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Environmental Protection Agency (EPA) Administrator Lee Zeldin and U.S. Sen. Mark Kelly (D-Ariz.) on Wednesday met with industry and government representatives to discuss the economic implications of increasingly stringent federal air quality regulations in Maricopa County. The discussion comes as the county faces the potential of being reclassified into serious nonattainment under federal ozone standards鈥攁 move that would significantly tighten emissions restrictions on businesses and impact economic growth.

A stakeholder roundtable hosted by the Arizona 小红帽直播app of Commerce & Industry brought together key industry representatives to examine the regulatory challenges facing Arizona. 

Business leaders underscored concerns that, despite significant investments in emissions reduction, the state has little control over the majority of its ozone pollution. According to the Maricopa Association of Governments and the EPA, as much as 80% of Arizona鈥檚 ozone pollution originates from sources outside the state, including wildfires, international pollution, and emissions drifting in from neighboring states.

Economic risks

Arizona 小红帽直播app President and CEO Danny Seiden gave a presentation highlighting the economic risks posed by stricter regulations that fail to account for these external pollution sources. He pointed to data showing that even if every industrial business in Arizona were to cease operations, ozone concentrations would only decrease by a negligible 1.5 parts per billion鈥攊llustrating the disproportionate burden placed on businesses.

The urgency around the issue stems from the EPA鈥檚 indication that Maricopa County could soon be moved into serious nonattainment under the 2015 ozone standards. Such a designation would lower the emissions threshold for major sources from 100 tons per year to 50, making it far more difficult for existing businesses to expand or for new companies to invest in Arizona. 

The ripple effect could affect some of the state鈥檚 fastest-growing industries, including semiconductor manufacturing, electric vehicle production, and battery development, which would trigger significantly stricter emissions limits on businesses and higher costs for new and expanding industries.

Arizona business leaders at the meeting urged the EPA to consider practical solutions, including expanding emissions reduction credit (ERC) programs, which allow businesses to earn credits by reducing emissions below regulatory limits. These credits can then be banked or traded to help other entities meet compliance requirements. Expanding ERC programs could provide businesses with greater flexibility in meeting environmental regulations while incentivizing investment in cleaner technologies and pollution control measures.

Throughout the discussion, there was a shared commitment to balancing economic growth with environmental responsibility. Administrator Zeldin, Sen. Kelly, and Arizona business leaders expressed a willingness to work together toward solutions that protect air quality without stifling the industries driving the state鈥檚 economy. The dialogue underscored the importance of continued collaboration between regulators, policymakers, and the private sector to develop policies that are both effective and achievable.

Kelly and Zeldin pledge to seek solutions

鈥淲hat we want here in Maricopa County, and across the state is clean air, lower ozone, but at the same time a growing economy,鈥� Kelly said at a press conference following the meetings with industry and government leaders. 鈥淭here鈥檚 some actions that EPA can take, especially when they put their great scientists on this problem. We can figure this out. I鈥檓 convinced we can do that.鈥�

Zeldin, who was once stationed at Ft. Huachuca in Sierra Vista as an Army officer, was also confident EPA could work with Kelly and Arizona stakeholders to find a solution that promotes both air quality and a growing economy. He said that Kelly personally requested a visit to Arizona to meet with state leaders once the administrator鈥檚 confirmation process was complete. 

鈥淭hey provided very insightful and important feedback on how EPA can better fight for and assist these local leaders to be able to ensure Maricopa County and Arizona thrive,鈥� Zeldin said. 鈥淓PA wants to do our part. We want to work closely with Sen. Kelly and the congressional delegation.鈥� 

Seiden said he was encouraged by the tenor of the conversation and Kelly and Zeldin鈥檚 desire to work together to find a solution to the area鈥檚 air quality regulatory challenges.

鈥淭his was a great meeting. We鈥檙e very grateful to Sen. Kelly for his leadership in bringing Administrator Zeldin out here today. He heard from members of every industry group you can imagine in Arizona lay out what our concerns are with both creating clear air for our employees and also creating high-paying and great jobs for the future of this state.鈥�