Pacific Forest Trust 2011 Annual Report by Pacific Forest Trust

2 011 A n n u a l r e p o r t

I really think that’s the joy of PFT; they’re getting things done. And we can work together to make sure 100 years from now working forests are healthy and continue to be part of the climate change solution, protected from development, sequestering carbon and contributing to the economy.” —John Laird, California Secretary for natural resources

2011 A n n u a l r e p o r t

Investing in a Forest-Resource Economy At the end of 2011, the Pacific Forest Trust unveiled “The Klamath-Cascade: California’s Watershed in the Balance.” The publication highlights this globally important, 10 million-acre region of California that receives 75% of the state’s annual precipitation. It provides the vast majority of California’s irrigated agricultural and drinking water. Our initiative builds a new resource economy based on sustainable conservation and stewardship. It outlines a new approach to forest management—harnessing public policies and private capital to build a 21st century forest economy—to reward landowners for sustaining the vital water, wood and climate benefits we all rely on. The culmination of a decade of research and engagement with landowners, agencies and scientists, the report makes the case for conserving the state’s primary watershed as well-managed forest. It highlights the need for cooperative management across the vast span of public and privately owned land for the benefit of communities, forests and water users alike. Forests, water, biological diversity, climate change, and people are all contextualized within the Klamath-Cascade’s broad economic and ecological landscape. So much depends on this relatively unknown forest region. We can’t afford to take it for granted as the climate changes, a younger generation seeks employment, and a 19th century timber industry strains under 21st century economic forces.

over 100,000 acres in the next few years — adding to the over 40,000 acres we have currently conserved as well-managed forest. Together, we’re creating an expansive “living laboratory” to demonstrate how public and private partners can secure key resources together and manage them cooperatively. We couldn’t do it without partners like you, who share our passion for innovative solutions. Thank you for investing in the future of our forests and communities. We’re creating a vibrant, 21st century resource-based economy that serves people everywhere. Sincerely,

It is a great outcome when county supervisors, a business, and conservationists can develop a project that’s good for jobs and helps protect our forests and species.”— Chuck Bonham, Director, California Department of Fish and Game

The response has been positive and immediate. Local, state and federal partners have embraced the report and its recommendations. They are engaged and collaboratively developing shared approaches for sustaining this irreplaceable region. Our Conservation Director, Megan Wargo, now lives in the Klamath-Cascade. PFT’s Klamath-Cascade Initiative is a deepening of our mission. It implements a vision of landscape-level conservation, underpinned by markets for multiple forest values: wood, water, wildlife, climate and our well-being. Forest owners across the region are working with us to conserve Charlie Swindells, Board Chair

Laurie A. Wayburn, President & Co-CEO

Constance Best, Co-CEO

Policy Impact © Gary Leonard

From Big Picture to Fine Print

This is truly revolutionary work... It’s the first time in any regulated greenhouse gas market that forest credits are recognized. And it’s due to the vision of the Pacific Forest Trust.” —Gary Gero, president, Climate Action Reserve The Climate Action Reserve awarded PFT its 2012 Climate Action Champion award, recognizing a decade of successful efforts to address climate change by harnessing the power of forests. The award follows the Calif. Air Resources Board’s historic vote in Oct. 2011 to approve an economy-wide cap and trade program.

The Pacific Forest Trust is known for thinking big when it comes to conserving and stewarding our forest landscapes. The majority of forests in the U.S. — nearly two-thirds — are privately owned, but wildfires, wildlife and watersheds don’t recognize those boundaries. Collaborative solutions are necessary to meet the challenges posed by our growing population and changing climate. In 2011, PFT saw its calls for an “all-lands” approach to managing lands reflected both in the Obama administration’s report on the “America’s Great Outdoors” initiative, and in the U.S. Fish and Wildlife Service’s revised Recovery Plan for one of our most emblematic endangered species, the Northern Spotted Owl. This cooperative, partnership approach to solving problems is at the heart of PFT’s recommendations for stewarding our privately owned natural landscapes for the many public benefits they provide: wood, water, wildlife and a stable climate. Influencing big-picture thinking about forest management is central to our work. So, too, is education and applying our expertise to the “small print.” In 2011, PFT produced scholarly articles on conservation easements, federal policy regarding ecosystem markets

and the economic feasibility of developing forest carbon projects in the South. We also advised policymakers in Calif., Ore. and Wash. on the technical aspects of regulating forest carbon projects, generating renewable energy from forests, and using existing regulatory tools to mitigate the emissions caused by forest conversion. PFT also worked hard to ensure robust project standards and proper carbon accounting for California’s pioneering climate program— and succeeded. The program already is serving as a model for other states and nations. Its success — and our climate future — depends on the integrity of these standards.

on the Service’s revised Recovery Plan for endangered Northern Spotted Owls and served as a key media contact on the plan, providing background and commentary for The New York Times, Oregonian, Environment and Energy TV, and Land Letter among others.

In 2011, the Pacific Forest Trust… • Continued to make strides to secure the role of U.S. forests in climate and energy policies. In California, PFT worked extensively to assist the California Air Resources Board in the development of regulatorycompliance offsets in its landmark cap-and-trade program regulations. These standards were formally adopted Oct. 20, 2011. Creating the first compliance carbon market in the world to include offset projects that reduce greenhouse gas emissions through improved forest management, these new rules promise significant benefits to the atmosphere, forests and landowners across the U.S. PFT also worked with counties and municipalities in Southern California to promote strategies to reduce CO2 emissions through changes to land use, as part of the Southern California Area Governments (SCAG) program. • Collaborated with the U.S. Fish and Wildlife Service on new approaches to improve habitat for endangered species through the use of Working Forest Conservation Easements. PFT also provided feedback

• Cultivated a broad base of support for an adjustment to Yosemite National Park’s (YNP) western boundary among county, state and federal officials, local stakeholders and partner NGOs to help fulfill John Muir’s original vision for YNP. With the leadership of Congressman Jim Costa, this bill is now being introduced in Congress. • Promoted an amendment to the Forest Legacy program that would strengthen the program and state partnerships with land trusts. Championed by state foresters in Calif. and Wash., the amendment is being carried by Ore. Senator Jeff Merkley, with broad support from landowners and conservation groups across the U.S. • Developed a coalition to work with both the state legislature and the Public Utilities Commission to support and demonstrate a sustainable forest energy program within California’s Public Goods Charge funding, work that continues to make significant progress in 2012. • Worked closely with Washington’s Department of Ecology to draft guidance for Washington’s Environmental Policy Act (SEPA) on accounting for greenhouse gas emissions from forest conversion. Opposite page: (Left-right) CAR President Gary Gero, ARB Chair Mary Nichols, PFT Board Secretary Andrea Tuttle, PFT President Laurie Wayburn, PFT Board Member Linda Adams, Fmr. CA State Senator Byron Sher and CAR Director Emerita Diane Wittenberg celebrate PFT’s “knock-out” work for forests and the climate! This page: Ackerson Ranch, near Yosemite National Park (Paul Mason/PFT).

We should be promoting emerging markets for carbon and sustainable bioenergy and establishing other incentives to providing rural landowners with new income opportunities. … PFT has been incredibly effective at forging these types of incentives and partnerships with far-reaching results.” — Tom Vilsack, U.S. Secretary of agriculture

Conservation Progress Landscape-Level, Long View

The [Bear Creek Working Forest] Project successfully balances ecological and economic concerns with a holistic, landscapelevel approach to conservation in a key watershed region.” —John p. Donnelly, executive director, california Wildlife conservation board

(Right, Page 6) From left: John Davis, Rich Potter, Dennis Cain, Tim McBride, Connie Best, Dean Stuck, Jim Wolter, Bill Marre, and Megan Wargo in the Klamath-Cascade Region.

Last year, the Pacific Forest Trust published a report setting an ambitious goal for achieving “big impact” conservation: Ensure 85 percent of California’s primary watershed remains well-managed forest. “The Klamath-Cascade: California’s Watershed in the Balance” focuses attention on almost 10 million acres of the state’s northern forests, reaching from the headwaters of the Feather River to Mt. Lassen and north of Mt. Shasta to the Oregon border, down the Klamath, Trinity and Marble Mountains. The Klamath-Cascade Region provides drinking water for millions of Californians, and the vast majority of its irrigated agricultural water. Yet, few realize how much they depend on the fate of a region located many hundreds of miles away. Today, the Klamath-Cascade landscape is relatively intact — but its private forests and their lifesustaining resources are threatened by an array of forces, including the economic crisis, globalization and the decline of the forest products industry, climate change, and demographic shifts as youth seek work elsewhere. These factors often drive unsustainable management and increasing conversion of forests to sprawl. Building awareness of the Klamath-Cascade’s vital natural values and human communities — as well as

what threatens them — was a driving motivation for producing the Klamath-Cascade Report. PFT also convened an on-going regional advisory council of local stakeholders who are helping us advance shared goals to build a green economy and conserve the Region’s green infrastructure. Working together, we can ensure the Region continues to benefit all Californians who need clean water, sustainably harvested wood products, opportunities for recreation, and inspiration in the wildlands that also are home to so many fish and wildlife.

In 2011, the Pacific Forest Trust… • Launched the Klamath-Cascade Initiative with the release of the Klamath-Cascade report outlining the need for landscape-scale conservation in the state’s primary watershed. We also built a Klamath-Cascade Advisory Council, a diverse group of regional stakeholders, to address the complex economic and ecological threats facing the Region. We already have a good start. We’ve created a conservation corridor of almost 5,000 acres in the Sierra Valley, located just north of Lake Tahoe. In 2011, we worked with landowners to conserve Lemon Canyon Ranch and Calpine Meadow Ranch — 1,400 and 237 acres respectively. PFT leveraged key funding from the Sierra Nevada Conservancy (SNC) and California Wildlife Conservation Board (WCB) along with generous landowner donations to make this happen. Later in the year, we celebrated a major success when the WCB also approved a $7.8 million grant to fund the Bear Creek Working Forest Project. Owned by Roseburg Resources, this 8,230-acre project conserves key working forests, watersheds and other significant natural resources in Siskiyou and Shasta counties. Roseburg Resources, the second largest employer in the area, continues to manage its Bear Creek lands in accordance with the easements terms, and now has additional financial resources to sustainably maintain its operations. The project demonstrates how investing in conserving our natural resources can immediately help a community, while ensuring invaluable dividends for future generations.

• Successfully completed three working forest conservation easements in the Klamath-Cascade: Two in PFT’s Sierra Valley Focal Area and a third major project in the Mt. Shasta Headwaters. PFT has over 100,000 additional acres queued up for conservation regionally. One of these projects ranked first in California and 20th nationally for federal Forest Legacy funding. • Made significant progress on conserving the Lane family’s historic and beautifully managed 2,100-acre Campstool Ranch in Calaveras County. With support from the SNC and WCB, we expect to complete the project in 2012. • Partnered with the California Department of Fish and Game to develop a Conceptual Area Protection Plan (CAPP) for the 3.1 million-acre Mt. Shasta Headwaters Area. The CAPP provides the strategic foundation for investment decisions in conservation regionally. • Added 1,000 acres to the Cascade-Siskiyou National Monument while also working to protect an additional 480 acres. PFT has acquired over 5,500 acres from willing sellers to add to the nation’s first monument designated for its globally outstanding biodiversity.

A mutual, symbiotic relationship exists between the environmental infrastructure and the human infrastructure. Roseburg, PFT and Siskiyou County realize that this is essential to sustainability. The Bear Creek Working Forest Project squarely targets that goal.” —ric costales, natural resources policy specialist, Siskiyou County (Left, Page 7) Big Bear Flat, part of the Bear Creek Working Forest Project.

Thank You. We gratefully acknowledge the following donors whose financial gifts and pledges in 2011 helped make our work possible. $100,000 and up

$5,000-$9,999

William & Lynda Hutton

$500–$999

Margaret A. Cargill Foundation

Cherida Collins Smith & Glenn Smith

Robert & Edie Kirkwood

Iain Boltin

Maribeth W. Collins

Nancy Kittle

Terry & Barbara Collins

Truman Collins

O.H. Perry & Tricia Lloyd

$50,000–$99,999 Bella Vista Foundation

Peter J. Davis Larry Linden/Linden Trust for Conservation Kirk Marckwald & Chris Desser

Mendocino Redwood Company

Dr. Robert Hrubes, Ph.D. Christopher & Martina Mann

Nancy Nordhoff

Mary A. Crocker Trust

Susannah Schroll

Stephen & Amanda Morris

Carbon Canopy/Dogwood Alliance

Karie & David Thomson

Colin Mosely/The Prairie Foundation

Brian & Kathleen Dossey

Andrea & Don Tuttle

Nancy Nordhoff

The Energy Foundation

Brooks Walker & The Walker Family

Pacific Gas and Electric Company

James and Rebecca Morgan Family Foundation Laird Norton Family Foundation Sequoia Foundation William Laney & Pasha Thornton/ Flora L. Thornton Foundation

Bob & Randi Fisher/Pisces Foundation

Dan Martin Edward O’Brien & Patricia Hickey O’Brien Russ Shay George & Anita Thompson

$1,000–$4,999

Timothy & Ulrike Pirrung

Constance Best

Port Blakely Tree Farms LP

$250–$499

The Campbell Group

Roseburg Forest Products

Joseph Bunker

Lisa Cashdan & Peter Stein

Lex Sant

Rosemary Carroll The Collins Companies

Community Foundation Sonoma County’s Schulz Donor Advised Fund

Columbia Forest Products

Walter Sedgwick

Convergent Wealth Advisors Christy Curtis

Shasta Forest Timberlands, LLC

Charles & Paola Casey Anthony Fouracre & Martha Okie-Fouracre Michael Gallagher & Ruth Shapiro Laurie R. Gneiding & Michael Brady Ruskin K. Hartley

Timothy & Billie Taylor

George Helmholz

Nancy Tompkins

Don Koch

Trout Mountain Forestry

Drew Maran & Sandra Slater

$10,000–$24,999

John & Laura Fisher

Allan & Marilyn Brown

The Forestland Group, LLC

Ayrshire Foundation

John Graham & Katherine Munro

Harney & Sons Fine Teas

Green Diamond Resource Company

James & Carmen Ward

Charlie & Darci Swindells

Hancock Forest Management

Laurie A. Wayburn

Gregory & Daphne Tebbe

Maurice & Janice Holloway

Searle Whitney

Humboldt Redwood Company, LLC

W.M. Beaty & Associates, Inc.

The Weeden Foundation

The Law Office of Ellen A. Fred

The Moore Charitable Foundation

The Bullitt Foundation

Marisla Foundation

Conservation Partners — Alison Geballe

National Park Trust

The Libra Foundation

Robert Flint Jr.

Mark Miller

$25,000–$49,999

Lisa and Douglas Goldman Fund

Lyme Timber Company

Vergilia Dakin

Osha Meserve Northland Forest Products, Inc George Peyton, Jr. Paula Phillips Tom & Nona Russell

$100–$249

Janet McLennan

Kirk Marckwald & Chris Desser

Eldon Beck

Nicholas Millar

Lew & Shauna Butler

Michelle Passero

Soluri Meserve, A Law Corporation

Paul & Anne Ehrlich

Jon Roush & Cynthia Chinn

Patagonia

James Finerty

Brian Shillinglaw

Paxton Gate

David Hartwell

Rebecca Tatum

Phillips Bros. Mill Ulrike L. Pirrung

Amy Meyer

Presidio Fitness

Jim & Lisa Nicol

in kind

Jonathan Nimer

Absinthe Brasserie and Bar

Mark Hobart Reed

Michael and Jeanne Adams

Leo Roy

Alexander Valley Vineyards

Linda Sanford

Anchor Brewing

Timothy Schallich

Anderson Valley Brewing Company

Rogers Coffee and Tea

Tania & Michael Stepanian

California Pizza Kitchen in Corte Madera

Rogue Klamath River Adventures Russian River Adventures

Gladys Thacher

California Snow/Bob Roberts

Saintsbury Vineyard

Faye Weisler

Château Julien

San Francisco Hat Company

Paula Westdahl

Chez Panisse

San Francisco Symphony

Donald Wilson

Anton Chiono

Sea Ranch Lodge

Kirke Wolfe

Marshal Compton

Shag Hair Salon

Mary & Mark Zoback

Eight Arms Cellars

Silpada

EO Products

Sorensen’s Resort

$1–$99

Fleet Feet San Francisco

Sports Basement

Greg Blomstrom

Geographic Expeditions

Peter Stent

Jill Butler

Global Yoga

SusieCakes Bakery

David & Kirsten Carpentier

Harney & Sons Fine Teas

The Pad Studios

Theodore & Patricia Eliot

Hotel Durant

VinDebut

Hawk Greenway

Mike Hupp (Dawn Patrol Images)

We Olive

John & Mary Ellen Harte

Husch Vineyards

WorldWise

Gus Kaufman Jr.

Knight’s Catering

Konrad J. Liegel

Lagunitas Brewing Co.

Dan Luoma

Tom Lupo

Ethan Schram

Quail Lodge Golf Club Ravenswood Winery REI Corte Madera Robert Biale Vineyards

If your name has been inadvertently omitted or misrepresented please email communications@pacificforest.org.

Giving Thanks for The People’s Tree The Pacific Forest Trust was proud to partner with the Stanislaus National Forest in providing and delivering the 2011 U.S. Capitol Christmas Tree to Washington, D.C. last December. The U.S. Forest Service relies on a non-profit partner to help orchestrate the tree’s outreach and transportation efforts each year. PFT helped raise awareness of the Tree, coordinated donations, contracted with service providers, and worked with the Van Eck Forest Foundation to make the effort carbon neutral. “We want to thank everyone who partnered with us to help get ‘The People’s Tree’ to D.C. last year,” said PFT president Laurie Wayburn. “Many Americans only think of trees around the holidays. This evergreen gift from California’s forests was an inspiring reminder of the many benefits forests provide all year all across the country: climate stabilization, clean water, wood and rural jobs.”

American Forest Foundation American Rivers Appalachian Mountain Club Bureau of Land Management California Wildlife Conservation Board The Campbell Group, LLC Carbon Canopy Dogwood Alliance Duke University School of Law Fred M. van Eck Forest Foundation, LLC Hancock Timber Resource Group J. Timothy Lane and Campstool Ranch The Lyme Timber Company Pondosa Forest, LLC Roseburg Resources Co. Save the Redwoods League Sierra Cascade Land Trust Council

Don Beaty, W.M. Beaty & Associates Mike De Lasaux, University of California Cooperative Extension Phil Detrich, U.S .Fish and Wildlife Service (Ret.) Jay Francis, Collins Pine Company Nick Goulette, Watershed Research & Training Center Melinda Graves, Natural Resources Conservation Service Gary Hendrix, Phillips Bros. Mill Mike Hupp, Consulting Forester Bob Kingman, Sierra Nevada Conservancy

Sierra Nevada Conservancy

Rich Klug, Roseburg Resources Co.

Sustainable Forestry Roundtable

Curtis Knight, California Trout

The Joseph W. Jones Ecological Research Center

Don Koch, CA Dept. of Fish and Game (Ret.)

USDA Forest Service

Jonathan Kusel, Sierra Institute for Community and Environment Phil Nemir, Consulting Forester

World Resources Institute Yale School of Forestry & Environmental Studies

Steve Bachmann, ShastaTrinity National Forest

Klamath-Cascade Advisory Council Members:

Bill Nunes, Supervisor, Sierra County

Larry Alexander, Northern CA Resource Center

Colleen O’Sullivan, Trinity County RCD

Curt Babcock, CA Dept. of Fish and Game

Laurie Tippin, USDA Forest Service – Region 5

New Board Members The Pacific Forest Trust is delighted to announce five exceptional leaders from the public service, legal, and conservation fields who have joined our Board of Directors. Linda S. Adams is chair of the Climate Action Reserve Board of Directors, and the former CA Secretary for Environmental Protection. Don Koch is a wildlife biologist and recently retired Director of the CA Department of Fish and Game. Steve Quarles is an attorney, partner, and former chair with the Washington, D.C. law firm Crowell & Moring, LLP. Russell Shay is Director of Public Policy for the Land Trust Alliance. Julie Weisman is a veteran environmental lawyer who has worked with the U.S. Department of Justice and multiple public agencies. We also offer profound thanks for the service and insights of outgoing board members Hal Salwasser and Greg Tebbe.

Media Spotlight ‘New Paradigm’ Forest Management Four years ago, the Pacific Forest Trust’s Van Eck Forest Project made headlines coast to coast as the first “early action” carbon emissions reduction project registered under California’s rigorous AB 32 accounting standards. The project amply demonstrated that reductions from forest stewardship projects were “real, verified and permanent.” This effectively created a new forest product, complementary to sustainable timber, and capable of generating substantial new revenues for private landowners.

Partners & Clients

Now, the demonstration forest is getting national attention on another front as we demonstrate how management for climate benefits also promotes habitat for threatened and endangered species. The Van Eck was hailed as a “Model for a New Management Paradigm” in a Land Letter story that also appeared on The New York Times website. Soon after, American Forests magazine profiled the forest in the feature, “Endangered Forest Species: What can landowners do to protect the threatened and endangered species that make their homes on private land?” Both stories noted the innovative Safe Harbor Agreement PFT acquired for the forest by building on the working forest conservation easement, which protects and guides forest management on the property. PFT currently is working to develop a template for this type of permit from the U.S. Fish and Wildlife Service. This will be a new tool to reward owners of working forests for both conserving and improving habitat for threatened and endangered species on their land.

Income: $2,130,727

PFT 2012 Priorities

Other Income: $38,617 Investment & Related Income: $204,852 Individual and Business Donations: $280,437

Foundation Grants: $574,806 Fees for Services & Government Grants: $1,032,015

Fundraising: $288,646 General and Administrative: $315,239 Programs: $1,921,950

The Pacific Forest Trust ‘is rewriting the rules of forest economics by proving that [habitat for threatened species] can remain ecologically valuable while also generating significant income for their owners.’ ” — Land Letter/the New York Times, in “California Forest Hailed As Model For New Management Paradigm,” (September 29, 2011)

• Ramping up our partnerships to knit together the 10 million-acre landscape of the KlamathCascade. Landowners, ranching families, National Forest managers and local communities are collaborating with PFT to overcome ownership boundaries, political barriers and economic hurdles to better protect the Region’s bounty and build a model 21st century forest economy. • Partnering to ensure the effective rollout of AB 32 and advocating for effective investment in conserving forests to secure their immense carbon stores. As Calif. implements its economy-wide cap-and-trade system to fight global warming, ensuring the quality of its linked cap-and-trade program is essential. Forests are a key to reducing CO2 emissions quantifiably, permanently and verifiably — a requirement for the use of revenues from the auction of allowances.

Plus, to learn more about key initiatives such as strengthening the Forest Legacy Program and incentives for the Endangered Species Act, visit www.pacificforest.org.

Th e P re si di o 1001-A O’Reilly Avenue San Francisco, CA 94129 www.PacificForest.org 415.561.0700

Printed on recycled paper

p r i vat e fo r e s t s . p u b l i c t r e a s u r e s . Board of Directors (2011–2012)

Hal Salwasser Russell Shay

Paula Swedeen, Director of Ecosystem Service Programs

The Pacific Forest Trust’s mission is to sustain America’s

Charlie Swindells, Chair Timothy N. Taylor, Vice Chair

Steven P. Quarles

Megan Wargo, Conservation Director

and people’s well being, in cooperation with private land-

Timothy B. Pirrung, Treasurer

Julie Weisman

Linda Coffee, Development Manager

owners and communities.

Andrea E. Tuttle, Secretary

Ivy Kostick, Stewardship Manager

Laurie A. Wayburn, Co-founder, Co-CEO & President

Staff (2011–2012)

Jessica Neff, Stewardship Manager

Laurie A. Wayburn, President & Co-CEO

Jade Battle, Executive Assistant

Constance Best, Co-founder & Co-CEO

Constance Best, Co-CEO

Sean O’Sullivan, Office/IT Manager

Linda S. Adams

Paul Mason, Vice President, Policy and Incentives

Anton Chiono, Policy Analyst

Ken Jennings

Rosemary Carroll, Director of Development

Meghan O’Hare, Senior Development Associate

Don Koch

Matt Fehrenbacher, Director of Stewardship

Cari Wynkoop, Senior Communications Associate

O.H. Perry Lloyd

Christine Harrison, Communications Director

Jolanta Zakrzewski, Senior Accountant

Kirk Marckwald

Peter Kodzis, Director of Finance & Administration

Gregory Tebbe

Jon Remucal, Carbon Project Specialist

2011 A n n u a l r e p o r t

forests for all their public benefits of wood, water, wildlife