Industry warns permit delays as public hearing opens on HB 5010, DOGAMI budget

Members of the Natural Resources Subcommittee held a public hearing Feb. 6 on House Bill 5010, the governor’s budget request for the Department of Geology and Mineral Industries (DOGAMI). Testimony ranged from industry opposition over permit backlogs and proposed fee increases to support from carbon-removal companies and labor representatives who said the funding could advance climate and energy projects.

The Oregon Concrete Aggregate Producers Association urged the subcommittee to reconsider elements of the proposal. "We are here to testify in opposition to the policy package that's been presented to you," said Rich Angstrom, president of the Oregon Concrete Aggregate Producers Association. He told the committee the proposal would increase DOGAMI staff from about 16 to 28 and "will triple the fees to the construction materials companies." Angstrom said permit backlogs are affecting commerce and the ability to supply materials for transportation projects and that his industry is negotiating with the governor’s office and DOGAMI on the package.

Why it matters: DOGAMI issues permits needed for mining and aggregate operations that supply road and construction materials across Oregon. Industry representatives said delays have forced project changes on the coast and elsewhere, and they argued that the proposed staffing and fee changes need clearer justification before being adopted.

Speakers supporting the governor’s budget described potential benefits beyond permitting. Christian Toyer of Heirloom Carbon, a company that develops direct-air carbon-removal technology, urged support for HB 5010 because of Oregon’s geology and potential for permanent CO2 storage in basalt. "One of the best ways to store carbon dioxide is in basalt reservoirs, which Oregon has ample access to," Toyer said, citing the Columbia River Basalt Group as a relevant formation. Mike Robinson of packclean.org and Brad Archuleta, business agent for UA Local 290 Plumbers and Steamfitters, also testified in favor of the funding, saying it would support greenhouse gas removal technologies and associated jobs.

DOGAMI Director Rory Day Stewart described the variety of permits DOGAMI processes and clarified which permit types tend to be quicker or more complex. He said expiration permits and renewals (such as many oil, gas and geothermal permits) are generally simpler and move more quickly, while operating permits for sand and gravel and amendments to existing permits can be more time-consuming because of prior regulatory decisions. On the agency’s response, Day Stewart confirmed DOGAMI has interviewed three independent audit firms and is in the process of selecting a firm to perform a process management audit of permitting workflows.

The subcommittee questioned agency officials about whether the backlog clusters in particular permit categories. Senator Anderson asked whether the delays are concentrated in certain types of permits; Day Stewart responded that the program handles a range of permit types and that "there is a complexity" tied to the technical nature of the work. Senator Gorsek asked whether the audit would be independent of DOGAMI; Day Stewart said the firms interviewed are "completely separate to the agency" and operate outside state government.

What was not decided: The hearing was for public testimony; the subcommittee did not vote on HB 5010 at this session. Multiple witnesses described ongoing negotiations between industry and the governor’s office; Angstrom said the industry is "in negotiations" and that some meetings have included members of the governor's staff, including Jeff Huntington and Danny Moran. The Legislative Fiscal Office indicated that subcommittee recommendations occur in a later phase of the budget process, probably in May.

Clarifying details raised in testimony included: the agency’s staff count was described as about 12 technical staff in 2021–2023, increasing to 16 in 2023, and the proposal to raise staff to 28; the industry claim that the proposal would "triple" fees for construction materials companies; examples that permit delays have affected coastal projects; and DOGAMI’s statement that it has interviewed three audit firms and is selecting one to perform a process audit.

The subcommittee closed the public hearing and noted its next meeting would be Feb. 10 to hear the Department of Energy on companion budget bills.