Key Permitting Reforms in Pennsylvania’s 2025–2026 Budget

On November 12, 2025, Governor Josh Shapiro signed into law the Commonwealth’s Fiscal Year 2025–2026 budget (Senate Bill 160) and accompanying fiscal-code amendments (House Bill 416, now Act 45 of 2025) (the Budget Bill). A central feature of the Budget Bill is a comprehensive package of permitting reforms aimed at streamlining, expediting and enhancing transparency in permitting processes across all state agencies, with particular significance for environmental permits administered by the Pennsylvania Department of Environmental Protection (DEP).

The reforms begin with broad new transparency and tracking requirements applicable to every state agency. Within 90 days of the budget adoption, each agency must publish a publicly accessible list of all permits it administers and update that list at least annually. Agencies must also implement an online permit-tracking system that displays the status and processing time of each application, the key dates associated with each stage of review, estimated completion times for pending portions of the process and the identity of the employee assigned to the application. Agencies are further required to notify applicants within five days of receipt and direct them to the tracking system. This across-the-board transparency mandate is intended to reduce uncertainty, improve accountability and eliminate the historical lack of visibility that applicants often experienced during the permitting process.

The Budget Bill also expands the scope of the previously adopted Streamlining Permits for Economic Expansion and Development (SPEED) Program, which allows certain DEP permits to be reviewed by qualified third-party professionals. The new law adds several categories of DEP permits to the SPEED-eligible list, including storage tank site-specific installation permits, short-term construction mining general permits and concentrated animal feeding operation (CAFO) permits. The expansion of SPEED opens the door for faster processing in a broader range of sectors, including energy, manufacturing, mining, agriculture and development.

In addition to transparency and SPEED expansion, the Budget Bill creates firm statutory review deadlines—paired with “deemed approval” provisions—for certain air and water permits. For general plan approvals and general permits issued under the Air Pollution Control Act (APCA), DEP must identify technical deficiencies within 20 days of application submission. If the applicant corrects all deficiencies within 25 days of its original application, DEP must issue a final decision within 30 days of the original submission, subject only to a possible applicant-approved extension of up to five additional days. If DEP fails to act within that 30- to 35-day window, the application is deemed approved as a matter of law. In short, reviews for air quality permits must be completed in 30 days, with a limited five-day deficiency period, or a maximum 35-day window before deemed approval.

A similar structure applies to renewals of certain general permits under the National Pollutant Discharge Elimination System (NPDES). DEP must identify technical deficiencies within 40 days of submission, and if the applicant addresses those deficiencies within 50 days of the original submission, DEP must issue a final determination within 60 days of the original submission unless extended at the applicant’s request. Failure to meet the deadline results in automatic deemed approval. The affected categories include NPDES general permits for industrial stormwater discharges, small-flow treatment facilities, petroleum-contaminated groundwater remediation systems and combined sewer system wet weather overflows. This provision does not apply to new NPDES general permits but just to renewal permits. These deemed-approval provisions represent a substantial acceleration compared to prior review timelines and impose meaningful consequences if DEP fails to act within the established timeframes.

The implications for regulated entities are significant. Applicants will benefit from improved certainty, predictability and speed—three factors that have historically posed risks to project development and financing. The new public-facing tracking tools will give businesses unprecedented visibility into the status of their applications, reducing the risk of delays that previously resulted from administrative bottlenecks or ambiguous timelines. The broader scope of SPEED also provides new opportunities for expedited third-party review across a wider array of industries. At the same time, the reforms heighten the importance of submitting complete and technically robust applications. Because the expedited framework includes rapid-response requirements—and, in some cases, automatic denials if deficiencies are not addressed promptly—applicants must be prepared to respond quickly and comprehensively to any DEP communications.

Taken together, these reforms represent a structural modernization of Pennsylvania’s permitting system. Because the provisions are embedded in the fiscal code rather than issued through executive directive, they provide longer-term stability and predictability for businesses planning projects in the Commonwealth.

Clients should immediately begin reviewing upcoming or pending applications to determine whether they are now subject to SPEED eligibility or deemed-approval timelines. Applicants should ensure internal processes are in place to prepare complete submissions and respond promptly to deficiency notices. Once agency lists and tracking portals are published, clients should monitor them regularly to assess processing times and identify potential delays. Communicating these changes to project partners, contractors, lenders and investors will also be essential, as the accelerated review timelines may affect scheduling, financing and risk-management strategies.

Co-author Leonard Altieri, associate, and Doug Schleicher, partner, are members of the zoning & land use practice group at Klehr Harrison.