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2 0 0 7A N N U A LR E P O R T
evergreen&evergiving
2 0 0 8A N N U A LG O A L S
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In 2007, the Pacic Forest Trust strivedto assure working forests and their
stewards garner greater recognition for
the tremendous resources they provide
the public and our planet. We advanced
historic policies and engineered
landmark carbon transactions that
together substantiated the valueof forest-derived climate benets.
We advanced our forest
conservation efforts in
Oregon and Washington.
We conserved at-risk family
forestlands in the Sierra
and launched a collaborativeeffort in the Klamath-Cascade
that will help preserve a sustainable,
forest-based future in Californias wood-
basket. And throughout the year, we
continued to unite sustainability-focused
landowners, foresters, timber companies,
environmentalists,policymakers and
businesses to work
together to keep
working forests
Evergreen and
Evergiving.
Working to Secure an Ever-Livable Climate Future
Forests can work to keep our planet cool, if we workto keep them standing strong.
This is the message we delivered to landowners, legislatforesters and nanciers across the nation as we pushedforward with ourWorking Forests , Winning Climate
initiative to promote policies, protocols and programs twill help put more than 400 million acres of U.S. forestl
to work to deliver real and lasting climate benets.
In California, the Pacic Forest Trust (PFT) assembled abroad coalition of stakeholders to secure the adoption
of the Forest Protocols by the California Air ResourcesBoard (CARB) the lead agency implementing thestates Global Warming Solutions Act (AB 32). With th
October approval of the Forest Protocols establishingthe rules for voluntary early action projects, forestsofcially became part of Californias strategy to achieve
its ambitious emissions reductions goals and the Forest
Protocols became the rst government-endorsed, forescarbon standards in the United States. The action has
also positioned landowners to prot from the multi-billdollar international greenhouse gas offset market.
The Forest Protocols developed over a four-year perwith the participation of scientists, foresters and climateexperts ensure carbon dioxide emissions reductions
(ERs) generated from working forests are consistent wiinternational norms. The Forest Protocols set rigorousrules for calculating ERs that are additional to what a
forest would normally provide under business-as-usual
management. They also assureERs are permanent by requirin
forest practices be secured wconservation easement and tall carbon calculations are ver
by independent, third-partycertiers.
The CARB vote representeculmination of work star tby PFT with its successful
2002 legislative initiative
an evergiving year2 0 0 7 H I G H L I G H T S I
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their forests
from expansivedevelopment in theCalifornia SierraNevada.
The 725-acre Turner CreekRanch owned by Russell and Elva
Turner in beautiful Sierra Valley iswithin commuting distance of growingpopulation centers Truckee and Reno andhad been threatened by development pressures
that could have divided the property into more than80 individual lots. Instead, thanks to a working forestconservation easement (WFCE) agreement, the historicranch that has been run by the Turner Family for more
than 150 years will be perpetually preserved and
its cattle grazing, hay farming and timberoperations sustained.
The Love Creek Forest 413acres of family-owned forestlandbordering Stanislaus NationalForest and Big Trees State Par faced similar development
threats due to its proximityto these popular public lands.Having seen an increasingnumber of their neighbors
properties converted tosubdivisions and wanting to stem
this tide, the Smith Family generouagreed to donate a WFCE to PFT.
In doing so, the Smiths ensured theirforestlands would never be converted and woul
continue to be managed in the same sustainable mannerthat has beneted the entire region for generations.
Further north in California, PFT began work on ourKlamaCascade Greenprint for the Future. A collaborative researchand planning project undertaken with community leadersacross the region, the goal of the KC Greenprintis to cre
a roadmap for sustaining a forest-based future in what
is one of the most productive and biodiverseconifer regions in the world. The Klamath-Cascade is Californias wood basketand provides the state with themajority of its water.A declining timber industryand escalating development,however is beginning to
threaten this
natural and
global treasure.
that led to the creation of
the Forest Protocols by theCalifornia Climate ActionRegistry.
Further advancing forestsas a positive climate changeagent in 2007 were a series
of high-prole sales of carbondioxide (CO2) ERs from our model
Van Eck Forest Project a carbonbanking and sustainable forestryoperation on 2,200 acres of working
forestlands in Humboldt County. HouseSpeaker Nancy Pelosi, California Governor
Arnold Schwarzenegger and California Assembly Speaker
Fabian Nez all invested in Van Eck-generated ERs to helpreduce their personal carbon footprints.
In Washington State , two key climate bills PFT
helped develop were signed into law. One setssignicant emissions reductions goals andthe other calls for the development of annventory and accounting framework thatwill enable Washington to join emerging
carbon trading markets. Both new lawsrecognize the importance of Washingtonsforests to these efforts. PFT also servedon the states forestr y-focused TechnicalWorking Group (TWG) and, in that role,helped develop strategies to slow forest lossand enhance the ability of Washingtons foreststo store more carbon.
Beyond the West, PFT continued its work with stakeholdersn New England to help expand the role of forests in theevolving Regional Greenhouse Gas Initiative. We similarlyadvised an emerging coalition of climate-focused groupsn the Southeast. And we expanded our presence inthe nations capitol educating key policymakers in theU.S. Senate, House of Representatives and in key federalagencies about how best to incorporate climate gains from
forest conservation and sustainable management in federal
policies and subsequent carbon markets.
Keeping Forests Ever-Productive throughCooperative ConservationThe Pacic Forest Trusts growing conservation teamtraveled up and down the West Coast in 2007 working
with landowners to conserve and steward their lands. Byyears end, PFT completed two conservation agreements
with family forest landowners, helping them safeguard
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Yet fur ther nor th, just acrossthe border in Oregon, thePacific Forest Trust announced
we would seek to have the 5,000-plus acres of private in-holdings weve
acquired as part of ourCascade-SiskiyouNational Monument Campaign to Complete
the Vision transferred to public ownership andofcially added to the Monument. Backed by
the support of Oregons U.S. Senators GordonSmith (R) and Ron Wyden (D) along with House
Representative Peter DeFazio (D), PFT worked with theBureau of Land Management (BLM) to secure more than$860,000 in federal grants to facilitate a BLM purchase ofPFT-owned property encompassing parts of the famedPacic Coast Trail.
Gathering to Celebrate Ever-Worthy Projects and Partners
The Pacic Forest Trust c losed out 2007 by paying tr ibuteto ourEvergreen & Evergivingforests and their championsat our annual Forest Fete dinner and awards ceremony.
Former Secretary of the California EnvironmentalProtection Agency and leading energy, environment andclimate strategist, Terr y Tamminen, gave the eveningskeynote address and spoke of the tremendous progressbeing made throughout the country on climateissues despite the lack of national leadership. Hepraised PFTs trailblazing climate work in the
forestry sector and encouraged all to extendtheir support of ourWorking Forests , WinningClimate program.
Mary Nichols, Chair of the California AirResources Board (CARB), was presented withour Outside-the-Box Award for her supportof the Forest Protocols. Accepting her award,Nichols told the gathering that CARB couldnthave done this without the long-term efforts ofthe Pacic Forest Trust.
Family-owned Port Blakely Tree Farms was honoredas Forest Champion of the Year for their model
stewardship of commercial forestlands in Washingtonand Oregon. Martin Rosen and Misty Gruber
were recognized for their many yearsof dedicated service as longtime PFTboard members. And PFT Stewardship
Forester Matt Fehrenbacherwas named Outstanding
Staff Member of the Yearfor his leadership managing
the Van Eckforestlands
in Oregon andCalifornia.
Forest Fete
2007 was madepossible thanks
to the generoussponsorship ofK&L Gates, Pacic Gasand Electric Company,Autodesk, The Collins Companies,MMA Sustainable Land Investments and WM Beaty &Associates along with dozens more supportive businessesfamilies and individuals.
Strengthening Our Ever-Expanding Organization
Recognizing our nations forest infrastructure wascontinuing to be threatened and the perils of globalwarming were drawing ever near, in 2007 the PacicForest Trust further advanced our advocacy of workingforests and their four core benets wood, water, wildlife
and a well-balanced climate. We shared our expertisewith an ever-broadening audience in an effor
to positively impact forest issuesnationally.
We brought in John Bernstein
a conservation professionalwith 25 years of experiencto lead our land trust and
stewardship programsas vice president ofconservation. We retainedSally Ericsson as our
representative in WashingtoD.C. to rally congressional
support for and help shapenational forest and climate
policy. We added development staffwho have helped us extend our circle of
concerned and committed contributors. We enhancedour internal operating systems with the addition of anew director of nance and administration, Peter Kodzis.And we boosted our constituency building efforts withincreased media coverage of PFTs initiatives.
Reecting our ever-expanding efforts, PFTs operatingrevenues grew 15 percent thanks to the support of agrowing community of benefactors.
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an evergreen future2 0 0 8 G O A L S
Enhance Conservation of
Vital Forest Landscapes
Conserve key working forests in the Central Sierraas part of our new Love Creek Watershed Project
Expand conservation of threatened forestlandsbordering Yosemite National Park
Collaborate with landowners and other stakeholdersto complete and implement the Klamath-CascadeGreenprint for the Future
Advance conservation opportunities in Washington;develop strategies to protect the ecologically rich, yetthreatened, Eastern Cascades
Expand conservation partnerships in Oregon;complete rst-stage transfer of Cascade-SiskiyouNational Monument in-holdings to the Bureau of LandManagement for ofcial inclusion in the Monument
Promote Landmark ForestClimate Policies & Programs
Work to further develop AB 32 implementationmeasures ensuring the integration and effectivedeployment of the forest sector to achieve Californiasgreenhouse gas emissions reductions targets
Advocate for state, regional and national climatepolicies that include forests and contain clear andstrong principles
Continue collaborative efforts in the New England-area Regional Greenhouse Gas Initiative and theWestern Climate Initiative
Advance national climate policy by collaborating witha broad array of stakeholders and scientic communitymembers to provide key technical advice to Congressand the Administration
Fur ther advance the growing forest carbon marketand work with the California Climate Action Registry tochampion Californias Forest Protocols as the basis forvoluntary offset standards to be used in this expandingmarketplace
Upgrade & Expand ForestStewardship Activities
Prepare for Land Trust Alliance accreditation Educate easement landowners about climate-relatedforest management, the potential to register forestcarbon stocks with the California Climate Action Registryand opportunities to market CO2 emissions reductions
everproductive capital-2007 F INANCIAL REVIEW*
*Unaudited nancials. Financial results include operations and conservation acquisitions ($4 million for the Turner Creek Ranch Project). The audited2007 Annual Report Financial Summary will be available for download on our website in late summer. Complete audited nancial statements and anindependent auditors report will also be available upon request at that time.
General andAdministrative - 3.3%
Fundraising - 2.7%Programs - 94%
Miscellaneous Income - 0.2%
Donations - 6.9%Fee for Services - 6.8%Interest & Investments - 6.2%Foundation Grants - 15.9%Government Grants - 64%
Revenue - $6,261,133* Expenses - $6,205,453*
2008 The Pacic Forest Trust. All rights reserved.
Printed on recycled paper with soybean inks.
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California is a leader
in the ght against
global warming. I
look forward toworking with
organizations like
the Pacic Forest
Trust because it
is important that
we continue to
focus on innovative
ways to reduce
our societys carbon
footprint.
Governor Arnold SchwarzeneggerState of California
The Pacific Forest Trusts Van Eck Forest Project
meets the highest standards, providing real,
significant and durable sequestration.
Diane Wittenberg
Executive Director
The Climate Registry
Its my great honor to be
chairing the Air Resources
Board at a moment when
we had an opportunity
to adopt the Forestry
Protocols under AB32.
What we have done
in California is going
to have repercussions
around the world...and
we couldnt have done this
without the long-term efforts of
the Pacic Forest Trust.
Mary Nichols
Chair
California Air Resources Board
I am grateful partnering with the Pacic Forest
Trust has allowed me to protect my ranch and
preserve my familys way of life here in the Sierra.
Russell Turner
Landowner
Turner Creek Ranch
everthoughtful supportIt is great to have the Pacic Forest Trust as a
partner in effor ts to conserve land within the
Cascade-Siskiyou National Monument. The
Monuments unique biological diversity needssafeguarding, and a key step is working with the
Bureau of Land Management to acquire these
important lands so that its forests, meadows and
waterways will benet the American people for
generations to come.
Senator Ron Wyden
Oregon
United States Senate
Nobody is doing more
for the climate and thepositive role forests
can play than the
Pacic Forest Trust.
Terry Tamminen
former Secretary
Cal-EPAi
Reducing greenhouse gas emissions is in all of our
best interests. Having the Pacic Forest Trust manage
our forests for their climate benets, as well as for
sustainable timber harvest, is, therefore, somethingwere proud to be doing.
Derek van Eck
Chairman
Van Eck Forest Foundation
It is essential that we
lead by example
and neutralize
our travel-
generated
carbonemissions.
I am pleased
that we could
do so with
condence by
working with
the Pacic Forest
Trust.
Speaker Nancy Pelosi
United States House
of Representatives