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Business Leaders Disappointed with Proposed EPA Air Regulation

WashingtonBusiness Roundtable, representing CEOs of major U.S. companies operating in every sector of the economy, today expressed serious concerns about the excessive costs and limited effectiveness of the Environmental Protection Agency (EPA) proposal to tighten the National Ambient Air Quality Standard (NAAQS) for ozone from 75 parts per billion (ppb) to between 70 and 65 ppb.

“Fully one-third of Americans live in regions of the country that do not meet the current ground-level ozone standard, and we believe that efforts should focus on closing that gap before the standard is further tightened,” said Business Roundtable President John Engler. “The burdensome costs associated with chasing an even stricter standard would act as a brake on investment, jobs and much-needed economic growth.”

EPA last reviewed the NAAQS for ozone in 2011, and the Administration chose at that time to leave the standard at 75 ppb. In an October letter, Business Roundtable asked EPA Administrator Gina McCarthy to include the current 75 ppb standard in the range that would be proposed for notice and comment to “ensure that a robust record is developed covering a variety of options for the agency to consider.”

While we are pleased that EPA is accepting comments on retaining the current standard, if EPA ultimately adopts a final rule within the proposed range, the new standard is likely to be the most costly environmental regulation ever proposed, stifling job growth, eroding America’s manufacturing base and threatening a still-fragile economy.

According to EPA data, if the current standard were tightened to 65 ppb, an estimated 59 percent of the U.S. population would live in regions of the country that would not be in compliance. Even a less stringent tightening to 70 ppb would mean that 48 percent of Americans would live in areas that did not meet the standard. Moreover, many regions of the country would be unable to reach attainment with existing emissions control technology. As a result, needed investment would be stymied and industrial and manufacturing operations could be uneconomical.

“Business Roundtable has consistently advocated for smart environmental regulations that address societal concerns without imposing undue costs on the economy and American workers,” Engler said. “In this instance, that argues for leaving the current ozone standard in place and focusing on meeting that standard across the entire United States.”

Click here to view an online, interactive map that illustrates the potential cost of EPA’s proposed regulation on a county-by-county basis.

Click here to view the October letter to Administrator McCarthy from Business Roundtable.

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