Rep. Kelly invites Energy Secretary Jennifer Granholm to explain job-killing regulation impacting Butler Works steel plant

WASHINGTON, D.C. -- Today, U.S. Rep. Mike Kelly (R-PA) invited U.S. Department of Energy Secretary Jennifer Granholm to attend his upcoming public town hall to explain the Department's proposed rule that threatens 1,300 jobs at Cleveland-Cliffs Butler Works steel plant in Butler, Pennsylvania.

In a letter sent to the Department of Energy, Rep. Kelly calls on Secretary Granholm to "answer to the community that this rule proposal would so greatly impact." 

"I believe it is essential for Secretary Granholm to explain to the Butler community why this rule is so important and why it's worth risking 1,300 family-sustaining jobs," Rep. Kelly said. "This rule is shortsighted, it's wrongheaded, and threatens the entire regional economy. If the Secretary insists this rule is necessary, I believe she deserves to explain why to those who would be greatly impacted by her decision."

The jobs are at risk due to a Proposed Rule from the U.S. Department of Energy (DOE) that would undermine domestic Grain Oriented Electrical Steel (GOES) production. Cleveland-Cliffs’ Butler Works plant is the last American producer of Grain Oriented Electrical Steel, which is a necessary component of our nation's electrical grid. Switching electrical distribution transformers from GOES to amorphous steel poses risks to the U.S. supply chain and national security because major amorphous steel producers are located overseas, including in China.

The Proposed Rule increases efficiency standards on distribution transformers, which are already no less than 97.7% energy efficient. Similar legislation has been introduced by the U.S. Senate by Senators Ted Cruz (R-TX) and Sherrod Brown (D-OH).

In February, Rep. Kelly and Rep. Chris Deluzio (D-PA) introduced The Distribution Transformer Efficiency & Supply Chain Reliability Act of 2024, legislation that would prevent the new DOE rule from taking effect and instead create new standards that increase the energy efficiency of distribution transformers at levels that preserve market opportunities for GOES as well as amorphous steel. 

A Proposed Rule, or regulation, is a requirement imposed by a federal agency.

You can read the full letter here.