2014 ANNUAL REPORT
Resources for the Future (RFF) is an independent, nonpartisan organization that conducts economic research and analysis to help leaders make better decisions and craft smarter policies about natural resources and the environment. RFF brings together respected economists and leading environmental researchers from around the world to develop solutions that balance the need for both economic growth and environmental stewardship. www.rff.org/annualreport
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Contents A Message from the President
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RFF by the Numbers: 2014
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Leading Research Excellence
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Convening Our Community
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Engaging in Global Issues
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Enriching Policy Dialogues
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Resources Magazine
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Supporters
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Financial Statements
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Board of Directors
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Experts and Staff
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How You Can Help
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Welcome A MESSAGE FROM THE PRESIDENT Separating fact from fiction in today’s policy debates takes more than an eye for detail and an ear for the truth. It requires a network of independent experts—committed to cutting through the noise—focused on developing smart solutions to address societal, economic, and environmental needs. It takes Resources for the Future.
“In this polarized environment, RFF’s role as a credible, trusted source of information is more necessary than ever before.”
Let’s face it: When historians reflect on our era, the story that’s told will be one of profound environmental, economic, and political gridlock, exacerbated by ideological divides and cynical partisanship. Yet here at RFF, something fascinating is happening. More and more individuals and institutions are turning to our experts for knowledge, counsel, and research-based insights that help them interpret the opportunities and challenges presented by today’s environmental, energy, and climate policy issues. In this polarized environment, RFF’s role as a credible, trusted source of information is more necessary than ever before. As we share this annual report, we applaud and are sincerely grateful to the visionary donors who make our work possible and believe that environmental and natural resource policies around the world can and should be better. Many RFF supporters maintain that economic growth and environmental stewardship are not mutually exclusive. In fact, they are willing to make an investment in the prospect of balancing such goals by supporting an independent research institution that strives to do just that. In 2015, major decisions are expected from various levels of government that will shape the ongoing management and use of our natural resources. Recognizing that these decisions will have effects that ripple across generations to come, RFF experts will be there, providing data and analysis to decisionmakers, conducting stakeholder outreach and discussions, hosting public seminars, and maintaining our role as technical advisors to regulators and policymakers. As we do so, we send our thanks to you and others who generously provide the financial and intellectual resources that enable RFF to conduct this vitally important—and increasingly rare—work.
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President Resources for the Future
2014
RFF by the Numbers A YEAR IN REVIEW
142
13,000
People received RFF’s monthly newsletter, RFF Connection
Viewers tuned in for RFF’s live event webcasts
17,000
210
4,100
People visited Common Resources, RFF’s blog
Blog posts were written for Common Resources
Facebook and Twitter users followed RFF
54
1,350
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RFF publications were produced by RFF experts
People attended RFF’s public seminars and events
Academic seminars were hosted by RFF experts
14,000
182
68
Subscribers received Resources magazine
Individuals, corporations, foundations, and other institutions supported RFF
Researchers and staff made up the RFF team
Research projects were tackled by RFF experts
3,100
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Leading Research Excellence HIGHLIGHTS OF THE CRITICAL RESEARCH CONDUCTED AT RFF IN 2014
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Climate Policy
Disaster Aid
Analyzing Policies to Reduce Power Plant Emissions
Investigating Options for Funding Disaster Recovery
In June, the US Environmental Protection Agency released the Clean Power Plan—a proposal to reduce carbon dioxide emissions from the nation’s existing power plants, using the agency’s authority under the Clean Air Act. In anticipation of such a proposal, RFF experts had examined the potential impacts of and possible approaches for implementing the rule. The American Economic Review published “The Costs and Consequences of Greenhouse Gas Regulation under the Clean Air Act” by RFF’s Dallas Burtraw, Joshua Linn, Karen Palmer, and Anthony Paul in early 2014 (also an RFF discussion paper). The authors compared the costs and benefits of policy options that put a price on carbon emissions, finding that the most cost-effective option is one that keeps the revenue within the electricity sector. RFF’s Anthony Paul and Sophie Pan examined the details of the Clean Power Plan in “EPA’s Clean Power Plan: Breaking Down the Building Blocks.” They demonstrate the actual emissions reductions that would be achieved by each of the “building blocks” of the proposal and show possible futures for emissions reductions if any of the building blocks fail to survive legal challenge.
Years have passed since Hurricane Sandy made landfall, but the storm’s economic and environmental impacts can still be felt along the East Coast. Congress initially approved approximately $50 billion in supplemental recovery funding—more than the annual expenditures of many federal agencies. However, in “A New Era of Disaster Aid? Reflections on the Sandy Supplemental” and a related infographic, RFF’s Carolyn Kousky and Leonard Shabman show that affected households only received a fraction of the aid. Funds were used primarily to reimburse local governments, assist businesses, rebuild infrastructure, and support projects to reduce damages from future storms. The authors note that although risk mitigation is important, Congress should use a more deliberate approach for investing in such projects and not rely on funds designated as “emergency” spending. In addition to emergency relief funds, flood insurance is another form of disaster aid provided at the federal level. In “Pricing Flood Insurance: How and Why the NFIP Differs from a Private Insurance Company,” Kousky and Shabman explain why the National Flood Insurance Program (NFIP) is fundamentally different from private insurance policies, which can collect higher premiums to cover payouts over the long run.
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Natural Gas
Water
Exploring the Risks and Benefits of Shale Gas Development
Managing Water Resources in the United States
Shale gas development continues to divide stakeholders concerned about the economic and environmental impacts of hydraulic fracturing. Some concerns focus on how shale wells might affect communities and the value of nearby homes. Using data from New York and Pennsylvania, RFF’s Lucija Muehlenbachs of the University of Calgary, Elisheba Spiller of the Environmental Defense Fund, and Christopher Timmins of Duke University examined these effects in “The Housing Market Impacts of Shale Gas Development.” They conclude that shale gas development can have significant negative impacts on nearby groundwater-dependent homes, although homes that depend on piped water experience small positive impacts from lease payments.
The development of new fossil fuel resources has increased water demand in the United States at a time when many western states are experiencing extreme droughts. RFF’s Yusuke Kuwayama and Alan Krupnick, and RFF’s Sheila Olmstead of the University of Texas, Austin, explored this issue in “Water Resources and Unconventional Fossil Fuel Development: Linking Physical Impacts to Social Costs.” Their report shows that, on average, unconventional fuel development does not use much more water than conventional. However, they emphasize that the specific location and timing of water use matters; it is possible for unconventional fuel projects to have significant localized negative impacts.
In a survey of the public in Pennsylvania and Texas, RFF’s Alan Krupnick and Juha Siikamäki found a broad base of support for shale gas development, despite concern about the potential environmental risks. In “Would You Pay to Reduce Risks from Shale Gas Development?” they write that although 59 percent of respondents said that they are supportive of development, survey participants in both states ranked concerns about the risks to groundwater and surface water highest among possible risks.
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Kuwayama proposes another option that could help water-stressed regions better manage uncertain water supplies. In “Groundwater Markets: Managing a Critical, Hidden Resource,” he outlines what such a market might look like: A regulatory body could quantify existing groundwater rights and a broker would take on the role of “matchmaker” for buyers and sellers seeking to exchange those rights. This type of market could function in many places throughout the country, because groundwater use is typically unregulated in the United States.
Oil and Gasoline
Economy and Environment
Providing Recommendations on the Future of Fossil Fuels
Measuring the Impacts of a Carbon Tax in the United States
The shale gas boom and tumbling gas prices have prompted US lawmakers to take a second look at several longstanding fossil fuel policies. RFF’s Joseph Aldy of Harvard University addresses one of these programs in “Money for Nothing: The Case for Eliminating US Fossil Fuel Subsidies.” He argues that special tax provisions that subsidize oil, gas, and coal companies have little effect on overall fossil fuel production, despite costing taxpayers $4.9 billion per year, and cutting them would lead to significant emissions reductions. He explains that the best prospect for eliminating these provisions might be found in comprehensive tax reform.
Following the election of a new prime minister in 2014, Australia became the first country to repeal a carbon tax, citing that households would save hundreds of dollars per year. The need for objective research on the subject became critical. RFF’s Roberton Williams, Hal Gordon, Dallas Burtraw, Richard Morgenstern, and Jared Carbone of the Colorado School of Mines released two discussion papers on how a US carbon tax might impact people by state and by income group.
Another energy policy that received considerable attention in 2014 was the possibility of lifting the ban on US oil exports. RFF’s Stephen P.A. Brown of the University of Nevada, Las Vegas, and RFF’s Charles Mason of the University of Wyoming released “Lifting the Oil Export Ban: What Would It Mean for US Gasoline Prices?” They find that lifting the ban would boost crude oil production and improve the efficiency of global refinery operations, while US gasoline prices would fall—despite fears to the contrary.
In “The Initial Incidence of a Carbon Tax across Income Groups,” they explore how the revenue from such a tax might be used, and how the costs would be distributed across various income groups under three approaches. Their findings indicate that recycling the revenue through lump-sum rebates to the public would be less regressive, but also less efficient. In “The Initial Incidence of a Carbon Tax across US States,” they note similar effects. Cutting capital taxes benefits states with large shares of capital income, lump-sum rebates favor low-income states, and cutting labor taxes results in a relatively even distribution of the costs across states.
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Convening Our Community HIGHLIGHTS FROM SOME OF RFF’S MOST THOUGHT–PROVOKING EVENTS IN 2014
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A Discussion of the Independent Risk Assessment for Risky Business: The Economic Risks of Climate Change in the United States. June 26, 2014. At this RFF seminar, authors of the independent risk assessment for the Risky Business Project and other experts highlighted the methods, data, original research, and key findings in the assessment. Pictured: RFF’s Molly Macauley, Trevor Houser of the Rhodium Group, and Robert Kopp of Rutgers University.
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A Conversation with EPA Administrator Gina McCarthy September 25, 2014. RFF President Phil Sharp and EPA Administrator Gina McCarthy discussed the economics of critical environmental issues facing the nation.
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Considering the Contributions of Forests in the Management of Greenhouse Gas Emissions. January 29, 2014. At a seminar co-sponsored with the Society of American Foresters, experts outlined how the responsible management of forests in the United States can help mitigate climate change impacts at a national and international scale. Pictured: David A. Cleaves of the US Forest Service.
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5
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Limits to Securitization: The Future of Insurance. June 4, 2014. Experts explored the challenges of insuring risky events, such as climate-related disasters, and emerging tools for better managing risk. Pictured: Peter Nakada of Risk Management Solutions, Inc. and RFF Board Member Bob Litterman of Kepos Capital.
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Natural Resources, Ecology, and Public Policy: Time for Some Unconventional Ideas? May 28, 2014. Experts discussed how public policies shape the linkages among humankind, natural resources, and ecology in today’s era of the Anthropocene. Pictured: RFF’s Molly Macauley, Jack Bobo of the US Department of State, and RFF’s Joel Darmstadter.
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Energy Revolution: Utilities Confront the Shifting Energy Landscape—A Conversation with Chris Crane, President and CEO, Exelon. May 13, 2014. Chris Crane joined RFF’s Phil Sharp for a conversation about the massive shifts affecting the energy industry and how they will shape the economy in years to come.
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From the Gulf to the Arctic: What Have We Learned Since the Deepwater Horizon Spill? April 17, 2014. RFF hosted a dialogue on lessons learned from restoration in the Gulf of Mexico region and how they might be applied to the development of oil and gas resources in the Arctic. Pictured: Fran Ulmer of the US Arctic Research Commission, William Brown of the Bureau of Ocean Energy Management, Mark Fesmire of the Bureau of Safety and
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10 Environmental Enforcement at the US Department of the Interior, Beth Kerttula of the Center for Ocean Solutions at Stanford University, and Christopher Smith of the US Department of Energy. 8
Nobel Laureate Robert Engle: A Financial Approach to Environmental Risk. March 18, 2014. Robert Engle discussed financial strategies for hedging against future market volatilities caused by climate change.
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Making Sense of EPA’s Proposed Rule for Reducing Greenhouse Gas Emissions from Existing Power Plants. June 5, 2014. Three days following the announcement of EPA’s Clean Power Plan, RFF convened experts to examine the new proposed rule and the challenges and opportunities that implementing the rule might bring. Pictured: Reid Harvey of the US Environmental Protection Agency.
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The Shale Gas Debate: How Industry and Environmental Messages Stack Up. December 6, 2013. At this RFF briefing on Capitol Hill, experts revealed new survey results about the public’s perception of the potential risks associated with shale gas development, and how different sources of information affect those concerns. Pictured: RFF’s Juha Siikamäki and Alan Krupnick.
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Engaging in Global Issues HIGHLIGHTS OF RFF’S FOCUS ON POLICY SOLUTIONS AROUND THE WORLD
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Carbon Trading and Shale Gas
Fuel Conservation
China
India
As China continues to reform its economy, it has also begun to address the environmental challenges that accompany economic growth. RFF’s Clayton Munnings, Richard Morgenstern, Zhongmin Wang, and Xu Liu looked at three regional pilot programs for carbon trading in China and made recommendations to improve their design as the country prepares for implementation of a national program in 2016.
India is also facing the environmental challenges associated with a growing economy, and its car market has expanded rapidly over the past 20 years. RFF’s Maureen Cropper, with Randy Chugh of the US Department of Justice, reviewed various policies that the country is considering to conserve fuel and reduce its dependence on foreign oil, finding that raising taxes on diesel fuel might be the most effective.
In addition, the development of shale gas reserves in China could have a significant effect on China’s economy and environmental performance. RFF’s Zhongmin Wang and Alan Krupnick, with Lei Tian and Xiaoli Liu of the Energy Research Institute in Beijing, examined the US experience with shale gas development to offer insights on how China could overcome the inherent problems with exploiting its hard-to-reach shale reserves.
Energy and Climate Coordination
North America Energy production in Canada, Mexico, and the United States is evolving rapidly, providing an opportunity to reap both the economic and environmental benefits from trilateral coordination of energy and climate policies. RFF’s Alan Krupnick and Raymond Kopp, in partnership with the Mario Molina Center in Mexico and the International Institute for Sustainable Development in Canada, are exploring a number of issues, including onshore oil and gas regulations, enhanced integration of the electricity grid and competitive wholesale power markets, options for coordinated action on climate change, and fossil energy export strategies.
Biodiversity
Latin America In Latin America—a region stressed by poverty, political instability, and natural disasters—biodiversity conservation may not always be a priority. RFF’s Allen Blackman, Rebecca Epanchin-Niell, Juha Siikamäki, and Daniel VelezLopez provided a five-point action plan for policymakers, focused on building green agriculture, strengthening terrestrial protected areas, improving environmental governance, managing coastal and marine resources, and furthering biodiversity data and policy evaluation.
Emissions Trading
Europe The European Union’s Emissions Trading System operates in 28 countries and covers approximately 45 percent of the EU’s greenhouse gas emissions. However, an oversupply of emissions allowances has caused the allowance price to drop to levels that threaten the success of the program. RFF’s Dallas Burtraw examined an efficient policy solution: the adoption of a price floor. He argues that such a fix would lead to more predictable market outcomes and greater public support.
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Enriching Policy Dialogues HIGHLIGHTS OF ANALYSIS BY RFF EXPERTS ON THE MOST IMPORTANT ISSUES OF 2014
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Invasive Species “Rather than a single strategy, a portfolio of approaches is required. The first is to keep invasives from arriving in the first place. . . . But even the best-designed inspection strategy will not be 100 percent effective.” Rebecca Epanchin-Niell, Developing Policies to Combat Invasive Species
Sea-Level Rise and Shoreline Impacts “More flexible property rights, such as rolling easements, have been suggested to allow for private use of the shore until inundation occurs. Such strategies—if they could be adopted—would allow for orderly retreat.” Carolyn Kousky, Managing Shoreline Retreat in the United States: A Three-Part Strategy
The Midterm Review of the Corporate Average Fuel Economy Standards “The next several years will be a key time for research that can enhance this evaluation and inform future policies to reduce [greenhouse gas] emissions and oil use from the light-duty fleet. Major questions remain about consumer and manufacturer responses to the regulations and about how the costs and benefits of the rule should be estimated.”
Arctic Offshore Drilling Regulations “Can [the Department of the Interior] lead us beyond the level of minimum technical requirements to a mix of performance- and technical-based standards centered on safety? A lesson from the Deepwater Horizon spill was just that: the need for safety performance to figure prominently across the culture of our regulatory agencies.” Molly Macauley, On Proposed Regulations for Arctic Offshore Oil Drilling
The Oil Export Ban “The first step would be to allow crude oil exports to Mexico and the European Union, the latter having imported 30 percent of its crude oil from Russia in 2013. This step would thus lead to an increase in domestic activity and jobs.” Jan Mares and Alan J. Krupnick, Lifting the Oil Export Ban: A Staged Approach
The United Nations Climate Summit “Commitments to reduce emissions offered by each country should emanate from legally binding domestic policies that are capable of producing the reductions contained in the commitments.” Raymond J. Kopp, Pursuing a Global Climate Treaty: Next Stop, New York
Alan J. Krupnick, Joshua Linn, and Virginia D. McConnell, Research Questions for the Midterm CAFE Review
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Energy Efficiency in 111(d) “Incorporating state energy efficiency policies into Clean Air Act plans will make those policies federally enforceable and potentially limit a state’s flexibility with respect to changing or modifying the program in the future. Whether this is a deterrent or not remains to be seen.” Karen L. Palmer, Energy Efficiency in 111(d): The Role of End-Use Efficiency in State Compliance Plans
The Russia-Ukraine Conflict “While, in years to come, expanded shipments [of liquefied natural gas] from the United States, Qatar, Australia, and other countries will undoubtedly result in the creation of a worldwide gas trading system (blunting would-be supply manipulation), for now, the natural gas card remains a conceivable option for Mr. Putin to play.” Joel Darmstadter, Russia and Ukraine: The Energy Dimension
Water Scarcity and Droughts “Although people are generally willing to pay much less for water used to flush toilets or irrigate parks than for drinking water, investment in providing this lower-value recycled water may be economically justified if the cost of treating wastewater to greywater or landscape irrigation standards is much lower than the cost of treatment to potable quality.” Yusuke Kuwayama, Getting Past the “Yuck” Factor: Challenges for Public Acceptance of Recycled Water
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Climate Change Opinions “Our surveys suggest that Americans have been overwhelmingly ‘green’ on climate change issues for many years, despite a barrage of natural disasters, media events, and campaign speeches that one might have imagined would impact such opinions.” Jon A. Krosnick, Nuri Kim, and Bo MacInnis, What Americans Think about Climate Change
Fossil Fuel Subsidies “These so-called tax expenditures—which are effectively equivalent to government spending—subsidize oil, gas, and coal companies by about $4.9 billion annually. In return, however, there is virtually no change in US production.” Joseph E. Aldy, Money for Nothing: The Case for Eliminating US Fossil Fuel Subsidies
Shale Gas Risks “The public in two very different states is supportive of sustainable shale gas development and willing to pay, through higher natural gas prices, to reduce some of the risks that sustainability implies. The government can use this information to examine how stringent its regulations should be by comparing these monetary benefits of risk reductions as the public sees them to regulatory costs.” Alan J. Krupnick and Juha Siikamäki, Would You Pay to Reduce Risks from Shale Gas Development? Public Attitudes in Pennsylvania and Texas
RESOURCES MAGAZINE Resources is RFF’s flagship magazine, first published in 1959. In 2014, Resources featured articles by more than 35 leading experts, including the following: •
What Americans Think about Climate Change
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Can Product Labels Nudge Energy Efficient Behavior?
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Private Funding for Public Parks: Assessing the Role of Philanthropy
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Reflections on the Oil Shock of 40 Years Ago
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Getting to an Efficient Carbon Tax: How the Revenue is Used Matters
•
Forever Ours? The Challenges of Long-Lived Environmental Problems
Read more: www.rff.org/resources.
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Supporters RFF is sincerely grateful to the following supporters for their generous contributions during 2014.
INDIVIDUALS AND FAMILY FOUNDATIONS John Evangelakos
Mohamed T. El-Ashry
Linda J. Fisher
Richard Epstein
Kathryn S. Fuller
Robert S. Epstein
Edward F. Hand
Markus Fromherz
W. Bowman Cutter
Robert & Ardis James Foundation
William Fulkerson
Heising-Simons Foundation
Sally Katzen
Linden Trust for Conservation
Knobloch Family Foundation
Lea Harvey
Robert Litterman
Raymond J. Kopp
Merck Family Fund
Rubén Kraiem
S.D. Bechtel, Jr. Foundation
Richard E. Kroon
The G. Unger Vetlesen Foundation
Jan W. Mares
President’s Circle $25,000 and above
William Pizer
Chairman’s Circle $50,000 and above Gregory Alexander Anthony Bernhardt
Paul F. Balser Larry Birenbaum W. Bowman Cutter Samuel Freeman Charitable Trust
Steven W. Percy Robert P. Rotella Foundation John W. Rowe Roger W. Sant Henry B. Schacht Phil Sharp Lisa A. Stewart
Christopher J. Elliman
Edward L. Strohbehn Jr.
C. Boyden Gray
Associates $250 and above
Council $5,000 and above
Anonymous
Christopher C. Aitken
Merribel S. Ayres
James K. Asselstine
Harold Brown
Vicky A. Bailey
Dallas Burtraw
David Blood
Barbara Bush
Kristin L. Breuss
Trudy Ann Cameron
Red Cavaney
John M. Campbell
Preston Chiaro
Emery N. Castle
John M. Deutch
Joel Darmstadter
Elaine J. Dorward-King
Sandy Dean
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Kathryn Gabler William Hildreth R. Glenn Hubbard Stephen D. Kahn Donald M. Kerr Robert A. Kistler Howard Klee Thomas E. Lovejoy Kelly McKemy Wilhelm Merck George G. Montgomery Daniel H. Newlon Edward L. Phillips Bernard J. Picchi Mark A. Pisano Paul R. Portney Nicholas E. Powers Helen Raffel William K. Reilly Richard Schmalensee Bruce Smart Helen Marie Streich Michael L. Telson John E. Tilton Victoria J. Tschinkel Chris G. Whipple
LEGACY SOCIETY AND FRIENDS OF FIRST WEDNESDAYS Catherine G. Abbott John F. Ahearne Paul F. Balser Emery N. Castle Thomas D. Crocker J. Clarence Davies Margaret W. Fisher Maybelle Frashure Kenneth D. Frederick Robert W. Fri Darius W. Gaskins Robert E. Grady Debbie Groberg Winston Harrington Jeffery Horn Donald M. Kerr Thomas J. Klutznick Richard Morgenstern Steven W. Percy Paul R. Portney William D. Ruckelshaus Clifford S. Russell Helen Marie Streich Edward L. Strohbehn Victoria J. Tschinkel
CORPORATIONS AND ASSOCIATIONS Chairman’s Circle $100,000 and above Duke Energy* Exelon Goldman, Sachs & Co.
Hess Corporation Lockheed Martin Corporation The National Council for Air and Stream Improvement Pacific Gas and Electric Company
Plum Creek Timber Company, Inc.
The Salt River Project
Weyerhaeuser
Shell Oil Company
President’s Circle $50,000 and above BP America Chevron Corporation Electric Power Research Institute Green Diamond Resource Company Rio Tinto Southern Company United Technologies Corporation
Schlumberger Ltd. Southern California Edison TD Bank Toyota
Associates Less than $25,000 American Forest and Paper Association Bracewell & Giuliani LLP Consolidated Edison Company of New York
FOUNDATIONS
Research Institute of Innovative Technology for the Earth
The Bill & Melinda Gates Foundation
Statistics Norway
The Energy Foundation Generation Foundation The Curtis & Edith Munson Foundation New Venture Fund The New York Community Trust Next 10 Rockefeller Family Fund Alfred P. Sloan Foundation Smith Richardson Foundation Tinker Foundation US Endowment for Forestry and Communities
OTHER INSTITUTIONS Asian Development Bank
DMV.org
Bipartisan Policy Center
Edison Electric Institute
Warburg Pincus*
Merrill Lynch & Co., Inc.*
Biotechnology Industry Organization Cornell University
Council $25,000 and above
Microsoft Corporation* Mitsubishi Corporation
Deustche Gesellschaft für Internationale Zusammenarbeit
American Gas Association American Honda Motor Company
National Alliance of Forest Owners
Health Canada
Pioneer Natural Resources
University of Gothenburg
Raytheon Company*
Inter-American Development Bank
BASF
Southwestern Energy
CF Industries
Stout and Teague
Cheniere
Venable LLP
Conoco Phillips
Vinson & Elkins LLP
The Lincoln Institute of Land Policy
DrillingInfo*
Westport Innovations, Inc.
National Academy of Sciences
EQT*
*Matching gift donor
IVL, Swedish Environmental Research Institute Ltd.
Wageningen University The World Bank World Health Organization World Wildlife Fund—US
GOVERNMENT Centers for Disease Control and Prevention National Aeronautics and Space Administration National Oceanic and Atmospheric Administration National Science Foundation The State of California Air Resources Board US Army Corps of Engineers US Department of Agriculture (Forest Service) US Department of Agriculture (National Institute of Food and Agriculture) US Department of Defense US Department of Energy US Department of Health and Human Services US Department of Transportation (Federal Transit Authority) US Environmental Protection Agency US Geological Survey
The Nature Conservancy
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Financial Statements Year ending September 30th
ASSETS
2014
2013
$205,653 1,133,062 1,526,222 600 224,747
$50,000 1,348,984 1,664,517 788 217,473
3,090,284
3,281,762
485,854
587,490
62,358,875 -
48,040,529 8,900,000
62,358,875
56,940,529
6,532,143 377,197
6,844,141 373,046
$72,844,353
$68,026,968
2014
2013
Tax-exempt bond financing, current portion Grants and awards payable Accounts payable and accrued liabilities Postretirement benefits, current Deferred Revenue
$270,000 77,483 1,722,902 51,005 677,079
$260,000 67,750 1,612,343 53,045 598,563
Total current liabilities
2,798,469
2,591,701
Tax exempt bond financing, net of current portion Postretirement benefits, net of current
4,890,000 548,609
5,160,000 463,763
Liabilities under split-interest agreements
239,544
237,323
Funds held for others
238,925
146,231
5,917,078
6,007,317
$8,715,547
$8,599,018
54,765,593 2,879,306 6,483,907
49,532,008 3,583,035 6,312,907
CURRENT ASSETS Cash and equivalents Grants and contract revenue receivable Contributions receivable Other receivables Other assets Total current assets Contributions receivable, net of current portion INVESTMENTS Investments at fair value Investment in Land, LLC Total investments Fixed assets - net of accumulated depreciation Assets held under charitable trust agreements Total assets LIABILITIES AND NET ASSETS CURRENT LIABILITIES
Total long-term liabilities Total liabilities
NET ASSETS Unrestricted Temporarily restricted Permanently restricted
Total net assets Total liabilities and net assets
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64,128,806
59,427,950
$72,844,353
$68,026,968
Revenue In fiscal year 2014, RFF’s operating revenue was $10.1 million, 69.6 percent of which came from individual contributions, foundation grants, corporate contributions, and government grants. RFF augments its income by an annual withdrawal from its reserve fund to support operations. At the end of fiscal year 2014 the reserve fund was valued at $62 million.
CHANGES IN UNRESTRICTED NET ASSETS
2014
2013
$1,879,229 640,787 1,188,627 2,288,735 1,062,788 1,808,727 1,267,477 8,563
$2,494,226 1,488,922 2,300,150 2,036,023 972,491 2,023,711 1,567,343 13,017
$10,144,934
$12,895,884
7,923,039 135,543 1,340,984 69,729
8,600,249 185,195 1,255,065 221,535
Total program expenses
9,469,295
10,262,044
Fundraising Management and administration Building operations and maintenance
1,088,990 1,833,008 1,283,367
1,114,947 1,795,025 1,261,596
$13,674,660
$14,433,612
(3,529,726)
(1,537,728)
4,051,294 4,179,289
2,807,881 24,581,087
$4,700,856
$25,851,241
REVENUE Individual contributions Foundation grants Corporate contributions Government grants and contracts Other institution grants Rental income Investment income net of fees Other revenue Total operating revenue EXPENSES
Programs Research Academic relations Communications Other direct
Total functional expenses Change in unrestricted net assets from operations
Expenses RFF research and educational programs continued to be vital in 2014, representing 69.2 percent of total expenses. Management and administration combined with fundraising expenses were only 21.4 percent of the total. The balance is related to facilities rented to other nonprofit organizations.
NON-OPERATING REVENUES (EXPENSES) Realized and unrealized gains (losses) on investment transactions Realized gain on sale of investment in Land, LLC Increase (decrease) in unrestricted net assets Net assets at beginning of year
$59,427,950
$33,576,709
Net assets at end of year
$64,128,806
$59,427,950
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Board of Directors As of October 2014
LEADERSHIP Richard L. Schmalensee (Chair) Howard W. Johnson Professor and Dean Emeritus, Sloan School of Management, Massachusetts Institute of Technology
Phil Sharp President, Resources for the Future
MEMBERS James Asselstine Tyler Hill, Pennsylvania
Vicky A. Bailey President, Anderson Stratton Enterprises, LLC; and Principal, BHMM Energy Services, LLC
Paul F. Balser Co-Founder, Ironwood Partners, LLC
Anthony Bernhardt Northern California Director, Environmental Entrepreneurs
Trudy Ann Cameron Raymond F. Mikesell Professor of Environmental and Resource Economics, University of Oregon
Red Cavaney Alexandria, Virginia
John M. Deutch Institute Professor, Department of Chemistry, Massachusetts Institute of Technology
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Elaine Dorward-King Executive Vice President of Sustainability and External Relations, Newmont Mining Corporation
Daniel Esty Clinical Professor of Environmental Law and Policy, Yale Law School
Linda J. Fisher Vice President and Chief Sustainability Officer, Dupont Environment and Sustainable Growth Center
C. Boyden Gray Partner, Boyden Gray and Associates
David G. Hawkins Director, Climate Center, Natural Resources Defense Council
Rick R. Holley Chief Executive Officer, Plum Creek
Peter R. Kagan Managing Director, Warburg Pincus, LLC
Sally Katzen Senior Advisor, Podesta Group
Rubén Kraiem Partner, Covington and Burling, LLP
Robert B. Litterman Chairman, Risk Committee, Kepos Capital
Richard G. Newell Director, Duke University Energy Initiative; and Gendell Associate Professor of Energy and Environmental Economics, Nicholas School of the Environment, Duke University
Henry Schacht Managing Director and Senior Advisor, Warburg Pincus
Robert N. Stavins Albert Pratt Professor of Business and Government, John F. Kennedy School of Government, Harvard University
Joseph L. Stiglitz Professor of Economics, Business, and International Affairs, Columbia University School of Business
Mark R. Tercek President and CEO, The Nature Conservancy
Susan F. Tierney Senior Advisor, Analysis Group
CHAIR EMERITI W. Bowman Cutter Senior Fellow and Director, Economic Policy Initiative,The Roosevelt Institute
Darius W. Gaskins, Jr. Partner, Norbridge, Inc.
Robert E. Grady Managing Director, Cheyenne Capital Fund
Lawrence H. Linden Founder and Trustee, Linden Trust for Conservation
Frank E. Loy Washington, DC
Experts and Staff As of October 2014 LEADERSHIP
Maureen L. Cropper Senior Fellow
Phil Sharp President
Edward F. Hand Vice President, Finance and Administration
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RESEARCH Francisco Aguilar Gilbert F. White Postdoctoral Fellow
Joseph E. Aldy Visiting Fellow
Allen Blackman Thomas Klutznick Senior Fellow
James W. Boyd Senior Fellow and Director, RFF Center for the Management of Ecological Wealth
Timothy J. Brennan Senior Fellow
Stephen P.A. Brown Visiting Fellow
Dallas Burtraw Darius Gaskins Senior Fellow
Ziyan Chu Research Associate
Roger M. Cooke Chauncey Starr Senior Fellow
Joel Darmstadter Senior Fellow
J. Clarence Davies Senior Fellow
Alexander Egorenkov Research Assistant
Rebecca Epanchin-Niell Fellow
Carolyn Fischer Senior Fellow
Brian Flannery Center Fellow, RFF Center for Energy and Climate Economics
Arthur G. Fraas Visiting Fellow
Robert Fri Visiting Fellow
Leonard Goff Research Assistant
Hal Gordon Senior Research Assistant
Marc Hafstead Fellow
Winston Harrington Senior Fellow
Kristin Hayes Assistant Director, RFF Center for Energy and Climate Economics
Jacqueline Ho Research Assistant
Mun Ho Visiting Fellow
Raymond J. Kopp Senior Fellow and Co-Director, RFF Center for Energy and Climate Economics
Carolyn Kousky Fellow
Kailin Kroetz Fellow
Alan J. Krupnick Senior Fellow and Co-Director, RFF Center for Energy and Climate Economics
Yusuke Kuwayama Fellow
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Antung Anthony Liu Fellow
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Joseph Maher Postdoctoral Fellow
Chuck Mason Visiting Fellow
Jan Mares Senior Policy Advisor
Virginia D. McConnell Senior Fellow
Katrina McLaughlin Research Assistant
Richard D. Morgenstern Senior Fellow
Lucija Anna Muehlenbachs Visiting Fellow
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Lucy O’Keeffe Research Assistant
Sheila M. Olmstead Visiting Fellow
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Sophie Pan Research Assistant
Anthony Paul Center Fellow, RFF Center for Energy and Climate Economics
Nigel Purvis Visiting Fellow
William Raich Research Assistant
Nathan Richardson Visiting Fellow
Skyler Roeshot Research Assistant
Heather L. Ross Visiting Fellow
Stephen W. Salant Visiting Fellow
James Salzman Gilbert F. White Postdoctoral Fellow
Francisco Santiago-Avila Research Assistant
Roger A. Sedjo Senior Fellow and Director, RFF Forest Economics and Policy Program
Samantha Sekar Research Assistant
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