NOVELTY - Bioremediating or degrading wood containing ammoniacal copper quat (ACQ) involves inoculating wood with an inoculum comprising at least one ACQ-tolerant fungus, at least one lignocellulosic substrate (I) and at least one nutrient supplement (II), where (I) and (II) produce biomass of fungal inoculum sufficient to at least partially remediate ACQ or degrade wood; aerating and hydrating inoculated wood to allow fungal inoculum to remediate ACQ.    USE - The method is useful for bioremediating or degrading wood containing ammoniacal copper quat (ACQ) (claimed). The fungal inoculum is useful for degrading and bioremediating wood containing ammoniacal copper quat. The degraded wood product is reused as wood fiber resource.    ADVANTAGE - The ACQ-tolerant fungi utilized do not require genetic alteration to specifically grow in the presence of ACQ. Thus, the introduction of the fungi into the environment provides no new, non-naturally occurring organisms. The preparation and use of the fungal inoculum is fairly simple and utilizes agricultural waste products and waste products from saw mills and urban chipping. These products have the additional advantage of providing a quick and low cost food source for the fungus, while having the added effect of stimulating rapid and extensive fungal growth, as well as providing a readily storable and transportable solid matrix. The fungal strain is readily adapted to the waste wood environment upon inoculation and does not require a period of adjustment before degradation and bioremediation begins.    DETAILED DESCRIPTION - Bioremediating or degrading wood containing ammoniacal copper quat (ACQ) involves inoculating wood with a fungal inoculum comprising at least one ACQ-tolerant fungus, at least one lignocellulosic substrate (I) and at least one nutrient supplement (II), where (I) and (II) produce biomass of fungal inoculum sufficient to at least partially remediate ACQ or degrade wood; aerating and hydrating inoculated wood to allow fungal inoculum to remediate ACQ or to degrade wood.    INDEPENDENT CLAIMS are included for the following:    (1) a fungal inoculum for degrading and bioremediating wood containing ammoniacal copper arsenate (ACQ) comprising at least one ACQ-tolerant fungus, at least one (I) and (II); and    (2) preparing a fungal inoculum for degrading or bioremediating wood containing ACQ involves combining at least one ACQ-tolerant fungus with a matrix comprising at least one (I) and (II), and sterile water, and growing the ACQ-tolerant fungus and matrix combination in dark, aerobic conditions, at a relative humidity of about 70% and in a temperature range of 20-35 degrees C.