PPRC Position Paper on Carbon Neutrality 

Biomass – Carbon Neutrality of Our Bioenergy

• We call on Congress, the EPA, the Treasury Department and other policymakers to provide regulatory certainty for the carbon neutrality of the bioenergy produced at U.S. paper and wood products mills. Unfortunately, for the last 15 years, we have sought regulatory certainty on the carbon benefits of our bioenergy from the EPA and other agencies and have yet to obtain it.
• The U.S. pulp and paper industry is a leading producer of carbon-neutral bioenergy from residuals of the manufacturing process. We use as much of the tree as possible to make pulp, paper, packaging, and wood products. Biomass residuals from the pulp, paper, and wood products industry – such as bark, liquid biomass from the papermaking process (E.g., black liquor), and paper recycling residuals – are used to make approximately two-thirds of the energy used to power our mills, as well as to provide carbon neutral bioelectricity for the grid. Using these manufacturing residuals as a fuel source supports U.S. energy independence and provides a huge greenhouse gas reduction benefit, equivalent to avoiding the emissions of about 35 million gasoline-powered cars.
• The carbon benefits of using forest products manufacturing residuals are recognized globally, benefitting our competitors. Unfortunately, the United States is an outlier for failing to recognize the carbon benefits of our renewable biomass energy.
• We ask Congress to include provisions in the upcoming Farm Bill recognizing the carbon neutrality of the bioenergy produced in pulp, paper, and wood products mills.
• We also ask all agencies, including the Department of Treasury, the Department of Energy, and the EPA, to fully recognize in all policies and regulations, including the clean electricity tax credits, the carbon benefits of the bioenergy produced in pulp, paper, and wood products mills. Under the Inflation Reduction Act (IRA), the Department of Treasury was required to issue regulations to implement the production tax credit and investment tax credit under sections 45Y and 48E of the Internal Revenue Code. Under the IRA, qualified facilities have a greenhouse gas emissions rate of not greater than zero. Existing energy systems at pulp and paper mills should be included as qualified facilities in Treasury’s final rule and annual table.