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2015 Annual Report 2015 ANNUAL REPORT


I am honored to serve this year as PNWER president. This region is one of unparalleled physical beauty, vast natural resources, robust agricultural production and efficient trade and export facilities that serve our two countries. Skilled, resourceful and innovative people call this region home. By working together and sharing our ideas, challenges, successes, and failures, we become stronger and more resilient. The opportunities within our region are immense and I believe PNWER is the organization best positioned to help us maximize these opportunities. By seeking and sharing the perspectives of public, private, academic and non-profit stakeholders, PNWER allows us to advance our shared goals and craft collaborative solutions. Sen. Curt McKenzie Idaho President, PNWER

I ask for your participation and your support to improve this region we call home, and I therefore invite you to PNWER’s 2016 Annual Summit in Calgary, Alberta, July 17-21. With more than 500 legislators, business, and local government leaders participating, the Summit will be an excellent forum for developing solutions to regional challenges.

Since the 2015 Summit, PNWER has led tremendous efforts to strengthen the region’s defense against quagga and zebra mussels through meetings in Washington D.C. and in each state and province. Through the efforts of PNWER and our regional partners, we were able to insure the U.S. federal budget doubled the region’s funds for mussel prevention. One of my main goals this year is to study best practices in infrastructure finance and share those across the region. With PNWER’s Transportation Working Group, I have begun a Innovative Infrastructure Finance Task Force that will inventory infrastructure finance projects in the 10-jurisdiction region, identify challenges and study lessons learned from each to help advance similar initiatives. I want to acknowledge the work of David Ramsay, PNWER’s immediate past president, for his exceptional leadership of PNWER in 2014-2015, including the 25th Annual Summit in Big Sky, Montana, this past July and our first Winter Meeting in Yellowknife, Northwest Territories. I also want to thank the staff at our Secretariat in Seattle and our many private sector partners who have made these programs possible. PNWER is a public – private partnership and your support is essential to provide the kind of programs we have been able to deliver this year. I hope the activities and outcomes highlighted from this previous year will encourage you to continue to be actively involved in PNWER or explore opportunities to become involved. We live in a great region that looks beyond borders and encourages collaboration with innovative people. Together we can make a difference for our families, our states and provinces, and our two great countries. Sincerely,

Senator Curt McKenzie Idaho President, PNWER


Contents Introduction 2 3 4

About PNWER Leadership Year at a Glance

Conferences 6 10

25th Annual Summit 2015 Winter Meeting

Programs 12 22 23 23 24 25 25

Working Groups and Action Items Capital Visits Center for Regional Disaster Resilience Invasive Species Legislative Energy Horizon Institute PNWER Arctic Caucus Preclearance and Border Solutions

Special Recognition 26

25th Anniversary

Finances 27 28

Financial Report Supporters and Partners

Upcoming Events 29

2016 Annual Summit: Calgary

Mission To increase the economic well-being and quality of life for all citizens of the region, while maintaining and enhancing our world-class natural environment. Front cover photos by: James Brooks, Loren Kerns, kaknauf and Montana Department of Commerce. Back cover photos by: Jeff Hitchcock, J Brew, Gustavo Jeronimo, Government of the Northwest Territories and the Montana Department of Commerce. Above photo by Kyla Duhamel. All photos used under license.


About PNWER

PNWER is the preeminent bi-national advocate for regional state, provincial, and territorial issues The Pacific NorthWest Economic Region (PNWER) is a public-private partnership chartered by the states of Alaska, Idaho, Montana, Oregon, and Washington; the western Canadian provinces of Alberta, British Columbia, and Saskatchewan; and Yukon and the Northwest Territories. PNWER is dedicated to encouraging global economic competitiveness and preserving our world-class natural environment. PNWER is recognized by the federal governments of both the United States and Canada as the “model” for regional and bi-national cooperation because of its proven success. PNWER provides the public and private sectors a cross-border forum for unfiltered dialogue that capitalizes on synergies between business leaders and elected officials working to advance the region’s global competitiveness.

The Region’s Future With over $1 trillion (USD) in gross regional product, the U.S. Pacific Northwest (Alaska, Idaho, Montana, Oregon, and Washington) and Western Canada (Alberta, British Columbia, the Northwest Territories, Saskatchewan, and Yukon) is one of the fastest growing regions of North America. This region is China and East Asia’s gateway to North America, and is home to several major infrastructure projects and business opportunities. Now, more than ever, the Pacific Northwest needs a bi-national, regional advocate that works with both the public and private sectors. 2

PNWER Delegations visit up to six jurisdiction capitals and both national capitals each year to meet government and private-sector leaders, build relationships and discuss issues of regional concern. The PNWER Delegation visited Ottawa in June. Private Sector Representative Colin Smith, PNWER Executive Director Matt Morrison, 2014-2015 PNWER President Hon. David Ramsay, NWT, Dan Ashton, MLA for British Columbia and Hon. Herb Cox, Saskatchewan, met with Hon. Michelle Rempel, Minister of State for Western Economic Diversification to discuss Western Canada’s efforts to develop crossborder markets.

Public & Private Sector Leadership PNWER delivers results on regional issues through action plans developed within working groups that correspond to the region’s key priorities. Each working group is co-chaired by an industry leader and a government representative. PNWER is a forum for collaborative bi-national planning involving both the public and private sectors and offers leadership at the state, provincial and territorial level, as well as at the national level in Washington, D.C. and Ottawa.

PNWER Staff Matt Morrison Executive Director Brandon Hardenbrook Deputy Director Eric Holdeman Director, Center for Regional Disaster Resilience (CRDR) Steve Myers Senior Program Manager Megan Levy Program Manager Jennifer Grosman Program Coordinator Mark Stayton Media and Communications Coordinator Felicia Muncaster Program Coordinator Chris Chan, CPA Accountant


2015 Leadership

Executive Committee Officers

Sen. Curt McKenzie

President Idaho

Dan Ashton, MLA

Vice President British Columbia

Sen. Arnie Roblan

Vice President Oregon

Rep. Mike Cuffe

Vice President Montana

Hon. David Ramsay

Immediate Past President, NWT

2015 Delegate Council Alaska Gov. William Walker Sen. Lesil McGuire Sen. Berta Gardner Sen. Cathy Giessel (Alt) Sen. Bill Wielechowski (Alt) Rep. Bob Herron Rep. Charisse Millett Rep. Dave Talerico (Alt) Rep. Chris Tuck (Alt) Alberta Premier Rachel Notley Delegates to be named The Northwest Territories Premier Bob McLeod Hon. David Ramsay Robert Hawkins, MLA Robert Bouchard, MLA

Private Sector Council*

British Columbia Premier Christy Clark Dan Ashton, MLA Simon Gibson, MLA Laurie Throness, MLA Idaho Gov. C.L. Butch Otter Sen. Curt McKenzie Sen. Michelle Stennett Sen. Chuck Winder (Alt) Rep. Robert Anderst Rep. Elaine Smith Rep. Rick Youngblood (Alt) Rep. Mat Erpelding (Alt) Yukon Premier Darrell Pasloski Hon. Stacey Hassard

Alberta Larry Delver, Alberta Beef Producers Steve Allen, Calgary Economic Development Private Sector Scott Thon, AltaLink Representatives Jerry Bellikka, Capital Power Colin Smith, Past President, Brian Maynard, Marathon APEGBC; Canada Co-Chair Gary Weilinger, Dan Kirschner, Executive Director, NWGA; U.S. Co-Chair Spectra Energy Tom Huffaker, Imperial Alaska British Columbia Paul Quesnel, BP Colin Smith, APEGBC Cam Toohey, Shell Dave Cowen, The Butchart Portia Babcock, Gardens ConocoPhillips Don Dalik, Fasken Hans Neidig, ExxonMobil Martineau David Bennett, FortisBC Northwest Territories Marcia Smith, Teck Darrell Beaulieu, Denendeh Investments Yukon Pawan Chugh, NWT BDIC Kells Boland, Prolog

Montana Gov. Steve Bullock Rep. Mike Cuffe Sen. Cliff Larsen Sen. Chas Vincent Sen. Dee Brown (Alt) Sen. Jon Sesso (Alt) Rep. Kathleen Williams Rep. Mike Lang (Alt) Rep. Tom Steenberg (Alt) Oregon Gov. Kate Brown Sen. Arnie Roblan Sen. Bill Hansell Sen. Rod Monroe (Alt) Sen. Doug Whitsett (Alt) Rep. Deborah Boone Rep. Bill Kennemer Rep. Caddy McKeown (Alt) Rep. Greg Barreto (Alt) Idaho Roy Eiguren, Eiguren Fisher Public Policy Rick Naeurbout, Idaho Dairymen’s Assn. Norm Semanko, Idaho Water Users Assn. Ron Nilson, Groundforce Tom Power, Sunshine Minting Brian Whitlock, INL/Battelle Montana Mike Halligan, The Washington Companies Richard Matheson, MDU Resources Todd O’Hair, Cloud Peak Energy Tracy Ellig, MSU Scott Whittenberg, U of M Dexter Busby, Calumet Montana Refining

Saskatchewan Premier Brad Wall Larry Doke, MLA Hon. Bill Boyd Dustin Duncan, MLA Hon. Lyle Stewart Washington Gov. Jay Inslee Rep. Gael Tarleton Sen. Kevin Ranker Sen. Jim Honeyford Sen. Barbara Bailey (Alt) Sen. Maralyn Chase (Alt) Rep. Bruce Chandler Rep. Norm Johnson (Alt) Rep. Jake Fey (Alt) Bold = Jurisdiction leads Oregon Dan Kirschner, NWGA Sunny Radcliffe, PGE David Cobb, HDR Saskatchewan Dennis Paddock, APEGS Scott Rudderham, Canpotex Allan Migneault, AJM Management Corp. Washington Joe Ritzman, SSA Marine William Kidd, BP Nancy Atwood, PSE DeLee Shoemaker, Microsoft Shana Peschek, Construction Center of Excellence *Partial listing

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Year at a Glance

January 2015 PNWER Delegations meet with government and private-sector leaders in Juneau, Olympia, Boise and Helena to share accomplishments and identify regional concerns

Sen. Curt McKenzie, Idaho, assumes PNWER presidency from Hon. David Ramsay, NWT, at the 25th Annual PNWER Summit in Big Sky, Montana PNWER Summit brings together 533 delegates to discuss major regional challenges and opportunities

July 4

March

February Center for Regional Disaster Resilience (CRDR) holds the Emerald Down IV Cybersecurity Workshop in Auburn, Washington

PNWER’s Legislative Energy Horizon Institute (LEHI) provides an extensive overview of the North American energy system for 28 legislators in Richland, Washington PNWER’s Center for Regional Disaster Resilience holds 12 stakeholder input sessions across Washington for FirstNet

August

PNWER hosts the Fourth Annual North American Arctic Leaders Forum, facilitating discussion between key Arctic representatives and stakeholders in Washington D.C.

PNWER Delegation travels to Washington D.C. to advocate for regional issues such as funding for a regional perimeter defense against invasive mussels, repealing Country of Origin Labeling (COOL), AlaskaB.C. transboundary water issues and advancing pre-clearance and Beyond the Border initiatives

September


Year at a Glance Recommendations from PNWER stakeholders included in U.S.-Canada RCC Regulatory Partnership Statements and annual workplans

PNWER’s CRDR gathers input from first responders and stakeholders to develop FirstNet and Access Pass Initiatives in Washington state

PNWER’s Center for Regional Disaster Resilience and the Idaho Bureau of Homeland Security put on the Idaho Cybersecurity Interdependencies Workshop in Boise.

PNWER Delegates visit Ottawa to meet Canadian federal ministers, U.S. Ambassador Bruce Heyman, and leaders in government and private sectors

PNWER presented the BioSecurity and Agroterrorism luncheon in Boise with Idaho Bureau of Homeland Security

PNWER’s Legislative Leadership Academy and Economic Leadership Forum are held in Yellowknife, Northwest Territories. Legislators improved their knowledge of U.S. and Canadian governance systems while all delegates explored economic issues in the North and how they impact the entire region.

35 state and provincial legislators and four energy staff graduate from the rigorous LEHI program in Washington D.C.

October

June

May

April

PNWER contributes to regional zebra and quagga mussel defense strategies at the Mussel Prevention Leadership Forum in Vancouver, B.C.

November

December 5


Annual Summit

PNWER holds 25th Annual Summit in Big Sky, Montana For PNWER’s Silver Anniversary, our 25th Annual Summit brought together 533 elected members of government and senior staff, leaders in private industry and visionaries from academia and the non-profit sector to discuss and work to solve regional challenges.

381 Americans 152 Canadians 63 State, Provincial and Territorial Legislators 6 University Presidents 4 Ministers 19 CEOs

Throughout the Summit, keynote speakers provided background and insight into important regional issues. Montana Governor Steve Bullock discussed the necessity of workforce development and tourism to our regional economy; Ambassador Bruce Heyman, U.S. Ambassador to Canada, emphasized the need for innovation and collaboration to address global climate change and Matt Rose, executive chairman of BNSF Railway Corporation, spoke on the importance of maintaining a strong transport chain to keep the region competitive on a global scale. PNWER thanks the Montana Summit host committee, co-chaired by Sen. Cliff Larsen and Diane Smith, CEO of American Rural, for their hard work in planning and executing this successful event. Thanks to the efforts of the host committee, Summit delegates were able to experience Montana’s natural splendor, productive industries and renowned hospitality. Policy tours and receptions brought delegates to see Northwestern Montana mining and forestry operations; to Bozemanarea farms, manufacturers and technology firms; through Yellowstone National Park; to see the extensive collection of dinosaur fossils and permanent regional history exhibits at the Museum of the Rockies; and much more.

WORKING GROUP SESSIONS

Summit delegates discussed a variety Ambassador Bruce Heyman, U.S. Ambassador to Canada, offered a keynote speech on the of pertinent topics throughout 19 impact climate change is making on the region and the need for “Kitty Hawk moments” – working group sessions, touching great leaps in innovation and thinking – to address persistent challenges. on issues of energy development and environmental stewardship; Agriculture transportation; infrastructure finance; regional defense against invasive Arctic Caucus species, border issues, and other economic concerns.

Border Issues Cross-Border Livestock Health Cybersecurity & Disaster Resilience Energy & Environment Energy Expanding Natural Gas Markets Forestry Innovation & Higher Education Invasive Species Market Access Mining Public-Private Partnerships Tourism Trade & Economic Development Transportation Water Policy Workforce Development

For more information, including presentations, proceedings and the complete agenda, please visit: pnwer.org/2015summit 6


Annual Summit

Sen. Steve Daines, U.S. Senator for Montana, spoke on growing Montana’s economy through the responsible development of the state’s resources

Matt Rose, BNSF Executive Chairman, gave an update on the country’s rail capacity and the importance of transportation to the region’s global competitiveness.

Montana Governor Steve Bullock emphasized the importance of education, workforce development and innovation in building local economies.

PNWER is a unique organization, in my perspective, because at its very core is the concept that we have to look a little bit beyond ourselves. Core partnerships and relationships, bigger than what we are, ultimately end up creating more effective business opportunities and public policy.

- Montana Governor Steve Bullock

A panel on the utility of the future included Rep. Jeff Morris, Washington, Robin Bedilion, senior technical leader of technology innovation at the Electric Power Research Institute, and Edward H. Comer, vice president, general counsel and corporate secretary at the Edison Electric Institute.

Denis Stevens, Deputy Head of Mission, Embassy of Canada, spoke on the progress made on the Beyond the Border Initiative and ways to improve Canada and the United State’s trade relationship.

Sen. Cliff Larsen, Montana, co-chaired the Montana host committee that was integral to the Summit’s success.

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Annual Summit

PNWER Leadership Elected

Wilkins wins award

Sen. Curt McKenzie, Idaho (left) accepts presidency of PNWER and the president’s gavel from 2014-2015 PNWER President, Hon. David Ramsay of the Northwest Territories. Sen. McKenzie has been deeply involved with PNWER since 2009 as the co-chair of multiple working groups and has served as vicepresident of PNWER since 2012

Ambassador David H. Wilkins, former U.S. Ambassador to Canada and partner at Nelson Mullins Riley and Scarborough, was given the PNWER Robert Day Memorial Award for his efforts to promote U.S.-Canada relationships.

PNWER Officers • • • •

President: Sen. Curt McKenzie, Idaho Vice President: Dan Ashton, MLA, British Columbia Vice President: Sen. Arnie Roblan, Oregon Vice President: Rep. Mike Cuffe, Montana

My thanks to Matt Morrison and all the folks at PNWER who made this conference possible. They are truly a dynamic organization and they make a positive impact each year on both sides of the border.

- Ambassador David Wilkins, former U.S. Ambassador to Canada

Immediate Past PNWER President Hon. David Ramsay, Northwest Territories, is thanked for his service by past PNWER presidents (from left) Sen. Lesil McGuire, Alaska, Barry Penner, British Columbia, Rep. Jeff Morris, Washington, Max Black, Idaho, George Eskridge, Idaho and Hon. Lyle Stewart, Saskatchewan

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Samuel Schulhofer-Wohl, Senior Vice President and Director of Research at the Federal Reserve Bank of Minneapolic, presented a regional economic outlook.


Annual Summit

Policy Tours Policy tours at the Summit included: • Northwest Montana industries, such as forestry and mining • Water policy in a multi-issue watershed • Bozeman’s hi-tech industry cluster and MSU research • Developing agriculture from seed to table • Recreation manufacturing - building what you love • Economics of tourism in Yellowstone National Park • Cloud Peak Energy’s Spring Creek Mine

Guests toured Cloud Peak Energy’s Spring Creek Coal operation (left) near Billings, Montana after the Summit. A guided tour of Yellowstone National Park (above) showcased the history of conservation at the park and the economic impact of tourism to the area.

Working Groups

Robert Bonnie, Undersecretary for Natural Resources and the Environment, USDA, spoke to funding for wildfire fighting at the Forestry session

A framework for regional defense against invasive mussels was presented at the first Invasive Species session.

Hon. Lyle Stewart, Minister of Agriculture, Saskatchewan, addressed transportation in the Agriculture session.

Ambassador Bruce Heyman, U.S. Ambassador to Canada, brought up cross-border solutions during the Border Issues session.

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Winter Meeting

Yellowknife, Northwest Territories – November 15-17 The Pacific Northwest Economic Region’s Winter Meeting, the first held in Yellowknife, Northwest Territories, brought legislators, industry leaders and academics together for our Legislative Leadership Academy and Economic Leadership Forum. The Legislative Leadership Academy, held Nov. 15-16, improved legislators’ knowledge of differences between U.S. and Canadian government systems and helped legislators develop important relationships with their colleagues in neighboring jurisdictions across the border. Attendees also toured the Northwest Territories’ Legislative Assembly Building and learned about consensus government in the territory. The Economic Leadership Forum, held Nov. 16-17, allowed public and private stakeholders to carry out in-depth discussions on key subjects affecting our regional economy. Session topics included Arctic governance, Aboriginal economic development, market access and Arctic transportation systems, energy development in the North and energy-efficient buildings, and mining.

Brendan Bell, CEO of Dominion Diamonds, explained the business of diamond extraction in the Northwest Territories and the industry’s impact on the territory’s economy.

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Members of the Yellowknives Dene First Nation welcome guests to PNWER’s Winter Meeting. The 2015 Winter Meeting was the first held in the Northwest Territories.

(From left) Colin Robertson, senior advisor, Dentons, LLP.; Matt Morrison, PNWER Executive Director; Don Alper, Professor Emeritus of Political Science at Western Washington University; and PNWER President Sen. Curt McKenzie, Idaho, discussed cross-border issues, governance challenges & institutional gaps within our region.

A mining policy tour provided by the Northwest Territories Mineral Resources Division explored the NWT Diamond Centre (above left ) told the history of the past-producing Con Mine (above right) and showcased the Giant Mine Remediation Project.


Winter Meeting

Legislative Leadership Academy

The Legislative Academy has allowed myself, as a Canadian MLA, to understand the processes that go into the politics in the United States and how decisions happen. - Scott Fraser, MLA, British Columbia

Graduates of the PNWER Legislative Leadership Academy display their diplomas with faculty Dr. Don Alper (far left) and Michael Treleaven (far right) in the Northwest Territories Legislative Assembly.

Economic Leadership Forum

APEGS President Margaret Anne Hodges; Sen. Chuck Winder, Idaho; and Veronica Slajer, president, North Star Group, discuss governments’ roles in developing infrastructure.

Rep. Jeff Morris, Washington (left), and Don Toth, MLA, Saskatchewan (right), discuss reponsibilities of speaker roles in a panel moderated by Barry Penner, former Attorney General, British Columbia (center).

Challenges and best practices in Arctic governance were addressed by (from left) Consul General Lynne Platt, U.S. Consulate Vancouver; Rep. Bob Herron, Alaska; PNWER Arctic Caucus Chair, Martin Goldney, Deputy Minister, Aboriginal Affairs & Intergovernmental Relations, Northwest Territories and Drue Pearce, Senior Policy Advisor, Crowell & Moring LLP.

Ken Coates, C ​ anada Research Chair in Regional Innovation, Johnson-Shoyama Graduate School of Public Policy, gave a keynote address focused on technology and change in the North.

Chief Edward Sangris of the Yellowknives First Nation explained current issues in Aboriginal economic development and governance within the Northwest Territories.

Sean Willy, Director of Corporate Responsibility, Cameco Corporation, talked about resource-community partnerships to improve corporate engagement.

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Working Groups & Action Items

What are Action Items?

What are Working Groups?

Action Items are developed by working groups at PNWER’s two annual meetings. They represent concrete actions the working group will take to advance the priorities of the group. These Action Items are approved by the Executive Board. Action Items constitute the working groups’ and PNWER’s action plans throughout the year.

Working Groups focus on key regional issues throughout the year. They are led by a public sector and private sector co-chair, along with one lead PNWER staff member, and include public, private, academic and non-profit stakeholders. At the 2015 Summit in Big Sky, 19 Working Groups met to develop action items.

Working groups met at the PNWER Annual Summit in Big Sky, Montana, and at the PNWER Winter Meeting in Yellowknife, Northwest Territories, to discuss challenges to their industries and opportunities for progress and collaboration. Action Items are determined by working groups and constitute their action plans for the coming year.

Agriculture 2015 Co-Chairs:

Larry Doke, MLA, Saskatchewan Patrick J. Kole, Vice President, Legal & Government Affairs, Idaho Potato Commission PNWER staff lead: Brandon Hardenbrook

Purpose and accomplishments: Over the past several years the Agriculture Working Group has focused on the Canada-U.S. Regulatory Cooperation Council Action Plan (RCC) and continues to provide input on agriculture related topics. The group released a statement in support of the RCC to the region’s agriculture sectors, calling on the governments of Canada and the U.S. to reaffirm their commitment by ensuring adequate resources are dedicated to the action plan’s initiatives and making sure there is a process for stakeholders to provide direct input. In 2015, congress voted to repeal mandatory Country of Origin Labeling (COOL), resolving a years-long priority and action item of the Agriculture Working Group.

Action Items The working group commits to: • Continue to advocate to resolve regulatory barriers affecting Canada-U.S. agri-food trade, such as U.S. grain exports to Canada • Encourage the Regulatory Cooperation Council to advance a Canadian Food Inspection Agency - U.S. Food and Drug Administration comparability agreement related to Safe Foods for Canadians Act/Food Safety Moderination act, and promote awareness of regulatory changes among industry • Partner with the PNWER Transportation Working Group to provide input on harmonization of trucking size and weight standards and implications for agriculture. 12


Working Groups & Action Items

Border Issues 2015 Co-Chairs:

Sen. John Brenden, Montana Dr. Laurie Trautman, associate director, Border Policy Research Institute at Western Washington University PNWER staff lead: Brandon Hardenbrook

Purpose and accomplishments: PNWER has continued to provide input for Prime Minister Stephen Harper and President Barack Obama’s Beyond the Border and Regulatory Cooperation Council Action Plans. Prior to the action plans’ inception in December 2011, PNWER working groups had been instrumental in providing regional input for these documents, which are the cornerstone of North America’s economic competitiveness and security strategy. The joint action plans are designed to simplify the process for each country’s citizens to travel and do business across the border.

Action Items The working group commits to: • Compile a brief preclearance information sheet that will present a business case for preclearance. The purpose is to educate elected officials on what the legislation means for different industries • Compile details and share widely Sarah Swanson Partridge’s story of the frustrations and inconsistencies associated with the cross-border movement of farm equipment as an example of the need for improved communication and standardized procedures at the border. Work with relevant federal agencies to address specific concerns. • Preclearance task force will continue to meet and explore options for two-track legislative process as well as a potential pilot project during the interim period before Congress passes legislation authoring preclearance. The task force will pursue these issues and will asses the movement, timing, and potential of the legislation to pass.

Cross- Border Livestock Health 2015 Co-Chairs:

Dr. Martin Zaluski, Montana State Veterinarian; Co-chair Dr. Larry Delver, Alberta Beef Producers; Co-chair Kathryn Tonita, Saskachewan Ministry of Agriculture PNWER staff lead: Brandon Hardenbrook

Purpose and accomplishments: The Cross-Border Livestock Health Working Group consists of state, provincial and federal veterinarians and industry representatives. It serves as a model to enhance relationships and network-building between U.S. and Canadian jurisdictions, exchanging information on animal health issues/concerns, developing a common understanding of disease policies, exchanging information on emergency response to emerging and foreign animal disease. Over the past few years the group has focused on several initiatives including: • Supporting livestock-based Regulatory Cooperation Council (RCC) initiatives. In 2015 Electronic Certification of livestock was included in the RCC. • Tracking pilot project on e-certification in live cattle. Request specific criteria for system needs to fulfill data and security requirements from USDA and CFIA. • Supporting animal welfare initiatives for the development of science-based guidelines/requirements. Promoting consistency of requirements for animals crossing international, state and provincial borders. • Reevaluating past action items to include aspects of disease-prevention and detection as part of emerging animal disease.

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Working Groups & Action Items

Cross- Border Livestock Health continued Action Items The working group commits to: • Encourage the Canadian Food Inspection Agency to review their current Vesicular Stomatitis (VS) policy, with a focus on the re-entry requirements of Canadian horses from USA. Ensure that current science and recent policy changes in the USA are considered during the review. • Send a letter to CFIA indicating PNWER’s support of Canadian Beef Breeds Council and Canadian Livestock Genetics Association and request for CFIA to improve their permit process by ensuring permits are issued within a maximum of seven days from the date of application. • Send a letter to USDA and CFIA indicating PNWER’s satisfaction with USDA’s progress on the Veterinary Export Health Certification System (VEHCS) project. Encourage CFIA to work closely with USDA to implement a complementary program in Canada

Energy 2015 Co-Chairs:

Sen. Cliff Larsen, Montana Gary Weilinger, Spectra PNWER staff lead: Brandon Hardenbrook

Purpose and accomplishments: In the Energy Working Group, PNWER strives to find ways to provide sustainable energy for North America to fuel economic recovery and create a low-carbon future for North America.  PNWER brings together key industry leaders from the U.S. and Canada to examine the following key issues:  • Supply and demand • Transmission • Permitting across multiple jurisdictions  PNWER also leads the Legislative Energy Horizon Institute (LEHI) to educate legislators on energy policy.

PNWER delegates toured the Jackfish power plant in Yellowknife during our Winter Meeting.

Action Items The working group commits to: • Host a joint-meeting of Energy working group and Environment working group to discuss regional response to 1-11D (Clean Power Plan). • Convene a collaborative symposium between the environmental community and energy distributors to facilitate discussion. • Host a discussion on how individual legislatures/policy makers can encapsulate key points of working group discussions and disseminate information abroad. • Ask Western Governors Association to present at PNWER event to discuss what their activities with federal agencies to promote and advocate for better coordination of transmission of energy.

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Working Groups & Action Items

Energy & Environment 2015 Co-Chairs:

Rep. Deborah Boone, Oregon Paul Manson, CEO of DC Grid Development Corporation PNWER staff lead: Jennifer Grosman

Purpose and accomplishments: The Energy & Environment Working Group addresses the convergence of environmental sustainability and economic development. The working group promotes the Pacific Northwest’s competitiveness in addressing environmental challenges with innovative solutions. Major focus areas include renewable energy, energy efficiency, distributed generation, climate change adaptation and microgrid development.

Action Items Roadmap to Resilient, Ultra-Low Energy Buildings in the Pacific Northwest The Roadmap will focus on collaborative measures, emphasize opportunities in retrofitting existing building stock, and promote ultra-low energy goals in addition to net-zero targets. The three focus-areas are: • New Construction: net zero emissions, including an energy efficiency target and use of clean energy (including renewable natural gas) after 2030 • Existing Private Buildings: “deep” energy retrofits at the time of major renewals; optimizing economics of upgrades for future costs (including externalities) • Existing Public Buildings: achieving previous goal for 100% of public sector stock by 2030 Ten jurisdictional networks led by a public and private sector co-chair will provide guidance on market-based suggestions to promote energy efficiency for White Paper to be released at 2016 Annual Summit.

Expanding Natural Gas Markets 2015 Co-Chairs:

Rep. Caddy McKeown, Oregon Ian Burkheimer, Director of Business Development, Plum Energy PNWER staff lead: Brandon Hardenbrook

Purpose and accomplishments: The competitive landscape of the global economy, coupled with worldwide environmental challenges, is creating unprecedented demand for scientific discovery and application. The Pacific Northwest must channel the strengths of its many separate resources into a collaborative, comprehensive effort that maximizes the economic benefits of regional innovation. Through expanding the use of natural gas in new applications such as vehicles, mining operations and exporting the vast supply to new markets, we will be able to help maintain our environment, while increasing North American energy independence.

Action Items The Working Group commits to: • Explore opportunities to collaborate with the University of Montana Mansfield Center to share research and information regarding potential global markets for the region’s natural gas resources. • The working group supports the transportation working group in the development of regional harmonization on over the road weight limits of trucks and trailers. This will support the transportation of Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG) and other alternative fuels throughout the region and neighboring jurisdictions.

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Working Groups & Action Items

Forestry 2015 Co-Chairs:

Sen. Chas Vincent, Montana Tom Partin, President, American Forest Resource Council PNWER Staff Lead: Mark Stayton

Purpose and accomplishments: PNWER’s Forestry Working Group includes private forest managers and landholders, legislators and agency staff dedicated to healthy and sustainable forest management, non-profit partners in conservancy and academics in forestry and wood product research. PNWER’s Forestry Working Group is supportive of efforts that promote healthy forests, effective fire suppression funding, resilient watersheds, and socioeconomic sustainability in communities that depend on forestry.

Action Items

Plum Creek Timber’s wood product manufacturing center was featured during a forestry and mining tour prior to the 2015 PNWER Summit in Big Sky.

The working group commits to: • Support the empowerment of collaborative forest policy groups. Send messages to congressional and provincial representatives in support of legislation designed to empower successful collaborative outcomes in U.S. and provincial forestlands. • Research implementation of 2014 Farm Bill provisions with an emphasis on national forest lands designated for priority restoration by governors in the PNWER region. • Research initiatives from bi-national lumber marketing organizations to see how the PNWER region can advance: Pursuing building standards that recognize wood as green building material; Encouraging state building code authorities to recognize performance standards for wood materials; Stimulate design research with an emphasis on structural fire resiliency; Promote state programs and policies that encourage the use of biomass as a clean source of energy. • Encourage the promotion of social, economic, and environmental resiliency in rural communities within the region.

Infrastructure Finance 2015 Co-Chairs:

Sen. Chuck Winder, Idaho Bruce Agnew, Director, Cascadia Center PNWER Staff Lead: Megan Levy

Purpose and accomplishments: The Infrastructure Finance Working Group explores innovative methods for financing infrastructure projects across the region. The role of Public-Private Partnerships (P3s) across Canada and the possibility for expanding P3s in the United States was the major focus of this new working group in 2015.

Action Items The working group commits to: • The Transportation Working Group will engage and support the efforts of PNWER and President Curt McKenzie to expand the program emphasis on infrastructure finance and “lessons learned” from Canada. We will facilitate monthly calls among PNWER delegates, continue the previous pre-PNWER Summit tours to showcase infrastructure projects and seek program funding from governments and private sector sponsors. • Promote research projects to conduct an analysis of the lessons and obstacles learned from U.S. and Canadian public-private partnerships.

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Working Groups & Action Items

Invasive Species 2015 Co-Chairs:

Sen. Arnie Roblan, Oregon Mark Sytsma, Professor of Environmental Sciences and Associate Vice-president for Research at Portland State University PNWER Staff Lead: Megan Levy

Purpose and accomplishments: The PNWER Invasive Species working group strives to build collaborative partnerships throughout the region to prevent the spread of invasive species into and throughout the region. Invasive species are a key economic concern across the U.S. and Canada, damaging natural ecosystems and physical infrastructure. In recent years the group has worked most actively in developing a regional defense framework to preventing the spread of invasive zebra and quagga mussels into the northwest. If these mussels were to establish themselves across the PNWER region, the estimated cost to the region would be half a billion dollars annually.

PNWER CEO Matt Morrison explains progress made on a regional perimeter defense framework at the Mussel Prevention Leadership Forum in Vancouver, British Columbia

Action Items The working group commits to: • Host an annual meeting between the invasive species councils from each state and province to coordinate projects and responses. • Create a regional list of high-risk invasive species. • Adopt Regional Framework to Prevent the Spread of Zebra and Quagga Mussels into the Pacific Northwest and support and advocate for ongoing funding of this regional framework. • Ask coordinators from PNWER jurisdictions to identify gaps between state and provincial legislation to develop model • Garner legislative support from each jurisdiction for the recommendations in the Regional Framework. • Create an invasive species directory with contact information and priorities for all organizations involved with Invasive Species. • Increase awareness and support by legislators not involved with invasive species, including those within PNWER. • Create a list of organizations who can testify on resolutions. • Host Invasive species information booth at the 2016 Summit.

Market Access 2015 Co-Chairs:

Rep. Gael Tarleton, Washington Scott Rudderham, Senior VP, Operations, Cantopex Ltd. PNWER Staff Lead: Megan Levy

Purpose and accomplishments: The Market Access Working Group looks to initiate a discussion on market access throughout the region, providing opportunities for dialogue with all member jurisdictions on the dynamics of moving commodities to market. Concerns around transportation backlogs, labor disputes, trade policy, and customer expectations are all considered through the work of this group.

Action Items The working group commits to: • Hold session on community engagement, the permit process and impacts of expanding the environmental processes. • Develop backgrounder on the successful market techniques seen in the Canadian provinces. • Explore and share best practices for expanding trade of energy resources, with untapped regions like Asia. 17


Working Groups & Action Items

Mining 2015 Co-Chairs:

Sen. John Coghill, Alaska Tammy Johnson, President and CEO, Montana Mining Association PNWER Staff Lead: Steve Myers

Purpose and accomplishments: The Mining Working Group identifies best practices for environmental sustainability to improve the quality of life in the region, in concert with fostering economic development. The working group aims to show how development, when done responsibly, supports economic growth and increases the standard of living.

Action Items • Promoting a better understanding of the region’s mineral resource potential. • Facilitating a catalog of best practices for corporate social responsibility in the mining industry, then assembling these ideas in a regional framework. • Encouraging the participation of the aboriginal community in the working group.

PNWER delegates visited Cloud Peak Energy’s Spring Creek Mine after our 2015 Summit. The mine received the Excellence in Surface Mining and Reclamation Award in 2009 from the Office of Surface Mining.

Ocean Policy 2015 Co-Chairs:

Sen. Arnie Roblan, Oregon PNWER Staff Lead: Felicia Muncaster

Purpose and accomplishments: The Ocean Policy Working Group provides a forum of seaside jurisdictions to collaborate on the environmental and economic challenges facing our oceans and coastlines. This working group is exploring ways to develop partnerships across borders and identify regional projects to take on that will bolster the coastal economy and preserve our coastline. The goal of this working group is to strengthen the voice of PNWER’s coastal jurisdictions improve regional coordination.

Tourism 2015 Co-Chairs:

Meg O’Leary, Director, Montana Department of Commerce Dave Cowen, General Manager, Butchart Gardens PNWER Staff Lead: Mark Stayton

Purpose and accomplishments: The Tourism Working Group helps address best practices and solutions to challenges in growing regional tourism. The group is working to develop tools that show tourism’s economic impact on the region, encourage two-nation vacations and improve transportation between destinations in the region. The Tourism Working Group has worked on several projects to increase Asian tourism to the region.

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Working Groups & Action Items

Tourism continued Action Items The working group commits to: • Seek funding to deliver a Preclearance Pilot. We ask for financial support and participation in a series of coordinated and expedited pilot projects that include all transportation modes. • Continue to encourage a Visa Synchronization Pilot. • Call on Canadian Federal Government to restore capacity to Canadian Consulate in Seattle to issue visitor visas. • Allow tariff flexibility for provincial and state ferry operators. We ask regulators to structure tariffs such that flexible package pricing can be applied by ferry operators to manage yield and increase Visitors prepare to witness Old Faithful at revenue. Yellowstone National Park, which PNWER delegates • Accelerate marketing collaboration. Governments are asked to encourage and support their destination marketers in their ongoing toured after the 2015 Summit. Tourism is a driver of rural economies throughout the Pacific Northwest. efforts to leverage key resources and strategically collaborate among PNWER. • Support regional product awareness. • Support regional tourism research. • Support development of interline and multi-modal tourism transportation. We ask government to support the transportation industry in their efforts to build multi-modal bi-national travel packages that are easy to purchase. • Support development of the NORPASS Integrated Ferry Pass. We ask governments to support talks between BC Ferries, Washington State Ferries and private ferry operators to develop an interline ferry pass for foot and car passengers. • Support the PNWER Tourism Committee. All governments that participate in PNWER are asked to commit and ensure their state or province is represented by annually supplying the tourism committee with a committee member.

Trade and Economic Development 2015 Co-Chairs:

Dan Ashton, MLA, British Columbia Webb Brown, President and CEO, Montana Chamber of Commerce PNWER Staff Lead: Jennifer Grosman

Purpose and accomplishments: Many of the states and provinces are each others’ largest trading partners. PNWER’s Trade and Economic Development Working Group collaborates with member states, provinces and territories to determine the best practices for economic development and inter-jurisdictional trade, as well as international trade between the region and international trading partners.

Action Items The working group commits to: • Form a panel or initiative to investigate the potential for a PNWER wide business plan. • Form a panel or initiative to investigate the potential for a PNWER-wide Multi-Asset Renewal Fund to facilitate investment in the PNWER area from international pension funds. • PNWER will host a session in 2016 summit to discuss concerns held by both environmental and industry interests to further enhance dialogue and reach new concensus. Hold a session in 2016 to explore regional economic targets.

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Working Groups & Action Items

Transportation 2015 Co-Chairs:

Sen. Chuck Winder, Idaho Bruce Agnew, Director, Cascadia Center PNWER Staff Lead: Megan Levy

Purpose and accomplishments: The Transportation Working Group focuses on the infrastructure of our major corridors and gateways, with a special interest on border infrastructure. Economic development and quality of life throughout the region is reliant on dependable transportation corridors and shared standards across the region. In 2015, the group discussed concerns over differing trucking requirements and oil tank car safety.

Action Items The working group commits to: • Idaho Transportation Department will take the lead in working with Federal Highway Administration to request grant funding to allow the Idaho Transportation Department to convene a public private stakeholder group to recommend harmonization of truck size, weight and oversize permit processes. The focus will be harmonization among Northwest states and across the US-Canadian border in partnership with Transport Canada and the New West Partnership of BC, Alberta and Saskatchewan. • To continue the effort to encourage collaboration between the U.S. and Canada, the Infrastructure Finance Working Group and Transportation Working Group will collaborate to explore developing a regional infrastructure finance strategy and share best practices. • Based on presentations by Federal Railroad Administration, Transport Canada and Greenbrier Co., with input from BNSF and CN, we propose to develop an easy-to-understand primer on developments with regard to oil tank car regulations and expedited deployment and distribute it at rail meetings. • The Transportation and Tourism Working Groups are collaborating to expand the “Two Nation Vacation Rail” experience by passenger and excursion rail, particularly by Asian tour groups. We Endorse: A) Improvements in the Great Northern Rail Corridor to improve reliability of the Amtrak Empire Builder. B) Expedited rail pre-clearance in Vancouver, British Columbia, to improve operational reliability. C) Continued operation of the Rocky Mountaineer on the BNSF Seattle-to-Vancouver British Columbia line. D) Public/private partnerships between railroad owners, rail tour operators and local tourism and cultural leaders to expand the reach of international rail tours. Specifically from the coast to the interior and Rocky Mountain region of Montana, Idaho and Oregon in partnership with successful ventures in Alaska, British Columbia and Alberta.

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Photo by Matthew Rutledge


Working Groups & Action Items

Water Policy 2015 Co-Chairs:

Sen. Jim Honeyford, Washington David Hill, director, Centres and Institutes and Research Advocacy (CIRA) University of Lethbridge PNWER Staff Lead: Felicia Muncaster

Purpose and accomplishments: Through its Water Policy Working Group, PNWER provides an important dialogue to address water policy issues throughout the Pacific Northwest region. By connecting with legislators, private-sector and universities, we work to identify best practices to improve water security, adaptation of climate change, and storage options. We also provide updates to the region on the Columbia River Treaty and explore linkages with other working groups, including Invasive Species.

Action Items The working group commits to: • Identifying best practices to improve water security, adaptation of climate change, and storage options. • Connecting universities in the PNWER region and identify research groups/teams with expertise in water research. • Researching the value of water to the economy or sectors of the economy for collection and sharing among jurisdictions. include variances to hydrology. • Collecting information to address scarcity, conservation, efficiency and productivity, identify current successes, failures, and best practices in water markets. • Gathering information on the current status of how PNWER jurisdictions prevent and/or enable inter-basin transfers of water, options to protect water supplies. • Providing updates to the region on the Columbia River Treaty and explore linkages with other working groups, including invasive species

Workforce Development 2015 Co-Chairs:

Sen. Maralyn Chase, Washington Shawna L. Argue, MBA, P.Eng., FEC, FCSSE, FGC(Hon), Director of Education and Compliance, APEGS PNWER Staff lead: Steve Myers

Purpose and accomplishments: The Workforce Development Working Group is identifying ways to enhance the region’s world class workforce through sharing and promoting best practices in development and mobility. The working group focuses on how we train and retrain the skilled workforce that will be needed to fuel the growth of tomorrow and how can we ensure greater professional mobility in terms of licensing requirements, as many projects cross multiple jurisdictions

Action Items The working group commits to: • Building upon a marketing campaign to facilitate skilled labor mobility within the Region. • Identifying how we can match training requirements in all our jurisdictions, so our region becomes the most competitive for skilled labor. • Continue working with the U.S. Department of Defense on how we can engage Veterans with trade skills • Call on all PNWER jurisdictions’ licensing bodies for engineers to adopt policies or present amendments to their respective legislative bodies which allows them to waive the requirement for satisfaction of prescriptive credentials in education and examination if the applicant meets specific criteria adopted by each jurisdiction. PNWER continues to encourage Alaska, Washington, Oregon and Montana to join with Idaho in facilitating this resolution.

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Capital Visits

CAPITALS VISITED IN 2015 BOISE | HELENA | JUNEAU OTTAWA | REGINA | SALEM | VICTORIA WASHINGTON, D.C. | YELLOWKNIFE The PNWER Board makes annual visits to state, provincial, territorial and federal capitals to advocate for regional issues and assess priorities that PNWER should focus on in the coming year. A PNWER Delegation traveled to Ottawa in June to meet with U.S. Ambassador to Canada Bruce Heyman, several Canadian federal ministers, government representatives and private-sector leaders to build relationships and discuss issues of regional concern. A visit to Washington D.C. in October brought a delegation to meet with federal legislators and their staff, officials in the U.S. Army Corps of Engineers, the Office of Management and Budget and the U.S. Department of State. The delegation expressed the importance of funding a perimeter defense against invasive mussels. As a result, $4 million was granted in the federal budget. The group also expressed the need to repeal mandatory Country Of Origin Labelling (COOL) requirements, which were subsequently removed, discussed transboundary water issues between British Columbia and Alaska, and worked to advance preclearance and Beyond the Border initiatives.

From left, Sen. Cliff Larsen, Montana; Matt Morrison, PNWER executive director; Sen. Arnie Roblan, Oregon; and Dan Ashton, MLA, British Columbia, and others visited Olympia during a capital visit in January.

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The PNWER delegation met with Honourable Ed Fast, Minister of International Trade during the annual Ottawa capital visit in June. The delegation included (from left) Hon. Dave Ramsay, then PNWER president and Minister of Justice and Industry, Tourism and Investment, Northwest Territories; Dan Ashton, MLA for British Columbia; Hon. Herb Cox, Minister of Environment, Saskatchewan; and Matt Morrison, PNWER executive director.

U.S. Senator Jim Risch of Idaho holds a mussel-infested pipe during PNWER’s annual visit to Washington D.C. Securing funds for a regional defense against invasive mussels was a priority for the delegation, which included (from left) Matt Morrison, PNWER executive director; Rep. Mike Cuffe, Montana; Sen. Lee Heider, Idaho; Sen. Curt McKenzie, Idaho, PNWER president; and PNWER Senior Program Manager Steve Myers.

A PNWER delegation including Sen. Cliff Larsen, Montana; Matt Morrison, PNWER executive director; Shawna Argue, Co-Chair, Workforce Development Committee; Colin Smith, PNWER Private Sector Chair; and David Kettles, Director, US Relations, Alberta International and Intergovernmental Relations, visited Montana Governor Steve Bullock and Meg O’Leary, director, Montana Department of Commerce, prior to our 25th Annual Summit.


Major Program Areas

Center for Regional Disaster Resilience The Center for Regional Disaster Resilience (CRDR) focuses on emergency preparedness and disaster resilience projects across the Pacific Northwest. The CRDR operates under the umbrella of the Pacific NorthWest Economic Region (PNWER), and is committed to working with states, provinces, territories and communities to create public-private partnerships, develop action plans, and undertake pilot projects to improve regional disaster resilience.

CRDR cybersecurity initiatives Cybersecurity is a growing concern across the region. Our work developing partnerships for information sharing throughout the region brought us to three states in 2015: • In Spring we hosted the Emerald Down IV: Puget Sound Cybersecurity Workshop with the support of the King County Office of Emergency Management. More than 260 attended. • We brought cybersecurity as an emergency management concern to the Annual Summit in Big Sky, Montana, where panelists addressed the life safety risks from cyber attacks. • In the fall, PNWER and the Idaho Bureau of Homeland Security held the Idaho Cybersecurity Interdependencies Workshop for more than 130 public and private sector stakeholders in Boise.

FirstToSee and FirstNet programs In Washington, the CRDR furthered its partnership with Pierce County to develop the FirstToSee emergency social media management system. With our partners, we also organized 17 meetings to gather input for the FirstNet national wireless system.

Invasive Species

Participants of Emerald Down IV analyzed potential weaknesses in their comapnies’ security systems.

It’s important to develop a strong regional network. Prior to a big event, we’ll all be divided ... After a big disaster, we’re going to have to work together. - Joel Ware, City of Seattle Office of Emergency Management

The Invasive Species Working Group focused on zebra and quagga mussel prevention in 2015. These invasive freshwater mussels present an enormous economic threat to the PNWER region – an estimated $500 million annually should they become established in our waterways. The mussels attach themselves to surfaces, damaging irrigation, hydropower, industrial and fish hatchery infrastructure. They also change water quality; diminishing fish habitat. Mussels attach themselves to boats and in ballast water and can survive out of water for up to 30 days. In June, PNWER completed a year-long project for the State of Washington to develop a framework to advance a regional defense against zebra and quagga mussels. This project identified the economic threat of these mussels to the region and next steps for regional coordination for boat inspections and monitoring. PNWER worked with state and federal legislators and officials, as well as regional nonprofit associations, to support and organize the region’s funding for inspection stations through the Water Resources Reform and Development Act (WRRDA), for which $4 million was appropriated by the U.S. Congress for fiscal year 2016.

Aimee Hurt, Director of Operations, Working Dogs for Conservation, demonstrates the use of dogs to detect mussels on watercraft at PNWER’s Annual Summit.

In 2016, PNWER will strengthen partnerships on this issue across Western Canada, a growing effort that included the Invasive Mussel Leadership Forum in Vancouver, British Columbia, held December 2015. Outcomes of that event will be presented in early 2016 as an initial action plan to unify efforts in Western Canada.

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Major Program Areas

Legislative Energy Horizon Institute PNWER’s Legislative Energy Horizon Institute (LEHI) is a certificate program in energy policy designed specifically for state and provincial legislators. It provides an extensive overview of the North American energy system, from operating energy systems to building and financing infrastructure to regulation methods and market impacts.  The LEHI program provides legislators with comprehensive, up-to-date information on the nation’s complex energy systems; helping them become leaders in energy policy and make better-informed decisions. The 60 hour course is delivered in two intensive threeand-a-half day sessions; the first was held at the Pacific NW National Lab in Richland, Washington, from July 24 to July 28, 2015; the second session was held in Washington, D.C. October 7 to 10, 2015.

Rep. Paulette Jordan of Idaho explains her group’s approach to an integrated resource planning excercise at LEHI.

Having learned about the many broad facets of the energy industry, I have gained the necessary confidence to strongly represent my state in regional and national energy developments.

The 60 hour course includes instruction and hands-on exercises in: generation, transmission and distribution of electricity, petroleum and natural gas; integrating renewable energy into the grid, and integrated resource - Representative Paulette Jordan, Idaho planning; the global energy picture; biomass as an energy product; alternative fuels for transportation and the state of electric vehicles in North America; developing outcome based, technology neutral energy policy; aligning utility regulation with state energy policies; how energy infrastructure is financed and operated; challenges with aging energy infrastructure; and risks and opportunities associated with climate adaptation and climate policy.

Comments from legislative participants: “LEHI is a crash course on energy policy that all legislators would benefit from. The curriculum and interaction with other legislators provided a stimulating environment to discuss today’s pressing energy matters.” Assemblywoman Autumn Burke, California State Assembly “This is the most informative conference I have ever attended. LEHI is an invaluable program covering every form of energy and the policy concerns surrounding each one. This will make a positive difference for my state and the people I represent.” Rep. Ilana Rubel, Idaho 37 State legislators and provincial MLA’s graduated this year from the LEHI Program in a beautiful ceremony at the Canadian Embassy in Washington, D.C. There are now more than 168 legislators who are alumni of the program. LEHI Alumni have gone on to become leaders in their respective state and provincial governments in energy policy. Next year’s class will again have two sessions, one in Richland, Washington, July 22-26, and one in Washington, D.C. November 9 – 12, 2016. For more information, including the curriculum and list of graduates, visit www.pnwer.org/ energyhorizon

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Major Program Areas

Arctic Caucus The Arctic Caucus of the Pacific NorthWest Economic Region (PNWER) is a partnership between Alaska, Yukon, and the Northwest Territories. The partnership aims to provide a forum to share information, discuss issues of mutual concern, identify areas for collaboration and provide Arctic-relevant input to PNWER working groups and the region.

Rep. Bob Herron

Hon. Stacey Hassard

Hon. David Ramsay

Chair Co-Chair Co-Chair Meetings attended and held on behalf of the Arctic Alaska Yukon NWT Caucus in 2015 include: • January 22-23: The PNWER Arctic Caucus met in Juneau with Alaska’s legislative leadership. Caucus Members briefed the Alaska State Legislature at a joint meeting of the Senate Special Committee on the Arctic and the House Special Committee on Economic Development, Tourism & Arctic Policy. • March 4-6: The PNWER Arctic Caucus hosted the 4th Annual North American Arctic Leaders Forum in Washington, D.C. Participants attended an Arctic hearing hosted by Sen. Lisa Murkowski, Alaska, as well as the Arctic Caucus forum. Arctic Caucus members also met with the Alaska Congressional Delegation and were briefed on the federal government’s vision for the chairmanship of the Arctic Council. • June 6-9: PNWER met with federal Arctic officials during our annual Ottawa visit. • July 13: The PNWER Arctic Caucus held a meeting in conjunction with the PNWER Annual Summit. Rep. Bob Herron, Alaska, was elected to Chair the Caucus for the next year. • November 15-17: Arctic governance, Aboriginal economic development, Arctic transportation systems, mining and energy, and many other issues pertinent to Arctic stakeholders were discussed at the PNWER Winter Meeting.

Preclearance and Border Solutions Preclearance Taskforce In 2015, the Agreement on Land, Rail, Marine, and Air Transport Preclearance was signed by the U.S. and Canada as part of the Beyond the Border Action Plan. This reaffirmed the U.S. and Canada’s commitment to enhancing security while facilitating lawful travel and trade. PNWER formed a regional Preclearance Taskforce made up of industry and government stakeholders to work with both counties on the development of the implementation of the agreement. The group met in late 2014 at the PNWER Economic Leadership Forum in Seattle and has hosted monthly calls throughout 2015. The taskforce developed a white paper on the benefits of preclearance and have worked directly with congressional and parliamentary staff to assist in the legislative process to fully execute this landmark agreement.

Border Solutions Council British Columbia - Alaska Memorandum of Understanding

Dr. Don Alper, Professor Emeritus of Political Science at Western Washington University, addresses border issues at the 2015 PNWER Summit.

In 2008, PNWER created the Border Solutions Council to provide regional input and coordination leading up to the 2010 Olympics and to assist in the development of the Beyond the Border and Regulatory Cooperation Council Action plans. In 2015, PNWER worked with Alaska and British Columbia to develop a cross-border memorandum of understanding (MOU) signed by B.C. Premier Christy Clark and Alaska Governor Bill Walker to strengthen cross-border partnerships between British Columbia and Alaska in many areas of common interest including mining and environmental matters. This milestone was the result of many meetings between the state and province with several brokered by PNWER. This is an example of the kind of work the PNWER Border Solutions Council is working to accomplish. The council will continue to find opportunities to bring differing parties together to address cross-border concerns. 25


PNWER Silver Anniversary

Celebrating 25 Years of Collboration and Progress

As I’ve traveled throughout both the U.S. and Canada, I have heard from leaders everywhere that PNWER is the ‘Gold Standard’ in advancing cross-border regional issues. - David Jacobson, Former U.S. Ambassador to Canada

PNWER past presidents at the first Legislative Leadership Academy in Banff, Alberta, in 2007.

PNWER Founder Sen. Alan Bluchel, Washington, with Rep. Max Black, Idaho at the Calgary Summit in 2010.

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Canadian Ambassador to the U.S. Gary Doer at the Portland, Oregon Summit with PNWER delegates in 2011.

PNWER Leaders Round Table at the 2010 Olympics with former US Ambassador David Jacobson, former BC Premier Gordon Campbell and Saskatchewan Premier Brad Wall.

PNWER Delegates with then Canadian Prime Minister Stephen Harper in Ottawa in 2007

PNWER Founder Jim Horsman, Alberta with Rep. Jeff Morris, Washington, at the PNWER Summit in 2010.


Financial Report The Pacific Northwest Economic Region Foundation operates as a U.S. 501(c)6 nonprofit organization. PNWER’s income is derived from statutory dues from member jurisdictions as well as state/province and federal grants and contracts and private sector contributions. Private sector sponsorships vary by company and amount and help fund projects, meetings and conferences.

Meeting Revenue 12%

FY15 Revenue

Gov. Grants and Contracts 29%

Dues 26%

Sponsors 33%

FY15 Revenue

Dues Sponsors Gov. Grants/Contracts Meeting Revenue Total Revenue

$ 416,538.00 $526,187.00 $455,114.00 $192,831.00 $ 1,590,670.00

FY15 Expenses Administrative 16%

Meeting Expenses 24%

Program Development 1%

Program Expenses 59%

Program Expenses Meeting Expenses Administrative Prog. Development Total Expenses

FY15 Expenses -$926,598.00 -$374,322.00 -$251,216.00 -$16,826.00 -$1,568,962.00

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Supporters and Partners The Pacific NorthWest Economic Region wishes to recognize and thank the following organizations for their financial support over the past year:

Statutory Members Alaska

Montana

Washington

Alberta

The Northwest Territories

Yukon

British Columbia

Oregon

Idaho

Saskatchewan

Private Sector Members The membership program is a way for individuals, businesses, public organizations, and non-profits to learn of emerging opportunities, build new business connections and maximize their involvement in developing our regions’ policies. Alaska Airlines AltaLink APEGBC APEGS ASET Association of Mineral Exploration BC ASTTBC Blue Cross Blue Shield Montana BNSF Calumet Montana Refining Canpotex Ltd. Capital Power Corporation CAPP Cement Assocation of Canada Cenovus Energy CenturyLink Cloud Peak Energy CN Construction Center of Excellence Consulate General of Canada Denbury

Devon Canada Eide Bailly Enbridge ExxonMobil Fasken Martineau Fortis BC Geosciences BC HDR Idaho Dairyman’s Association Idaho National Lab Imperial Interfor Lighthouse Resources Inc. MDU Resources Montana Farm Bureau Montana Grain Growers Association Montana State University Montana Wood Products Association NASCO NBAR and Wilks Ranch

Nelson Mullins Nike Northwestern Energy Northstar Group Northwest Territories Business Development and Investment Corporation Phillips 66 Plum Creek PPL Montana Puget Sound Energy Shell Spectra Energy SSA Marine Teck The Butchart Gardens The Washington Companies TransCanada United Grain Corporation University of Montana

National Conference of State Legislators (NCSL) Natural Resources Canada

U.S. Department of Energy, Office of Electricity Delivery and Energy Reliability

U.S. Department of Homeland Security

Northwest Warning, Alert and Response Network

Washington OneNet/WaTech

Government of the Northwest Territories

Pierce County, Washington

Washington State Fusion Center

Seattle Police Department

Idaho Bureau of Homeland Security

State of Alaska

Washington State Homeland Security Grant Program

King County Office of Emergency Management

The Energy Council

Project Partners Berk Consulting British Columbia Canadian Consulate General - Seattle

University of Idaho U.S. Coast Guard

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U.S. Consulate General - Vancouver

Washington State University Western Governors Association Western Washington University Border Policy Research Institute


Save the Date!

2016 26th Annual Summit

Calgary, Alberta - July 17-21 Hyatt Regency Calgary

Come early to see the Calgary Stampede, July 8-17 Call 206-443-7723 or visit www.pnwer.org to learn about sponsorship opportunities. Photos courtesy of Visit Calgary, Andrew E. Larsen and Gina Sta. Maria


Pacific NorthWest Economic Region (PNWER) 2200 Alaskan Way, Ste. 460 | Seattle, WA 98121 Phone: (206) 443-7723 | Fax: (206) 443-7703 www.pnwer.org


Pacific Northwest Economic Region 2015 Annual Report