputy Secretary Dana Cobb explained the allocation of RGGI auction proceeds: 65% to the Sustainable Energy Utility (SEU), 10% to weatherization programs, 5% to LIHEAP and the remainder to a greenhouse gas fund and administration. They clarified that alternative compliance payments (ACP) under the renewable portfolio standard are a cost‑cap mechanism—not a fine—and that ACP receipts have been directed to low‑income energy assistance and renewable/efficiency projects (statute now directs 30% of ACP to LIHEAP).

Parks and operations: DNREC described a first park fee increase in a decade to address operating cost growth (estimated $2.6 million additional revenue). Patterson said the parks survey of 1,200 respondents showed 68% agreed the increase was justified after seeing operational needs, and he emphasized the funds will be used for staffing and maintenance.

Other program notes: Patterson identified wins including sand‑bypass plant testing, weatherization of about 400 homes, brownfields work and a successful bog‑turtle recovery partnership with state parks and the Brandywine Zoo that increased observed turtles from roughly 25 to about 65.

What’s next: The committee sought further detail on ASF authority adjustments and the fiscal implications of standing up a freshwater wetlands program. DNREC committed to present implementation costs and remain engaged with the committee on permitting reform and fee‑driven spending authority.