2013 PNWER Annual Report by PNWER Communications

2013

Annual Report

I feel honored to serve this year as PNWER’s President. This region is unparalleled in the world in terms of physical beauty, energy, natural resources, agricultural production, and the trade and export facilities that serve both our countries. We are also fortunate to be a region of skilled, resourceful, and innovative people. By working together, and by sharing our ideas, challenges, successes, and failures, we are all stronger and more resilient, and we can create better opportunities of the future that our citizens deserve.

Sen. Kevin Ranker PNWER President Washington

I ask for your participation, your ideas, and your support for the sake of the region that we call home. PNWER has made great strides in assisting policymakers in this bi-national region to be better equipped to address the special challenges we face here in both Canada and the U.S. I invite you to come and share in PNWER’s 24th Annual Summit in Whistler, British Columbia July 20 – 24, 2014. We need your input and your leadership. This past year has seen many challenges for both governments and business in the region, and working together to improve our competitiveness is even more important during challenging economic times. We invite you to be a part of PNWER’s leadership team addressing the key industry sectors in the Pacific Northwest region. Some of the highlights of the past year include: • PNWER’s leadership in the stakeholder engagement process in the Beyond the Border Action Plan that both nations are currently implementing • The continued success of PNWER Legislative Energy Horizon Institute • A very successful PNWER Summit was held in Anchorage, Alaska July 14-18, 2013. • The Fourth Legislative Academy was held November 13 – 16 in Banff, AB along with PNWER’s Economic Leadership Forum. • Very substantive and significant meetings in the state and provincial capitals, and in Ottawa and Washington, DC, highlighting our regional priorities. I want to acknowledge the work of Saskatchewan’s Hon. Lyle Stewart, PNWER’s immediate past president, for his exceptional leadership of PNWER in 2012-2013, including the 23rd Annual Summit in Anchorage, Alaska this past July. 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 work with this organization to address our common challenges. We share the good fortune of living in a great region that looks beyond borders, and encourages collaboration with innovative people that want to improve the lives of all citizens in the region. Together we can make a difference for our families, our states and provinces, and our two great countries. Sincerely,

Sen. Kevin Ranker, PNWER President

Contents Introduction 2 4 5

Mission To increase the economic well-being and quality of life for all citizens of the region; To coordinate provincial and state policies throughout the region; To identify and promote "models of success;" and To serve as a conduit to exchange information.

Year at a Glance About PNWER Leadership

Conferences 6 10 14

23rd Annual Summit Winter Meeting Action Items

Programs 22 24 25 26 28

Center for Regional Disaster Resilience (CRDR) Legislative Energy Horizon Institute Arctic Caucus Capital Visits Working Group Activities

Finances 29 31

Finances Supporters and Partners

Upcoming Events 32

2014 Annual Summit

Year at a Glance

In January, delegates from the PNWER excutive committee made trips to the capitals in Alaska, Idaho, and Washington to talk with policy makers about PNWERâ&#x20AC;&#x2122;s activities and issues of concern to the region. More information on the 2013 capital visits can be found on page 27

In July, the third Legislative Energy Horizon Institute began in Richland, WA. LEHI helps legislators better understand energy to help inform their policy making. More information on this program can be found on page 26

In May, the Preventing an Invasion: Building a Regional Defense against Quagga and Zebra Mussels conference was held in Vancouver, WA

In March, PNWER brought key Arctic stakeholders to Washington D.C. to discuss the future of Arctic policy with Federal lawmakers. More on page 25

In June, PNWER delegates met with federal ministers during a visit to Ottawa, ON

The PNWER Annual Summit in July brought together over 500 of the Regionâ&#x20AC;&#x2122;s public and private sector leaders in Anchorage, Alaska to discuss issues facing the region and share best practices on topics as varied as invasive species and energy and transportation. More information on page 6

The Center for Regional Disaster Resilience works with key public and private stakeholders to create and implement workable solutions to local and regional infrastructure vulnerabilities. For more information on the yearâ&#x20AC;&#x2122;s CRDR programs, please see page 22

In November, delegates visited Yellowknife, NT for a capital visit and Arctic Caucus Forum. More information on page 25

In November, PNWER hosted the 4th Legislative Leadership Academy and 2013 Economic Leadership Forum in Banff, Alberta. See page 10

The Pacific NorthWest Econonomic Region (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 is a respected voice and resource for our region. It provides the public and private sectors a cross-border forum for unfiltered dialogue that capitalizes upon the synergies between business leaders and elected officials working to advance the region’s global competitiveness.

PNWER Staff

The Region’s Future

Matt Morrison Executive Director

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.

Brandon Hardenbrook Deputy Director Eric Holdeman Director, Center for Regional Disaster Resilience (CRDR) Steve Myers Program Manager Megan Levy Program Manager Joe Larsen Program Coordinator Jennifer Grosman Program Coordinator

Members of PNWER’s executive delegation meet with Idaho Governor C.L “Butch” Otter at the Idaho State Legislature in Boise in January 2013.

Public and Private Sector Leadership PNWER delivers results on regional issues through action plans developed within 20 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/territorial level in Oregon, Washington, Idaho, Montana, Alaska, Alberta, British Columbia, Saskatchewan, Yukon and Northwest Territories, and at the national level in Washington, D.C. and Ottawa.

2013 PNWER Board Executive Committee Officers

Sen. Kevin Ranker President Washington

Hon. David Ramsay Vice President Northwest Territories

Delegate Council Alaska Gov. Sean Parnell Sen. Lesil McGuire Sen. Lyman Hoffman Rep. Peggy Wilson Rep. Bob Herron Sen. Cathy Giessel (Alt) Sen. Berta Gardner (Alt) Rep. Charisse Millett (Alt) Rep. Doug Isaacson (Alt) Alberta Premier Alison Redford Alana DeLong, MLA Len Webber, MLA Donna Kennedy-Glans, MLA

Private Sector Council* Private Sector Representatives Colin Smith APEGBC Canada Co-Chair Dan Kirschner, NWGA US Co-chair Alaska Paul Quesnel, BP Cam Toohey, Shell Portia Babcock, ConocoPhillips Donna McCray, ExxonMobil

Sen. Curt McKenzie Vice President Idaho

British Columbia Premier Christy Clark Norm Letnick, MLA Simon Gibson, MLA Laurie Throness, MLA Idaho Gov. C.L. Butch Otter Sen. Curt McKenzie Sen. Elliot Werk Rep. George Eskridge Rep. Elaine Smith Rep. Eric Anderson (Alt) Rep. Hy Kloc (Alt) Sen. Michelle Stennett (Alt) Sen. John Goedde (Alt) Montana Gov. Steve Bullock Sen. Cliff Larsen Sen. Chas Vincent Rep. Mike Cuffe

Alana DeLong, MLA Vice President Alberta

Hon. Lyle Stewart Imm. Past President Saskatchewan

Rep. Kathleen Williams Rep. Jeff Welborn (Alt) Rep. Edie McClafferty (Alt) Sen. Mike Phillips (Alt)

Hon. Bill Boyd Dustin Duncan, MLA Hon. Lyle Stewart Herb Cox, MLA

The Northwest Territories Premier Bob McLeod Hon. David Ramsay Robert Hawkins, MLA

Washington Gov. Jay Inslee Sen. Jim Honeyford Sen. Kevin Ranker Sen. Barbara Bailey (Alt) Sen. Maralyn Chase (Alt) Rep. Bruce Chandler Rep. Gael Tarleton Rep. Norm Johnson (Alt) Rep. Jake Fey (Alt)

Oregon Gov. John Kitzhaber Sen. Doug Whitsett Sen. Arnie Roblan Sen. Rod Monroe (Alt) Rep. Deborah Boone Rep. Bill Kennemer Rep. Brad Witt (Alt) Rep. Kevin Cameron (Alt) Saskatchewan Premier Brad Wall

Alberta Dwain May, Capital Power Jeff Gaulin, Tervita Sonya Savage, Enbridge Scott Thon, AltaLink Peter Kruselnicki, TransCanada Bryan Maynard, Marathon Mark Flint, APEGA Gary Weilinger, Spectra Energy

Russ Hendricks, Idaho Farm Bureau Tom Power, Sunshine Minting Ron Nilson, Ground Force Worldwide

British Columbia Don Dalik, Fasken Martineau Jason Wolfe, FortisBC Colin Smith, APEGBC

Oregon Dan Kirschner, NWGA Sunny Radcliffe, PGE David Cobb, HDR

Montana Haley Beaudry, Columbia Falls Aluminum Co.

Idaho The Northwest Territories Roy Eiguren, Eiguren Fisher Public Chuck Parker, Discovery Air Policy LLC

Yukon Premier Darrell Pasloski Hon. Currie Dixon

Bold = Jurisdiction Leads Saskatchewan Dennis Paddock, APEGS Scott Rudderham, Canpotex Lionel LaBelle, STEP Washington William Kidd, BP Nancy Atwood, PSE DeLee Shoemaker, Microsoft Roger Woodworth, Avista Yukon Don Pumphrey, NorthwestTel David Thompson, Northern Cross

*Partial Listing

Annual Summit Working Group Sessions Agriculture Border Issues Cross-Border Livestock Health Disaster Resilience Energy I: Transmission Energy II: Renewables Energy Storage Health Care Innovation Invasive Species Market Access Mining Natural Gas Transportation Ocean and Coastal Caucus Tourism Trade & Economic Development Transportation Water Policy Workforce

The Future of the North: Opportunities Challenges and Regional Solutions Over 500 of the region’s public and private sector leaders met July 14-19 in Anchorage, Alaska for five days of in-depth discussion on the region’s greatest challenges. Summit delegates discussed a variety of topics during the 18 working group sessions, touching on issues of energy; cross-border collaboration for the control of invasive species; progress of the Beyond the Border Action Plan; and the development of natural gas as a transportation fuel. This year working groups rallied around a common topic: The Arctic. Drawing on the host jurisdiction for inspiration, each working group session agenda centered partly or completely on addressing the special challenges and opportunities available in the Arctic. PNWER working groups developed action

items based on session discussions, which serve as PNWER’s work plan for the year. Action items are available on page 14. Thanks to the hard work of the Summit host committee, chaired by Sen. Lesil McGuire, Alaska, Summit delegates experienced a taste of Alaska’s culture and hospitality. Delegates took a policy tour of Prince William Sound, taking in the beauty of 26 glaciers; learned more about Native Alaskans at the Alaska Native Heritage Center; and were educated about Alaska’s economy and ingenuity during tours of Fairbanks and Nome. Throughout the Summit, keynote speakers and panelists helped provide greater background on issues important to the region, including panels on “Arctic Challenges and Opportunities” and “PNWER: The Energy Breadbasket of the Continent.” For more information, including presentations and agenda, please visit: www.pnwer.org/2013Summit

“Let’s work with our neighbors to develop solutions. That’s the purpose PNWER serves.” - U.S. Senator Lisa Murkowski, Alaska

United States Senator Lisa Murkowski of Alaska welcomes delegates to Anchorage to kick-off the 2013 Annual Summit in Anchorage, Alaska on July 14.

“The stronger the relationships and team work between the U.S. and Canada, the better.” - Hon. Rob Merrifield, Member of Parliament for Yellowhead, Alberta, and recipient of the PNWER 2013 Hot Potato Award Hon. Rob Merrifield (MP) addresses PNWER delegates after being awarded PNWER’s Hot Potato Award for deescalating tensions between the U.S. and Canada.

Cross-Border Livestock Health Conference The 6th Annual Cross Border Livestock Health Conference (CBLHC) was be held, July 17-18, 2013 in Anchorage, Alaska . Over 50 state, provincial and federal veterinarians, animal health representatives, industry representatives, legislators and elected officials from both Canada and the

United States attended this two day meeting. This year’s conference focused on three primary topics; Antimicrobial use in livestock, Animal welfare issues and One Health (issues impacting human, domestic and wild animal

health). The group also discussed the continued pressing need for an electronic certification process for exporting livestock across the border. The working group has called on both federal governments to implement a pilot in our region in 2013 to address this ongoing issue.

Ocean and Coastal Caucus Over a day and a half of the Summit, delegates met for an in-depth discussion of the greatest challenges facing the seaside PNWER jurisdictions during the Ocean and Coastal Caucus.

Sen. Arnie Roblan, Oregon, gives a presentation on Oregon’s ocean energy projects during session two of the Ocean and Coastal Caucus

Over the three sessions, the Caucus covered a variety of concerns. The first day featured an in-depth briefing on ocean acidification and its impact on the shellfish industry. This was followed by an exploration of Arctic issues, specifically with the opening of northern seas due to ice melt. Delegates also had the excellent opportunity to hear about national ocean concerns from Deerin BabbBrott, Director of the U.S. National Ocean Council.

The second session focused solely on marine debris, exploring priorities for local and federal jurisdictions for the management of debris from the shipping industry and from the tsunami in Japan. The final session addressed ocean energy, and marine commerce and trade. The Ocean and Coastal Caucus was started by Sen. Kevin Ranker, Washington, to better facilitate collaboration between the west coast jurisidictions on ocean policies.

Annual Summit Arctic Issues Take Center Stage at PNWER Summit The main theme of this year’s summit was the role of sustainable economic development in the Arctic. Experts from the region and federal partners spoke about the opportunities and challenges related to development in the Arctic. To kick off the Summit, U.S. Senator Lisa Murkowski addressed the challenges of getting the U.S. Federal Government to focus on the role they play in Arctic policy and development. The following day Teresa Imm, Arctic Slope Resource Corporation (ASRC); John Higginbotham, Carleton University; and Hugh Short, Platinum Capital Advisors, spoke on a panel about the Arctic that was moderated by Alice Rogoff, Lt. Governor Mead Treadwell, Alaska, answers questions about the Alaska Arctic Policy publisher and owner at Alaska Dispatch Commission and Alaska’s role in U.S. Arctic policy with Sen. Lesil McGuire and Rep. Bob Herron. Publishing. On Tuesday former Alaska Territories, Lt. Governor Mead senate president Drue Pearce provided about the proposed Circumpolar Treadwell, and Patrick Borbey, Canadian Business Forum, a project which has her perspectives on natural resource Northern Economic Development development in the Arctic. She gave been identified by the Canadian Federal Agency spoke about the importance a broad overview of the potential government as an Arctic priority. of development and inclusion of the in the region while highlighting the Business leaders saw this as a great private sector in the policy discussions difficulty of exploration in the North. opportunity but wanted to be sure that about the Arctic. On Thursday select members of the their interests are being represented. Alaska Arctic Policy Commission gave They were concerned that not all On the final day of the Summit, public remarks on the role of the commission sectors would be represented equally and private sector attendees from and its work with the citizens of Alaska. and that there would be transparency Alaska, Yukon and the Northwest Closing out the Keynote presentations, on how forum members are selected. Territories had the chance to speak Premier Bob McLeod, Northwest

“We must all continue to work together and lead the rest of the world by our example. We can do this if we stay true to the principles of cooperation and compromise which have guided [PNWER] for more than two decades.” - Sen. Kevin Ranker, Washington Sen. Kevin Ranker, Washington, thanks delegates for their involvement and described his vision for the future of PNWER after being sworn in as the PNWER 2013-2014 president on July 17.

Participants of the Northern Development Tour learned about energy production in Alaska with visits to sites like Flint Hills Refinery, seen here.

Participants of the Beyond the Border Cross Border Security and Economic Development Tour in Prince Rupert, B.C.

Policy Tours PNWER’s policy tours play an important role in connecting regional leaders and enhancing policy discussions during the Annual Summit. Cross-border security and economic development was the focus of a pre-summit tour organized in conjunction with the Consulate General of Canada Seattle and Cascadia Center for Regional Development. The delegation of state legislators, port officials, and executive branch members visited the U.S. – Canada border crossing, marine terminals at Port Metro Vancouver, and the port of Prince Rupert, B.C. before traveling to Ketchikan, Alaska. Another group of delegates traveled to Fairbanks, Alaska to learn about economic development and energy production through visits to a gold mine, clean coal project, oil refinery and the University of Alaska-Fairbanks before experiencing the beauty of Denali National Park. During the Summit, delegates witnessed the cutting-edge cargo shipping operations at the growing Ted Stevens Municipal Airport while HDR welcomed participants to view the operations at the William J. Hernandez Fish Hatchery. The

141,000 square-foot hatchery will produce six million fish, including Chinook and Coho salmon, and will be an important contributor to sport fishing in Alaska. Summit participants had an incredible opportunity to visit the Alaskan North American Aerospace Defense Command (NORAD) Region at Joint Base Elmendorf-Richardson. After learning about the functions of Alaska NORAD, participants toured the Ukla Memorial and the Bald Eagle Aviary. After the Summit, a group traveled 539 miles northwest of Anchorage to Nome for a packed-day of educational events. The visits to several native corporations and Port of Nome were a great addition to the Summit discussions concerning Northern resource development and emerging Arctic issues. A reception hosted by the Nome Chamber of Commerce allowed participants to connect with the local community. Also after the Summit, a small group was able to visit the Pebble deposit area in the Bristol Bay region of southwest Alaska. This unique opportunity to visit the proposed mineral exploration project was provided by Pebble Limited Partnership.

Alaska king crab and increased job security for Nome fishermen are just two of the bi-products of Norton Sound Economic Development Corporation’s innovative programs.

A representative from Silnasuak explains the tribal corporation structure to delegates on the Nome Gold Rush tour.

Winter Meeting Economic Leadership Forum Over 120 participants from throughout the region met November 13-15 at the Fairmont Banff Springs in Banff, Alberta for the 2013 Economic Leadership Forum, which was held in conjunction with the Legislative Leadership Academy, seen on page 13. Building on the Action Items of the Summit, participants focused on Workforce, Energy, Market Access, Transportation, and Invasive Species. A special session on lessons learned from the Alberta floods helped delegates better understand the long term economic impacts of disaster response. Delegates also joined the Legislative Leadership Academy to discuss how the public and private sectors can partner to tackle issues like cross-border infrastructure projects, invasive species prevention, and water policy, including the Columbia River Treaty. Forum participants heard from over 35 excellent speakers. Dr. Ian Brodie, Director of Research, School of Public Policy, University of Calgary, and

former Chief of Staff to Prime Minister Stephen Harper gave remarks on “Taking ‘No’ for an Answer,” speaking to the challenges of working on both sides of the border to continue the important projects that join our two countries in every sector. Keynote speakers also included Hon. Kyle Fawcett (PC), Associate Minister for Recovery and Reconstruction of Southwest, Government of Alberta, giving an overview of the Alberta floods; and Dick Brown of Ferus who explained the tremendous opportunities to expand the natural gas sector in North America. Action items from the event included expanding the outreach on regional aquatic invasive species issues; developing greater informational pieces on liquid natural gas as a transportation fuel, and improving cross-border labor mobility. Action items for 2013 can be found on page 14. For more information, including presentations and agenda, please visit www.pnwer.org/ 2013wintermeeting

“Canada will never have the type of relationship with another country that we have with the United States” - Dr. Ian Brodie, Director of Research, School of Public Policy, University of Calgary

Dr. Ian Brodie, Director of Research, School of Public Policy, University of Calgary, and former Chief of Staff for Prime Minister Stephen Harper, made the case for Canada, the U.S. and Mexico to work together to build a North American economic agenda.

Invasive Species Aquatic invasive species concerns were a major focal point during both the Legislative Leadership Academy and the Economic Leadership Forum. During the Legislative Leadership Academy, participants discussed ways that legislators and the private sector could work together to advance outreach on the issue of quagga and zebra mussels, and how they might fund inspections, outreach, and, in the future, possible control needs.

Rep. Eric Anderson, Idaho, provides background on the economic and ecological threat posed by invasive freshwater mussels.

John Brosda, Director of Industry Programs and Standards Enterprise and Advanced Education for the Government of Alberta spoke on workforce mobility in the northwest.

The threat of an introduction of zebra or quagga mussels is real, with an infestation projected to cost millions annually for hydro facilities, water infrastructure, irrigation and recreational boats and marinas. In the United States, congressional researchers estimated that an infestation of zebra mussels in the Great Lakes cost the power industry alone $3.1 billion in the 1993-1999 period, with a total economic impact on industries, businesses, and communities of more than $5 billion. With the economic threat in mind, the Economic Leadership Forum session focused on how the region can better collaborate to prevent an infestation, recognizing that an infestation in one jurisdiction will mean infestations in the others thanks to our interconnected waterways and recreation sites. Participants learned that the recent discovery of zebra mussels in Manitobaâ&#x20AC;&#x2122;s Lake Winnipeg means the threat is closer then ever before.

Workforce A major portion of the forum included a plenary session on workforce issues in Alberta and the region. Colin Smith, the working group co-chair from APEGBC, kicked off the plenary session with highlights of what the Workforce Development working group has been engaged with over the year. The plenary panelists included, John Brosda, Director at Industry Programs and Standards, Government of Alberta; Mike Wo, President, Boreal Recruitment Solutions; Brett Mattei, Consul, U.S.

Consulate General, Calgary; and Rep. Mike Cuffe from Montana. All the speakers highlighted the need for workforce in western Canada and how temporary foreign workers (TFW) might fill some of the gaps in the Province. Areas of interest included how to streamline some of the processing times for TFW coming into Canada; aligning trade credentials across the border; and aligning U.S. service members training with Canadian requirements.

Speakers also raised issues around apprenticeship training in schools and the need for support from industry to hire apprentices. The working group continues to provide advocacy for improving workforce mobility and facilitating stakeholder meetings around the region and with our Federal partners. The forum was a great opportunity for PNWER Delegates to learn more about this critical need in the region. 11

Winter Meeting

Legislators provide insight into upcoming energy legislation. From left to right, Sen. Kevin Ranker (WA), Norm Letnick, MLA (BC), Sen. Cliff Larsen (MT), Rep. Mike Chenault (AK), Rep. Deb Boone (OR), Sen. John Coghill (AK), Rep. George Eskridge (ID), and working group co-chair Rep. Charisse Millett (AK).

Energy

The energy session featured Gary Weilinger, Vice President of Spectra Energy and Norm Letnick, MLA, Parliamentary Secretary to the Premier for Intergovernmental Affairs, British Columbia, discussing the role of LNG in the region. Weilinger emphasized the importance of investing capital while

securing new markets to generate returns, the tremendous amount of interest in the development for associated natural gas liquids in Albert, and the need to obtain the social license for infrastructure projects. Letnick gave an overview of the ten LNG projects under development in BC. The projects

provide job opportunities while also reducing greenhouse gas emissions. The session concluded with legislators from Washington, Oregon, Idaho, Alaska, British Columbia and Alberta discussing upcoming energy legislation and important issues for the 2014 legislative session.

Alberta Floods The Winter Meeting provided an opportunity to look at the Alberta Floods that occurred in the second half of June. Panelists representing a cross section of government and academia shared their lessons learned from the disaster response and recovery. The sudden and intense onset of flooding that occurred outside of the normal pattern for flooding caught agencies and people unprepared for the significant flash flooding that followed. Complicating the situational awareness of the extent of flooding was the loss of all flood instrumentation, which was destroyed due the extent of the flooding. Panelists shared how the community as a whole responded to this event in Calgary and beyond. Of particular note was the outpouring of support from members of the Alberta community not directly impacted by the flooding. This involved neighbors and strangers descending on neighborhoods and helping with the clean-up process in individual homes. The difference in how United States and Canadian Federal governments respond to disasters was emphasized. For instance, in Canada, there isnâ&#x20AC;&#x2122;t a Federal Flood Insurance Program, and this was likely the most costly disaster in Canadian history. 12

David Galea, Executive Director of Public Safety Issues, Alberta Emergency Management Agency, discusses Albertaâ&#x20AC;&#x2122;s emergency flood response.

One highlight from the session was the focus on building back in a manner that reduces the flood hazard or removes properties from the floodway to reduce the danger of incurring repeat damages in the future. After the Winter Meeting, later in November, Alberta Premier Alison Redford announced that consultation and environmental reviews are set to begin on a diversion channel around High River, a city impacted significantly by the flooding, and construction of a flood control dam upstream of Calgary.

The Legislative Leadership Academy class of 2013. The Legislative Leadership Academy is designed to assist elected legislators develop important relationships with their counterparts across the border, and better understand the practical differences between the state and provincial political systems.

Legislative Leadership Academy For the 4th bi-annual PNWER Legislative Leadership Academy, leaders throughout the region participated in two days of seminars on the U.S. and Canadian political systems, involving interactive workshops, and in-depth discussions. The goal of the Legislative Academy is to help existing legislative leadership develop important relationships with their counterparts across the border, and help them better understand the functioning political realities of the state and provincial governments through a series of hands-on workshops. The Academy provides an excellent opportunity for leaders in the Canadian provinces and territories to understand how decisions are made at the U.S. federal and state levels, and conversely, allows an opportunity to U.S. state-level legislative and executive branch leaders to better understand the decision process at the Canadian federal and provincial levels.

Rep. Mike Chenault, Speaker of the House, Alaska; and Sen. Tim Sheldon, Senate President Pro Tempore, Washington. The second day of Legislative Academy featured three facilitated breakout scenario driven tabletops on significant issues facing the region (cross-border energy infrastructure, the Columbia River Treaty, and invasive species). Attendees from the private sector joined legislators for these sessions and greatly aided the session discussion with their expertise. The Legislative Leadership Academy concluded with a graduation ceremony where over 25 legislators were awarded certificates for graduating from the academy. For more information on the 2013 Legislative Leadership Academy, including the meeting agenda and participant manual, please visit www.pnwer.org/2013wintermeeting

The development of education materials and instruction for the institute was provided by Dr. Don Alper from Western Washington University and Dr. Michael Treleaven from Gonzaga University. The first day of Legislative Academy featured a keynote by Hon. Jackie Jacobson, Speaker of Legislative Assembly of the Northwest Territories, discussing the Northwest Territories’ system of “Consensus Government.” This enlightening speech was followed by Rep. Jeff Morris, Washington, moderating the “View from the Speaker’s Chair” panel, which was a comparative look at the role and function of the Speaker of the House, Senate President Pro Tempore and the Speaker of the Legislative Assembly in state/provincial governments. This session featured Hon. Jackie Jacobson, Speaker, Northwest Territories; Hon. Don Toth, former Speaker, Saskatchewan;

Sen. Arnie Roblan, Oregon, explains the system of campaign finance in the U.S. to his fellow Legislative Leadership Academy students.

Action Items 2013 Working Group Action Items PNWER delivers results on regional issues through action plans developed by working groups which meet each year at the annual meetings to address the regionâ&#x20AC;&#x2122;s key priorities. These Action Items were first established at the 2013 Annual Summit in Anchorage, Alaska. Additions were made at the Economic Leadership Forum in Banff, Alberta. Each working group is co-chaired by an industry leader and a legislator. These are a summary of the 2013 Action Items. Additional detail can be found online at www.pnwer.org. Agriculture

Focuses on the Regulatory Cooperation Council Action Plan, specifically agricultural topics, including food safety, mutual reliance of food testing results, and crop protection products. The Agriculture Working Group strongly endorses the Canada-United States (U.S.) RCC Joint Action Plan initiatives related to agriculture. The PNWER Agriculture Working Group is committed to working with the RCC to identify new areas of collaboration on regulatory alignment. The Working Group commits to providing the RCC with a list of potential new initiatives and input on the overall RCC process by October 31, 2013. The Agriculture Working Group encourages the U.S. Congress to implement a legislative resolution that will build markets for U.S. products at home and overseas rather than implement additional regulations and requirements for our meat producers and processors. The PNWER Secretariat commits to submitting a resolution to all members of the Pacific Northwest Congressional Delegation as well as the Chairman, Chairwoman and Minority Ranking Members of the House and Senate Agriculture Committees, the Secretary of the U.S. Department of Agriculture and other state and federal officials as it is deemed necessary. The working group also encourages PNWER state legislators to directly

contact congressional representatives to express their opposition to COOL for beef and pork from Canada. The Agriculture Working Group strongly supports the TPP negotiations. The PNWER Agriculture Working Group encourages our federal governments to negotiate an ambitious agreement that liberalizes agriculture trade that will benefit our producers and consumers. The PNWER Agriculture Working Group will prepare and circulate a draft document of items members would like included in an agreement. The working group will then host a conference call to discuss and finalize the recommendations and provide them to the Canadian and U.S. federal governments in support of the TPP negotiations. The Agriculture Working Group took note of the work done by with Canada-U.S. Grain and Seed Trade Task Group and other industry groups and will continue to monitor this situation. The PNWER Agriculture is committed to building a stronger relationship with the Canada-U.S. Grain and Seed Trade Task Group and is committed to facilitating PNWER industry input into the ongoing activities.

Enhances relationships and network-building between U.S. and Canadian jurisdictions, exchanging information Cross-Border on animal health issues/concerns, developing a common understanding of disease policies, advancing Canadian Livestock Health and American animal health interests, and identifying and executing action items to collectively address animal and cross-border issues. Explore having Cross Border Livestock Health Conference Working Group develop a One Health risk communication strategy in conjunction with the PNWER Health Care Working Group on issues that affect human, animal and environmental health. The Cross Border Livestock Health Conference Working Group form a sub-committee to develop a list of issues to propose to the Regulatory Cooperation Council request for new action plans. This will include joint recognition of equivalent animal welfare standards and a communication plan on animal welfare perceptions and realities affecting both Canada and USA livestock industries. 14

The Cross Border Livestock Health Conference Working Group propose that the RCC encourage CFIA to adopt the electronic certification system Veterinary Export Health Certification System (VEHCS) for livestock that USDA-APHIS has already begun piloting in March 2012. Form a working group to discuss import/export requirements of livestock at the border and determine if there are any processes that can be harmonized.

Border Issues

Addresses challenges in mobility of trade and citizenry at the border, providing insight to the Beyond the Border Action Plan and pursuing a working border between the U.S. and Canada. Draft letters of support to extend hours at the Wildhorse Border Crossing in Alberta/Montana to both US and Canadiana officials (CBP, CBSA, Public Safety Canada, DHS).

Draft a letter and hold a conference call to encourage the development of a mobile application to simplify, streamline and expedite clearance procedures for cruise passengers.

Re-invigorate the PNWER Border Solutions Council, created in 2009 in preparation for the 2010 Winter Olympics. The Border Solutions Council would propose workable solutions to border problems that would be communicated to Canadian and US officials as part of the BtB and RCC engagement process.

Send a letter to appropriate parties to urge our respective federal governments to review and revise country-of-origin labeling requirements to mitigate negative impacts on cross border agricultural and animal trade.

As the RCC and BtB proceeds with new initiatives it is vital that existing actions be implemented and assessed as to their impact on trade and commerce. Both RCC and BtB actions, as they occur, need to be measured to gauge whether or not they are meeting the intended objectives and particularly how they are affecting businesses and stakeholders “on the ground.” PNWER should seek government and private sector funding to enable this research. Work with federal authorities (both US and Canada) to ensure that rules developed in the BtB process regulating business travel are transparent and fully accessible to business travelers.

Pre-clearance has lagged and it needs to be completed as soon as possible. PNWER should send a letter to Alan Bersin of DHS, and David Maloney, PCO Canada, highlighting PNWER’s support for BtB and to communicate pre-clearance, including passenger rail, this as a high regional priority. PNWER should urge the two federal governments to identify/assess options that would enable Canadian and US passports to be compatible with the RFID technology at the land border (e.g. new passport, retrofitted passports, Canadian passport cards, etc.) to reduce border wait times and increase security. PNWER should meet with Seattle Field Office of CBP Michele James to communicate these action items.

Helps to direct the activities of the PNWER Center for Regional Disaster Resilience with the goal of improving Disaster Resilience the Pacific Northwest’s ability to withstand, respond, and recover, protect its critical infrastructures from allhazards disasters. Seek grants to help in expanding the First To See social media management system to other states and provinces across the region. Educate Federal agencies in the beltway - on the logistics issues involved with spill response in Alaska and the Arctic. Consider using small scale tabletop exercises in D.C. to reach those personnel who don’t understand the difficulty of logistics in remote areas. Research grant funding opportunities that could assist in oil spill training. Train/create local immediate response capabilities in local areas since they are the first responders for the first 36 hours. Seek resources for this effort. How could Alaska/Yukon/NWT - US/Canada partner

for spill response? Designating a contact for each jurisdiction. Review the State of Oregon’s Disaster Resilience Plan for best practices that could be used by other PNWER member states/provinces/territories. Capture lessons learned from Alberta flooding response and recovery actions and share with other PNWER partners. Establish PNWER clearing house to review lessons learned from member states’ disaster response. Establish a state by state “Disaster Caucus” of interested legislators in each state and province and territory.

Action Items Energy I

Explores trends in energy transmission technology and shared challenges and best practices for energy policy.

Policy stabilization for labor mobility - engage both federal governments as well as state/fed/ province, and RCC - to pilot opportunities for resource skill certifications between jurisdictions along with regulatory, health safety regulations. Work on establishing common standards. Do an inventory of who has cross border training programs, and standards in place. Collaborate with PNWER Workforce group. Inventory cross border agreements for mutual aid to respond to disasters, oil spills, etc. and identify gaps that may exist. Seek funding to further develop mechanisms to share in response between jurisdictions and nations (US- Canada).

Energy II

Utilize PNWER website to share best practices and survey PNWER jurisdictions for case studies on successful early engagement strategies which involved indigenous peoples in planning major infrastructure projects. Seek contributors and stakeholders to work on a white paper to identify the gaps and regulatory barriers to resource development across jurisdictions.

Focuses on innovation and policy surrounding renewable energy technologies and finding ways to provide sustainable energy to fuel economic recovery and create a low-carbon future for North America. Inventory Arctic case studies for renewable development and storage technologies in the North for northern utilities, appropriate jurisdictions and federal agencies, encouraging renewable energy and storage development. Acknowledge models of success for Micro-Grids in remote communities throughout the region. Seek funding to develop white paper outlining cost/ benefits of renewable installations in Northern and remote communities – and explore ways to monetize, develop new resources (i.e. how to finance and identify the benefits of renewable installations). How do we harvest stranded renewables in remote areas? Seek funding to do a literature search (documents, studies) identifying all existing studies and analyses of all renewable resources in PNWER’s off grid regions. How can we build on specific successes in the Region - share best practice legislation on energy efficiency by posting on PNWER’s website. Develop on PNWER website specific bills, abstracts, and contact information for best practices. Develop white paper to highlight economic impacts of efficiency legislation and programs in the region to communicate with legislative committees. Develop PowerPoint on the above to share with appropriate committees during PNWER’s legislative Capital Visits.

Establish opportunities for private sector to provide meaningful input in arctic policy discussions (state/ territory/province - federal). Provide regional support for Canada’s initiative to engage private sector in the Arctic Council - referred to PNWER Arctic Caucus for implementation.

Work toward aligning efficiency standards for new publicly funded buildings. Explore energy efficiency standards for appliances and equipment in the region, and what are the implications of gaps and inconsistencies? Delineate public benefits for moving to common standards in the region. Consider creating a task force of members of the PNWER energy working groups to analyze Regional Transmission capacity. Look at WGA’s process to harmonize regional siting process and WECC’s inventory of sensitive lands that will facilitate transmission siting. Address multi-jurisidiction compact for multi-state transmission siting. Consider new PNWER award for exceptional work / progress in renewable energy and efficiency areas. Inventory status of who is doing what. Develop criteria for success – on a regional basis. Encourage increased dialogue between Pacific Coast Collaborative and NR CAN on appliance standards alignment. PNWER to develop a letter encouraging utility commissions to allow energy storage technologies in utility rate base.

Energy Storage

The Energy Storage Coalition (ESC) is committed to expanding the role of energy storage in a more affordable, clean, and reliable electric power system. Document case studies and best practices along full range of storage applications (economics + technical performance + PPAs). How can storage be used to help developers and utilities firm up wind? Identifying and enhancing coordination between research enterprises with relevant skills to support industry.

Health Care

Framework for utility regulators to look at storage - is there a model that could be relevant to challenges faces by utilities/developers related to installed wind projects?

Addresses cross-border issues including: business, technologies and other regional issues related to health care challenges. PNWER should work with legislators and governmental regulators to lessen barriers to rapid adoption of useful telemedicine capabilities. ***Analysis of PNWER member states and provinces existing laws related to telemedicine to advise others on best practices and potential barriers***

Innovation

Identify funding opportunities that could be â&#x20AC;&#x2DC;pooledâ&#x20AC;&#x2122; to move industry forward.

PNWER should assist in pharmaceutical supply chain regulation across borders to protect the health of Canadian and US patients from false or adulterated medications.***Inventory and circulate information to state medical and pharmacy boards and associations on the dangers of illegal importation.

The Pacific Northwest region must channel the strengths of its many separate resources into a collaborative, comprehensive effort that maximizes the economic benefits of regional innovation. Hold a session at the Winter Meeting on Best Practices in IP and further identify areas of collaboration.

Market Access

Aims 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. Agreement to continue working on market access challenges with PNWER. In Novemberâ&#x20AC;&#x2122;s PNWER meetings, in Banff, facilitate a sharing of best practices by governments on means of building social license needed to advance market access for their commodities.

Action Items Invasive Species

Addresses the regional economic and environmental impact of invasive species and promotes regional collaboration and sharing of best practices. Develop a white sheet on Marine Invasive Species Regional Response Plan and explore possible PNWER involvement in plan implementation/oversight. Investigate a PNWER Regional Compact for Invasive Species Prevention. Develop a PNWER Regional Noxious Weed List the identifies the Level of Invasiveness for each species Implement a PNWER Aquatic Invasive Species Regional Passport. Develop a Feral Pigs Regional Management Program. Develop a Long-Term PNWER Roadmap that identifies key regional pathways for invasive species introductions during the next 3-5 years. Encourage Implementation of an Electronic Database that tracks movement of high-risk boats from water bodies infested with quagga/zebra mussels. Encourage the inclusion of a representative from each of the state and provincial invasive species councils on a newly developed PNWER regional invasive species council. Develop a white paper on the importance of Monitoring of Local Waterways for Invasive Species. Encourage Rapid Response Planning in state and

Mining

Letter to provincial premiers (BC, AB, SK) to emphasize the need for mandatory boat inspections. All western states that are mussel-free have mandatory boat inspections. With the new zebra mussel infestation in Lake Winnipeg, MB, the threat is much closer to all western jurisdictions. Work on developing a regional education strategy, including potential funding sources, which would include materials for outdoor groups, boat manufacturers, etc. US: Work on federal strategy to “barricade Lake Mead.” Approach new Secretary of Interior (Sally Jewel). If successful, this could be a pilot project for containment in the west. Canada: Letter to federal government (Dept. of Fisheries & Oceans; Environment Canada; Prime Minister, etc.) to “barricade” Lake Winnipeg (dedicate resources to contain zebra mussels from moving from Lake Winnipeg).

Identifies best practices for environmental sustainability in the mining sector while fostering natural resource development. Strategic minerals inventory of the PNWER region. More comprehensive analysis and dialogue on the importance of strategic minerals such as rare earth elements and potash as important for supporting other industries like agriculture. Get success stories from regions on innovation, solutions, implementation. Using high performance computing to reduce barriers for environmental permitting and improving public trust. Solicit input from companies doing cross border business. Present those issues to federal partners. Engaging the Mining Associations in each PNWER jurisdiction to collect information; endeavor to gather

provinces through outreach letters and a brochure that describes best management practices PNWER will work with lead legislators in all jurisdictions to get a regional (phase 1) invasive species program that would develop a budget, suggest funding sources, and include statement of work for a regional coordinator.

comparable information on private sector prequalification requirements for businesses issuing RFPs for procurement opportunities across PNWER. Develop a proposal to hold a “Mining Boot Camp” for elected officials across PNWER along the lines of LEHI to better inform elected representatives about the Mining cycle and industry operations and legislation/ regulation across PNWER. Health and Safety Record Requirements and comparisons; more engagement of mining companies in the session planning and execution; more community engagement (Social license); Extractive Industries Transparency Initiatives (EITI).

Natural Gas

Works to increase regional collaboration regarding natural gas as a transportation fuel and the regional development necessary infrastructure. Develop handout related to policy differences and similarities in the jurisdictions of PNWER related to natural gas transportation. Draft a letter (and get signatures from stakeholders from around the region) to send to legislators to

support policies that will allow LNG and CNG to be taxed at similar levels of traditional fuels. Develop contact list for natural gas stakeholders in the PNWER region.

Ocean and Coastal Provides a forum of seaside jurisdictions to collaborate on the environmental and economic challenges facing our oceans and coastlines. Caucus Send letter to Governors and Premiers to encourage the continued monitoring for baseline & combine efforts so we can have better picture of entire coast. Continue to pursue West Coast Governors’ agreement on OA research and monitoring. During 2014 summit, facilitate a round table meeting of the ocean policy group and the energy group to discuss partnerships and the future of ocean acidification issues. Continue dialogue between Alaskans and other Pacific Northwest states to ensure joint efforts to meet challenges of increased Arctic shipping. Continue dialogue with National Ocean Council and advisory groups to ensure implementation of National Ocean Policy meets state needs. Inventory West coast governors alliance & Pacific Coast Collaborative (PCC) for the development of a marine debris alliance that includes British Columbia and Alaska. Work with state leads to create legislative bundle of “model” ocean legislation to share across states and provinces, regional best practices & legislation for prevention of events & response to marine debris (derelict vessels, ballast water). Share fishing gear tagging laws and legislation with coastal states and provinces, and develop white sheet on impact of fishing and shipping debris.

Encourage the state of Alaska to involve Oregon, Washington, and British Columbia as remote players in upcoming Alaska quake 50th Anniversary Exercise. Develop white sheet of best practices for Tsunami and Community Resilience. Draft letter of support for House and Senate Tsunami Debris bills (i.e. Bonamici’s bill). Emphasize that any new legislation must also increase funding for additional activities. Organize a session at 2014 summit for fisheries and maritime industry on green and renewable energy options. Facilitate collaborative data integration & visualization tools that cross state & national boundaries. Add Pacific Northwest assets to Arctic Council maps of assets (ports, support services, etc.). Consider establishing a permanent PNWER Ocean and Coastal Caucus. Support regional ocean observing systems (created under Integrated Coastal Ocean Observing System Act) by supporting reauthorization of ICOOS Act and by encouraging increased collaborations among Pacific systems and with Canadians.

Action Items Tourism

Helps address best practices and solutions to challenges in growing regional tourism. Most recently, the group has focused on marketing the region to the world as a tourism destination. Work with leaders in government across the border to eliminate needless restrictions on travelers who may have had DUI’s or minor offenses in the past. Many people face minor criminal charges, especially as young people and college students. PNWER believes these charges should not warrant being barred from crossing the border. Support efforts to market the PNWER region as a tourism destination by a) Inviting marketing experts from each PNWER jurisdiction to the winter meeting to discuss opportunities for enhancing regional tourism. b) Make initial steps to developing a tourism dashboard. Facilitate further NORPASS development by hosting meeting of ferry operator decision makers (marketing, IT and senior management) Cooperate with transportation sector to further develop quality and quantity of intermodal cross border travel experiences and connections to

attractions and continue to work collaboratively with PNWER’s other working groups, namely Border and Transportation. Send letter to PNWER Tourism leaders in the public and private sector, explaining that aboriginal tourism is a regional unifying theme that the PNWER Tourism Committee would like to invite them to a winter development meeting. Working collaboratively, we will examine the status of cultural and eco-tourism in each jurisdiction and see where the opportunities are to improve partnerships between aboriginal communities and government/ industry. We will learn from best practices such as Hawaii’s tourism marketing campaign, which has also helped to revitalize Hawaiian culture and language. Support efforts by CLIA to increase flexibility in meeting ECA goals

Trade & Economic Many of the states and provinces are each others’ largest trading partners. This group helps states, provinces, and territories work together on improving the process of trade between our two nations. Development Develop principles to submit to the government of Canada to ensure a sustainable structure and effective representation for enterprises of all sizes during the development of the Arctic Business Council. Establish contact between state and provincial directors of commerce and legislators through a conference call to determine the interests in creating joint international trade offices. Coordinate with jurisdictional leads to determine how to best engage with native groups to have them take greater part in the Arctic Caucus. Work individually and collectively to help create the North American Arctic Business council - in concert with Canada’s lead on creating a circumpolar business council

Work with jurisdictions to develop materials (maps, etc) which illuminate the possibilities and the economic linkages throughout the PNWER region. Create new logo to help emphasize the importance of the Arctic to PNWER Explore the possibility of having Nunavut join PNWER as an observer. Engage more with the government of Nunavut to invite them to PNWER or Arctic Council Events [It was noted that Canada already has many Pan Territorial events and significant cooperation between the 3 Northern Territories] Put together delegation from PNWER (business leaders, aboriginal groups, provincial/state legislators) to go to D.C. or Ottawa to emphasize the importance of the Arctic.

Transportation

Focuses on the infrastructure of our major corridors and gateways, with a special interest on border infrastructure. The group is also addressing critical bottlenecks for freight mobility in the region. Secure additional resources to develop a legislative primer which will incorporate recommendations from the Transportation Working Group, Tourism Work Group, Border Solutions Council, and International Market Access. The primer would also utilize social media platforms and a website. A table of contents/ budget will be developed for Banff Meeting.

As a follow-up to the successful pre-PNWER Summit tour in Vancouver/Prince Rupert Ketchikan, a proposal for a border/Puget Sound Gateway and Two-Nation vacation tour in 2013/2014 and a Columbia/Snake River/North Idaho trip in Nov. 2014 will be presented at the Winter Meeting in Banff in November.

Identify the driving forces of cross border economic prosperity including workforce, infrastructure, mid market businessâ&#x20AC;&#x2122; market share, harmonized regulations, and international trade. Water Policy

Through its Water Policy Working Group, PNWER is beginning a dialogue to address important regional water issues such as the renegotiation of the Columbia River Basin Treaty and the effects of climate change on water management. Development of a meeting of PNWER based research universities with a focus on water and water policy as the beginning of new collaborations to tackle existing and emerging water issues. We will work collectively to develop an agenda of high priority issues requiring the benefit of scientific research, analysis and synthesis and then work to coordinate activities and find new cross border opportunities for research collaboration between institutions, business/industry and government.

Workforce

Possible topics for a future workshop/webinar: Columbia River Treaty Update, flood control, funding of management/data systems (integration of these between US/Canada), water storage (upstream/ downstream uses), mapping governance and legal issues, how discharge standards (EPA) will be implemented at the state level and the regional impact.

Identifying the barriers to addressing labor shortages, the key stakeholders, and specific actions that can be implemented to alleviate these shortages. Highlight rural areas where resource development offers employment opportunities and access to education by those indigenous people groups. Highlight successful programs and best practices. Invite appropriate commissioners/ministers of education and labor/workforce to present and listen. Invite key business leaders. Engage with members of the Arctic Caucus to ensure regional representation Include Federal representative Canada/US present at next meeting. Engage federal representatives for regional solutions across borders/jurisdictions. Convey more autonomy to jurisdictions/states. Ongoing Action Items, Professional Credential Recognition 2005: Licensing Reciprocity - Urge licensing bodies to

adopt reciprocal professional credential recognition for engineers who have successfully practiced for a set number of years. Assist licensing bodies in preparing amendments to rules or policies to enable reciprocity of licensure. 2010 (amended 2011): Pursuant to PNWERâ&#x20AC;&#x2122;s 2006 resolution calling on all PNWER jurisdiction 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.

Center for Regional Disaster Resilience The Center for Regional Disaster Resilience (CRDR) continues to be a leader in breaking new ground. This year saw an increase in the number of recovery projects that cut across the spectrum of community functions including general government to the broader maritime regional community. Disaster recovery is a noteworthy element of most of the Center’s projects. Recovery has become a hot topic due to recent national and international disasters that have focused attention on the complexities of our modern environment and the many interdependencies that exist between our societal workings and the critical infrastructure that supports business and government functions. One only needs to look at the continuing impacts of Super Storm Sandy on New York and New Jersey to understand the ramifications of these larger events. The CRDR also recognizes that Homeland Security grant opportunities are dwindling as Federal funding has decreased significantly over the last

few years. The formation of regional alliances and establishing agreements will be even more critical in that they allow organizations to support one another when disasters strike. One such effort that the CRDR has underway is the promotion of a mutual aid agreement between Puget Sound Ports. We expect the coordination of an agreement to take place in 2014. Much of the focus on disaster resilience has been the result of major disaster events in the past. Now to become more effective we need to anticipate future challenges and work towards solutions before the problems present themselves in the form of lost lives and property destruction. With all the other challenges that governments are facing it is understood that disasters are not always front and center in the minds of our citizens and leaders. The Center seeks to develop long range solutions, engaging all stakeholders in a system wide effort to build resilient infrastructure and prepared communities.

United States Coast Guard Captain Scott Ferguson, Captain of the Port, Sector Seattle asks participants of the Puget Sound Regional Maritime Transportation Disaster Recovery Exercise Program to really consider the importance of the waterways to their businesses and Seattle’s economy.

What’s Next

for the

CRDR?

• Assisting legislators in their individual states and provinces to better understand the natural and technological risks that their communities face and how they as individual legislators can positively impact the building of resilience within their jurisdictions. One path forward is the possible formation of legislative caucuses that focus on disaster resilience to improve information sharing and knowledge among legislators and their staffs. • Assisting the City of Seattle with the development of the a stakeholder driven disaster recovery plan. Defining the process for how decisions will be made and who is involved in the decision making process are key elements of this planning effort. From watching other catastrophic disasters in other parts of the world we know that following a disaster communities have the opportunity to rebuild and become more disaster resilient in the process. • Partnering with Snohomish County Emergency Management and Everett Emergency Management to hold a series of workshops which will introduce participants to the FEMA structure for recovery, known as Recovery Support Functions (RSF). Participants will learn which RSF they fit into; integrate with RSF partners; and provide input on the development of a “playbook,” which can be used as a guide for organizations post-disaster. • Enhancing the resilience of the region’s supply chains through a series of workshops and projects looking at relationships between the ports; partnerships between the public and private sector; and identifying tools and messaging to ease the process.

Puget Sound Regional Maritime Transportation Disaster Recovery Exercise Program Throughout 2013 PNWER, along with our partners Dynamis, the Beckett Group, BERK, and Simudyne, has helped lead the Puget Sound Regional Maritime Transportation Disaster Recovery Exercise Program. This exercise series was designed to enable the members Puget Sound maritime transportation community to advance their capabilities to reinstate their respective operations quickly after an emergency or disaster. The program involves the Ports of Tacoma, Seattle, Everett, and Olympia, and is focused on the following key elements: engaging a diverse and sustainable community of interest for maritime transportation disaster recovery in the Puget Sound region; examining the regional financial and economic impacts of the exercise scenarios; and presenting the recovery efforts and associated economic Gerry Fiola, Security Manager, Port of Tacoma, speaks of lessons learned from the initial exercises impact through a common visual simulation. with Ed Madura, Security Director, Port of Everett and Jim Knight, Acting Director – Marine Terminal, Port of Olympia (not pictured).

During the summer in the first phase of the project, four discussion driven tabletop exercises were held at each of the previously mentioned ports focused on recovering from a man-made emergency incident. The second half of the project focused on regional recovery following a major earthquake. This phase kicked off on October 29 at a meeting at the Museum of Flight in Seattle, WA. This meeting will be followed up by a large regional exercise in February 2014 at the Greater Tacoma Convention Center.

FirstToSee group of agencies and up to three private sector companies. This process will take about six months. We are also looking at how the system can be sustained long-term and continue to evolve as technology continues to change.

PNWER lead a revolutionary effort to develop a social media management system that both the public and private sectors can use to obtain better situational awareness before, during and after a disaster. The team putting together FirstToSee included Pierce County, Washington IT Department doing the technical work and PNWER/CRDR working with a group of stakeholders to identify the key elements of the software to make it functional. The original funding to develop the system came from a Port Security Grant. Today we are in the process of implementing a "soft launch" of the software with a select

Part of this project was the publication of the booklet, “Social Media for Emergency Management.” This was authored by Megan Levy and captures recent examples for the use of social media in disasters. Besides providing specific information on social media tools like Twitter, the information in the publication documents how these tools can be used by emergency managers to achieve better situational awareness and to also communicate with the general public. Copies of this publication are available for distribution. For more information go to the website at www.firsttosee.org and click on the Resource tab for some great videos that explain the power of social media and for how this new citizen app and background software interface.

Legislative Energy Horizon Institute (LEHI) “The Legislative Energy Horizon Institute provides an essential baseline educational foundation for policy considerations and advancements. It covers a broad spectrum of energy issues in a fair and balanced way. I am deeply grateful for the opportunity and would highly recommend the Institute for policy makers. – Rep. Norma Smith, Washington The PNWER/NCSL Legislative Energy Horizon Institute graduated the third cohort of state and provincial legislators on October 26 in Washington, DC. The graduation ceremony was held at the Canadian Embassy in Washington on a spectacular evening that allowed legislators a chance to experience the ‘best view in Washington’ of the Capitol and Washington Monument. Over 35 legislators fulfilled all the requirements for the certificate in Energy Policy from the University of Idaho, PNWER, and NCSL. They participated in a three and a half day session at the Pacific Northwest National Lab in Richland, WA July 6-9; and then a three day intensive program in Washington, DC on October 23-26. The in depth curriculum focuses on how energy infrastructure operates. The complex issues associated with electricity,

natural gas, and petroleum infrastructure and regulations governing infrastructure, and interdependencies between those infrastructures. The third class of LEHI brings the total of LEHI graduates to 90. These alumni have gone on to become leaders in their respective state and provincial governments in energy. Two of the three Provincial Energy Ministers in the PNWER Provinces are graduates of the class. The Interim Energy and Environment Chair in Idaho, Senator Curt McKenzie, is a graduate, as is the Natural Resource Chair in Alaska, Rep. Charisse Millet. Next year’s class will again have two in-person programs, one in Richland, WA in August, and the second in Washington, DC in November.

“I was one of the legislators tasked with drafting and carrying a bill that reflected the recommendations of the governor’s task force on climate change. The bill did not pass. I can’t help but believe that we might have succeeded if I had the knowledge and resources available through LEHI when the legislation was being considered.” – Sen. Mark Miller, Wisconsin

Top: Furc Commissioner Phil Moeller speaks to the Legislative Energy Horizon Institute. Left: Over 35 legislators from throughout the U.S. and Canada completed the 60 hours of LEHI coursework in 2013. Bottom right: LEHI graduates were honored at the Candian Embassy in Wahsington, D.C.

Arctic Caucus Arctic Issues, Global Growth This was a tremendous year for the PNWER Arctic Caucus. Members of the Caucus took part in several important meetings and events across the region and in Washington, D.C. The Caucus also had the opportunity to showcase and educate PNWER Delegates about the Arctic at the PNWER Annual Summit in Anchorage. For the second year in a row, the PNWER Arctic Caucus

has hosted a remarkable, informative session attended by a diverse array of stakeholders, subject matter experts, and policy makers on March 7, 2013, in Washington, D.C. This year’s round table discussion was an opportunity for the Caucus to receive an update on U.S. and Canadian federal priorities in the Arctic. Caucus members had the chance, as well, to highlight continued interest in working together across borders to address collective challenges and leverage efforts. Sheila

Riordan, Minister of Political Affairs from the Embassy of Canada and Evan Bloom, Director of the Office of Ocean and Polar Affairs, U.S. State Department gave an informative overview of what each country is doing in regards to Arctic development. The PNWER delegates were encouraged by the ‘human focus’ and the emphasis on the future livelihoods of the people of the North in the Canadian themes for their leadership of the Council. Alaska’s Senators Mark

United States Senator Lisa Murkowski, seen here with Barry Penner, Davis LLP, addressed the Arctic Caucus Round Table during the Caucus’ visit to Washington D.C. in March. She applauded the involvement of the PNWER Arctic Caucus in bringing greater awareness to the fact the U.S. is an Arctic nation and every state is affected by the Arctic.

The PNWER Arctic Caucus met in Yellowknife, Northwest Territories on November 16-18, 2013 for two great sessions related to the Arctic. Starting on the evening of November 16, the Centre for International Governance Innovation hosted an all day Arctic Maritime Roundtable

highlighting infrastructure needs, opportunities and challenges. Also, Rep. Bob Herron of Alaska gave a presentation on the Alaska Arctic Policy Commission and provided an overview of how the State is working on developing a strategy based on input from people in the North.

Begich and Lisa Murkowski both expressed strong support for PNWER and the Caucus and Alaska’s role in the Arctic. Both expressed keen appreciation for deepening and broadening Arctic awareness. While it’s true that increasing attention is being paid to the Arctic, especially within D.C. and in the investment community, it remains low on many priority lists for other members of Congress. Both Senators stated they are actively working to address this.

United States Senator Mark Begich, Alaska, speaks to the round table Arctic Caucus Round Table, with Evan Bloom (far left), Director of the Office of Ocean and Polar Affairs, U.S. State Department.

The following day, PNWER hosted an Arctic Roundtable that included Mitch Bloom from Canadian Northern Development (CanNor). He spoke via teleconference on the development of the Circumpolar Business Forum (CBF). This is a major initiative of Canada during their Chairship of the Arctic

Council and an opportunity for the private sector to engage and inform the Arctic Council. PNWER’s Arctic Caucus will continue to work with business organizations in the North American Arctic to provide input into this process. 25

Capital Visits Delegation Visits to Washington D.C. and Ottawa Ottawa The PNWER officer's trip to Ottawa June 2-5, 2013 was an exceptional experience and a testimony to the credibility that the organization has developed over years of effective engagement on Canada â&#x20AC;&#x201C; U.S. relations. We met in Ottawa with a delegation of 14 Americans and Canadians, which included 6 elected officials: 2 Canadian Ministers, an MLA, and 3 U.S. legislators.

is the lead for Canada on Arctic Policy. Rep. Bob Herron from Alaska, Co-Chair of PNWER's Arctic Council, as well as the Alaska Arctic Policy Commission and Minister Mike Nixon, Attorney General and Tourism Minister of Yukon briefed him on the Arctic Caucus, and we discussed Canada's plan to launch the 'Arctic Business Council'. Patrick promised to join us in Alaska for the PNWER Summit. Our meeting with Minister of International Trade Ed Fast was exceptional. He was happy to get an in-depth view of key issues in Washington State from Rep. Jeff Morris, especially concerning oil spill response capabilities in the BC - WA maritime environment. He was also

President Hon. Lyle Stewart, Saskatchewan, gets commitment from Hon. Gerry Ritz, Minister of Agriculture, to implement e-certification for livestock.

Our first morning consisted of an hour and a half private breakfast with U.S. Ambassador David Jacobson and Sue Saarnio. Again, he called PNWER the "Gold Standard" for cross border collaboration. Ambassador Jacobson announced that he will be leaving his post on July 15, but he told us he hopes to come to future PNWER meetings. We then met with Patrick Borbey, President of Canadian Northern Development Agency (CanNor), who 26

glad to hear of the work we have done with Transport Canada and the U.S. Coast Guard on maritime commerce resumption between the Ports of BC and Washington. We had a good dialogue about the importance of Market Access for inland resources, and the sensitivities toward expanding commodity shipping capacity on the coast for coal and potash. We had an in depth discussion on COOL, TPP, and implications of these trade issues for our bi-national region.

Minister Vic Toews, Minister of Public Safety, was pleased we had already met with David Moloney, Kevin O'Shea, and Bob Carberry on the Beyond the Border and Regulatory Cooperation Council. We discussed with him the importance of state and provincial and private sector input into the BTB and RCC process. Our meeting with Minister Gerry Ritz, Minister of Agriculture and AgricultureFood (and Minister for the Canadian Wheat Board) also went very well. Our delegation being led by President of PNWER Agriculture Minister Lyle Stewart, also from Saskatchewan, was able to convey our stakeholders' strong advocacy for a regional pilot on electronic certification of livestock which would enhance food safety and save millions of dollars per year for cattlemen. John Masswohl, Director of the Canadian Cattleman's Association joined us for this meeting, and we were delighted to hear of the Minister's firm commitment to see such a pilot go forward before the end of the year. The delegation had a very good meeting as well with Serge DuPont, Deputy Minister of Natural Resources Canada focused on PNWER's Legislative Energy Horizon Institute. NR Can is a current funder of the Institute and there is a good chance they will continue to support the program along with the US Dept of Energy. Washington D.C. PNWER works with our federal partners on addressing how innovative regional policies can be used at the Federal level of government. The capitol visit to Washington, D.C. brought needed attention to the regional issues that challenge our jurisdictions. Our commitment to building relationships with our congressional delegation and Federal partners continues to be a priority for the region.

Capital Visits The delegation in Washington, D.C. met with Senator Patty Murray, Rep. Rick Larsen and Rep. Derek Kilmer of Washington; Rep. Steve Daines of Montana; and Rep. Bill Owens of New York and Co-Chair of the Northern Border Caucus. We also had the opportunity to talk with several staff members in the offices of Rep. Suzan DelBene, Rep. Dave Reichert, Rep. Doc Hastings, Rep. Denny Heck, Rep. Cathy McMorris Rogers and Senator Maria Cantwell. The PNWER Delegation included Rep. Doug Isaacson of Alaska; Herb Cox, MLA, Saskatchewan; Senator Kathy Giessel, Alaska; Barry Penner, BC; Dave Manning, Alberta; Egils Milburgs, WA; Matt Morrison and Steve Myers, PNWER.

State and Provincial Capital Visits Each year, PNWER Board Members visit regional and national capitals to discuss issues impacting our economy, promote the Annual Summit, and apprise state and federal leadership of PNWER’s programs. The PNWER Delegation visited Helena, Montana; Olympia, Washington; Boise, Idaho; Juneau, Alaska in January. Later in the year, PNWER Officers traveled to Washington, D.C and Ottawa as well as Calgary, Alberta and Yellowknife, Northwest Territories. Montana Energy and natural resource issues were common discussion topics during PNWER’s visit to Montana. The delegation presented on the progress of LEHI and the Transportation Working Group to the joint Natural Resources and Transportation Subcommittee of the Appropriations Committee as well as briefing a special joint House and Senate Energy and Natural Resources Committee session. The group enjoyed productive meetings with Gov. Bullock and Lt. Gov. Walsh as well as legislative leadership and executive branch

The PNWER delegation meets with Governor Steve Bullock in Montana. Energy and natural resource issues were a major topic of discussion during the visit to Billings.

directors. Washington In Olympia, the delegation had the opportunity to update several committees of PNWER’s engagement with the Beyond the Border Action Plan. The group also briefed the Senate Energy, Environment and Telecommunications Committee on the potential economic impact of invasive mussels and efforts by neighboring states to prevent the spread of these species. Of special highlight was the public welcome and introduction of the delegation during Gov. Inslee’s inauguration. Idaho The PNWER delegation updated Governor Otter and Lt. Gov. Little on the PNWER Idaho Council in Boise. Agriculture was a primary focus during several meetings with the director of the Department of Agriculture, State Veterinarian, and Idaho Farm Bureau. The private sector was welcomed at a reception following committee presentations. Alaska The Hon. Bob McLeod, Premier of the Northwest Territories, joined the delegation during the visit to Juneau,

Alaska. Meetings with legislative leadership centered on preparations for the Annual Summit in Anchorage. During a PNWER hosted lunch for legislators, Premier McLeod, Rep. Herron and Sen. McGuire spoke on the importance of PNWER’s work on Arctic issues. Alberta The Alberta Capital Visit took place in Calgary before the Winter Meeting and featured round tables primarily focused on agriculture, energy, and innovation. Several cabinet ministers briefed the group on Alberta’s initiatives in these areas including Hon. Diana McQueen, Minister of Environment and Sustainable Resource Development and Hon. Ken Hughes, Minister of Energy. Market access issues were also addressed during the visit. Northwest Territories In conjunction with the Arctic round table, a Capital Visit was held in Yellowknife in November. The group enjoyed learning about the consensus style government during a visit to the beautiful Legislative Assembly Building. The group learned about developments in natural resources, marine shipping, and other issues during the meeting.

Working Group Activities Invasive Species Concerns about invasive freshwater mussels led to growing partnerships throughout the region this year, as the PNWER jurisdictions worked together to address the threat of zebra and quagga mussels.

planning and bolstering funding for regional prevention programs.

So far, the Northwest has managed to prevent quagga and zebra mussels from taking hold in the region. These mussels are the most economically damaging aquatic organisms to invade the United States, costing an estimated $5 billion In May, PNWER, in partnership with Northwest Power in prevention and control efforts since their arrival in the Planning Council and the Pacific States Marine Fisheries late 1980’s. Based on impacts elsewhere in the U.S. and Commission partnered to host “Preventing an Invasion: Canada, there is good reason to believe that these mussels, Building a Regional Defense if allowed to colonize Pacific “A no vote is an invitation for disaster.” against Quagga and Zebra Northwest freshwaters, will Rep. Mike Cuffe explaining why Montana needed Mussels” in Vancouver, rapidly foul and damage the Washington. operations of hydropower, to pass mussel prevention legislation irrigation, industrial, This event brought together hatchery, and municipal legislators, government leaders water facilities so vital to in environment and invasive our economy. In addition, species control, utilities, and they pose a clear threat other impacted private sector to the extensive regional to explore the far ranging investments – federal, state, economic implications of tribal, utility, and communityquagga and zebra mussel based – intended to protect, infestations and develop an mitigate, and enhance action plan for protecting our salmon, steelhead, sturgeon, region’s waterways. Participants and other native aquatic had the opportunity to learn fish species, as well as the and provide feedback on watersheds on which these regional issues of importance fish depend. Rep. Mike Cuffe, Montana, took the region’s concerns about invasive such as hydropower vulnerability mussels back to his state, rallying support for a bill to support education assessments, rapid response and mandatory boat inspection stations.

Border Issues Throughout 2013 PNWER has continued to provide stakeholder input on the Beyond the Border Initiative and the Regulatory Cooperation Council (RCC). PNWER has played an important role in creating a ‘Stakeholder Coordination Council’ with business and chamber organizations across the U.S.-Canada border. On August 29, 2013 the U.S. Office of Management and Budget announced it was seeking stakeholder input on increasing regulatory cooperation efforts between Canada and the United States for a second phase of the RCC. The governments were looking for recommendations on how to institutionalize regulatory 28

cooperation between our two countries. In response to this announcement, PNWER submitted a list of 20 comments to both the U.S. and Canadian federal governments from our stakeholders. These comments were developed through our Idea Scale website, which is an online forum for discussion and idea submission, and from multiple meetings and conference calls. Additionally, PNWER was signatory to a submission made by the U.S. Chamber of Commerce and other cross-border stakeholders that was developed through monthly calls of the Stakeholder Coordination Council (SCC). The SCC aims to provide a centralized location for

border stakeholders to document the progress of the Beyond the Border Action Plan and the RCC. Furthermore the SCC has been used to organize and publicize events, provide real world examples of cross border issues and document successes. At the Summit, the Border Issues Working Group held a session involving numerous border stakeholders. Most notably, Deborah Meyers, U.S. Department of Homeland Security and Andrew Brown, Canadian Privy Council Office gave a joint update on the status of the Beyond the Border Initiative.

Financials The Pacific Northwest Economic Region Foundation operates as a 501c6 nonprofit organization. PNWERâ&#x20AC;&#x2122;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 contributions vary by company and amount and help fund projects, meetings and conferences. During the fiscal year ending September 30, 2013, PNWERâ&#x20AC;&#x2122;s total income was $1,594,698.41 and total expenses were $1,458,993.37.

Meeting Revenue 12%

FY13 Revenue

Gov. Grants & Contracts 37%

Statutory Dues 26%

Sponsorships 25%

Revenue Statutory Dues

416,000.00

Sponsorships

403,606.50

Gov. Grants & Contracts

591,583.94

Meeting Revenue

183,499.00

Total Revenue

1,594,689.41

FY13 Expenses

Administrative Costs 44%

Program Expenses 29% Meeting Expenses 27%

Expense Program Expenses

415,845.42

Meeting Expenses

397,710.10

Administrative Costs

645,437.85

Total Expense

1,458,993.37

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Offices Worldwide

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

Statutory Members Alaska Alberta British Columbia Idaho

Montana The Northwest Territories Oregon Saskatchewan

Washington Yukon

Private Sector Members The membership program is a way for individuals, businesses, public organizations, and non-profits to maximize their involvement in developing our regionsâ&#x20AC;&#x2122; policies, building new business connections, and learning of emerging opportunities and issues. AltaLink Anglo American U.S. (Pebble) LLC APEGA APEGS APEGBC ASET BP Canadian Natural CAODC Canpotex Ltd. Capital Power Corporation CAPP Carlile Transportation Systems CBI Canada Cenovus Energy Chisholm Ventures CN CropLife Canada ConocoPhillips

Cook Inlet Tribal Council Devon Enbridge ExxonMobil Fasken Martineau Fortis BC GCI HDR Holland American Line Idaho Farm Bureau Federation Marathon Nelson Mullins Northern Property REIT Northern Cross (Yukon) Ltd. NWGA PhRMA Princess Cruises Puget Sound Energy Shell

Spectra Energy Surrey Board of Trade Tervita TransCanada Wetaviq Ltd Verizon

Project Partners Legislative Energy Horizon Institute

Canadian Consulate General - Seattle

Emergency Management

Northwest Warning, Alert and Response Network

U.S. Consulate General - Vancouver

Natural Resources Canada

TransportCanada

Oregon Department of Agriculture

Seattle Police Department U.S. Department of Energy, Office of Electricity Delivery and Energy Reliability King County Office of Emergency Management Washington State Fusion Center

U.S. Coast Guard Pierce County RCPT National Conference of State Legislators (NCSL) Snohomish County Office of 31

A Message from the Premier On behalf of the Province of British Columbia, I invite and encourage you to participate in the 2014 Annual Summit of the Pacific NorthWest Economic Region. We are honoured that PNWER has chosen Whistler, British Columbia, to hold the Summit on July 20-24, 2014. British Columbia was a founding member of PNWER and actively promotes collaboration in the Pacific Northwest region through the close cultural, bilateral and multilateral links we have built with our neighbours. PNWER continues to nurture better understanding of our common interests and global responsibilities including climate action, border security, and infrastructure development. PNWER is a leader in fostering regional and international cooperation on priority issues such as energy, the environment, disaster resilience, economic development, invasive species, trade, tourism, transportation, and workforce mobility. The Whistler Summit will bring together private sector and government leaders to extend and strengthen our collaboration as a region. Our region often shares similar challenges as well as opportunities. By working together we can pursue our individual and collective goals and enhance the quality of life of our citizens. I hope you will be able to attend the July 2014 PNWER Summit in Whistler.

Christy Clark Premier

Save The Date

24th annual summit Pacific NorthWest Economic Region

July 20 -24, 2014 | Whistler, British Columbia

Strengthen regional leadership, learn about the issues of today, and work with legislators and leaders from government and the private sector from the U.S. and Canada during the PNWER 2014 Annual Summit in Whistler, British Columbia. Over four exciting days in the heart of the B.C. mountains, Summit participants will hold in-depth discussions on the challenges and opportunities for economic growth throughout the ten states, provinces and territories that make up PNWER. Networking opportunities and policy tours will give you a first-hand opportunity to take in both the beauty and innovative practices of our host province.

For more information, please visit: www.pnwer.org/2014Summit

Sessions and round table discussions to include: • Energy • Agriculture & Livestock Health • Renewable Energy • Innovation • Invasive Species • Workforce • Water Policy • Transportation • Tourism • Mining • Border • Natural Gas Transportation

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