U.S. Policy, The Paper Industry and CO2 from Biomass
U.S. EPA Regulatory Process on Emissions from Biomass Energy and Other Biogenic Sources
The U.S. Environmental Protection Agency (EPA) is mandated under the Clean Air Act to conduct New Source Review (NSR) prior to issuing permits for large emitters of climate pollution. This regulatory development process is nearing completion for fossil fuel sources, however, under pressure from members of Congress and the industry, the EPA has segmented and delayed the process to separately review how to measure and regulate carbon dioxide (CO2) emissions from biomass energy and other biogenic sources, such as burning pulping byproducts (black liquor) and wood for energy at pulp and paper mills.
In January, 2011, the EPA proposed to defer for a period of three years, the application of the Prevention of Significant Deterioration (PSD) and Title V permitting requirements to CO2 emissions from bioenergy and other biogenic stationary sources (biogenic CO2)
During the three-year deferral period, EPA will conduct a detailed examination of the science associated with biogenic CO2 emissions from stationary sources. EPA will engage with federal partners, technical experts, and an independent scientific panel to consider technical issues that the Agency must resolve in order to account for biogenic CO2 emissions in ways that are “scientifically sound and also manageable in practice.” Following this assessment, EPA plans to develop a set of appropriate accounting procedures for biogenic CO2 emissions that satisfy the principles of predictability, practicality, and scientific soundness.
Status:
The EPA closed its 45-day public comment period on a proposed three-year deferral and study period on May 5th, 2011. Nominations for experts to serve on a scientific advisory board were accepted until May 18th, 2011. A short list of candidates was published and public comments taken until early August 2011. The EPA will announce the Scientific Advisory Board in October, and organize a meeting for November.
Key Links:
- US EPA Website: Carbon Dioxide Emissions Associated with Bioenergy and Other Biogenic Sources
http://www.epa.gov/climatechange/emissions/biogenic_emissions.html - Federal Register notice of proposed three-year deferral
http://edocket.access.gpo.gov/2011/pdf/2011-6438.pdf - Federal Register notice of call for nominations to scientific advisory board
http://yosemite.epa.gov/sab/sabproduct.nsf/0/2F9B572C712AC52E8525783100704886?OpenDocument
Black Liquor Loophole
Tax incentives designed to be a modest boost to development of fossil transportation fuel alternatives to became a multi-billion dollar subsidy to the paper industry when their consultants discovered a legislative loophole which qualified black liquor, a pulping byproduct recovered in the process and burned for energy by the paper industry, as an alternative fuel eligible for major, volume-based tax refunds and tax credits. Black liquor is only burned at virgin fiber mills, therefore such massive incentive and reward directly exclusively at producers of virgin fiber paper results in overproduction and an unfair playing field in the marketplace for recycled paper products.
The EPN has been the leading advocacy organization working to counter heavy lobbying by the industry, to bring attention to this overlooked issue, and to educate Congressional decision-makers and the media about the enormous financial costs and climate implications of the loophole.
Key Links
- Black Liquor Tax Credits: The Gift That Keeps on Giving To Paper Mills -- and Taking From Taxpayers
http://deadtreeedition.blogspot.com/2011/02/black-liquor-tax-credits-gift-that.html - Washington Post: Paper industry pushed further into the black by black liquor tax credits
http://www.washingtonpost.com/business/economy/paper-industry-pushed-further-into-the-black-by-black-liquor-tax-credits/2011/04/19/AFdkrMtE_story.html - Washington Post Editorial: A paper subsidy that must be stopped
http://www.washingtonpost.com/opinions/a-paper-subsidy-that-must-be-stopped/2011/05/03/AFyO86iF_story.html - USA Today Editorial: 10 terrible tax breaks
http://www.usatoday.com/news/opinion/editorials/2011-05-30-10-terrible-tax-breaks_n.htm
