INDIANAPOLIS | Despite intensifying pressure from environmentalists and lawmakers in neighboring states, Gov. Mitch Daniels on Wednesday declared Indiana will not retreat from its decision to allow the BP oil refinery in Whiting to release more pollutants into Lake Michigan.

A few hours before the U.S. House overwhelming approved a resolution rebuking both BP and the state, the governor was asked whether he considered the more lenient wastewater permit a done deal.

"Yes," Daniels replied. "We've checked it and rechecked it. They're in complete compliance with Indiana law, which is tougher than the federal law."

The new discharge permit, which BP says is needed to proceed with a $3 billion plant expansion, allows the refinery to increase daily ammonia output 54 percent and release 35 percent more suspended solids -- silty materials leftover after wastewater is treated and filtered. While significantly greater than current levels, the increased discharges still fall within federal limits.

The plan expansion, which will enable the lakefront facility to process heavier Canadian crude oil, is expected to create 80 permanent refinery positions and more than 2,000 temporary construction jobs.

"We've got thousands of jobs that will be at risk if it doesn't go forward," Daniels said."The No. 1 reason for $3 gasoline is the lack of refinery capacity in this country, and here's one of the biggest steps forward for the Midwest and really the whole nation. I don't think it should be held up without a good scientific reason, and none has been provided."

BP plans to spend $150 million to upgrade the Whiting refinery's existing wastewater treatment plant. But environmental groups and elected officials from neighboring Great Lakes states argue Indiana should require stricter pollution controls.

After a closed-door meeting Tuesday with members of Illinois' congressional delegation, BP officials agreed to review their water treatment options and report back to lawmakers in September.

But with Daniels expressing no interest in revising the state permit, any move to impose stricter wastewater controls appears to rest with the company.

"Since it's a final permit, we no longer have a final oversight role," U.S Environmental Protection Agency spokeswoman Phillippa Cannon said Wednesday. "We'd be very willing to participate in discussions if (BP officials) are willing to go beyond what the permit conditions say."

The controversy could land in the courts. Illinois Gov. Rod Blagojevich threatened Tuesday to pursue a federal lawsuit if Indiana does not rescind the permit.

Daniels was asked whether he thought Illinois leaders, including Blagojevich, U.S. Sen. Richard Durbin and U.S Rep. Rahm Emanuel, would be bashing BP as lustily if Illinois jobs were at stake in the refinery expansion.

"Good question," Daniels said. "But I'll tell you there are Illinois motorists at stake, and I don't doubt that they've raised all kinds of noise about the price of gasoline. Next time you pay $3, remember those names."

A number of groups, including the Michigan City-based Save the Dunes Council are circulating petitions against the BP permit.

Breakout

County weighs in, too

The Lake County Board of Commissioners joined the list of groups weighing in, unanimously endorsing a resolution Wednesday that demands the state tear up the wastewater permit. "BP should be cleaning up the lake, not dumping into the lake," said Commissioner Gerry Scheub, D-Schererville.