Pulp nonfiction ... ok I stole that headline from The Nation

U.S. government paying industry to pollute 2

Chris Hayes has a blockbuster scoop up on The Nation: “Pulp Nonfiction,” about how the U.S. government will pay the paper industry up to $8 billion this year to emit more carbon dioxide.

Yeah, you read that right.

The horror begins, as it so often does, with well-meaning efforts by Congress to encourage biofuels. The $244 billion transportation bill signed into law in 2005 contains a $0.51/gallon tax credit for “mixed fuels”—that is, “taxable fuel” like gasoline or diesel mixed with an “alternative fuel.”

Funny story. See, for years the paper industry has relied on a biofuel derived from the process of removing fiber from wood. It’s called “black liquor.” The fuel runs the process—a nice little closed loop.

But oops! It’s not “mixed.” So, since 2005, the industry has been adding diesel to the fuel in order to qualify for the tax credit.

So they’re emitting more greenhouse gases and pulling down billions of dollars in taxpayer money.

Awesome.

Read Hayes’ piece for the gory details.

David Roberts is staff writer for Grist. You can follow his Twitter feed at twitter.com/drgrist.

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  1. maineguy Posted 4:52 am
    03 Apr 2009

    Before you get carried away maybe you should know the facts.  While the tax credit has been available since 2005, the paper industry did not begin using it until mid-2008.  Secondly, it is just flat out wrong that "more"  petroleum based fuel is being burned because of the credit.  The mixture requirements which Congress established require just  on tenth of one percent diesel in the mix.  And from the companies I am familiar with they have found that this extra btu value has improved the efficiency of thier black liquor boilers allowing them to cut back on the oil they burn elsewhere.  All of these boilers have oil burners for flame stabilization and what appears to be happening is that mixing the oil into the black liquor does stabilize the flame allowing the companies to reduce the oil in their separate burners. Overall the credit has in fact reduced oil use in these facilities.  So just simmer down.  What you should be doing is praising the paper industry who for years have tried to  squeeze every ounce of fuel value out of its organic  waste products to reduce fossil fuel use.  They were the leaders in installing biomass boilers which burned the bark and waste wood coming out of their woodyards, and black liquor is one of largest sources of alternative fuels used in the United States. Maine has over 50% renewable energy in its power mix due in part  to the huge contribution of paper mill biomass boilers electricity production and the hydroelectic power the paper companies installed many decades ago. 
  2. Caitlin Posted 12:12 pm
    07 Apr 2009

    Seconded, Maineguy. To my knowledge (and believe me, I've heard plenty about this in the last two months), Verso and IP were the only companies even doing it in 2008. Most of the industry got going in 2009. In addition, you should check out the comments made on the bill in 2006, which okayed this mix for uses other than transportation, which include recovery boilers, even though it wasn't intended originally in 2005. And our emissions are just fine, thanks, like they were before this all started.You're also making it sound like the evil Big Paper Industry is one single entity intent on sucking the lifeblood out of poor little victimized, gold-hearted Congressman and everyday working stiffs. We're not getting paid in one lump sum; it's a different amount for every mill, which are owned by plenty of different companies. The ones who stand to benefit the most are independent mills, and the money is being used to keep people working. A lot of people in the paper industry have had reservations about how moral this is, but the paperwork is in order, the EPA and IRS both signed off on it and are well aware what's going on. It's allowing mills to keep paying everyday workers in across America, and that's not a bad thing.

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