The rules here in Canada would not permit it. I did a quick search for Oregon and found;
http://www.orosha.org/pdf/rules/division_2/div2_t.pdf
(1) Compressors used to supply air to the diver shall be equipped with a volume tank with a check valve on the inlet side, a pressure gauge, a relief valve, and a drain valve.
(2) Air compressor intakes shall be located away from areas containing exhaust or other contaminants.
(3) Respirable air supplied to a diver shall not contain:
(i) A level of carbon monoxide (CO) greater than 20 p/m;
(ii) A level of carbon dioxide (CO2) greater than 1,000 p/m;
(iii) A level of oil mist greater than 5 milligrams per cubic meter; or T EQUIPMENT / AIR SUPPLY SYSTEMS
(iv) A noxious or pronounced odor.
(4) The output of air compressor systems shall be tested for air purity every 6 months by means of samples taken at the connection to the distribution system, except that non-oil lubricated compressors need not be tested for oil mist.
Tests for carbon monoxide shall be conducted on the air in air supply systems as follows:
(a) At least daily for air supplied directly to the diver; and
(b) At least once for each group or batch of cylinders filled or purchased
Hope this answers some questions.