The PennZone

~ Harrisburg, PA - In a recent letter sent to the U.S. Department of Energy (DOE), Governor Josh Shapiro expressed concerns on behalf of Pennsylvanians regarding the proposed energy efficiency standards for critical grid components and materials. The governor requested a more flexible timeframe and additional time for manufacturers to upgrade their processes.

The DOE's final rule, announced by Secretary Jennifer Granholm, takes into account Pennsylvania's concerns and allows Cleveland-Cliffs Butler Works to continue producing steel that is essential for critical infrastructure work in the United States. This decision not only safeguards over one thousand jobs in Pennsylvania but also reduces carbon emissions through new innovation.

Governor Shapiro had previously sent a letter to the White House Office of Management and Budget outlining his concerns that the proposed rule would restrict the use of traditional steel designs in transformers within a short three-year timeframe. This would have had a significant impact on Pennsylvania's Butler Works Plant, which is the sole domestic manufacturer of grain-oriented electrical steel.

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The proposed rule threatened to eliminate 1,100 jobs at the plant and could have resulted in its closure at a time when there is an increased need for transformers to produce electricity for infrastructure projects across the country.

After engaging in conversations with Governor Shapiro's administration, DOE's final rule reflects Pennsylvania's primary concerns. It not only protects critical union jobs and workers but also provides $75 million in grants to help manufacturers like Butler Works reduce their energy bills and carbon emissions through upgrades.

Governor Shapiro commended this decision, stating that it will allow Butler Works to continue its existing line of steel production while supporting upgrades that will spur innovation, protect jobs, and reduce carbon emissions from the plant. He also expressed gratitude towards the Biden Administration for their commitment to protecting and creating energy jobs while creating a more efficient, cost-effective, and reliable grid in the long term.

Cleveland-Cliffs Butler Works has also welcomed this decision by DOE, stating that they expect to see an increase in demand for grain-oriented electrical steel. This not only ensures the preservation of 1,100 jobs but also opens up the possibility for expansion.

Governor Shapiro's letter to the Biden Administration regarding the proposed rulemaking can be viewed here. The Shapiro Administration's efforts to engage DOE and protect over a thousand critical jobs in Pennsylvania can be read about here.

The governor's press office can be contacted at ra-gvgovpress@pa.gov for any media inquiries.

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