Officials from the American Iron and Steel Institute, which represents US steel producers, said that Obama’s plan would put the steel industry at a “substantial disadvantage” to its foreign competitors in addition to increasing costs.
“The regulations proposed by the President today will invariably raise electricity costs and decrease service quality for major industrial customers, like the steel industry,” AISA president Thomas Gibson said.
“The North American steel industry is heavily dependent on affordable and reliable energy, which is typically 20 per cent or more of the cost of making steel.”
Gibson said the US, the most energy efficient steel industry in the world, had voluntarily reduced its energy intensity by 27% since 1990.
In its competition with other countries, such as China – where it competed with state-owned and subsidized steelmakers – US producers had a bigger burden.
“Policies, like those proposed by the President today, raise energy costs on domestic companies and threaten our ability to remain competitive in this international manufacturing environment,” Gibson said.
He noted the rise in regulations on the utility sector to force a quick reduction in carbon emissions was unfair to many regions and would encourage an already trendy practice, “fuel-switching”, since no carbon dioxide emissions control technologies had been proven.
“Certain areas of the country – including many of the states where there is a high concentration of steel production – have more abundant coal sources, whereas, other regions are better suited for production from wind and solar sources,” Gibson told the Pittsburgh Business Times.
“The administration’s plan makes coal-fired electricity supply less affordable and less reliable to major industrial customers, such as steel producers – which will threaten the loss of valuable manufacturing jobs in the United States.”
AISA, Gibson said, would be paying close attention to the EPA [US Environmental Protection Agency] and how it managed the forthcoming transition period, and the cost and reliability impacts the outlines would have on regions dependent on coal-intensive electricity generation.
