AISI endorses 'PROVE IT' legislation

The president and CEO of the Washington-based American Iron and Steel Institute (AISI) has declared his support for the Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act, recently introduced into the U.S. House of Representatives.

Kevin Dempsey has applauded the bipartisan legislation co-sponsored by Reps. John Curtis, a Republican from Utah, and Scott Peters, a Democrat from California.

The bill authorizes a comprehensive U.S. Department of Energy study to compare the greenhouse gas (GHG) emissions intensity of certain goods, including steel, produced in the U.S. to the emissions intensity of those same goods produced in other countries.

While the AISI has been quick to react to the legislation, it is not the only recycled materials market that could be affected by the legislation.

Under a Senate version of the PROVE IT Act, covered products include aluminum, articles of aluminum, articles of cement, articles of iron and steel, articles of plastic, biofuels, cement, crude oil, fertilizer, glass, hydrogen, iron and steel, lithium-ion batteries, natural gas, petrochemicals, plastics, pulp and paper, refined strategic and critical minerals, refined petroleum products, solar cells and panels, uranium and wind turbines.

Typically, steel, aluminum or any other metal, as well as glass, plastic and paper and board made with recycled content, enjoy a lower carbon footprint compared with basic materials made with mined, extracted or harvested raw materials.

“American steel is the cleanest in the world, and American steel producers are investing significant dollars to further reduce emissions,” Dempsey says. “But these investments will be put at risk if [the] American steel is undercut by dumped imports from countries with much higher emissions.

“Trade-distorting policies in many countries continue to contribute to massive global overcapacity in steel—much of which is from countries that are producing steel that is much more carbon emissions-intensive than American steel, including China, India, Indonesia and other Southeast Asian nations," he continues.

Dempsey says domestic producers can benefit from policies to demonstrate an imbalance in steelmaking emissions.

“The PROVE IT Act would do as its name implies by creating an official source to verify the superior carbon efficiency of vital American industries, like steel, and give policymakers the data needed to make the case for action," he says. "We applaud Reps. Curtis and Peters for introducing this critical bipartisan bill, and for their commitment to improving the accountability of the most GHG-intensive global producers.”

The House version of the bill includes industry-supported provisions to clarify the legislation will not be used to establish a fee or greater regulation of domestic GHG emissions. A similar Senate version of the PROVE IT Act legislation passed the Senate Environment and Public Works Committee by a vote of 14-5 in January.

“We should embrace the fact that American industries produce cleaner and with better standards than anywhere else in the world,” Curtis says. “Russia and China are on an unapologetic trajectory to energy dominance, using none of the innovative technologies or regulations that make our energy cleaner in the United States. This legislation will help American businesses compete globally, strengthen our trade relationships and provide our allies with a reliable energy partner.”