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Senate finance panel reviews DEQ budget; secretary highlights waste‑tire cleanup and permitting changes
Summary
Senate Fiscal Services and Department of Environmental Quality presented the agency's FY26 executive budget. DEQ said fees and self‑generated revenue account for most of its funding, Volkswagen settlement disbursements are winding down, and $1.3 million was added for legacy waste‑tire cleanup including work at Cottonport.
The Senate Committee on Finance heard an overview of the Louisiana Department of Environmental Quality's FY26 executive budget and a progress report on legacy waste‑tire sites on May 21. Mark Barnes of Senate Fiscal Services gave the budget briefing, and DEQ Secretary Aurelia Giacometto outlined outreach and cleanup steps the agency is taking.
Barnes said the department's recommended FY26 budget reflects long‑term growth in dedicated funds: "The change from actual to recommended for FY '18 through FY '26 is an increase of 41.9%" and fees and sales generate the majority of DEQ's funding. He told the committee that dedicated revenues make up 69% of the department's budget, with federal funds accounting for roughly 13%.
Giacometto said DEQ is working to keep permitting capacity aligned with planned private investment and cited two recent executive orders from the governor directing permit modernization. "We really are on the cusp of that southern renaissance," she said, and added the department is positioning itself to support large projects while maintaining environmental review.
The committee pressed DEQ on waste tires, a recurring issue for legislators. Giacometto described a series of six regional town halls DEQ held in 2024 to document how illegal dumping and regulated waste tires affect parishes and municipalities differently. The secretary said DEQ will issue a grant to provide relief to local governments and that the FY26 recommendation includes $1.3 million moved to address legacy waste‑tire piles, including the Cottonport site where a 2022 fire prompted evacuations. She said state teams worked with banks and other agencies to clear liens and make cleanup possible: "We have worked with a couple of the other state agencies where there's liens on the property to get those removed, because ultimately we want to be able to get the site cleaned up."
Senators discussed potential incentive models to encourage tire collection, comparing existing disposal‑fee reimbursement to deposit models used for beverage containers. Committee members asked whether local collection points and tracking (name/license plate) could be used to support reimbursement programs; DEQ replied that parish drop‑off sites and four state‑approved tire processors currently handle collected tires, and that the agency is exploring additional processing technologies and value‑creation strategies.
Barnes also told the committee DEQ recommended lower budget authority for a number of nonrecurring items in FY26, including about $7.6 million in reduced nonrecurring carryforwards and roughly $3.3 million less in Volkswagen settlement contracting as those projects near completion.
The presentation closed with DEQ staff and senators agreeing to continue discussion about local collection strategies and potential grant details.
A follow‑up: DEQ and Senate Fiscal staff said more detailed grant and program language will be developed before allocation; specifics of any reimbursement program were not provided in the hearing.
