Energy Tomorrow Blog
Posted April 23, 2015
Posted March 17, 2015
The job that could be lost could be yours, or the job that doesn’t materialize could be the one you had your heart set on. Both scenarios could result from lower federal standards on ground-level ozone, which EPA has proposed and is expected to finalize later this year.
A NERA Economic Consulting study lays out the big-picture impacts, that a stricter ozone regulation could reduce U.S. GDP by $270 billion per year and $3.4 trillion from 2017 to 2040, resulting in 2.9 million fewer jobs or job equivalents per year on average through 2040.
Big numbers, but abstract. Embedded in them are potential real-world impacts for lots of Americans in terms of economic opportunity lost or denied, illustrated here on a state-by-state basis. These include businesses that might not be launched or expanded, infrastructure plans that could be shelved, such as roads and bridges. It could entail activities that communities might restrict as they try to comply with stricter ozone standards.
Posted February 3, 2015
Politico reports (subscription required) that the White House Office of Management and Budget on Friday finished review of EPA’s final rule to set state implementation plan requirements for the agency’s 2008 ozone standards.
Here’s the significance of that piece of wonky news: Even before EPA has finished telling the states how to implement the 2008 ozone standards, the agency already is well into setting new, potentially stricter standards. Regulation for regulation sake? It would be hard to find a better illustration.
Posted January 29, 2015
With EPA opening public hearings (subscription required) on its proposed new ground-level ozone standards, it’s important that we not let some key facts get lost in the wave of comments and anecdotes that results when there’s an open microphone available.
At issue is EPA’s plan to make more restrictive the National Ambient Air Quality Standard for ozone, from the current 75 parts per billion (ppb) to between 65 and 70 ppb. The agency is collecting input until mid-March before finalizing the rule this fall.
We’ve made the case before that the existing standards are working, that our air is getting cleaner and will continue to do so with the current rule. In short, there’s no good reason to make the standards more stringent. That’s what the science shows, as experts detailed at EPA’s hearing in Washington, D.C. (here and here). Indeed, EPA’s own data shows that ozone levels have fallen 33 percent since 1980, including 18 percent since 2000.
Posted November 19, 2014
A couple of data points to remember with EPA poised to propose new, lower ground-level ozone standards, perhaps as soon as next month:
Air quality is and has been improving under the current, 75 parts per billion (ppb) standards, which are still being implemented across the country. Meanwhile, EPA reports national average ozone levels have fallen 33 percent since 1980 and 18 percent since 2000.
Against that backdrop, EPA staff reportedly is recommending a new primary ozone standard of between 60 and 70 ppb, which could put 94 percent of the country out of compliance – potentially stunting job creation and economic growth for little, if any, health benefit.
Posted August 22, 2014
The national standard for ground-level ozone hardly needs tinkering. As noted earlier this year by Howard Feldman, API’s director of scientific and regulatory affairs, air quality in the U.S. has been steadily improving in recent years, and the health case for a more stringent ozone standard, which EPA may propose, hasn’t been made:
“We recognize that EPA has a statutory duty to periodically review the standards. However, the current review of health studies has not identified compelling evidence for more stringent standards. Tightened standards could impose unachievable emission reduction requirements on virtually every part of the nation, including rural and undeveloped areas. These could be the costliest EPA regulations ever.”
Costly nationally and to the states individually. A report for the National Association of Manufacturers says the U.S. could see a $270 billion per year reduction in GDP and 2.9 million fewer job equivalents per year on average through 2040. We’ve looked at potential state impacts in North Carolina, Ohio, Louisiana, Kentucky and Michigan. Today, Arkansas:
Posted August 21, 2014
As with other states we’ve recently highlighted – North Carolina, Ohio, Louisiana and Kentucky – the impacts of more stringent standards for ground-level ozone on Michigan could be wide and significant. According to a recentreport from the National Association of Manufacturers (NAM), Michigan could see $75.3 billion gross state product loss from 2017 to 2040 and 83,092 lost jobs or job equivalents per year.
Posted August 19, 2014
We’ve posted recently on potential roadblocks to the progress America’s energy revolution is providing – posed by administration policies and new regulatory proposals (infographic). Among them are proposed stricter standards for ground-level ozone that could put 94 percent of the country out of compliance, potentially impacting the broader economy and individual households.
Looking at the possible state-level effects of a more stringent ozone proposal in North Carolina, Ohio and Louisiana reveals a clearer picture of potential impacts on Americans’ lives. Kentucky, already at the forefront of a coal-related regulatory push, could see significant economic harm from a new ozone standard, according to a National Association of Manufacturers (NAM) report.
Posted August 18, 2014
Louisiana is an important energy-producing state – the country’s No. 2 crude oil producer at nearly 1.45 million barrels per day when federal offshore output is included. The state also is No. 2 in petroleum refining capacity.
Energy development is boosting Louisiana’s economy. Oil and natural gas extraction, refining and the pipeline industries support 287,000 state jobs and billions in household earnings and sales to state businesses, according to arecent study. At the same time, energy activity is part of the reason new, stricter ground-level ozone standards could have major impacts in Louisiana.
Posted August 15, 2014
Every county in Ohio would be in nonattainment or non-compliance with an ozone standard of 60 parts per billion (ppb), which EPA is considering to replace the current 75 ppb standard. Counties in red are those with ozone monitors located in them; those in orange are unmonitored areas that could be expected to violate the 60 ppb standard, based on spatial interpolation.
The potential economic costs to Ohio would be significant. The state could see $204.3 billion in gross state product loss from 2017 to 2040 and 218,415 lost jobs or job equivalents per year. On a practical level, manufacturers wouldn’t be able to expand to counties in red or orange unless other businesses shut down, and federal highway funds could be frozen.