RELEASE: KHANNA INTRODUCES BILL TO BUILD NEW IRON AND STEEL PLANTS IN DEINDUSTRIALIZED TOWNS

Washington, DC – Today, Rep. Khanna (CA-17) introduced the Modern Steel Act, which would build new iron and steel plants in deindustrialized towns, bring next generation steel back to America, strengthen domestic manufacturing, create good-paying jobs and retain existing ones, and increase US industrial competitiveness globally.

Khanna unveiled the bill in Johnstown, Pennsylvania, an area with a rich history of iron and steel that has been hit hard by deindustrialization. He was joined by local representative Frank Burns and leaders from United Steel Workers (USW), Cleveland Cliffs, American Iron and Steel Institute (AISI), Blue Green Alliance (BGA), Sierra Club, Alliance for American Manufacturing (AAM), Rocky Mountain Institute (RMI), and local and regional Steelworkers, community members, and policy makers. For the full bill text, click here. 

“I am so proud to introduce the Modern Steel Act, a transformative initiative designed to revitalize our nation's iron and steel industry. This legislation is more than just building new plants; it's a commitment to creating high-quality jobs, advancing innovation, and fostering economic growth. By investing in new steel plants and sustainable practices, we are not only strengthening our industrial base but also bringing communities together. This bill represents our shared vision for a future where American manufacturing leads the world and where every worker has opportunity. It’s the start of building a stronger, more resilient economy,” said Rep. Ro Khanna (CA-17).

“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. 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,” said Rep. Summer Lee (PA-12).

“The USW supports efforts to modernize our steel industry and defend good, domestic jobs. Rep. Khanna’s bill builds on a simple concept: investing in our steel communities and giving workers a voice creates both stronger communities and a healthier environment. We look forward to working with Congress to make this ambitious legislation a reality,” said United Steel Workers President David McCall.

“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,” said Kevin Dempsey, President and CEO of the American Iron and Steel Institute (AISI).  

“The American steel industry is the global leader in terms of technological innovation and greenhouse gas efficient production. Simply put, our steel industry serves as the basis for both U.S. national and economic security.  Congressman Khanna’s Modern Steel Act will provide tools to ensure that our steel sector maintains its clear leadership position, to the benefit of workers, families and steel mill host communities across the industrial heart of the United States,” said Lourenco Goncalves, Chairman, President and Chief Executive Officer of Cleveland-Cliffs. 

“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. 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,” said Ted Fertik, Vice President of Manufacturing and Industrial Policy at the BlueGreen Alliance.  

“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,” said Sierra Club Industrial Campaign Director CeCe Grant. 

 “This is an investment in the future of our nation and our planet. 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,” said GASP Executive Director Patrick Campbell. 

“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. 

“We are delighted by the introduction of the Modern Steel Act 2024, which aims to drive innovation, and the development of near-net-zero steel production. This transformative bill not only promotes innovative practices in near/net-zero steel production but also fosters a collaborative approach to boost job creation and community development. We're encouraged to see the ResponsibleSteel standard referenced as a benchmark for measuring and defining near zero steel, which will drive meaningful transparency and progress in the sustainability efforts of the steel industry and its stakeholders,” said Sivakumar Kuppuswamy, Director of Development and Innovation at ResponsibleSteel.

"The Breathe Project fully endorses the new initiative, particularly praising the provisions that emphasize the transition to green hydrogen. 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,” said Breathe’s Project Executive Director Dr. Matthew Mehalik. 

To achieve these goals, the Modern Steel Act would:

• Partner with the steel industry and workers to build new, modern facilities producing near-zero emissions iron and/or steel, using cutting edge technologies like hydrogen direct reduction
  • 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 near-zero emissions iron and steel
  • Provide $89/ton production tax credit for near-zero emissions iron
  • Test $500M Contract for Difference Pilot Program for near-zero emission steel
  • 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. Summer Lee (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).