North Dakota Faces Economic Impact from Proposed EPA Ozone Rule

/// NEWS STORIES | PRESS RELEASES - FEBRUARY 27, 2015

 

 

 

NAM Study Finds Revised Rule will Bring Income Losses Equivalent to 1,779 North Dakota Jobs Annually; Cost U.S. Economy $140 Billion Per Year

North Dakota manufacturers and households could face significant economic consequences if the Environmental Protection Agency (EPA) moves to tighten its ground-level ozone standard later this year, according to an update of a landmark study conducted by National Economic Research Associates (NERA) Economic Consulting for the National Association of Manufacturers (NAM) and the North Dakota Chamber of Commerce. The study found that a new EPA proposal to lower the ozone standard from 75 to 65 parts per billion (ppb) could cost Americans trillions of dollars, confirming that a revised ozone standard is poised to become the most costly regulation ever issued by the U.S. government.

In North Dakota, the study found that a new federal ozone standard could put 1,779 job equivalents at risk annually and cost the state $3 billion in lost economic activity. The tightened standard could also reduce U.S. Gross Domestic Product by as much as $1.7 trillion through 2040 and dramatically increase energy costs for all consumers.

Other estimated impacts to North Dakota’s economy outlined in the study include:

• $3 billion in Gross State Product loss through 2040;

• 1,779 fewer North Dakota jobs (or job equivalents) each year through 2040;

• $830 more paid by North Dakota households annually in the form of lost consumption;

“Manufacturers in the United States are in the midst of a resurgence that’s fueling job growth and economic recovery nationwide, but the proposed tightening of the ozone standard puts our momentum at great risk,” NAM President and CEO Jay Timmons said. “This data confirms our long-held concern that revisions to the ozone standard represent one of the most significant threats not just to our manufacturing sector, but to our economy at large.”

“North Dakota’s economy has expanded at an incredible rate every year for the last decade. This is due, in large part, to a stable regulatory environment,” said Andy Peterson, CEO and president of the Greater North Dakota Chamber. “Applying unattainable ozone regulations will have a dampening effect at a time when our state’s economy is a bright spot within the US economy. As the state’s largest business advocacy organization, it’s important to consider the effects of these proposed regulations upon the businesses that support the state’s economic foundation.”

The EPA unveiled its latest proposal to tighten the ozone standard to between 65 and 70 ppb in November of 2014. President Barack Obama halted the EPA’s prior effort to reduce the standard in 2011, citing the “regulatory burdens and uncertainty” created by the rule. The Administration is accepting public comments on the proposed rule through March 17.

To read the executive summary of the study, click here. For more information, visitwww.nam.org/ozone.

About NAM: The National Association of Manufacturers (NAM) is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12 million men and women, contributes $2.08 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for two-thirds of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.

About NERA: National Economic Research Associates (NERA) Economic Consulting is a global firm of experts dedicated to applying economic, finance and quantitative principles to complex business and legal challenges. For more than half a century, NERA’s economists have been creating strategies, studies, reports, expert testimony and policy recommendations for government authorities and the world’s leading law firms and corporations. NERA brings academic rigor, objectivity and real-world industry experience to bear on issues arising from competition, regulation, public policy, strategy, finance and litigation.