The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Tuesday, December 12, 1995             TAG: 9512120312
SECTION: LOCAL                    PAGE: B10  EDITION: FINAL 
SOURCE: BY DAVID M. POOLE, STAFF WRITER 
DATELINE: RICHMOND                           LENGTH: Medium:   51 lines

ENVIRONMENTAL OFFICE HAS LOW MORALE, STUDY FINDS

The Allen administration's environmental policies came under renewed scrutiny Monday when a watchdog agency released a report detailing low morale and political interference within the Department of Environmental Quality.

The Joint Legislative Audit and Review Commission survey showed that 89 percent of DEQ employees disagree that ``morale is good'' and that 57 percent are concerned about possible retaliation if they upset a polluter.

The JLARC study also found that some job applicants were asked if they could recite the guiding principles of Republican Gov. George F. Allen and his Natural Resources Secretary, Becky Norton Dunlop.

DEQ Director Peter W. Schmidt took a grilling from senior lawmakers on the JLARC staff but never wavered from his belief that the study was slanted to present the Allen administration in an unflattering light.

In turn, Democratic lawmakers took offense that anyone would question the objectivity of JLARC, founded 20 years ago to provide the General Assembly with independent studies on the efficiency and effectiveness of state programs.

``This has never been done,'' said Stanley C. Walker, the soft-spoken JLARC chairman from Norfolk. ``It smells of politics in the worst form.''

At issue is the Allen administration's efforts to downsize DEQ and reshape it into an agency that emphasizes ``customer service'' for regulated companies.

A JLARC survey of DEQ employees found this pro-business approach has many workers concerned that they may face reprisals for decisions that are consistent with environmental laws but upset polluting companies.

Schmidt replied that this perception is unfounded, adding that he constantly tells his regional managers not to push ``customer service'' past the point where the public's right to clean air and water is jeopardized.

As for low morale, Schmidt said most of the problem dates to April 1993, when DEQ was formed with the merger of independent agencies. He said the department was ``in chaos'' when he arrived in June 1994, and that morale is on the mend.

Schmidt asked for patience, citing a paragraph toward the end of the 95-page JLARC report that said: ``DEQ's current leadership team has significantly changed the emphasis, structure and approach that the agency takes in fulfilling its statutory mandate. It is too early in this process to determine the effectiveness of these changes.''

The JLARC study will continue, with a report expected before the 1997 General Assembly to determine how well DEQ protects the environment. by CNB