Steel Industry Says HR 2454 Means Competitive Disadvantage

According to a press release by the American Iron and Steel Institute, the American Clean Energy and Security Act that was narrowly passed in the House will need significant changes in the Senate if it is to avoid putting American steel makers at a competitive disadvantage. The AISI is the voice of the US steel industry, and its lobbying promises to have an effect on the vote in the Senate.

The reason the AISI is worried about the bill, called HR 2454 in the House, is that energy-intensive industries like steel manufacturing will experience cost increases that will not be sufficiently covered by emissions trading credits. This would put US steel makers at a disadvantage compared to foreign manufacturers because foreign companies would not face the same costs, and would therefore be able to sell lower priced steel.

The AISI press release also notes that if American companies are driven to purchase imported steel, the environmental goals of the bill would be undermined because the steel used could quite possibly come from countries that have no limitations on greenhouse gas emissions.

Aggressive lobbying can be expected from the AISI for changes to the American Clean Energy and Security Act in the Senate, and it is possible that the bill might not pass at all. The bill passed by only seven votes in the House, indicating deep divides among lawmakers regarding the bill. The progress President Obama hopes for may depend on compromises in the bill that will allow everyone to agree on its validity.