EPA Steps Back, Arizona Moves Forward

By Patrick J. Paul, John Habib, and Sukhmani K. Singh

In a significant development for Arizona’s business community and environmental policymakers, the U.S. Environmental Protection Agency (EPA) has paused its planned reclassification of Maricopa County from “Moderate” to “Serious” ozone nonattainment status pursuant to the Clean Air Act’s National Ambient Air Quality Standards (NAAQS). This decision marks a shift in federal air policy — one that recognizes the unique challenges faced by regions like metro Phoenix, where environmental conditions beyond local control are often key contributors to air quality readings.

The EPA’s move follows a series of meetings between EPA Administrator Lee Zeldin, Arizona elected officials, and business and civic leaders, including a recent roundtable in Phoenix convened by U.S. Senator Mark Kelly. In announcing the pause, Zeldin acknowledged the need for flexibility and fairness in the application of Clean Air Act standards, especially when emissions from other states, nations, and natural events significantly influence local air quality.

The Impact of a Serious Nonattainment Designation

A redesignation to Serious nonattainment would have triggered more stringent permitting requirements for businesses operating under Maricopa County Air Quality Department (MCAQD) jurisdiction, including the need for additional emission offsets, updated Reasonably Available Control Technology standards, and other costly compliance measures. These requirements often fall most heavily on industries already operating under robust regulatory scrutiny and with relatively minor contributions to the region’s ozone levels.

The economic implications of such a redesignation are not trivial. Heightened regulatory burdens can stymie investment, delay or derail industrial expansion, and disincentivize companies from locating or growing in the Valley. This pause supports the reality that economic growth and clean air goals can coexist.

Recognizing the Role of External Factors

Perhaps most importantly, EPA’s decision to rescind prior guidance restricting the use of Clean Air Act § 179B provides Arizona and other similarly situated states with a more viable pathway to demonstrate how foreign pollution and uncontrollable environmental phenomena skew local ozone readings.

Section 179B allows areas to show that they would meet federal standards “but for” emissions that originate outside U.S. borders. Under the now-rescinded guidance, the burden of proof placed on states to make that showing was prohibitively high. Arizona, in particular, has faced challenges in documenting the effects of seasonal wildfires and transboundary pollution from neighboring states, Mexico, and Canada. Arizona is also impacted by natural dust storms known as haboobs. These episodic events can elevate ozone concentrations dramatically, despite ongoing efforts by local businesses and regulators to curb emissions.

Zeldin stated, “Americans should not be harmed by other countries that do not have the same environmental standards we have in the United States.” His commitment to eliminating “cumbersome red tape” and working with state and local agencies to develop meaningful evidence for 179B demonstrations is a realignment of federal policy with on-the-ground realities.

A Well-Regulated Business Community

Generally speaking, businesses operating with permits from MCAQD are already held to high standards of environmental compliance. These facilities are subject to regular monitoring, emissions limits, recordkeeping, and reporting obligations. Many have voluntarily adopted best available control technologies and undertaken emissions-reducing operational upgrades.

Permitted stationary sources tend not to be the primary contributors to ground-level ozone formation in Maricopa County. Mobile sources such as vehicles and episodic regional events play a more significant role. Yet, under a Serious classification, the cost of compliance would disproportionately fall on these already-regulated industries, despite their comparatively minor role in the overall pollution picture.

Moving Forward with Balance and Science

EPA’s decision to reconsider its approach — reflects a broader commitment to cooperative federalism and science-based regulation. This pause gives Arizona the breathing room it needs to build a more accurate case for its air quality challenges and solutions. It also sends a message that national policy will not penalize states for pollution they did not create and cannot reasonably control.

Senator Kelly and Maricopa County officials highlighted this issue and elevated it to national attention. Their advocacy, combined with Administrator Zeldin’s willingness to listen and act, has provided a path forward rooted in practical solutions.

Businesses in the Valley should remain engaged in the rulemaking and demonstration process as the state moves forward. With continued collaboration and clear-eyed analysis, Arizona can endeavor to meet its air quality goals while maintaining a vibrant and sustainable economy.

**Any opinions expressed are the author’s, and not necessarily those of the firm or his colleagues.