Guest ContributorArizona’s business and manufacturing community is closely watching a new proposal from the U.S. Environmental Protection Agency that would restore a more cooperative, state-led approach to air quality regulation and remove Arizona from the Biden-era “Good Neighbor Plan.”
EPA late last month proposed approving Arizona’s State Implementation Plan (SIP) for the 2015 eight-hour ozone National Ambient Air Quality Standards. If finalized, the action would resolve Arizona’s interstate transport obligations and allow the state to move forward under its own air quality plan rather than being subject to a broad federal mandate.
EPA Administrator Lee Zeldin framed the proposal as a course correction from prior federal overreach.
“Today, we are taking an important step to undo a Biden Administration rule that treated our state partners unfairly,” Zeldin said. “If the SIPs are approved as proposed, these states will be able to advance cleaner air now for their communities, instead of waiting for overly burdensome federal requirements years from now.”
Relief from a one-size-fits-all rule
The original “Good Neighbor Plan,” finalized under the Biden administration, imposed new emissions requirements across 23 states, including Arizona, targeting power plants and a wide range of industrial sectors — from cement and steel manufacturing to chemical production, mining and pulp and paper mills.
Arizona, along with several other states, demonstrated through EPA-approved modeling that in-state emissions were not significantly contributing to ozone nonattainment in downwind states. Despite that data, Arizona faced partial disapproval of its SIP and inclusion in the federal rule.
That approach was paused in June 2024 when the U.S. Supreme Court stayed the rule, citing serious legal concerns. Subsequent federal court decisions also vacated SIP disapprovals for other states, adding uncertainty for employers and regulators alike.
The current EPA proposal would bring clarity and certainty, particularly for energy-intensive industries that depend on reliable power, long-term planning and predictable regulatory frameworks.
Manufacturers support cooperative federalism
Arizona manufacturers have long supported clean air goals while cautioning against regulatory approaches that fail to reflect state-specific conditions or economic realities.
“Arizona manufacturers care deeply about clean air and healthy communities,” said Grace Appelbe, executive director of the Arizona Manufacturers Council. “But broad federal mandates that ignore state-specific data risk driving up energy costs, disrupting supply chains, and discouraging investment. Approving Arizona’s state plan recognizes that we can protect air quality while maintaining a competitive manufacturing environment.”
Business leaders have warned that the earlier federal rule could have accelerated power plant retirements or forced costly compliance investments without delivering proportional air quality benefits in states like Arizona.
What’s next
EPA’s proposal will be subject to a 30-day public comment period following publication in the Federal Register. The agency has indicated it will take additional, separate actions to address remaining states previously covered by the “Good Neighbor Plan.”
Image AI composite, using images courtesy CC BY-SA 2.0 https://creativecommons.org/licenses/by-sa/2.0, via Wikimedia Commons; CC BY 2.0; and CC BY-NC-ND 2.0
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