DEQ urges targeted pay increases to reduce permit delays; explains loan funding and Bunker Hill remediation transfers

The Idaho Department of Environmental Quality told the Joint Finance-Appropriations Committee it needs targeted pay increases to reduce permit backlogs and retain specialized staff, and it described how loan and remediation accounts have been used to support cleanup and infrastructure projects.

DEQ Director Jess Byrne told the committee March 1 that technical permitting programs have seen significant vacancy and turnover rates that have expanded average permit-processing times and could slow economic activity. Byrne said the agency proposed targeted pay adjustments to improve recruitment and retention and that the committee’s previously approved cost-of-living adjustments (CEC) combined with the agency’s proposal would materially improve competitiveness for specialized hires.

Why it matters: committee members and the director linked permit timeliness to economic development — large air-quality and wastewater permits must be issued before certain construction or discharge activities can proceed. DEQ said some programs have had vacancy rates as high as 50–60% in the last year and that new hires frequently require lengthy, technical training.

Major details and context

- Staffing and pay proposal: Byrne said DEQ is allocated 385 FTP and reported about 37 vacancies (roughly 9.7% vacancy rate) at budget submission. The department said it expended about 85% of its personnel dollars in 2024 and has seen significant turnover in technical permitting programs. Byrne told the committee the agency’s average tenure for new employees is about 2.8 years and that it often takes up to two years to train permit writers to full proficiency.

- Permit delays and business impact: Byrne cited program data showing average air-permit turnaround increased from about 89 days to roughly 160 days in the air program. She said the department prioritizes permits that affect economic activity but that extended vacancies slow other workloads and increase legal risk (for example, third-party lawsuits when enforcement lags).

- Targeted package and rationale: The department’s enhancement would raise entry-level hiring rates (comp ratios) — the stated proposal was to raise minimum comp ratios for new hires to 83%, with particularly hard-to-fill positions set to 86%. Byrne said the package is designed to reduce turnover and the time needed to reach full productivity; a legislator characterized part of the package as about $600,000 spread across roughly 240 positions (that characterization was discussed during questioning).

- Loan funds and Bunker Hill transfers: Representative Tanner and others asked about the $4.8 million automatic transfer into the Water Pollution Control account (a statutory transfer from sales-tax distributions) and a requested $1.5 million transfer for basin remediation (Bunker Hill). Byrne explained the $4.8 million transfer is a longstanding revenue stream intended to support loan capitalization for wastewater and drinking-water projects; when the balance exceeds immediate matching needs the agency has sought transfers to cover state match and ongoing operation and maintenance of the Bunker Hill Superfund site. Byrne said the agency aims for about $45 million in the basin remediation account to meet the state’s 10% matching and long-term O&M obligations; the agency is partway toward that target through repeated transfers.

- ARPA and federal inflows: Janet Jessup (Legislative Services) and Byrne walked the committee through DEQ accounts showing ARPA state fiscal recovery funds and other federal grants increased DEQ’s trustee-and-benefit-payment line items in recent years because many federal and ARPA monies are distributed as third-party grants.

Committee concerns and discussion

Lawmakers asked for more detail on the targeted pay plan, the program-by-program effect of turnover on permitting, and whether DEQ can reduce regulatory burdens where possible. Byrne said DEQ has historically reviewed regulations for efficiency (citing prior zero-based reviews and other internal efforts) and that the agency supports regulatory streamlining where appropriate.

Direct quotes (selected)

- Director Jess Byrne: “Pride doesn’t get permits out the door. Quality workers do.”

- Director Byrne on vacancies: “In our air permitting program, 50% of the positions have been vacant in the last year. Our surface water individual permit program, 60% of those positions have been vacant in the last year.”

Actions and requests recorded

- DEQ request: targeted pay increases and comp-ratio adjustments to improve recruitment and retention (proposal presented; no committee vote recorded in transcript). - DEQ request: transfer of $1.5 million from the Water Pollution Control account to the basin remediation (Bunker Hill) account to continue meeting match and O&M obligations (request presented; no committee action recorded in transcript).

Discussion vs. decision

- Discussion: the department explained vacancy rates, permit processing delays, loan and grant account history, and the rationale for pay adjustments and fund transfers. - Direction/assignment: committee members requested additional detail on the pay plan and the agency’s plan for permit improvement; Janet Jessup agreed to follow up with additional materials. - Decision/formal action: none recorded in the hearing transcript.

Clarifying details (from the hearing)

- DEQ staffing and personnel: agency reported allocation of 385 FTP with about 37 vacancies at time of budget submission (vacancy rate ~9.7%); agency expended ~85% of personnel dollars in FY2024. - Permit timelines: air permitting average days rose from about 89 to ~160; surface-water programs also reported increased backlog and vacancies. - Wastewater/drinking water funds: statutory $4.8 million transfer is designed to provide match funds for federal capitalization grants; a backlog of available funding reflected a temporary large balance while projects were awarded and before funds were drawn down. - Bunker Hill remediation: DEQ aims for a $45 million basin remediation balance to cover the state’s 10% match and ongoing operation and maintenance; the department has requested periodic transfers into that account.

Proper names

[{"name":"Idaho Department of Environmental Quality","type":"agency"},{"name":"Jess Byrne","type":"person"},{"name":"Bunker Hill Superfund Site","type":"location"},{"name":"Tiffany Floyd","type":"person"},{"name":"Wastewater Drinking Water Loan Fund","type":"other"}]

Community relevance

- Geographies: statewide impacts, with specific remediation implications in Northern Idaho (Bunker Hill) and permit consequences in Treasure Valley and other areas. - Funding sources: ARPA State Fiscal Recovery funds, Bipartisan Infrastructure Law federal funds, statutory sales-tax distribution transfers to water-pollution account, loan capitalization grants. - Impact groups: regulated businesses (air and wastewater permittees), municipalities seeking loans for drinking-water and wastewater projects, communities near remediation sites.

Meeting context

- Engagement: multiple legislators questioned the director and asked for follow-up data; session included extended technical discussion and several follow-up commitments by the department and legislative staff. - Implementation risk: medium-high for permitting delays affecting economic development and legal risk if enforcement lapses. - History: DEQ has undertaken zero-based regulatory reviews previously; recent federal funding rounds and ARPA infusions increased the agency’s grant-making responsibilities.

Searchable_tags:["DEQ","permits","staffing","Bunker Hill","wastewater_loans","ARPA"],

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