WESTERN HARDWOOD ASSOCIATION

1. WESTERN HARDWOOD ASSOCIATION Annual Meeting June 27, 2005 Sunriver, Oregon

2. Update on Hardwood Federation activities Hardwood Federation PAC Current Priority Issues Questions Topics

3. Created in April 2004 to present a united front for the hardwood industry with an emphasis on government relations Started with 11 trade associations Currently 22 hardwood organizations, representing over 4,500 companies A united force to keep the hardwood industry viable for future generations Hardwood Industry Umbrella

4. Vision – A Healthy Hardwood Community Through political action: • Maintain a healthy business environment for family businesses and small companies in the hardwood community • Maintain commercial access to federal and private hardwood timberlands •  Maintain and improve the health of public and private hardwood forests through effective legislation

5. Members of the HF provide financial support for administration (both associations and companies contribute). Association members join – then their membership automatically becomes a member as well. The Federation is responsible for the costs and managing the Hardwood PAC. The Hardwood Federation and the Hardwood Federation PAC are two separate organizations. HF Structure

6. Associations contribute funding to administer HF. $5,000 = eligible for seat on Board for a two-year term. The Board of Directors is the governing body of the HF and guides issue development and Federation policies. HF Board of Directors

7. American Forest & Paper Association (AF&PA) Appalachian Hardwood Manufacturers, Inc. (AHMI) Appalachian Lumbermen's Club Hardwood Distributor's Association Hardwood Manufacturers Association (HMA) Hardwood Plywood & Veneer Association (HPVA) Illinois Wood Products Association (IWPA) Indiana Hardwood Lumbermen's Association (IHLA) Kentucky Forest Industries Association (KFIA) Lake States Lumber Association (LSLA) Los Angeles Hardwood Lumbermen’s Club Memphis Lumbermen’s Club National Hardwood Lumber Association (NHLA) National Wood Flooring Association (NWFA) NOFMA: The Wood Flooring Manufacturers Association Pacific Coast Wholesale Hardwood Distributors Association Pennsylvania Forest Products Association Penn-York Lumbermen's Club Southern Cypress Manufacturers Association Southwestern Hardwood Manufacturers Club Western Hardwood Association Westside Hardwood Club Hardwood Federation Partners

8. Geographic reach of industry, with its huge employment base, is an asset when soliciting contributions and coordinating volunteer efforts to support the legislators who support us. More political clout in Washington, D.C. Energize your individual membership by getting them involved in the political process. Entire industry can use services of D.C. based Executive Director and hardwood lobbyist. Industry more informed about policies and people representing them. Why form a national political action committee for the hardwood industry?

9. The HFPAC is a voluntary, nonpartisan action fund for members of the hardwood industry. Federal law prohibits companies from contributing corporate dollars to political campaigns. Any individual can contribute to the HFPAC. The HFPAC can only solicit donations from members of the Hardwood Federation, who have signed a solicitation authorization form. Federal law limits an individual’s contribution to the HFPAC during any calendar year to $5,000. Hardwood Federation PAC

10. Board determines which candidates to support with PAC funds Any association member contributing $5,000 or more to the Hardwood Federation administrative fund automatically gets a seat on the HFPAC Board HFPAC Board of Directors

11. Champion for issues that matter most to the hardwood industry Voting record on key issues to the hardwood industry Position on committees relevant to the hardwood industry Elect ability and financial need Hardwood companies located in the elected official’s or candidate’s voting district or state Criteria for contributions to candidates

12. 2004 Election Milestone $320,000 contributed to 195 hardwood friendly candidates in 2004 election cycle

13. Election 2004 – Scorecard

14. PAC challenge – increase $$ for 2006 Election Cycle Our opponents continue to raise more money 2006 Election Cycle

15. Association members develop issue papers to be considered by the entire Board for discussion and prioritization. Board adjusts the HF legislative agenda to ensure we can react quickly and effectively to emerging issues of importance to the health of the hardwood industry. Legislative Issues

16. FSC/ETI Bill halted retaliatory actions by EU against wood and also included specific timber tax initiatives. U. S. Forest Service funded two early warning systems located in North Carolina and Oregon to protect hardwood forests from emerging pests and disease. Halted the European Union’s proposed debarking standard on wood pallets by gaining a one-year extension on implementation of a law. 2004 Victories

17. Arbor Day HF sponsored Tree Planting with Senator Lugar

18. September 27 & 28, 2005 Rep. and Dem. Congressional Receptions Fall Legislative ConferenceMandarin Oriental Hotel

19. ESA Reform Pro-Hardwood Provisions in HFRA Elimination of Estate Tax Oppose LEED Building Standards Broad Tax relief for US Hardwood Industry Protect wood pallets from unreasonable trade restrictions Invasive Species WTO Review of FSC/ETI Bill Key Issues for 2005

20. Imports 2006 Farm Bill Emerging Issues

21. Headquarters now in heart of our nation’s Capitol Full time lobbyist – Grace Terpstra Your Voice in Washington

22. Lobbying CongressGrassroot contactsPAC contributionsDC – On-the-ground

23. Key HouseMembersRep. Richard Pombo (R-CA)Rep. Jerry Lewis (R-CA)Rep. Norm Dicks (D-WARep. Greg Walden (R-OR)

24. Key US SenatorsSen. Mike Crapo (R-ID)Sen. Conrad Burns (R-MT)Sen. Larry Craig (R-ID)Sen. Ron Wyden (D-OR)

25. Recasting the IssueWestern Forestry=Hardwood Forestry