Authorizes a town, city, or county to establish or designate an agency to act for the town, city, or county as a local air pollution control agency (agency). Requires the commissioner of the department of environmental management (department) to enter into a contract with the agency of a town, city, or county if the agency is willing to enter into the contract. Provides that a contract between the department and the agency of a town, city, or county must: (1) require the department to advise, cooperate with, and provide technical assistance to the agency; (2) authorize the agency to undertake air pollution control activities on behalf of the department or in enforcement of ordinances of the town, city, or county; and (3) provide for the payment of fair monetary compensation for the air pollution control activities performed by the agency. Provides that: (1) the compensation paid to an agency under a contract must be at least sufficient to cover the agency's staffing and operating costs; and (2) the rate of compensation must be adjusted each year according to changes in the Consumer Price Index. Requires the department to take certain actions regarding plans and applications submitted to the United States Environmental Protection Agency under 42 U.S.C. 7437.