(1) A political subdivision of the state may enter into and perform, with other political subdivisions of the state or with the department, contracts and agreements as they find proper for establishing, planning, operating, and financing air pollution programs.
(2) The agreements may provide for an agency to:
(a) supervise and operate an air pollution program;
(b) prescribe the agency's powers and duties; and
(c) fix the compensation of the agency's members and employees.