Take Action: Don't Let Paper Companies Get a Tax Credit for Destroying the Planet!

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Don't Let Paper Companies Get a Tax Credit for Destroying the Planet!

The paper industry is using a loophole in climate change legislation to siphon off our tax dollars to destroy trees and the planet.

Paper companies have always burned a waste product called "black liquor" to power their mills. Now, however, they're exploiting a loophole in the alternative fuels credit in a 2005 transportation bill to qualify for a 50 cent per gallon tax credit by adding diesel to the black liquor -- lowering industry standards and adding significantly to their CO2 emissions.

The Senate Finance committee is considering closing this loophole but may be persuaded by industry lobbyists insisting that the industry needs this to stay afloat.

Send a letter to Senate Finance Chairman Max Baucus (D-Mont.) asking him to immediately repeal the paper industry's ability to abuse an alternative fuels credit.

Subject:

Dear Sen. Baucus

(Edit Letter Below)

I am writing to urge your immediate action to close the tax credit loophole in the SAFETEA-LU 2005 transportation bill, which is costing taxpayers billions of dollars while perversely increasing consumption of fossil fuel in contravention of the Act's intention. I urge you to end this loophole as soon as possible.   
 
Paper companies are adding a small amount of diesel fuel to each gallon of biomass based black liquor fuel historically consumed by mills in order to apply to the IRS and become registered as an "alternative fuel mixer" and claim a multimillion dollar tax credit.

International Paper in March 2009 received a payment of $71.6 million for one month of adding diesel fuel to its biomass fuel. The alternative fuels clause of SAFETEA-LU, was intended to increase the use of ethanol and other biofuels in cars and trucks, not increase the use of fossil fuels by already dirty industries.  
 
The massive payments adversely bias the free market to favor the most polluting and least efficient mills in America. The losers include more environmentally responsible producers using recycled paper content.  Such mills, which are critical to developing a green jobs economy, are being put at severe disadvantage.

The exploitation of this loophole by paper companies clearly violates the intention of the original legislation by increasing use of fossil fuels and costing taxpayers billions of dollars.  It is critical that Congress take swift action to close this loophole. 
 
Thank you for your immediate attention to this issue.
 
Sincerely,

[Your name]
[Your address]

Take Action on this Issue

Senate Finance Chairman

Senator Max Baucus

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