Grinding to a Halt

September 22, 2015

The direct economic impacts of EPA’s proposed ozone regulations are well documented. According to the National Association of Manufacturers, the rule is expected to be the most expensive regulation in history, and will serve as an economic handcuff on business development in areas unable to comply with more stringent standards. As demonstrated in this report, however, the indirect transportation impacts of this rule could lead to similarly harsh consequences, as penalties for noncompliance result in the withholding of funds for critically important infrastructure improvements. These cutoffs in funding and other associated impacts will serve not only to worsen the economic costs of the rulemaking, but they will also impose a literal roadblock on efforts to address the stifling congestion and worsening state of disrepair of America’s roads, bridges, and transit systems in growing cities around the country.