"Yes, it would definitely be a liability to have that tagline," says Dave Spaur, president and chief executive officer of the Economic Development Corp. serving Fresno County. "How many projects would we lose?"

That's a tough question to answer. But demand for such details grows each month – particularly in San Joaquin, Stanislaus and Merced counties – as the governing board of the San Joaquin Valley Air Pollution Control District considers volunteering for "extreme noncompliance of the federal ozone standard."

The district began studying the idea in late 2001 as a way to sidestep millions in federal sanctions, business penalties and a delay in $2 billion of road-building funds. The designation also would gain the district five years to meet the healthy-air standard.

The downside: A few hundred of the Valley's larger businesses would be forced to enter a federal permit program, and they could pay hundreds or even thousands more each year for paperwork, inspections, monitoring and other expenses.

Experts who help businesses locate around the country say the Valley would have problems if business costs increase – no matter what the cause.

John Boyd, owner of The Boyd Co. in Princeton, N.J., a worldwide location counselor for decades, says companies are interested in cutting operating costs.

"The quality of life issues have taken a back seat in this economy," he says. "One of the advantages of Fresno is that business costs are lower. If you cause a company to invest more in environmental controls, it may be a difficult challenge to overcome."

In the 25,000-square-mile Valley, those words bite the hardest in the northern three counties, San Joaquin, Stanislaus and Merced. Officials and business owners want alternatives to the extreme designation because the northern counties usually have cleaner air than the rest of the Valley.

They don't want their larger businesses paying extra for a federal permit program. Under the "extreme" designation, the definition of a major pollution source would drop from 25 tons a year to 10 tons a year, meaning more businesses would be considered large polluters.

An estimated 150 businesses would have to join a federal permit program at an initial cost of $5,000. The businesses could include small power plants, manufacturers and possibly even large hospitals.

But that is not the only complaint. Officials in San Joaquin County say it just doesn't seem right to lump their region in the extreme designation, which currently applies only to the Los Angeles area's South Coast Air Basin.

They fear business owners won't come to Stockton or Modesto because they think the air is as dirty as in Fresno or Bakersfield.

"We want clean air for the whole Valley," says San Joaquin County Supervisor Jack Sieglock, who also is on the air district board. "But there is a cost to the stigma of having that [extreme] designation. Our air in San Joaquin County is cleaner than other parts of the district."

In 2001, San Joaquin, Stanislaus and Merced counties didn't violate the one-hour federal ozone standard, a level at which lung damage can begin. Madera, Fresno and Kings counties had 17 violations, and Kern and Tulare counties also combined for 17 violations.

San Joaquin County officials this summer studied several options, including separating from the Valley district. But secessionist talk has died down, and people are thinking about just moving the three northern counties into a separate planning area within the Valley district.

Such a planning area still would abide by district rules, except it would not be subject to the extreme designation. The Sacramento Valley and the Los Angeles area's South Coast Air Basin have similar divisions in their areas, officials said.

But it would be a tough sell to the rest of the Valley, says Andy Chesley, deputy executive director of the San Joaquin County Council of Governments, which is researching the idea.

"You can't just do it because you don't like the extreme designation," he says. "The process is rigorous. We have to show compelling reasons.

"We have smaller counties. We have more commuting. The southern part of the Valley has different problems. We have a responsibility to find out what the differences are."