LBIP Allocation Model

Allocation of Funding

Apportionment to Each Management Unit

The apportionment of the LBIP funding allocated to licensees is based on Allowable Annual Cut (AAC) determined in a three-part process:

1. The total LBIP allocation for licensees will be allocated to each of the 3 MFR Forest Regions (Coast, Northern Interior and Southern Interior) according to its proportion of the total provincial AAC.
2. The apportionment of the LBIP funding to each management unit (TSA, TFL, community forest) within a forest region is according to its proportion of the regional AAC on Crown land.
3. In each timber supply area and tree farm licence, the apportionment will be allocated to licensees according to the TSA or TFL AAC, Apportionment and Commitment Reports generated by MFR Resource Tenures and Engineering Branch, based on the information contained in the Apportionment System on January 1st preceding the start of the fiscal year (e.g. January 1, 2008 for fiscal year 2008-09), and under the following forms of agreement (as applicable) held by them in the management unit:
   • replaceable forest licences,
   • non-replaceable forest licences (NRFLs) excluding mountain pine beetle and fire damaged timber NRFLs,
   • BC Timber Sale licences and
   • pulpwood agreements.

Community forest AAC information is included within the TSA Apportionment reporting as described above and incorporated into the allocation process.

Woodlot licence tenures are allocated a separate funding amount that is administered under the LBIP.

Minimum Allocation

A two tiered minimum allocation will be introduced starting in 2008-09. Management units (including TSAs, TFLs, community forests) initially receiving less than $25,000 funding will be topped up to $25,000.  Management units that are initially allocated funding between $25,000 and less than $50,000 will be topped up to $50,000.

Funding adjustments to bring the allocation up to the minimum level(s) will come from TFLs for TFLs and from TSAs for TSAs and/or community forests within the same region.

In order to ensure reasonable economies of scale for LBIP administration, no allocation is being made to a licensee in a given management unit unless the indicated allocation to that licensee is at least $10,000.