Copyright © King's Printer,

Victoria, British Columbia, Canada

Licence

Disclaimer

Volume 66, No. 21

280/2023

The British Columbia Gazette,

Part II

December 31, 2023

B.C. Reg. 280/2023 , deposited December 11, 2023, under the FOREST ACT [sections 151 (1.01), (1.1) and (2) and 151.9 (1)]. Order in Council 707/2023, approved and ordered December 11, 2023.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that the BC Timber Sales Regulation, B.C. Reg. 381/2008, is amended as set out in the attached Schedule.

— B. RALSTON, Minister of Forests ; R. SINGH, Presiding Member of the Executive Council .

Schedule

Section 1 of the BC Timber Sales Regulation, B.C. Reg. 381/2008, is amended

(

a) in subsection (1) by adding the following

definitions:

"eligible value-added processing facility" means a timber processing facility, or a facility that processes products produced from timber or wood residue or both, that meets the following requirements:

(

a) the facility is an immovable free-standing structure that has no physical connection to any other structure, or a combination of immovable free-standing structures that have no physical connection to any other structures;

(

b) an eligible value-added product is produced at the facility;

(

c) one or more production workers works at the facility;

"eligible value-added product" means a product produced from the processing of timber or wood residue or both, or from the processing of products produced from timber or wood residue or both, but does not include the following:

(

a) pulp;

(

b) paper;

(

c) newsprint;

(

d) wood chips;

(

e) wood pellets;

(

f) ground wood;

(

g) bioenergy;

(

h) biochemicals;

(

i) hog fuel;

(

j) wood shavings;

(

k) sawdust;

(

l) bedding;

(

m) firewood;

(

n) mulch;

(

o) products made from component substances of wood that have been isolated and

(

i) mechanically or chemically extracted, or

(ii) chemically or molecularly altered;

"production worker" , in relation to an eligible value-added processing facility, means an individual who

(

a) works directly in the production of an eligible value-added product at the facility, whether or not as an employee, and

(

b) is neither of the following:

(

i) an owner or lessee of the facility;

(ii) a director or officer of an owner or lessee of the facility; ,

(

b) in subsection (1) by repealing the

definitions of "processing facility" and "sawmill" , and

(

c) by adding the following subsection:

(1.1) For the purposes of this regulation, timber, wood residue, a product produced from timber or wood residue or both, or an eligible value-added product is considered to be processed if a systematic series of actions or operations that are not minimal or trivial is performed in relation to the timber, wood residue or product to produce an eligible value-added product.

Section 2 is amended by repealing paragraphs (

a) and (

b) and substituting the following:

(

a) Category 1 – Market, comprising persons described in

section 3;

(

b) Category 4 – Value-added, comprising persons described in

section 5.1.

Section 3 (2) is amended by striking out " category 1 " and substituting " Category 1 – Market ".

Section 4 is repealed.

5 The following

section is added:

Registration, Category 4 – Value-added

5.1

(1) A person may be registered as a BC timber sales enterprise in Category 4 – Value-added if the person meets each of the requirements of subsection (2) and applies to the timber sales manager in a manner approved by the manager.

(2) In order to qualify for registration under this section, a person

(

a) must meet the requirements of

section 3 (3) (

a) and (c),

(

b) must not be registered in any other category under this regulation,

(

c) must own or lease an eligible value-added processing facility in British Columbia that meets the following requirements:

(

i) no other person is registered in a category under this regulation in relation to the production of an eligible value-added product within the facility;

(ii) in each calendar year, the facility has at least 1 600 hours of operation in which at least one production worker works at the facility in the production of an eligible value-added product,

(

d) must intend to continue to comply with the requirements set out in paragraph (c), and

(

e) must not

(

i) hold,

(ii) be in control of a corporation that holds,

(iii) be a corporation that has 50% or more of its shares held by one or more shareholders that are also shareholders in a corporation that holds,

(iv) be a corporation that is controlled by a corporation that is also in control of a corporation that holds, or

(

v) be a corporation that is controlled by a corporation that holds

a pulpwood agreement or one or more major licences that together have an aggregate allowable annual cut greater than 10 000 m 3 .

Section 7 is amended by striking out " 4 " and substituting " 5.1 ".

7 The following

section is added:

Records and returns, Category 4 – Value-added registrant

8.1

(1) For the purposes of

section 136 (2) (

f) of the Act, a person registered under

section 5.1 of this regulation as a BC timber sales enterprise in Category 4 – Value-added is prescribed.

(2) For the purposes of

section 136 (3) (

e) of the Act, the following information is prescribed:

(

a) with respect to an eligible value-added processing facility in respect of which a person is registered under

section 5.1 of this regulation as a BC timber sales enterprise in Category 4 – Value-added,

(

i) the legal ownership, and beneficial ownership, of the facility and of all interests in the facility, including but not limited to any interest under a lease,

(ii) the eligible value-added product or products produced by the facility,

(iii) the number of hours that the facility operates in the production of eligible value-added products,

(iv) the number of production workers working at the facility,

(

v) the number of hours worked at the facility by each production worker in the production of eligible value-added products,

(vi) the type of work performed at the facility by each production worker referred to in subparagraph (v),

(vii) the volumes of, and prices paid for, timber, wood residue and products produced from timber or wood residue or both acquired for the facility,

(viii) the volume of timber, wood residue and products produced from timber or wood residue or both processed at the facility,

(ix) the costs of processing timber, wood residue and products produced from timber or wood residue or both at the facility,

(

x) the volumes and prices of timber, wood residue and products produced from timber or wood residue or both distributed from the facility,

(xi) sales information related to timber, wood residue and products produced from timber or wood residue or both.

(xii) financial statements prepared in accordance with generally accepted accounting principles;

(

b) with respect to a timber sale licence held or previously held by a person registered under

section 5.1 of this regulation as a BC timber sales enterprise in Category 4 – Value-added, if the licence holder traded or sold a volume of timber harvested from an area of land described in the timber sale licence,

(

i) information identifying each person with whom the licence holder traded, or to whom the licence holder sold, a volume of timber, and

(ii) in relation to each trade or sale the following information:

(

A) the volume of timber traded or sold and any volume of timber received;

(

B) the species and grade of the timber traded or sold, and of any timber received, classified as set out in

section 7 of the Scaling Regulation;

(

C) the type of any product received and its volume measured in a commonly recognized unit of measurement for the product within the industry;

(

D) the amount of any monetary payment received.

Section 9 is amended

(

a) in subsection (1) by striking out " the person is deemed not to be registered in that category " and substituting " the person’s registration in that category is suspended ", and

(

b) in subsection (2) by adding the following paragraph:

(

d) the person fails to comply with a requirement of the minister under

section 136 (4) of the Act to report to the minister information recorded under

section 136 (3) of the Act.

Section 10 (2) is amended

(

a) by striking out " 4 " and substituting " 5.1 ", and

(

b) by striking out " or " at the end of paragraph (a) (ii) and adding the following paragraphs:

(

d) has made a material misrepresentation, omission or misstatement of fact in information reported to the minister under

section 136 (4) of the Act, or

(

e) has ceased to meet the requirements of this regulation for registration in the category.

Section 21 is amended

(

a) in subsection (1) (

b) by adding " subject to subsection (1.1), " before " the agreement ", and

(

b) by adding the following subsection:

(1.1) Subsection (1) (b) (iii) applies only if the non-compliance is one that the timber sales manager could remedy with the amount realized from the deposit or standing deposit.

11 The following

Part is added:

Part 6 – Transitional

Transitional – category 2 registration

(1) In this section, "effective date" means the date this

section comes into force.

(2) Despite the repeal of

section 4, this regulation, as it read immediately before the effective date, continues to apply until December 31, 2024 in respect of a person who, immediately before the effective date, was registered under

section 4 as a BC timber sales enterprise in category 2.

Copyright © 2023: King's Printer, Victoria, British Columbia, Canada