OCTC Joins Coalition on Proposed PM 2.5 Changes
White House Chief of Staff Jeff Zients
Dear Mr. Zients,
The undersigned state and regional associations representing sectors and industries across the U.S. economy urge you to maintain the existing National Ambient Air Quality Standards for particulate matter (PM2.5). A proposed revision to this standard is under review by the White House Office of Information and Regulatory Affairs. This proposal could put nearly 40% of the U.S. population in areas of nonattainment,1 risking jobs and livelihoods across the nation and making it significantly more difficult to obtain permits to build new factories, bridges and roads that will power our economic growth. Implementation of the Infrastructure Investment and Jobs Act, the CHIPS and Science Act and the Inflation Reduction Act have the potential to infuse substantial investments into our states and communities, but all of that is now threatened by the permitting restrictions that would flow from this proposal. This regulation will put nearly every goal to encourage manufacturing in our states and regions at risk and could prevent the American economy from reaching its full potential.
Our members have innovated and worked with regulators to lower PM2.5 emissions significantly. The Environmental Protection Agency’s 2022 Air Trends and National Emissions Inventory report shows that PM2.5 concentrations have declined by 42% since 2000,2 driven by major emissions reductions from both mobile sources and the power sector. As a result, our air is cleaner than at any point in modern time. The current PM2.5 standard is set at 12 μg/m3; yet, some are advocating a standard as low as 8 μg/m3—which is lower than naturally-occurring levels in many parts of the country. This proposal is also far more stringent than the guidelines in place in Europe, where the current EU standard is 25 μg/m3—more than twice the current level in the U.S.
The vast majority of PM2.5 emissions in the U.S. (84%) come from wildfires, road dust and other nonpoint sources.3 As we have seen this year, the Canadian wildfires have had a more dramatic effect on air quality in the U.S. than any industrial sources. Nonattainment designations will be influenced heavily by these past three years of wildfire emissions, making compliance with existing standards—let alone any new standards—much more difficult. In many areas, there may not be sufficient offsetting emission-reduction options, and as a result, investments across the country could be brought to a grinding halt. Even without the new air quality data, the EPA’s Regulatory Impact Analysis failed to identify sufficient controls for all areas of the country to attain any of the proposed standards.4 In fact, the EPA has already proposed to disapprove a California state plan for failing to demonstrate that it can attain the current 2012 standard.5
Despite the vast majority of emissions coming from nonpoint sources, the cost of complying with this regulation will fall solely on our members. It will impact our ability to create jobs, innovate and invest in America. A recent analysis conducted by Oxford Economics and commissioned by the National Association of Manufacturers found that if the proposed PM2.5 regulations are implemented, GDP will be reduced by nearly $200 billion and nearly 1 million current jobs will be put at risk. In addition, these numbers may actually understate the problem because they do not include the most recent air quality data.
Notably, these economic impacts will be localized rather than evenly dispersed across the country. Some states will be hit harder than others, but all states will miss out on new manufacturing facilities and jobs due to the permitting roadblocks mandated as a result of tighter standards. Under the proposed rule, close to 650 counties, equivalent to 22% of all U.S. counties, could be placed out of attainment. Even in areas that would meet the EPA’s proposed standards, current PM2.5 background levels are so close to the proposed standards that no room would be left for new economic development, virtually ensuring severe economic consequences. The inability to invest in America as a result of this proposal creates perverse outcomes, in which new facilities could be located in foreign countries with more lax air standards due to these administrative hurdles—undermining the economic and environmental goals of your administration.
In practice, these proposed standards are aspirational in that they are set at background levels, which effectively means that any industrial emissions could put a locality out of attainment. While our members continue to innovate, making cleaner products and pioneering cleaner processes, no one can comply with a regulation that sets the standard at effectively zero.
We strongly encourage your administration to maintain the existing standards, which will ensure that we remain among the countries with the cleanest air in the world while also supporting much needed economic growth.
Sincerely,
Chris V. Isaacson
President and CEO
Alabama Forestry Association
Patrick Cagle
President
Alabama Mining Association
Kati Capozzi
President and CEO
Alaska Chamber
Deantha Skibinski
Executive Director
Alaska Miners Association
Danny Seiden
President and CEO
Arizona Chamber of Commerce and Industry
Randy Zook
President and CEO
Arkansas State Chamber of Commerce
Lance Hastings
President and CEO
California Manufacturers & Technology Association
Loren Furman
President and CEO
Colorado Chamber of Commerce
Chris DiPentima
President and CEO
Connecticut Business & Industry Assn, Inc.
Lisa B. Himber
President
Maritime Exchange - Delaware River & Bay
Brewster B. Bevis
President
Associated Industries of Florida
Lloyd Avram
President and CEO
Georgia Association of Manufacturers
Sherry Menor-McNamara
President and CEO
Chamber of Commerce Hawaii
Alex LaBeau
President
Idaho Association of Commerce & Industry
Benjamin J. Davenport
Executive Vice President
Idaho Mining Association
Mark Denzler
President and CEO
Illinois Manufacturers’ Association
Mark A. Biel
Chief Executive Officer
Chemical Industry Council of Illinois
Brian Burton
President and CEO
Indiana Manufacturers Association
Mike Ralston
President
Iowa Association of Business and Industry
Alan Cobb
President and CEO
Kansas Chamber of Commerce
Frank Jemley III
President and CEO
Kentucky Association of Manufacturers
Tucker Davis
President
Kentucky Coal Association
Will Green
President and CEO
Louisiana Association of Business and Industry
Greg Bowser
President and CEO
Louisiana Chemical Association
Tommy Faucheux
President
Louisiana Mid-Continent Oil and Gas Association
Mike Moncla
President
Louisiana Oil and Gas Association
Adam Haddox
Executive Director
Louisiana Pulp and Paper Association
Patrick Strauch
Executive Director
Maine Forest Products Council
Mary Kane
President and CEO
Maryland Chamber of Commerce
Brooke Thomson
President
Associated Industries of Massachusetts
John Walsh
President and CEO
Michigan Manufacturers Association
Jami Des Chenes
Executive Director
Michigan Chemistry Council
Jason Geer
President and CEO
Michigan Oil and Gas Association
Jim Holcomb
President and CEO
Michigan Chamber of Commerce
Doug Loon
President and CEO
Minnesota Chamber of Commerce
John McKay
President and CEO
Mississippi Manufacturers Association
Ray McCarty
President and CEO
Associated Industries of Missouri
Todd O’Hair
President and CEO
Montana Chamber of Commerce
Bryan Slone
President
Nebraska Chamber of Commerce & Industry
Ray Bacon
Executive Director
Nevada Manufacturers Association
Michael Skelton
President and CEO
Business & Industry Assoc. New Hampshire
Michele N. Siekerka, Esq.
President and CEO
New Jersey Business & Industry Association
Carla J. Sonntag
President and CEO
New Mexico Business Coalition
Heather C. Mulligan
President and CEO
The Business Council of New York State, Inc.
Harold King
President
Council of Industry (Hudson Valley)
Peter Ahrens
Executive Director
Buffalo Niagara Manufacturing Alliance
Gary Salamido
President and CEO
NC Chamber
Ross M. Smith
President
North Carolina Manufacturers Alliance (NCMA)
Arik Spencer
President and CEO
Greater North Dakota Chamber
Ryan Augsburger
President
Ohio Manufacturers Association
Steve Stivers
President and CEO
Ohio Chamber of Commerce
Jenn Klein
President
Ohio Chemistry Technology Council
Pat Tiberi
President and CEO
Ohio Business Roundtable
Robert Brundrett
President
Ohio Oil and Gas Association
Chad Warmington
President and CEO
State Chamber of Oklahoma
Brook A. Simmons
President
The Petroleum Alliance of Oklahoma
Angela Wilhelms
President and CEO
Oregon Business & Industry
David N. Taylor
President and CEO
Pennsylvania Manufacturers' Association
Darlene J. Robbins
President
NE Pennsylvania Manufacturers & Employers Assoc.
Matt Gabler
Executive Director
Pennsylvania Forest Products Association
Peter Vlahos
President
Pennsylvania Aggregates & Concrete Assoc. (PACA)
John Olson
President
Pennsylvania Builders Association
Luke Bernstein
President and CEO
Pennsylvania Chamber of Business & Industry
Steven Kratz
President
Pennsylvania Chemical Industry Council
Rachel Gleason
Executive Director
Pennsylvania Coal Alliance
Daniel Weaver
President and Executive Director
Pennsylvania Independent Oil and Gas Association
Ted Harris
Executive Vice President
Pennsylvania Petroleum Association
Matt Smith
President
Greater Pittsburgh Chamber of Commerce
David M. Chenevert
Executive Director
Rhode Island Manufacturers Association
Bob Morgan
President and CEO
South Carolina Chamber of Commerce
Sara H. Hazzard
President and CEO
South Carolina Manufacturers Alliance
David Owen
President
South Dakota Chamber of Commerce and Industry
Kwinn Neff
President
South Dakota Mineral Industries Association
Bradley Jackson
President and CEO
Tennessee Chamber of Commerce
Candace Dinwiddie
Executive Director
Tennessee Forestry Association
Chuck Laine
President
Tennessee Mining Association
Tom Midyett
President
Tennessee Paper Council
Glenn Hamer
President and CEO
Texas Association of Business
Richard A. “Tony” Bennett
President and CEO
Texas Association of Manufacturers
Todd R. Bingham
President and CEO
Utah Manufacturers Association
Brian Somers
President
Utah Mining Association
Rikki Hrenko-Browning
President
Utah Petroleum Association
William Driscoll
Vice President
Associated Industries of Vermont
Brett Vassey
President and CEO
Virginia Manufacturers Association
Kristofer Johnson
President and CEO
Association of Washington Business
Rebecca McPhail
President
West Virginia Manufacturers Association
Kurt Bauer
President and CEO
Wisconsin Manufacturers and Commerce
Robert Jensen
Executive Director
Alliance of Wyoming Manufacturers
Travis Deti
Executive Director
Wyoming Mining Association
Andrew Shall
President
Graphic Media Alliance (OH, MI, KY)
Keith A. Christman
President
Decorative Hardwoods Association
Jaret Gibbons
Executive Director
Appalachian Region Independent
CC: The Honorable Lael Brainard, Director of the National Economic Council
The Honorable Michael Regan, Administrator, EPA
Steve Ricchetti, Counselor to the President
Ali Zaidi, National Climate Advisor
John Podesta, Counselor to the President
Gene Sperling, Counselor to the President
1 U.S. Air Quality Standards and the Manufacturing Sector (April 2023), https://documents.nam.org/COMM/NAM_Air_Quality_Standards_Analysis_Web_Version.pdf
2 https://gispub.epa.gov/air/trendsreport/2023/#air_trends
3 Id
4 EPA PM2.5 RIA, see https://www.epa.gov/system/files/documents/2023-01/naaqs-pm_ria_proposed_2022-12.pdf
5 See https://www.govinfo.gov/content/pkg/FR-2022-10-05/pdf/2022-21492.pdf in which the EPA states the following: “We now propose that the State has not demonstrated that it is capable of fulfilling the remaining aggregate tonnage commitments necessary to attain the 2012 annual PM2.5 NAAQS in the SJV by December 31, 2025.”