The U.S. EPA has warned Ohio that it could soon be stripped of federal highway funds for failing to enforce national clean air standards. The move would be a major blow to the state, which receives more than $900 million in federal road funds every year. The EPA could also stiffen the pollution levels allowed in clean air permits, halting construction of some major non-government projects in the state. The EPA issued the warning after finding that Ohio illegally exempted 22,000 small-emission units from air-pollution monitoring reports, failed to make major polluters file prompt incident reports, and did not have company executives certify the veracity of monitoring reports. In conjunction with the Ohio Chamber of Commerce and the Ohio Chemistry Technology Council, Gov. Bob Taft (R) has challenged the EPA in court in a bid for more flexibility and discretion over regulatory procedures.