Kelly amendment to fully repeal job-killing Dept. of Energy policy passes House Rules Committee, advances to full House vote

WASHINGTON, D.C. -- On Monday night, the House Rules Committee advanced an amendment introduced by U.S. Rep. Mike Kelly (R-PA) that would fully repeal a 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.

Kelly's amendment would fully repeal DOE's final rule announced last month, which delayed 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 already being 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," Rep. Kelly said. "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.

Following the House Rules Committee's passage of Rep. Kelly's amendment on Monday, the Amendment will now be considered on the House floor. If passed, the amendment would be included in the full House consideration of the "Hands Off Our Home Appliances Act." The House could vote on the amendment and full legislation as soon as Tuesday afternoon.

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.