GUIDING THE WAYANNUAL REPORT 2013

As PNWA prepares to celebrate its 80th anniversary, we look back on a year of tough challenges around the region and gridlock in our nation’s capital. PNWA staff and members came together in 2013 to provide a comprehensive regional perspective on transportation, trade, energy and environmental policies and projects in the Pacific Northwest. With a balanced approach and consistent communication, we worked to ensure that Northwest views were considered. Join us as we review the Association’s accomplishments in the past year, and look ahead to the issues that matter most to our membership.

LEARN MORE AT PNWA.NET

AECOMAdvanced American Construction

Allan RumbaughAlmota Elevator

American ConstructionBall Janik LLP

Bell Buoy Crab CompanyBenton County PUD #1

BergerABAM Engineers, Inc.Bergerson Construction

Bernert Barge LinesBNSF Railway Company

BST AssociatesCentral Oregon Basalt Products, Inc.

Central Washington Grain Growers, Inc.Clark Public UtilitiesLD Commodities Inc.

Clearwater PaperCollins Engineers, LLC

Columbia Basin Development LeagueColumbia County Grain Growers

Columbia GrainColumbia River Bar Pilots

Columbia River PilotsColumbia River Port Engineers, Inc.

Columbia River Steamship Operators AssociationCooperative Agricultural Producers

David Evans & AssociatesDunlap Towing

Dutra Group CompanyEast Columbia Basin Irrigation District

EGT, LLCENVIRON InternationalFoss Maritime Company

Franklin PUDGordon Thomas Honeywell Government Affairs

Great Lakes Dredge and Dock CompanyHart Crowser

ICF InternationalIdaho AFL-CIO

Idaho Wheat CommissionInternational Longshore and Warehouse Union (ILWU)

J-U-B Engineers, Inc.Kalama Export Company

Kiewit

KPFF Consulting Engineers, Inc.Lampson International, LLC

Landau AssociatesLewis-Clark Terminal Association

Longview Fibre CompanyMacKay & Sposito, Inc.Manson Construction

Marine Industrial ConstructionMcGregor Company

McMillan LLCMercator International LLCMillennium Bulk Terminals

Moffatt & NicholMorrow Pacific

Normandeau AssociatesNorthwest Grain Growers, Inc.

Northwest Public Power Association (NWPPA) Oregon Business Development Department

Oregon International Port of Coos Bay Oregon Wheat Growers League

Pacific Northwest Farmers CooperativePacific Northwest International Trade Association

Parsons BrinckerhoffPBS Engineering & Environmental

PND Engineers, Inc.PNGC Power

Pomeroy Grain GrowersPort of Anacortes

Port of AstoriaPort of BandonPort of Benton

Port of Camas-WashougalPort of Cascade LocksPort of Chelan County

Port of ChinookPort of Clarkston

Port of Columbia CountyPort of Everett

Port of GaribaldiPort of Grays HarborPort of Hood River

Port of Humboldt BayPort of IlwacoPort of KalamaPort of Klickitat

Port of LewistonPort of LongviewPort of MattawaPort of MorrowPort of Newport

Port of PascoPort of Port Angeles

Port of PortlandPort of Ridgefield

Port of Royal SlopePort of SeattlePort of SiuslawPort of Skagit

Port of St. HelensPort of Sunnyside

Port of TacomaPort of Toledo

Port of UmatillaPort of Umpqua

Port of VancouverPort of Walla Walla

Port of Whitman CountyPort of Woodland

Puget Sound PilotsSchnitzer Steel

Schwabe, Williamson & WyattSDS Tug & Barge

Shaver TransportationStoel Rives LLP

Tangent Services, Inc.Teevin BrothersTEMCO, LLC

Tidewater Barge LinesUnited Grain

U.S.A. Dry Pea and Lentil CouncilVan Ness Feldman

WA Association of Wheat GrowersWashington Council on International Trade (WCIT)

Washington Public Ports Association (WPPA)WA State Department of Commerce

WA State Potato CommissionWashington Grain Commission

Westwood ShippingWhole Brain Creative

Wildlands, Inc.

MEMBERS

Pacific Northwest Waterways Association 516 SE Morrison Street, Suite 1000 Portland, OR 97214

As advocates for Northwest navigation, hydropower, transportation and the environment, we are stewards of greatness. Our membership of over 130 organizations is stronger than ever, and continues to collaborate in support of our core policies and projects. Even in this challenging fiscal climate, our collective efforts are paying off, resulting in average annual funding increases of

over $19.3 million. I am honored to serve as PNWA’s president, and to help lead the organization in 2014—its 80th year. Together, we will celebrate a long history of advocacy and ensure the Northwest’s economic vitality for generations to come.

Kim B. Puzey General Manager, Port of Umatilla PNWA President

PNWA TESTIFIES ON COLUMBIA RIVER TREATY REVIEWThe United States and Canada are examining the future of the Columbia River Treaty, implemented in 1964 to manage river flows for flood control and power generation. The Columbia River is a vital national asset, and any proposed changes to river system operations are of significant interest to PNWA members. Throughout the review process, PNWA relayed crucial feedback regarding potential consequences to federal navigation channel maintenance, barging safety and efficiency, deep-draft ship handling, and port docks and other river infrastructure. PNWA staff testified before the Senate Energy & Natural Resources Committee in Washington, DC in November, and PNWA Senior Vice- President Paul Amos, of the Columbia River Pilots, testified at a House Natural Resources Committee field hearing in Pasco in December.

In addition, PNWA’s water supply members stressed the importance of irrigated agriculture to the regional and national economy, and how its viability depends on the Columbia River. Our utility members, through the Columbia River Treaty Power Group, called for equitable distribution of power benefits between the two nations, and that proposed changes to the Treaty take into account existing programs to protect fish and wildlife resources.

On December 13, the Bonneville Power Administration and the U.S. Army Corps of Engineers released a final regional recommendation to the U.S. Department of State. The recommendation included expanded, improved language with regard to navigation, energy and irrigation. PNWA will continue to partner with federal agencies, our Congressional delegation, and regional stakeholders as the Columbia River Treaty process moves forward in 2014.

WATER RESOURCES DEVELOPMENT ACTChampioning passage of a Water Resources Development Act (WRDA)–the first since 2007–was a major priority for PNWA this year. PNWA served as a resource to Members of Congress throughout this process and conducted significant outreach to our federal leaders. PNWA President Patsy Martin represented PNWA and our small port members in a roundtable for members of Congress serving on the House Transportation and Infrastructure Committee. PNWA WRDA priorities include Section 214 regulatory funding authority, the Harbor Maintenance Trust Fund (HMTF), the Inland Waterways Trust Fund (IWTF) and numerous member projects.

Section 214: PNWA leads a national coalition of supporters advocating for Section 214 permanence in the next WRDA bill. A significant achievement this year was the inclusion of permanence language in the House and Senate WRDA bills, signaling the first time both chambers have been in agreement on permanence.

Harbor Maintenance Trust Fund: Over the past year, PNWA developed a comprehensive regional approach for the Harbor Maintenance Trust Fund. This PNWA dialogue helped inform the efforts of U.S. Senators Patty Murray and Maria Cantwell as they drafted their Maritime Goods Movement Act—a bill that strives to benefit all Northwest ports. PNWA continues to advocate for: annual Harbor Maintenance Tax revenues to be fully expended; a level playing field between U.S. ports and international competitors; and a guarantee for the region’s small ports.

Inland Waterways Trust Fund: PNWA supports a fix for the Inland Waterways Trust Fund, which is intended to provide 50 percent of funding for inland waterways construction and major rehabilitation projects. The fund is currently in arrears. PNWA members support a gradual increase in the diesel tax, and applauded House WRDA language requiring regional equity for future IWTF expenditures. Our members oppose lockage fees, which would be detrimental to our river system.

NAVIGATION FUNDING HIGHLIGHTSFY2013 Corps Workplan. For FY2013, a year-long continuing resolution resulted in government funding at FY2012 levels with additional sequestration cuts, and required the U.S. Army Corps of Engineers to develop a workplan outlining project funding through September 30, 2013. The advocacy work of PNWA and our members paid off, with the Northwest faring well in the final workplan. Eight of PNWA’s supported projects received increased funding from the levels proposed in the President’s FY2013 budget; two were increased from zero. Overall, we saw nearly $7.5 million in additional funding directed to the Northwest.

The Outlook for FY2014. In the President’s FY2014 budget released earlier this year, two of our projects received “new start” funding: the Seattle Harbor channel deepening study and the Columbia River jetties major rehabilitation project. Additionally, both the House and Senate Energy & Water appropriations bills proposed extra operations and maintenance funding to assist ailing projects around the nation. Unfortunately, the federal government endured a 16-day shutdown in October, and is operating under a short-term continuing resolution. At press time, an omnibus FY2014 spending package was signed into law, providing robust funding for the Corps, and additional funding for which PNWA projects may now compete.

SMALL PORT FUNDINGSmall port funding continues to be of significant concern for many PNWA members. For the third year in a row, nearly all small port projects in the Northwest and throughout the nation were left out of the President’s budget.

PNWA has been supportive of short-term solutions to dredge small ports, including the State of Oregon’s partnership with the U.S. Army Corps of Engineers to fund immediate dredging on the Oregon Coast. PNWA is also working toward longer-term solutions, including additional Corps funding in FY2014 dedicated to small ports.

In addition, we have been working on a legislative fix for the Harbor Maintenance Trust Fund, including an annual guarantee of funding for small ports. PNWA continues to work with our Congressional leaders to raise the profile of these smaller projects, and thanks the Northwest delegation, Governor Kitzhaber, and the Corps for their efforts over the past year to ensure that these vital waterways remain open.

MAINTENANCE DREDGING IN THE BARGING CHANNELAs part of a 2005 settlement, the U.S. Army Corps of Engineers agreed to study the sources of sediment in the Lower Snake River, and evaluate a comprehensive suite of channel maintenance efforts. The Walla Walla District is working to complete the Programmatic Sediment Management Plan (PSMP) that will set the stage for the Corps to address portions of the inland channel that have not been dredged since the winter of 2005-2006.

PNWA conducted research in support of channel maintenance and will continue to work closely with our federal partners to encourage timely completion of the PSMP and funding for the first channel maintenance effort.

UPCOMING PNWA EVENTS AND REGIONAL MEETINGSPuget Sound Region February 11, 2014 Parsons Brinckerhoff Seattle, WA

Eastern Washington and Northern Idaho Region February 12, 2014 Port of Benton Richland, WA

Lower Columbia River and Oregon Coast Region February 21, 2014 Port of Portland Portland, OR

2014 Mission to Washington, DC March 9-13, 2014 The Madison Hotel

2014 Summer Conference June 23-25, 2014 Coeur d’Alene Resort & Conference Center

2014 Annual Convention October 15-17, 2014 Hilton Vancouver Washington

For event information, please contact Natalie Whitlock at 503-234-8550. See you there!

PNWA representatives testified at House and Senate

hearings on the Columbia River Treaty, ensuring our membership’s perspective was represented in these

critical discussions.

PNWA is advocating for additional Corps funding dedicated to small ports.

2013 NEW MEMBERSAlmota Elevator

American ConstructionBNSF Railway Company

Collins EngineersColumbia County Grain Growers

ENVIRON InternationalIdaho AFL-CIO

J-U-B EngineersMercator International LLC

Port of AnacortesPort of Everett

Port of Grays HarborVan Ness Feldman

PNWA projects received nearly $7.5 million in

additional FY2013 funding

DEAR COLLEAGUES AND FRIENDS OF PNWA