**For Immediate Release**

Kyla Gill, Kyla.Gill@mail.house.gov 

Vaibhav Vijay, Vaibhav.Vijay@mail.house.gov

Rep. Lee and Rep. Khanna Lead 10 Others in Introducing Modern Steel Act

Washington, DC – July 30, 2024 – Today, Congresswoman Summer Lee is proud to announce the introduction of the Modern Steel Act with Rep. Ro Khanna (CA-17) and 10 others. This bill would strengthen domestic manufacturing and bring next generation iron and steel production back to the Pittsburgh region, revitalizing our communities that have been deindustrialized and largely forgotten, while making funding opportunities contingent on binding community benefits agreements. These agreements will work to not only create new, good-paying jobs and retain existing jobs, but ensure that corporations work with communities to address and combat environmental justice concerns. This bill will incentivize the production of cleaner, greener steel and iron that will improve air quality through reduced emissions.

As the representative of Pittsburgh, the birthplace of modern steel, I am proud to introduce the Modern Steel Act alongside Rep. Khanna.Western Pennsylvania’s steel mills were the backbone of the Industrial Revolution, driving economic prosperity worldwide. ” said Rep. Summer Lee (PA-12). “The Modern Steel Act will enable our region to once again lead in steel production, pioneering clean manufacturing technologies, creating thousands of good-paying union jobs and reclaiming our title as the Steel Capital of the World.”

Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI) said, “While the American steel industry leads the world in clean steel production, we still have a long way to go to get to near zero emissions. We are pleased to support Rep. Khanna’s bill which will build a strong public-private partnership to provide the type of tax incentives that encourage continued and increased investment in breakthrough technologies, enable the ongoing innovations of the American steel industry and create jobs.”

“We have a duty to the workers who build this country. We know steel requires enormous amounts of energy, and have innovated ways to make it cleaner,” said Ted Fertik, Vice President of Manufacturing and Industrial Policy at the BlueGreen Alliance. “We can modernize our steel industry, but we need to make the necessary investments. The Inflation Reduction Act, championed by the Biden-Harris administration, kickstarted this transition to cleaner steel. For this transformation to succeed, steel workers and steel communities must be at its heart.”

Sierra Club Industrial Campaign Director CeCe Grant: “With clean manufacturing, we no longer have to choose between building a strong economy, creating good-paying jobs, and ensuring clean air and water in our communities. Due to investments from the Inflation Reduction Act, we have the technology, the workforce, and the capital we need to transform our industrial sector. The only thing we need now, is courage and innovation from leaders like Congressman Ro Khanna, to step into a more sustainable future. Being an environmentalist is not just about saving polar bears. It’s also about the rebirth of our domestic manufacturing in places like western Pennsylvania, Ohio, and Michigan. It’s about reinvesting in communities that have been left behind.” 

The Breathe’s Project Executive Director Dr. Matthew Mehalik: “The Breathe Project fully endorses the new initiative, particularly praising the provisions that emphasize the transition to clean hydrogen and the clear timeline to achieve 100% clean hydrogen usage. We also commend the bill’s focus on air quality issues and the Environmental Justice provisions that address the needs of communities affected by operating steel facilities.”

“This is an investment in the future of our nation and our planet,” GASP Executive Director Patrick Campbell said. “As we combat the climate crisis, it’s imperative that every sector – from industry players and government agencies to businesses and nonprofits – do their part to reduce emissions that we know are damaging to both our public health and our ambient air. When it comes to climate impacts, we’re truly all in this together, and it’s long past time we take bold collective action.”

“Steel is necessary to build clean technologies like wind turbines and electric vehicles, but the production of steel today is a significant contributor to climate change. The Modern Steel Act puts forward a comprehensive set of investments in emissions reduction across the sector and proposes new trade measures to enable domestic climate action in a competitive global market. We appreciate Representative Khanna’s leadership on this important issue,” said Ian Wells, Federal Industrial Lead at NRDC’s Climate & Energy Program.

Background:

The Modern Steel Act will

• Partner with the steel industry and workers to buildnew, modern facilities producing clean iron and steel
  • Award $10 Billion in cost-share grants, low-interest loans and other financing
• Give priority to existing and legacy steel, iron, coke, and coal communities
  • Prioritize applications for projects in these communities
  • Protect health of local communities and enter into community benefits plans and agreements
• Enable production of clean iron and steel
  • Provide $89/ton production tax credit for near-zero emissions iron
  • Ensure incentives are tech-agnostic and encourage early adoption of improved technology
• Upgrade existing integrated mills and mini-mills to employ lower-emissions technologies
  • Award cost-share grants, low-interest loans and other financing for upgrades (part of $10 Billion above)
  • Provide 10% Investment tax credit to build zero-emissions energy capacity onsite
  • Develop government strategy to increase access to zero-emissions power for industrial use
• Balance Supply, Strengthen Supply Chain Resilience, and Protect Health
  • ITC to study, recommend and impose ad valorem import tariff on foreign carbon-intensive steel that surpasses US average. President has executive authority to make adjustments to tariff.
  • Prohibit funds from being used for projects outside of the United States
  • Exclude Chinese State Owned Entities or entities owned in part or whole by the government of any nation of concern from tapping into any incentives
• Explore demand generation opportunities
  • Report on opportunities to use near-zero emissions iron and steel including shipbuilding, railroads and offshore wind 
  • Prioritize projects that will make steel products where increased demand is expected
• Uphold strong labor standards and train workers to make the steel of the future 
  • Recruit, train and retain broadly
  • Cover up to $2,500 per new or existing worker to train in modern iron and steelmaking
  • Include labor-management cooperation agreements
• Prioritize projects using domestic content, including all iron, steel, manufactured products, and construction materials from US manufacturers

Cosponsors include: Rep. Ro Khanna (co-lead); Reps. Alma Adams, Nikki Budzinski, Donald G Davis, Chris Deluzio, Debbie Dingell, Valerie Foushee, Marcy Kaptur, Stephen F Lynch, Haley Stevens, Shri Thanedar

Endorsing organizations include United Steel Workers (USW); Cleveland Cliffs; the American Iron and Steel Institute (AISI); Alliance for American Manufacturing (AAM); ResponsibleSteel; Boston Metals; Limelight steel; Sierra Club; Breathe Project; Evergreen Action; Johnstown Pennsylvania State Rep Frank Burns; Former Mayor of Pittsburgh Bill Peduto (currently at Carnegie Mellon University)

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Since taking office in January 2023, Lee, who serves on the House Oversight Committee and Space, Science and Technology Committee, has delivered historic levels of federal investment totaling over $1.85 Billion brought back to Western PA, including over $580 million for infrastructure, over $110 million for affordable transit, over $500 million to keep clean energy manufacturing at home in Pennsylvania, and over $55 million on clean energy efforts in and around schools to help keep our kids and communities safe. These investments will help improve Western Pennsylvania’s infrastructure and transit, ensure cleaner air and drinking water, lower housing costs, fund research institutions, fuel clean manufacturing, fund STEM innovation and entrepreneurship, boost workforce development, and create thousands of good paying union jobs.  Lee and her team have also delivered casework and constituent services to over 2,300 constituents with issues ranging from helping our seniors and disabled community access Medicare and social security to helping folks secure housing and helping families with immigration support and passports.