Steel Market Development Institute: Obama Climate Action Plan Vehicle Strategy Flawed

Steel Market Development Institute: Obama Climate Action Plan Vehicle Strategy

PR Newswire

DETROIT, July 10, 2013

DETROIT, July 10, 2013 /PRNewswire/ -- One of the three pillars of the Obama
Administration's Climate Action Plan is to cut carbon emissions in America by
implementing strict fuel economy regulations for American vehicles. Lawrence
W. Kavanagh, president of the Steel Market Development Institute (SMDI), said
"while this is a sound objective, the Administration's strategy to meet this
objective is seriously flawed." SMDI is a business unit of the American Iron
and Steel Institute (AISI).

Kavanagh says new vehicle regulations in the Climate Action Plan only consider
the so-called "tailpipe emissions," which are emissions that occur when the
vehicle is being driven. According to SMDI, as vehicles get lighter and engine
technologies advance, the emissions from driving become a much smaller part of
total vehicle emissions. Citing studies by the University of California-Davis
and University of California-Santa Barbara, he noted emissions from materials
and vehicle manufacturing can be half of a vehicle's total emissions. He added
that regulatory systems that "ignore this significant portion of a vehicle's
total emissions" may not achieve the desired environmental result, especially
as vehicles become more fuel efficient. SMDI supports vehicle regulations
that consider emissions from all phases of a vehicle's life: manufacturing,
use and end-of-life disposal.

"Many materials used for vehicle lightweighting and in alternative drivetrains
produce such high emissions when they are made that they may not be overcome
by savings during the driving phase," said Kavanagh. "Considering only
tailpipe emissions may result in a net increase in vehicle emissions, which is
why the only way to ensure a reduction in emissions is to regulate total, or
life cycle, vehicle emissions."

"Regulators in the United States and European Union have fallen into the trap
of waiting for each other to 'go first' in implementing life cycle based
regulations," said Kavanagh. "The concepts are well known, so let's work out
the details to get it right."

For additional information about using a life cycle approach in vehicle
regulations, visit:

AISI serves as the voice of the North American steel industry in the public
policy arena and advances the case for steel in the marketplace as the
preferred material of choice. AISI also plays a lead role in the development
and application of new steels and steelmaking technology. AISI is comprised
of 24 member companies, including integrated and electric furnace steelmakers,
and 125 associate members who are suppliers to or customers of the steel
industry. AISI's member companies represent over three quarters of both U.S.
and North American steel capacity. For more news about steel and its
applications, view AISI's website

SMDI grows and maintains the use of steel through strategies that promote
cost-effective solutions in the automotive, construction and container
markets, as well as for new growth opportunities in emerging steel markets.
For more news or information, visit or follow us on twitter
at SMDI automotive market investors include: AK
Steel Corporation, ArcelorMittal Dofasco, ArcelorMittal USA LLC, Nucor
Corporation, Severstal North America, ThyssenKrupp Steel USA, LLC, and United
States Steel Corporation.

SOURCE Steel Market Development Institute

Contact: Deanna Lorincz, 248.945.4763,; Jennifer
Greenfelder, 248.945.4767,
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