2 Friends of the Earth ANNUAL REPORT 2009

Dear Friends,

The year 2009 marked the 40th anniversary ofFriends of the Earth U.S. Since our founding, Friendsof the Earth has defined successful environmentaladvocacy by winning important victories likeregulating the coal industry, fighting for aninternational agreement to eliminate the use of ozonedepleting chemicals, as well as implementing the first-ever regulations on global warming emissions in thestate of California.

But our victories do not stop at the nation’s borders.With member groups in 77 countries around theworld, Friends of the Earth International has becomethe world’s largest grassroots environmental network.On a daily basis, our network is fighting in Africa,South and Central America, Europe and Asia for theright to live in a healthy and just world.

With the impending threat of global climate chaos, itis going to take the entirety of our 40 years ofadvocacy knowledge as well as our internationalnetwork to set the United States and the world on theright path to solve global warming. We believe thatthis will take nothing less than a fundamental shift andtransformation in the way society contemplates,harnesses and uses energy. It will require rethinkingeverything from where we live and how we movearound to the food that we eat. It requires eliminatingthe use of fossil fuels and false energy choices likebiofuels and nuclear power, and encouraging the useof solar and wind energy, as well as simply usingless...less “stuff,” less energy, and less of the Earth’snatural resources.

In this annual report, you will read about Friends ofthe Earth’s success in helping usher in thistransformation. Nationally, we are pushing Congressand the Obama administration to offer global warmingsolutions that represent a true and aggressivecommitment to tackling the climate crisis. We haveurged the Obama administration to utilize its authorityand have opposed global warming bills in Congressthat fail to aggressively move the United States to a

carbon-free economy. In California, we helped draftand pass the world’s first law to reduce the carboncontent of fuel and under President Obama the EPAhas adopted this standard nationally. You will alsoread about Friends of the Earth’s efforts to ensurethat the economic stimulus bill creates jobs byincreasing investments in our cash-starved publictransportation systems, not in pollution-generatingnew roads. Our staff successfully fought the creationof a federally run nuclear reactor park in SouthCarolina, helped win a moratorium on burning coal inthe Congressional Power Plant in Washington, DC,and for the first time, forced the federal governmentto account for its overseas global warming pollution.

While global warming is the issue of our generation,there are newer forms of pollution that we are fighting.Through our work on nanotechnology and advancedgenetic engineering, we are working to preventcorporations from patenting and potentially pollutingthe very building blocks of life. This year, our work onnanotechnology led the European Union to implementthe first-ever requirement to label nanoparticles incosmetics. In our efforts to regulate pollution fromocean-going vessels and cruise ships we passed aban on vessel sewage discharge in California waters,and helped to shepherd a joint United States andCanadian effort to reduce shipping air emissions.

Our 40th anniversary also marks an excitingleadership transition at Friends of the Earth. After 15years of leading the organization and a lifetime ofdedication to environmental causes, BrentBlackwelder has retired.

In the year ahead, you can expect the new leadershipof Friends of the Earth to fight like hell to fulfill ourmission “to champion a healthy and just world.”Whether at the state, national or international level,we will continue to employ the type of aggressiveadvocacy that has been a trademark of Friends of theEarth since our founding. As one of the world’slargest, most cutting-edge, progressive environmentalorganizations our advocacy can and will literallyimpact millions of lives today and tomorrow.

Erich PicaPresident

Arlie SchardtChairman of the Board

Inspiring Energy & Climate Solutions

This year marked an invigorated debateover U.S. climate legislation, as well asintense activity at the global level leadingup to the critical United Nations climateconference in Copenhagen, Denmark.

Our campaigners working on both international anddomestic climate and energy issues were there everystep of the way to ensure that Congress passeslegislation that dramatically reduces greenhouse gaspollution, hastens our transition to clean energy,supports climate adaptation and clean energyproduction in developing countries, and createsmillions of green jobs. We were also out in force atinternational climate negotiating sessions from Bonnto Bangkok to Copenhagen, pushing the U.S. to leadthe world in forging equitable solutions to the climatecrisis. As the world’s biggest historical globalwarming polluter, and as a wealthy nation withconsiderable resources, the United States has aspecial responsibility to step up and take strongclimate actions. This year we:

• Pushed for real clean energy and pollutionreduction solutions to be integrated into economicrecovery legislation. Our “New Roads = NewPollution” campaign successfully shiftedtransportation investments in the economicrecovery bill away from new road projects andtoward smart transportation infrastructure,resulting in $17 billion for public transportation and$8 billion for high speed rail. We also stopped aSenate attempt to turn economic recovery

legislation into a bailout for the nuclear powerindustry, helping to strip up to $50 billion in loanguarantees for nuclear power from the bill. Ouranti-nuclear ad campaign effectively pressuredsenators to cut out the nuclear pork.

Cover Image: Thousands of Friends of theEarth International campaigners and volunteersfrom more than 20 countries demand ‘climatejusice’ in a peaceful, colorful march during UNclimate talks in Copenhagen. Photo credit:Christoffer Askman/FOEI

Real Solutions for Transformative Change 3

Michelle Chan, Senior International Policy Analyst, warns

Congress that Wall Street could game a carbon trading

system.

Our ad campaign against a nuclear industry bailout

helped strip costly loan guarantees from economic

recovery legislation.

Congress Wants to Risk Billionson Nuclear Reactors

4 Friends of the Earth ANNUAL REPORT 2009

• Advanced international development and humanrights in the fight against global warming bysecuring international climate adaptation andclean technology funding in the climate andenergy legislation that passed out of the House inJune 2009 and in the draft Senate bill introducedin September 2009. We hosted key civil societyrepresentatives from the global south, such asMeena Raman of Friends of the EarthInternational, Martin Kohr of Third World Networkand indigenous leader Vicky Tauli-Corpuz, inWashington, DC to advance equitable globalsolutions to climate change.

• MEDIA: From Bonn to Bangkok to Copenhagen,our international team blogged their way throughinternational climate negotiations, keeping U.S.audiences up-to-date on the latestdevelopments. Our videos from Bonn andBangkok alone gave thousands of viewers theopportunity to get an insider’s perspective on theatmosphere and stakes of the talks. You cancheck out our Copenhagen reports at:www.foe.org/copenhagen.

• Influenced the debate on climate change legislationby exposing the risk of Wall Street manipulationin a carbon trading system. Our report,Subprime Carbon? Re-thinking the world’s largestnew derivatives market (www.foe.org/subprimecarbon),coupled with Michelle Chan’s testimony beforeCongress, helped ensure that the House climatebill, although weakened by loopholes and

giveaways to corporate polluters, took intoaccount lessons learned from the financial crisisand the cautionary tale they tell for a proposedcap-and-trade plan.

• Sounded the alarm about how the House climateand energy bill passed in June would fail to delivereffective solutions to global warming and wouldactually take us backwards by gutting the CleanAir Act. We exposed the truth about the bill’smassive loopholes and polluter giveaways—not tomention opportunities for Wall Street manipulation—through ad campaigns, testimony beforeCongress, our “Just the Energy Bill” animatedvideo and activism tool, and media coverage intop national publications.

• Collaborated with other groups to build a powerful,diverse coalition of more than 300 social justice,human rights, faith and progressive organizations(www.foe.org/letter-senator-boxer) who know we can—and urgently must—do better than the climateand energy bill that passed the House. Our pushfor a stronger Senate bill resulted in a key victory:the bill that has advanced farthest to date in theSenate protects the Clean Air Act, the bestexisting tool we have to cut greenhouse gaspollution. We continue our fight to keep it thatway.

• MEDIA: We reached out to members ofCongress, important stakeholders and policymakers more than 32,000 times through onlineaction alerts. George Will’s op-ed denying climate

Kate Horner, Climate Change and Energy Policy Analyst,

reports from Bangkok at a protest for indigenous

peoples’ rights.

Our “Just the Energy Bill” video, inspired by

Schoolhouse Rock!, educated the public about how

corporate polluters undermined climate legislation in the

House. Watch it at www.foe.org/school-senate-video.

Real Solutions for Transformative Change 5

change brought more than 7,000 letters to theWashington Post Ombudsman. Verizon Wireless’ssenseless sponsorship of a pro-coal, anti-environment rally sparked more than 4,500 peopleinto sending messages to Verizon Wireless’s CEO.

The international drive to substitute fossil fuels withbiofuels is driven in large part by an assumption thatbio-based energy is sustainable for the planet.However, biofuels can create significant environmentalharm. Large-scale agricultural production of corn andother crops used for biofuels often involves massivefertilizer inputs, use of large quantities of water, and

soil erosion. Also, rather than helping to curb globalwarming, the use of biofuels can actually exacerbateglobal warming by causing deforestation and thedestruction of other natural ecosystems. We areproviding specific policy recommendations thatsupport only those biofuels that have a provenenvironmental benefit. This year we:

• Engaged thousands of e-activists who respondedto our call to vote for the biggest biofool as a partof our inaugural “Biofools Day”(www.biofoolsday.org). Activists chose Hugh Grantof agriculture giant Monsanto for his insistence,despite evidence to the contrary, that biofuels aregood for the environment.

• Released a report titled A Boon to Bad Biofuels(www.foe.org/energy/biofuels-subsidies) with

The House climate bill would reward the dirty coal industry

with billions of dollars in giveaways — and undermine our

power to regulate its pollution under the Clean Air Act.

We stood naked with Avaaz Action Factory to protest

lobbyists at Bonner & Associates for their anti-climate

letter forgery scandal this summer. Communications

intern Kim Huynh third from right. Photo credit: Avaaz

DC Climate Action Factory

Activist draws attention to the biofuels threat at a

climate justice mobilization during climate talks in

Bangkok. Photo credit: Ronnie Hall

Earthtrack, exposing the way that tax credits andthe Renewable Fuels Standard subsidize thebiofuels industry. We discovered that the biofuelsindustry will receive $420 billion in subsidiesbetween 2008 and 2022; this value could morethan double, to $1 trillion, if biofuels productioncontinues to increase.

• Advocated in favor of including greenhouse gasemissions from deforestation and other forms ofland use change caused indirectly by increasedbiofuels production in the life cycle accounting forbiofuels. We stopped efforts to introduce or passbad appropriations amendments that would haveremoved funding from EPA to assess and regulatethese emissions. More than 9,000 of our e-activists responded to our call for help and wroteletters to demand that their senators supportglobal warming and land protections in biofuelspolicy.

Now in its 14th year, the DC EnvironmentalNetwork continues to spearhead campaigns toprotect and restore Washington, DC’s urbanenvironment and transform the neighborhoods andcommunities of our nation’s capital into models ofsustainability. On the energy front we work with acoalition of more than 50 local and nationalorganizations to build local infrastructure to shift theregion towards greater energy efficiency and use ofcleaner, renewable fuels. This year we:

• Passed legislation to limit the capital’s impact onglobal warming by creating an Energy EfficiencyUtility with the aim of reducing carbon dioxideemissions produced by buildings by 70 percent.

• Successfully opposed DC Mayor Adrian Fenty’sfirst attempt to appoint unqualified candidates tothe DC Public Services Commission, which playsa key role in addressing utility and energyissues.

• Brought together key Pentagon officials andregional stakeholders to launch a Solar FuelStation project at the Pentagon.

• Launched a campaign to stop the burning of coalat the Congressional Power Plant and won amoratorium on coal burning at the plant for therest of 2009 as the architect of the capitol worksto convert one coal boiler to burn gas, a less dirtyfuel. As part of this campaign we worked with theDC Council and Mayor Fenty to limit the coal plantpermit to the burning of cleaner fuels.

The Southeastern Nuclear Campaign is leadingthe nationwide effort to oppose construction of newnuclear reactors, particularly those in South Carolina

Won a key victory in a federal lawsuit forcingthe U.S. Export-Import Bank (Ex-Im) and theOverseas Private Investment Corporation (OPIC)to address the global warming implications oftheir overseas financing activities. The suit,brought by Friends of the Earth, Greenpeaceand several U.S. cities, claimed that the twoU.S. agencies financed fossil fuel projectswithout assessing whether the projectscontributed to global warming or impacted theU.S. environment, as they were required to dounder the National Environmental Policy Act.Under the settlement, Ex-Im will begin takinggreenhouse gas emissions into account inevaluating fossil fuel projects and create acarbon policy, and OPIC will reduce greenhousegases associated with projects by 20 percentover the next ten years. Both agencies willprovide more financing for renewableenergy. The suit opened up the courthousedoors for the first time to victims injured byclimate change.

6 Friends of the Earth ANNUAL REPORT 2009

Palm oil plantations cut up the Indonesian countryside,

exacerbating deforestation and contributing to global

warming.

and the southeastern region. We are also the solewatchdog over the Department of Energy’s SavannahRiver Site (SRS), a key Department of Energy (DOE)nuclear and plutonium processing facility located onthe South Carolina-Georgia border. We work closelywith the Alliance for Nuclear Accountability, theumbrella organization working with groups monitoringDOE sites and campaigning on DOE issues inWashington, DC. This year we:

• Demanded that two new nuclear reactorsproposed by South Carolina Electric & Gas includea plan for energy conservation and efficiency. TheSouth Carolina Public Service Commission (PSC)ruled in favor of the project to build the reactors;however we continue to fight at the stateSupreme Court level. Our appeal to the SouthCarolina Supreme Court asks that the courtreverse the PSC decision to build the reactors andalso rule against the Construction Work inProgress law, which essentially passes onconstruction costs to consumers.

• Rallied public interest groups in Maryland, SouthCarolina, Georgia and Texas to stop DOE fromissuing loan guarantees that would subsidize

new reactor projects with up to $18.5 billion intaxpayer money. Read the letters here:www.foe.org/energy/fighting-nuclear-reactors-southeast.

• Blocked dangerous nuclear parks at theSavannah River Site and in Portsmouth, OH,challenging the DOE’s plans to construct nuclearreprocessing plants and spent fuel storage areason public lands. We forced DOE to cancel theleasing of 2,700 acres on the South Carolina-Georgia border, and helped stop a giveaway ofsurplus land to Areva and Duke Energy for nuclearreactors at a Portsmouth, OH site.

President Erich Pica and Greenpeace’ s Mary Sweeter on

the Bill Moyers Journal in July talking about the flaws in the

House climate and energy bill. Photo credit: Robin Holland

Real Solutions for Transformative Change 7

Capitol Climate

Action activists

march past the

Capitol Power Plant

in Washington, DC,

March 2, 2009.

Photo credit: Mike

Theiler/Greenpeace

The Alliance for Nuclear

Accountability recognized our

Southeastern Nuclear Campaign

Coordinator Tom Clements as

“Grassroots Activist of the Year” for

his leadership for more than 20

years on issues related to nuclear

power and nuclear non-proliferation.

Friends of the Earth’s Clean Cars Program isleading vital efforts nationwide to achieve aggressivereductions in greenhouse gas pollution from vehiclesby promoting sustainable, alternative fuels andvehicles, with an emphasis on plug-in electric vehiclesand vehicle charging stations that use renewableenergy. The state of California has historically been amodel for cutting-edge environmental policies that areoften adopted across the nation. Friends of the Earthis actively leveraging California’s clout, leading theway in developing policies that will reducegreenhouse gas emissions from vehicles. This yearwe:

• Teamed up with coalition partners to pass theworld’s first Low Carbon Fuel Standard. Thisstandard requires a 10 percent reduction in thecarbon intensity of all fuels sold in California by2010, which will prevent widespread use of thedirtiest fuels – such as tar sands, oil shale, andcoal-based fuels – and will also increase the use ofalternative, non-petroleum fuels. Our team wentone step further to demand that these alternativefuels meet critical sustainability safeguards so thatthe charge to promote new fuels doesn’t simplycreate a different set of environmental and socialproblems.

• After years of hard work drafting, passing,defending, and promoting the California CleanCars Law (the world’s first law to reducegreenhouse gas pollution from vehicles), theObama administration’s Environmental ProtectionAgency adopted California’s law as a minimumstandard for all U.S. cars and light duty trucks.

• Drove millions in corporate and governmentinvestment towards promoting sustainable,alternative fuels through participation in California’sAlternative Fuel & Vehicle Funding Program.The strong regulatory standards we helped draftensure that public funds are used to foster thecleanest, most environmentally and socially soundalternative fuels.

• After a decade of intensive work to promote plug-in electric vehicles, our effort has paid off – thisyear ten major car manufacturers announcedplans to bring plug-ins to the market between2010 and 2012. Our next step is to makeNorthern California the electric vehicle capital ofthe world by making it easier for governmentagencies and consumers to purchase and useplug-in electric cars.

• Launched the Bay Area Solar Fuel StationInitiative to promote solar fuel stations, which canproduce reliable, domestically produced,renewable fuel for plug-in electric vehicles, withnearly zero lifecycle emissions. As a result, theCalifornia Public Utilities Commission andnumerous municipalities are taking steps to installand promote favorable policies for solar fuelstations. We responded to growing demand forinformation on solar fuel stations by designing aneasy-to-use calculator that provides municipalitiesand businesses with quick information on thebenefits and costs of solar fuel stations, includingthe amount of greenhouse gas emissions avoided,gallons of gasoline displaced, total costs, andpayback periods per station. It is available onlineat: www.foe.org/transportation/solar-fuel-station-calculator.

8 Friends of the Earth ANNUAL REPORT 2009

Envision Solar’s Solar Grove at Kyocera Headquarters,

San Diego, CA.

Real Solutions for Transformative Change 9

Our International Program work onfinance and trade is rooted in the beliefthat, for the poorest countries on ourplanet, the global economic systemhas been an underlying cause of

environmental degradation and disruption of people’slivelihoods. We work to change unjust global financialinstitutions and trade rules. This year we:

• Supported the Gabonese NGO Brainforest inrallying civil society opposition to the Belinga mineproject, an environmentally and socially risky ironore mine under development in one of the world’slargest pristine tropical forests. The sole financier,the China Export-Import Bank, admitted that it wasthis opposition, and in particular a letter we helpedBrainforest draft, that led it to put the project onhold pending verification of environmental impactassessments.

• Launched a campaign with Friends of the EarthInternational, Oil Change, and Platform London tohold Shell accountable for its human rights,climate, and gas flaring abuses in Nigeria. Weproduced ads exposing Shell’s gas flaring andreleased a report proving that Shell is the world’smost carbon-intensive oil company. Our activists

converged on New York City in June for a rally todenounce Shell’s complicity in the murder of KenSaro-Wiwa and eight other non-violent Nigerianactivists in 1995. After 13 years of legal battles,the deaths of these activists who opposed Shell'sgas flaring and environmental devastation of theirhomeland have been recompensed. Shell wasforced to pay $15.5 million, including $5 million for

Putting People Before Profits

Friends of the Earth took part in a rally on the steps of a

New York City courthouse to denounce Shell.

Former President and Special Advisor Brent

Blackwelder gave a riveting speech about the Honduran

coup that was posted on YouTube and viewed more

than 450 times.

Adina Matisoff, China Sustainable Finance Campaigner,

witnessed the impact of mining on people and the

environment in Mongolia.

Friends of the Earth International pushes rich countries

to repay their climate debt at the Bangkok

climate talks.

a trust to benefit communities in Ogoni territory inNigeria, the homeland of the executed activists.

• Our China Sustainable Finance program continuedto enhance the capacity of civil society activists toaddress the environmental and social impacts ofinvestments by Chinese banks and oil companiesin their countries. We developed financialadvocacy training materials to help Chineseactivists evaluate bank environmental policies, metwith activists in Mongolia to report on thedegradation caused by mining projects, andachieved the first meeting between a majorChinese corporation and civil society activistsconcerned about oil projects in Burma.

• Reported on the environmental degradation andsocio-cultural issues arising from the expansion ofmining in Mongolia. Campaigner Adina Matisofftraveled to Mongolia to meet with environmentalactivists and help them address concerns of Chineseinvestment in their country—read about it athttp://action.foe.org/t/5852/content.jsp?content_KEY=4702.

• MEDIA: We are connected to Friends of the EarthInternational, Friends of the Earth England, Walesand Northern Ireland, Milieudefensie (Friends of theEarth Netherlands) and Young Friends of the EarthEurope through our YouTube page, where we helpeach other extend our reach and visibility.

• Advanced a progressive vision for U.S. tradepolicy by working with coalition partners tosupport the Trade Reform, Accountability,

Development and Employment (TRADE) Act, whichsets down principles for future trade agreementsthat promote sustainable development, worker andhuman rights, and corporate accountability.Meanwhile we stopped the destructive U.S. freetrade agreements with Colombia and Panama fromcoming to a vote in Congress.

• Pressured the international finance institutionsto stop subsidizing dirty fossil fuel projects.Our report released with Oil Change International,the Institute for Policy Studies, and Campagna perla Riforma della Banca Mondiale argued that the

Former President and Special Advisor Brent

Blackwelder helps to expose the World Bank’ s

greenwashing ploy.

10 Friends of the Earth ANNUAL REPORT 2009

Real Solutions for Transformative Change 11

World Bank's track record disqualifies it frommanaging clean technology transfer and climateadaptation funds — read the report atwww.foe.org/Climate_Investment_Funds/DirtyIsNewCleanReport.pdf.

The DC Environmental Network (DCEN) strives toensure that economic planning in the District ofColumbia not only serves long-term goals ofenvironmental sustainability, but also ensures accessto basic human needs and good jobs for the city’spoorest residents. This year we:

• Launched a Green Jobs Initiative in conjunctionwith groups such as Interfaith Power & Light,Service Employees International Union, MetroLabor Council, DC Fiscal Policy Institute and otherstakeholders. DCEN is guiding discussions todevelop a long-range initiative to improve existingworkforce development programs and create acommunity college in DC that would lead the wayin connecting the city’s low-income residents togreen jobs.

Our Health and EnvironmentCampaigner Ian Illuminato holds aposition as a lead expert onnanotechnology worldwide, providingindustry guidance on nanotech

cosmetics issues, speaking to a global audiencethrough BBC World Service Radio and other mediaabout nanotechnology and safety, and organizing civilsociety’s precautionary stance on the issue. Also asa part of our emerging technologies program, wework to promote a cautionary position on syntheticbiology, genetic technologies and human cloning,because scientific research should benefit humanity,not put it at risk. This year we:

• Released a report warning of the threat to publichealth from nano-silver, an extreme germ killerthat kills helpful as well as harmful bacteria, andpublished a follow-up report on nanomaterials insunscreens. The reports can be found at: www.foe.org/healthy-people/nanosilver and:www.foe.org/healthy-people/nanotechnology-personal-care-products.

• Convened a second successful teach-in onsynthetic biology, bringing together 80participants from civil society groups to develop aplan for public engagement and policy work and asynthetic biology code of ethics for industry andresearch.

• Expanded the list of signers to the Compact forSafe Cosmetics to more than 1,000 companiesthat have agreed to remove carcinogens,reproductive toxins, and other chemicals ofconcern from their products, while addingnanomaterials to this list of unsafe ingredients.

• Released a list of more than 100 food productsand packaging — including Miller Lite beerbottles and ToddlerHealth, a nutritional drinkpowder for infants — that use nanoparticles ina report publicized via our international network inEurope, Australia and Germany. Subsequently wesubmitted more than 3,000 public comments tothe FDA in favor of regulation of nanomaterials infood. The report, Out of the Laboratory and OnTo Our Plates: Nanotechnology in Food andAgriculture, is at www.foe.org/healthy-people/nanofood-and-nano-agriculture.

Keeping People Safe and Healthy

12 Friends of the Earth ANNUAL REPORT 2009

The Clean Vessels Campaign is cleaningup the cruise industry, protecting marinesanctuaries, and reducing air and waterpollution from ocean-going vessels. Ourteam also works on a local level to reduce

vessel pollution in the Pacific Northwest, including atthe Port of Seattle. After all, the environment is foreveryone, and a healthy and just world requires cleanair and water. This year we:

• Demanded that the EPA update the CleanWater Act’s 30-year-old standards governingsewage dumping from large ships. We asked EPAto revise the standards in light of the availability ofmodern sewage treatment systems.

• Ruffled cruise industry executives’ feathers withthe first-ever Cruise Ship Environmental ReportCard (www.foe.org/cruisereportcard), which grades10 cruise lines and 105 cruise ships operating inthe U.S. on three criteria: sewage treatmenttechnology, air pollution control, and water qualitycompliance in Alaska – the only state in the U.S.that monitors and reports on cruise shipdischarges. This report card empowers cruise-goers to choose the cleanest cruise available,based on cruise lines’ environmental records.

• Introduced national cruise ship legislation thatwould establish a ban on sewage, gray water, andoily bilge water discharges within 12 miles of U.S.shores and implement strong pollution limits fordischarges beyond 12 miles.

• Nine years and two court battles after we firstdemanded that the EPA improve air pollution limitsfor large ships, in August the agency finallyproposed cleaner air pollution standards forocean-going vessels. If finalized, the rules willreduce harmful pollutants by 80 percent or moreby 2030, preventing between 13,000 and 33,000premature deaths.

• Secured a strong air pollution regulation requiringships traveling within California waters (out to 24nautical miles) to switch to cleaner fuel,eliminating 15 tons of diesel exhaust per day andachieving an 83 percent reduction in particulateemissions by 2012. This rule will reduce cancer

risk and prevent 3,600 premature deaths between2009 and 2015.

• Helped pass International MaritimeOrganization (IMO) standards for ocean-goingships that will significantly reduce harmful airpollution emissions from foreign vessels using ourwaters. The rule was prompted in part by oursuccess establishing strong state vessel airpollution standards and pushing for a strongnational standard.

• Worked with EPA and other coalition partners toshepherd a joint U.S. and Canadian EmissionControl Area (ECA) application through the IMO.If approved, in 2010 the ECA will jump-startprotections against harmful vessel air pollution –starting in 2012, more than seven years earlierthan the current general IMO regulations require.

• Initiated passage of a California law that will extendCalifornia’s landmark ban on vessel sewagedischarges from cruise ships in all state watersthrough 2014.

• Rescued California’s National MarineSanctuaries from pollution by pressuring theNational Oceanic and Atmospheric Administrationto ban cruise ship and other large vesseldischarges of sewage and gray water withinCalifornia Marine Sanctuaries.

• Stopped the Port of Seattle from releasing PCB-laden dredge spoils into the Puget Sound, instead

Protecting Our Air & Water

Garibaldi swim through a forest of kelp in the Channel

Islands National Marine Sanctuary and National Park.

convincing the Port to safelydispose of these harmfulpollutants in upland facilities.

• Advocated installation ofshore-side electrical powerat a new $120 million cruiseterminal in the Port of Seattle.Certain cruise ships must nowplug in to shore-side electricity orburn only cleaner fuel when in portto reduce serious port-side vessel airpollution.

• Convinced Washington State to pass afinancial responsibility measure that would requireindustry to pay for maintenance of an importantemergency response tug, ensuring that the NeahBay tug continues to operate year-round in one ofthe busiest commercial shipping lanes on the U.S.west coast, aiding ships in distress and preventingnumerous, disastrous oil spills and otheremergencies.

The DC Environmental Network (DCEN) leads avariety of campaigns and projects aimed at improvingthe quality of air and water in the Washingtonmetropolitan region to make it more livable forresidents. We strive to promote public health andwelfare by cleaning up the urban environment of ournation’s capital city and restoring the region’s manycreeks, rivers and parks. This year we:

• Initiated a new restoration effort of the heavily-polluted Anacostia River to make it fishable andswimmable for people. DCEN helped securepassage of the Anacostia River Cleanup andProtection Act of 2009, which places a 5-cent feeon disposable carryout bags in order to curb theiruse and fund environmental cleanup, reclamation,and restoration efforts on the Anacostia River. The

law targets plastic bags because thesebags account for as much as 40percent of the trash found in andaround the river.• Challenged appeals by the city’sWater and Sewer Authority toundercut nitrogen limits designed tohelp restore area rivers and creeks,

which in turn sparked the District’simplementation of a stormwater

enhancement package to curb theamount of polluted stormwater that

enters our rivers and creeks. • Stopped the Maryland Department of the

Environment from giving out permits that wouldallow pollution discharges into the storm drainsystem that empties into area rivers. An alliance ofenvironmental groups including Friends of the Earthused the courts to challenge these permits, whichwould disregard Clean Water Act standards.

• Achieved a key victory on the path to greeninggovernment with the resignation of Water andSewer Authority General Manager Jerry N.Johnson in the face of continuing criticism of hisagency’s environmental record over the lastdecade by Friends of the Earth and others. Mr.Johnson, whose decisions Friends of the Earthhad challenged successfully through litigation –and who faced increasing pressure after his poorhandling of the excessive lead contamination in thecity’s tap water – had been a major obstacle inefforts to clean up the city’s tainted drinking waterand restore the Anacostia River.

Real Solutions for Transformative Change 13

Born in 1986, K 21 "Cappucino" passes by a Washington

State Ferry on its way to Sidney British Columbia,

underscoring the importance of working bilaterally with

Friends of the Earth Canada — for whales and pollution

do not abide by borders. Photo credit: © Fred Felleman

On October 1st, Friends of the Earthcelebrated our 40th Anniversary,introduced Erich Pica as our newpresident, and honored Dr. BrentBlackwelder’s retirement. More than

250 friends, supporters, and environmental pioneersgathered at House of Sweden in Georgetown to helpus raise more than $68,000 in honor of BrentBlackwelder’s decades of leadership.

The evening included a cocktail reception and apresentation from the renowned artist JohnAlexander, who created a commemorative Friends ofthe Earth 40th Anniversary poster. The poster isavailable for purchase online at www.store.foe.org.

For information on upcoming events or ways in whichyou can support Friends of the Earth, please contactHillary Blank at 1-866-217-8499 ext. 219 or e-mailhblank@foe.org. A gift to Friends of the Earth willsupport quick action to promote clean energy,advance solutions to global warming, protect peoplefrom toxic and new, potentially harmful technologies,and promote smarter, low-pollution transportationalternatives.

Thank You For Supporting Our 40th Anniversary

Friends of the Earth’s new president, Erich Pica, speaks

to the crowd at the event.

Sponsors

David E. BoniorBracy Tucker Brown &

ValanzanoJayni & Chevy ChaseLynne Cherry, Author &

FilmmakerHarriett CrosbyEllen Dorsey and Richard

MottLouise Dunlap & Joe

BrowderEarthjusticeMarion EdeyDan & Bunny GabelJeff GlueckMike HerzPaul & Ellen Hoff

Russell LongLeague of Conservation

Voters Avis Ogilvy MooreRick Morgan & Arlene

RodenbeckThe Curtis and Edith Munson

FoundationMarcia Rodgers & Garrett

LoubeMarie RidderAnn RooseveltSacharuna FoundationArlie SchardtRobert SmytheJane & Daniel Solomon, The

Woodbury FundThe Summit Fund of

WashingtonTina Weaver, CBRE

Brent Blackwelder with the artist John Alexander and

Friends of the Earth board member and sponsor Jayni

Chase.

14 Friends of the Earth ANNUAL REPORT 2009

Real Solutions for Transformative Change 15

Nine-time Grammy Award winning singerand songwriter and Rock and Roll Hallof Fame inductee, Bonnie Raitt, is asknown for her lifelong commitment tosocial activism as she is for her music.

She has long been involved with the environmentalmovement and has been especially active inpromoting sustainable energy and utilizing herconcerts to raise funds for national and grassrootsnon-profit groups. On her 2009 BonTaj Roulet Tour,in 34 concert dates, The BonTaj Collective ActionFund raised over $200,000 to benefit groups workingon Safe & Sustainable Energy, EnvironmentalProtection, Social Justice & Human Rights, andBlues/Music Education. On her 2002 Summer Tourand going forward ever since, she initiated GreenHighway, a traveling eco-village providing informationto concert-goers about alternative energy solutionssuch as solar and wind power, in addition tocoordinating green backstage activities includingBioDiesel in the tour's trucks and buses.

Bonnie is a founding member of MUSE (MusiciansUnited for Safe Energy), NukeFree.org, and theRhythm & Blues Foundation. In 1995, she helpedestablish the Bonnie Raitt Guitar Program, whichprovides free guitar lessons to children in over 180Boys and Girls Clubs around the world.

Bonnie supports Friends of the Earth, in part, for itsuncompromising approach to activism, including acommitment to bring legal action against risky andcostly nuclear reactors being pushed by electricityutilities in South Carolina, ground zero for new nuclearprojects. In conjunction with those efforts againstnew reactors, Friends of the Earth is leading the pushfor development of policies in support of a cleanenergy future.

With the help of supporters like Bonnie Raitt, Friendsof the Earth has achieved a number of successes in2009, including an effort against the Department of

Energy’s (DOE) behind-the-scenes initiative to pursuea subsidized nuclear “energy park” at the SavannahRiver Site in South Carolina and the Piketon site insouthern Ohio. In August, because of unrelentingefforts by Friends of the Earth, DOE caved in to publicpressure and canceled its plans to lease the land atthe Savannah River Site. Friends of the Earth willremain vigilant to efforts by the nuclear industry toturn the facility into the nation's radioactive spent fuelstorage and reprocessing site.

In The Spotlight: Bonnie Raitt

16 Friends of the Earth ANNUAL REPORT 2009

Financials

Balance SheetsJune 30, 2009 June 30, 2008

–––––––––––––––––––––––––––––––––––––––––––––––––––––––– ––––––––––––––––––––––––––––––––––––––––––––––––––––––––Unrestricted UnrestrictedOperating Temporarily Operating Temporarily

Fund Restricted Total Fund Restricted Total––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Assets

Current assets:Cash and cash equivalents - $1,471,866 $1,471,866 $4,461 $796,391 $800,852Accounts receivable:

Grants, contributions and bequests $266,463 - 266,463 89,839 - 89,839Other 36,152 - 36,152 77,519 - 77,519

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total accounts receivable 302,615 - 302,615 167,358 - 167,358

Due from Friends of the Earth (Action), Inc. 59,403 - 59,403 45,860 - 45,860Due (To) From Funds (320,314) 320,314 - - - -Promises to give, current portion - 430,510 430,510 - 849,813 849,813Prepaid expenses and other assets 97,057 - 97,057 54,258 - 54,258

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total current assets 138,761 2,222,690 2,361,451 271,937 1,646,204 1,918,141

Fixed assets:Furniture and equipment 809,822 - 809,822 741,709 - 741,709Less accumulated depreciation and amortization 712,759 - 712,759 662,167 - 662,167

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total fixed assets 97,063 - 97,063 79,542 - 79,542

Other assets:Promises to give, net of current portion - 30,000 30,000 - 25,000 25,000Pooled income fund, at market value - 1,881 1,881 - 6,327 6,327Charitable gift annuity, at market value 67,294 - 67,294 94,991 - 94,991Deposits 30,979 - 30,979 32,203 - 32,203

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total other assets 98,273 31,881 130,154 127,194 31,327 158,521

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total assets $334,097 $2,254,571 $2,588,668 $478,673 $1,677,531 $2,156,204

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––

Liabilities and Net AssetsCurrent liabilities:

Accounts payable and accrued expenses $114,575 - $114,575 $162,218 - $162,218Accrued leave 116,490 - 116,490 100,329 - 100,329Capital lease obligation 10,428 - 10,428 - - -

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total current liabilities 241,493 - 241,493 262,547 - 262,547

Other liabilities:Capital lease obligation 29,893 - 29,893 - - -Deferred revenue - pooled income fund - 55 55 - 703 703Deferred rent 7,682 - 7,682 7,412 - 7,412Charitable gift annuity liability 42,563 - 42,563 45,940 - 45,940

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total other liabilities 80,138 55 80,193 53,352 703 54,055

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total liabilities 321,631 55 321,686 315,899 703 316,602

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––

CommitmentsNet assets:

Unrestricted 12,466 - 12,466 162,774 - 162,774Temporarily restricted:

Operating fund - 2,056,095 2,056,095 - 1,478,407 1,478,407Reserve fund - 145,000 145,000 - 145,000 145,000Endowment fund - 53,421 53,421 - 53,421 53,421

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total net assets 12,466 2,254,516 2,266,982 162,774 1,676,828 1,839,602

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total liabilities and net assets $334,097 $2,254,571 $2,588,668 $478,673 $1,677,531 $2,156,204

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––

Real Solutions for Transformative Change 17

Statements of Activities For the Years Ended June 30,

2009 2008–––––––––––––––––––––––––––––––––––––––––––––––––––––––– ––––––––––––––––––––––––––––––––––––––––––––––––––––––––Unrestricted UnrestrictedOperating Temporarily Operating Temporarily

Fund Restricted Total Fund Restricted Total––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Revenue

Grants, Bequests and Member Contributions $ 1,387,548 $ 3,322,491 $ 4,710,039 $ 1,262,791 $ 2,472,718 $3,735,509Investment Income (12,443) - (12,443) 8,382 - 8,382Rental Income 56,921 - 56,921 55,209 - 55,209Mailing list sales 6,785 - 6,785 12,244 - 12,244Administrative fees 37,575 - 37,575 130,168 - 130,168Other 146,743 - 146,743 126,395 - 126,395Net Assets Released from Restrictions 2,744,803 (2,744,803) - 2,400,973 (2,400,973) -

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total Revenue 4,367,932 577,688 4,945,620 3,996,162 71,745 4,067,907

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––

ExpensesProgram Expenses:

Domestic 1,204,874 - 1,204,874 986,713 - 986,713International 927,165 - 927,165 880,609 - 880,609Bluewater Network 653,241 - 653,241 582,495 - 582,495Outreach 925,871 - 925,871 829,475 - 829,475Membership 96,981 - 96,981 83,366 - 83,366

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total Program Expenses 3,808,132 - 3,808,132 3,362,659 - 3,362,658

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––

Supporting Expenses:Management and General 337,941 - 337,941 350,806 - 350,806Fundraising 372,167 - 372,167 292,143 - 292,143

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total Supporting Expenses 710,108 - 710,108 642,949 - 642,949

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Total Expenses 4,518,240 - 4,518,240 4,005,608 - 4,005,608

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––

Change in Net Assets (150,308) 577,688 427,380 (9,446) 71,745 62,299Net Assets - Beginning of Year 162,774 1,676,828 1,839,602 172,220 1,605,083 1,777,303

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––Net Assets - End of Year $ 12,466 $ 2,254,516 $ 2,266,982 $ 162,774 $ 1,676,828 $ 1,839,602

––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– ––––––––––––––––– –––––––––––––––––

For the year ended June 30, 2009:

Friends of the Earth (ISSN: 1054-1829) is published quarterly by Friends of the Earth, 1717 Massachusetts Ave., NW, Suite 600, Washington,DC 20036-2008, phone 202-783-7400, fax 202-783-0444, e-mail: foe@foe.org, website: www.foe.org. Annual membership dues are $25,which include a subscription to Friends of the Earth. The words “Friends of the Earth” and the FoE logo are exclusive trademarks of Friendsof the Earth, all rights reserved. Requests to reprint articles should be submitted to Lisa Matthes at lmatthes@foe.org. Periodicals postagepaid at Washington, DC.

Our Mission: Friends of the Earth defends the environment and champions a healthy and just world.

Board of DirectorsArlie Schardt, Chair; Clarence Ditlow, Vice Chair; MarionEdey, Secretary; David Zwick, Treasurer; Jayni Chase;Harriett Crosby; Dan Gabel; Jeffrey Glueck; Mike Herz;Douglas Legum; Russell Long; Patricia Matthews; AvisOgilvy Moore; Doria Steedman; Rick Taketa; Peyton West.

Brent Blackwelder, Former President and Special Advisor.

StaffErich Pica, PresidentElizabeth Bast, International Program DirectorNick Berning, Director of Public Advocacy & Media

RelationsHillary Blank, Major Gifts OfficerMichelle Chan, Senior International Policy AnalystCharis Khoury, Development AssociateHugh Cheatham, Chief Financial OfficerTom Clements, Southeastern Nuclear Campaign

CoordinatorRebecca Connors, Internet Outreach ManagerMichael Despines, Climate Resilience Campaign

CoordinatorWill Driscoll, Director of Foundation RelationsDanielle Fugere, Regional Program DirectorDavid Hirsch, Chief Operations OfficerKate Horner, Climate Change & Energy CampaignerIan Illuminato, Health & Environmental Policy CampaignerJohn Kaltenstein, Marine Program ManagerMarcie Keever, Clean Vessels Campaign DirectorNeesha Kulkarni, Legislative AssociateStephanie Lozano, Development AssociateAdina Matisoff, China Sustainable Finance CampaignerLisa Matthes, Publications Manager & Executive Assistant

to the PresidentKate McMahon, Energy & Transportation Policy

CampaignerAlex Moore, Dirty Fuels CampaignerKaren Orenstein, International Finance Campaign

CoordinatorDan Riedel, Manger of Information TechnologySara Schedler, Clean Cars Program AssociateBen Schreiber, Energy & Climate Tax AnalystPeter Stocker, Donor Services ManagerKelly Trout, Communications AssociateChris Weiss, Director, D.C. Environmental NetworkCandice Wills, Accountant

Gabel FellowsSarah Aird, Vessels & Clean Cars ProgramsAlyssa Kitlas, Gabel Fellow, International Program

Publications StaffLisa Matthes, EditorDesign by JML Design

Consultants/AdvisorsRobert AlvarezBart BruilJim CorbettFred FellemanJen HolzerJohn W. JensenBoshen JiaDorothee KrahnFred MillarAndrianna NatsoulasShems Dunkiel Kassel & Saunders PLLCElinor TaoCori TraubDavid WeinmanJames WinebrakeYang Yang

Member GroupsArgentina, Australia, Austria, Bangladesh,Belgium, Belgium (Flanders & Brussels),Bolivia, Brazil, Bulgaria, Cameroon, Canada,Chile, Colombia, Costa Rica, Croatia,Curacao, Cyprus, Czech Republic, Denmark,El Salvador, England-Wales, Northern Ireland,Estonia, Finland, France, Georgia, Germany,Ghana, Grenada, Guatemala, Haiti, Honduras,

Hungary, Indonesia, Ireland, Italy, Japan, Latvia, Liberia,Lithuania, Luxembourg, Macedonia, Malawi, Malaysia, Mali,Malta, Mauritius, Mexico, Mozambique, Nepal,Netherlands, New Zealand, Nigeria, Norway, Palestine,Papua New Guinea, Paraguay, Peru, Philippines, Poland,Scotland, Sierra Leone, Slovakia, South Africa, SouthKorea, Spain, Sri Lanka, Swaziland, Sweden, Switzerland,Tanzania, Timor Leste, Togo, Tunisia, Uganda, Ukraine,United States, Uruguay.

AffiliatesAfrica: Earthlife Africa; Australia: Mineral Policy Institute;Australia: Rainforest Information Centre; Brazil: Amigosda Terra Amazonia - Amazônia Brasileira; Brazil: Grupo deTrabalho Amazonico; Canada: Blue Planet Project; CzechRepublic: CEE Bankwatch; Japan: Peace Boat; MiddleEast: Friends of the Earth Middle East; Netherlands:Action for Solidarity, Equality, Environment andDevelopment Europe; Netherlands: Stichting DeNoordzee (North Sea Foundation); Netherlands:Corporate Europe Observatory; Netherlands: WISEEurope; United States: Corpwatch; United States:International Rivers Network; United States: RainforestAction Network

Friends ofthe EarthInternational

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Earth Share givingcampaigns allow you todesignate a donation toFriends of the Earth. Federal employees candonate through theCombined Federal Campaignby marking #12067 on theirpledge forms. To set up anEarth Share campaign atyour workplace, contactPeter Stocker at 866-217-8499, ext. 216 orpstocker@foe.org.

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