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On Monday, April 27, 2026, Congressman Bryan Steil (R-WI) introduced the “Fair Air Standards Act,” a bill aimed at providing regulatory relief to the greater Milwaukee area and similarly situated areas that are in ozone nonattainment largely due to the transport of out-of-state emissions. The proposed legislation would amend the Clean Air Act to give downwind areas like Southeast Wisconsin new tools if they can demonstrate they would meet federal ozone standards “but for” pollution transported from outside the state.

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The bill comes as state and local stakeholders in the Milwaukee region grapple with increasingly stringent ozone regulations that were triggered by the U.S. Environmental Protection Agency’s 2024 “bump-up” of the area’s ozone nonattainment status, despite data showing approximately 90% of the region’s ozone is attributable to emissions that originated outside of Wisconsin’s borders. For Southeast Wisconsin, this is due to prevailing wind patterns and Lake Michigan meteorology, known as the “lake effect.” This process facilitates ozone formation over Lake Michigan and drives it onshore, impacting ozone monitors along the Milwaukee-area lakeshore.

Under the Clean Air Act, EPA must designate an area as nonattainment based on monitored air quality, even if local sources contribute only a small fraction of the problem. While there are exemptions for rural areas impacted by urban emissions and areas impacted by international emissions, there are no similar exemptions for areas impacted by interstate emissions. The Fair Air Standards Act would allow EPA to recognize this imbalance by granting relief where a state demonstrates the area would have attained the ozone standard absent out‑of‑state emissions.

The proposal is designed to address practical consequences for businesses operating or expanding in the greater Milwaukee region following EPA’s 2024 reclassification (or “bump up”) of the area from “Moderate” to “Serious” ozone nonattainment, placing more stringent requirements on businesses seeking to expand or locate in the region, and more onerous vehicle emission testing requirements on area residents. EPA’s 2024 reclassification to “Serious” is currently stayed by the U.S. Court of Appeals for the Seventh Circuit, temporarily preserving “Moderate” area requirements but leaving longer‑term regulatory uncertainty.

The Fair Air Standards Act would provide a statutory mechanism for the region that is not dependent on litigation outcomes or agency discretion. For qualifying transport‑impacted areas, the bill would limit or eliminate nonattainment New Source Review requirements, allowing projects to proceed under more familiar attainment‑area permitting rules while maintaining baseline air quality controls.

If enacted, the Fair Air Standards Act would represent a significant shift in how the Clean Air Act treats downwind areas, with implications extending beyond Wisconsin. While the bill’s prospects remain uncertain, it reflects growing recognition that existing law offers limited tools to address interstate ozone transport and its economic consequences.

The proposed legislation reflects sustained engagement by the Metropolitan Milwaukee Association of Commerce (MMAC) and its members, who have worked for several years to document the economic and regulatory impacts of ozone nonattainment driven by interstate transport. MMAC has played a central role in coordinating technical analyses, engaging with Wisconsin Department of Natural Resources and EPA leadership, and briefing policymakers on the practical consequences for employers and investment in Southeast Wisconsin—efforts that helped inform the development of Rep. Steil’s proposal.

We will continue to monitor the bill’s introduction and any related EPA or court developments. If you have questions on how this bill or Southeast Wisconsin’s nonattainment status may affect your business, please contact us.

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Todd E. Palmer

Matthew McNerney

Allison E. Hawkins

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