American Iron and Steel Institute Disappointed by Boxer-Kerry Climate Bill

WASHINGTON, D.C., September 30, 2009 – The American Iron and Steel Institute (AISI) expressed its disappointment in the Boxer-Kerry climate bill, known as the Clean Energy Jobs and American Power Act, introduced today by the Senate Environment and Public Works Committee, which aims to reduce emissions by 20 percent by 2020 – going further than the House bill that was passed in June. 

“We are concerned that this bill is a major step backwards from the House version of the bill as it will put even greater pressure on energy-intensive, trade-sensitive industries such as the steel industry,” said Thomas J. Gibson, president and CEO of AISI. “The economic burden being imposed on the industry is greater in this bill, with a 20 percent emissions reduction required by 2020.   The bill will establish an allowance rebate program similar to that in the House bill, but it does not provide the specificity needed to ensure that the program will be adequate to address the full impact of the bill on energy-intensive, trade-exposed industries.  Meanwhile, there is only a placeholder for an as yet unwritten border adjustment provision that will be critical to preventing the leakage of jobs and emissions from the United States that will result from this legislation.  Clearly, much more needs to be done to make this bill acceptable, and we will be working to address these issues with those Senators who have expressed their commitment to ensuring a level playing field for American manufacturing.  If we don’t get climate legislation right, we’ll harm the U.S. economy, outsource our manufacturing to China and see global emissions increase – the exact opposite of the goals of climate policy.”

AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the material of choice.  AISI plays a lead role in the development and application of new steels and steelmaking technology.  AISI is comprised of 24 member companies, including integrated and electric furnace steelmakers, and 138 associate and affiliate members who are suppliers to or customers of the steel industry.  AISI's member companies represent over 75 percent of both U.S. and North American steel capacity.  For more news about steel and its applications, view AISI’s Web site at www.steel.org.

Contact:
Nancy Gravatt
Vice President, Communications
American Iron and Steel Institute
Tel: 202.452.7115