Snowflake Council Calls For An End To Black Liquor Tax Credits

By Naomi Hatch
   “I think we are all aware at this point that we have some serious consideration regarding the paper mill and the inability they have to compete on the current playing field,” said Paul Watson, Snowflake Town Manager at a council meeting on Tuesday, June 23.
   Watson was referring to the Black Liquor Tax Credit that was meant for the auto industry, noting that some pulp mills have found a loophole to utilize that and mix diesel with their black liquor and call it biofuel. Watson said they use the subsidy and because Catalyst is 100-percent recycled paper they cannot participate in the subsidy.
   “We have a facility 100-percent recyclable and also has adjacent to it a biofuel plant… and yet they are not qualifying for this energy related credit, so it is our proposal that we pass this resolution in support of removing that credit,” said Watson.
   Watson went on to explain to the council that there are congressional delegates both Republican and Democratic who want to terminate the subsidy early because it’s costing the federal government billions of dollars.
   Mayor Kelly Willis asked councilman Jason Whiting to comment because he has kept up on the issue.
   Whiting said, “Paul (Watson) relayed it very well,” adding that Congressman Jeff Flake had endorsed a bill to terminate the credit, but noted, “Sometimes government doesn’t move very fast.”
   Whiting also added that Catalyst is the second largest employer in Navajo County.
   Town Attorney Robert Hall gave council a footnote stating, “At one time it was a pulp and paper mill and when I worked out there going to undergrad and law school, they employed lots of college kids. It was changed because of federal policies and federal laws to a recycle mill. They complied with regulations so they go to recycle and then they get backhanded because they’re not a pulp and paper mill.”
   Mayor Willis said, “It would be devastating to our community if we lost that.”
   He noted that he called the Arizona League of Cities and Towns to see what their position was but felt they weren’t involved as much as he had hoped.
   Willis said, “We strongly believe that Catalyst is a great supporter of our community.”
   A motion passed unanimously to support revoking the Black Liquor Tax Credit.
   In other business, the council unanimously approved a change order from Combs Construction on the Concho Road project. The change order is an increase of $203,803.01 for a total cost of $412,000 for the project, and will extend the 3,018-foot project by 2,700 feet. Gary Fenstermaker reported that the bid came in under the grant amount so they were able to extend the project from Concho Bridge to Adair Street. The cost to the town will be $21,000, which is their amount of the match for the grant.