California bill could end up cutting Canadian forestry jobs

CARLETON PLACE -

UPDATE: California governor Gavin Newsom vetoed the bill in this story Tuesday night.

A state bill in California could mean cuts to Canada's forestry sector.

The Forest Products Association of Canada (FPAC) says the Golden State is looking to build back their economy coming out of COVID-19 with a low carbon economy using wood.

"There's a bill on the desk of the Governor of California's right now that discriminates against forest product exports from Canada," says Derek Nighbor, president and CEO of FPAC. "We're asking the governor of California to veto that bill which he has the power to do."

Nighbor says the wording of the bill is ambiguous. The term 'forest product exports' could mean anything ranging from lumber to toilet paper. Nighbor says that while this is a west coast problem right now, he is worried about the precedent it could set.

"If this bill happens in New York, or Massachusetts, or eastern-side states that have more of a direct working relationship with Ontario mills and those in Renfrew County, that poses a problem."

If that were to happen, sawmills in the Ottawa Valley, a region rooted in lumber production, could bear the brunt of it. Operating just outside of Carleton Place, Lanark Cedar is hopeful their local market supplying the Toronto-Montreal corridor would stay strong.

"I would think that a lot of mills would close because even if they were to sell it to Canadian markets there just wouldn't be enough volume to support all those jobs," says Lanark Cedar owner Rob Windle.

Lanark Cedar doesn't export to the United States, but has seen the trickle down effect of limiting Canadian sawmill exports.

"We had a major supplier out in New Brunswick and they closed down several years ago with the supply of white cedar, which is what we specialize in."

The bill in California has already passed through the state legislature, and has now left the governor with a deadline of Oct. 10.

"I'm hopeful, but I have not a lot of faith in what decision is going to be made," says Nighbor. "This could go either way."