Jan. 30 (UPI) — U.S. Steel Corp. agreed to pay $4.5 million to Pittsburgh-area communities as part of a legal settlement to address environmental impacts following the 2018 Clairton Plant fire and two subsequent power outages.
The major steel producer reached terms with the Allegheny County Health Department, Clean Air Council, and PennEnvironment, on a multi-million dollar plan to improve public health and air quality in the Mon Valley region in southwestern Pennsylvania.
U.S. Steel will invest an additional $19.5 million to upgrade its steelmaking facility in an effort to reduce harmful carbon emissions that are produced during the coking process, the company said in a statement.
As part of the deal, U.S. Steel will cover part of the litigation costs for PennEnvironment and Clean Air Council, and pay $500,000 to the Allegheny County Clean Air Fund.
The funds will be managed and distributed by the Jefferson Regional Foundation and Allegheny County Department of Economic Development.
The terms of the legal settlement with U.S. Steel were reached last summer, and since then the parties have worked together to finalize the environmental deal for submission in the Federal District Court for the Western District of Pennsylvania for final approval.
U.S. Steel plans to permanently shutter the Clairton Plant, which has been on hot idle since the 2018 inferno, but the closure is not expected to affect any jobs, the company said.
“At U. S. Steel, there are more than 3,000 hardworking men and women in the Mon Valley who strive every day to make essential steel in a way that complies with all environmental regulations. When we miss that mark, we will make changes so we can do better,” said Mon Valley Works Vice President Kurt Barshick. “We’re glad that a significant amount of funds from this agreement will make their way back into the communities where we live and work.”
Over the past decade or more, dangerous air pollutants in Allegheny County have dropped by 80%, according to the Allegheny Health Department.
U.S. Steel, in particular, has made substantial investments, funneling around $750 million into Mon Valley operations in the past five years.
The company spends more than $100 million each year to meet environmental standards at Mon Valley Works, resulting in a 99% compliance rate with environmental permits and regulations.
The settlement comes a little more than a month after Japan’s Nippon Steel Corp. announced its intention to purchase U.S. Steel for $14.9 billion in an all-cash agreement, while U.S. Steel would retain its name and Pittsburgh headquarters.
However, immediate concerns were raised about the purchase of an iconic American brand by a foreign entity, with the White House saying the deal may warrant an investigation from the Committee on Foreign Investments in the United States — even as Japan was a close Washington ally.