United Steelworkers Union members, including one from
Johnsonburg, are urging federal government to retain the
alternative fuel mixture tax credit for the U.S. paper
industry.

Joe Calla, who works at the Domtar mill in Johnsonburg, is one
union member who recently met with elected officials.

Calla explained Friday that he and others spoke with U.S.
senators Charles Grassley, R-Iowa, and Max Baucus, D-Montana, who
both want to repeal the paper mill industry’s tax. Calla believes
the talks were beneficial.

“From what we were getting, it sounded like most of (the other
senators) didn’t want to (end the credit) because it was actually
showing that Congress was serious about giving tax credits out to
people who use biofuel instead of oil-based (energy),” Calla
said.

If not renewed, the federal tax credit will run out Dec. 31.

The tax credit originated from a 2007 law change that expanded
eligibility for a 50 cents-per-gallon alternative fuels mixture
credit to liquid fuels derived from biomass, including the wood
pulp “black liquor” byproduct, according to a union press release
issued Friday.

“We’re worried that the tax credit would be cut out, and we
would like to see some type of tax relief if the credit is stopped
by Congress,” said Lynne Baker, who handles public relations for
the union.

“We feel that the paper industry should get credit for being
very environmentally viable. We feel that this industry, like
others, should get a break for using renewable fuel.”

There is no set dollar amount that the union is looking for in
tax credits. Companies can obtain as much credit as they wish by
mixing alternative fuel with 0.1 percent of a fossil fuel, such as
diesel.

“We feel that this credit definitely helps keeps jobs at the
Domtar facility in Johnsonburg,” Baker said.

Domtar’s Johnsonburg mill employs more than 400 people,
according to Calla.

The union believes it deserves financial relief because the
paper industry produces almost 70 percent of its own power from the
wood pulp byproduct and plants trees and uses biomass to lessen
environmental impact.

“The timing of this credit is impeccable,” union International
Vice President Jon Geenen, who leads the union’s paper sector,
explained in the press release. “The paper industry is cash-starved
right now and in need of capital investment to maintain black
liquor recovery systems and develop other biomass conversion. This
credit maintains other critical infrastructure if there is to be a
vibrant paper industry in the U.S.”

The paper industry has taken a beating in recent years because
of declining demand for paper and wood products amid a poor
economy. Baker cited a combination of factors taking its toll on
the industry, such as the poor national economy and increased paper
imports from other countries.

“For many mills, this tax credit is what’s keeping the doors
open,” she said.

“We have a chance to help the paper industry recover from this
recession and sustain a number of high-paying, family supporting
manufacturing jobs,” union International President Leo Gerard said
in the press release. “No one benefits if this sector is lost.”