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The Arizona business community sounded the alarm at a recent hearing at the state Capitol over federal air quality standards that are likely to negatively affect the state鈥檚 economic growth despite efforts by job creators and state and regional governments to reduce greenhouse gas emissions. 

Danny Seiden, president and CEO of the Arizona 小红帽直播app of Commerce & Industry, to the Joint Legislative Ad Hoc Committee on Air Quality and Energy that the Environmental Protection Agency鈥檚 oversight of the Clean Air Act of 1970 has undermined the spirit of state-federal cooperation that defined the legislation at the time of its adoption. 

鈥淭his is supposed to be a cooperative process, and we can find solutions,鈥� Seiden said. But he noted that the Greater Phoenix region is poised to move from its current designation of 鈥渕oderate nonattainment鈥� under federal air quality standards to 鈥渟erious nonattainment鈥� and that a proposal of even stricter standards being implemented following a multiyear review process would be 鈥渘ear impossible (to meet) with the control measures that we have.鈥� 

Draft revisions to the National Ambient Air Quality Standards would, to the National Association of Manufacturers, put at risk more than 300,000 manufacturing jobs nationally and would put more than a half-million jobs in a nonattainment zone by 2027. 

The serious nonattainment designation will mean new regulations on all types of businesses, not just large industrial employers like manufacturers, and the burden will be borne not only by existing businesses but will also be a drag on future economic development. 

Seiden said companies eyeing expansion in Maricopa County make scientific estimates of their likely emissions levels, particularly ozone. 鈥淚f it crosses a certain threshold, you鈥檙e required under Title V of the Clean Air Act to get something known as a New Source Review Permit.鈥� 

The problem, though, Seiden said, is that those permits can only be obtained in a nonattainment zone through the purchase of emission credits, known as offsets. But in Arizona there are no credits available. 

The Maricopa Association of Governments, which has responsibility for air quality in the greater Phoenix region, has been waiting since 2019 for a response from EPA on proposals to adopt new, nontraditional emissions offsets. 

EPA鈥檚 foot-dragging was by Rep. Debbie Lesko, R-Ariz., in a June hearing of the House Energy & Commerce Committee. An EPA official at the hearing provided little insight except that the agency was aware of the request. The agency official acknowledged, however, that EPA could provide a supportive role to states and air quality districts in finding creative air quality solutions. 

At the state hearing, Seiden gave the panel a hypothetical example of a company seeking to expand its operations in the Valley that might offer to electrify a school district鈥檚 bus fleet. Under the current rules, however, the company would not receive credit for doing so even though it would result in a reduction in emissions. 

Still, Seiden said, even the most extreme examples of emission reduction would have little impact on the region鈥檚 ability to reach attainment, including even removing every vehicle from the metropolitan area鈥檚 roads. 

Seiden stressed throughout his remarks, however, that his appeal to lawmakers and to regulators is not out of a desire for businesses to dodge any responsibility for cleaner air, and he touted job creators鈥� success over the last 20 years to reduce greenhouse gas emissions. But, he said, the business community is powerless to control the 80% of emissions that originate from outside the Maricopa County region nonattainment zone from places like California and Mexico and is further hamstrung by rules requiring any offsets to be obtained from within the nonattainment zone. 

鈥淲e are being punished for what other states and other countries are doing,鈥� he said, pointing out that even reducing air pollution in a neighboring state would not aid Arizona鈥檚 attempts not to be slapped with the serious nonattainment designation. 

鈥淭here is a solution out there for us,鈥� Seiden said. 鈥淗owever, if the goalposts keep moving, if we鈥檙e not provided flexibility in our offsets, we鈥檙e not going to be able to grow.鈥�