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Forest Management In

Ontario

Steve AllenIndustry Services OfficerOMNR – Forests DivisionNovember 13, 2008

Overview Ontario’s Forests Evolution of Forest Management

A glance back in time Today’s Managed Forest

Legal and Policy Framework Public and Stakeholder Involvement Forest Management Planning Forest Tenure (Licensing) Allocation of Crown wood supplies

Preparing for Tomorrow Drivers Objectives Proposed actions

Ontario’s Forests

Ontario Context

107.6 million ha 87% public land 46% natural

state 66% forested 42% managed

“Area of the Undertaking”

(AOU)

Ontario’s Forest

Regions

Quick Facts – Ontario’s Forests

2% of the World’s forests 17% of Canada’s forests 21.8 million hectares of Ontario’s Crown forest is

available for forest management (20% of total Crown lands)

most common tree species: black spruce annual allowable harvest area: 350,000 hectares

(0.5% of forest, 1.6% of area allowing harvest) average annual harvest area: 220,000 hectares

(0.3% of forest, 1.0% of area allowing harvest) average annual area of forest fires: 245,000

hectares

Evolution of Forest Management

1960s – 1980s Crown

Management Unit Era

Economic / Social Climate Industry growing Large operational forest management workforce and budgets Many MNR offices/regions Economic development of north – Perceived as “the Government” Growing public interest

Planning Philosophy / Approach Crown Timber Act and “multiple use” Focus on “timber” management (sustained yield) with constraints Unsophisticated plans Limited consultation

Roles and Responsibilities Crown had a greater role – belief that “we had to do it all” due to pre 60s

era Crown led most operations – roads, nurseries, renewal, some tendered

sales, etc. On “company units”, industry planned and led access and harvest

operations and occasionally did renewal under agreements

Licensing System Large number of “Crown” management units A few “Company” management units with long term licences

1980s – 1990 Forest

Management Agreement

(FMA) Era

Economic / Social Climate Industry to be funded for operations Lack of Gov’t funding to meet FMA commitments in late 1980`s Far greater sensitivity to stakeholder concerns

Planning Philosophy / Approach Planning became more sophisticated but still focused on “timber” Shift from “multiple use” to “sustainable development” Environmental assessment of forest management commences

Roles and Responsibilities Government transfer of operational responsibilities to industry Private sector says “we can do it better” Crown still managed many units – but were under funded

Licensing System Forest Management Agreements signed “Crown” management units still exist Some tendered sales – 1000`s of timber licences

1990’s – 2000 EA - CFSA - SFL Era

Economic / Social Climate 1992 – economic slow down followed

by stable growth Downsizing of MNR “New Business Relationship” with forest industry Growth in OSB sector – competitive processes

Planning Philosophy / Approach Final Timber EA with Terms and Conditions New Crown Forest Sustainability Act / New Forest Management Planning

Manual A move to Sustainable Forest Management from timber management OLL and Ontario Forest Accord

Licensing System Converted FMAs to SFLs Converted Crown Management Units to shareholder SFLs Priced timber administratively Established Trusts for dedicated renewal funding

Roles and Responsibilities Transfer of responsibilities and costs from Crown to industry:

Roads – forest inventory – renewal – compliance inspection

2000 – present Era of Industry Transformation

Economic / Social Climate Can $ moves toward parity with US – US housing crash

– SLA 2006 - High energy costs Sophisticated marketplace ENGO campaigns Increasing Aboriginal demands Forest Sector Strategy Environmental Challenges

Planning Philosophy / Approach Forest EA renewed and revised FMP Manual (2004)

Licensing System Sustainable Forest Licences Increasing number of shareholder SFLs Few “Crown” management units

Roles and Responsibilities Industry says “take it back – we can’t afford it all” Crown reassumes responsibility for:

Road construction and maintenance costs Forest resource inventory

MNR creates Forest Sector Competitiveness Secretariat

Today’s Managed Forests

Comprehensive Legal and Policy Framework

Strategic Direction/Commitments Legislation/Regulations Forest policies & strategies Forest licences Forest management plans Monitoring and Evaluation Public Reporting

Founded on Sound Science and Info

Operations can begin

Public & Stakeholder Involvement

Comprehensive Land Use Planning Ontario Forest Accord

Environmental Assessment Environmental Bill of Rights Forest Management Planning

Guides Plans

Monitoring and Reporting Committee Representation

Provincial, Regional, Local

Forest Management Planning

10-year forest management plan with 5-year operating plans

Activities undertaken in 46 Forest Management Units

Prepared by industry / government / local citizens committee

Mandatory public & Aboriginal consultation over 2 ½ years at a great cost - ~$1 million / plan

Forest Management Planning

Must ensure long-term forest ecosystem health for full range of uses and values

public involvement emulation of natural disturbance science-based guidelines for silviculture, environmental

protection, fish & wildlife habitat management, cultural values, water quality

Legal and licence requirement

Plans directed by Forest Management Planning Manual and Guides

Determines allowable harvest levels and describes harvest, renewal, access & maintenance activities

Describes non-timber values & how they will be protected (e.g. species at risk, wildlife habitat, tourism)

Monitoring and Reporting

Monitoring Compliance

inspection & enforcement

Forest health, wildlife populations & guideline effectiveness

Independent Forest Audit

Mandatory third party forest certification

Reporting Annual Report on

Forest Management

Five-year State of the Forest Report

State of the Resource Report (e.g. caribou)

Independent Forest Audit Reports

Compliance and enforcement

Forest Certification All sustainable forest licence (SFL) holders were required to

be certified by the end of 2007

In 2008, 80% of Ontario’s Crown managed forest certified (24.7 million hectares)

Forest Industry Primary Forest Products Sector

Pulp Paper Lumber Composite Panels Veneer

Logging Sector

Secondary Forest Products Sector (two broad sectors) the Wood Industries

Remanufactured Products, Engineered Building Components, Millwork, cabinets, furniture, other

the Paper and Allied Product Industries Pulp and Paper industries, Paper Box and Bag Industry

Emerging Bioproducts Sector, using forest biofibre for non-traditional forest products

Economic Profile (2005) After the automotive sector, forest products are the single largest

contributor to Ontario's balance of trade.

In 2005, the value of Ontario's forestry sector was $18.3 billion $10.1 billion in pulp and paper products $6.1 billion in sawmill, engineered wood and other wood product

manufacturing, and $2.2 billion in value-added furniture/kitchen cabinet manufacturing

represented  

Logging activity had an estimated value of $2 billion.

The value of forest products exports – 96% bound for the U.S.: $8.4 billion and a $2.9 billion contribution to the provincial trade balance.  

Tax contributions are about $2.3 billion, including $800 million to the province and wages and salaries (2005) were approximately $3.4 billion.

Employment (Stats Canada 2005): 84,500 direct jobs in 2005 supporting more than 200,000 direct and indirect

jobs across 260 Ontario communities.  Forty are categorized as highly dependent on employment in the forest

sector to survive.  An additional 63 are identified as being moderately dependent. 

Forest Tenure

Determines who gets to harvest and use trees under what conditions.

Minister allocates Crown timber to selected mills

Minister does not allocate by-products such as chips, sawdust, hogfuel, etc.

About 90% of timber supply comes from public lands in Ontario

Tenure and Licences: Sustainable Forest Licences (SFLs) Supply Agreements Forest Resource Licences (FRLs)

Sustainable Forest Licence (SFLs) 20 year renewable licences

Most held by large companies – single entity 26 currently in Ontario Many are long-standing tenure holders (carrying forward from FMA days) Most are conifer-based sawmill & pulp industry Many are multiple-mill companies Corporate players (e.g. Abitibi-Bowater, Buchanan, Domtar, Tembec,

Weyerhaeuser)

Some held by multiple companies – Shareholder SFLs 15 currently with 4-5 in the process of converting Generally based on a shareholders arrangement and a business plan A maturing model – some still in infancy; some still emerging; some well

established MNR initiative further to promote the shareholder SFL model – more cooperation

between wood supply beneficiaries (Co-operative SFL Strategy) Model within the model – partnerships, multi-party, small harvesting companies,

variety of mills, “boards”

Must prepare forest management plans, build roads and renew forest

Must be audited every 5 years to extend licence

Supply Agreements Agreement between the Province and a forest

products company to Make Crown forest resources available to a mill from a supply area often encompassing several SFLs

Does not convey the right to harvest forest resources from the supply area.

Wood supply in a supply agreement is harvested by holders of SFLs or other forest resource licenses.

must agree to share costs with SFL on roads, renewal, etc.

SFLs contain conditions (Appendix E) to make available target volumes to the mill named in the Supply Agreement

Forest Resource Licences (FRLs)

Short term licences to harvest Crown Timber (up to 5 years), with no direct management responsibilities

When issued on SFLs; referred to as overlapping licences

Requires an overlapping agreement with SFL holder

Responsibilities for operations, information, renewal described in overlapping agreement

must agree to share costs with SFL on roads, renewal, etc.

SFL holders still responsible for operations conducted by overlapping FRL

Wood Disposition ProcessFMP Available

Supply

Supply Shortage

Rationalization of Wood to Users

Additional Supply

SFL Holders Utilize

SFL Beneficiaries Utilize

Another Process

Competitive Process

Impacts

Options

Consultation

Recommendations

Implement Wood Flow Decision

Minister

Directs

Preparing for Tomorrow

Drivers for Change: Social, Economic & Environmental

Climate Change Invasive Species Trade disputes Industry Transformation Green Energy New Forest Bio-economy Far North Development Aboriginal Socio-Economics Environmental Concern/Campaigns Rural and Northern Communities

Objectives for Tomorrow

Healthy forests adapting to and mitigating climate change

Community economic & social stability

Enhanced aboriginal involvement and benefits

Healthy investment climate Bio-economy investment captured Competitive Forest Industry

Actions Strategy for New Forest Economy

Invasive Species Centre Centre for Innovation – Bio-economy Biofibre Directive Implement existing programs ($1 Billion to

2010) Climate Change Strategy & Action

Plan Implement Endangered Species Act Strengthen Relations with Aboriginal

Peoples Far North Strategy