LANSING – Some of the projects funded with federal stimulus money could come to a halt along with the end of the state’s wetlands program, officials confirmed Thursday.

U.S. Environmental Protection Agency Region 5 Acting Director Bharat Mathur urged the state to keep operating its program for at least a few months, even if the state does decide to cancel it in the end, to avoid permitting delays that could hold up projects, particularly those funded under the American Recovery and Reinvestment Act.

The Senate Natural Resources and Environmental Affairs Committee approved legislation Wednesday (SB 785 ) that would provide funding for the wetlands program, but that measure has run into some objection from business groups.

“We are extremely concerned that, on the same day legislative leaders agreed to budget targets predicated on cutting state spending, the Senate Natural Resources Committee approves legislation that would make that task more difficult to achieve,” said Jim Holcomb, vice president of business advocacy for the Michigan Chamber of Commerce. “Retaining the current program would be a waste of taxpayer dollars because it is duplicative of federal efforts without adding value.”

But Mathur said the EPA and the Army Corps of Engineers would not be ready to take over the program for some time, in part because the program is not included in the federal budget.

“Transfer of authority to the federal government can be a lengthy and complex process involving numerous administrative actions,” Mathur said in a letter to the Department of Environmental Quality. “The process would be further complicated by the need for COE to obtain authorization for funding and staffing increases to effectively manage the program.”

The DEQ already had acknowledged the time needed to make the transfer, said DEQ spokesperson Robert McCann.

“Transfer of program like that isn’t just flip a switch,” he said. “It’s going to be awhile before they have a program up and running and are ready to issue permits.”

Mathur also warned that anyone unable to get a permit because there was not an agency available to issue one, but moving forward with a project would be subject to fines.

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