A strict new national ambient air quality standard (NAAQS) for ozone would cost the U.S. economy $270 billion and 2.9 million jobs each year between 2017 and 2040, according to a new report by NERA Economic Consulting. NERA said an ozone standard of 60 parts per billion would also make new energy production difficult in areas of nonattainment. The EPA is expected to roll out a new NAAQS for ozone in December.
The projected impact of the new NAAQS is greater when constraints on new natural gas production are taken into consideration. NERA said in this “sensitivity” case U.S. GDP would shrink by $360 billion annually and 4.3 million jobs would be lost each year between 2017 and 2040.
NERA urged the EPA to provide more complete data and analysis when proposing its new NAAQS and specify a full set of controls needed to achieve nonattainment. NERA said the EPA’s known controls represent only one-third of the reductions needed to attain an ozone standard of 60 parts per billion.
American Fuel & Petrochemical Manufacturers President Charles T. Drevna said in a statement the new NAAQS for ozone would be the most expensive regulation in U.S. history and would “end our nation’s manufacturing renaissance.”
“Lowering the current ozone NAAQS would do very little to improve the environment,” Drevna said. “The United States has reduced ozone levels by more than 30 percent since 1980. That trend will continue without lowering the current standard as counties and states across the nation continue to implement the current standard.”
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