Rep. Mike Kelly holds standing-room only town hall calling on U.S. Dept. of Energy to reverse job-killing rule threatening 1,300 jobs at Cleveland-Cliffs Butler Works plant
BUTLER, PENNSYLVANIA -- On Monday night, U.S. Rep. Mike Kelly (R-PA) held a standing-room only public town hall in conjunction with officials from Cleveland-Cliffs Butler Works and United Auto Workers Local 3303, which represents workers at Butler Works, to inform the community of a U.S. Department of Energy proposal that could eliminate 1,300 jobs at this plant. An estimated 525 concerned workers, Butler area residents, and local officials packed Butler County Community College's Founders Hall for the presentation by Rep. Kelly, union leaders, and the general manager of Cleveland-Cliffs.
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.
A Proposed Rule, or regulation, is a requirement imposed by a federal agency.
"The purpose of our town hall was to give the community a chance to make their voice heard. The message we heard was loud and clear: The Department of Energy must formally repeal this rule to save 1,300 family-sustaining jobs at Cleveland-Cliffs Butler Works and to protect the Butler economy," said Rep. Kelly. "This fight isn't just about the jobs at this plant. Seven jobs in the Butler community depend on each job at the Butler Works plant. I will continue fighting to protect these jobs until a deal is in writing and the ink is dry."
"We are grateful for having this chance to explain this rule and what it could mean to our plant and our membership. Likewise, we are thankful for everyone, like Mike Kelly & Representative Deluzio, for picking up our cause and helping to see it through to a positive outcome. Because of this type of support, we are optimistic that the final rule will be favorable to our members, our grid, & our nation," said Jamie Sychak, President of UAW Local 3303.
Last week, Rep. Kelly invited U.S. Energy Secretary Jennifer Granholm to attend the town hall to present the Biden administration's proposed rule to the Butler community. However, a DOE representative was unable to attend the town hall Monday night.
BACKGROUND
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.
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 December, Reps. Kelly and Deluzio wrote this letter to Energy Secretary Jennifer Granholm opposing the proposed rule.