Polluters could be paid to comply

Proposal would offer financial incentive for meeting state standards

Associated Press

INDIANAPOLIS — A new environmental plan under consideration could allow Indiana companies to save as much as $25,000 a year by coming into compliance with state-mandated pollution standards.

But some environmentalists say the plan will, in essence, be rewarding companies for polluting.

The 100 Percent Club program was announced earlier this year by Lt. Gov. Joe Kernan and initially will target major environmental permit holders.

About 3,000 businesses and municipalities in Indiana pay for major permits, ranging from $500 to $200,000 a year. The permits bring in about $20 million and contribute to IDEM's $120 million annual budget.

Cash rebates for members of the 100 Percent Club could total up to $25,000 a year per company.

"Our hope is, by bringing recognition to those companies that are in compliance, it will encourage other companies to step up their efforts to reach compliance and go beyond," said Lori F. Kaplan, commissioner of the Indiana Department of Environmental Management.

But some environmental activists question the plan.

"That's a serious flaw in this. You could have a power plant that's operating under its permit that gets this reward, but is one of the biggest polluters in the world," said John Blair, president of Valley Watch, an environmental and public health group.

At least 12 Indiana companies, excluding utilities, released a million pounds of pollutants or more into Hoosier skies and waterways in 1997.

Those include several steelmakers, refineries and Eli Lilly and Co.'s drug labs, according to Environmental Protection Agency data.

A company that violates its limits can face financial penalties, but many violations never reach that point, and minor ones will probably not exclude a company from acceptance in the 100 Percent Club, state officials said.

Blake Jeffery with the Indiana Manufacturers Association said the plan would allow IDEM to focus on other businesses in trouble.

"It's nice to recognize companies that are putting forth a lot of effort. To achieve 100 percent (environmental) compliance, you really have to achieve 110 percent," Jeffery said, referring to the myriad of complicated environmental regulations that many companies face.