Daily News for July 10, 2024

Today’s Takeaway

US Paper makers warn of market disruption from EU Deforestation Regulations; FSC seeks to support compliance

The Tree Frog Forestry News
July 10, 2024
Category: Today's Takeaway

US Paper makers say the EU deforestation regulation will disrupt markets; FSC seeks to support company compliance. In related news: Clearwater Paper is fined for a chlorine release; Michigan rescinds Billerud’s tax break; Smurfit Westrock makes its debut; and kudos for Louisiana Pacific’s CEO. Meanwhile, Minneapolis enters the biochar business, Russ Taylor opines on lumber markets; and ruminations on BC’s next forest minister.

In other news: Canada’s heat wave raises spectre of campfire bans; BC announces new rules for First Nations’ environmental assessments; USDA focuses on forest restoration, as industry warns of economic risks, and ENGOs call for more of old-growth protection; and creating a state-of-the-art showcase to tell America’s conservation story.

Finally, the wood wide web theory once charmed us. Now it’s the subject of a bitter fight.

Kelly McCloskey, Tree Frog Editor

 

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Business & Politics

Choice of new forests minister will be of particular intrigue if NDP holds power

By Wolf Depner
Victoria News
July 9, 2024
Category: Business & Politics
Region: Canada, Canada West

Andrew Mercier

Hamish Telford, a political scientist at the University of Fraser Valley says looming behind recent announced MLA retirements is the question of particular interest to the rural, resource-reliant parts of the province: who will replace Bruce Ralston as B.C.’s forest minister? …”Presumably, the forests minister is not going to come from the environmental wing (of the B.C. NDP),” Telford said. “I don’t think that would play particularly well in the forestry sector. I think it would be helpful for the (forests) minister to come from a rural area. …But given the struggles of the sector, you also need someone who understands the business side of things and that’s also a struggle within the NDP.” …Finally, it would be beneficial for the eventual forests minister to understand international trade and international law, Telford said. …Telford specifically points to the current minister of state for sustainable forestry, Andrew Mercier, MLA for Langley. 

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US Diaper Makers Warn European Union of Shortages Under Law to Save Forests

By John Ainger and Agnieszka de Sousa
BNN Bloomberg
July 9, 2024
Category: Business & Politics
Region: United States, International

US paper makers are warning the EU that a new law requiring them to trace timber to its origins risks disrupting $3.5 billion of trade and raising prices for diapers, sanitary pads and other hygiene products. It will be impossible to comply with the pending regulation because pulp supply chains are too diffuse to track all trees, and there’s often a two-year lag between the time they’re cut down and when they’re turned into fiber. The US industry is a major exporter of “fluff pulp,” an absorbent material used to make personal products. American suppliers meet about 60% of the EU’s needs, so any interruption would reverberate throughout the 27-nation bloc. “The EUDR as is currently written will raise the costs significantly for US producers, and it will translate into inflationary pressures in the EU,” said Mark Pitts, at AF&PA. There have been some repercussions from the law even before it takes effect, with companies having supply agreements derailed, Pitts said. [to access the full story a Bloomberg subscription is required]

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Smurfit Westrock Makes Its Debut in New York and London

By Smurfit Westrock
The Financial Post
July 8, 2024
Category: Business & Politics
Region: United States, International

DUBLIN — Smurfit Westrock, a global leader in sustainable packaging, announced its primary listing on the New York Stock Exchange (NYSE), under the ticker ‘SW,’ following the completion of the previously announced combination of Smurfit Kappa and WestRock on July 5, 2024. The company also has a standard listing on the London Stock Exchange (LSE) under the ticker ‘SWR’. Smurfit Westrock, operating in 40 countries and tapping into the expertise of over 100,000 people. …“Combining Smurfit Kappa and WestRock creates a world-leading sustainable packaging player, bringing together a tremendous depth of experience and expertise from both companies,” said Tony Smurfit, Smurfit Westrock chief executive officer. …Trading began on the LSE today at 8:00 a.m. BST and will commence on the NYSE at 9:30 a.m. EDT, following a bell-ringing ceremony.

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LP Chair and CEO Brad Southern Named 2024 North American CEO of the Year by Fastmarkets

By LP Building Solutions
Businesswire
July 9, 2024
Category: Business & Politics
Region: United States

Brad Southern

NASHVILLE, Tennessee — LP Building Solutions, a manufacturer of high-performance building products, announced that LP Chair and CEO Brad Southern has been named 2024 North American CEO of the Year by Fastmarkets. This marks the second time in five years that Southern has received this recognition, a rare achievement noted by Fastmarkets. Southern was selected by analysts who cover the North American and global pulp and paper industry. He was noted for his focus, determination, and success in transforming LP from a commodity to a specialty producer. …Southern has served as LP’s CEO since 2017 and Chairperson of the Board since 2020. He joined LP in 1999 and has held various leadership roles, including Executive Vice President and Chief Operating Officer, Executive Vice President and General Manager of OSB.

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Clearwater Paper fined $350K for unreported chlorine releases at Lewiston mill

By Eric Barker
The Lewiston Tribune
July 9, 2024
Category: Business & Politics
Region: United States, US West

IDAHO — The Environmental Protection Agency fined Clearwater Paper more than $350,000 for failing to disclose releases of toxic chlorine from its pulp and paper mill at Lewiston to regulators, emergency responders or the public. According to a news release from the agency, hundreds of pounds of the toxic gas classified as an extremely hazardous substance were released from the mill in 2019, 2020 and 2021. Some of the releases prompted evacuations at the mill and employees sought medical treatment after exposure to the gas. “Communities and first responders near facilities using deadly chemicals have a need and a legal right to know when releases occur,” said EPA Region 10 Enforcement and Compliance Assurance Director Ed Kowalski. “These are not simple paperwork issues; the safety of workers, first responders, and residents rests on a company’s compliance with these requirements.”

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Michigan state board rescinds tax breaks for canceled upgrade of Upper Peninsula paper mill

By Candice Williams
The Detroit News
July 9, 2024
Category: Business & Politics
Region: United States, US East

The Michigan Strategic Fund board on Tuesday voted to rescind $29.4 million in tax incentives for a $1.06 billion transformation of an Upper Peninsula paper mill after the facility’s Swedish owner canceled the project earlier this year. Gov. Gretchen Whitmer and legislature had approved a $200 million grant for the project at Escanaba Mill earlier last year. The funding, originally earmarked for Billerud U.S. Production, will go back to the general fund, said Otie McKinley, spokesperson for the Michigan Economic Development Corp. State incentives to revitalize the Escanaba Mill have been canceled after the facility’s owner, Billerud, dropped plans to convert the plant to production of cartonboard. “Also of note, none of that funding was distributed to the company,” McKinley said in an email. …The project would have helped retain nearly 1,240 jobs at the mill’s 2,000-acre site in Escanaba Township and Wells Township in Delta County.

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Finance & Economics

US lumber market chaos – why is the market slumping?

By Fergal McAlinden
Mortgage Professional America Magazine
July 9, 2024
Category: Finance & Economics
Region: United States

Russ Taylor

During a protracted slump this year prices have remained mired below $400 per thousand board feet for 12 weeks in a row. …Russ Taylor said the sharp spike in mortgage rates and borrowing costs since 2022 have weighed down on the lumber market’s performance, and look set to keep activity muted for the foreseeable future. The “bite” of rates hovering around the 7% mark is especially impacting the repair and remodeling sector, he noted, which marks the biggest lumber consumption segment in the US. …The prospect of borrowing costs remaining higher for longer could keep the market subdued by canceling out cheaper lumber costs and deterring builders from beginning projects. …Markets are currently expecting the Federal Reserve to cut its key rate at least once before the end of the year. Taylor noted that a single mild rate cut is unlikely to do much to change buyers’ or builders’ sentiments. 

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Wood, Paper & Green Building

Minneapolis breaking into biochar business

By Larry Adams
Woodworking Network
July 8, 2024
Category: Wood, Paper & Green Building
Region: United States, US East

The city of Minneapolis plans to build a $1.5 million biochar production facility, which reportedly is the first city-owned plants of its kind to turn wood debris into biochar. Minneapolis is one of seven cities in the world to receive grant funding for biochar projects, and it is using the funding to build a biochar facility. Partnering with BluSky Carbon, a startup specializing in pyrolizers, devices that convert wood into biochar through pyrolysis, which is the heating of an organic material in the absence of oxygen. Because no oxygen is present combustion does not occur, rather the biomass thermally decomposes into combustible gases and bio-char.  Minneapolis invested $575,000 in BluSky’s technology, which heats the raw material to 700 degrees F. Located near Huntington Bank Stadium, the 4,242-square-foot facility at 670 25th Ave. SE will commence operations this fall.

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Forestry

The ‘wood wide web’ theory charmed us all – but now it’s the subject of a bitter fight among scientists

By Sophie Yeo
The Guardian
July 9, 2024
Category: Forestry
Region: Canada

You have probably heard the theory, that the health of forests depends on common mycorrhizal networks. …Not ringing any bells? Try switching “common mycorrhizal network” with “wood wide web”, the more familiar term that has described this phenomenon in hundreds of more mainstream places: novels, magazines, films and television series. The wood wide web is one of those rare things – a scientific theory that has captured the popular imagination. …The concept of the wood wide web originated in a series of scientific papers led by the forest ecologist Suzanne Simard. No one can blame an academic for framing their work in terms the layperson can understand, even if some precision is lost along the way. But trouble arises when a scientific theory gains a life of its own, becoming culturally relevant in a way that ignores, simplifies, or contradicts the facts that birthed it.

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Uniting to lead digitally driven forestry solution

Forsite Consultants Ltd.
July 10, 2024
Category: Forestry
Region: Canada, Canada West

Forsite is excited to announce we are now part of the Barr GeoSpatial Solutions “BGS” group of companies. BGS is a leading provider of analytics and remote sensing to help manage and protect natural resources and critical infrastructure across North America. Other companies in the BGS group include Northwest Management Inc. (NMI) (Moscow, Idaho), Airborne Imaging (Calgary) and Barr Air Patrol (Houston). Forsite, a leading provider of forestry solutions in Canada including digital tree inventories, forest land management, fire modeling, and vegetation management for utilities, is excited to join the Barr group of companies. BGS’s advanced fleet of over 25 sensors and 50 aircraft, coupled with state-of-the-art aerial LiDAR, imaging, surveillance, and Al technologies, delivers invaluable data through sophisticated processing and analytics. Being part of BGS will provide Forsite the resources and market access to allow the expansion of our technology product offerings across North America and around the world.

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Heat wave raises spectre of wildfires, campfire ban

By Jeff Bell
Victoria Times Colonist
July 9, 2024
Category: Forestry
Region: Canada, Canada West

Recent warm, sunny weather could be the start of a much-longer hot stretch “without a very obvious end to it,” raising concerns about wildfires, says an Environment Canada meteorologist. Victoria-based Armel Castellan told reporters Monday that even with typical July temperatures, residual moisture on the forest floor can be depleted in seven to 10 days. “That is the very strong concern as we go deeper into this week,” said Castellan, who said Environment Canada collaborates closely with the B.C. Wildfire Service at this time of year. …The outlook has changed, however, with recent rising temperatures, along with lack of rain in the immediate forecast. That means a campfire ban is now under consideration, said Coastal Fire Centre information officer Jade Richardson.

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New path set for collaboration with First Nations in environmental assessments

By Ministry of Environment and Climate Change Strategy
Government of British Columbia
July 9, 2024
Category: Forestry
Region: Canada, Canada West

New rules for dispute resolution will help support settle conflicts between the Province and First Nations about environmental assessments, a significant milestone in the ongoing commitment to reconciliation and environmental stewardship. The Environmental Assessment Office’s (EAO) dispute resolution regulation offers predictable and clear avenues for First Nations to dispute decisions related to large projects that require an environmental assessment certificate. It provides an alternative to the courts to resolve conflict and support durable decisions, relationship and trust building, and can help avoid lengthy court battles. Access to dispute resolution is affirmed in Article 40 of the United Nations Declaration on the Rights of Indigenous Peoples (UN Declaration) and is a procedural right for First Nations in the Environmental Assessment Act, which provides an opportunity for a qualified third-party facilitator to support the parties in consensus seeking and building good relations between governments.

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Forest Service Urged to Better Protect Eastern Old-Growth, Mature Forests in New Plan

Center for Biological Diversity
July 9, 2024
Category: Forestry
Region: United States

WASHINGTON— Environmental groups urged the U.S. Forest Service today to revisit new proposed forest management guidelines because they fail to provide enough protection, including against logging, for old-growth trees and forests in the Eastern United States. A letter from 34 organizations calls for bold leadership and a science-based approach that protects mature forests to help recover and expand old-growth ecosystems. The forests are critical for biodiversity, mitigating climate change and ensuring resilience to floods and droughts. The groups requested a meeting with Forest Service Chief Randy Moore to address problems identified in the recently issued National Old-Growth Amendment draft environmental impact statement. …“This draft rule would allow even more of our mature forests to be logged when we should be protecting the few old-growth forests that remain,” said Will Harlan, Southeast director and senior scientist at the Center for Biological Diversity.

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Proposal to shut down public working forests threatens critical Washington state services and jobs

By Nick Smith, American Forest Resource Council
The Centralia Chronicle
July 9, 2024
Category: Forestry
Region: United States, US West

Washington faces significant social and economic risks if anti-forestry groups succeed in persuading the Board of Natural Resources and candidates for commissioner of public lands to close an additional 77,000 acres of public working forests, including those in Lewis County. These working forests, known as Department of Natural Resources (DNR) state trust lands, are not just sources of timber; they provide clean water, wildlife habitat, climate change mitigation and recreational opportunities. The proposed closure severely impact public schools, local public safety agencies, public health services, universities and other essential community services. Under the state constitution and state law, DNR state trust lands must be managed to generate timber harvest revenues for defined beneficiaries, including public schools, local public safety agencies and various community services. This proposal to shut down working forests not only threatens these critical services, but also jobs throughout Washington, leading to negative impacts for the state’s infrastructure and economy.

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US Department of Agriculture Approves Emergency Forest Restoration Program Assistance

Morning AgClips
July 10, 2024
Category: Forestry
Region: United States, US East

SPRINGFIELD, Ill. — The U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) announced that Illinois counties Marshall and Putnam are accepting applications for the Emergency Forest Restoration Program (EFRP) to address tornado and severe storm damages. Signup for EFRP will end August 5, 2024. “These programs help private forest landowners clean up and restore their private forests damaged by tornadoes and severe storms,” said Scott Halpin, State Executive Director for FSA in Illinois. “If you haven’t participated in FSA programs, contact your local FSA office as soon as possible to complete the process of establishing customer and farm records and to determine program eligibility.” EFRP provides payments to eligible owners of nonindustrial private forest (NIPF) land to carry out emergency measures to restore land damaged by a natural disaster.

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The Forest Stewardship Council Streamlines Journey to EUDR Compliance with Latest Solution

By Forest Stewardship Council
Businesswire
July 9, 2024
Category: Forestry
Region: International

BONN, Germany — The Forest Stewardship Council (FSC) announced the launch of FSC Aligned for EUDR, a new solution designed to support compliance with the European Union Regulation on Deforestation-free Products (EUDR). This offering aims to simplify the complex task of meeting EUDR requirements for businesses trading with forest-based products in Europe. FSC Aligned for EUDR will support companies that need to comply with EUDR through two key components: 1. FSC Aligned Certification for EUDR: Available from July 1, 2024, this add-on module builds upon FSC’s existing rigorous standards, incorporating specific EUDR regulatory expectations around risk assessment, due diligence, and supply chain transparency. 2. FSC Aligned Reporting for EUDR: Launching August 30, 2024, this automated data compilation system will assist companies in generating required due diligence reports and statements, as well as enhance traceability and data management across complex supply chains. For more information visit www.fsc.org/EUDR

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Carbon, Climate & Bioenergy

Heat wave scorching Canada can’t touch 2021 heat dome

The Canadian Press in CBC News
July 9, 2024
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada West

Sweltering temperatures stretching from British Columbia to the Ontario border have prompted hundreds of heat warnings, but it’s not as intense as the deadly 2021 heat dome in B.C., says a national warning preparedness meteorologist. Environment and Climate Change Canada said that while the “epicentre” of the heat is located in Northern California, it is expected to persist over much of British Columbia and into Alberta and Saskatchewan until about mid-week, after which it will move eastward. An unrelated heat wave has meanwhile sent temperatures into the 30s in Atlantic Canada.The weather office has issued more than 40 heat warnings in B.C., when more than 20 daily heat records were broken Sunday across the province. While Environment Canada says some of the heat warnings are expected to be lifted by Tuesday, particularly along the coastline and on Vancouver Island, other regions can expect the heat to continue longer.

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Forest Fires

Oregon wildfire update: Larch Creek Fire brings evacuations near Dufur

By Elliott Deins & Zach Urness
The Register-Guard
July 10, 2024
Category: Forest Fires
Region: United States, US West

Multiple wildfires are burning around Oregon, and evacuation warnings are in place. Here’s the latest on the fires burning statewide. A fast-moving wildfire has brought evacuations near Dufur after burning 3,500 acres of grass and timber in Central Oregon. The Larch Creek Fire is 5 miles southwest of Dufur, closest to Friend, burning west of Highway 97. The fire has brought level 3 “go now” evacuations in the Tygh Valley area west of White River Falls State Park. …“The fire is currently burning with moderate-to-high spread,” ODF said late Tuesday night. No structures have burned yet, officials said. …The Salt Creek Fire in Southern Oregon has grown to 3,300 acres. On Monday night, fire crews used cooler evening temperatures to build and improve the line, increasing the fires containment to 2%, according to a news release.

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Crews continue mitigation efforts as Deer Springs Fire grows

KMYU
July 9, 2024
Category: Forest Fires
Region: United States, US West

KANE COUNTY, Utah — The Deer Springs Fire has grown to 11,888 acres and 10% containment. The fire was first discovered around 1 p.m. Sunday on BLM land in Kane County, south of Bryce Canyon, near Skutumpah and Timber Creek roads in the Deer Springs area. Officials with Utah Fire Info said the fire appeared to be human caused, but that it is still under investigation. 154 fire personnel are working to mitigate the flames. On Tuesday, fire crews worked to secure the fire line on both flanks of the fire. Crews are continuing fire line construction to the south and containing any smaller fires that migrated off the rim. …Winds out of the north-northwest are reportedly favorable to suppression tactics, although Red Flag Warnings remain in effect through Wednesday evening.

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Forest History & Archives

Creating a state-of-the-art showcase to tell America’s conservation story

National Museum of Forest Service History
July 10, 2024
Category: Forest History & Archives
Region: United States, US West

The National Conservation Legacy Center will be a world class museum… Our exhibits will feature state of the art participatory and immersion experiences with educational activities and events to inspire our visitors to engage and understand the conservation of America’s natural resources. …Since 1905, the U.S. Forest Service has been making history as America’s first conservation agency. However, over the course of its 100+ year history, there has never been one central location where the people can learn and enjoy this history. …The National Conservation Legacy Center will provide a world class, one of a kind facility for all to learn and enjoy this rich and uniquely American conservation history. …Tall timbers tell stories in the Grand Lobby with wood timbers featured from across the nation. The lobby’s construction will use 16 different wood species for support posts. Visitors will learn how these different tree species played a role in the development of the United States.

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