Business groups and builders tell oversight committee permitting delays and inconsistent rules are costing projects and jobs

Business and construction-industry witnesses told the Michigan House Committee on Oversight that permitting backlogs, inconsistent standards across EGLE divisions and uncertainty about what constitutes a complete application are delaying projects and increasing costs.

Why it matters: Testimony linked permitting problems to higher housing costs, project delays and job losses; home-builders said regulatory cost and time add materially to the price of new homes and to contractors’ cash-flow risks.

What witnesses said: Michael Alaimo, senior director of legislative and external affairs for the Michigan Chamber of Commerce, described permitting as a long‑running issue affecting economic growth. Alaimo said the chamber will convene a rules-and-permitting work group to pursue reforms and noted that permitting difficulties span multiple administrations because environmental permitting is inherently complex.

Dawn Crandall, executive vice president of government relations for the Home Builders Association of Michigan, told the committee builders reported widely varying timeframes across water and wetland permit types and that paying for expedited reviews (she cited a $1,000 expedited sewer‑permit option) is common. Builders reported cases where an expedited application paid in July 2024 was not issued until January 2025; other members told the association the lack of consistent timelines penalizes contractors and increases project costs.

Troy Cummings, an attorney and Michigan Chamber board member, said permitting staff sometimes fear liability for decisions and that targeted, limited rulemaking authority could address some inconsistencies. He recommended continued discussions with EGLE about risk‑based permitting and liability protections for staff who follow statutes and rules.

The meat-processing and small‑business perspective: Carl Jones, president of the Michigan Meat Processors Association, said a 2022 revision to the general groundwater discharge permit for meat processors introduced numeric limits (for example, phosphorus and biochemical‑oxygen-demand thresholds) that he described as stricter than federal practice and potentially expensive to meet. He estimated construction to install a lagoon system at a small plant could cost $600,000–$800,000 with annual operating costs around $70,000 and said smaller processors fear they cannot take on that debt even if grants reimburse 50% after compliance is demonstrated.

No formal fixes yet: Committee members asked for follow-up and EGLE staff were invited to a later hearing; the committee did not vote on legislation at this session.

Speakers quoted in this story are identified in the transcript and appear in the speaker list below.