DEQ warns permit backlogs and turnover are slowing development; agency seeks targeted pay increases and staffing to stabilize permitting

The Idaho Department of Environmental Quality told the Joint Finance-Appropriations Committee on March 1 that vacancies and staff turnover have increased permit processing times and that targeted pay adjustments, combined with a previously approved cost-of‑living component, are necessary to keep the agency competitive and to avoid delays that can slow business and infrastructure projects.

Director Jess Byrne told the committee that permitting programs have seen significant vacancies: about half of air‑permitting positions were vacant in the past year, the surface‑water individual permit program experienced roughly 60% vacancies, and turnover in several technical programs has lengthened permit review times. “The culprit of that essentially has been turnover,” she said, noting that hiring and training technical permit writers can take up to two years.

Why it matters: delayed permits can postpone construction and the installation of water and wastewater infrastructure. Committee members pressed DEQ for evidence that targeted pay increases would reduce backlogs and sought details on how fund balances and transfers are being used for remediation and loan programs.

What DEQ told the committee

Byrne said the agency’s proposal — incorporated in the governor’s recommendation and supplemented by a committee-approved compensation enhancement case (CEC) under consideration — aims to raise entry-level hiring rates and provide targeted increases for positions that are most difficult to fill. The agency proposed raising an entry minimum from about a 75% comp ratio to 83% for most hires and to 86% for especially hard-to-fill positions, and it proposed targeted increases for incumbent employees to reduce compression and turnover.

Byrne said permit processing times have increased in recent years. She cited air‑quality permitting as an example: an average of about 89 days in one earlier measure rising to roughly 160 days for a recent period, and that the department has reprioritized work to avoid delaying economically essential permits. Committee members asked for more detail; Byrne agreed to provide follow‑up analysis on how the proposed pay changes would reduce backlog and what the agency expects to achieve.

Funding, loans and remediation

Budget analyst Janet Jessup described DEQ’s numerous dedicated funds and the effect of ARPA and other federal monies on FY2023–24 spending. She said ARPA state fiscal recovery funds substantially increased trustee and benefit payments (grants to third parties) recorded in 2023 and 2024. She also walked the committee through the agency’s wastewater and drinking water loan programs and explained how some transfers have been used for remediation commitments such as the Bunker Hill Superfund site.

Director Byrne explained the role of the state’s water pollution control account and transfers into the account that support capitalization grants for low‑interest loans for drinking water and wastewater projects. Byrne said the legislature in recent years authorized transfers to build balances to match federal capitalization grants, and that some transfers are later requested to support remediation or long‑term operation and maintenance needs. For example, the agency is working toward a target balance (roughly $45 million) in the basin remediation account to cover ongoing Bunker Hill match and O&M costs, Byrne said.

Waste tire fund and other details

Senator Beierke asked why the Waste Tire Deficiency Fund showed a negative balance in 2022 and not afterward. Jessup explained that deficiency funds may end a fiscal year in the negative; the legislature subsequently repaid the deficit in a later session and the fund returned to nonnegative balances.

Lawmakers’ concerns and follow-up requests

Lawmakers repeatedly emphasized the economic impact of permit delays and pressed DEQ for more targeted detail on the proposed pay changes. Representative Petzke asked whether the requested pool of targeted increases would move the needle enough — Byrne said the combination of the governor's recommended targeted increases and the committee‑approved CEC would materially improve the agency’s competitiveness for specialized staff. Multiple legislators asked for a breakdown of how targeted pay increases would be allocated by program and position; Byrne agreed to provide that detail through Legislative Services.

No formal committee votes were recorded during the exchange. Byrne closed by urging that stabilizing DEQ staffing is necessary to keep permitting functioning and to preserve state primacy over federal programs.

Speakers