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FIRST ON 7: Gov. Evers commits financial support to help paper and forestry coalition obtain $100M federal grant
By Emily Davies
Published: Feb. 2, 2022 at 12:08 PM CST
MADISON, Wis. (WSAW) - Gov. Tony Evers is committing up to $8.2 million in financial support to help a coalition of paper and forestry stakeholders apply for a federal grant. The goal is to help ensure the long-term viability of the state’s paper and forest products industry, which is the largest in the nation.
The governor made the announcement Wednesday and sent a letter to the U.S. Department of Commerce secretary stating the commitment. The Build Back Better Challenge Grant is a separate set of funds through the DOC, and not part of the president’s Build Back Better legislation.
The coalition is the entity applying for the grant. It became one of 60 finalists nationwide late last year, winning a $500,000 grant meant to help plan for the future of the industry and the larger $100 million grant application. In order to be eligible to apply for this next round of the process, applicants have to prove that can provide at least $20 million in matching funds for their project.
The Wisconsin Economic Development Corporation states that the coalition has raised about $11.8 million towards that goal. The governor, with support from WEDC, is providing a commitment of up to $8.2 million to help them meet the minimum requirement.
The big question in central Wisconsin is what will this mean for the Wisconsin Rapids paper mill, which BillerudKorsnäs acquired in December, indicating at the time it did not yet have a plan for that mill.
“The vision of the industry coalition that came together is really a broad support of the industry,” WEDC Deputy Secretary and COO Sam Rikkers told NewsChannel 7. Certainly, that plant in Wisconsin Rapids is a major asset for our state, so I wouldn’t be surprised that if we win that grant, knock on wood, that that would benefit certainly.”
Some Republican lawmakers see it differently. State Senator Patrick Testin told Newschannel he does not see how this would help the Wisconsin Rapids mill. “Based on what the governor outlined and put out there, I mean, they wouldn’t even be able to qualify for this. So I can’t fathom as to what the thought process was for individuals within the governor’s administration that thought this was going to be a good idea. This is simply lip service for an industry that needs an actual hand up,” said Testin.
The grant application is due in March. As for where the state’s matching commitment will come from, Rikkers said since the grant would be distributed over five years, it could come from a variety of places. He said the governor and WEDC will work to determine where that money will come from, perhaps part coming from the state’s surplus.
The coalition is led by Wisconsin Paper Council, however, the Great Lakes Timber Professionals Association, Mid-State Technical College, Menominee Tribal Enterprises, UW-Stevens Point, the Department of Natural Resources and Sustainable Resource Solutions, Inc., are also partnered in the effort.
In a press release, the WEDC notes, “Wisconsin’s paper and forest products industry is the largest in the nation, providing high-quality jobs to nearly 63,000 workers statewide. The industry contributes nearly $18 billion to the state’s manufacturing output and drives more than $1 billion in exports to 100 countries.”
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