The Virginia Association for Commercial Real Estate (VACRE) and the Home Builders Association of Virginia (HBAV) submit the following comment regarding the Department of Environmental Quality’s (DEQ) proposed permit fee increases. Both organizations  recognize and support the General Assembly’s directive to the Department to improve cost recovery through permit fees and reduce reliance on general fund appropriations. Ensuring adequate funding for timely, thorough permit reviews is critical to maintaining program quality, protecting natural resources, and providing predictable timelines for the regulated community.

The Department’s permitting programs have faced longstanding resource constraints that have affected review timelines and staff capacity.  Over the past several years, the Department has made notable progress in improving permitting efficiency through process enhancements and other initiatives. The revised fee structures will further build on this progress by sustaining adequate staffing, expanding technical expertise, and supporting continued improvements that advance both environmental protection and regulatory performance. Revised fee structures will allow the agency to maintain appropriate staffing, enhance technical expertise, and implement process improvements that strengthen environmental protection and regulatory efficiency. Adequate resources are essential for the Department to fulfill its responsibility to protect Virginia’s natural resources while providing timely, reliable services that critical support economic development projects

We do, however, share the concerns expressed by the Hampton Roads Sanitation District (HRSD)  regarding automatic annual fee adjustments tied to the Consumer Price Index(CPI). Codifying automatic CPI-based adjustments could limit future agency and stakeholder review and may increase fees at a pace that exceeds actual program needs. The VACRE and HBAV respectfully request the Department consider alternatives or provide for periodic reassessments of whether the fee structure continues to meet program needs and whether the CPI adjustment produces appropriate results.

Our members would hope this significant increase could support the program for a reasonable period of time at which time the facts and dollars generated can be considered and reevaluated. 

Sincerely, 

Philip Abraham

Legislative Counsel, Virginia Assoication for Commercial Real Estate

Director and General Counsel, Vectre Corporation

Andrew Clark

Vice President of Government Affairs

Home Builders Association of Virginia