Assembly approves Forestry Revitalization Act

During a recent floor session, the Assembly approved Sen. Felzkowski’s Forestry Revitalization Act. It was approved nearly unanimously, with only members of the Socialist Caucus voting against the bill.

The legislation provides tax credits issued by the Wisconsin Economic Development Corporation for a massive new investment in northern Wisconsin to turn woody biomass into sustainable aviation fuel (SAF).

According to Felzkowski, this would be a huge boon for the North Woods economy and improve forest health across the entire region.

“The market for SAF is growing rapidly. Delta Airlines has a goal of using 10% SAF for domestic flights by 2030, and the European Union is scaling up SAF requirements: by 2050, they will require 70% SAF,” she said.

The proposed facility would be outside of Hayward and would be operated by Synthec Fuels in conjunction with Wisconsin-based Johnson Timber.

“There will be hundreds of family-supporting jobs directly at the facility, and preliminary numbers of the full impact on the North Woods economy are north of $375 million,” Felzkowski said. “Wisconsin’s timber industry has been declining, and our forest health with it. Bolstering the timber industry will support forest health, including wildfire prevention and management of invasive species.”

The woody biomass that would be used to make SAF includes bark, branches, cutter shavings, tree tops, slash, and processing residue.

Felzkowski’s legislation provides several protections for Wisconsin taxpayers as conditions of the tax credits, including a requirement that 80% of the woody biomass used to produce biofuel at the facility must be sourced from Wisconsin.

The company must be able to demonstrate their economic due diligence through a variety of measures including a third-party feasibility study with information on technologies being used, feedstock availability, and job creation; a business plan outlining costs, markets, and financial projections; and signed letters of intent from timber businesses and SAF purchasers.

All of these requirements must be met before the tax credits are issued, ensuring that Wisconsin taxpayers are well protected.

Wisconsin is currently competing with other states, including Michigan and Minnesota, for this investment. The upper Midwest is considered one of the best areas in the world for SAF production given our predictable weather and abundance of woody biomass.

It still needs to pass the Senate before heading to Gov. Tony Evers for his signature.