White House Paper Chase

On the scorecard of environmentalists, Bill Clinton batted .500 during World Series week. Although they were disappointed with the President's voluntary program to curb greenhouse gases, they were delighted with his decree that the ravenous paper-consuming bureaucracies of the U.S. government would start using recycled paper. By the end of 1994, federal agencies and the military are supposed to purchase only paper containing at least 20% recycled fiber, rising to 30% by 1999.

On its own, the action will not solve the paper-trash glut, which makes up 40% of the nation's solid waste. But Uncle Sam buys nearly 300,000 tons of paper a year (2% of U.S. sales) and may have the clout to change the industry's economics. Up to now, demand for recycled paper has not persuaded paper companies to make the huge investments in plant and equipment needed for recycling. So limited supply has kept prices high, which in turn has hurt demand. Clinton hopes government purchases will stimulate a much bigger supply, eventually cutting prices and making born-again stationery a hit with consumers.

The paper companies worry about recouping investments they will have to make in recycling, but from their viewpoint, the policy could have been worse. The President could have forbidden government purchases of paper whitened by chlorine bleach. Environmentalists charge that chlorine-containing waste chemicals contaminate waterways around paper mills; companies say the pollution is limited. While Clinton did not insist on chlorine-free paper, he did relax the whiteness standard for federal stationery. Companies that offer not-so-bright but eco-friendly paper may find some big customers in Washington.