Last week, while having a “catch-up” phone conversation with a friend from a decade ago, we some how turned our conversation to Black Liquor. Since he is the expert on the subject being qualified by having an engineering degree and years working in the pulp mill industry, I asked questions and he answered.
First for those of you who are not familiar with black liquor it is a liquid byproduct you get at a paper mill when wood is turned into pulp. This material holds the wood fibers together. Before you can make paper, the liquid must be removed. Paper mills have used this liquid energy for years to generate electricity and heat for their own use. Mills that rely on recycled paper to make newsprint — like the kind in the paper you are reading — do not get this byproduct since they are not using wood.
Black liquor has been around since the first tree and the first paper mill. During the past couple of years, this byproduct has turned into a profit maker for our paper mills and a loss for the American taxpayer. This happened when our well-meaning Congress tried to help without studying the consequences and most particularly the loop-holes.
In 2005, Congress passed an alternative fuels mixture tax credit inside the Safe, Accountable, Flexible and Efficient Transportation Equity Act. The plan was to encourage alternative-fuel use in vehicles. This is part of the plan to reduce our dependency on oil. As taxpayers, we were OK until 2007 when our friends in Congress added an amendment so that non-transportation companies could be eligible for the credit.
Kraft paper mills who were already using the natural black liquor could now add as little as 0.1 percent of diesel to the fuel mixture and they could qualify for a tax credit. Congress thought it would cost us no more than $60 million a year. This has not worked quite the way they expected. Some reports show that International Paper could claim more than $1 billion this year alone. Across the country from paper mill to paper mill we could be at $10 billion or better in lost tax revenue.
Once Congress went oops, they frantically started trying to figure out ways to repeal the credit and this is expected by year end. One IRS report, I read, said the tax credit does not have to be claimed now and could be carried out during the next 15 years. You cannot blame the paper mills for taking advantage of this tax credit. Any business in the country looks for ways to pay as little taxes as possible. We do the same on our personal income taxes.
Our elected Congress, who we expect to be our watch dog, has instead opened the gate and are giving dog biscuits to all who enter. Now I am more excited than ever about the new Health Care Act coming our way. I wonder how long it will take for the oops to drop there.
Sandy Sanders is the publisher of The Valdosta Daily Times.
What We Think
From the publisher: Black liquor has turned to gold
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Elections: Creating a two-party region?
Twenty years ago, most area elections were decided during the primaries. Then, almost every candidate qualified as a Democrat. While there may be plenty of challengers on the ballot, many seats were decided in July or a few weeks later during the primary run-off.
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Thumbs up, thumbs down
THUMBS UP: To South Georgians making fine impressions on television singing competitions. Phillip Phillips of Leesburg won “American Idol” this week. Meanwhile, Lowndes High School graduate Stacia Watkins participated in the new ABC show “Duets.” Well done!
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Farewell to the vanishing ace
Donald S. “Bush” Bryan was not only a rare individual. He was part of a vanishing breed.
An Adel resident for the past 30 years, Bryan was a World War II flying ace. Not just an ace but a double ace. A pilot must down five enemy aircraft to become an ace; Bryan downed 13.3 enemy planes in Europe. The fractions represent planes downed with other pilots. -
A widespread mosquito alert
In announcing the discovery of a mosquito carrying the West Nile Virus strain, city and health officials did not include the specific location of the discovery.
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Of Guantanamo Bay and a Founding Father
Some readers may wonder how a Valdosta High School graduate could bring himself as an attorney to represent a Guantanamo Bay prisoner charged in connection to the Sept. 11, 2001, terrorist attacks.
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Congratulations, VSU Softball!
This weekend, Valdosta State University Blazers Softball became the latest team to add to Valdosta’s TitleTown legacy.
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School’s out so watch out!
Summer is a time of rest, vacations and trips. It is a time when school is out, when people take time off from work, when people may stay out a little later. It is a time of swimming, trying new things, and seeking adventure.
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Qualifiers are next leaders
While the national media focuses attention on the presidential election, it should be remembered that we will also choose our local leaders this year.
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Thumbs up
THUMBS UP: To the 2011-12 arts season. Theatre Guild Valdosta’s rollicking comedy, “Caught in the Net,” officially brings to a close a magnificent schedule of shows ranging from theatre to opera to concerts to art exhibits and more from a variety of area venues. Theatre Guild will also open the 2012-13 season this summer with the musical “Into the Woods.” Until then, arts lovers can soon enjoy a new series of exhibits from the year-round Annette Howell Turner Center for the Arts and three musicals starting in two weeks from Peach State Summer Theatre.
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Events that get things done
Finding something that repeatedly attracts the public is difficult enough, but finding an event that accomplishes that feat while also promoting your organization and helping others … well, in many places, that’s a rarity.
Not so for the Valdosta area. - More What We Think Headlines
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Elections: Creating a two-party region?
