Forest Management in British Columbia (BC) Dave Peterson, RPF Chief Forester, and Assistant Deputy Minister Tenures, Inn

1. Forest Management in British Columbia (BC) Dave Peterson, RPF Chief Forester, and Assistant Deputy Minister Tenures, Innovation and Competitiveness Ministry of Forests, Lands and Natural Resource Operations Pushkino, Russia, December, 2013

3. Forest Management in BC Presentation : • Introduction to BC • Relationship between Canada and BC • Relationship between Headquarters and Regions • Provincial Role of the Chief Forester • Relationship between government and forest companies • Access to forest resources • Competitions and Auctions • Economic relations • Future Trends in Forest Management in BC

5. Total area of BC 95 million hectares Forested land 60 million hectares Ownership 95%of forests owned by the Public of BC

6. Forests cover about 31% of the earth’s land area, • 35% is cropland and pasture • 33% has little to no plant life Entirely different picture in BC: • 65% of BC is covered by forests 24% of BC not suited to plant life • Currently over 17 billion m3 of timber in BC

11. Role of the Canadian Federal Government • Legislation which covers all provinces: • Marine waters and fisheries, environmental assessments, endangered species, aboriginal groups, pest control, etc • International Trade Agreements • Supporting Innovation, research and development • Coordination of wildfire and forest pest response • Managing the federal Infrastructure • Fiscal policy, immigration, security, etc

12. The Canadian constitution delegates jurisdiction over natural resources to the provinces. Provincial legislation dictates tenure arrangements and environmental standards on public (Crown) land. The Ministry of Forests, Lands and Natural Resource Operations is the agency responsible for BC’s the management and administration of BC’s forests and other natural resources. Role of the Provinces and Territories in Canada

13. Ministry of Forest, Lands and Natural Resource Operations • 4,633 FTEs - total number of staff (includes seasonal wildfire staff) • Operating budget (2013/14) - $561,343,000 • 57 offices located in 8 regions • Responsible for > 50 pieces of legislation • FLNRO manages the natural resource programming that are BC’s most critical economic drivers. This includes: • $10.2B in exported BC forest products • $4B to the Province in forestry revenue • $1.3B hunting, trapping, angling and wildlife viewing • $350M in water rentals • Permits and licenses for 72 projects in Environmental Assessment valued at $81B

15. Ministry Organization Headquarters Areas Regions Districts

16. Headquarters Functions • Maintain legislation and regulations • Provide key interface with Minister and elected officials • Design policies and programs to encourage consistent application across the province • Provide specialist support and guide the work of regional and district offices • Advance priority projects and sensitive files • Deliver services that are provincial in nature (inventory) • Statutory Decision Maker (Chief Forester)

17. Regional Functions • Implement policies and programs • Coordinate allocation of resources • Provide direction and expertise and monitor district activities • Provide common services to District where more effective • Delegated ‘Decision Maker’ • Award licences

18. District Functions • Implements policies and programs on the ground • Provides services at the local level and responds to local needs • Awards licences • Approves plans • Issues cutting permits • Delegated ‘Decision Maker’

20. Role of the Provincial Chief Forester • Chief Forester establishes Allowable Annual Cut (AAC) for each Management Unit • AAC determined every 5-10 yrs based on 200 year projections of timber supply • Adjust AAC to reflect current practices, harvest, fires and other disturbances etc. • Government maintains inventory of timber on Crown lands • Government estimates growth and yield of forests

23. Relationship between government and forest sector

24. BC’S Forest Sector in 2012 Annual Harvest: 69.3 million m3 Direct employment: 53,340 No. of mills: 294 Direct Gov’t Revenue: $482 million Exports value: $9.9 billion 86% of Goods exported GDP (Goods Sector): $8.5 billion* (23%)

25. BC’s forest products exports

26. Forest Tenures • The provincial government grants specific rights to harvest crown timber and sometimes to manage non-timber forest products through: • Legislation • Regulation • Contracts • Policy • 14 different types of forest tenures ~ 4000 individual tenures

27. First Nations Relationships • Majority of BC has no treaty with aboriginal peoples • FN relationships are critical to FLNRO and licensees • Information sharing and consultation

28. Pricing and Revenue Pricing: • Market pricing system • Stumpage Rate • Appraisal Revenue: • BillingHarvested TimberWasted Timber

29. Market Pricing System • Timber is priced two ways: • Auctioned by BC Timber Sales • Appraised using evidence of market value from timber sales • MPS – statistical analysis of variables from timber sales used to produce an equation used to predict market value of timber (Market Pricing System)

31. Future trends Forests will provide more non-timber products, and wood products will become much more diverse Forests will be increasingly subject to continual natural change, and future climatic uncertainty More involvement of First Nations and communities The workforce will need refreshing Global economic trends will drive a need for continual change in the forest industry Resource management decisions will become more complex; solutions will need to become more eloquent

32. THANK YOU Questions ?

33. Bio-economy By 2015, global bio-products sector worth $200 Billion Bio-refinery can produce 85% of oil refinery products Bio-energy use to grow 9% per year through 2020 Existing BC industry, 25% of harvest goes into bioenergy Estimate currently 2.3 billion m3 of biomass in BC not considered as sawlog supply BC Forest Sector Bio-economy Transformation Council

34. Projected shifts in Kamloops TSA Tongli Wang UBC