Environmental Agency cuts are bad for businesses and many present and future Long Island projects
November 22, 2010 - Long Island
It's no surprise that in a bad economy people want the government to cut back on spending, particularly on spending what they view as "wasteful" government programs. Given where the economy stands, that sounds like the right thing to do. One has to question, however, whether we'll end up paying for some of these cuts in the long term, and whether some, particularly those to Long Island's environmental agencies, will actually delay our ability to return to prosperity.
The local office of the New York State Department of Environmental Conservation (DEC) has already lost a number of employees to early retirement, and our outgoing governor has threatened to can an additional 150 people state-wide by the end of the week. While some applaud the savings realized through the reduction in staff, a closer look at just who the agency lost gives cause for concern. DEC's Long Island office, for instance, recently lost three of its most senior permit administrators. As you may know, DEC's permit administrators play a key role in the project review process. They are responsible for identifying the regulations that apply to a given project, and for coordinating the various bureaus and divisions within the agency to make sure projects are adequately reviewed. On Long Island, where the permit process is already slow, the loss of senior permit analysts will further hamper our ability to recover. DEC also lost staff in other programs vital to new business projects and, because of the state's budget fiasco, the agency is prevented from replacing lost staff.
In short, DEC has lost some of its most knowledgeable and experienced people, exactly the type of people Long Island businesses will need as the economy improves and they once again seek to invest money on revenue generating, job creating projects. The problem is magnified because the cutbacks at DEC go beyond personnel. DEC has also lost significant funding for programs the business community needs. For instance, the typical annual budget provided to the region's petroleum spill group was approximately $4 million. This year the budget was cut in half to approximately $2 million. You may be thinking, "So what?" Well, when you can't get financing or close on a deal because you can't get DEC to sign off on a clean-up that you completed, you will most likely care.
DEC is by no means the only agency that has experienced cuts that will affect future business development on Long Island. The Division of Environmental Quality at the Suffolk County Department of Health Services is another group that businesses must obtain approval from before they can proceed with their revenue-generating projects. These are the folks that, among other things, review Phase I & Phase II reports, oversee drywell and septic system cleanouts and oversee the underground storage tank and hazardous materials storage programs. The two bureaus, however, recently lost 19 of its most experienced people to early retirement, which constitutes 25% of its entire staff. With less than a handful of people left, how in the world are they going to review reports on a timely basis? The simple answer is that, despite their efforts (and they are a very hard-working and dedicated group), they will not be able to keep pace. Projects will languish which, in turn, will result in more lost revenue.
The Nassau County Department of Health, which performs some of the same functions, has also been victimized by personnel losses and the loss of significant funding. For many years, the department ran (with some light oversight by the federal EPA), the Underground Injection Control Program. That's the program that oversees, among other things, the investigation and clean-out of storm drains, floor drains and on-site septic systems. The department ran that program through a grant provided by the EPA. About a year ago, the feds stopped providing that grant money. Are you again thinking, "So what?" Well, now you have to get EPA's approval of every little parking lot storm drain investigation and clean-out project performed in the county, and if you think the process took too long before, just wait until you experience the molasses that the EPA has to offer.
What seemed to be the right move in the short-term is likely to have a serious impact in the long-term, just when we're going to need investment from the business community most. Businesses need well-staffed and adequately funded environmental agencies on Long Island.
Barry Cohen is the chair of the Environmental Law Practice Group at Certilman Balin Adler & Hyman, LLP, Hauppauge, N.Y.