Ground Level Ozone and the Triangle’s Economy

According to federal guidelines, entire states, and regions within states, can be broadly designated as either “attainment” or “non-attainment” with respect to the National Ambient Air Quality Standards (NAAQS).

Currently, the Triangle is designated non-attainment for ground-level ozone. The information and links below outline the economic challenges the Triangle faces if our attainment status does not improve.

As the Triangle continues to grow and prosper, we must be vigilant about our air quality — not only for our health, but for a healthy economy.

Non-attainment and site selection When corporations begin the search for a new area to relocate or expand into, non-attainment regions are often automatically eliminated from the list.

If a business or industry generates a high level of emissions, and they move into a non-attainment area like the Triangle, the company must purchase emission credits in order to obtain the required permits for their business. The process of obtaining credits can be time consuming and expensive.

In addition to emissions regulations, relocating companies may also have concerns about the quality of life for their employees and their families. High levels of ground-level ozone can impact a company’s bottom line through lost productivity and increased health care costs.

Air quality standards pose a special challenge for Triangle companies that are planning to build new manufacturing facilities, install new equipment or make process changes. Those companies must be proactive and work closely with the state to calculate emissions. The cost of purchasing, installing and using the emission control equipment necessary to comply with environmental regulations are also factored into the site selection process.

Non-attainment and existing businesses

Because the Triangle is currently in non-attainment, existing business and industries also face the challenge of limiting emissions. The North Carolina Division of Air Quality is currently reviewing guidelines for an emission reduction credit system. Under such an “emissions banking” system, business and industry that voluntarily reduce emissions in non-attainment counties may certify and “bank” these reductions as Emission Reduction Credits (ERC’s) for future use by themselves or others.

A tradable emissions system is based on the principle that the cost of emissions reductions varies from facility to facility. When a facility is given a limit on its emissions, some facilities may be able to reduce emissions more than required at a fairly low cost. Those which can, may choose to reduce emissions levels below the required levels and sell the differential to another source facing a higher cost of reducing emissions. For more information on emissions trading visit www.emissionstrading.com/defined.htm

Bad air is bad business

Poor air quality can have impacts that reach far beyond a region’s ability to attract new businesses. For example, failure to reach attainment status as required by USEPA can cause the federal government to refuse funding for new highways.

Other indicators of the impact of poor air quality include:

• On days when ozone levels are high, emergency room visits for asthma attacks have been shown to increase by as much as 36 percent. The economic effects of such a health crisis are yet only dimly perceived.
• One EPA estimate links ground level ozone pollution to $2.7 billion worth of crop damages in 1995 alone. This can mean increased grocery bills.
• Ground level ozone also damages ornamental plants and trees.
• Ground level ozone reduces agricultural yields for many economically important crops, such as soybeans, kidney beans, wheat and cotton.