The city of Eugene has stepped up efforts to help Spectra Physics Inc. expand in the face of a wetlands problem.

At the city's request, Rep. Larry Campbell, R-Eugene, has sponsored a bill in the legislature that would allow the company to use state lottery money to replace wetlands it plans to develop In the expansion. Funding would fall under the lottery's special public works program.

"This (bill) would provide mitigation for wetlands so Spectra-Physics could expand Its facility In Eugene," Campbell said. "Without this, there is a question as to whether or not they could expand."

The company was one of a number of property owners who learned last summer that more than 700 acres of Industatly zoned property in west Eugene appears to meet federal and state definitions of wetlands, which are protected for theIr unique habitat and their contribution to water qualIty, flood control and recreational opportunities.

Wetlands were discovered on the rear portion of Spoctra-Physics' west Eugene 31- acre site, hampering the company's expansion plans. Spectra-Physics manufactures laser-scanning devices for grocery checkout stands and other retail uses.

The bill faces opposition from the state Economic Development Department, which submitted a letter at a publlc hearing last week objectng to the measure because of the number of other public works projects atready seeking lottery support.

The Port of Portland, which has its own wetlands problems, and the Oregon Public Ports Association support the bill.

Charles Missar, the Spectra-Physics' facilities manager, said Monday that the company is continuing to work with government agencies to obtaIn the permits necessary for expansion which after several phases would add 700 to 1,000 employees to the company's current work force of 500.

"At this poInt, we're just tryIng to get all the permits in place to do that," Missar said. "It's not like It's going to happen next Thursday."

The city last fall had asked the state for help in covering the estimated $240,000 cost of replacIng the six acres of wetlands that would be lost in the expansion

The state attorney general's office issued a ruling however, that buying land for wetland mitigation projects in support of industrial or commercial development does not meet the funding criteria for the lottery-backed special public works program, which was created for infrastructure projects.

Rep. Jim Edmunson, D-Eugene, another sponsor of the bill, said it's time for the state "to come to grips with the wetlands issue."

"For a long time, wetlands were swamplands and mud puddles, and now we're beginning to recognize that wetlands may be one of the most important environmental concerns in development," he said.

The proposed legislation "says we're not just talking about filling wetlands" but also about replacing lost wetland environment, "so a little fish or an insect or a plant that depends on the wetlands may be moved, but it won't be destroyed by development," he said.

The company is proposing to retain one wetlands area on its property and fill another, which requires permits from the U.S. Army Corps of Engineers and the Division of State Lands. If the agencies issue a fill permit, they are almost certain to require replacement of the lost wetlands elsewhere.

The city also Is supporting other legislative efforts to deal with wetlands, including clarifying the definition of wetlands and identifying the Division of State issues as the lead agency for wetlands issues in the state, said Linda Lynch, the city's legislative coordinator.