Steel Modernization Act of 2024

The Steel Modernization Act of 2024 aims to strengthen domestic manufacturing, bring next-generation iron and steel production back to the United States, and revitalize deindustrialized regions through financial assistance, tax credits, a pilot program, and a tariff on imported steel with high emissions.

Title I, Industrial Innovation: The Secretary of Energy may award competitive grants, loans, and other financial assistance for projects using advanced iron or steel technologies that reduce greenhouse gas emissions. A pilot program is established to enter into contracts for the production or purchase of near-zero emissions intensity steel, with at least two contracts required within 10 years, including one for steel from a direct reduced iron furnace. A tax credit of $89 per ton is created for near-zero emissions intensity iron produced at eligible facilities, limited to 10 years per facility. An investment credit of 10% is created for on-site zero-emission energy at qualified facilities, with a $500 million limit per project. The Secretary must study and report on policies to stimulate demand for near-zero emissions iron and steel, and submit a strategy to Congress for increasing zero-emissions electricity on the grid. Funds cannot be used for facilities outside the U.S. or for entities owned by the Chinese government or a foreign entity of concern.

Title II, Tariff on Dirty Imported Steel: The U.S. International Trade Commission must report every two years on the emissions intensity of domestic and foreign iron and steel production. The President must impose an additional tariff on imported covered iron and steel products and finished goods based on emissions intensity, with a doubled tariff for products from non-market economies. The President may waive the tariff for countries with similar carbon pricing policies and comparable emissions intensity. For products melted or poured in a third country, the tariff is based on that country's emissions intensity.

Title III, Expenditure of Revenues: For each fiscal year starting in 2025, 75% of tariff revenues from the previous year are appropriated to the Secretary of Energy to carry out the Act. The remaining 25% is appropriated to the Economic Support Fund for foreign assistance to support decarbonization programs.