Zeldin announces EPA proposal to support cleaner air and business growth in Arizona

EPA Administrator Lee Zeldin visited Arizona Tuesday to announce proposed approval of Maricopa County Rule 204, an emissions-reduction program intended to help businesses invest and expand while improving air quality.

The announcement followed a roundtable with business leaders and elected officials. Rule 204 would allow qualifying voluntary emissions reductions from nonroad engines and equipment to generate credits that new or expanding major facilities could use to satisfy federal Clean Air Act offset requirements.

Speaking at the announcement, Zeldin praised the county and business community for finding practical ways to support growth while working toward compliance with federal ozone standards.

“They aren’t increasing emissions and they aren’t breaking federal requirements,” he said. “They are finding new innovative ways to work within their circumstances.”

The Arizona Chamber of Commerce & Industry welcomed the proposal as an important step toward addressing a longstanding shortage of emissions credits that can constrain economic development.

“This is an important win for cleaner air, economic growth and the kind of practical problem-solving Arizona does best,” Chamber President and CEO Danny Seiden said.

Rule 204 would create a financial incentive for owners of equipment such as construction machinery and railroad locomotives to upgrade to cleaner technology. Qualifying reductions could then generate credits for facilities seeking to build or expand.

“For more than a decade, Arizona’s business community has worked to expand the tools available to reduce emissions while giving companies a workable path to invest, expand and create jobs,” Seiden said. “Rule 204 does exactly that: when businesses voluntarily replace older equipment with cleaner technology and achieve real, measurable emissions reductions, those reductions can help make continued economic growth possible.”

Parts of Maricopa County are designated as being in moderate nonattainment of federal ozone standards. Major facilities seeking to build or expand in the affected area must obtain permits and offset increases in emissions.

Under the proposed program, equipment owners that permanently reduce nitrogen oxide or volatile organic compound emissions could trade qualifying reductions as credits to those facilities. EPA said the approach could support industries including high-tech manufacturing and power generation, and that it does not expect the rule to increase emissions in the area.

Maricopa County Board of Supervisors Chair Kate Brophy McGee greeted the announcement with enthusiasm.

“I have been in public service for over 25 years and my dream has come true,” she said, drawing laughter from the audience.

Brophy McGee praised regulators for listening and using incentives, saying Rule 204 could help preserve the county’s quality of life while supporting its economic expansion.

“This plan demonstrates how a healthy environment and growing economy can work together,” she said. “By incentivizing rather than punishing job creators, implementing Maricopa County’s Rule 204 will improve the quality of the air we breathe while enabling key industries to continue investing in our community.”

Supervisor Thomas Galvin called the announcement “a victory for our environment, the economy, and common-sense regulation reform.”

Arizona Commerce Authority President and CEO Sandra Watson said the proposal would strengthen Arizona’s competitiveness and support responsible growth. She credited Gov. Katie Hobbs, Maricopa County and other partners, and recognized Seiden and the Chamber for their leadership in advancing the measure.

Seiden also thanked county officials, the governor and federal and state lawmakers from both parties for helping bring the proposal to this point.

“Protecting air quality and maintaining a strong economy do not have to be competing goals, and once again Arizona is showing the rest of the country how smart policy can advance both,” he said.

EPA’s announcement represents proposed approval. The agency said it will hold a 30-day public comment period before taking final action.