New ozone rules send message: Closed for business

Virginians still climbing back from recession are about to be dealt another economic blow in the form of the most expensive environmental regulation in U.S. history.

Astonishingly, this economic battering from Washington is entirely discretionary. No law requires the U.S. Environmental Protection Agency (EPA) to revise its limits on ozone emissions, yet the agency is moving ahead despite the harm the additional multibillion-dollar mandates will inflict on growth and employment.

Most of Virginia's major population centers, including much of Northern Virginia and the greater Richmond, Harrisonburg and Charlottesville metropolitan areas, would be unable to comply with the new standard.

You might as well put a sign up on the front door of Virginia companies declaring, "Closed for business."

At issue is the EPA's proposed change to the National Ambient Air Quality Standards (NAAQS) governing ground-level ozone, a component of smog. Ozone is produced by a wide range of human activity, including driving vehicles, home construction, power generation, mining, farming and manufacturing.

Following years of scientific review, public comment and legal proceedings, the Bush administration set a new limit of 0.075 parts per million (ppm) in 2008, a reduction from the current enforced level of 0.084 ppm. Now, before that limit goes into effect, the EPA is proposing even lower levels ranging from 0.60 to 0.70 ppm.

EPA's own estimates place the potential cost of its new ozone rules at a range of $20 billion to $90 billion — a year! The agency admits it may have understated the costs because the technology being counted on to reduce emissions does not even exist yet.

Everyone wants clean air, and the air in fact is getting cleaner. Major forms of pollution have fallen significantly since the Clean Air Act was last revised in 1990. Ozone levels declined 14 percent, even as America's population and economy grew.

All Virginia counties that the EPA now monitors for ozone levels are in compliance with the current limits. At their most extreme, the lower limits the EPA is considering would put all but two of those counties, Rockbridge and Wythe, out of compliance, designating them as "non-attainment" areas.

The consequences of falling into non-attainment status are severe. Federal and state mandates affect counties and employers. New or expanding business must obtain emissions offsets and install "all known control measures," a constantly moving technological target.

If a company cannot meet the requirements, then it must either shelve its plans and the jobs the plans would create, or move to another part of the country where it will be in compliance.

Or it may just take its jobs to another country entirely.

EPA is under no immediate deadline to impose these onerous ozone rules. Federal law requires the EPA to assess air quality standards on a regular five-year basis, and according to this schedule, the agency should wait until 2013.

Nonetheless, the EPA is proceeding even though a scientific panel convened by the agency is only halfway through its analysis.

EPA Administrator Lisa Jackson has signaled her intention to impose the drastically lower limits despite the nation's economic difficulties, including June's 9.2 percent unemployment rate.

Thankfully, final approval belongs to President Obama, who has repeatedly told executive branch agencies to make jobs and economic growth a priority when developing regulations.

The president could reinforce the seriousness of this message by telling the EPA to restrain itself. With high employment and a sputtering economy, now is not the time to add yet another multibillion-dollar burden onto employers and workers.

Instead, let's keep the sign out: "Open for business."