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DEQ asks to make three subdivision review positions permanent as subdivision workload rises
Summary
Department of Environmental Quality officials told the Section C committee that sustained subdivision reviews and a rising number of lots require making three previously one‑time positions permanent; the department also requested additional engineering and wastewater technical inspector positions to handle compliance and operator support.
The Montana Department of Environmental Quality told lawmakers it needs to make three subdivision review positions permanent after the program saw a sustained increase in review workload that drove missed deadlines in prior years.
Lindsay Kravaruchka, division administrator for the Water Quality Division, told the Section C appropriations subcommittee that subdivision review and public system engineering work has surged and that the division currently lacks staff to investigate complaints and to allow engineers to take leave. "Right now our engineers can't take vacations," Kravaruchka said. "If they do, they take files with them." She described the three positions as critical to keeping subdivision reviews on time.
Why it matters: Subdivision approvals and public water and wastewater design reviews affect how many new housing units can be built and how quickly developers and counties can move projects forward. Kravaruchka said that in September 2024 DEQ reviewed 127 subdivision files that resulted in 281 new lots and 391 new housing units, and that the three positions put into place in 2023 helped the agency reduce missed deadlines from the prior backlog.
The department presented three decision packages for the water quality division: two positions for the public water supply bureau (to be funded with federal dollars), one engineering compliance position funded with state special revenue tied to subdivision review fees, and a wastewater technical inspector position funded with state special revenue to support wastewater operators in smaller communities.
Deputy Director James Fair and Director Sonya Nowakowski told the committee the agency is seeking statutory changes to separate public water supply and subdivision engineering fees so each account can be evaluated independently. Nowakowski said the department supports Representative Fitzpatrick’s House Bill 40, which would divide the accounts to clarify whether subdivision fees are covering their costs. "At this time, we believe subdivision and engineering fees are holding their own and... because those accounts are commingled, it's difficult for us to account for that," she said.
Industry and consultant representatives who testified in favor of the positions said they have seen a notable improvement at DEQ since staff increases and process changes. Jeff Larsen, vice president of the Montana Environmental Consultants Association, said the water quality division has become more collaborative and that the three engineering positions are needed to prevent a return to earlier delays. "I wholeheartedly support Lindsay's request... If we don't get them, we're gonna fall back, and we're not gonna get our project reviewed in time," Larsen told the committee.
DEQ also said it is continuing wider efforts to digitize applications — including an online subdivision and public system plan submission tool, standardizing engineering review processes and moving stormwater construction permits fully online — to speed reviews and reduce paper handling.
Committee members asked whether subdivision and engineering fees fully cover the cost of reviews; Kravaruchka and Nowakowski said HB40 will separate accounts to make that accounting clearer and that a future decision package could request fee adjustments if the split shows shortfalls.
The committee did not vote; staff said they will provide additional documentation supporting the decision packages and the proposed statutory change.
