This little corner of the world is grossly over-planted with pine, if you ask me. These plantations need to be thinned, and the paper mills they were intended for doesn't exist anymore. They have addressed the problem by building a big OSB plant here. In SE Ga, they're addressing the same problem by building a fuel plant.
I don't think anybody is counting on celulosic alcohol to replace petroleum. They're just looking for a way to utilize what they have available. It should drive stumpage prices up. If it doesn't, then the problem is a political one, and will have to be addressed as such. We need to get to work on that, anyway.