Ozone Regulations

Potentially the Costliest Regulation in History Threatens Manufacturing Comeback


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A recent study by NERA Economic Consulting and commissioned by the NAM, Potential Economic Impacts of a Stricter Ozone Standard (Executive Summary | Full Report) reveals that a new ozone regulation from the Obama Administration could cost $270 billion per year and place millions of jobs at risk. This would be the most expensive regulation ever imposed on the American public.

Figure 1: Regulations Today: 8-Hour Nonattainment Areas, 2008 Standard (75 ppb)
Regulations Today: 8-Hour Nonattainment Areas, 2008 Standard
Source: EPA
Figure 2: New Regulations: Projected 8-Hour Nonattainment (60 ppb)
Ozone-Figure2 New Regulations
Source: 2011-2013 data accessed from http://www.epa.gov/airtrends/ and http://www.epa.gov/airdata/ on 6/2/2014

In Figure 1 below, areas in color have been classified by EPA as being in "nonattainment" with the 2008 Ozone Standard. Manufacturers in nonattainment areas will not be able to expand operations without other businesses in the area reducing emissions or shutting down operations. Economic growth in these regions will be severely hampered if not completely halted.

The areas in orange and red in Figure 2 represent areas that could be in nonattainment when EPA issues new Ozone regulations. With nearly all of the country in nonattainment, U.S. manufacturing growth would come to a standstill; our domestic energy boom could go bust; and existing plants would be required to install additional expensive equipment. Nonattainment means no growth.

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