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Mike Kelly

05/07/2024 | Press release | Distributed by Public on 05/07/2024 15:51

Kelly amendment to secure Pa. steel jobs, fully repeal harmful Dept. of Energy rule passes U.S. House with bipartisan support

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May 7, 2024

WASHINGTON, D.C. -- Today, the U.S. House of Representatives passed an amendment introduced by U.S. Rep. Mike Kelly (R-PA) which would fully repeal a harmful U.S. Department of Energy rule that threatens the future of domestic grain-oriented electrical steel (GOES) production. The last domestic producer of GOES is Cleveland-Cliffs Butler Works, located in Butler, Pennsylvania. The amendment was included in the "Hands Off Our Home Appliances Act." Four House Democrats joined House Republicans to support the amendment.

Kelly's amendment would fully repeal DOE's final rule announced last month, which delays new minimum energy efficiency standards for electrical distribution transformers by only two years, from 2027 to 2029. Additionally, the rule requires up to 25% of distribution transformers to use amorphous steel cores, a move that would require less grain-oriented electrical steel production and threatens the 1,300 union jobs at the Butler Works plant even before DOE's rule takes effect in 2029. Yet, GOES cores are already no less than 97.7% energy efficient.

GOES is an essential part of distribution transformers, our nation's electrical grid, and American national security. Amorphous steel is largely sourced from overseas, including China.

"I said it then and I'll say it again: I was encouraged by the Department of Energy's final rule, but I was not satisfied," said Rep. Kelly. "The Biden Administration's track record on domestic energy policy gives me zero reassurance that they will support these 1,300 workers or the Butler community when this final rule takes effect in 2029. The administration should not be picking winners and losers. Fully repealing this rule would eliminate heavy-handed government involvement and potentially allow for even more jobs for the Butler Works plant because of increased demand for distribution transformers nationwide. We must end this wrongheaded, job-killing rule once and for all."

Kelly's amendment is co-sponsored by Reps. Richard Hudson (R-NC) and Troy Balderson (R-OH), members of the House Committee on Energy & Commerce.

"One of the many lessons we learned from the Moore County 2022 grid attack is that we cannot afford disruptions to our grid," said Rep. Hudson. "This amendment to the Hands off our Home Appliances Act helps protect our nation's grid security and unleash reliable American energy production."

"The proposed efficiency standards by the Biden Administration for distribution transformers will threaten good-paying American jobs, destabilize the supply chain, and raise costs for consumers," said Rep. Balderson. "In the Administration's frenzy to enact their rush-to-green agenda, they fail to acknowledge the damaging real-world consequences."

Rep. Kelly spoke about the amendment on the House floor on Tuesday. You can WATCH and DOWNLOAD his full speech here.

Kelly's latest legislation to save Pennsylvania steel jobs comes after his successful efforts last month to force DOE to revise their job-killing rule. In April, he held a standing-room only town hall attended by more than 500 Butler area community members and UAW Local 3303 members who work at the Butler Works plant. You can learn more about Kelly's legislative efforts here.

In April, UAW Local 3303 estimated that each job at Butler Works supports seven additional jobs in the Butler area economy.

You can read the text of Rep. Kelly's amendment here.

The "Hands Off Our Home Appliances Act" now advances to the U.S. Senate for consideration.