STEEL GROUP SEEKS SUPPORT OF OHIO DELEGATION FOR DELAY OF AIR STANDARDS, CITES UNFAIR BURDEN ON MIDWEST

COLUMBUS, Ohio (August 24, 1998) –  A group representing Ohio's steel industry is seeking the support of U.S. Senate and House members representing Ohio to delay implementation of new federal air-quality standards, citing economic damage to Buckeye State businesses and consumers.

In a recent letter to the Ohio congressional delegation, the Ohio Steel Council said the proposed standards by the U.S. Environmental Protection Agency would put Ohio steelmakers at a competitive disadvantage and result in higher costs, which would have a chilling effect on the state's economy. The standards would require a greater reduction in ozone emissions for Ohio and other Midwestern states.

The Council, comprised of steel producers, steelworkers and state and education officials, maintains that the decision to require greater reductions in the Midwest is based on unsound technical judgments as well as incomplete or outdated information. The Council also challenges the EPA's contention that these new restrictions will reduce ozone emissions in the Midwest and significantly improve air quality downwind, primarily on the East Coast.

"Asking the Midwest to shoulder the responsibility for ozone levels in the Northeast is a bold step and should be based on corroborated scientific evidence," said Harold V. Kelly, co-chairman of the Council and executive vice president at Republic Engineered Steels, Inc. in Massillon.

"The EPA is not allowing sufficient time for all parties to evaluate the data, perform tests and review results. Ohio businesses have a right to expect that there would be a solid scientific foundation for governmental action of such considerable economic impact."

The Council is urging delegation members to take action opposing the EPA's efforts to implement the standards until further technical information can be provided to support the rules, which are expected to be developed into a final version in September. The proposed rules could require companies to implement control measures as early as September 2002.

Under the new rules, Ohio utilities would have to spend substantial sums to meet compliance requirements. Much of that cost could be passed on to Ohio businesses and residential consumers. The Ohio steel industry alone spends in excess of $300 million on electricity each year.

In addition, the standards could force steel producers to invest in unnecessary emission control equipment, which would put them at a disadvantage when competing with other states not targeted in the EPA plan.

The Council said the EPA has been unwilling to share crucial technical information with Ohio steel companies or with the Ohio Environmental Protection Agency. The U.S. EPA has also been unwilling to wait for local state-sponsored tests to better determine the sources of ozone emissions, the Council said.

The Ohio Steel Council, appointed in 1991 by Gov. George V. Voinovich, is a public-private partnership designed to strengthen ties among the steel industry, the state of Ohio and its citizens. The Council's member organizations are AK Steel Corp., Armco Inc. (associate member), CSC Ltd., LTV Steel Co., Lukens Steel (associate member), North Star Steel Ohio, Republic Engineered Steels, Inc., The Timken Company, USS/KOBE Steel Co., WCI Steel, Inc., Wheeling-Pittsburgh Steel Corp., the United Steelworkers of America, the Ohio Legislature, Ohio Department of Development, The Ohio State University and Youngstown State University.