Kill the Climate Bill: Legislation Ignores Critical Factors . . .

COVINGTON The U.S. House of Representatives is expected to vote -- possibly as early as tomorrow -- on the American Clean Energy and Security Act (ACES Act, H.R. 2454). This bill is intended to ad dress the issue of global climate change by placing substantial restrictions on U.S. manufacturers, especially energy-intensive facilities such as MeadWestvaco's Covington mill. The bill is seriously flawed, unfair, and would impose exorbitant costs on the American economy.

The Covington mill is a state-of-the-art facility that makes paperboard packaging and specialty chemicals used all around the world, and does so in a manner that is energy-efficient and environmentally-conscious. More than 50 percent of the mill's output is shipped overseas, making us one of the commonwealth's leading exporters. Since 2000, MeadWestvaco has reduced carbon dioxide emissions at its major manufacturing plants by 17 percent. At Covington, we have increased our use of carbon-neutral biomass-based energy by over 6 percent from 2005 to 2008. Nearly two-thirds of the company's energy for its mills is self-generated from renewable, carbon-neutral wood resources.

THESE VOLUNTARY actions demonstrate MeadWestvaco's strong commitment to achieving greater energy efficiency and to addressing the issue of climate change, and we recognize that more must be done. For manufacturers that must rely on fossil fuels (coal, natural gas, etc.), the next step must be a comprehensive policy that deals with both energy consumption and greenhouse gas emissions. We believe the best way to focus on energy use and climate change is by working together, addressing the environmental, technological, energy, and economic factors that will determine success in a practical time frame.

The ACES Act is flawed because it ignores all of these critical factors. It is too complex to implement, too reliant on technologies that do not yet exist, too expensive for businesses to afford and remain competitive, and too narrowly focused on domestic emissions to reduce the overall global impact of climate change. If the U.S. is expected to commit to the provisions of this legislation without competing economies such as Brazil, China, and India making similar commitments, the American economy, and high-paying manufacturing jobs, will be in serious jeopardy.

The bill is fundamentally unfair because it would place facilities like the Covington mill at a significant competitive disadvantage. It would impose drastic new costs on emissions from fossil fuels (with insufficient credit for the reductions we have already made voluntarily or our large use of carbon-neutral biomass to produce a large portion of our power needs).

The bill also fails to recognize or address the complex energy requirements of an operation like the Covington mill. It does not realistically address the reliance of the Covington mill and other such industrial facilities on coal -- which even in transition will remain an important energy source for years. As currently conceived, the bill essentially allows Congress to pick winners and losers in a high-stakes energy experiment.

IF THE ACES Act passes Congress, MeadWestvaco's Covington mill operations, which provide 1,500 jobs in the Alleghany Highlands, will definitely be one of the losers. The economic future for our area will be severely impacted.

We strongly urge Virginia's congressional delegation to oppose this flawed and unfair legislation, and support our company, employees, and communities in which we operate by voting against the ACES Act. Then we can turn our attention to a comprehensive energy and climate change policy that preserves our ability to compete while continuing to protect our shared environment.

Mark George is the vice president of MeadWestvaco's Covington operations. Contact him at (540) 969-5000.