BC Ministry of Forests release statement: Changes to lumber regulation will drive local manufacturing, job growth

A summary of recent changes to Manufactured Forest Products Regulation announced December 4th by the BC Ministry of Forests:
”Changes to the Manufactured Forest Products Regulation are being introduced in the Interior of B.C. to expand manufacturing requirements for the export of cedar and cypress lumber. The changes are set to come into effect on Feb. 1, 2024, and will require mills in the Interior to fully manufacture cedar and cypress wood that has been harvested. ”

“Examples of manufactured wood products include veneer, panel products, decking, flooring, moldings, shingles and siding. Wood products that do not meet specifications in the regulation, such as logs, must obtain an exemption from the manufacturing requirement and pay a fee-in-lieu of manufacture to the Province.”

“The Manufactured Forest Products Regulation, introduced in 2003, defines the criteria that products must meet to be considered a manufactured product under the Forest Act. Under the current regulation, minimally processed cedar and cypress lumber in the Interior may be exported without further manufacture. These changes will open up opportunities to make higher-value wood products in B.C.”

While these changes are surely welcome for some, we sought clarification as to whether pellets would meet the threshold of manufacture. The answer is yes. Also, the ministry provided examples of what products do not meet the threshold.

From the Ministry of Forests:

  • Wood pellets are considered manufactured under the Manufactured Forest Products Regulation, however the vast majority of material used to make pellets comes from harvest residuals and residuals and waste from sawmills. A small number of damaged, low-quality logs (about 1% of the total provincial harvest) goes to pellets.

  • Examples of wood products that do not meet specifications include logs, sawn logs other than cedar and cypress that exceed a certain size (face size of greater than 0.1 square metre). Cedar and cypress lumber is subject to more stringent requirements and must be processed further to avoid a fee in lieu of manufacture. Cedar and cypress lumber is deemed finished if it is subjected to three or more processes prior to export. A process includes: a change in thickness, width, length, profile, texture, moisture content, or joining or chopping.

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