WESTERN HARDWOOD ASSOCIATION

Annual Meeting

June 27, 2005

Sunriver, Oregon

Topics

• Update on Hardwood Federation activities

• Hardwood Federation PAC

• Current Priority Issues

• Questions

Hardwood Industry Umbrella • 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

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

HF Structure • 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 Board of Directors • 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.

Hardwood Federation Partners American Forest & Paper Association (AF&PA)

Appalachian Hardwood Manufacturers, Inc. (AHMI)Appalachian Lumbermen's Club

Hardwood Distributor's AssociationHardwood 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 ClubNational Hardwood Lumber Association (NHLA)

National Wood Flooring Association (NWFA)NOFMA: The Wood Flooring Manufacturers Association

Pacific Coast Wholesale Hardwood Distributors AssociationPennsylvania Forest Products Association

Penn-York Lumbermen's ClubSouthern Cypress Manufacturers AssociationSouthwestern Hardwood Manufacturers Club

Western Hardwood AssociationWestside Hardwood Club 

Why form a national political action committee for the hardwood industry?

• 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.

Hardwood Federation PAC • 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.

HFPAC Board of Directors

• 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

Criteria for contributions to candidates

• 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

2004 Election Milestone

$320,000 contributed to 195 hardwood friendly candidates in 2004

election cycle

Election 2004 – Scorecard

# of HFPAC Candidates

Elected Defeated Victory %

195 187 8 96%Senate

CandidatesElected Defeated Victory %

19 15 4 79%

House Candidates

Elected Defeated Victory %

176 172 4 98%

2006 Election Cycle

• PAC challenge – increase $$

for 2006 Election Cycle

• Our opponents continue to

raise more money

Legislative Issues• 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.

2004 Victories • 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.

Tree Planting with Senator Lugar

• Arbor Day

• HF sponsored

Fall Legislative ConferenceMandarin Oriental Hotel

• September 27 & 28, 2005

• Rep. and Dem. Congressional Receptions

Key Issues for 2005• 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

Emerging Issues

• Imports

• 2006 Farm Bill

Your Voice in Washington

Headquarters now in heart of our nation’s Capitol

Full time lobbyist

– Grace Terpstra

Lobbying Congress

Grassroot contactsPAC contributions

DC – On-the-ground

Key HouseMembers

Rep. Richard Pombo (R-CA)Rep. Jerry Lewis (R-CA)Rep. Norm Dicks (D-WA

Rep. Greg Walden (R-OR)

Key US Senators

Sen. Mike Crapo (R-ID)Sen. Conrad Burns (R-MT)

Sen. Larry Craig (R-ID)Sen. Ron Wyden (D-OR)

Recasting the Issue

Western Forestry=Hardwood Forestry