The Pentagon on Wednesday restored $40 million for initial groundwork for a plant to destroy mustard-gas munitions at the Pueblo Chemical Depot, lifting a two-month halt on work at the plant.

The Pentagon also asked Bechtel Corp., the plant contractor, to redesign the facility and make it more cost-effective. The Pentagon wants the plant built and more than 780,000 mustard-gas weapons destroyed for $1.5 billion, not the estimated $2.5 billion it will cost under the current design, according to a memo dated Wednesday and signed by Michael Wynne, acting undersecretary of defense.

The Pentagon also restored $30 million for the Blue Grass Chemical Depot in Richmond, Ky.

Colorado's congressional delegation and Pueblo residents greeted the news with a mix of hope and concern. The project's future remains uncertain because the Pentagon has asked for no money for construction in 2006. Documents show the Pentagon wants Pueblo to remain in "caretaker status" until 2010.

"I guess we're off of full- scale life support and merely in intensive care now," said Ross Vincent, a member of the Pueblo Citizens' Advisory Commission, or CAC.

Taxpayers already have spent $125 million on the original design of the plant - work that Bechtel will try to incorporate in creating a new design, according to spokesman John Schlatter.

The $40 million - $10 million short of the $50 million originally appropriated for fiscal 2005 - will be spent on site preparation, perimeter fences and utilities, work needed for any future construction, regardless of design.

John Klomp, a former Pueblo County commissioner and CAC member, said the release of $40 million signals a commitment from the Pentagon to build the plant in Pueblo. The Pentagon ordered the Army in January to study transporting weapons to other sites, which is illegal.

"My feeling all along has been that once we spend this much money, even for phase one (infrastructure), that the project can't stop. ... I think this $40 million is more significant than just the dollars themselves. Whether it's intended or not, it's a commitment to the project," Klomp said.

The move to restore the money comes after two months of political pressure from Colorado politicians. In recent weeks, Sen. Wayne Allard, a Loveland Republican, expressed his concern about the depot to Secretary of State Condoleezza Rice, Defense Secretary Donald Rumsfeld and Deputy Defense Secretary Paul Wolfowitz. Allard co-sponsored a bill with Democratic Sen. Ken Salazar to halt the Army from spending money to study moving the munitions, and Democratic Rep. John Salazar of Manassa invited a Pentagon official to Pueblo to talk to frustrated residents.

Allard said Wednesday that he is "glad DOD has finally decided to release these funds. It is the first positive sign that we've seen in a long time. Pueblo has been patient, but they've waited long enough."

Staff writer Erin Emery can be reached at 719-522-1360 or eemery@denverpost.com.