Environmental activists objected to yesterday's decision by the Allegheny County Board of Health to spend $1.3 million from its Clean Air Fund to pay for asbestos removal at a former steel mill site in Duquesne.

They questioned the legality of the grant and said that the fund, which consists of monies collected in fines from air polluters, is intended for public health purposes, not economic development projects.

James Flynn, the county manager and health board member who made the proposal, said the use of money from the fund is within the law. The expenditure, approved unanimously by the health board, is the biggest single expenditure ever made from the fund in its 25-year history.

"This is the first time money has been used from the fund for anything like this," said Guillermo Cole, spokesman for the Allegheny County Health Department.

The grant, which was made to the Allegheny County Department of Economic Development, would be put toward asbestos remediation and demolition of 15 inactive smokestacks at a 225-acre former U.S. Steel plant, Mr. Flynn said.

That would kick off the final phase of redevelopment of the site, which is owned by the Regional Industrial Development Corp. of Southwestern Pennsylvania.

The asbestos project is estimated to cost $2.6 million to $2.8 million, and about $1.5 million has been obtained from the U.S. Environmental Protection Agency and other agencies. Clean Air Fund money would make up the shortfall, he said.

Air pollution sources are not eligible to get money from the fund, but a review of the regulations by the county legal department indicated that the Duquesne project would not violate the prohibition, Mr. Flynn said.

"These stacks have been inactive for 15 or 20 years," he explained. "They are ex-sources."

As of Tuesday, $7.4 million was in the fund, Mr. Flynn said. He suggested that the Duquesne grant could be a "pilot project" or "test case" for future Clean Air Fund disbursements for redevelopment of other brownfields.

"I'm just worried this is going to set a poor precedent for how the Clean Air Fund money is used," Rachel Filippini, executive director of the Group Against Smog and Pollution, told the board just before it adjourned. "I know that you passed it, but I'd ask that you reconsider."

She noted that fund money is not supposed to be allotted to permitted air pollution sources. The smokestacks are currently inactive, but "as soon as you go to remove the asbestos, you're going to need a permit," she pointed out. "So to me, that's the legal reason for not using Clean Air funds for this."

The required permit must be issued by the Health Department, which also would review the plan, monitor the process and inspect the completed project.

The Health Department also has the authority to levy fines against the contractor if there are problems during the project. That money would go into the Clean Air Fund, as all such penalties do.

Myron Arnowitt, Clean Water Action's Western Pennsylvania director, said it doesn't make sense for the Health Department to provide money to enable a company to meet environmental regulations, he said.

"RIDC is obligated to do the asbestos removal if they are going to redevelop that site," he said. "The Health Department is now paying RIDC to do what they are required to do."

The health board members did not respond to Ms. Filippini and Mr. Arnowitt's remarks.

After the meeting, Mr. Flynn said he "respectfully disagreed" with their position, in part because the grant would be used solely for dealing with the stacks, not for the economic development of the area.

"This is the first time the Health Department, to my knowledge, has provided funds for an initiative of this sort," he acknowledged. "Doesn't mean that it's wrong because it's the first time. It's within the scope of the authority of the Board of Health to use the funds for this type of cleanup."

In the hallway, the Rev. Ricky Burgess, another board member, told Ms. Filippini: "I want to reassure you that we have given this some thought and it's not rash or brash."

The air pollution advisory committee also must be consulted about the grant award, but it's not clear what, if anything, would happen if it disagreed with the health board, Mr. Arnowitt said. To move forward, County Council and the county executive have to approve it.

"The County Council really does get the final say on this," he said. "So we will be communicating our concerns to council."

He noted that other funding streams, such as the recently approved Growing Greener bond issue, are available for brownfield redevelopment.