DEQ warns staffing gaps are slowing permits; seeks targeted pay increases and clarification on remediation and loan funds

The Idaho Department of Environmental Quality told the Legislative Budget Committee that turnover and vacancies in technical permitting positions have extended permit timelines and that targeted compensation increases — combined with previously approved cost-of-employee compensation adjustments — are necessary to retain staff and protect state primacy over federal programs.

Director Jess Byrne said the agency has seen significant vacancies in technical permitting programs and that some permit timelines have lengthened substantially. "In February, it took us about 89.1 days on average to issue an air quality permit. We are now closer to a hundred and 60 days on average," Byrne said, summarizing permit-timing trends and the effect of turnover on backlog.

Why it matters: slowed permitting can delay local economic development and infrastructure projects that require air-quality or wastewater permits. Committee members asked for details on the DEQ proposal to raise entry-level pay and provide targeted increases for hard-to-fill roles, and for more information on fund balances tied to drinking-water and wastewater loan programs and remediation accounts such as the Bunker Hill Superfund basin account.

Staffing and permit delays Janet Jessup introduced the DEQ briefing and noted the agency is allocated about 385 FTP. Byrne and DEQ staff told the committee the department had experienced vacancy and turnover spikes that hurt throughput in permit-writing programs: air permitting had periods with up to 50% vacancy, surface water individual permits had roughly 60% vacancy over the last year, and training new permit writers can take up to two years. Byrne said the agency’s proposal (in the governor’s recommendation) would raise hiring minimums to about an 83% comp ratio for new staff and 86% for targeted hard-to-fill positions and include modest adjustments to existing staff to address compression.

Byrne described exit interview findings: two-thirds of departing employees reported accepting positions that paid 20% or more above DEQ offers. Representative Petzke questioned whether the governor’s proposed funding would move the needle; Byrne responded that combined with the committee’s previously approved CEC action the targeted increases would make the agency competitive enough to retain technical staff.

Funds, loans and remediation Jessup summarized the DEQ fund structure and referenced ARPA and other federal funding that have increased trustee and benefit payments and grant flows. Members asked about the Water Pollution Control account and a transfer request: Byrne explained the statutory $4.8 million transfer (from a sales tax distribution mechanism) is a standing mechanism to ensure match capacity for federal capitalization grants for low-interest wastewater and drinking-water loans; the department has seen a temporary large balance because of recent legislative allocations for loans and expected federal match needs. The department also requested transfers to build the Bunker Hill basin remediation account toward a $45 million target used to fund the state’s 10% match and long-term operation-and-maintenance obligations for the Superfund cleanup.

Other program issues and timing Committee members asked whether DEQ is held up by other agencies; Byrne said DEQ and DEQ partners (for example Department of Water Resources and DEQ) coordinate and she has not found DEQ to be held up by partners. On waste-tire cleanup, Jessup explained deficiency funds can show negative balances in years with cleanup activity and are later repaid by the Legislature. Committee members also asked whether supply-chain and inflation trends should accelerate project timing; Raybould (speaking during the water portion) said some recent projects have come in under budget.

Committee direction and next steps Committee members asked DEQ for more granular materials: Jessie Byrne and staff agreed to provide detailed plan-level information on the targeted-pay proposal (which positions and pay targets), permit backlog metrics, and fund-balance details that underlie transfer requests. Byrne closed by asking the committee to consider the combined targeted pay increases and CEC as a means to stabilize staff and preserve state primacy for permitting and enforcement.

Taper: the hearing concluded after DEQ’s presentation and committee closing remarks.