According to The Nation, the U.S. Government is going to give $8 billion this year to the nation’s 10 largest paper companies. The reason is an odd bit of green legislation that gives a 50 cent a gallon tax credit for using fuel mixtures that are a combination of taxable fuels (such as diesel) with alternative fuels.
The process of making paper involves placing wood into a chemical mixture to separate out the cellulose fibers. The leftover material forms what is termed black liquor and it is a good fuel due to its large carbon content. Paper companies use black liquor to produce the heat and energy they need to manufacture paper.
They discovered that they can take advantage of this tax credit by simply adding diesel fuel to the mixture. It is totally unnecessary and far from green, but it allows them to make a handsome profit off of the tax credit. The attempt to engineer green behaviour has actually resulted in the exact opposite. It is amazing how every year our tax code continues to get more complex yet continues to get less and less effective.
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Posted under Climate
Written by admin on April 13, 2009



