"But wood turned out to be harder to get than the prison had anticipated, because of the regulatory bureaucracy at Lake Tahoe, says Damon Haycock, the prison's business manager. Local officials also demanded that the plant install a "baghouse," or extra filtration system, to meet clean-air standards far more rigorous than the federal government's, which raised costs and reduced efficiency, Mr. Mohlenkamp says. The plant began losing $500,000 a year, leading officials to close it."

   

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