The American Iron and Steel Institute (AISI) expressed its disappointment in a statement Monday over the US House of Representatives' passage of the American Clean Energy and Security Act of 2009, arguing that the climate bill as passed by the House puts the
US steel industry at a competitive disadvantage.
“We believe this bill has moved at a rushed pace that has not allowed for full debate of provisions that are critical to the steel industry, which was clearly underscored by the fact that the bill passed in the House by only seven votes,” said Thomas J. Gibson, AISI president and CEO.
The bill, narrowly passed by the House Friday, would require large companies, including manufacturers, to reduce carbon dioxide and other greenhouse gases by 17 percent by 2020 and by 83 percent by 2050, compared to 2005 levels. However, the AISI takes issue with increased costs to energy-intensive industries like
steelmaking that it says would result from the legislation. AISI argues that the increased energy costs, as well as other new costs resulting from the stricter emissions caps that the bill outlines, may result in the substitution of US-made products with imports from countries with less-stringent environmental standards.
“Several modifications must be made to achieve the bill’s stated purpose of avoiding job loss and emission migration to overseas markets,” said Gibson.
After Friday's House vote, President Obama expressed confidence that the Senate would move the legislation forward, passing its own version in the coming months. It is expected that the Senate will form its version of the climate bill by this autumn.