2008 ANNUAL REPORT

From the Staff

Environment North Carolina

Dear Environment North Carolina supporter:

With a new pro-environment administration in Washington and fresh faces in Raleigh, we have an unprecedented chance for meaningful environmental progress. But the economic crisis looms large—increasing the temptation for policy makers to give in to nar-row special interests in the name of job creation.

Fortunately, you know as I do that jump-starting our economy couldn’t be more compatible with the protection of North Caro-lina’s environment. My staff and I are pressing this point now with members of Congress and the General Assembly. And our progress last year is making this task even easier.

Take global warming. In 2008, we authored a report showing that the Clean Cars Program—which would require new cars sold in North Carolina to be more efficient—would cut global warming pollution by 10 percent while saving consumers valuable dollars at the gas pump (page 5). At our urging, lawmakers commissioned a study of the reduction in global warming emissions and found similar results—setting the stage, we hope, for lawmakers to adopt the Clean Cars Program this year.

On the energy front, our work to help extend clean energy produc-tion tax credits in Congress will create jobs and boost spending. We advocated for 100 percent renewable energy and cutting our oil dependence in half (page 8). Even small progress towards this goal, according to our research, would create or sustain more jobs than the nation lost in 2008.

The nation’s economic crisis presents real challenges to our work. But thanks to your support, we’re poised to take advantage of our window of opportunity to build a clean energy economy, solve our planet’s climate crisis and preserve our natural heritage for future generations.

Sincerely,

Elizabeth OuztsState Director

Elizabeth OuztsState Director

Rob SargentSenior Energy Policy Analyst

Leslie MorrisonField Organizer

Margaret HartzellGlobal Warming

Advocate

Our parks and open spaces

Protection for hundreds of natural areas across the state, from the Uwharries to Hanging Rock, got a boost this year. North Carolina lawmakers approved $50 million in new funds for protecting the state’s parks and ecologically unique natural areas, along with $4 million for the protection of family farms.

Even with this needed increase, Environment North Carolina re-search shows an additional $200 million is needed for the state to meet its goal of conserving 1 million acres of forests, farmlands and other open spaces by 2010.

Our state’s existing conservation programs have preserved near-ly half a million acres of the state’s parks and natural areas since their inception over 20 years ago. But they have long struggled to keep pace with rapid development.

One step closer to 1 million acres

Page 2

Chimney Rock, N.C.

When it comes to global warming, North Carolina has a lot at stake. One way that we can act locally to slow climate change is to pass the Clean Cars Program, which will require new cars and trucks to pollute less. Fourteen states have already adopt-ed Clean Cars Programs, and it’s time for North Carolina to join them.

In 2008, Environment North Carolina took this message to law-makers, the media and to the public. With our partners, we host-ed forums in five cities that drew more than 200 citizens. Dozens agreed to send their lawmakers a video postcard, asking them to approve Clean Cars. Our citizen outreach staff talked to citizens across the state. Here in Raleigh, we convinced lawmakers to study the benefits of Clean Cars legislation for North Carolina. Thanks in part to our work, House lawmakers also approved a bill requiring state-owned vehicles to be more efficient, laying the groundwork for more progress in 2009.

Citizens rally for clean cars

Environment North Carolina

Stopping global warming

Charlotte-area activists call for clean energy solutions.

Page 4

Putting the Brakes on Global Warming

How the clean cars program will reduce global warming pollution in North Carolina

May 2008

According to “Putting the Brakes on Global Warming,” a May report from Environment North Carolina Research & Policy Center, our state could limit its contribution to global warm-ing over the next 15 years by implementing policies to reduce carbon dioxide emissions from cars and light trucks.

Global warming poses a serious threat to North Carolina’s future. Scientists project that average temperatures in North Carolina could increase by 8 F to 15 F over the next century if no action is taken to reduce global warming emissions. Warm-ing could cause thousands of square miles to flood and air qual-ity to worsen, increase damage from storms, and harm North Carolina’s economy, public health and environment in many other ways. Controlling the pollution that causes global warming from the transportation sector—and particularly cars and light trucks—is essential if North Carolina is to reduce its emissions and long-term impact on the climate.

The analysis showed that tailpipe standards would cut global warming pollution levels by 10 percent, while saving consum-ers’ money at the gas pump. The report release, attended by Clean Cars Program sponsors, Reps. Pricey Harrison and Grier Martin, gained coverage in news outlets across the state, includ-ing Raleigh’s NBC affiliate and the Charlotte Observer.

Research

Our rivers, lakes and streams

Environment North Carolina

State officials are finalizing their plan to protect one of the state’s last unspoiled waters: the Horsepasture River in Transylvania County.

Environment North Carolina petitioned state officials to give the river an “Outstanding Resource Water” classification, which will limit pollution into the river and require vegetative buffers that fil-ter pollutants. More than 1,000 Environment North Carolina activ-ists spoke out in favor of the plan.

Known for its spectacular waterfalls, the Horespasture River is one of only four rivers in North Carolina nationally recognized for its scenic beauty as a “Wild and Scenic River.” Rainbow Falls, on the Horsepasture River, has a spectacular 125-foot drop, draws hikers and sightseers, while trout and rare and endangered spe-cies attract ecologists and nature buffs.

Safeguards for Horsepasture River

Citizens attend Horsepasture River public hearing

In July 2008, lawmakers adopted strong new rules governing pol-luted runoff—the largest threat to North Carolina’s water quali-ty—for the state’s coastal counties. Environment North Carolina members sent hundreds of e-mails in support of the new rules, while our staff spent long hours negotiating and working with leg-islators. Known best for its pristine beaches, the Tar Heel coast is also characterized by inlets, sounds and tidal creeks. Bogue Sound and Stump Sound are home to mussels, clams and oysters, but runoff pollution has already permanently closed more than 56,000 acres of shellfish beds. The new rules replace 20-year-old regulations that had allowed nearly 75 percent of development near sensitive waterways to move forward without pollution controls.

Protecting tidal creeks and sounds

Cape Carteret, N.C.

Page 6

Clean energy

Environment North Carolina

We have enormous untapped power. In North Carolina and across America, we can harness the energy of the wind and sun to power our future and leave dirty, dangerous energy behind. In 2008, Environment North Carolina helped extend federal tax credits for clean energy, and called on state and federal leaders to support an ambitious goal: repower America with 100 percent clean electricity and cut our dependence on oil in half.

We gathered activists on the capitol lawn to support clean en-ergy. Congressmen Brad Miller and David Price joined us at our media release about the effects of global warming, made worse by our dependence on fossil fuels. Newspapers from Rocky Mount to Asheville reported on our platform. And North Carolin-ians demonstrated this fall that they are ready for a new energy future and a green economic recovery. Our work is still cut out for us in 2009—for transit alternatives, renewable energy solu-tions like solar power and more efficient buildings—but it is made easier by the groundwork we laid this year.

Wind is abundant on North Carolina’s Outerbanks.

The groundwork to repower North Carolina

Election 2008

Environmental progress at the federal level has all too often been blocked by just a handful of votes in the House and Senate and an administration openly hostile to the environment. That’s why Environment North Carolina endorsed, and worked to elect, Ba-rack Obama for president, Kay Hagan to represent North Caro-lina in the U.S. Senate, and Larry Kissell and Heath Shuler for U.S. House.

On Nov. 4, voters elected them all. Starting in the summer of 2008, we compiled and distributed reports comparing the can-didates’ records on key environmental issues. With the help of our members and supporters, we knocked on doors from Asheville to Fayetteville to Wilmington, asking voters to elect the pro-environment candidates that we endorsed. Thanks to the voters, we now have more allies in Congress and the White House.

Voters choose environmental champions

Page 8

Environtment North Carolina endorsed Barack Obama for president.

Environment North Carolina SupportersCitizen support is the cornerstone of Environment North Carolina and the En-vironment North Carolina Research & Policy Center. Thousands of North Car-olina citizens supported Environment North Carolina by making membership contributions in fiscal year 2008. The members listed below were particularly generous in backing the organization’s research and advocacy. Names that appear in italics denote Monthly Supporters. These members provide stabil-ity to the organization’s resources through our monthly giving program.

Development Committee—contributed $500 or more.Kicab Castanecla-Men • Dean Debnam • James Eakes • Tom Enmel • Robert Hogan • Nancy F. Holt • Jerry & Susan Jernigan • Lynn Kohn • Irene Lofstrom • Julia Love • Paul Meder • Frank Navarro • Douglas H. Phelps • Katherine Shea • Fred and Alice Stanback

Sponsors—contributed between $250 and $499.Thomas Adams • Diane Allen • Marcia Angle • Susheel Atree • Jeff Badgett • Michael Broadwater • Carl Broady • Don Brookshire • Charles J. Brown • Nina Butler • Hope Butterworth • Lynn Calder • Brandy Callahan • Ben Chapman • Richard Cook • Sara Cooper • Brian Creech • Janet Crotts • Michael Cunningham • Gina Defrank • Robert Devido • William Ewald • Frank Fee • Deborah Fields • David Freeman • Scott Fullagar • Alicia Gaul • Alexandra Gerend • William Gillespie • Carlton Gold-thwark • Michael Goy • Ronald Grim • John Hagan • Jeanne Hammer • Pamela & Brad Hemminger • Priscilla Wald & Joseph Donahue • Robert Kelly • Leigh Anne King • Richard Kinnaird • Jay Levy • Jeffrey Liebach • Frank Lorch • Nancy M. Mattox • Jennifer Mayo • Michael Monk • William Norcross • Devin O’Rourke • Peter Ouzts • Kaye Parks • Kaola Pheonix • Rebecca Pitts • Daniel Popham • Rita Proctor • Richard Rosenberg • E. Rusnak • Judith Sanford • Grant Scott • Rosemary Shaffner • Susan Sharpe • Debbie & Jim Sheegog • John & Diane Simon • Michelle Smith • Sharon Spray • Dan Stancil • Charles Stanley Jr • Erik & Maxine Stein • Rodger Strother • Rebecca Tate • Pam Van Dyk • Sallie Vaughn • R. Scott Walter • Christianna Williams • Stephanie Winfield • Brenda Wylie • Leonardo Zea

Environment North Carolina

Foundation SupportThe Environment North Carolina Research & Policy Center conducts research and public education on environmental issues. Contributions to the Environment North Carolina Research & Policy Center, a 501 (C) (3) organization, are tax-deductible.

The Environment North Carolina Research & Policy Center could like to thankthe following foundations for supporting our work in fiscal year 2008: Clay Foundation – East • Educational Foundation of America • Fred Stanback Donor Advised Fund of Foundation for the Carolinas • Julian Price Family Foundation • Mary Norris Preyer Fund • The Beldon Fund • Z. Smith Reyn-olds Foundation

Page 10

Financial InformationCharts reflect combined financial information for the environmental work conducted by Environment North Carolina, the Environment North Carolina Research & Policy Center and Environment North Carolina’s citizen out-reach programs.

Citizen Contributions 63% Foundation Grants 36%Other 1%

FY08

Program 73% Fundraising 18% Administrative 9%

FY08

Global Warming 32% Preservation 30% Clean Energy 22% Clean Water 16%

FY08

Photo CreditsCover: Shutterstock.com; (From top left) P. 1: Staff; P. 2 Ron Sutherland, istockphoto.com; P. 3: Andy Carlson, Cool Water Productions; P. 4: Staff; P. 5/6: Hanabal Khaing; P. 5: Staff; P. 6: scbluedevil; P. 7: istockphoto.com, Graham S. Klotz; P. 8: istockphoto.com, J. H. Grant; P. 9/10: Gary718; Back: istockphoto.com.

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