There is a lot to be encouraged by in the latest Arizona economic outlook report from the University of Arizona. Our state continues to post strong job numbers and wage gains, and Arizona is still slated to outpace the nation in economic growth. However, the same report shows we are bearing the brunt of crippling inflation and soaring housing prices.
Unfortunately, it seems that regulators in Washington, D.C., are bent on making these problems even worse.
The EPA recently proposed a rule that would significantly tighten the limits for small particulates (PM2.5) commonly found in construction projects, manufacturing processes, and electricity generation. Despite concentrations of PM2.5 plummeting over 40% since 2000, due in large part to efficiencies championed by private industry, the Biden administration is barreling ahead with regulations that threaten 1,300 jobs and $500 million in manufacturing activity in Arizona alone, according to a recent study from the National Association of Manufacturers.
Ratcheting up PM2.5 regulations will create a maze of permitting requirements that will make constructing new and expanded industrial facilities a herculean task. This is especially concerning for Arizonans as we look to build out our semiconductor manufacturing industry and bring reliable energy resources online to power our booming state economy. In the energy industry, the cost to comply with this overburdensome EPA regulation may be borne by Arizona ratepayers, creating an additional financial burden on Arizona families.
Pro-business policies and a thoughtful regulatory approach have made our state a top destination for leading industries of strategic importance. Burdensome air regulations like the EPA’s proposal only serve to stifle economic growth and stoke inflationary pressures at a time when we can least afford it.
Lea Márquez Peterson serves as a Commissioner on the Arizona Corporation Commission. She lives in Tucson.