Bismarck — Department of Environmental Quality officials on Wednesday detailed their agency’s proposed budget for the 2025–27 biennium and asked the Senate Human Resources Appropriations Committee to approve Senate Bill 2024, which carries the agency’s funding request.

Beth Jacobson, director of accounting for the Department of Environmental Quality, told the committee the department’s recommended 2025 budget would be funded with about 15% general funds, 62% federal funds and 23% special funds, and that the executive recommendation “included $19,000,000 in general funds” largely to restore vacant FTE funding and support a compensation package.

Jacobson said salary and wages account for roughly $46 million (about 35% of the DEQ budget), operating expenses total about $21.8 million, capital assets roughly $4.4 million and grants/subawards about $60 million (45% of the agency budget). She described $5 million‑plus in one‑time funding in the executive recommendation, most of it tied to the new state chemistry laboratory and related startup costs.

Why it matters: The package includes one‑time costs that the DEQ says are necessary to move and outfit a modern laboratory and to stand up testing for emerging contaminants. The committee’s decision will determine how the agency funds ongoing programs and several large one‑time capital and IT projects.

The laboratory move and PFAS testing: Jacobson said the new chemistry laboratory is under construction on the Capitol grounds and that moving the DEQ lab’s instrumentation will be costly because many instruments require manufacturer assistance. She gave an estimated moving package of $1,500,000 to move about 120 instruments, “with an estimated average moving cost of $12,500 per unit,” and said an additional roughly $1.4 million is budgeted for laboratory equipment such as refrigeration, gas generators and mass spectrometers.

Jacobson told the committee the one‑time laboratory package also includes funding to establish PFAS (per‑ and polyfluoroalkyl substances) testing capability in the new facility. DEQ Director Dave Blott explained the issue: “PFAS … is the forever chemical,” he said, noting some compounds in the class are regulated at very low concentrations — “a standard of 4 parts per trillion” — and that more testing capacity is required.

Petroleum tank fund and database: The committee pressed DEQ about the Petroleum Tank Release Compensation Fund (PTRCF), which the agency recently assumed from the Insurance Commissioner. Blott said the PTRCF is self‑funded and that its balance is “around $6,000,000,” noting cleanup claims can reach up to $1,000,000 per incident. The department is proposing a new PTRCF database to allow regulated parties to submit fees online and to improve fund management; Jacobson and Blott said the budget includes one‑time funding for that IT project (the request discussed in the hearing was described as roughly $900,000 to $960,000 in conversation).

Revolving loan funds and grants: The DEQ’s municipal facilities division administers two revolving loan funds — a drinking water state revolving fund and a clean water (wastewater) revolving fund — which provide low‑interest loans at roughly 2% to communities for upgrades. Blott and Jacobson said the funds largely sustain themselves through repayments but noted federal capitalization grants remain important and have been shrinking nationally.

Staffing, vacant FTEs and fee‑funded positions: Jacobson walked the committee through recently added and vacant positions. She said most of seven FTEs awarded in 2023–25 are filled; one chemist position tied to an anticipated lead‑and‑copper testing workload remains vacant while the final rule was delayed. Jacobson told senators that if the lead‑and‑copper rule is finalized the department expects a large increase in sampling and would fill that FTE with special funds collected from testing fees.

Budget risks and federal funding: Jacobson cautioned that roughly 62% of the recommended budget is federal funds and that reductions at the Environmental Protection Agency would force program adjustments. Blott added the DEQ will monitor federal grant availability and may need to adjust operations if federal funds decline.

Requests from committee members: Senators asked for additional records and histories. Blott agreed to provide a history of PTRCF payouts (committee members asked for a 15‑year history or a reasonable multi‑year period), and Jacobson said the department can provide recent histories of revolving loan fund activity and the vacancy report submitted to legislative council.

Closing: The committee opened public hearings earlier in the session and closed the hearing on the agency’s appropriation bill during the same meeting. No committee vote was recorded in the transcript; senators asked for follow‑up materials before deliberations.