A nice spin, but not correct in many respects. If you read the IRS notices on this credit, you will see that the mixture credit was designed to be used in any form of energy production, not just transportation. They give an example of fish-processing companies using a mixture of fish oil and diesel to produce energy in a boiler. Secondly, the companies I am familiar with have found that adding the one-tenth of one percent diesel in the black liquor has allowed them to reduce their oil use. This is due to two things. Black liquor boilers have flame stabilization oil burners, and the mixture appears to be helping to improve combustion, thus reducing overall oil use. The btu value of the fuel is also improved, thus improving overall production and allowing companies to use less oil in their separate oil boilers. At a time when the financial and auto industries are getting bailed out by the government, is there any difference in getting stimulus money to an industry which is being devastated by the recession by means of this credit? There are millions of jobs at stake if these companies go under.
Here in Maine, a traditional paper state, we have already had some bankrupcies and permanent mill closures. The credit has allowed some stuggling companies to stay afloat until the economy recovers. Not all are IP-sized, but they all employ real people who did nothing to cause this slump in paper use. The credit is simply helping to reward an industy that has led the way for years in using renewable fuels in the form of biomass boilers, hydroelectric power and black liquor. Is helping this industry survive the recession so evil as you suggest?