Seventh Circuit pauses more stringent designation for region

Businesses in southeastern Wisconsin received positive news this week as the U.S. Environmental Protection Agency (EPA) agreed to reconsider a 2024 decision that would have imposed a more stringent ozone nonattainment classification on a large portion of southeastern Wisconsin and, in response, the Seventh Circuit extended a stay of these more stringent requirements.

The development follows years of advocacy by MMAC and its partners who argued that the federal designation failed to account for the significant amount of ozone-forming pollution originating outside Wisconsin that drifts into the region. Coalition partners also maintained that the EPA should have provided businesses and the public an opportunity to comment before implementing the change.

As part of that effort, MMAC worked with member companies to document the real-world impacts the stricter classification would have had on employers, including additional permitting requirements and regulatory burdens. Those examples were incorporated into a federal court filing in the form of an amicus curiae (or “friend of the court”) brief, to support the state of Wisconsin’s challenge to that designation.

Before that brief was filed, the state of Wisconsin formally petitioned the EPA to reconsider its decision. The agency agreed and committed to conducting a rulemaking process that will include an opportunity for public comment.

In response, the U.S. Court of Appeals for the Seventh Circuit placed the case in abeyance, effectively pausing the matter while the EPA re-evaluates the designation and keeping the Seventh Circuit’s earlier stay of serious nonattainment classification in place. As a result, southeastern Wisconsin will remain under its previous moderate nonattainment classification pending further action.

The decision represents a significant procedural victory for the region, ensuring that businesses, local governments and residents will have an opportunity to provide input before any future classification changes are considered.

“This outcome demonstrates the value of a coordinated, fact-based advocacy effort,” said Andrew Davis, MMAC Vice President of Governmental Affairs. “Our members helped build a strong record showing the real-world consequences of this designation, and that work ultimately contributed to securing a second look from EPA.”

While the immediate legal challenge has been paused, advocacy efforts will continue. The research, business examples and legal arguments developed over the past year will help inform MMAC’s participation in the upcoming federal rulemaking process.