AF&PA Expresses Serious Concerns With House Energy and Climate Policy Legislation

Release Date: 05-22-2009

WASHINGTON -- In response to approval last night in the House Energy and Commerce Committee of the American Clean Energy and Security Act of 2009, American Forest & Paper Association President and CEO Donna Harman issued the following statement:

“Affordable energy is essential to American manufacturers’ competitiveness, which is especially true for the forest products industry given that our international competitors frequently enjoy substantial cost advantages. Climate and energy legislation that raises the costs of U.S. production is a serious concern.

“The economy has dealt a devastating blow to our industry, costing us more than 300,000 jobs—almost a quarter of our workforce since 2006. Accordingly, we redoubled our efforts to reduce the burden this legislation will unavoidably impose on forest products companies and workers.

“The bill has come a long way from where it started and we are grateful for the help from those in Congress who understand and care about the forest products industry and its workers. Recognition of credit for our power in an RES is a significant breakthrough and we look forward to working with Congress to ensure that the definition of biomass promotes sustainable forest management and encompasses the full benefits of carbon neutrality that have been recognized by the Intergovernmental Panel on Climate Change.

“We also hope Congress will improve the cap-and-trade allocations for energy intensive manufacturers who are subject to intense international competition. Without improvements, U.S. manufacturing will be unfairly penalized by this legislation. Improvements are also needed in provisions that defer decisions about forest offsets to the EPA as this creates too much uncertainty on a significant issue. Forests, forest products, and their associated manufacturing processes all benefit carbon-reduction goals and should be recognized favorably in the bill.

“Without additional improvements, the U.S. forest products industry will be unfairly penalized by this legislation. We hope to be able to work with members of the House to secure additional improvements in advance of a floor vote so that this legislation can provide the clean energy we need without economic disruption to the forest products industry.”

FACTS

• Papermakers and wood products manufacturers employee approximately one million workers, but have lost more than 300,000 workers since 2006—almost one quarter of the industry’s workforce;
  
  

• The forest products industry generates:
  
  

  
  

  • 28.5 million megawatt hours of carbon-neutral renewable energy annually—enough to power 2.7 million homes.
    
  • Two-thirds of their energy needs from carbon-neutral renewable energy they generate onsite from renewable sources.
    
  • More renewable energy than all solar, wind and geothermal sources combined.
    

For More Information:

Scott Milburn
(202) 463-2466
scott_milburn@afandpa.org