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BC Bugwood Envirochem Services Inc. iv. therefore not been practiced in BC, it could encourage bugwood harvest by an energy industry able to process it if at the same time increased costs to recover the merchantable wood first are mitigated by cheaper cut licenses. Reduce or assign low or no stumpage fees to the bugwood or the cut block as a whole. Depending on NAFTA trade restrictions, even a negative stumpage fee may have to be assigned to the bugwood (i.e. paying to have it removed). If the bugwood is perceived by the forestry companies to have no value, controls must be put in place to ensure its removal and utilization, rather than leaving it in the forest, as discussed above. On the other hand, maintaining a moderate stumpage price for bugwood has the advantage of encouraging forestry companies to investigate options to recover their costs incurred by co-harvesting bugwood, such as maximizing use as sawlogs or chips, or even a CHP plant integrated with their mill and dry kilns. This would be more of an option for the early phase of bugwood removal. The harvested bugwood would be made available at a value pre-determined by government policy (possibly free) to third parties with the harvesting company allowed preference for their own consumption. The province would then have to make concessions on the cut license bidding price for high-quality wood in areas with large amounts of bugwood to be co-harvested (as discussed above under low stumpage). This would effectively place bugwood harvesting costs onto merchantable wood and separate it from value recovery of the energy resource. This suggestion is based on the premise that bugwood removal is necessary for forest rehabilitation while value recovery is only a method to mitigate the removal costs. The approach would serve to encourage forest industry participation in bugwood conversion technologies by giving them preference in realizing the economic returns of value recovery. Harvesting rights could be modeled after the existing Small Business Forest Enterprise Program. Owners of bugwood conversion facilities could be awarded forest licences to bugwood areas. They could then subcontract the harvesting to large forestry companies who would harvest all of the wood and use the merchantable portion for their own purposes (sawmills, paper mills, etc.). Contractual agreements would specify at which price the license holder can buy back the NRL bugwood from the harvesting company. Harvesting methods and costs may be adjusted to match the local situation and requirements. v. vi. In any event, the BC government is urged to develop a clear policy as to how the bugwood harvest will be tied to existing harvesting of good wood to allow potential users of the bugwood to properly predict their delivered feedstock cost. Not doing so will translate in very little use of the bugwood as few would bid to harvest dead bugwood at its full cost when waste wood residues are available in the province. 6.2.3 Synergies There are obvious synergies between the technologies examined, and between the bugwood problem and other BC forestry issues, such as beehive burners. A small CHP plant can deliver energy to municipalities in the BC Interior or create an integrated sawmill producing power and kiln heat from mill residues, or feed power and heat to related technologies, such as ethanol production. Likewise, cellulignin could be used instead of natural gas to heat greenhouses, commercial/institutional and residential buildings, providing a low-carbon, clean energy source to replace natural gas. The increased use of older bugwood saw logs will create additional biomass waste in sawmill operations that can be fed to the systems presented. Implementing Page 97PDF Image | IDENTIFYING ENVIRONMENTALLY PREFERABLE USES FOR BIOMASS
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