The DEQ money will be used in an area just west of downtown off M-88 to address public health risks from tetrachloroethylene, or PCE, a known carcinogen that is a byproduct of solvents used at a former dry cleaner. A DEQ investigation identified excessive levels of PCE in both soil and groundwater, and excessive air concentrations inside some nearby homes, spokesman Robert McCann said.

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Mancelona Area Water and Sewer Authority administrator Gary Knapp said he was "really gratified" the DEQ is addressing the PCE problem. But another large area of groundwater contamination will need attention and probably much more money, he said.

Knapp referred to a more than 6-mile-long, 1-mile-wide plume of groundwater contamination containing trichloroethylene, or TCE. The plume extends from the village northwest toward Schuss Mountain and Bellaire.