DEQ nominee Delli-Gatti pledges to work with business leaders, NC Republicans

Dionne Delli-Gatti, Gov. Roy Cooper’s nominee to head the N.C. Department of Environmental Quality, pledged Tuesday to work with the Republican-led General Assembly, if confirmed.

“I understand the balance that must exist between protecting our air and water and providing the certainty that businesses need to operate and succeed,” Delli-Gatti told the Senate Agriculture, Energy and Environment committee.

Delli-Gatti went on to describe herself as a “consensus builder,” a description people often use when describing Michael Regan, now the administrator of the Environmental Protection Agency whom she would replace as secretary of DEQ. If confirmed, Delli-Gatti would be the first woman to lead the agency.

Like Delli-Gatti, Regan worked at the Environmental Defense Fund prior to being tapped as secretary of the North Carolina environmental agency. Delli-Gatti was the EDF’s southeast director of climate and energy, but her experience also includes a six-year stint at the EPA’s Southeastern office as a liaison between the agency and congressional offices and various roles with the City of Dallas.

With the timing of Regan’s appointment in late December and Delli-Gatti’s appointment in 2021, Regan oversaw much of the department’s budget process.

“I am lucky in that I know Administrator Regan well,” Delli-Gatti said. “We have similar approaches, and I don’t have wild divergences from what he and his team proposed in the budget. I think it’s thoughtful. It focuses on the things that are priorities to me.”

Among the priorities Delli-Gatti outlined were addressing emerging contaminants like per- and polyfluoroalkyl substances (PFAS), working with financially distressed utilities and helping make the state’s permitting process more efficient.

Cooper’s proposed budget includes $3.8 million in each of the next two years to hire staff with technical expertise to “abate hazardous substances.” Another $5.6 million in each of the next two years would be used to help overhaul the agency’s permitting process, including a new online permitting system.

Sen. Norm Sanderson, a Pamlico County Republican who co-chairs the committee, directed a line of questioning at Delli-Gatti’s approach to permitting, specifically whether she intended to have an open door to those seeking permits in the event that problems arose.

“So much of our business community’s future plans depend on what they can expect out of your department,” Sanderson said.

Several lawmakers, including Sanderson, expressed concerns about the length of time it can take DEQ to decide on permit applications.

“We have to balance the economic needs and the environmental protection and we have to ensure that the natural resources and public health are protected and that the requirements of the law are met,” Delli-Gatti said.

Delli-Gatti also emphasized her own ties to the state’s regulated community, noting that Stephen De May, Duke Energy’s North Carolina president, was the first person to congratulate her on her appointment.

Sen. Brent Jackson, another chair of the committee, expressed frustration at the amount of time it had taken the Align RNG project to receive an air permit from DEQ. Align applied for a permit in December 2020, receiving approval in January 2021.

The project, located in Turkey, N.C., would take methane from hog waste lagoons at 19 farms and purify it, turning it into natural gas. Industry officials describe it as a boon to farmers, effectively turning waste into a revenue stream, while many who live nearby describe the project as an environmental justice issue, with the biogas digesters meaning the farms will continue to use waste lagoons.

“It was totally unacceptable for us to have this industry on hold for that long waiting on permits,” Jackson said.

Senate Bill 605, the Farm Bill of 2021, includes a general permit for biogas digesters at hog farms. If approved, the provision would mean farms could build the digesters without seeking individual water permits from DEQ.

Delli-Gatti said the Align delay was in part because DEQ hadn’t permitted such a project before.

When asked if she approved of general permits for biogas digesters, Delli-Gatti demurred, telling Jackson the department could provide technical assistance but that the policy decision is ultimately up to the General Assembly.

“We will take permits as they are provided to us. We will assess them on their merit,” Delli-Gatti said. “We will ensure that they meet the criteria of the law and that we can protect our natural resources and public health and then if they achieve the requirements of the law, the permit will be issued.”

Sen. Paul Newton, a Cabarrus County Republican, asked Delli-Gatti about her approach to energy generation, specifically the state’s transition to renewable forms of energy like wind and solar. The state’s clean energy plan, released last summer, sets targets of a 70% reduction in greenhouse gas levels by 2030 and net zero by 2050.

Newton asked if North Carolina should consider pausing its renewable energy transition while technologies improve, and Delli-Gatti said, “We have so many companies now that have made corporate commitments to net zero or to a specific amount of carbon reductions or renewables, and so being able to accommodate that, I think will be essential to economic development for the state.”

Delli-Gatti said she is uncertain what the best mix of energy generation will include and noted that members of the House are working behind closed doors on an energy bill.

“I’m very curious to see what comes out of that,” she said.

Tuesday’s meeting concluded without the committee voting on Delli-Gatti’s appointment.