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First, economic development restrictions are placed on recruiting and expanding industries; this means fewer new jobs. During the state'srecruitment efforts on both Mercedes-Benz and Honda, potential sites for these facilities could not be shown in either Jefferson or Shelby counties because they would not be able to obtain the necessary air permit from ADEM for their facilities; in our current situation, no permits will be granted to any industry that would result in an increase in ozone-related emissions in the area.
Besides those projects, the Birmingham Metropolitan Development Board has reported that during the 1990's they could not compete for at least 15 other new projects with a total of almost 11,000 jobs and $4.6 billion in capital investment. In addition to the direct economic impact of a new project, manufacturing jobs typically have high "multiplier" effects on an area's economy. Each new manufacturing job often results in 3 or 4 other new jobs in an area. These typically come from either suppliers to the manufacturing facility or from new jobs from small businesses that capture increased economic activity in the area, such as new restaurants, cleaners, grocery stores, etc. Therefore, the economic penalty is increased because these indirect benefits are also not realized from "lost" projects.
The second economic penalty relates to highway development. All ozone nonattainment areas must meet federal "transportation conformity" requirements related to the impact of automobiles on air quality. Areas that don't meet these requirements have federal highway funds restricted. In March 1999 Atlanta lost $700 million in federal highway funds as a result of this sanction. In addition, Charlotte has had about $15 million of federal highway development funds suspended in the past.
In all probability, in less than two years, Alabama could have as many as 15 counties classified as ozone nonattainment areas subject to these economic penalties. Though these will not be officially subject to these economic sanctions until EPA makes designations under the new more stringent eight-hour ozone standard, economic development will be impacted immediately.
As soon as an area is identified as being projected to be an eight-hour nonattainment area it will be under an economic development cloud. This will cause manufacturers and siting consultants to avoid the risk of locating in these areas because of uncertainty associated with this new standard and what may be required of emission sources in the area to meet this standard. They will simply not consider locating facilities in these areas. The economic effect will be the same as if the sanction had been officially imposed.
The expanded use of clean fuels resulting from the Alabama Clean Fuels Coalition Program can reduce emissions from cars and trucks in the area. This will reduce ozone levels in the area and help us to meet air quality requirements. Meeting these requirements, will eliminate the economic penalties currently imposed on the region. |
