PRTR Trends in the Automotive Industry

Using PRTR data to measure & assess progress

November 11, 2014

Abt Associates | pg 2

Overview

PRTR data can be used to track industry-level trends in toxic releases and industry progress in pollution prevention

In this presentation, we use PRTR data to:

– Track trends in releases by the automotive sector

– Investigate the drivers changes in releases

– Look at the impact of pollution prevention on the sector’s releases

Automotive Industry as defined in this analysis:

– Motor Vehicle Manufacturing (NAICS 3361)

– Motor Vehicle Body and Trailer Manufacturing (NAICS 3362)

– Motor Vehicle Parts Manufacturing (NAICS 3363)

Abt Associates | pg 3

Release Trends for Automotive

2005 2006 2007 2008 2009 2010 2011 -

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

North American Automotive Industry Toxic Releases

United States Canada Mexico

Kgs.

mill

ions

-63%

-51%

Abt Associates | pg 4

Release Trends by Country

2005 2006 2007 2008 2009 2010 2011 -

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

United StatesUnited StatesUnited States

United StatesUnited States

United StatesUnited States

Canada

Canada Canada

Canada

Canada

Canada Canada

Mexico

Mexico Mexico

Mexico

Mexico

Mexico Mexico

North American Automotive Industry Toxic Releases

Kgs.

mill

ions

Abt Associates | pg 5

What is driving the decrease in releases?

Is it due to pollution prevention or other factors?

– Economy?

– A shift from releases to other waste management methods (e.g., treating the waste)?

– Reductions from a few facilities that are driving the sector-wide trend?

– Outsourcing?

Abt Associates | pg 6

U.S. Automotive TRI releases have declined significantly

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000 TRI Releases by the Automotive Industry

-58%

Abt Associates | pg 7

How does the trend compare to trends in other sectors?

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

10000000

20000000

30000000

40000000

50000000

60000000

0

500000000

1000000000

1500000000

2000000000

2500000000

TRI Releases: Automotive vs all Manufacturing

Auto Manufacturing

Mill

ions

of P

ound

s (Au

tom

otive

)

Mill

ions

of P

ound

s (M

anuf

actu

ring)

-58%

-26%

Abt Associates | pg 8

Are reductions due to economic trends?

Releases includes onsite and offsite disposal or other releases.

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

-

20

40

60

80

100

120 TRI Releases by Automotive Industry vs Production

Releases Industrial Production Index*

Tota

l Re

leas

es (M

illio

ns o

f Pou

nds)

Indu

stria

l Pro

ducti

on In

dex

(200

4=10

0)

-58%

+3%

Abt Associates | pg 9

Did wastes shift from releases to other waste management?

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

47,659,854 19,797,301

136,872,722

137,252,575

28,035,581

21,931,801

TRI Waste Management Methods for the Automotive Industry

Releases Energy RecoveryRecycling Treatment

Abt Associates | pg 10

Are reductions sector-wide or driven by a few facilities?

*Based on cumulative releases 2004-2013

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130.0

500,000.0

1,000,000.0

1,500,000.0

2,000,000.0

2,500,000.0

3,000,000.0TRI Releases by Top 3 Automotive Facilities

FEDERAL-MOGUL VSPFORD F150 & TRANSIT VAN ASSEMBLY PLANTNISSAN ASSEMBLY & BATTERY PLANT

Mill

ions

of P

ound

s

Abt Associates | pg 11

Are reductions sector-wide or driven by a few facilities?

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Automotive Industry TRI Releases

All Other Facilities Top Three Facilities

Mill

ions

of P

ound

s

Abt Associates | pg 12

Which subsector was driving the decreases?

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000 Automotive Industry TRI Releases, by NAICS

Motor Vehicle Manufacturing (3361)Motor Vehicle Body and Trailer Manufacturing (3362)Motor Vehicle Parts Manufacturing (3363)

Mill

ions

of P

ound

s

Abt Associates | pg 13

Are reductions a result of outsourcing?

Is an increase in outsourcing driving the reductions?

Data sources quantifying outsourcing were not identified

As a proxy, examine facilities that reported over the whole 10-year period (→facility still operating in U.S.)

– Examine the chemicals at those facilities that were reported over the 10-year period (→ process still operating in U.S.)

Abt Associates | pg 14

Are reductions a result of outsourcing?

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000 TRI Releases by Automotive Facilities

Mill

ions

of P

ound

s

-43%

-58%Facilities Reporting All Years

All Automotive Facilities

Abt Associates | pg 15

What is driving the decrease in TRI releases? Is it due to pollution prevention or other factors?

– Economy?

• 2006-2009 production was a driver, but not in recent years

– A shift from releases to other waste management methods (e.g., treating the waste)?

• Some shift to increased recycling

– Reductions from a few facilities that are driving the sector-wide trend?

• No

– Outsourcing?

• Some influence but limited information available

Abt Associates | pg 16

What chemicals were reduced?

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Automotive Industry TRI Releases by Chemical

XYLENE (MIXED ISOMERS) N-BUTYL ALCOHOL CERTAIN GLYCOL ETHERS1,2,4-TRIMETHYLBENZENE ZINC COMPOUNDS All Other Chemicals

Mill

ions

of P

ound

s

Abt Associates | pg 17

What source reduction activities were reported?

Good Operating Practices35%

Inventory Control6%

Spill/Leak Preven-tion7%

Raw Material Modifications

15%

Process Modifica-tions19%

Degreasing4%

Surface Prep/Fin-ish6%

Product Modifica-tions8%

Source Reduction Activities Reported by Automo-tive Industry to TRI, 2013

Abt Associates | pg 18

Examples of additional P2 information reported to TRI A switch from solvent based coatings to water based coatings

has resulted in reduced use of solvents reported.

Reducing copper formulas for brake pads, which will reduce the brass in some blocks, which will reduce the brass we use, thus reducing copper, lead, and zinc.

Switched to better quality lead anode fixtures which increased the life expectancy of the anodes resulting in a 40% reduction in lead waste during 2013.

Our recycling company has helped us in obtaining and developing the latest technologies and processes to recycle as much material as we can.

P2 Search Tool: www.epa.gov/TRI/P2

Abt Associates | pg 19

P2 progress using a statistical approach

Methodology: “Differences-in-differences” approach (common

in economics literature)

– Estimates how toxic releases at each facility-chemical changed in the

year before and after implementing a source reduction project

– Controls for other facility- and industry-level factors (e.g., changes in

production, economic conditions, pollution regulations)

Main findings:

– The average source reduction project results in a 9 – 16% decrease

in facility-level TRI releases (of targeted chemicals).

– Between 1991 and 2012, source reduction may have reduced

cumulative U.S. TRI releases by as much as 13 billion pounds.

Abt Associates | pg 20

Results for the automotive sector: impact on facility-level releases

Comparing within a facility across chemicals

Comparing within the sector for the same chemical

Source reduction reduced releases of targeted chemicals by 26%

Source reduction reduced releases of targeted chemicals by 12%

Abt Associates | pg 21

Results for the automotive sector: impact on sector-level releases

Cumulative difference is 100 - 700 million lb avoided through source reduction activities

Abt Associates | pg 22

Wrap up

Automotive sector TRI releases continue to decline, even as production has increased since 2009

Has pollution prevention been a driver of the reduced releases?

– Our analyses indicate that the implementation pollution prevention activities by the automotive industry has contributed to reduced releases

– The results more broadly suggest a potential for the use of PRTR data as a tool to track pollution prevention progress