EPA Greenhouse Gas Regulations Will Raise Costs for Steel Industry

Via The Cleveland Plain Dealer:

The steel industry in the U.S. is subject to substantial international competition, often against steel producers in countries where energy costs are subsidized.  Access to reliable and affordable energy supplies – especially electricity – is therefore critical to maintaining the domestic industry’s competitiveness.

New EPA greenhouse gas regulations for electricity providers will raise costs for American steel companies since the leading steel producing states in the U.S. are heavily dependent on coal for electricity production. These regulations for both new and existing power plants will have a disproportionate impact on coal-fired utilities and a detrimental effect on steel making, as the costs of compliance and reliability risk will be borne by the steel industry and its 16,335 workers in Ohio.

Limitations on CO2 emissions instituted in the United States must also apply at the same level of stringency to other major steel producing nations, such as China.  Otherwise, steel production and manufacturing jobs will shift to other nations with higher rates of greenhouse gas emissions. We urge Congress to act now to oppose EPA’s plans to threaten the affordability and reliability of electricity supplies to our industry.

Thomas J. Gibson,

Washington, DC

Gibson is President and CEO, American Iron and Steel Institute

See the article here.