Monday, March 02, 2009

Seeking 21st Century Solutions to America’s Forest Health Crisis

The U.S. Endowment is serving in a catalytic role in a broad-based initiative regarding the potential of biotechnology as a tool in the fight to address forest health challenges. The partnership is designed to assess the potential to develop and deploy scientifically-sound, socially acceptable and rigorously vetted/regulated approaches that might see the benefits of biotechnology used in the fight against the ever increasing list of alien pests and diseases that threaten North America’s forests.

The partnership – “Advancing Forest Health through Biotechnology” -- is a three-year perhaps $10M effort that will use the American chestnut as the test tree. The Endowment has pledged $1M to the effort and will serve on the Steering Committee along with other core funding partners, the USDA Forest Service and Duke Energy. Additional guidance and oversight on the Steering Committee comes from Environmental Defense Fund, The Nature Conservancy and a retired forest scientist.

The Forest Health Crisis in North America is Large and Growing
Millions of acres of North American forests (perhaps as many as 58 million acres in the U.S. alone) in every region of the continent are suffering under an onslaught of pests both endemic and exotic unprecedented in human history.

Global climate change and expansion of global trade both portend a future with an increased number of forest health threats with accelerated rates of expansion.

Traditional Means to Address Emerging Threats Aren’t Enough
Traditional tools to address these emerging challenges fall woefully short of meeting needs. While tens of millions of dollars are being spent to fight existing and emerging threats, most result in triage at best with millions of acres and billions of dollars in forest value lost. (Annual timber losses from exotic pests in the U.S. are estimated at $4.2 billion – not accounting for monitoring, control and environmental losses.)

New challenges and the rapid nature of their expansion call for new tools in the fight. Forest biotechnology offers the potential to provide at least one new tool under timelines not practical with any other technology or response.

Foundations Should Lead and Take Calculated Risks that Others Cannot
The U.S. Endowment believes that it is the responsibility of Foundations to do those things that others can’t or are unwilling to undertake. Biotechnology is neither a panacea nor is it likely the plague that some suggest. The Endowment believes that the best way to explore the scientific potential of the technology is to do so in an open/transparent way that is conducted concurrently with societal discussions and regulatory engagement and oversight.

If the Endowment were to try and engage in traditional battles to address forest health challenges, our additional resources while important, would do little to advance the field. However, through a catalytic role and tightly-focused investment in biotechnology we have the potential to offer societal and forest health values that far exceed our small investment.

Science without Consideration of Social and Regulatory Interests Is Unacceptable
In keeping with the Endowment’s approach to all of its work, advances from this investment would be broadly available to society and all work would be conducted in an open/accessible manner. What sets this initiative apart from others is the commitment to concurrently integrate the science, social and regulatory paths in a single plan.

Frequently Asked Questions
Why is the Endowment supporting this initiative?
Adding a new tool to address North America’s forest health needs fits well with our mission of promoting sustainable forestry and even more directly nests within our initiative to address retention and restoration of healthy working forests. It also aligns well with our core commitments to creating new economic values from forests and benefit communities.

Why is the American chestnut the test tree?
American chestnut was once perhaps the most valuable and wide-spread tree in eastern forests. Its importance as a building material was unmatched. Yet, that is only part of the story. Chestnut was among the nation’s most desirable wildlife food crops as well as a staple for people. By focusing on an iconic tree that crosses the lines of economic and ecological value we have the potential to engage a broad base of interests.

What do you see as some of the biggest benefits potentially coming from this initiative?
While gaining a plantable American chestnut that could offer a new tree and nut crops to landowners and communities up and down the Appalachians would be important, even that pales in comparison to providing new, safe, economical and rapid means to address the growing number of forest health threats.

Aren’t you afraid that biotechnology will go awry and yield “Frankintrees?”
We acknowledge that biotechnology isn’t without potential risks. That said, we too must put things in perspective. Humans have been manipulating plant genes for literally thousands of years through traditional genetic crosses to yield plants and products that meet human needs. The advantage of this work is that it takes a holistic approach to the issue: science will be conducted concurrent with review of societal concerns and regulatory safeguards. Too, as another contextual issue, this work isn’t what one saw in the highly entertaining and perhaps frightening Jurassic Park. In this pilot, two closely related trees – American chestnut and Chinese chestnut – form the base for the work.

Monday, January 05, 2009

An Open Letter to President-Elect Obama

Americans overwhelmingly live in urban and suburban areas -- 80%, with nearly 60% living in just over 150 urban areas. The remaining 20% live in the vast, productive, often-forgotten America beyond. The U.S. Endowment for Forestry and Communities wishes to share some views about infrastructure investments on behalf of rural America.

America is arguably the most blessed nation on earth. Many of those blessings relate not to the material wealth so evident in our urban/suburban lifestyles but to the natural blessings that we too often take for granted. We are a nation endowed with rich soils that yield “amber waves of grain.” On a planet dominated by salt water, we are a nation of fresh, drinkable waters teaming with aquatic life. And yes, we are a nation of forests -- towering pines, oaks and giant sequoias.

Mr. President-Elect, as you assume your new role we urge you to look not just at the shining cities, concrete ribbons of highways and runways and productive factories as the “infrastructure” that powers America. Indeed, we urge you to consider the potential and power of rural America and the “natural resources infrastructure” that not only “built” America but that still holds great potential for our collective future.

There is a Chinese proverb that says all of life’s blessings can be represented by a “0”; with human health a “1”. Without one’s health all other blessings mean nothing. As you look to invest in America’s “built” infrastructure – highways, schools and factories – we urge you to recall that these investments have little value if we lose the rich soils, plentiful and productive waters and abundant forests that set America apart … our “1”.

Take America’s forests as an example of unmatched potential. Fully one-third of our “sea-to-shining-sea” expanse is covered by forests. Simple and yet complex. Perhaps the greatest single gift to our planet, forests provide not only expected products that form our homes and then warm them, but that also serve as the source of clean waters and fresh air. More than 2/3rds of our nation’s potable water is derived from forests – both public and private.

In a time of climate change perhaps no single tool is more diverse and flexible as forests. Not only can they sequester carbon as they grow, they can serve to provide environmentally-preferable products – lumber, paper, rayon and more – that each sequester carbon through-out their long lives and then can easily be recycled without exacerbating greenhouse gasses or leading to pollution challenges.

Yes, forests serve as homes to much of America’s rich and diverse bird, mammal and reptile populations, while at the same time meeting the needs of our nation’s peoples. While forests have housed our population, provided the means to record our history and communicate our feelings, they too have the potential to play a vital role in setting our nation on a course for sustainable energy independence.

America’s forests are as diverse as its people. Not only do the species and types of forests differ, but so do their owners and potential. While we are blessed with lands held in common for all Americans – parks, national forests and wildlife refuges – many of these lands are beset by unprecedented challenges. Climate change, insect infestations, disease and wildfire are all taking a heavy toll. These challenges are inequitably shouldered by our publicly owned forests; yet, these threats are shared by the bulk of our nation’s forests – those stewarded by America’s families, as well.

Whether the term is “ready to go” or “shovel-ready,” when one considers our nation’s natural resources infrastructure, there are literally tens-of-thousands of investment opportunities that will yield family-supporting jobs and economic activity immediately while at the same time yielding long-lasting benefits. The jobs that come from these “green investments” aren’t likely to be out-sourced to other countries nor will the benefits accrue solely to other countries. Neither will they exacerbate global climate change. We urge you to consider investments in the nation’s forests, parks and refuges as well as in private forests and rangelands to ensure adequate supplies of clean water, enhanced storage of carbon, alternative sources of renewable energy and the multitude of benefits that flow from nature’s bounty – renewable wood and paper products, wildlife habitats and places for recreation and re-creation of the American soul and spirit.

We at the U.S. Endowment are, like you, very new in our position. Yet, we are full of hope and anticipate the great change that will benefit not just our generation, but many generations of Americans to come. We stand ready to do our part and look forward to partnering with you to invest in America’s natural resources infrastructure to serve current and future generations. An investment in our nation’s natural resources infrastructure will yield unprecedented potential in terms of environmental and human health, green energy, environmentally-preferable products, clean air and water and a higher quality of life for all Americans – urban and rural.

Friday, November 21, 2008

Addendum to Frequently Asked Questions

In July we began the Endowment Blog. The second in our series of postings dealt with what we termed the "Top Seven Questions Asked about the Endowment." While several months have passed that posting remains largely up-to-date. We did want to provide one addendum related to Washington Forest Law Center's (WFLC) actions regarding the U.S. Government and any relationship to the Endowment. Since the time of our earlier posting, the Forest Stewardship Council (FSC), has joined WFLC in a lawsuit against the U.S. Government. Here are the quick facts:

1. FSC as lead plaintiff filed a suit against the U.S. Government – specifically the U.S. Trade Representative’s office and others.


2. The suit follows a Freedom of Information challenge to the U.S. Government led by WFLC regarding the Government’s handling of certain decisions related to the Softwood Lumber Agreement (SLA) 2006.


3. The FSC suit is against the U.S. Government and does not name as defendants the U.S. Endowment for Forestry and Communities or any of the other organizations granted funds under the SLA. The concerns raised by FSC/WFLC deal with how the U.S. Government made certain decisions related to the SLA trade deal with Canada. These are issues only the Government can address.


4. Other parties in the lawsuit are Conservation Northwest and the Center for Biological Diversity. Both had joined WFLC in its earlier Freedom of Information requests and legal challenges of the Government.


5. The U.S. Endowment is focused on the important work set-forth in our mission – healthy working forests and forest-reliant communities across America -- with a wide range of public and private partners.

Tuesday, October 28, 2008

Navigating Uncertain Economic Times and Remaining True to Mission

I ran into a young man the other day who said, “I’m glad I don’t have any money invested in the stock market so I don’t have to worry about the economic troubles caused by Wall Street.” Perhaps he and others who think they are immune to the global economic upheavals slept through Economics 101. Clearly everyone – individually and organizationally – is or will be impacted by these unprecedented times.

In speaking with the Executive Director of a regional not-for-profit just last week he said he’d seen financial support to his organization “fall off a cliff” in less than a month – that as we enter the quarter of the year where most non-profits expect the bulk of their annual contributions. We’ve also learned of one prominent Boston-based foundation that plans to let its staff go, put its federally-required programmatic spending programs under a minimal auto-pilot plan and “wait” for its corpus to bounce back.

Like the young “non-investor,” we’d like to think that as an Endowment we wouldn’t have to worry about these economic times. If, however, you’ve taken the time to view our latest quarterly Stewardship Report (ending September 30, 2008) you’ll see that our Endowment corpus plunged “well below water” from above $200 million to just less than $175 million – a number that we wish we still had just four weeks later!

As our Board of Directors prepares to meet for its Fall 2008 session, economic issues and realities will permeate our agenda. How can we be true to both our mission and our fiduciary responsibilities given these unprecedented times? How can we keep our commitments and do even more when non-profit partners and communities are under increasing pressure?

Our staff is working on options that would allow us to proceed on all fronts but perhaps in a more measured way – stretching some commitments beyond timelines originally planned while slowing program build-out. We won’t try to speculate what the Endowment’s Board will decide. But, we can assume that this committed and very experienced group of individuals will chart a responsible course of action to help the Endowment navigate uncharted waters in ways that remain true to our vision to see that “America’s forests are sustainably managed to meet broad societal objectives such as marketable products, clean waters, wildlife habitats and other ecological services, while ensuring healthy and vibrant forest-reliant communities."

Wednesday, September 03, 2008

Rural Areas in a World of Mega-Regions

In his most recent book, Who’s Your City?, Richard Florida, the often quoted author of The Rise of the Creative Class takes issue with Thomas Friedman’s “flat world” theory. Florida points to growth and economic dominance of “mega-regions” as his premise and notes in his book’s sub-title that “the creative economy is making where to live the most important decision of your life.” He contends that the global economy is “happening” in a couple of dozen mega-regions (5 to 100 million people) – Greater Tokyo, London, Boston-NY-DC, Dal-Austin, Char-lanta and Cascadia (Portland-Vancouver), among them.

Using economic production, patents and other measures Florida reviews the huge “spikes” of economic power of these areas that far exceed simple concentration of human population (as significant as that is). His major contention is that it is the amassing of human brainpower, especially of those with advanced education and their ability to collaborate when in proximity, that is the driving force. While he does note some exceptions outside the mega regions – Nashville’s dominance in music, for example – each exception is built around a “clustering force” – the clustering of people and productivity, creative skills and talents around a single competitive competence or sector that powers economic growth.

Florida looks at all of the economic downsides to living in mega-regions – high cost of living, especially as relates to housing; long commutes; and congestion – and notes that these are the price of creativity and economic growth. Yet, people continue to vote with their feet and relocate to these areas. One telling factor is the rapid and prolonged increase in housing costs (wealth) in mega-regions vs. the stagnation or decline seen in many rural areas. While Florida’s work is just one theory – contrasted with Friedman’s view that one can live, work and innovate from anywhere in a flat world – it does suggest significant support for the idea that individual rural communities will have an increasingly difficult time competing. Thus, the need to form “mini-regions” built upon clustering of potential that if not ready to compete globally are vitally linked to mega-regions in a symbiotic relationship.

At the Endowment we think that the concept of “Forest Investment Zones” (mini-regions designed around a clustering force) may hold the potential to enliven the future of certain rural areas as the move to mega-regions continues unabated.

Friday, August 22, 2008

The Work of Foundations: Doing What Others Can't or Won't

We plan to do few things and to do those very well. The Endowment’s Board of Directors has made a commitment to invest in those things where, but for the Endowment’s engagement, there is little chance of progress. The catch phrase that has guided us since our creation is to be “systemic, transformative and sustainable” in our work.

In this regard we point to one of our current activities as an example of what one might expect of the Endowment.

Growing Markets
One of our earliest initiatives considers the potential of agricultural “check-off” programs to be used as a vehicle to grow the market pie for softwood lumber in North America. Check-offs have been successfully used by nearly every agricultural product in America – from “Beef, It’s What’s for Dinner” to “Got Milk?” – two of the better known check-offs that have been used to grow markets for beef and milk, respectively. Forest products are eligible for these “voluntary, self-funded” mechanisms, yet, none has ever been attempted at the national level.

Some would say that growing markets is industry’s role alone. We agree; but, we also think there is a role for us as well. First, it is extremely difficult for a highly-diversified and competitive industry to do the work necessary to give full consideration to an effort that would bring all together for the good of the whole – especially where that “good” goes beyond profits to address broader societal values. As an independent third-party “without a dog in the fight,” the Endowment can truly do something that others can’t – conduct an independent study of the potential of check-offs and then serve as a convening catalyst to bring industry leaders together to consider the benefits of such an initiative.

A Sustained Source of Funds to Keep Forests in Forests and Jobs in North America
As we near the end of the assessment phase of the potential to use a check-off to grow softwood lumber markets in the U.S., we also remind others of what’s in it for the Endowment. While we would not be the recipient or manager of funds generated under a program if one were to be adopted, a check-off could generate between $30-50 million annually on an on-going basis to promote the environmental and other attributes of wood products – especially those produced here. We believe that such a program would have several benefits that match the Endowment’s mission and objectives.

First, and foremost, we want to see wood products jobs retained here at home. Second, markets for products link directly to the ability to keep forests in forests and to keep those forests healthy. Jobs, economic value to landowners and retention of manufacturing facilities in rural communities with all of their attendant benefits would multiply a very small Endowment investment many times over. We think that’s a wise investment of the Endowment’s limited resources that could pay-off for generations to come.

Learn More
If you are interested in learning more about the potential of ag-type check-offs to benefit forests, forest product markets and keep jobs in North America, read a copy of the project Overview report that can be found on the Publications page of our website.

Monday, August 04, 2008

Wood, Trees and Forests in the 21st Century Bio-Economy

My good friend and colleague Ken Arney recently loaned me a precious first edition book entitled “Nazis in the Woodpile.” The wonderful work published in 1942 chronicles Hitler’s plot to create a near monopoly in wood to undergird his war effort.

As a forester and veteran of America’s forest products industry I’d never before heard of the pivotal role that wood, trees and forests played in Hitler’s plan for world domination. I asked myself, as author Egon Glesinger asks, “Why not oil?” Germans themselves had noted the world was in the “Age of Oil.” According to Glesinger there are “Two reasons. In the first place, the Nazis know they can secure world control of oil only by a final Anglo-American defeat…And then there is the second reason – they have made wood the backbone of their war economy. Wood helps them meet, to a large extent, their deficiencies in food, clothes, motor fuel and other war essentials. With true German thoroughness… they have come to the conclusion that wood is the coming raw material, and that Hitler’s “Thousand-Year Reich” will be the “Age of Wood.” They have given wood the surname Universalrohstoff, i.e., the material which can produce anything.”

Wood’s Place in a Post Cheap Oil World
For more than a century our world has built and moved on fossil fuels, most notably oil. While Hubbert predicted that oil production in North America would peak around 1970 followed by a worldwide peak near 2000, America continued to build its economy as if nothing would ever change. Gas guzzling SUVs filled our roads that stretched from our urban jobs to our suburban homes. With scarcely a blip caused by the 1973 oil embargo and other periodic jumps in oil prices we tenaciously stayed the course. In the ensuing years domestic production of crude dropped and imports steadily rose -- today standing north of 60%.

Many Americans seem to be slowly awakening to the fact that the age of cheap oil is over. Too, many are realizing that $1-1.5 billion daily sent to foreign producers who don’t share our views or values probably isn’t a good thing. Even if we take our Canadian friends – the biggest exporter of oil to the U.S. – out of the equation, let’s say it is just a $1 billion/day. That’s still a lot of money that won’t go to keep jobs in America. Even with talk of reopening coastal zones or the Alaska National Wildlife Refuge (ANWR) to exploration, we won’t drill or even conserve our way out of this era.

Companies as diverse as Duke Energy and Wal-Mart acknowledge the reality of climate change and the need to build a new energy future. Yet, potential sources of new supply aren’t any more evenly distributed or available than are current supplies of crude. As new technologies advance and as the costs of producing those products come down, solar may be a great fit for some, but not all areas. Likewise dependable sources of sustainable wind aren’t found everywhere. Yet, one-third of our nation is covered by trees…and still more by ag crops that could yield burgeoning supplies of residues or intentionally grown fibers for energy.

What Hitler’s master planner, Hermann Goering, knew in the early 1940’s, is even truer today. Wood, which can readily be “stored on the stump,” can provide a sustainable source of:
1. Solid and liquid fuels
2. Food and fodder
3. Cellulose and textile fibers
4. Structural material; and
5. Wood by-products as basic materials for chemical industries

Our Thinking on Woody Biomass and the Future
If wood held great potential in an era of cheap oil during World War II, why couldn’t it be one of the major foundational pieces for our world today when oil fluctuates in the low- to mid-$100s/barrel? With the Endowment’s vision to promote sustainable forestry and aid forest-reliant communities across the nation, there are few single “fixes.” Yet, wood-for-energy is truly the triple-play.

We think wise management and use of America’s forests for biofuels can play a significant role in addressing all three of our focal initiatives:
Ø Retention and restoration of healthy working forests;
Ø Identification and capture of multiple value streams; and
Ø Capacity and leadership at the community level.

We say wise management because we do not envision wholesale conversion of forests to energy crops. The greatest gains will come with “right-sized” opportunities that are matched to the local forest condition and, wherever possible, where products and services are used as close to where they are produced as is practical.

The transition to an economy that uses wood and forests to their full potential will not be successful if it “throws-out” traditional forest industry (paper and wood products); rather, it must be designed to eke out the highest and best use of each log, chip and chemical extract.

Endowment Actions
At the Endowment we’ve charted two routes on our course to use biomass to meet our mission. First, we soon will have a two-part effort underway that will first assess the current state-of-the-commercial-science in regard to woody biomass conversion to biofuels. The second aspect of that project will seek to create a first-ever system to track the current and emerging use of wood for energy by facility and region to better undergird sound forest management planning and economic development.

Next, we know that large investors and big industrial players have the expertise they need to make their decisions. However, we don’t believe the same is necessarily true of smaller players and communities. Therefore, we plan to work with the best experts across the nation to amass information and resources to aid communities in asking the right questions and to help in sifting the “wheat from the chaff” in the burgeoning field of bioenergy production.

We know all-too-well that the transition from one era to another (e.g. ag to industrial; industrial to information; and now, information to a bio-based economy) can be highly disruptive. Yet, from this disruption will come innovation, family supporting jobs and new sources of wealth.

At the Endowment we aspire to play a role in ensuring that America’s forests and forest-reliant communities are winners in this transition.