Here's what I do.

I use fir chips but I'm sure cypress can be treated the same. You can either bake or freeze your substrate to kill any potential bugs. In the winter I just put it outside for 24 hours at below freezing temps and that kills everything. Now that it's spring, I bake it in the oven at 250F. for 45 minutes (I'm sure 30 is fine). I've also heard some people state that they sift the smaller particles out of their cypress mulch with a screen of some sort.