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AGC Comments on EPA’s Ozone Rule Highlight the Crippling Economic Impacts Possible In Areas of Nonattainment

Comments Due by March 17

AGC is in the process of evaluating the U.S. Environmental Protection Agency’s proposed revisions to National Ambient Air Quality Standards (NAAQS) for ozone. The proposal would greatly increase the stringency of the ozone NAAQS at a time when implementation of the current 2008 standard is still underway and despite key uncertainties in the underlying science.  There is strong data that casts doubt on whether lowering ozone levels beyond the current standard will have any significant health benefit.  AGC will recommend that EPA retain the current ozone standard, which is set at 75 ppb (parts per billion).  The 90-day public comment period closes on March 17.

EPA is seeking comment on setting the standard anywhere from 60-70 parts per billion (ppb).  Stricter rules would impact construction in the 358-558 counties that are predicted to not meet EPA’s proposed range, resulting in non-compliance or “nonattainment.”  The lower ozone concentration ranges being considered by EPA would be at or below naturally-occurring ozone levels in many rural areas, particularly the Western part of the country.  AGC plans to highlight the crippling economic impacts that could come to pass in areas of nonattainment. 

Under existing EPA rules, failing to meet the standard results in a “nonattainment” designation under the Clean Air Act (CAA), which will hurt both large and small businesses and impose major practical consequences for contractors.  Equipment owners may face restrictions on the use and/or operation of their off-road diesels. There is also the potential for federal sanctions, including emissions caps limiting economic development, and the loss of federal highway transportation dollars for any state that fails to develop a suitable State Implementation Plan, plus the halting of federally-supported highway and transit projects in a nonattainment area if the state cannot demonstrate that the project will conform to the aforementioned plan. AGC maintains that restrictions on the use and operation of diesel equipment and the loss of highway funds are, in essence, bans on construction.

Industry groups have billed the new ozone proposal the most expensive regulation ever.  The National Association of Manufacturers has put the costs at $270 billion a year.  AGC is evaluating the rule now, working with other trade association groups representing affected industries, and plans to submit construction industry-specific comments later this month.  For more background, click here.  To file your own comments, visit here and click on the blue "Comment Now!" button on the right side of the screen.     

For more information, please contact Scott Berry at berrys@agc.org or Leah Pilconis at pilconisl@agc.org