(While there might be a “duh – that’s what capitalist corporations do” factor here, we can’t put pressure on to fix it unless we know.  Thanks for highlighting this, BP. – promoted by NanuqFC)

International Paper is adding diesel fuel to an existing alternative fuel process (Black Liquor)developed and in use since the 1930’s .By adding the diesel it would not otherwise have used IP is reaping millions in tax credits. A change in tax laws under the Bush transportation bill in 2005 allows tax credits for alternative fuel use .One feature of the transportation bill is a 50 cent a gallon tax credit for using fuel mixtures . This is blending of taxable fuels and alternative fuels like hamburger helper for traditional fuels to encourage new development of alternative fuels and cut emissions.See more about”splash and dash” here This existing Black Liquor process is described as  “a neat, efficient process that’s cost-effective without any government subsidy.”

For a one month period IP received $71.6 million and it is said that it could be a billion dollars in cash per year .IP stock rose 12% on this news.

IP is gaining so much money from this credit and fears that the loop hole will be closed that they have been running full tilt before anticipating the credit may be closed off to them. In fact, the money to be gained from exploiting the tax credit so dwarfs the money to be made in making paper–IP lost $452 million in the fourth quarter of 2008 alone–that the ultimate result of the credit will likely be to push paper prices down as mills churn at full capacity in order to grab as much money from the IRS as it can.

Over production, over capacity and the poor economic situation for the paper companies has caused layoffs and furloughs in the industry. International’s Ticonderoga plant is closing for two weeks.

Chris Hayes in the Nation makes  this observation……

Whether or not Congress gets around to turning off the spigot, the episode is a useful reminder of the persistently ingenious ways the private sector can exploit even well-intentioned legislation. Considering that the success of the Treasury’s recently announced plan to rescue the financial sector depends, in part, on the private sector not gaming the rules, the black liquor story seems particularly germane.

http://www.thenation.com/doc/2…

http://www.washingtonpost.com/…

http://www.guardian.co.uk/envi…

Black Liquor: The Process

Since the 1930s the overwhelming majority of paper mills have employed what’s called the kraft process to produce paper. Here’s how it works. Wood chips are cooked in a chemical solution to separate the cellulose fibers, which are used to make paper, from the other organic material in wood. The remaining liquid, a sludge containing lignin (the structural glue that binds plant cells together), is called black liquor. Because it’s so rich in carbon, black liquor is a good fuel; the kraft process uses the black liquor to produce the heat and energy necessary to transform pulp into paper. It’s a neat, efficient process that’s cost-effective without any government subsidy.

It’s unclear who first came up with the idea-Ann Wrobleski, IP’s vice president for global government relations  told me it was “outside consultants”–but at some point last fall IP and Verso, another paper company, formerly a part of IP, began adding diesel to its black liquor and applied to the IRS for the credit. (Verso nabbed $29.7 million at just one of its mills in the final quarter of 2008 for its use of mixed fuel.)

Despite the obvious contrivance of the procedure, Wrobleski is unapologetic:“The credit is supposed to encourage the use of green fuel.” Sure, I said, but isn’t it a bit weird you’re now adding diesel fuel to the process in order to take advantage of it? “It is what it is,” she said.

At a recent White House meeting  the CEOs of the most powerful financial institutions in the world offered several explanations for paying high salaries to their employees – and, by extension, to themselves.” These are complicated companies,” one CEO said. Offered another: “We’re competing for talent on an international market.”

But President Barack Obama wasn’t in a mood to hear them out. He stopped the conversation and offered a blunt reminder of the public’s reaction to such explanations. “Be careful how you make those statements, gentlemen. The public isn’t buying that.”

“My administration,” the president added, “is the only thing between you and the pitchforks.”

A wonderful exchange with Obama leaked on a day when a curious new rule change was announced. The Financial Accounting Standards Board will allow companies more leeway in valuing assets and reporting losses. One analyst said the decision “allows financial institutions to use fictional valuations on many of their toxic assets” and further obscures their true position Flexibility in valuing toxic assets on paper rather than on the value an asset would receive if sold, sounds like more of the same bad banking craziness that got us where we are today. Who knows ?

The changes should help boost battered banks’ balance sheets and financial stocks rallied on Wall Street, but the rules may undercut a new financial rescue program.

In the short run, banks would benefit by raising the value of the assets. But higher values could drive away prospective private investors – who don’t like to overpay, even though the government will absorb most of the risk. They can estimate the value based on cash flows on their balance sheets rather than using the value the asset would receive if sold immediately.

The Financial Accounting Standards Board new guidelines under the mark-to-market accounting rules require companies to value assets at prices reflecting current market conditions. The changes, which apply to the second quarter that began this month, will allow the assets to be valued at what the banks project they might sell for in the future, rather than in the current, distressed environment.

Obama said his administration is the only thing between the bankers and the pitchforks.At the banks it’s almost as if the same people that caused the banking world to crater are still in charge …well I guess they are.At least GM got a new CEO.

Now this …………….

Bailed-out banks eye toxic asset buys

US banks that have received government aid, including Citigroup, Goldman Sachs, Morgan Stanley and JPMorgan Chase, are considering buying toxic assets to be sold by rivals under the Treasury’s $1,000bn (£680bn) plan to revive the financial system.

The plans proved controversial, with critics charging that the government’s public-private partnership – which provide generous loans to investors – are intended to help banks sell, rather than acquire, troubled securities and loans.

But public opinion may not tolerate the idea of banks selling each other their bad assets. Critics say that would leave the same amount of toxic assets in the system as before, but with the government now liable for most of the losses through its provision of non-recourse loans.

http://www.politico.com/news/s…

http://uk.reuters.com/article/…

http://www.sfgate.com/cgi-bin/…

http://www.ft.com/cms/s/0/358e…

Economic stimulus money in Vermont: Vermont Edition’s guest today at noon is Vermont’s Recovery Czar.Catch him while you can because according to press reports  

“He expects that by the end of the year – once the recovery programs are running smoothly – he’ll be packing up and moving it all back to Stowe.”

from http://www.cnbc.com/id/29955639

An encouraging religious item of note for all Vermonters: This important spiritual news takes the form of cartoonist R.Crumb’s version of the book of Genesis. Crumb’s website says he has finished the Genesis project including the introduction, back sleeve commentary and a map for the beginning of the 201 page book. Soon to go into production and planned release this Fall. A world without R.Crumb’s Genesis would be depressing and dangerous.

The acclaimed satirist revealed that he had finished the project, which his UK publisher is predicting will “provoke the religious right”. Four years in the making, Crumb worked from the King James Bible and Robert Alters’ translation to reinterpret the Book of Genesis, from the Creation via Adam and Eve in the Garden of Eden to Noah boarding his ark.

Back in 2005 in an interview,Crumb, a hero of underground comics, talked about the difficulties of drawing God for the book. “My problem was, how am I going to draw God? Should I just draw him as a light in the sky that has dialogue balloons coming out from it? Then I had this dream. God came to me in this dream, only for a split second, but I saw very clearly what he looked like. And I thought, OK, there it is, I’ve got God,” he told interviewer Robert Hughes, Time’s art critic. “He has a white beard but he actually ended up looking more like my father. He has a very masculine face like my father.” He had considered, he said, drawing God as a black woman. “But if you actually read the Old Testament he’s just an old, cranky Jewish patriarch.”

http://www.guardian.co.uk/book…

http://www.crumbproducts.com/

The latest on the Senate Government Operations Committee consideration of  moving the primary earlier in the year is in the BFP today .The thinking is that an earlier primary gives the winner time to regroup and marshal resources for the general election .The second Tuesday in  August was the date considered .It was noted that a June primary would “force candidates, including those for the Legislature, to file petitions in April, before the legislative session is over and before they’re ready to make a decision on running.” said committee Chairman Jeanette White, D-Windham.

 Republican committee member Sen.Randy Brock believes democracy is painful ,expensive and apparently something to be avoided . “I just frankly am not at all in favor of lengthening the time, the pain, the cost,” Sen. Randy Brock, R-Franklin, said of the election season.

Doug Racine favors delaying this move until 2012 but other possible Democratic candidates favor the move .

“It’s hard if there’s a primary contest to bring supporters back together for the general election,” said Sen. Doug Racine, D-Chittenden, who has announced he intends to run for governor in 2010. Racine said he would support delaying implementation of the change until 2012 if people are going to argue that the move is tailored for the 2010 governor’s race.

In the Senate Government Operations Committee, support for the bill — which would move the primary from the second Tuesday in September to the second Tuesday in August — falls along party lines, and the bill is expected to pass out of the committee in a 3-2 vote Tuesday. Republican members don’t like it.

http://www.burlingtonfreepress…

The Vermont Economic Stimulus Recovery website which claims to be the primary place to find information about Federal recovery funds has a blank news event calendar for the day.

A recent posting from March 24th: Welcome and Thank You for bearing with us as we strive to get our website up to speed with the most up to date, helpful information available.

The press release can be found here: http://governor.vermont.gov/

Governor Douglas at Microstrain in Williston Wednesday announced what he is calling a bold new economic plan. The proposals will invest $17.1 million in American Recovery and Reinvestment Act (ARRA) State Fiscal Stabilization Funds (SFSF) to leverage nearly $160 million in direct support to new and exciting companies looking to grow and expand in the Green Mountain State as well as much needed support for existing Vermont employers. Initiatives will be largely administered by the Vermont Economic Development Authority (VEDA) which leverages private capital to maximize opportunities and investment in our struggling economy.

“..Truly exciting and groundbreaking” Douglas claims the proposal will “position our state to charge out of this recession” However the Vermont Recovery transparency site has nothing available about it. Was this announcement just a rushed effort by the Gov. to change the topic or is the Vermont Economic Recovery Office and its tracking website  at the edge of the Governor’s loop?

http://governor.vermont.gov/to…

http://recovery.vermont.gov/

President Obama did not call on any National papers at his press conference Tuesday night (noted in a bit of pique by the New York Times political reporters) and recently, he delivered a snub to the Gridiron Club (widely recognized by most insiders as the ultimate insiders club) by declining their invitation to attend their annual dinner.

A recent poll reports that nearly one-third of Americans under the age of 40 say programs like The Colbert Report and The Daily Show with Jon Stewart are taking the place of traditional news outlets.

Thirty-nine percent (39%) of adults say programs of this nature are making Americans more informed about news events, while 21% believe they make people less informed. Twelve percent (12%) say they have no impact.

Now this .A press conference of sorts with no press at all .A live online event from the White house to answer citizen submitted questions .Submitted in advance at http://www.whitehouse.gov/Open… and ranked by participants regarding interest and importance.

White House to Host Online Town Hall after Ignoring National Papers at Press Conference

Participants can submit questions in writing or video. They can also vote for questions they want most to be answered. The questions are listed by topic, and then ranked by interest in them. As of 7:18 a.m. on Wednesday, there were 176,060 votes on 2,082 questions from 5,924 people in the jobs topic alone. A ticker at the top of each list of topical questions keeps an updating count.

This event may provide a model for how to engage participants in an online event. Registration requires first name, e-mail, and ZIP code and “catch” verification. The “Terms of Participation” are explicit. Participants can flag questions that violate the policy and if several flag one question, it will be downplayed then reviewed and either removed or restored to the rotation. People who want to submit a question outside the event can do so.

Questions and voting are hosted by Google Inc., but whitehouse.gov owns and has access to the data related to the questions and voting, which will be treated in accordance with the whitehouse.gov privacy policy. Google never receives your email address and does not store the IP addresses related to open for Questions.

http://www.poynter.org/column….

http://www.rasmussenreports.co…

As struggling newspapers across the country are looking for ways to survive the L3C is getting close scrutiny in several places. A Chicago Sun-times editor in the Huffington Post, an article in E&P magazine and Robert Lang (L3C Advisors CEO and the creator of the L3C model) are touting L3C’s as possible methods for saving struggling newspapers.  

The state of Vermont was among the first states to enact L3C (low profit limited Liability Corporation) legislation in April last year. Since then Michigan and the Crow Nation passed similar laws and legislatures in Georgia, Montana, North Carolina and Oregon are also expected to pass L3C legislation. The law allows establishing a low profit, non-profit hybrid entity. The entity would be a low-profit company with “charitable or educational” goals and some return for investors. The social benefit, educational and social responsibility features play to the newspapers hopefully continuing (and improving?) role as public advocates and leaders of public debate.

Historically, newspapers are not considered nonprofits. However, a federal L3C bill and the Federal Program-Related Investment Promotion Act, if passed, would expand charitable purposes to include newspapers.

 Robert Lang creator of the L3C model, stated, “What we are looking at is the newspaper as a self-sufficient entity. It will not be a high profit entity.” Unlike other current options, the L3C is sustainable, allowing newspapers to tap into the $17M available for PRIs while the L3C’s social purpose business model continues to realign newspapers with their community service mission.

The L3C structure plays well in Peoria where the Peoria Newspaper Guild, and a coalition of Journal Star employees and community leaders have been quietly looking for two years at alternatives including co-ops and employee stock ownership plans (ESOPs) to operate the Peoria Journal Star.

The one idea that really clicked was the L3C. Because it can tap into foundation money, an L3C is sustainable, and because an L3C business must meet a social purpose, it realigns newspapers with their mission of community service.

“We are looking at long-term ownership that puts journalism first,” said Jennifer Towery, President of the Peoria Newspaper Guild and also Neighbors Editor for the Peoria Journal Star. “[The L3C] just resonated. It has so much potential.”

Vermont companies pay $75 to file as an L3C and those located elsewhere, $100, not including the fees generated by filing annual reports, said Deputy Secretary of State Bill Dalton. There are no estimates last year on how much money the measure could raise.

In Vermont roughly 35 L3C entities have been or are in the process of being created , such as CoolPass, L3C, Faithful Travelers, L3C, and Monkton Community Coffeehouse, L3C. A list of established L3Cs in Vermont is searchable through the corporation database on the Vermont Secretary of State website.

http://www.huffingtonpost.com/…

http://www.nonprofitlawblog.co…

(Thanks for writing this up. – promoted by JulieWaters)

Matching fund requirements (strings) not attached to the federal recovery funds may be applied by the state to towns and cities .Under normal circumstances towns and cities are required to provide matching funds .Transportation Secretary Dill says it may impose a matching fund requirement on towns receiving federal stimulus money despite this different situation with the recovery money. “I think it is fairest to be consistent,” Dill said. “It gives you more money to do more projects.”

It certainly does give you more money if you burden the already strapped towns and cities with a charge .A charge of 10% match is what the state could require from towns and cities. The Governor is levying a 10% surcharge (tax) on the federal recovery funds when he hands them along.

No mention of the role of the new Vermont Federal Recovery Office on this. In Feb. Speaker Smith called for a panel made up of one person each from the Vt. House, Vt. Senate and the governor’s office .This seems like the ideal situation in which this could be considered rather than just  by the Governor’s team.

It could matter for many communities. Among the possible projects that may be funded with the first piece of the transportation stimulus money – at least $45 million – include a bridge project in Barre, a portion of the Bennington Bypass (up to $20 million worth), a bridge in East Montpelier, paving in Fair Haven and Rockingham and others.

Some towns – primarily those in line for stimulus funding – object to the idea of a local match for the money. Those who have paid, or will pay, the local match to receive other federal funds frequently support it.

Senate President Pro Tem Peter Shumlin, D-Windham, said it is striking that state officials advocated for suspending the state match requirement by the feds, but is considering imposing it on the towns.

“Why would we ask the federal government to excuse the state match, but require it of the local municipalities,” he said.

http://www.rutlandherald.com/a…

Recovery Officer Tom Evslin today responding to WCAX report on two towns surprise at matching fund requirement(20%) the state is insisting on

“There’s still confusion because people hear there’s a flood of money,” said Tom Evslin, of the Economic Stimulus and Recovery Office.Evslin oversees applications for the federal funds in Vermont.

He says the 20 percent match is nothing new.“The whole highway program is being done through existing rules and regulations,” Evslin explained. “We are administering it that way becauseit wouldn’t be fair to the towns that paid the match before and in the future to say suddenly say a couple of towns in there are going to get no match.”

http://www.wcax.com/Global/sto…

(We were raising some eyebrows at the numbers ourselves back a bit… – promoted by odum)

A question by an unnamed Vermont state official at an ARRA (American Recovery and Reinvestment Act of 2009) implementation conference has  Earl Devaney* Chairman of the Recovery Act Transparency and Accountability Board questioning job estimates. Devaney said: “This whole thing has got me very nervous.”

*(Devaney was the former inspector general at the Interior Department, he helped unearth the Jack Abramoff scandal)

According to a press pool report from the American Recovery and Reinvestment Act Implementation Conference, an unnamed state official from Vermont asked if state job numbers on the recovery.gov Web site were made up.

Devaney, according to the pool report, pointed to the difficulty of defining a saved or created job.

“We need to all be playing off the same sheet of music,” Devaney went on. “If I’m going to be held accountable for this Web site, and there’s a graph in there that talks about jobs created or saved, it’s going to be as accurate as I can get it.”

Devaney, according to the pool report, pointed to the difficulty of defining a saved or created job.

And if anyone knows who the Green Mountain stater who asked the original question was,we would love to know .

http://www.propublica.org/ion/…