Tuesday, March 5, 2013

NewPage Union Opposes Legislation Ending Biofuel Tax Credits

The United Steelworkers Union (USW) says that proposed state legislation to end Maryland's biofuel credit could increase pollution and fuel costs, suppress development of renewable fuels and lead to massive job loss.
Maryland House Bill 1102 and Senate Bill 684, if passed, would redefine renewable energy to exclude "black liquor"-a byproduct of the pulping process in the manufacture of paper-as a biofuel.This would eliminate the payments that paper companies currently receive from Maryland utilities for selling renewable-energy credits to them. Maryland adopted a renewable energy law in 2005 that requires utilities to buy certain minimum percentages of their electricity from renewable sources. Washington, D.C. has a virtually identical law known as the renewable portfolio standard law.
Paper companies use the spent pulping liquor, which includes bark and unused wood chips leftover from the pulping process, as fuel so that the material does not go into landfills or water. This biomass fuel is carbon-neutral because the trees that are planted for every tree brought into a mill absorb more carbon dioxide than the mill emits when it uses this biofuel.
Unlike other industries, the paper sector relies more on renewable fuel to reduce its dependency on fossil fuels, and this helps the U.S. in its overall goal to reduce its carbon imprint and dependence on other nations for fuel.
"If the fuel credit is taken away, it will change the economics of fuel use at our mill," said USW Local 676 President Greg Harvey , who is a recovery boiler operator at the NewPage paper mill in Luke, Maryland.