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GRANTS PASS, Ore. -- Federal regulators say Oregon is not doing enough to protect water and fish from pollution generated by logging on private lands, stormwater runoff from construction sites, and septic tanks.

The U.S. Environmental Protection Agency and National Oceanic and Atmospheric Administration said Thursday they plan to reject portions of Oregon's program for limiting coastal pollution from non-point sources.

State officials say they feel they are doing a good job.

Oregon stands to lose more than $1 million in federal funding in the short term, and $4 million in the next few years, if the problems are not resolved.

The action stems from a lawsuit filed by Northwest Environmental Advocates challenging federal approval of Oregon's program for controlling coastal pollution. EPA and NOAA have to make a final decision by May 15.

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