2016-04-08T16:56:11-05:00 2015-12-31 810385940 ANDERSON ZURMUEHLEN & CO PC 1019 EAST MAIN STE 201 BOZEMAN MT 59715 990 2015-01-01 810393444 PROPERTY AND ENVIRONMENT RESEARCH CENTER PROP 4065879591 2048 ANALYSIS DRIVE NO A BOZEMAN MT 597186829 LAWRENCE REED WATSON EXECUTIVE DIRECTOR 4065879591 2016-04-08 1 KYLA Q STAFFORD P00249110 4065566160 2016-04-08 2015 2016-09-27 15:27:22Z LAWRENCE REED WATSON 2048 ANALYSIS DRIVE NO A BOZEMAN MT 597186829 1833234 0 X WWW.PERC.ORG X 1981 MT PERC IS DEDICATED TO IMPROVING ENVIRONMENTAL QUALITY THROUGH MARKETS AND PROPERTY RIGHTS. PERC'S WORK CONSISTS OF RESEARCH, OUTREACH AND EDUCATION. PERC APPLIES ECONOMIC THINKING TO ENVIRONMENTAL PROBLEMS. 16 16 15 16 0 0 3411590 1798824 0 0 2622 10061 4280 21150 3418492 1830035 0 0 0 0 998199 1062501 0 0 231997 952462 1294296 1950661 2356797 1467831 -526762 5214255 4684057 34301 30866 5179954 4653191 X PERC IS DEDICATED TO IMPROVING ENVIRONMENTAL QUALITY THROUGH MARKETS AND PROPERTY RIGHTS. PERC'S WORK CONSISTS OF RESEARCH, OUTREACH AND EDUCATION. PERC APPLIES ECONOMIC THINKING TO ENVIRONMENTAL PROBLEMS. 0 0 1107782 RESEARCH (SEE NARRATIVE ON SCHEDULE O) 357579 OUTREACH (SEE NARRATIVE ON SCHEDULE O) 306632 APPLIED PROGRAMS (SEE NARRATIVE ON SCHEDULE O) 1771993 1 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 144 0 1 15 1 0 0 0 0 0 0 0 0 0 0 X 16 16 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X LAWRENCE REED WATSON 4065879591 2048 ANALYSIS DRIVE NO A BOZEMAN MT 597186829 LOREN D BOUGH CHAIRMAN 1.00 X X 0 0 0 THOMAS J BRAY DIRECTOR 0.00 X 0 0 0 HENRY N BUTLER DIRECTOR 0.00 X 0 0 0 TYLER DANN TREASURER 1.00 X X 0 0 0 KIMBERLY O DENNIS DIRECTOR 0.00 X 0 0 0 DEBORAH DONNER SECRETARY 1.00 X X 0 0 0 CARLOS FERNANDEZ DIRECTOR 0.00 X 0 0 0 ROBERT CLEMENT VICE CHAIR 1.00 X X 0 0 0 MARTIN HOSTETTLER DIRECTOR 0.00 X 0 0 0 FRED E KARLINSKY DIRECTOR 0.00 X 0 0 0 KRISTINA KENDALL DIRECTOR 0.00 X 0 0 0 DWIGHT E LEE DIRECTOR 0.00 X 0 0 0 RANKIN SMITH JR DIRECTOR 0.00 X 0 0 0 JOHN F TOMLIN DIRECTOR 0.00 X 0 0 0 BRIAN YABLONSKI DIRECTOR 0.00 X 0 0 0 GARY RIESCHEL DIRECTOR 0.00 X 0 0 0 LAWRENCE REED WATSON EXECUTIVE DIRECTOR 40.00 X 152500 0 12413 MONICA GUENTHER SENIOR DIRECTOR FOR PROGRAM MANAGEMENT 40.00 X 101000 0 14893 TERRY ANDERSON SENIOR FELLOW; PAST PRESID 40.00 X 135850 0 6793 389350 0 34099 3 0 1 0 0 1798824 1798824 6799 6799 21150 0 21150 21150 21150 6461 3199 3262 3262 3262 1830035 0 0 31211 X 423449 142643 140403 140403 485493 385199 53598 46696 21502 17546 2181 1775 59477 44201 7889 7387 72580 43228 14962 14390 8161 8161 605079 595026 10053 34152 21 34131 23950 11277 12673 11180 11180 271442 271442 410 410 60365 48292 12073 10868 10868 OUTREACH EXPENSE 143223 143223 BAD DEBT EXPENSE 43000 40000 3000 BOARD EXPENSE 39734 500 39234 DUES, SUBSCRIPTIONS, AN 19457 17845 1612 23275 11550 1559 10166 2356797 1771993 352807 231997 318680 264740 2640284 2482199 663000 395500 1228 1844 8692 10397 1881327 351950 1582371 1529377 5214255 4684057 27840 30866 6461 0 34301 30866 X 2914435 2775432 2152773 1765013 112746 112746 5179954 4653191 5214255 4684057 -526762 0 X X 0 1 X 1 0 X 3060329 1668697 2281433 3411589 1798824 12220872 3060329 1668697 2281433 3411589 1798824 12220872 6264488 5956384 7232 19098 19899 24591 27949 98769 2268 1208 329 3805 12323446 0.48330 0.50020 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 112746 112746 112746 112746 112746 112746 114739 251 2244 112746 114243 496 114739 1.00000 0 0 115000 115000 1549165 170875 1378290 17446 6590 10856 189716 168152 21564 10000 6333 3667 1529377 1830035 0 1830035 0 1830035 2356798 0 2356798 0 2356798 0 0 0 0 0 0 0 0 0 LAWRENCE REED WATSON EXECUTIVE DIRECTOR 152500 0 0 0 0 0 7625 0 4788 0 164913 0 0 0 FORM 990, PART III, LINE 4A RESEARCH PERC'S COMMITMENT TO RESEARCH SETS US APART FROM OTHER CONSERVATION AND FREE MARKET GROUPS. MARKET SKEPTICS ARE FORCED TO RECKON WITH PERC'S SCIENTIFIC, DATA-DRIVEN ANALYSIS. WHEN PROPERTY RIGHTS ARE CLEARLY DEFINED, SECURE, AND TRADABLE, THE PRICE SYSTEM ENCOURAGES THE EFFICIENT USE AND CONSERVATION OF ENVIRONMENTAL RESOURCES. CONFERENCES AND COLLOQUIA: PERC HOSTED 11 MULTI-DAY CONFERENCES IN THE PAST YEAR. THE IDEAS AND PUBLICATIONS THESE WORKSHOPS GENERATED (OR WILL GENERATE) INFUSE THE ACADEMIC AND POLICY DEBATES WITH THE PRINCIPLES OF FREE MARKET ENVIRONMENTALISM. THE WORKSHOPS FOCUSED ON WILDLIFE CONSERVATION, TRADE, AND PROPERTY RIGHTS; HOW MARKETS CAN ALLOW INDIVIDUALS AND COMMUNITIES TO ADAPT TO CLIMATE CHANGE; HOW DYNAMIC MARKETS ALIGN WITH DYNAMIC ECOSYSTEMS; FREE MARKET ENVIRONMENTALISM IN THE DEVELOPING WORLD; AND DIFFICULTIES OF CONTRACTING FOR ECOSYSTEM SERVICES. FELLOWSHIPS: PERC'S IN-HOUSE RESEARCH INITIATIVES ARE AUGMENTED BY VISITING SCHOLARS FROM UNIVERSITIES AND ORGANIZATIONS AROUND THE WORLD. IN 2015, WE HOSTED THREE GRADUATE FELLOWS, FOUR JULIAN SIMONS FELLOWS, 21 LONE MOUNTAIN FELLOWS, AND SIX IMPACT FELLOWS (NEW PROGRAM). SOME WERE RETURNING LEADERS IN THEIR FIELDS WHO HAVE BROUGHT QUALITY WORK TO PERC IN THE PAST, WHILE OTHERS WERE NEW TO PERC, EXPANDING ON OUR RELATIONSHIPS, TOPICS, AND UNIVERSITY AFFILIATIONS. FREE MARKET ENVIRONMENTALISM FOR THE NEXT GENERATION: THE NEW BOOK HIGHLIGHTS THE SCHOLARSHIP OF THE NEXT GENERATION OF PERC SCHOLARS. THESE SCHOLARS SHOWCASE THE EVOLUTION OF FREE MARKET ENVIRONMENTALISM (FME) FROM THEORY INTO PRACTICE, NOTING KEY SUCCESS STORIES AND APPLYING THE PARADIGM TO NEW AND MORE CHALLENGING ENVIRONMENTAL CONFLICTS. FOLLOWING THE WASHINGTON, D.C., BOOK LAUNCH, PERC SCHOLARS HAVE BEEN INVITED TO TESTIFY, CONSULT, AND EDUCATE ENVIRONMENTAL POLICY MAKERS ON A NUMBER OF ISSUES, FROM WATER MARKETS TO NATIONAL PARKS. IN SHORT, OUR IDEAS ARE AFFECTING POLICY. PUBLIC LANDS: PERC SCHOLARS HAVE STEPPED TO THE FRONT OF THE PUBLIC LANDS DEBATE WITH DATA-DRIVEN RESEARCH ON A NUMBER OF CURRENT PUBLIC LAND CONTROVERSIES. PERC RESEARCH SHIFTED THE DEBATE ON AT LEAST TWO ISSUES: (1) THE TRANSFER OF FEDERAL LANDS TO STATE MANAGEMENT AND (2) THE DEFERRED MAINTENANCE ON OUR NATIONAL PARKS. FIRST, AS EXPLAINED BELOW, OUR "DIVIDED LANDS" REPORT COMPARED THE ECONOMIC PERFORMANCE OF FEDERAL VERSUS STATE TRUST LANDS AND ADVANCED SEVERAL INSTITUTIONAL REFORMS THAT WOULD INCREASE THE ECONOMIC AND ENVIRONMENTAL PERFORMANCE OF PUBLIC LANDS. SIMILARLY, OUR RESEARCH ON THE DEFERRED MAINTENANCE BACKLOG ON FEDERAL LANDS DIRECTLY INFLUENCED DRAFT LEGISLATION FOR HOW FEDERAL LANDS ARE ACQUIRED AND MANAGED. PRIVATE CONSERVATION IN THE PUBLIC INTEREST: IN 2013, PERC SECURED FUNDING FOR A RESEARCH PROJECT EXAMINING HOW PRIVATE LAND MANAGEMENT CAN ENHANCE ENVIRONMENTAL AMENITIES, SUCH AS FISH AND WILDLIFE HABITAT, WATER QUALITY, OPEN SPACE, AND BIODIVERSITY. PERC SCHOLARS ARE RESEARCHING AND DRAFTING CASE STUDIES ON PRIVATE STREAM RESTORATION AND PUBLIC ACCESS IN MONTANA AND ENDANGERED SPECIES CONSERVATION IN TEXAS. ADDITIONALLY, AND IN PARTNERSHIP WITH THE DALLAS SAFARI CLUB (DSC), PERC SCHOLARS ARE RESEARCHING THE GENERAL EFFECTS OF REGULATIONS ON PRIVATE CONSERVATION AND THE SPECIFIC EFFECTS OF THE ENDANGERED SPECIES ACT. OUTREACH AND PUBLICATIONS THE OBJECTIVE OF PERC'S OUTREACH TEAM IS TO DISSEMINATE TO A BROADER AUDIENCE THE IDEAS GENERATED BY OUR SENIOR FELLOWS, RESEARCH FELLOWS, VISITING SCHOLARS, AND ENVIROPRENEURS. PUBLICATIONS: PERC'S PUBLICATIONS ARE AN INTEGRAL PART OF OUR OVERALL OUTREACH OBJECTIVES. PERC'S 2015 PUBLICATIONS RESULTED IN SEVERAL INVITATIONS TO TESTIFY BEFORE CONGRESS, OP-ED PLACEMENTS IN THE NATIONS MOST WIDELY READ MEDIA OUTLETS, AND MEDIA COVERAGE CITING PERC AS AN AUTHORITY ON ENVIRONMENTAL POLICY. ONE PARTICULARLY IMPACTFUL 2015 PUBLICATION WAS "DIVIDED LANDS: STATE VS. FEDERAL MANAGEMENT IN THE WEST," A PERC PUBLIC LANDS REPORT RELEASED IN MARCH. THE STUDY COMPARES STATE AND FEDERAL LAND MANAGEMENT IN THE WEST TO ADDRESS THE CURRENT DEBATE OVER TRANSFERRING PUBLIC LANDS TO STATE CONTROL. BUILDING ON THE SUCCESS OF "DIVIDED LANDS," PERC RELEASED SEVERAL OTHER PUBLICATIONS ON PUBLIC LANDS THIS YEAR. FOR EXAMPLE, ROBERT NELSON OF THE UNIVERSITY OF MARYLAND AUTHORED A PERC POLICY SERIES WHERE HE PUT FORTH AN ALTERNATE MANAGEMENT APPROACH FOR NATIONAL FORESTS-THE CREATION OF "CHARTER FORESTS," WHICH WOULD BE FREED FROM THE CENTRALIZED ADMINISTRATION AND MANAGED AS INDIVIDUAL AUTONOMOUS FORESTS CAPABLE OF MORE CREATIVE AND LOCALLY RESPONSIVE MANAGEMENT. THE SUMMER ISSUE OF PERC REPORTS WAS PARTICULARLY TIMELY, AS THE NATIONAL PARK SERVICE CELEBRATES ITS 100-YEAR ANNIVERSARY IN 2016. ARTICLES AND OP-EDS: PERC'S OUTREACH EFFORTS ARE NOT CONFINED TO IN-HOUSE PUBLICATIONS. PERC GROWS ITS AUDIENCE BY PUBLISHING ARTICLES AND OP-EDS IN POPULAR MEDIA OUTLETS ACROSS THE COUNTRY. PERC CONTINUES TO REGULARLY PLACE OP-EDS IN THE WALL STREET JOURNAL, WITH ARTICLES THIS YEAR ON PUBLIC LANDS AND WILDLIFE POLICY. WE ALSO PLACED AN ARTICLE IN THE NEW YORK TIMES-A RARE FEAT THAT HAS NOT HAPPENED IN MORE THAN 20 YEARS. THE NEW YORK TIMES OP-ED ("LET'S FIX OUR NATIONAL PARKS, NOT ADD MORE," JUNE 30) GENERATED AN OVERWHELMING AMOUNT OF ATTENTION FOR PERC, INCLUDING SEVERAL RESPONSES FROM MAINSTREAM ENVIRONMENTAL ORGANIZATIONS. THE OP-ED ALSO GENERATED MORE DAILY VISITS TO OUR WEBSITE THAN ANY SINGLE DAY IN PERC'S HISTORY, AN INDICATION OF HOW OP-EDS ALLOW US TO EXPAND OUR REACH BEYOND OUR CURRENT NETWORK. VIDEOS & PODCASTS: IN-HOUSE PRODUCTIONS WILL HIGHLIGHT EXAMPLES OF THE IDEAS PRESENTED IN EACH CHAPTER OF FREE MARKET ENVIRONMENTALISM FOR THE NEXT GENERATION. IN ADDITION, WE ARE DEVELOPING A NEW INTERACTIVE MAP OF FREE MARKET ENVIRONMENTALISM IN ACTION THAT WILL BE FEATURED ON OUR WEBSITE IN EARLY 2016. OUR INTERACTIVE MAP WILL HIGHLIGHT PRIVATE CONSERVATION IN THE PUBLIC INTEREST AND ENVIROPRENEURS AT WORK AND WILL EXPOSE BOTH MARKET CYNICS AND ADVOCATES TO THE REAL-WORLD SUCCESS STORIES OF FREE MARKET ENVIRONMENTALISM. BASED LARGELY, BUT NOT EXCLUSIVELY ON THE EXPERIENCES OF PARTICIPANTS IN PERC'S ENVIROPRENEUR INSTITUTE, PERC WILL SHOWCASE FME SUCCESSES ACROSS A BROAD SWATH OF RESOURCES AND LOCATIONS. THE E.L. WIEGAND STORYTELLERS WILL PRODUCE VIDEOS AND PODCASTS OF HIGHER PRODUCTION VALUE AND WITH BROADER AUDIENCE APPEAL. FOR EXAMPLE, THE SUNDANCE ALUMNI AND EMMY-AWARD WINNING TEAM OF JESSIE CREEL AND TY SANGA WILL TELL THE STORY OF TWO ORNITHOLOGISTS TURNED SUCCESSFUL LANDSCAPE CONSULTANTS WHOSE FOR-PROFIT BUSINESS IS RESTORING NATIVE FLORA FOR HAWAII'S ENDANGERED SONGBIRDS. APPLIED PROGRAMS THE PRIMARY VALUE OF APPLIED PROGRAMS IS TO EXPOSE POLICY MAKERS, CONSERVATION GROUPS, AND ENVIRONMENTAL ENTREPRENEURS TO PERC'S IDEAS SO THAT THEY CAN PUT THOSE IDEAS INTO PRACTICE. APPLICATIONS OF FME ARE USEFUL IN OUR RESEARCH AND OUTREACH PRODUCTS, AS SUCCESS STORIES BUILD ENTHUSIASM FOR PERC'S IDEAS AMONG CONSERVATIONISTS AND DONORS. ENVIROPRENEUR INSTITUTE: THOUGH WE HAVE MADE SEVERAL KEY IMPROVEMENTS TO THE PROGRAM IN RECENT YEARS, THE CURRICULUM AND RECRUITING PROCESS FOR THE INSTITUTE CONTINUES TO EVOLVE. THE NEW PROGRAM STRUCTURE INCLUDED A WEEK-LONG INTENSIVE TRAINING SESSION IN BOZEMAN DURING WHICH PARTICIPANTS LEARNED ABOUT PERC AND FME. THE SECOND PHASE WAS APPROXIMATELY EIGHT WEEKS OF REMOTE EDUCATION, MENTORING, AND INCUBATION TAILORED TO THE SPECIFIC NEEDS OF THE FELLOWS AND THEIR BUSINESSES. THE THIRD PHASE CONSISTED OF A FINAL ROUND OF MENTORING FOLLOWED BY A PITCH COMPETITION WITH A CASH PRIZE FOR THE ENVIROPRENEUR OF THE YEAR. REMUNERATION THROUGHOUT THE PROGRAM IS PERFORMANCE BASED, AND WE WILL CONTINUE TO RECRUIT ENTREPRENEURS WHO ARE EAGER AND ABLE TO LAUNCH PROFITABLE CONSERVATION BUSINESSES. NOW IN ITS 15TH YEAR, THE ENVIROPRENEUR INSTITUTE CONTINUES TO TURN THE IDEAS OF FREE MARKET ENVIRONMENTALISM INTO ACTION. THE 2015 "ENVIROPRENEUR OF THE YEAR" AWARD OF $15,000 IN SEED FUNDING WAS PRESENTED TO BRYSE GABOURY. HIS COMPANY ELECTRIC VINE IS A MICRO-UTILITY BRINGING SUSTAINABLE ENERGY ACCESS TO UN-ELECTRIFIED INDONESIANS. USERS PRE-PAY FOR ELECTRICITY USING THEIR MOBILE PHONE. THE METERS ARE CONNECTED TO THE MOBILE NETWORK AND MONITORED ONLINE VIA A SMART-METERING MANAGEMENT SYSTEM. COMBINED WITH THE ABILITY TO REMOTELY MONITOR POWER GENERATION AND CONSUMPTION, THIS APPROACH ENSURES SUSTAINABILITY BY MATCHING PAYMENT CYCLES WITH CONSUMERS' VARIABLE INCOME CYCLES. ENVIROPRENEUR OF THE YEAR FINALIST JOSEPH AZZARELLI HAS DEVELOPED WIRELESS SENSORS TO MONITOR WATER QUALITY. FINALIST DAVIS GRAVES OF GRASSFED BEEF CRISPS PROVIDES MARKET INCENTIVES FOR RANCHERS TO ADOPT SUSTAINABLE PRACTICES. PARTNERSHIPS WITH STATE-BASED GROUPS: IN THE FOURTH QUARTER OF 2014, PERC BEGAN TWO PARTNERSHIPS WITH STATE-BASED FREE MARKET GROUPS, THE SUTHERLAND INSTITUTE OUT OF UTAH AND THE JAMES MADISON INSTITUTE FROM FLORIDA, TO APPLY FME PRINCIPLES TO PRESSING ENVIRONMENTAL ISSUES IN THOSE STATES. FORM 990, PART III, LINE 4B OUTREACH PUBLICATIONS: PERC CONTINUES TO PRODUCE IMPACTFUL PUBLICATIONS THAT CATCH THE ATTENTION OF DIVERSE AUDIENCES AND SUCCINCTLY CONVEY THE MESSAGE OF FREE MARKET ENVIRONMENTALISM. THIS YEAR WE RELEASED OUR FIRST POLICY PERSPECTIVE, TITLED "UNLOCKING THE WEALTH OF INDIAN NATIONS," RECEIVED CONSIDERABLE ATTENTION ACROSS A VARIETY OF AUDIENCES, SUCH AS ENTREPRENEURS AND POLICY MAKERS AS WELL AS ON SOCIAL MEDIA AND THE PRESS. THE REPORT LED TO AN INVITATION FROM THE U.S. GOVERNMENT ACCOUNTABILITY OFFICE TO ADVISE THEIR STAFF ON HOW THE FEDERAL GOVERNMENT CAN ALLEVIATE BURDENSOME REGULATIONS ON TRIBAL ENERGY DEVELOPMENT. PERC'S MAGAZINE, PERC REPORTS, CONTINUES TO GENERATE BUZZ ABOUT OUR RESEARCH AND PROGRAMMING. WITH A CIRCULATION OF MORE THAN 8,000 PRINT SUBSCRIBERS AND MORE THAN 5,000 ONLINE SUBSCRIBERS, PERC REPORTS HAS BECOME THE GO-TO MAGAZINE FOR FREE MARKET ENVIRONMENTALISM. ARTICLES AND OP-EDS: PERC GROWS ITS AUDIENCE BY PUBLISHING ARTICLES AND OP-EDS IN POPULAR MEDIA OUTLETS ACROSS THE COUNTRY. PERC HAS MAINTAINED AN IMPRESSIVE PACE OF OP-EDS THIS YEAR IN THE WALL STREET JOURNAL, PLACING SIX ARTICLES IN 2014 DISCUSSING HIGH-PROFILE ISSUES SUCH AS THE KEYSTONE XL PIPELINE, THE RANGE WAR OVER GRAZING RIGHTS, AND WESTERN WILDFIRES, AND HAVE DEMONSTRATED HOW FREE MARKET ENVIRONMENTALISM APPLIES TO ISSUES AT THE FOREFRONT OF NATIONAL DEBATE. THIS YEAR, PERC'S ARTICLES AND OP-EDS HAVE ALSO APPEARED IN THE WASHINGTON EXAMINER, WASHINGTON POST, NYTIMES.COM, REASON, NATIONAL REVIEW, THE HILL, FORBES, AND DOZENS OF PRINT NEWSPAPERS ACROSS THE COUNTRY. VIDEOS: IN THIS AGE OF YOUTUBE AND SOCIAL MEDIA, PERC RECOGNIZES THE IMPORTANCE OF USING THESE NEW MEDIA TOOLS TO SHARE OUR MESSAGE. IN 2014, PERC CONTINUED TO CREATE SHORT AND ACCESSIBLE VIDEOS THAT CAN EASILY BE SHARED THROUGH THESE CHANNELS. PERC PARTNERED WITH LEARN LIBERTY TO PRODUCE SEVERAL VIDEOS FEATURING PERC SCHOLARS WHICH WERE TARGETED AT YOUNGER AUDIENCES. TOGETHER WITH LEARN LIBERTY, VIDEOS HAVE BEEN RELEASED ON TOPICS SUCH AS RECYCLING, COMMON LAW, ENDANGERED SPECIES, AND FEDERAL LAND MANAGEMENT. THESE VIDEOS ARE DESIGNED TO TEACH FREE MARKET PRINCIPLES TO LARGE AUDIENCES, AND INDEED THEY HAVE, AS THE VIDEOS PERC CO-PRODUCED HAVE RECEIVED MORE THAN 70,000 VIEWS IN 2014. SOCIAL MEDIA: THROUGH SOCIAL MEDIA PLATFORMS SUCH AS FACEBOOK AND TWITTER, PERC CONNECTS WITH TENS OF THOUSANDS OF ONLINE USERS. PERC USES SOCIAL MEDIA TO TARGET AND DEVELOP RELATIONSHIPS WITH JOURNALISTS AND INFLUENTIAL PUBLIC OPINION LEADERS. BY ACTIVELY TARGETING KEY VOICES, PERC'S RESEARCH AND ARTICLES WERE FEATURED IN THE WASHINGTON POST, NEW YORK TIMES AND THE FLINT REPORT. RADIO AND TELEVISION: PERC MADE CONSIDERABLE PROGRESS DEVELOPING AND MAINTAINING RELATIONSHIPS WITH KEY PLAYERS IN THE MAINSTREAM PRESS, INCLUDING RADIO AND TELEVISION. AS A RESULT, PERC'S EXPOSURE IN THESE AREAS HAS GROWN SIGNIFICANTLY IN RECENT YEARS. PERC SCHOLARS APPEARED ON THE JOHN BATCHELOR SHOW (NATIONALLY SYNDICATED), THE JASON LEWIS SHOW (NATIONALLY SYNDICATED), THE FRANK BECKMANN SHOW (DETROIT), THE ETHAN BEARMAN SHOW (SAN FRANCISCO AND BAY AREA), VOICES OF MONTANA, CBC MORNING EDITION (CANADA), AND ECONTALK (AWARD-WINNING PODCAST). PERC SCHOLARS HAVE ALSO EARNED SEVERAL TELEVISION APPEARANCES TO DATE ON FOX BUSINESS NEWS. FORM 990, PART III, LINE 4C APPLIED PROGRAMS ENVIROPRENEUR INSTITUTE: WE SELECTED 15 FELLOWS FOR THE 2014 ENVIROPRENEUR INSTITUTE. ONE OF THE HIGHEST VALUES OF THE ENVIROPRENEUR INSTITUTE IS THE CAPACITY OF ITS ALUMNI TO DEMONSTRATE THE PRACTICAL RELEVANCE OF FREE MARKET ENVIRONMENTALISM BY LAUNCHING SUCCESSFUL CONSERVATION BUSINESSES AND MARKET-BASED POLICY INITIATIVES. ON THE TESTABLE BELIEF THAT IT IS EASIER TO EXPOSE ENTREPRENEURS TO ENVIRONMENTAL OPPORTUNITIES THAN TO TEACH ENVIRONMENTALISTS TO THINK ENTREPRENEURIALLY, WE REVISED OUR MARKETING AND RECRUITING EFFORTS THIS YEAR TO TARGET MORE ENTREPRENEURS, BUSINESS SCHOOL GRADUATES, AND POLICY INNOVATORS. WE HAVE ALSO REVISED THE CURRICULUM TO EMPHASIZE ENVIROPRENEUR SUCCESS STORIES AND BUSINESS PLAN DEVELOPMENT. CALIFORNIA WATER MARKETS: WRAPPING UP A THREE-YEAR GRANT FROM THE S. D. BECTHEL, JR. FOUNDATION, IN EARLY 2015 PERC WILL COMPLETE A FINAL REPORT, TWO PERC CASE STUDIES, AND A VIDEO, ALL PROMOTING WATER MARKETS AS THE POLICY SOLUTION FOR CALIFORNIA'S WORSENING DROUGHT AND WATER CONFLICTS. THE REPORT WILL SUMMARIZE KEY FINDINGS FROM THE FIRST AND SECOND YEAR WORKSHOPS DURING WHICH WATER USERS AND POLICY EXPERTS IDENTIFIED INSTITUTIONAL BARRIERS AND OPPORTUNITIES FOR EXPANDING CALIFORNIA'S WATER MARKETS. THE REPORT WILL ALSO SUMMARIZE THE EXTENSIVE FEEDBACK GATHERED USING AN ONLINE SURVEY ON PARTICULAR POLICY REFORMS FROM A MUCH LARGER GROUP OF WATER USERS AND MANAGERS. AMICI BRIEFS: AN AMICUS BRIEF IS A DOCUMENT PREPARED BY A NON-LITIGANT TO HELP A COURT RESOLVE A CASE. AN EFFECTIVE AMICUS BRIEF PROVIDES A COURT WITH A PERSPECTIVE NOT OFFERED BY THE LITIGANTS, OFTEN ADDRESSING BROADER POLICY ISSUES THAN THOSE RAISED BY THE LITIGANTS THEMSELVES. IN 2013, PERC FILED AMICI BRIEFS IN TWO CASES, ONE INVOLVING PUBLIC STREAM ACCESS ACROSS PRIVATE LAND IN MONTANA AND THE OTHER INVOLVING THE PRESERVATION OF COMMON LAW NUISANCE AND TRESPASS REMEDIES IN IOWA. BOTH CASES WERE DECIDED IN 2014, WITH THE PROPERTY OWNERS WINNING IN IOWA AND LOSING IN MONTANA. BOTH FILINGS GENERATED SIGNIFICANT MEDIA COVERAGE FOR PERC AND THE IOWA COURT REFERENCED OUR BRIEF IN THEIR DECISION. NATURAL RESOURCE CONTRACTING MANUAL FOR TRIBAL ORGANIZATIONS: AS PART OF THE GRANT TO EXPLORE NATURAL RESOURCE MANAGEMENT ON TRIBAL LANDS, WE DRAFTED A MANUAL FOR CONTRACTING WITH TRIBAL ORGANIZATIONS FOR CONSERVATION OUTPUTS. BY IDENTIFYING OPPORTUNITIES AND INSTITUTIONAL BARRIERS TO CONSERVATION DEALS, THE MANUAL WILL BE USEFUL TO TRIBES AS CONSERVATION PRODUCERS AND TO NON-TRIBAL ENTITIES AS CONSERVATION CONSUMERS. THE MANUAL TAKES PERC'S RESEARCH FROM ACADEMIC TO APPLICABLE AND CONTAINS CHAPTERS ON WATER, WILDLIFE, AND ENERGY RESOURCES, WITH EACH CHAPTER EXPLORING CASE STUDIES OF SUCCESS AND MISSED OPPORTUNITY. THE MANUAL WILL BE DISTRIBUTED TO TRIBAL ORGANIZATIONS AND CONSERVATION BUYERS. FORM 990, PART VI, SECTION A, LINE 2 THE ORGANIZATION'S PRESIDENT AND SECRETARY ARE MARRIED. FORM 990, PART VI, SECTION B, LINE 11 A DRAFT COPY OF THE FORM 990 IS APPROVED BY THE FINANCE COMMITTEE PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS ESTABLISHED A GRIEVANCE COMMITTEE TO ESTABLISH A CORRIDOR AND ACCESS FOR PERC EMPLOYEES TO THE BOARD OF DIRECTORS SHOULD ANY CONFLICTS OF INTEREST ARISE. THE GRIEVANCE COMMITTEE CONSISTS OF ONE PERC EMPLOYEE AND 2 PERC DIRECTORS. THESE INDIVIDUALS REPORT TO THE ENTIRE BOARD AT EACH BOARD MEETING (TWICE PER YEAR). TO DATE, THIS COMMITTEE HAS HAD NOTHING TO REPORT. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMPENSATION IS REVIEWED AND ESTABLISHED ON AN ANNUAL BASIS. A NUMBER OF PERC DIRECTORS SIT ON OTHER NATIONAL NONPROFIT BOARDS AND HAVE AN ACCURATE ASSESSMENT OF CEO PAY FOR NONPROFIT LEADERS WHO HAVE SENIOR SCHOLARSHIP STATUS. THE CEO'S ANNUAL PERFORMANCE IS REVIEWED BY THE BOARD AT THE WINTER BOARD MEETING AND ANY MERIT PAY APPROVED TIES DIRECTLY TO THE PERCENTAGE GIVEN TO THE PERC STAFF AT THEIR ANNUAL YEAR-END MERIT REVIEW. FORM 990, PART VI, SECTION C, LINE 19 UPON REQUEST, THESE DOCUMENTS ARE AVAILABLE FOR PUBLIC INSPECTION. FORM 990, PART IX, LINE 11G HONORARIA: PROGRAM SERVICE EXPENSES 351,650. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 351,650. RESEARCH AND FELLOWSHIPS: PROGRAM SERVICE EXPENSES 242,676. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 242,676. CONTRACTED SERVICES: PROGRAM SERVICE EXPENSES 700. MANAGEMENT AND GENERAL EXPENSES 10,053. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 10,753. FORM 990, PART XI, LINE 2C THE OVERSIGHT PROCESS FOR THE AUDIT OF THE FINANCIAL STATEMENTS HAS NOT CHANGED FROM THE PRIOR YEAR.