What Is DEQ Actually Doing? Rules, Lawsuits, and the Climate Cash Grab

Oregon legislators break down the DEQ’s ballooning budget, thousands of unvetted regulations, and a federal lawsuit over alleged workplace discrimination. If you've ever wondered why housing, energy, and goods cost more in Oregon—this is a must-listen.

In Episode 11 of the Oregon D.O.G.E. podcast, Senator Daniel Bonham hosts Representative Greg Smith and Senator David Brock Smith for a deep dive into the Oregon Department of Environmental Quality (DEQ)—and what they uncover is a textbook case of bureaucratic sprawl, unchecked regulation, and political mission creep.

The episode begins with a visual: a stack of paper representing over 8,200 pages of DEQ regulations, created with little to no legislative input. DEQ’s authority to issue rules for state, federal, and even tribal laws has ballooned, leaving legislators—and the public—scrambling to keep up.

But this isn’t just about paperwork. It’s about real dollars, lost accountability, and rising costs for every Oregonian.

Budget Growth & Hidden Fees

Over the last decade, DEQ’s budget has doubled, with a proposed 13.6% increase in the current biennium alone. Legislators reveal that:

  • 42% of the agency’s budget is now fee-based
  • Fees include wastewater certification, air contaminant permits, dredge/fill, and more
  • These fees are passed directly to cities, utilities, and ultimately, the consumer
  • Oregon is increasingly reliant on non-taxpayer accountability-free revenue

A single barge of cement leaving the state due to overregulation represents 134 semi trucks added back to Oregon roads. That’s leakage—and lawmakers say it’s the unintended consequence of DEQ’s costly rules.

Lawsuit, DEI Overreach, and “Environmental Justice”

Later in the episode, the legislators unpack a federal lawsuit filed against DEQ, naming the agency’s former director and alleging workplace segregation, discrimination, and overt racial bias rooted in DEQ’s Engage to Change DEI consulting group.

Key lawsuit claims include:

  • Segregated “safe spaces” based on race
  • Mandatory readings that declared “whiteness is a death sentence”
  • Explicit instructions to “decenter white voices” in meetings
  • Organizational support for “anti-racism” doctrines with no internal dissent allowed

The lawsuit isn’t just expensive—it’s pulling DEQ off mission and damaging its credibility.

From Environmental Protection to Political Slush Fund?

The podcast also exposes how the Climate Protection Program (CPP) has evolved into a massive slush fund, rewarding 501(c)(3)s with millions in funds under the banner of “climate equity.” The main contractor? Seeding Justice—a nonprofit also managing Oregon’s abortion fund along the Idaho border.

The show’s guests argue:

  • Environmental goals are being replaced by political loyalty funding
  • Covered industries spent millions complying with invalidated rules
  • Oregon produces just 0.14% of global carbon emissions, and going net zero would have “imperceptible” impact, per OHA and DEQ testimony
  • Yet working families and small businesses bear the full burden through fuel, energy, and compliance costs

Reality Check: Zero-Emission School Buses by 2040?

The episode closes with a breakdown of House Bill 2945, which mandates that 90% of school buses in “disproportionately impacted communities” be zero-emission by 2035, and 100% statewide by 2040.

What’s not clear?

  • How school districts will afford the infrastructure
  • Who defines a “disproportionately impacted” community (hint: DEQ does)
  • Where the energy will come from to charge fleets of buses nightly—each bus drawing the equivalent of 1,500 homes worth of electricity

Final Thought:

Oregonians want clean air and water. But lawmakers say that won’t come from bloated agencies more focused on politics than outcomes.

When unelected bureaucrats write the rules, control the funds, and expand their mission unchecked—everyday Oregonians pay the price.