INDIANAPOLIS (WLKI)- Indiana's wetlands mitigation program has collected more than $109 million from developers since launching in 2018 but has fallen behind in completing restoration projects intended to offset environmental impacts, according to reporting by the Indiana Capital Chronicle.
The state-administered in-lieu fee program allows developers to purchase mitigation credits through the Indiana Department of Natural Resources when construction affects protected wetlands or streams. Responsibility for restoring or creating replacement habitat then shifts to the state.
According to the Capital Chronicle, only two mitigation projects have been completed since the program began, while dozens remain in various stages of planning, permitting and construction. The publication reported that state records show significant backlogs in both wetland and stream mitigation credits, with many obligations extending beyond federally established timelines. The U.S. Army Corps of Engineers, which oversees the program, has requested that DNR submit a corrective action plan addressing delayed projects and outstanding mitigation obligations.
DNR officials attributed the delays to early staffing shortages, the COVID-19 pandemic, lengthy permitting reviews and higher-than-expected demand for mitigation credits. Agency officials told the publication they have expanded staffing and expect a growing pipeline of projects to begin delivering credits over the coming years.
The Capital Chronicle also reported that the Indiana Department of Transportation has been the program's largest purchaser of mitigation credits, spending nearly $45 million since the program's inception.
State Sen. Chris Garten, R-Charlestown, criticized the arrangement during a recent budget committee hearing, arguing that one state agency is effectively paying another with taxpayer dollars.
Environmental advocates interviewed by the Capital Chronicle said wetlands play a critical role in flood control, groundwater recharge, water quality and wildlife habitat. They expressed concern that continued delays in replacing lost wetlands could reduce those environmental benefits.
The publication also reported that researchers familiar with similar mitigation programs nationwide say delays in completing restoration projects have long been a challenge, despite federal rules requiring mitigation work to begin within prescribed timeframes.
DNR officials say additional projects are advancing through the regulatory process and expect the backlog to decline as more restoration sites receive permits and begin construction.