Water, Carbon and Campaign Advocacy. Dave Tenny President and CEO National Alliance of Forest Owners

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1 Water, Carbon and Campaign Advocacy Dave Tenny President and CEO National Alliance of Forest Owners

2 National Alliance of Forest Owners Membership 61 members 79 Million Acres 47 States NAFO is dedicated to protecting and enhancing the economic and environmental value of privately owned forests through targeted policy advocacy at the national level.

3 Working Forests Economic Footprint in 29 States 2.5 million direct, indirect and induced jobs $235 billion in sales from forests and related industries $87 billion payroll for direct, indirect and induced jobs $115 billion total contribution to GDP (1.06%)

4 U.S. Wood Consumption Demographics U.S. in 1900 Population 76 million Median Income $490 Housing Starts 189,000 Pulpwood 8 MT U.S. in 2000 Population 281 million Median Income $45,000 Housing Starts 1.3 million Pulpwood 200+ MT

5 Growth in Standing Inventory 800 MT of net CO sequestration 3.5 million trees planted each day

6 Forests and Markets Are Mutually Dependent Markets provide both economic and environmental benefits from working forests Market growth increases the economic and environmental benefits of working forests Market decline decreases the economic and environmental benefits of working forests

7 U.S. Housing Market Source: National Association of Home Builders

8 US Paper and Paperboard Market Paper & paperboard prod., '000 tons Source: American Forest and Paper Association

9 U.S. Biomass Energy Market Biomass Energy Project Count Total Announce Projects Region Electricity Liquid Fuel Pellet Total Total that Pass Screens North South West Total (55%) Source: Forisk Consulting

10 U.S. Carbon Market Source: Chicago Climate Exchange

11 Policy Threats to the Marketplace Carbon: Policies that regulate forest carbon emissions under the Clean Air Act. Water: Policies that regulate forestry as a point source of water pollution under the Clean Water Act.

12 Carbon - EPA PSD Tailoring Rule Policy: Carbon emissions from biomass energy will be regulated the same as fossil fuel emissions. Result: Biomass combustion moves from being part of the carbon solution to part of the carbon problem.

13 Forest Carbon Cycle vs. Fossil Fuels Emissions Fossil Fuel Non-biogenic CO 2 Biogenic CO2

14 Tailoring Rule Policy Impacts Forest carbon changed from an economic asset to a liability. Potential for land use regulation (good vs. bad biomass) under the Clean Air Act with scope similar to RFS Chilling of investment fossil fuels/other renewables are favored over biomass

15 Tailoring Rule Economic Impacts $18 Billion in investment capital 11,000 26,000 fewer jobs 134 wood to energy projects and facilities at risk 92% of mills, 87% of wood-to-electricity projects 54 million tons of biomass removed from marketplace

16 Tailoring Rule Campaign in Targeted States Target States

17 Tailoring Rule Campaign: Oregon The Oregonian op-ed by Matt Donegan of Forest Capital Partners runs on the day of the President s visit to Oregon. September 16: Campaign Begins Oct. 20: Congress Adjourns Oct 20: Obama visits OR Impact The Medford/Jackson Chamber of Commerce, Klamath County Chamber of Commerce, and HM3 Energy send letters to Senators Merkley and Wyden. Biogreen Sustainable Energy Co. and other third party groups send letters to Senators Merkley and Wyden. Democratic gubernatorial candidate John itzhaber discusses the Tailoring Rule with President Obama at a campaign event in Portland. Hiroshi Morihara of HM3 Energy intercepts U.S. Rep. Peter DeFazio (D). The Klamath County Commission and the Lake County Commission sent letters to Cecilia Munoz, Director of ntergovernmental Affairs at the White House. On October 22, Senator Ron Wyden (D) affirmed his opposition to the Tailoring Rule s treatment of woody biomass in a debate with Republican challenger Jim Huffman.

18 Source: DSIRE Forests are for wild animals, fresh air, clean water, and hiking with our kids. But now industry wants to burn our forests for biomass electricity, polluting the air we breathe and stealing from future generations.

19 Campaign Results 100+ members of Congress registering concern with EPA including key committee leaders 113 highly regarded scientists oppose science of Tailoring Rule 111 Grass Tops Intercepts in target states Direct advocacy before President Obama and his staff

20 Policy Results EPA deferring application of rule to biomass for three years Interim treatment of biomass as Best Available Control Technology for regulated facilities Two year review of the science on the carbon impacts of biomass energy Final rulemaking on the treatment of biomass energy in 2013

21 The Path Forward is All About Scale Biomass removed for energy production

22 Water NEDC v. Brown Policy: Forest roads used for timber harvest are no longer nonpoint sources and must receive federal NPDES permits the same as confined industrial polluters. Result: Working forests move from being part of the clean water solution to part of the clean water problem.

23 NEDC v. Brown Policy Impacts Courts reverse 35 years of EPA precedent Forest moves from a source of clean water to a regulated industrial polluter Legal precedent established for other productive land uses

24 NEDC v. Brown Economic Impacts Increased costs for permit implementation, monitoring and paperwork New litigation exposure CWA citizen suits Costs and legal uncertainty reduce net present value of forestland compared to other land uses

25 NEDC v. Brown Campaign Objectives Courts Supreme Court Review and Administration defends its own rule Congress enact H.R. 2451/S EPA regulations will not require permits

26 Forest Roads Campaign Target States Target States

27 Forest Roads Campaign: Oregon Regulation by litigation puts the power of public policy in the hands of private groups that file lawsuits. It takes it away from the elected branches of government.... because the Clean Water Act allows citizen lawsuits, virtually every logging project anywhere in Oregon could be challenged. That's the last thing that the Oregon timber industry needs as it struggles to compete with timber producers in other parts of the country and the world, none of which face this regulation of forest roads. Direct Advocacy Begins Legislation Introduced/Field Campaign Begins Kitzhaber seeks Supreme Court review Impact May 2011 July 14, 2011 July 25, 2011 Advocacy begins with Sen. Wyden and Rep. Schrader on legislation and Gov. Kitzhaber on Supreme Court petition. Earned media and grass tops efforts begin. Sen. Wyden and Rep. Schrader introduce bipartisan legislation. Governor Kitzhaber announces he will seek Supreme Court review of 9 th Circuit Decision Support from political leaders in Oregon helps to advance the issue in Congress and Administration..

28

29 Cosponsors H.R Barrow(GA-12) Bishop(GA-2) Boren (OK-2) Butterfield (NC-1) Dicks(WA-6) Emmerson (MO-8) Goodlatte (VA-6) Hartzler (MO-4) Hastings (WA-4) Holden (PA-17) Jones (NC-3) Kissell (NC-8) McIntyre (NC-7) McMorris Rodgers (WA-5) Michaud (ME-2) Myrick (NC-9) Owens (NY-23) Peterson (MN-7) Pingree (ME-1) Rahall (WV-3) Ribble (WI-8) Ross (AR-4) Schrader (OR-5) Sewall (AL-7) Simpson(ID-2) Thompson, Bennie (MS-2) Thompson, Glen (PA-5) Walden (OR-2)

30 Cosponsors S Blunt (MO) Boozman (AR) Burr (NC) Chambliss (GA) Collins (ME) Graham (SC) Hagan (NC) Klobuchar (MN) Landrieu (LA) Manchin (WV) McCaskill (MO) Pryor (AR) Risch (ID) Roberts (KS) Shaheen (NH) Snowe (ME) Wicker (MS) Wyden (OR)

31 Who Supports H.R and S. 1369? Association of Fish and Wildlife Agencies Association of Water Pollution Control Agencies National Association of Conservation Districts National Association of State Departments of Agriculture National Association of State Foresters Archery Trade Association Boone & Crockett Club Campfire Club of America Congressional Sportsman s Foundation Ducks Unlimited National Wild Turkey Federation North American Bear Foundation North American Grouse Partnership Quality Deer Management Association Ruffed Grouse Society Safari Club International United States Sportsman s Alliance Whitetails Unlimited Wildlife Management Institute Wild Sheep Foundation

32 Questions?

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