DEQ tells Senate subcommittee WQIF has large pipeline of grants and PFAS could drive multi‑billion costs
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Summary
DEQ reported hundreds of millions in awarded and pending WQIF grants and said PFAS removal requirements could add billions in capital and operating costs to treatment‑plant upgrades, citing a single large plant estimate of roughly $328 million in capital and $24 million annual operating costs.
The Department of Environmental Quality (DEQ) told the Senate subcommittee it has a large WQIF grant pipeline and that potential new requirements to address PFAS will sharply increase treatment costs.
Mike Roban, DEQ director (as referenced in the transcript), said DEQ currently has roughly $634,000,000 in awarded, open WQIF grants across 16 projects in 14 localities and another approximately $431–432,000,000 under evaluation. He said DEQ’s needs assessment estimates roughly $1.17 billion in potentially eligible project costs through 2030, though only portions of that are WQIF‑eligible.
Roban described a long‑standing grant management practice in which DEQ executes grants that may exceed immediately available cash and effectively leaves payment pending until the General Assembly appropriates funds. “We give you an IOU, basically,” Roban said, explaining the approach is intended to create political pressure to appropriate funds.
Why it matters: DEQ told the panel it expects a near‑term budget shortfall for the WQF program despite a projected FY26 surplus. Roban estimated an additional roughly $188–189 million would be needed in both FY27 and FY28 on top of the current WQF budget (about $140–141 million in the record) to sustain projects already in the pipeline.
PFAS and costs: Senators asked whether PFAS requirements would increase WQIF needs. Roban affirmed they would and cited a recent capital estimate for a large Fairfax‑area plant (transcript reference to a named plant) of about $328,000,000 to reach a 4 parts-per-trillion target and about $24,000,000 a year in operating costs; he said statewide needs could scale to “multiple billions.”
Program fixes: Roban and DEQ staff reported a two‑year study is underway to recommend improvements to WQIF. The introduced budget bill, he said, includes language (not shown in the presentation slides) that would establish a grant application period and prioritization criteria to manage the pipeline and require the administration and General Assembly to consider prioritized awards in the budget process. An agency staff member present said that specific budget language can be provided to the committee.
What’s next: Roban said DEQ continues to update cash‑flow estimates quarterly and that the department will provide details as projects move and costs become clearer. He invited follow‑up from members and noted that the department had not yet been involved in any lawsuits related to the grant IOU practice (as of the hearing).
Notes on the record: The transcript records numeric estimates and project counts as stated by DEQ; it also records staff names and an inconsistent spelling of an administrative official referenced as 'Alvy, Edward' in one place and 'Albie' in another. The article reports DEQ’s figures and policy positions as presented in the hearing.