A new study commissioned by the National Association of Manufacturers (NAM) estimates that the Obama Administration's new ozone restrictions could reduce GDP by $270 billion per year and carry a compliance price tag of $2.2 trillion from 2017 to 2040 - the most expensive regulation the U.S. government has ever issued.
In total, the study finds that letting the EPA revise the ozone standard for manufacturing from 75 parts per billion (ppb) to 60 ppb - below what even exists at national parks, such as Yellowstone and Denali
- Reduce U.S. GDP by $270 billion per year and $3.4 trillion from 2017 to 2040;
- Result in 2.9 million fewer job equivalents per year on average through 2040;
- Cost the average U.S. household $1,570 per year in the form of lost consumption; and
- Increase natural gas and electricity costs for manufacturers and households across the country.
The National Association of Manufacturers (NAM) is the largest manufacturing association in the United States and they note that manufacturing contributes $2.08 trillion to the U.S. economy annually and accounts for two-thirds of private-sector research and development. President Obama halted the EPA's most recent proposal to modify the federal ozone standard in 2011, citing "regulatory burdens and uncertainty" but now the manufacturing sector is getting new regulatory requirements on greenhouse gas rules and planned ozone rules.
"We are rapidly approaching a point where we are requiring manufacturers to do the impossible," added NAM Vice President of Energy and Resources Policy Ross Eisenberg. "It is vital that the Obama Administration allow existing ozone standards to be implemented rather than move the goalposts with another set of requirements for manufacturers. Trillions of dollars are at stake."
"This study uses the most up-to-date available EPA information and a state-of-the-art model of the economy to assess the compliance costs and economic impacts of a stricter ozone standard, concluding, as the EPA did in 2010, that the costs would be enormous," said NERA Economic Consulting Senior Vice President and Environment Practice Co-Chair Dr. David Harrison. "The EPA needs to greatly expand the scope of its analyses if it is to thoroughly assess the cost and impacts of a revised ozone standard."
Report: Assessing Economic Impacts of a Stricter National Ambient Air Quality Standard for Ozone
New EPA Ozone Regulations Could Cost U.S. Economy $3.4 Trillion