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I am honoured to be able to serve this year as PNWER’s President. This region is unparalleled in the world in terms of 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 better create the opportunities of the future that our citizens deserve.

Hon. Lyle Stewart President Minister of Agriculture, Saskatchewan

I ask for your involvement, your ideas, and your support for the sake of this great region that we all 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 23rd Annual Summit in Anchorage, Alaska July 14 – 18, 2013. We need your input and your leadership. This past year has seen many challenges for businesses and government in the region, and working together to improve our competitiveness is even more important during challenging economic times. We invite you to work with PNWER’s leadership team to address 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, including the U.S.-Canada Maritime Resilience Project led by PNWER • Expansion of the PNWER Legislative Energy Horizon Institute to include legislators and MLA’s from most states and provinces of the region • A very successful PNWER Summit, which was the first ever held in Saskatchewan • Very substantive and significant meetings in the state and provincial capitals, and in Ottawa and Washington, D.C. representing regional priorities I want to acknowledge the work of Oregon State Rep. Mike Schaufler, PNWER’s immediate past president, for his exceptional leadership of PNWER in 2011-2012. I also want to thank the many private sector partners who have made our 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 more involved. We have the fortune of living in a great region that looks beyond borders, and encourages collaboration with innovative people who want to improve the lives of all citizens in the region. Together we can make a difference for our families, our states, provinces and territories, and our two great countries. Sincerely,

Hon. Lyle Stewart, President

Contents Introduction 2 4 5

Activities Timeline About PNWER Leadership

Conferences 6 10 12

22nd Annual Summit 23rd Annual Economic Leadership Forum Action Items

Programs 18 19 20 22 23 24

Arctic Caucus Forum Capital Visits Center for Regional Disaster Resilience (CRDR) Energy Beyond the Border Pacific Northwest Innovation Summit

Media 25

PNWER in the News

Finances 26 27

Finances Supporters and Partners

Upcoming Events 28

2013 Annual Summit

2012 TIMELINE Interdependencies Forum focused on economic recovery after a disaster hosted by Microsoft

"The 'Beyond the Border' Dialogue at Age One: Policy and Political Implications for the Pacific Northwest" meeting presented by Western Washington University’s Border Policy Research Institute and the Government of Canada

Joint PNWER/Energy Council meeting in Washington, D.C.

U.S.-Canada Regulatory Cooperation Council Meetings in Washington, D.C.

January Executive Committee winter capital visits to Washington, Idaho and Alaska

U.S. - Canada Maritime Commerce Resumption Strategy Kickoff



Maritime Social Media Project kickoff, Tacoma, WA

Beyond the Border Action Plan meeting with the USCG and Transport Canada in Washington DC

PNWER Arctic Caucus hosts the “U.S. - Canada Arctic Roundtable” in the U.S. Capitol Building in Washington, D.C.

Emerald Down II: Cyber Security Workshop and Tabletop Exercise Seattle, WA U.S. - Canada Workshop on Maritime Commerce Resumption Seattle, WA

July PNWER 22nd Annual Summit in Saskatoon, SK

2 • Pacific NorthWest Economic Region

Seattle event to address Alberta workforce needs


Pacific Northwest Innovation Summit Seattle, WA


Initial planning conference for the U.S.-Canada tabletop exercise on maritime resilience

Creation of the Idaho PNWER Council

Saskatchewan Capital Visit and Summit Host Committee Meeting Regina, SK

Maritime Commerce Resumption Strategy Workshop in Vancouver, BC


Hosted WAFirst Coalition meeting, an organization that enhances regional resiliency partnerships in the financial sector Seattle, WA Facilitated stakeholder roundtable with Simon Kennedy on the Beyond the Border Action Plan hosted by Canadian Consulate Seattle, WA



PNWER Innovation Visualization Project and Innovation Collaboration Survey Launch

3rd Annual Arctic Caucus Forum and Capital Visit in Whitehorse, Yukon Maritime Commerce Resilience Tabletop Exercise held in Everett, WA

National Homeland Security Advisors Meeting in Seattle, WA

Maritime Commerce Resilience After Action Meeting held in Vancouver, BC


Legislative Energy Horizon Institute, Washington, D.C.


Energy Storage Coalition Conference and meeting of Oregon and Washington Utility Commissioners in Portland, OR

Review of the Beyond the Border Action Plan progress, in its second year

December Final report on the U.S.Canada Maritime Commerce Resilience Initiative

PNWER 2012 Economic Leadership Forum held in Coeur d’Alene, ID

2012 Annual Report • 3


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 both the United States and Canada federal governments 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 crossborder forum for unfiltered dialogue that capitalizes upon the synergies between business leaders and elected officials working to advance the region’s global competitiveness.

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PNWER is the preeminent bi-national advocate for regional state, provincial, and territorial issues

Members of PNWER’s capital visit delegation meet with Alaska Governor Sean R. Parnell at the Alaska State Legislature in Juneau on January 19, 2012.

The Region’s Future With over $1 trillion (USD) in gross regional product, the US 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’s 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.

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.

2012 Executive Committee Officers

Hon. Lyle Stewart President Saskatchewan

Sen. Kevin Ranker Vice President Washington

Jurisdiction Leads

Delegate Council

Sen. Lesil McGuire Alaska

Alaska Gov. Sean Parnell Rep. Berta Gardner (Alt) Sen. Cathy Giessel (Alt) Rep. Bob Herron Rep. Doug Isaacson (Alt) Sen. Lesil McGuire Rep. Charisse Millett (Alt) Rep. Peggy Wilson

Ms. Alana DeLong, MLA Alberta Mr. Douglas Horne, MLA British Columbia Sen. Cliff Larsen Montana Hon. Currie Dixon Yukon Private Sector Representatives Colin Smith APEGBC Canada Co-Chair Dan Kirschner, NWGA US Co-chair

Hon. David Ramsay Vice President the Northwest Territories

Alberta Premier Alison Redford Alana DeLong, MLA Len Webber, MLA British Columbia Premier Christy Clark Douglas Horne, MLA Idaho Gov. C.L. Butch Otter Rep. Eric Anderson (Alt)

Bold = State/Provincial Lead

PNWER Staff Matt Morrison Executive Director Brandon Hardenbrook Deputy Director Steve Myers Program Manager Megan Levy Program Coordinator Gabrielle Nomura Communications and Media Coordinator Joe Larsen Border Program Assistant

Private Sector Council* Alaska Paul Quesnel, BP Cam Toohey, Shell Alberta Doug Bloom, Spectra Energy Dwain May, Capital Power Jeff Gaulin, Tervita Sonya Savage, Enbridge Scott Thon, AltaLink Peter Kruselnicki, TransCanada Bryan Maynard, Marathon British Columbia Don Dalik, Fasken Martineau Jason Wolfe, FortisBC Colin Smith, APEGBC

Sen. Curt McKenzie Vice President Idaho

Rep. George Eskridge Sen. John Goedde (Alt) Rep. Hy Kloc (Alt) Sen. Curt McKenzie Rep. Elaine Smith Sen. Michelle Stennett (Alt) Sen. Elliot Werk Montana Rep. Edie McClafferty (Alt) Rep. Mike Cuffe Sen. Jeff Essmann (Alt) Sen. Cliff Larsen Sen. Mike Phillips (Alt) Gov. Brian Schweitzer Sen. Chas Vincent Rep. Jeff Welborn (Alt) Rep. Kathleen Williams The Northwest Territories Premier Bob McLeod Hon. David Ramsay Robert Hawkins, NWT Oregon

Idaho Roy Eiguren, Arkoosh Eiguren Neil Colwell, Avista Russ Hendricks, Idaho Farm Bureau Tom Power, Sunshine Minting Ron Nilson, Ground Force Worldwide Montana Haley Beaudry, Columbia Falls Aluminum Co.

Rep. Mike Schaufler Imm. Past President Oregon

Gov. John Kitzhaber Rep. Deborah Boone Rep. Kevin Cameron (Alt) Rep. Bill Kennemer Sen. Rod Monroe Sen. Arnie Roblan Rep. Brad Witt (Alt) Sen. Doug Whitsett Saskatchewan Premier Brad Wall Hon. Bill Boyd Dustin Duncan, MLA Hon. Lyle Stewart Washington Gov. Jay Inslee Sen. Barbara Bailey (Alt) Sen. Maralyn Chase (Alt) Sen. Jim Honeyford Sen. Kevin Ranker Yukon Premier Darrell Pasloski Hon. Currie Dixon

Helterline Amy Keiter, SolarWorld Dan Kirschner, Northwest Gas Association Scott Farris, TC Saskatchewan Dennis Paddock, APEGS Scott Rudderham, Canpotex Jamie Miley, Cameco

The Northwest Territories Chuck Parker, Discovery Air

Washington Jan Romerdahl, US Bank William Kidd, BP Ken Johnson, Puget Sound Energy Jerry Cochran, Microsoft

Oregon James Baumgartner, Black

Yukon Don Pumphrey, NorthwestTel

*Private sector council includes key sponsors

2012 Annual Report • 5

2012 ANNUAL SUMMIT 2012 Annual Summit Working Group Sessions: Arctic Caucus Agriculture Aviation Bio-Fuels Border Issues Cross-Border Livestock Health Disaster Resilience Energy Health Care Innovation Invasive Species Natural Resource Development: Mining Natural Gas Vehicles New West Partnership Renewable Energy Trade and Economic Development Transportation Tourism Water Policy Workforce Development

More than 500 regional government and business leaders gathered July 15-19 in Saskatoon, Saskatchewan for the Pacific NorthWest Economic Region (PNWER) 22nd Annual Summit.

This was the first PNWER Summit hosted by the province of Saskatchewan. Delegates had the opportunity to visit the province and learn more about its economic prosperity through policy tours, including visits to potash and uranium mines, veterinary research centers, information technology communications centers, and more.

The Summit provided an opportunity for delegates to address issues facing the region, such as energy; cross-border collaboration for the control of invasive species; progress of the Beyond the Border Action Plan; and the development of aviation bio-fuels. Nineteen working groups met, including the Cross-Border Livestock Health Conference, Invasive Species Conference, Natural Resource Development: Mining and Disaster Resilience.

Keynote speakers included the Honourable Brad Wall, Premier of Saskatchewan; Gary Doer, Canada’s Ambassador to the U.S.; and a roundtable presented by the Women in Natural Resources Work Group featuring Dr. Brenda Kenny, President of the Canadian Energy Pipeline Association, and John Hofmeister, author of “Why We Hate the Oil Companies.” The roundtable was moderated by the Honourable Pamela Wallin, Senate of Canada.

PNWER working groups develop action items based on session discussions, which serve as PNWER’s work plan for the year. The 2012 Action Items are available on page 12.

For more information, including presentations and agenda, please visit:

22nd Annual Summit: The Power of Partnerships

Hon. Brad Wall, Premier of Saskatchewan, gives the keynote address at a luncheon hosted by Canpotex on the second day of the 22nd Annual PNWER Summit, July 16, 2012 in the Grand Ballroom of TCU Place.

6 • Pacific NorthWest Economic Region

Cross-Border Livestock Health Conference PNWER hosted state, provincial, territorial, and federal veterinarians, animal health, and industry representatives and elected officials from both Canada and the United States for the fifth Annual Cross-Border Livestock Health Conference. The event provided delegates with the opportunity to enhance cross-border cooperation on animal health issues through relationship and network building. Issues discussed included animal welfare and disease,

the National Pork Board’s Transport Quality Assurance Program, transportation initiatives, National Farm Animal Care Council, Canadian Animal Health Coalition, southern border issues, and an update on the Washington-British Columbia Live Cattle Electronic Certification Pilot Project. A full proceedings report and list of action items can be found at

“We are making great progress. We have, for example, added NEXUS lanes, made air cargo screening programs mutually recognizable and installed new passenger screening machines to end duplicate screening in Canadian airports,” explained Minister Toews. “More work continues every day to fully implement this new shared vision that represents the most significant step forward in Canada-U.S. cooperation since the North American Free Trade Agreement.” - Public Safety Minister Vic Toews, speaking on the Beyond the Border Action Plan

Top, left: Delegates network and mingle at the final reception of the 2012 Annual PNWER Summit, hosted by MacPherson Leslie & Tyerman LLP, Federated Co-operatives and Canpotex at the Western Development Museum in Saskatoon on July 18, 2012. (Above) Public Safety Minister of Canada, Vic Toews, outlines triumphs, potential of the Beyond the Border Action Plan on July 16, 2012. (Left) PNWER’s Executive Board Luncheon Meeting gets under way in the Salon Batoche, Delta Bessborough, on July 15, 2012.

2012 Annual Report • 7

2012 ANNUAL SUMMIT Workforce Development A new initiative is encouraging skilled American tradespeople from Pacific Northwest states to seek work in Northern Alberta and Western Canada. While unemployment has remained high in U.S. states such as Oregon and Washington, this area of Alberta has had a significant labor shortage due to gas and oil development. With the campaign slogan "What you're made of is what we're looking for," Edmonton Economic Development Corporation (EEDC) hit the streets of Seattle July 11 - 16, to promote the launch of a new labor campaign. The recruitment drive was designed to fill vacancies for heavy-equipment technicians, welders, steamfitters/ pipefitters, power engineers, and construction professionals in Edmonton and Northern Alberta.

(Left) Canadian Ambassador to the United States, Gary Doer, Government of Canada gives the luncehon keynote address at the PNWER Summit on July 18, 2012 in Saskatoon. (Right) The Hon. Gerry Ritz, Minister of Agriculture, gives the keynote address at breakfast on July 18, 2012 in Saskatoon.

8 • Pacific NorthWest Economic Region

"Our economy is expanding and we need more workers," says Mike Wo, EEDC executive director of economic development and growth. "We are looking for hard-working individuals who are considering working in Alberta for a few years while economic conditions rebound in the U.S." To put Alberta's economic growth into context, around $193 billion of major investments are underway or in the works, equivalent to 211 CenturyLink Fields or 175 Hoover Dams. "We want to encourage skilled tradesmen to stay within this region," said Colin Smith, former president of APEGBC and private-sector co-chair for the workforce working group, who has been collaborating with EEDC. Smith noted that the initiative will include a specific focus on assisting U.S. veterans in qualifying for temporary worker status in Canada.

2nd Annual Regional Invasive Species Conference The second annual PNWER Invasive Species Conference was held during the Summit. Following the success the previous year in Portland, Oregon, the Invasive Species work group hosted more than 35 participants for a day-long conference highlighting the economic impact of invasive species and emerging invasive species threats. The group works year-round to increase cross-

border collaboration on invasive species outreach and prevention. This summer, the group decided to move forward with the formation of a regional, bi-national invasive species council. State and provincial invasive species councils can only work within their own borders, but invasive species, such as quagga mussels, know no boundaries. The

partnerships formed through this Council will help stretch limited resources. This is just one of many goals outlined at the 2012 conference. The next Invasive Species conference will be held as a part of the 2013 Annual Summit in Anchorage, Alaska, and focus on emerging invasive species issues in the Arctic region.

University Presidents’ Roundtable This year marked the fourth University Presidents' Roundtable hosted at a PNWER Annual Summit. Presidents from across the region attended the day long event in Saskatoon, Saskatchewan. This crossborder regional forum for university presidents is the only one of its kind in North America. University presidents discussed issues and engaged with PNWER working groups on a number of critical topics important to the regional economy. This year, the roundtable looked at how members can continue to cultivate collaboration in the region and support PNWER initiatives. Special thanks to the University of Saskatchewan and Provost Brett Fairbairn for hosting and providing leadership for this great regional opportunity. In May of 2012, Royal Roads University held the first annual PNWER Business Idea Competition. This event resulted in a great collaborative experience and learning opportunity for university students that participated in the competition. Competition finalists from the University of Puget Sound, University of Regina, Whitman College and Royal Roads University were invited to attend and have their business ideas judged at an entrepreneurial boot camp with industry leaders. This year's winner was a team from Whitman College for an innovative chewing gum idea. Thanks again to President Allan Cahoon of Royal Roads University for his leadership on this tremendous cross-border student competition. More information is available at: http://management. Top: PNWER delegates attend reception hosted by the University of Saskatchewan following an engaging day with university presidents at the PNWER Annual Summit in Saskatoon, July 16, 2012. Bottom: Hon. Lyle Stewart, Saskatchewan Minister of Agriculture, is sworn in as the 2012-2013 PNWER President, July 15, 2012.

2012 Annual Report • 9

ECONOMIC LEADERSHIP FORUM The 2012 Economic Leadership Forum, held November 14-17 in Coeur d’Alene, Idaho gave participants the opportunity to further explore action items identified at the 2012 Annual Summit. More than 100 participants from throughout the region met at the Coeur d’Alene Resort. The Economic Leadership Forum sessions focused on innovation, transportation, workforce development and the Arctic Caucus. Plenary sessions included: a roundtable examining the second year of Beyond the Border and Regulatory Cooperation Council action plans as well as a discussion on the economic impact of invasive species to the region and the need to keep Quagga mussels out of PNWER waterways. Delegates also got to learn about energy policy in the coming legislative session; and the economy from both a public-and private-sector view point. Idaho Lt. Governor Brad Little kicked off the forum by speaking about the importance of business competitiveness and the role of state government in supporting policies that promote

jobs and investment. He then came back on the second day of the meeting to interview U.S. Senator Mike Crapo of Idaho about the current debt reduction negotiations to avoid the “fiscal cliff.” The program included key private sector leaders, Dr. Ed Schweitzer, founder and CEO of Schweitzer Engineering Labs; Ron Nilson, CEO of Ground Force Worldwide; and Tom Power, CEO of Sunshine Minting Inc. Our gracious hosts at the Coeur d’Alene Resort gave delegates a surprise trip to the “North Pole” and a beautiful fireworks display over the lake. Our group also got a behind-the-scenes look at key manufacturing sites Sunshine Minting, Inc. and Ground Force Worldwide, as well as the Kootenai Technical Education Campus, a best practice in vocational secondary school education that could be replicated in other parts of the region. For more information, including presentations and action items, please visit www.pnwer. org/2012WinterMeeting

Douglas Horne, MLA, British Columbia, and other PNWER delegates tour Kootenai Technical Education Campus, a best practice that could be incorporated in other parts of the region, November 16, 2012.

10 • Pacific NorthWest Economic Region

Invasive Species Working Group The Invasive Species Working Group held a plenary session to introduce participants to the need for regional collaboration on invasive species issues, and highlight the economic impact of invasive species. Using zebra mussels and quagga mussels as an example, the working group educated the audience about the financial and environmental hazards of invasive species. Zebra and quagga mussels pose a great danger to the ecosystems and economies of the regions they infest. With no effective means of controlling them, these mussels can take over any ecosystem they gain access to, clogging pipes and

disrupting infrastructure. Since being introduced to the Great Lakes, fish populations there have been reduced by an alarming 90 percent. This has cost the region $3-4 billion in hydroelectric power for more than six years. Prevention is the best plan, the working group emphasized. For example, Idaho has a system of inspection stations at major entrances to the state and a passport system to distinguish between low- and high-risk boaters. These stations have intercepted 93 musselfouled boats in the past four years, the majority of which have come from Lake

PNWER delegates are given a tour of key manufacturing sites in North Idaho, Ground Force Worldwide, which manufactures mining support equipment across the world, November 16, 2012.

Mead in Nevada and Arizona. The group also shared best practices for partnerships in the Region, highlighting the regional response that was pulled together when British Columbia discovered a fouled boat in their waters. The group set forth a plan for creating a stronger regional approach to controlling these mussels, noting that it could be used for many other invasive species threats.

Key private-sector members of the PNWER Idaho Council, Ron Nilson, president of Ground Force Worldwide, left; and Tom Power, president of Sunshine Minting (right), at the final winter meeting reception at Ground Force, November 16, 2012.

PNWER Idaho Council In September, Idaho Governor C.L. “Butch” Otter signed an executive order to create the Idaho Council of the Pacific NorthWest Economic Region.

Gov. C.L. “Butch” Otter and the PNWER Idaho Council, comprised of Idaho State legislators and key members of the business community September 13, 2012. On this day, Otter signed an executive order to create the Idaho Council of the Pacific NorthWest Economic Region.

The Idaho council aims to increase Idaho’s involvement in PNWER activities and increase the participation of the Idaho private sector and executive branch in all PNWER events. Through the council, Idaho can strengthen its economic and

policy partnerships with their neighboring states and across the border into Canada. The first effort of the council included assisting in the development of the PNWER 2012 Economic Leadership Forum in Couer d’Alene. Looking forward, we hope to increase PNWER’s effectiveness by encouraging the creation of state and provincial councils throughout the region. 2012 Annual Report • 11

Working Groups 2012 Action Items

The 2012 Action Items were first established at the 2012 Annual Summit in Saskatoon, Saskatchewan. Additions were made at the 2012 Economic Leadership Forum in Coeur d’Alene, Idaho. PNWER delivers results on regional issues through action plans developed by 20 working groups corresponding to the region’s key priorities. Each working group is co-chaired by an industry leader and legislator. These action items serve as PNWER’s Work Plan for the year. These are a summary of 2012 Action Items. For further details, please visit

Arctic Caucus The Arctic Caucus provides a forum within PNWER for the Arctic jurisdictions of Alaska, Yukon and the Northwest Territories to share information, discuss issues of mutual concerns, and identify areas for collaboration. This may include working with other jurisdictions and providing input to PNWER working groups.

2012 Action Items • Develop joint map-based resource inventory, infrastructure, demographics, and opportunity map of the Arctic Caucus Region (Alaska, Yukon, and NWT). • Bring a report on prospective models for an Arctic Infrastructure Development Authority, and establish a subcommittee to bring a proposal to the next Arctic Caucus Forum. • Facilitate the development of a pilot Automated Identification System (AIS) station in the Western Canadian Arctic. • Facilitate the development of a public common operating picture for Vessel Tracking and Search and Rescue, along with operational capabilities in the U.S.-Canadian Arctic. • Facilitate Arctic state/territorial/private sector collaboration for information sharing and coordination on oil spill planning, preparedness and response in the Arctic. • Develop a PNWER Arctic Caucus strategy to strengthen the voice of our arctic communities for the 2013-2017 Canada and U.S. Chairmanships of the Arctic Council, in

addition to other organizations the group recognizes. This should be a multifaceted strategy engaging the entire PNWER region. • Develop and create alignment on a common vision to forward the northern regions telecom infrastructure to support economic development; including Alaska, NWT and Yukon in a cross jurisdictional view. • Support development of Northern Research and a potential collaboration across the jurisdictions by understanding and overcoming obstacles to bi-national funding for arctic research. • Send a letter of support from the 5 PNWER states to their Senate delegation supporting U.S. ratification of UNCLOS, and work on joint communication from PNWER member jurisdictions to their federal congressional delegations for the capital visit to Washington, DC June 13 – 15, 2012. • Continue to identify and share jurisdictional best practices on resource development regulatory systems. • Recommend that the PNWER Workforce Development Working Group include topics related to training for Northern Industries and peoples.

Agriculture The Agriculture Working Group focuses on the Regulatory Cooperation Council Action Plan, specifically agricultural topics, including food safety, mutual reliance of food testing results, and crop protection products. At PNWER’s 2012 Summit, 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 that adequate resources are dedicated to the action plan’s initiatives.

2012 Action Items • Work with RCC officials to address information gaps. • Provide clarity to industry stakeholders

12 • Pacific NorthWest Economic Region

with respect to roles, processes and opportunities for input. • Identify new areas of collaboration • Seek timely and successful conclusion on initiatives.

Working Groups

2012 Action Items

Border Issues The Beyond the Border Declaration in February, 2011, has continued to provide input to Prime Minister Harper and President Obama’s Beyond the Border and RCC Action Plans. Prior to the announcement of the Action Plan in December, 2011, PNWER working groups had been instrumental in providing regional input for these action plans, which may be the most significant contribution to U.S.-Canada relations since the signing of NAFTA in 1994.

2012 Action Items • Urge CBSA and other U.S. and Canadian agencies to publish POE specific northbound traffic data for research that will help streamline the border crossing process. • Encourage private companies to give their information to the Beyond the Border Working Group about their current costs associated with crossing the border and potential savings with further border management improvements. • Urge U.S. and Canada RCC not to view New Port Operating Committees (POCs) as

substitutes or divert attention and resources away from highly-successful regional assets such as the International Mobility and Trade Corridor (IMTC) in the Cascade Corridor. • Call on the U.S. and Canada to support independent university-based research institutes such as the Border Policy Research Institute at Western Washington University to conduct data-driven performance studies of how the border is performing. • Encourage British Columbia to take every action possible to increase the number of British Columbians who hold Enhanced Drivers Licenses.

Cross-Border Livestock Health The Cross-Border Livestock Health Working Group meets each year for an annual conference at the PNWER Summit. This conference enhances 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, advancing Canadian and American animal health interests, and identifying and executing action items to collectively address animal and cross-border issues.

2012 Action Items • Support livestock-based RCC initiatives. • Providing a forum for communication for stakeholder engagement. • Re-submit proposal for pilot project and support e-certification in live cattle. Request specific criteria for system needs to fulfill data and security requirements from USDA

and CFIA. • Support animal welfare initiatives for the development of science-based guidelines/ requirements. Promote consistency of requirements for animals crossing international, state and provincial borders. • Reevaluate past action item to include aspects of disease-prevention and detection as part of emerging animal diseases.

Disaster Resilience PNWER helps to direct the activities of the PNWER Center for Regional Disaster Resilience. The CRDR launched the Regional Disaster Resilience and Homeland Security Program in November, 2001 with the goal of improving the Pacific Northwest’s ability to withstand and recover and to protect its critical infrastructures from all-hazards disasters. 2012 Action Items restoring critical infrastructure, including engineers/inspectors and other specific • Work with supply chain stakeholders to critical skilled labor. develop a bi-national framework to restore • Continue to update the region on progress commerce after a disaster. made on the development of resilience • Encourage the development of cross planning initiatives across the region. border memorandum of understanding to allow critical skilled individuals to assist in

2012 Annual Report • 13

Working Groups 2012 Action Items

Energy PNWER looks at both renewable and energy transmission. Participants in the transmission group explore energy transmission policy and PNWER works to find ways to provide sustainable energy for North America to fuel economic recovery and create a low-carbon future for North America. At the 2012 Summit, PNWER committed to bringing together industry decision-makers in the coal mining and utility sector in the region to support and continued development of the most advanced carbon capture, utilization, and sequestration (CCUS) research facility in the world, the Petroleum Technology Research Centre in Saskatchewan.

2012 Action Items • Continue to seek funding to bring together decision makers to create understanding of and support for CCUS technology and the most advanced global CCUS demonstration project in the world. • Continue to bring together energy policy leaders to examine areas key energy issues. • Explore best practices by PNWER jurisdictions on leasing agreements that would provide annual compensation to states and/or private landowners for infrastructure leases. • Provide examples of cooperation/ collaboration between private sector and government entities on building renewable generation. Assemble a regional document of best practices.

• Seek resources for an analysis to compare cost of electric generation resources with and without incentives in the PNWER region. • Develop a proposal to research foreign ownership of critical energy infrastructure in the U.S. and Canada, and seek funding to conduct an analysis. • Seek resources to develop a comparative study of the benefits of diverse renewable generation resources in the region. • Compile regional natural gas prices and forecasts of future prices. • Encourage individual utilities within the region to cooperate at a higher level with each other in meeting their resource needs. • Hold Energy Storage Coalition Meeting with utility commission directors.

Health Care The Health Care Working Group addresses cross-border issues including: business, technologies and other regional issues related to health-care challenges.

2012 Action Items • Work with states and provinces to continue to examine primary health cost drivers and share best practices on innovative ways to address these issues.

Innovation The competitive landscape of the global economy, coupled with worldwide environmental challenges, is creating unprecedented demand for scientific discovery and innovation. 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.

2012 Action Items • Continue to work on the PNWER Innovation Asset Inventory Survey. • Explore nontraditional models of intellectual property management and bring

14 • Pacific NorthWest Economic Region

suggestions to the working group. • Develop policy principles that jurisdictions could adopt for greater innovation collaboration and economic development. • Explore funding options for innovation program.

Working Groups

2012 Action Items

Invasive Species The Invasive Species Working Group addresses the regional economic and environmental impact of invasive species and promotes regional collaboration and sharing of best practices.

2012 Action Items • Reach out to American Federal officials to collaborate on invasive species in Lake Mead and connected waterways. • Reach out to officials to initiate an analysis of the potential impacts of zebra and quagga mussels to the Pacific Northwest. • Request that PNWER develop effective reciprocity agreements for inspection and


decontamination among member states and provinces. • Encourage state officials to discuss with state utility commissioners the likelihood of including invasive species mitigation into utility rates. • Develop a regional invasive species council for sharing of resources and developing joint efforts.

The Working Group, Sustainable Natural Resource Development: Mining, identifies best practices for environmental sustainability in the mining sector while fostering natural resource development.

2012 Action Items • Promote a better understanding of the region’s mineral resource potential. For example, more than $35 billion worth of minerals was produced in the Pacific Northwest and Western Canada in 2011. Additionally, investment in major mining projects could produce billions of dollars. The working group aims to show how sustainable development supports economic growth and increased standard of living. If legislators have a better understanding of the potential and infrastructure-related needs of the sector, mining would also benefit. • Facilitate a catalog of best practices for

corporate social responsibility in the mining industry, then assembling these ideas in a regional framework. • Endorse, encourage and advocate for a single-window environmental assessment process. • Establish an official PNWER Mining Working Group. • Seek funding to pursue an interactive mapping project on mineral resources and infrastructure in the region; working with the Arctic Caucus to expand their efforts. • Integrate mining into workforce development sessions and transportation sessions at future PNWER meetings. • Encourage the participation of the aboriginal community.

Natural Gas Vehicles The Natural Gas Vehicles Working Group works to increase regional collaboration regarding natural gas vehicle infrastructure. 2012 Action Items those planned and projected). • Support the marine application of natural • Encourage the Government of British gas and help identify opportunities to use Columbia to summarize their experience natural gas for marine transportation. with natural gas incentives and regulatory • Encourage the adoption of common changes to be shared with other members regional safety standards for natural gas of the region. related equipment, including refueling • Create a resource list of individuals stations and vehicles/vessels. interested in the growth of natural gas • Work to disseminate the information vehicle industry. on common industry standards with the • Work with regional stakeholders to update Regulatory Cooperation Council. the regional map of public and private natural gas refueling stations (including 2012 Annual Report • 15

Working Groups 2012 Action Items

Trade And Economic Development Many of the states and provinces are each others’ largest trading partners. In light of recent events, PNWER’s Trade and Economic Development Working Group is collaborating with regional groups to determine the best practices for economic recovery and examining the impact of the Economic Stimulus on this region.

2012 Action Items • Send a letter on behalf of PNWER supporting the inclusion of Canada in the TransPacific Partnership negotiations. • Support the Regulatory Cooperation Council and work with PNWER members to identify and quantify, when possible, specific regulatory barriers impacting trade between the U.S. and Canada (for example, buy America policy approvals: Keystone XL

Pipeline, BSE testing required of fish oil), etc. • Support the Beyond the Border Action Plan and encourage the development of an economic impact analysis of its implementation. • Assemble a package to send to CBSA regarding extending the hours of operation for northbound freight at the Rooseville crossing in Montana and British Columbia.

Transportation This working group 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.

2012 Action Items • Secure additional resources to develop a legislative primer which will include a matrix on investments made in Western Canada and Northwest states to handle projected increases of exports in shipment of coal, potash, grain and wood and the symmetry between inbound containers and outbound commodities to the Asia-Pacific market. This would help guide decision-makers in their

investment in infrastructure with respect to rail and port facilities. The primer would incorporate the results of the Portland 2011 Summit and the Saskatchewan 2012 Summit. The primer would also utilize social media platforms. • Encourage PNWER to consider an AsiaPacific legislative tour in 2013 of Vancouver, Prince Rupert and Kitimat as a pre-tour to the Anchorage Summit.

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.

2012 Action Items • Hold a full-day session for the 2013 Annual PNWER Summit, possibly partnering with the Agriculture Working Group to explore topics below. • Partner with the Agriculture group to explore better monitoring and reporting of soil moisture, as an early indicator of fire potential (forest and grass) and perhaps as a means of mitigating the economic costs of

16 • Pacific NorthWest Economic Region

drought. • Provide updates to the region on the Columbia River Treaty and explore linkages with other working groups, including invasive species. • Explore best practices for aquifer storage and recharge as a topic in 2013. • Explore water re-use in 2013 (particularly re-use of treated municipal and industrial effluents) as a new treated-for-purpose water supply.

Working Groups

2012 Action Items

Tourism The Tourism Working Group 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, including “Two Nation Vacation” programs and the development of the pilot project, “NorPass.” This pass would connect British Columbia, Alaska and Washington ferry systems. 2012 Action Items a common set of tourism metrics to measure the economic impact of tourism. • Support PNWER to facilitate a pilot Data points could include number of project to imbed CIC officials in U.S. state jobs created, GDP, marketing ROI, hotel department offices in target cities overseas. occupancy, number of foreign visitors, This would allow tourists to potentially export dollars generated, etc. Data must qualify for both a U.S. and Canadian visa be collected by independent universities in during one interview, and would be part of each jurisdiction, and an agreement must the Beyond the Border Perimeter Security be signed by each state and provincial initiative. The project will assist in informing government indicating that they support U.S. and Canadian officials of each other’s the objectiveness of the metrics and agree procedures, and could provide a framework to the report format. for expanded cooperation. • Facilitate communication between border • Facilitate further NorPass discussion and and transportation experts with tourism development with Alaska Marine Highway professionals to craft and convey a simple System, Washington State Ferries, BC message to U.S. and Canadian citizens Ferries and Blackball Transport by holding a about border requirements. meeting in the fall. • Work with states and provinces to launch

Workforce The Workforce Development Working Group is identifying the barriers to addressing labor shortages, the key stakeholders, and specific actions that can be implemented to alleviate these shortages. How can we train and retrain the skilled workforce that will be needed to fuel the growth of tomorrow? Where are the best practices of industry/government cooperation? How can we ensure greater professional mobility in terms of licensing requirements, as many projects cross multiple jurisdictions? PNWER works to find solutions to these issues and more.

2012 Action Items • Build upon a 2012 marketing campaign to facilitate skilled labor mobility from U.S. States to fill high demand jobs in Alberta. • Present an Alaskan Native workforce session or presentation in 2013 Annual Summit. • Identify 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 Veterans with trade skills can more easily qualify for temporary

worker visas. • Call 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.

2012 Annual Report • 17

PNWER’S ARCTIC CAUCUS Formed in 2009, the Arctic Caucus of the Pacific NorthWest Economic Region is a partnership between Alaska, Yukon, and the Northwest Territories to provide a forum to share information, discuss issues of mutual concern, identify areas for collaboration between the three jurisdictions and the rest of North America, and provide Arctic-relevant input to PNWER working groups and the region at-large. More than 20 action items have been identified as outcomes from annual Arctic Caucus meetings in Barrow, Alaska (2010); Yellowknife, the Northwest Territories (2011); and Whitehorse, Yukon (2012). This year’s forum was held on May 17-19, 2012 in Whitehorse, YK. Topics for the PNWER Arctic Caucus Forum included: • Tourism: Marketing and Connections • Research and Innovation: The Knowledge Sector • Development Corporations: Regional Economic Engines • Regional Priorities and perspectives of the first two years of the Caucus • Policy Best Practices Yukon Environmental and

Socioeconomic Assessment Act (YESAA) More than 50 delegates attended the Whitehorse gathering, including legislators and business leaders from Yukon, Alaska and the Northwest Territories, as well as from Washington, Oregon, British Columbia, and Ottawa. The conference addressed key issues of tourism, research and innovation, and innovative aboriginal economic development examples in the region. Speakers came from the public sector, private sector and academia. Attendees also were treated to a wonderful reception at the Yukon Transportation Museum with local entertainment. The Arctic Caucus is looking forward to the 2013 Anchorage Summit where arctic issues will be embedded in as many working groups as possible. Visit the PNWER Arctic Caucus Web site to learn more about this year’s events and upcoming meetings at www.

From Left: U.S. Senator Lisa Murkowski (left) speaking about U.S. Arctic policy during the U.S.-Canada Arctic Roundtable in Washington, D.C. with State Senator Lesil McGuire, AK (middle) and the PNWER Arctic Caucus Chair Minister David Ramsay, NWT. Right: Roundtable participants receiving an in-depth overview of the Alaska Northern Waters Task Force.

U.S.-Canada Arctic Roundtable In March, PNWER hosted a U.S. Canada Arctic Roundtable at the U.S. Capitol Building in Washington, D.C. The roundtable provided an opportunity for regional stakeholders to highlight the collaborative efforts underway between Alaska, Yukon, and the Northwest Territories and share the action plan of the Caucus with our federal partners. An 18 • Pacific NorthWest Economic Region

extraordinary group of participants and speakers joined the roundtable, including Alaska’s U.S. Senators, Lisa Murkowski and Mark Begich, several legislators from the PNWER Jurisdictions. They were joined by Julia Gourley, U.S. State Department; Lt. Commander Michael Krause, U.S. Coast Guard; Dr. Fran Ulmer, Chair of the U.S. Arctic Research Commission; and Kevin O’Shea, Canadian Embassy in Washington,

D.C. As PNWER’s Arctic Caucus continues to look for solutions to the shared challenges of its three jurisdictions, high-level meetings that include federal participants like the Arctic roundtable in Washington D.C., help achieve the Caucus’ goal of increasing the visibility and priority of Arctic issues across PNWER to our federal partners.

PNWER DELEGATION CAPITAL VISITS PNWER Board members from across the region participated in our annual capital visits. The delegation visited Juneau, Alaska; and Olympia, Washington in January. The delegation later visited Regina, Saskatchewan and Whitehorse, Yukon in the spring. The Juneau visit included an engaging meeting with Alaska Governor Sean Parnell, a meeting with Lt. Governor Mead Treadwell, a hearing on the Arctic Caucus in a joint legislative committee, and meetings with Alaska legislators on a variety of issues. Common discussion topics included transportation, resource development, workforce, energy, cross-border collaboration, and maritime shipping. Delegates were able to attend Gov. Parnell’s “State of the State” address during their two-day visit. In Olympia, delegates were able to meet with Lt. Governor Brad Owen, as well as testify to a joint committee of the House and Senate on International Trade, Economic Development, and Innovation on the Beyond the Border Action Plan. A joint House/Senate Memorial was introduced by Lt. Governor Owen and has

passed the Senate, calling on the Legislature to track the progress of the U.S. - Canada Beyond the Border Action Plan. In April, PNWER Officers traveled to Regina, Saskatchewan to discuss the upcoming 2012 PNWER Summit and other issues impacting Saskatchewan and the region. Meetings included time with Honourable Dan D’Autremont, Speaker of the House; the Honourable Vaughn Solomon Schofield, and other members of the legislative assembly. The visit also included a lively question period session and formal introductions of the delegation in the legislative assembly. PNWER officers and delegates visited Whitehorse, Yukon in May 2012 to meet with legislative leaders. The capital visit was held in conjunction with the Arctic Caucus Forum. During the capital visit, PNWER Officers met with Premier Darrell Pasloski as well as several cabinet ministers to discuss current issues in the region related to the Arctic and beyond.

Clockwise from left: PNWER delegation meets with Washington Lt. Gov. Brad Owen in Olympia, on January 25, 2012. Alaska Governor Sean R. Parnell (left) the Hon. David Ramsay, the Northwest Territories (center), and Colin Smith, past president, APEGBC at the Alaska State Legislature in Juneau on January 19, 2012. George Groeneveld, MLA-Alberta speaks to Alaska’s Natural Resource Committee in Juneau, Alaska, January 19, 2012.

2012 Annual Report • 19

CENTER FOR REGIONAL DISASTER RESILIENCE PNWER launched the Center for Regional Disaster Resilience (CRDR) in November 2001 with the goal of improving the ability of the Pacific Northwest to protect its critical infrastructures to withstand and recover from all-hazards disasters. The CRDR works with key public and private stakeholders to create and implement workable solutions to local and regional infrastructure vulnerability and other related needs. Center projects aim to raise awareness of infrastructure interdependencies, provide training and education, develop tools, technologies, and approaches that build on existing capabilities and can be utilized across the United States, Canada, and the international community.

USCG Cpt. Ferguson addresses the audience at the Maritime Commerce Resilience Workshop held in Seattle on July 10, 2012.

This year, the CRDR focused on cyber security, maritime communications for commerce resumption, use of social media for situational awareness in the maritime sector and recovery planning for a serious earthquake.

Scott Bates, USCG, discusses maritime resiliency issues at the After Action Conference in Vancouver, British Columbia on November 26, 2012.

Maritime Social Media Project The Pacific Northwest regional economy relies on maritime trade. The ports in the Puget Sound are vital to the import and export of goods, as well as for the cruise industry and commercial fishing. Ensuring the resiliency of our ports starts with the people who use them daily — from longshoremen to ferry commuters. The Maritime Social Media Project will give the users of the ports new tools

20 • Pacific NorthWest Economic Region

for reporting security incidents, or for providing real-time information during a disaster. PNWER has partnered with Pierce County in Washington to develop a smart phone application and social media filtration program to help the public connect directly with the U.S. Coast Guard, port authorities, and local government. Information from the public can provide a real-time situational awareness that will increase the likelihood of limiting a disaster before it occurs, and allow for more targeted response.

The project steering committee is currently testing the smart phone application and progress is underway on a social media filtration tool which will help inform port and other security and safety leaders about what is happening around the ports by examining Twitter, Facebook, YouTube and other social media streams. Early next year the tools will be ready for Puget Sound stakeholders to test.

Maritime Commerce Resiliency Project As part of a major project for the Beyond the Border initiative between the federal governments of Canada and the United States, PNWER, in partnership with the U.S. Coast Guard and Transport Canada, has helped to develop information-sharing protocols to swiftly recover from a disaster impacting maritime commerce in order to strengthen the resiliency of our trade dependent regional economy.

A group of regional maritime stakeholders discuss the development of a communications and information sharing framework in Seattle, July 10, 2012.

USCG Rear Admiral Keith Taylor speaks at the Maritime Commerce Resilience Tabletop Exercise in Everett, WA on October 2, 2012.

The exercise series consisted of five separate workshops/conferences (three in British Columbia and two in Washington State) in 2012 to review and validate the concepts outlined in the draft guidelines for communication and information sharing between maritime stakeholders in Canada and the United States. The valuable input of more than 200 regional maritime stakeholders from both the public and private sector at these meetings has helped the federal governments of Canada and the United States move closer toward their goal of implementing the draft communications and information sharing protocols, and identifying specific steps to improve regional maritime resilience. The findings of this pilot project will soon be moved to the Great Lakes and Atlantic regions for further refinement. PNWER would like to thank the U.S. Coast Guard, Transport Canada, the Consulate General of Canada in Seattle, and the Consulate General of the United States in Vancouver for their ongoing help. Additionally, this project would not have been possible without the valuable contribution from numerous members of the regional maritime community. To learn more about this project please visit:

2012 Interdependencies Forum

Emerald Down II The Emerald Down II Cyber Security Exercise was conducted on September 5-6, 2012 in Seattle, Washington. Regional public and private sector critical infrastructure protection and information technology professionals participated in this event to explore cyber event response plans, impacts, and recommendations, and to learn about the growing and changing cyber security threats to our critical infrastructure. Participants agreed that emergency response plans and policies need to include strategies for cyber-based events. The exercise was designed to stimulate discussion and awareness

of the uniquely pervasive aspects of cyber-based disruptions to local and regional infrastructure operations. The scenarios that were reviewed stimulated thoughtful exploration of significant topics that need to be explored in further detail as the region continues to define and refine private and public business continuity and response plans for a largescale cyber attack. At the forefront of those continued discussions will be efforts to improve regional communications and coordination; policies and procedures; and situational awareness in order to promote resiliency and recovery from a regional cyber event.

On January 27, 2012 PNWER hosted a regional Interdependencies Recovery Workshop at the Microsoft Conference Center in Redmond, WA with the goal of improving economic resilience within the Puget Sound region and beyond. The workshop helped to increase regional stakeholders understanding of interdependencies issues related to recovery and restoration of critical infrastructure after a major earthquake. Furthermore, attendees were educated about the impacts of different types of earthquakes to the region and how social media could be used during recovery and restoration. The workshop was sponsored by the WA Homeland Security Region 6 Critical Infrastructure Protection Working Group.

2012 Annual Report • 21

ENERGY Legislative Energy Horizon Institute

as the premier executive utility education program.

The second class of the Legislative Energy Horizon Institute began at the PNWER 21st Annual Summit in Portland, Oregon July 19-22, 2011. The final course was held in May 2012 in Washington D.C.

Our third Legislative Energy Horizon Institute is scheduled to start this upcoming summer. The Institute is a great opportunity for newer representatives/senators who are emerging leaders in energy policy. The institute offers policymakers the chance to dramatically improve their knowledge of the energy infrastructure and delivery system, enhancing their ability to make the complex policy decisions that will be necessary to ensure the region has a stable, secure and affordable energy supply and delivery system.

High turnover in state legislative bodies decreases the institutional knowledge concerning complex energy issues in state/province/territorial legislatures. Legislators who develop state energy policy often lack a comprehensive understanding of how energy infrastructure operates. The complex issues associated with electricity, natural gas, and petroleum infrastructure; regulation governing this infrastructure; and interdependencies are just some of the areas that legislators must understand to make responsible and informed policy decisions. Each legislator who fulfills the 60 hours of coursework receives a certificate in energy policy planning from the University of Idaho. The university provides the Utility Executive Course, which has earned a worldwide reputation

PNWER is pleased to announce that due to the success of our two previous Legislative Energy Horizon Institutes, we will be moving from a two-year class to an annual class. The Institute will be open to policymakers in both 2013 and 2014. Additionally, because of the initial success of this pilot program, the program was authorized by the U.S. Department of Energy for five years and committed to by partners PNWER, NCSL and the University of Idaho.

LEHI students get the opportunity to learn about all the stages of energy development from experts in the field. Skip Collier, from the University of Idaho’s utility executive program, gives an overview of energy transmission.

Energy Storage Coalition PNWER’s Energy Storage Coalition (ESC) is committed to expanding the role of energy storage in a more affordable, clean, and reliable electric power system. The ESC’s members include public-private members representing the region’s diverse mix of energy storage technology manufacturers, renewable energy manufacturers/developers, utilities and policy makers. 22 • Pacific NorthWest Economic Region

At the first-ever energy storage coalition meeting during the 2011 PNWER Economic Leadership Forum in Victoria, BC, an action item identified was to set up a meeting with PNWER’s utility commissioners. Working collaboratively, PNWER and the Oregon and Washington Utility Commissions brought energy storage developers and utilities together for an October meeting in Portland, Oregon.

Participants shared their perspectives on opportunities and challenges to deploying energy storage technology in the Pacific Northwest. The session also included panel presentations that gave an Electric Storage 101, outlined some energy storage technologies and highlighted barriers to storage deployment.

BEYOND THE BORDER PNWER has played an important role from the onset of the Beyond the Border Initiative and Regulatory Cooperation Council (RCC) process. Prior to the release of the action plans, PNWER provided over 60 comments and recommendations from regional stakeholders to both federal governments regarding enhancing U.S.-Canada trade and security, and many of which made it into the Action Plans announced on December 7, 2011. At the 2012 Summit, Hon. Victor Toews, Minister of Public Safety, outlined and discussed the Beyond the Border Action Plan as the keynote speaker of the opening ceremony. Minister Toews pointed to the progress of the Action Plan, which he called a new vision for bi-national cooperation, adding that it is only beginning to be fully realized and implemented. The Border Issues Session at the Summit addressed “Why the Beyond the Border and Regulatory Cooperation Council Action Plans Matter” and featured officials from the federal governments of Canada and the U.S., the Hon. Rob Merrifield, Member of Parliament for Yellowhead, AB, and Dr. Don Alper from Western Washington University and the Border Policy Research Institute. Additionally at the Summit, Colin Robertson, a former Canadian diplomat and longtime PNWER contributor, was given the “Hot Potato Award” for advancing bi-national cooperation through his work the Beyond the Border initiative.

The Economic Leadership Forum featured a Border Plenary Session that explored different facets of the action plans. The session was divided into four different parts: a scholar/ researcher section featuring Dr. Christopher Sands from the Hudson Institute and Dr. Laura Dawson from Dawson Strategic; a government official section, where updates on the implementation of the plans were given; a private sector section, which touched upon the economic impact of the plans; and finally a lively group discussion that included all session speakers. During the second half of 2012, PNWER collaborated with the U.S. Chamber of Commerce and other private sector stakeholders to create the Stakeholder Coordination Council (SCC). The SCC aims to provide a centralized location to document the progress of the Beyond the Border Action Plan and the RCC, organize and publicize stakeholder events, and provide real world examples and documentation of successes. For more information on Beyond the Border and PNWER border activities, including agendas, please visit: www.

(Left) Washington State Lt. Governor Brad Owen speaks at “Beyond the Border: Year 1” event in Seattle on February 10, 2012. (Right) Dr. Laura Dawson discusses border issues at the PNWER Economic Leadership Forum in Coeur d’Alene, Idaho, November 15, 2012.

2012 Annual Report • 23

PACIFIC NORTHWEST INNOVATION SUMMIT Regional leaders in entrepreneurship, business development and start-up financing took center stage at the first annual Pacific Northwest Innovation Summit, September 17- 18, 2012, held as part of Seattle Center’s 50th anniversary celebration. The meeting included discussions on what makes successful innovation and collaboration in the region, and the role that start-ups, angel and venture capital play in this success. PNWER and the Washington Economic Development Commission collaborated to produce the innovation summit, which included a lineup of speakers aiming to inform, provoke and energize more dynamic collaborations and economic growth in the Pacific Northwest.

The event included opportunities for networking, a lively talk by the first nationally-acclaimed comedian economist Yorum Baumann, and featured speakers Lt. Gov. Brad Owen and Frank Blethen, Chief Officer and Publisher of The Seattle Times. Innovation was a major theme of the 1962 Seattle World’s Fair and it was fitting that first Annual Innovation Summit was held during the celebration of the Fair’s 50th anniversary with a focus on the importance of innovation in the region. For more information, go to

Clockwise from top left: Participants of the Innovation Summit take their ideas “center stage” literally, sharing their ideas together at the conclusion of a full day of sessions, September 19, 2012. Keynote speaker and standup economist Dr. Yoram Bauman gets the crowd chuckling, September 18, 2012. Keynote speaker Frank Blethen, Seattle Times CEO and Publisher, speaks at the Innovation Summit on September 19, 2012.

24 • Pacific NorthWest Economic Region






PNWER event shaping future Saskatoon for the next week will be the capital of an economic region that, if it formed a political union, would be among the top dozen richest nations. And considering what members of the Pacific Northwest Economic Region, composed of British Columbia, Washington, Oregon, Alberta, Saskatchewan, Montana, Alaska, Idaho, Yukon, and the Northwest Territories, have in common, the discussions could play a significant role in the economic development of the continent and world. It is those common interests that are on the Saskatoon agenda. Lawmakers and delegates will be talking about innovative approaches to such things as post-secondary responsibilities, development of renewable resources, ways to make seamless the borders between the provinces and states and between the nation, how to adapt to climate change and - perhaps most importantly - the role the region can play in energy security. For decades the member jurisdictions on the western side of the Rockies were considered so similar in geography and interests that there was a suggestion they could form their own country of Cascadia. It has long since been converted to the idea of an economic

region instead of a political entity. But with the addition of the eastern slopes - most notably Montana, Alberta and Saskatchewan with their deep and expansive resources - the importance of a cohesive partnership becomes all the more important. While the PNWER legislators and business representatives here will be talking about areas of common interest, it's this underlying importance that must not be lost in the minutia. It is crucial for the region's economic growth to put in place measures that facilitate cross-jurisdictional infrastructure to be built, labour and commerce to move more freely across borders, innovation to be more easily shared and common environmental interests to be promoted. When one considers the array of resources in the region, the greatest danger lies in thinking too small or local when it comes to such things as protecting the clean western skies, safeguarding the interests of First Nations people, developing and exporting oilsands bitumen, potash and agricultural products, protecting Pacific fish stocks and even benefiting from the potential under the Arctic Ocean It would be a shame to allow the fear of competition or jealousy of our

neighbours to stand in the way of that potential. Part of the way to avoid this is to open up competition across the region. That requires a much broader development of infrastructure - such as the now quiescent proposal to build a combined rail-pipeline that links Alaska to the lower 48. This also could also be an alternative route for Alberta oilsands and Montana sweet crude to be linked into pipelines to the Gulf Coast. And it's worth noting that PNWER represents a part of the continent uniquely positioned to enhance trade to Asia. With Canada's potential admission to the Trans-Pacific Partnership, the development of a more robust crossborder infrastructure to get goods to the Asian market can mean long-term benefits for the entire continent. So smile when you see PNWER delegates on the river trails this week. They are our future.

The editorials that appear in this space represent the opinion of The StarPhoenix. They are unsigned because they do not necessarily represent the personal views of the writers. The positions taken in editorials are arrived at through discussion among the members of the newspaper’s editorial board, which operates independently from the news departments of the paper

2012 Annual Report • 25

FINANCES TheThe Pacific Northwest Economic Region Foundation operates Pacific NorthWest Economic Region Foundation operatesasasa a501c6 501c6non-profit nonprofit organization. organization. PNWER’s income is derived from statutory dues from member jurisdictions as well as federal, state/province 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, 2012, PNWER’s total income was $1,323,746.94 and total expenses were $1,229,215.01

FY12 Revenue Meeting Revenue 15% Sponsorships 34%

Gov. Grants & Contracts 25%

Statutory Dues 26%

FY12 Expense

Overhead 46%

Program Expenses 26% Meeting Expenses 28%

26 • Pacific NorthWest Economic Region

Expense 0%

Revenue Sponsorships Statutory Dues Gov. Grants & Contracts Meeting Revenue Total Revenue

Expense Program Expenses Meeting Expenses Overhead Total Expense

$ $ $ $

$ 449,863.81 $ 346,000.00 $ 327,458.40 $ 200,424.73 $ 1,323,746.94

324,232.20 338,588.21 566,394.60 1,229,215.01

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

Statuatory Members Alaska Alberta British Columbia Idaho Montana

The Northwest Territories Oregon Saskatchewan Washington Yukon

Private Sector Members Adventure Destinations Areva AltaLink Arkoosh Eiguren ASET APEGA APEGS APEGBC Avista BHP Billiton BP BNSF Cameco Canadian Natural Canadian Association of Oil Well Drilling Contractors Capital Power Corporation CAPP Canpotex Ltd. CBI Canada Cenovus Energy Chisholm Ventures Clipper Vacations CN CropLife Canada

Devon Empire Airlines Enbridge Evraz Fortis BC Federated Co-Operatives Limited Ground Force Worldwide Husky Energy Hitachi Idaho Farm Bureau Federation Innovation Place Jobs Plus Marathon Monsanto Microsoft MNP MacPherson, Leslie, and Tyerman LLP Nelson Mullins Northland Power NorthwesTel NWGA Portland General Electric Puget Sound Energy PTRC Pricewaterhousecoopers

Sunshine Minting Inc. Spectra Energy Stoel Rives The Global Transportation Hub Tervita TransCanada Verizon William Joseph Weyerhaeuser West Wind Aviation

Project Partners Legislative Energy Horizon Institute


Pierce County

Northwest Warning, Alert and Response Network

Washington State Fusion Center

Natural Resources Canada

Seattle Police Department U.S. Department of Energy, Office of Electricity Delivery and Energy Reliability King County Office of Emergency

Canadian Consulate General - Seattle U.S. Consulate General - Vancouver TransportCanada U.S. Coast Guard 2012 Annual Report • 27

Anchorage ALASKA

July 14-18, 2013

start your Alaska adventure at the PNWER

2013 Annual Summit

July 14-18, 2013 | Anchorage, Alaska Bring the family to explore Anchorage, Alaska during the PNWER 2013 Annual Summit. Experience Anchorage through novel policy tours and exciting evening reception opportunities. Come visit the tidewater glaciers by cruise ship, and see wildlife in its natural habitat in one of the greatest frontiers left on earth. Join more than 600 legislators and leaders from government and business from PNWER’s ten states, provinces and territories to address the major policy issues impacting the region. The PNWER Summit is a platform to tackle a variety of policy issues, from transportation challenges to cross-border livestock health to energy sustainability. Please mark your calendars for the 2013 Annual Summit!

Pacific NorthWest Economic Region 2200 Alaskan Way, Suite 460 | Seattle, Washington 98121 P: 206-443-7723 | F: 206-443-7703 |

PNWER's Annual Report