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December   -,2002




The Honorable Spencer Abraham
Secretary of Energy
U.S. Department of Energy
1000 Independence Avenue SW
Washington, DC 20585

                                                  Business Challenge Program
Subject: US Steel Industry's Global Climat Change

Dear Mr. Secretary:

                                                 a North American trade association with
The American Iron and Steel Institute (AI~SI) is
                                                   represent approximately 70% of the
35 steel producing members. Our U.S. mmbers
nation's steel production.

                                                        Bush's leadership in issuing a
 AISI and its member companies applaud President
                                                      to reduce the nation's greenhouse gas
 comprehensive climate change initiative designed
                                                         AISI supports the wisdom of a
 intensity by 18% in the next ten years. In~particular,
                                                     emissions intensity, and our membeis
 voluntary Business Challenge program to reduce
                                                  in a cost effective manner.
 will do our part to achieve the President's goal

                                               leader in reducing energy intensity in the
 The American steel industry has long been a
                                                     reducing greenhouse gas emissions.
 steel manufacturing process and corresp ndingly
                                                             $1400] billion in ne*
 Since 1975 the steel industry has invested approximately
                                                productivity, Over that time span our
 technology to improve energy efficiency ad
                                                has been reduced by about 45%, and
 energy consumption per ton of steel shipped
                                                by a comparable percentage. For this
 green house gas emissions have been reduaced
                                                 light of these past accomplishments and
 reason, our commitment should be viewe~d in
                                                      will be more costly and difficult to
  the fact that future energy savings and reductions
  achieve.


                                             Rodma identifies the neei~ded research>.,,,
 ~Steel nusyTehooyRampIe
 1(
                                               das o 2010an200cm retoa
 aiidtdevelopnfinft-t'adheve enryefiiny                               the,-President' 8
             199 baehnv~ei~hto se he ~.od~np galsas- bai for meeting
                          oevr     h   oda    ol r epsedifmtermrsof tec inca-11"
 B.tiesCakie
  fibilitv,and are nulfeqyte
 fr"                                  atta   h os faqiigand implementing any.,
                                                      o tt      civ     iepedaoto
    ne tech'nology, mu~tb cnmclyjsia                               a meet a Business,
                                     efe       ofdn      htw
      b/th industry Withti nmn                                  c~ww-
       p~ ~ ~   ~   ~  ~ ~ ~~~U                          L-Ac
                                                r "~to AeCb
eicilency of 20/oe
         6~~{~orr~poning"tbe<inxtegya om
       Ch~lft
                      4ortp ished 5
                           A           43                     t
                                                              tio          a
                                                                       'ndstylestflucturll
          This wilit? c"

                                                                               yield even
                                       new adacdselproducts will
We   also note that the application of                            For example our Ultra-Light
                                  are used byorcsoes.
greater energy benefits as they                    (ULSAB-AVC) five-passeflgre automobile
Steel Auto Body    -Advanced Vehicle Concept                                         cost or
                                              e-gallofl without compromising
design   can achieve greater than 50 miles
                                                 related to steel products and applications
saf ety. We believe this and other initiatie               goal of reduced emissions intensity.
would contribute     to the President's overall national
                                              II
                                                    efficiency goal consistent with our
In addition   to committing to an initial energy                      as its contributions to the
Technology Roadmap,        AISI commits to the following actions
 Business Challenge program:
                                                                iis'i'hs~r~p'rtn'gl~r~oclby,'
                                                           gs~r~ouse
                                                          gr

                                                              &&      ol       >or-
       facilities of`A1ittfiercman1

                                                                    tedmitrs              emsin efficie~ncyu,~
                                                                                           erige,
 2.    Compile' and~reporit grleenht'isg4                                  sks~~ht4odi
                                                           nest
       (emissions per unit of pro'd' tittp




                                               DOE
                             anizatiforthai sthe~            hi the(b
                                                                potinutrytofacilitat
              prored
        w.Etbith
                                                                        Teandlg
                                                           DOplers cugtohers
                                                              t                               Roaderinapese
      3.     mon tin el-tolwork       trdelabsoc~iaelint

                                      tadsoolte enl Rcclingtittreearchtiandidvelopmacivtent
           ResonineaPrgmsuppor
                             to                                                                               i
                                                        incproydinegy90 ffcipuepyf ironenisv
                                          re linguctovls,
            bypsroivseingnemetRamapl
                              to
                                                                 rres relduc greenhouset
                                                                     and
             tbsalretescurcaipan   %rveenvimrecoental

                                                            industrymto                  facilitatetei
      4.      astasblish  oraiztonaistructurte wonithionsth
                           an l
                           10
                                te-eae    ciaecagnomainaddvlpet
            ch omdmuiatinop
primarily relating to
 6.Perform leading-edge    R&D in Cross cutting technologies, of steel products and
                                              through the use
   adace        atralthat will save energy
                                      fuel econmfomtrveils
    applications, including improved
                              tab its                Pirried
            p~einber~t03




                                                    history of cooperation with the
       Mr.Secetay, ISIhasa long and rewardinig
                                                                 colaotieforsowd
                                 we look forward to continued
Department of Energy, and                          to President Bush's Business
                                                                                 Challenge
fulfillment    of steel industry goals to respoifd
                                               way.
program in asignificant andrmeaningful

Sincerely,




 Andrew G. Sharkey III
 President and CEO

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Letter from American Iron and Steel Institute 12.02

  • 1. DRAFT December -,2002 The Honorable Spencer Abraham Secretary of Energy U.S. Department of Energy 1000 Independence Avenue SW Washington, DC 20585 Business Challenge Program Subject: US Steel Industry's Global Climat Change Dear Mr. Secretary: a North American trade association with The American Iron and Steel Institute (AI~SI) is represent approximately 70% of the 35 steel producing members. Our U.S. mmbers nation's steel production. Bush's leadership in issuing a AISI and its member companies applaud President to reduce the nation's greenhouse gas comprehensive climate change initiative designed AISI supports the wisdom of a intensity by 18% in the next ten years. In~particular, emissions intensity, and our membeis voluntary Business Challenge program to reduce in a cost effective manner. will do our part to achieve the President's goal leader in reducing energy intensity in the The American steel industry has long been a reducing greenhouse gas emissions. steel manufacturing process and corresp ndingly $1400] billion in ne* Since 1975 the steel industry has invested approximately productivity, Over that time span our technology to improve energy efficiency ad has been reduced by about 45%, and energy consumption per ton of steel shipped by a comparable percentage. For this green house gas emissions have been reduaced light of these past accomplishments and reason, our commitment should be viewe~d in will be more costly and difficult to the fact that future energy savings and reductions achieve. Rodma identifies the neei~ded research>.,,, ~Steel nusyTehooyRampIe 1( das o 2010an200cm retoa aiidtdevelopnfinft-t'adheve enryefiiny the,-President' 8 199 baehnv~ei~hto se he ~.od~np galsas- bai for meeting oevr h oda ol r epsedifmtermrsof tec inca-11" B.tiesCakie fibilitv,and are nulfeqyte fr" atta h os faqiigand implementing any., o tt civ iepedaoto ne tech'nology, mu~tb cnmclyjsia a meet a Business, efe ofdn htw b/th industry Withti nmn c~ww- p~ ~ ~ ~ ~ ~ ~ ~~~U L-Ac r "~to AeCb
  • 2. eicilency of 20/oe 6~~{~orr~poning"tbe<inxtegya om Ch~lft 4ortp ished 5 A 43 t tio a 'ndstylestflucturll This wilit? c" yield even new adacdselproducts will We also note that the application of For example our Ultra-Light are used byorcsoes. greater energy benefits as they (ULSAB-AVC) five-passeflgre automobile Steel Auto Body -Advanced Vehicle Concept cost or e-gallofl without compromising design can achieve greater than 50 miles related to steel products and applications saf ety. We believe this and other initiatie goal of reduced emissions intensity. would contribute to the President's overall national II efficiency goal consistent with our In addition to committing to an initial energy as its contributions to the Technology Roadmap, AISI commits to the following actions Business Challenge program: iis'i'hs~r~p'rtn'gl~r~oclby,' gs~r~ouse gr && ol >or- facilities of`A1ittfiercman1 tedmitrs emsin efficie~ncyu,~ erige, 2. Compile' and~reporit grleenht'isg4 sks~~ht4odi nest (emissions per unit of pro'd' tittp DOE anizatiforthai sthe~ hi the(b potinutrytofacilitat prored w.Etbith Teandlg DOplers cugtohers t Roaderinapese 3. mon tin el-tolwork trdelabsoc~iaelint tadsoolte enl Rcclingtittreearchtiandidvelopmacivtent ResonineaPrgmsuppor to i incproydinegy90 ffcipuepyf ironenisv re linguctovls, bypsroivseingnemetRamapl to rres relduc greenhouset and tbsalretescurcaipan %rveenvimrecoental industrymto facilitatetei 4. astasblish oraiztonaistructurte wonithionsth an l 10 te-eae ciaecagnomainaddvlpet ch omdmuiatinop
  • 3. primarily relating to 6.Perform leading-edge R&D in Cross cutting technologies, of steel products and through the use adace atralthat will save energy fuel econmfomtrveils applications, including improved tab its Pirried p~einber~t03 history of cooperation with the Mr.Secetay, ISIhasa long and rewardinig colaotieforsowd we look forward to continued Department of Energy, and to President Bush's Business Challenge fulfillment of steel industry goals to respoifd way. program in asignificant andrmeaningful Sincerely, Andrew G. Sharkey III President and CEO