PA officials celebrate saved steel jobs after change in federal energy rule

More than 1,000 steel jobs will be saved at Cleveland-Cliffs Butler Works plant in Butler County after the U.S. Department of Energy (DOE) on Thursday revised energy efficiency standards for critical electric grid components like distribution transformers and materials like grain-oriented electrical steel.

The DOE issued its final rule and said it would adjust its rulemaking to allow for a longer timeframe for companies to continue relying on grain-oriented electrical steel (GOES) for electricity transformers after significant public opposition. The Butler Works Plant is the sole domestic manufacturer of GOES, and the proposed rule threatened to eliminate 1,100 Pennsylvania-based jobs at the plant.

“We fought to protect our jobs, our plant, and our community. And today, we won,” said Jamie Sychak, President, UAW Local 3303. “The DOE’s final rule ensures a viable pathway for UAW-made steel to supply the transformer market long into the future. Throughout this process, we worked closely with Cliffs, our UAW leadership, local, state, federal officials, and the DOE to provide feedback on the proposed rule.”

On Monday, U.S. Rep. Mike Kelly (R-PA), a Butler resident, held a standing-room only town hall at Butler County Community College in conjunction with Cleveland-Cliffs and UAW Local 3303 calling on DOE to reverse the rule. “Make no mistake: the sudden reversal of this rule is a direct result of the Butler community’s massive pushback against this wrongheaded decision. This is democracy in action,” he said.

Gov. Josh Shapiro said after engaging in conversations with his administration, DOE’s final rule reflects Pennsylvania’s primary concerns, protecting critical union jobs and Pennsylvania workers while also making critical investments to help Butler Works and other manufacturers reduce their energy bills through a $75 million grant to reduce carbon emissions.

“Pennsylvania is a national energy leader, and the skilled workers at Cleveland Cliffs in Butler County know how to build the transformers that power our nation’s critical infrastructure,” Shapiro said.

With the new rule allowing for a longer timeframe for companies to rely on GOES steel, Cleveland-Cliffs officials said they expect to see an increase in demand for GOES.

“We are grateful that the U.S. Department of Energy (DOE) was open to the feedback provided by Cleveland-Cliffs and our clientele of transformer manufacturers, and adopted major changes to the originally proposed transformer efficiency rule,” Lourenco Goncalves, Cleveland-Cliffs’ Chairman, President and Chief Executive Officer said. “The final rule ensures Cliffs’ ability to continue producing highly-efficient GOES in the United States. Once this rule is enacted, we expect to actually see an increase in demand for our GOES, opening the possibility of future investments and expansion of our plants in Butler, PA and Zanesville, OH.”