J'Burg Plant Helped by Energy Bill

Energy legislation that was sent to the governor today to be signed into law includes provisions advocated by state Rep. Dan Surra, D-Elk/Clearfield, that will help to preserve hundreds of local jobs at Domtar Corp.'s Johnsonburg paper mill.

The comprehensive energy bill (H.B. 2200) includes language that would boost the market for an alternative energy source generated by the Johnsonburg mill's paper-making process. Similar provisions are also included in another bill (Special Session S.B. 25) that was passed by the House today.

"Paper mills that want to stay in business have to remain competitive," Surra said. "This legislation will help preserve jobs at Pennsylvania's two paper mills – including the 400 jobs at the mill in Johnsonburg -- by ensuring that the byproduct of the paper-making process, which paper plants have been using as a power source for years, is a significant part of Pennsylvania's overall alternative energy strategy."

Surra said the legislation defines the "black pulp liquor" produced as a byproduct of the paper-making process as a Tier I form of alternative energy under the state's Alternative Energy Portfolio Standards law, as long as electricity produced using the black liquor is generated in Pennsylvania. The AEPS law requires a certain percentage of electricity sold in the state to be generated using these alternative energy sources. The inclusion of black pulp liquor as a Tier I alternative energy source should expand the market for this byproduct and give the paper mill a prominent role in the state's emerging alternative energy industry, Surra said.

"Without this legislation, the Johnsonburg paper plant faces a tough situation," said Surra, who worked with York County state Sen. Mike Waugh on the measure. "The current AEPS law creates a more competitive market for other forms of wood-based biomass, including the raw materials the paper mill needs for production, while at the same time classifying the black liquor produced by the mill as an inferior form of alternative energy. This legislation levels the playing field by treating all forms of wood-based biomass – including the black pulp liquor produced by the paper mill in Johnsonburg – equally."

Surra said paper mills have been producing alternative energy as a byproduct for decades, and already produce about 60 percent of the energy they use from their own renewable biomass. The paper industry is the largest producer of biomass energy in the country.

"Paper mills have been ahead of the curve on the production and use of alternative and renewable energy for several generations," he said. "Pennsylvania's alternative energy strategy needs to recognize and reward that instead of putting these plants at a competitive disadvantage."

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