Cascadia Report

Biodiesel plans take shape

An investment group plans to build a $75 million biodiesel plant in eastern Washington, the latest such announcement since voters this month approved a mandate for new renewable energy in the state.

More than a dozen projects in Washington are in the works, including several in eastern Washington, according to recent reports. Two projects near Spokane recently adjusted plans to take advantage of tax incentives while another in Aberdeen aims to fill an economic void on the coast. The latest refinery, near Pasco, eventually would produce about 63 million gallons annually of biodiesel from soy, palm and canola oils which would be sold in Seattle, Portland and other markets.

Port consolidation may be back on the table

The seaports in the Vancouver area may combine forces, a move that could make them more formidable competitors to Seattle and Tacoma.

The Vancouver Port Authority and two ports along the Fraser River currently operate independently under a federal mandate to generate profit. Combining marketing and land development should help cut costs, though it's unclear if they can increase productivity compared to Washington's locally chartered ports.

The move could revive the issue of cooperation in Washington between Tacoma and Seattle, which have been rivals since the 1860s. Tacoma still has plenty of room to grow but Seattle, which is seeing a decline in traffic, has agitated for years for consolidation among Puget Sound ports.

At a conference earlier this month in Whistler, the director of Seattle's seaport, Mark Knudsen, said the region's ports will be forced to cooperate when each hits capacity and finds fiercer competition from other parts of the continent. Traffic has recently shifted to Los Angeles as space has become available there.

"The question is if we become local stops or the major international gateway that we aspire to," Knudsen told the Pacific Northwest Economic Region conference. "Shippers will all call in both Canada and the U.S. The question is if they will be big or small ships and how much discretionary goods will come through here."

Cascadia ports should cooperate to improve infrastructure and lower costs. West Coast ports currently move about 3,000 to 5,000 containers per acre each year, compared to a rate of 14,000 to 16,000 for ports in Asia, using virtually the same equipment and software.

Mine closure raises new energy questions

The sudden closure of a coal mine in rural southwest Washington this week struck a blow to the area's economy and raised questions about the region's power supply just as a new emphasis on renewable energy begins to take hold.

Calgary-based energy company TransAlta blamed the closure of its 30-year-old Centralia mine on rising safety costs and regulatory delays that prevented expansion. The closure means the loss of about 600 jobs that paid an average of $65,000, according to The Associated Press. The area, located midway between Seattle and Portland, has already been hard hit by the long decline in the timber industry. Now officials estimate the lost taxes will cost up to 30 percent of the area's school budget.

The closure late Monday is another sign of Cascadia's transition from an oil and hydro-fueled economy where industry and consumers counted on inexpensive energy. Earlier this month Washington voters mandated that utilities source 15 percent of their electricity from new renewable sources by 2020. While backers of the measure predict a flood of investment into new energy industry, the measure itself didn't consider siting, regulatory or cost issues.

TransAlta's mine reportedly accounts for about 8 percent of Washington's electricity, which the company said it would replace by bringing coal by train from the Powder River basin of Wyoming to an electric plant it plans to continue operating in Centralia. Apparently high supher and mercury readings in the Washington mine added to costs. Still unanswered questions include how the trains will get there, considering existing freight bottlenecks, and how costly the shift will be for regional business.

Local officials were surprised by the closure because the mine had political connections. A Republican leader of the Washington legislature helped push through a tax break for TransAlta in 2004 while he worked for the company and chaired the state House's energy committee. At the time he told the Seattle Post-Intelligencer the deal would keep the company sourcing its coal nearby.

In the wake of this week's announcement, area politicians scrambled to make plans to compensate. TransAlta said it set aside C$5 million to cover retraining expenses and the congressman who represents the area pledged to work for economic development programs. A local paper quoted an economist who noted that the air around Centralia would likely now be cleaner.

Supreme Court to decide if ruthless competition is unfair

Where's the line between ruthless competition and unfair business practices? That's the basic question before the U.S. Supreme Court today as it considers an earlier verdict against Weyerhaeuser for violating antitrust laws.

As detailed in Hal Bernton's excellent overview in The Seattle Times, Weyerhaeuser allegedly bid up the price of alder logs across the region in order to drive rivals out of business. The Fortune 100 company argues that it developed the market for alder products through innovation and marketing.

The case is another sign that the wood-products industry that largely built Cascadia is a global business. The small mills that sued Weyerhaeuser still harvest logs from nearby forests and say the ability of local firms to prosper is at stake. The wood market in question amounts to a rounding error for Weyerhaeuser, which is under pressure from Wall Street as it competes for global markets.

So this is what took so long at the border

Thousands of Americans returning from a Thanksgiving weekend in British Columbia clogged the border for hours on Sunday. It may be an indication of costly bottlenecks with the 2010 Olympics.

My snow-covered Subaru reached the south-bound crossing at 6:30 p.m. -- after nearly two hours in line -- with me still in long underwear, fleece and post-snowshoeing hat hair. I identified myself as a journalist who had spent two nights at Whistler and handed the agent my American passport. Our conversation included this:

Agent: Do you have anything to declare?

Me: No. I didn't do any shopping.

Agent: I didn't ask that. Did anyone give you anything?

Me: No

Agent (seeing the Granny Smith apple sitting on the passenger seat): What about that apple?

Me: I bought it at the store to eat on the way.

Agent: That's a $500 fine. It's illegal to bring in fruits or vegetables without filling out a customs form. It's on the sign out there, unless it's covered with snow.

Me: Oh. I didn't know that. It had a "Grown in Washington" sticker on it.

Agent: Is there a sticker on it?

Me: No, I peeled it off.

Agent: Let me see the apple. (pause) I'm confiscating it. If there's no sticker it could have come from anywhere.

The interview took just a few minutes but left a bad taste. If every car was questioned like this, no wonder the border delays mounted -- to four hours by early Sunday evening, according to local radio. This kind of hair-splitting about obscure rules, not to mention new passport requirements, will make crossing the border more difficult and certainly turn off casual visitors.

In order to not waste the economic opportunity from the 2010 games, it's critical that Washington and B.C. convince their federal governments to fund better infrastructure at the border and use much clearer standards for screening travelers.

Seattle study finds that tolls work

Widespread use of toll roads could cut traffic congestion, according to an eight-month study of drivers in the Seattle area.

Tolls, especially at peak times, are key to funding new projects and making transit economically viable. But don't expect them soon. The head of the state Transportation Commission told the Seattle Times that the area has too little experience with tolls and the public won't accept them. "The politics of that is just too tough," said Richard Ford, commission chairman.

In the study, drivers' dashboards were fitted with electronic devices that tracked their travel, and they were charged virtual tolls ranging from five to 50 cents a mile, according to the paper. Charges were deducted from accounts of between $600 and $3,000 set up for each driver and participants could keep whatever money was left at the end of the experiment. About 80 percent of participants drove less or changed routes and travel times to avoid the highest tolls.

But incoming state Sen. Ed Murray of Seattle, who chairs the House Transportation Committee, said there is already widespread opposition to tolls, even to fund projects like replacing a floating bridge. "This isn't Amsterdam -- this is the West," he said. "One of the things we have to understand is whether the culture for this (tolls) exists here," he added. "It doesn't now. It don't think that's going to be easy to overcome."

B.C. wants to stop new private health clinic

British Columbia's government is looking for ways to stop a new for-profit private clinic that could help make the region a center for the medical industry.

The Vancouver center would charge a fee for "urgent care," a violation of the Canada Health Act, which governs the country's publicly funded health care system and bans private billing for medically necessary services. Though some private clinics for specialized care already exist, critics see the latest as an attempt to undermine the social safety net rather than stimulate new industry. The government may seek a court order or financial penalties to prevent the clinic from opening this week.

Victoria industry suffering from city's image

Victoria's key tourism industry is suffering from the city's image as a place for little more than English gardens and high tea. Not to mention raw sewage.

The total number of visitors to the British Columbia capital has been flat for about a decade and revenues aren't keeping up with inflation, according to BC Business magazine (registration required). The city recently launched a C$160,000 effort to rebrand itself as a destination for dining, shopping and outdoor sports. But hurdles include dowdy shops downtown, an old ferry terminal and a relatively small C$3 million marketing budget.

The city's image has also been hurt by its continued dumping of millions of gallons of raw sewage into the ocean, though the government recently announced plans to build a treatment system. Delta Air Lines is launching seasonal nonstop flights to Salt Lake City next summer, which could reverse the 8 percent drop in visitors from the U.S. earlier this year. That's important because visitors from the U.S. generally spend more than those from elsewhere in Canada. But Victoria has a way to go before it can capitalize on the exposure of the 2010 Olympics.

New Alaska pipeline to impact Cascadia business

Here's another impact of the U.S. elections: plans for a new natural gas pipeline from Alaska may stall, potentially costing Cascadia business.

At issue is a plan where Alaska's taxpayers to would buy 20 percent of a $22 billion proposed pipeline from the northern part of the state through Canada to the U.S. Midwest. The construction project -- considered one of the biggest ever -- could supply years of staging business in B.C. and Washington, as well as give a boost to Seattle's Alaska Airlines and the rest of the travel industry.

The project's fate is unclear since the Nov. 7 election, when Alaskans tossed out Gov. Frank Murkowski -- who pushed the plan -- in favor of political unknown Sarah Palin, the Republican mayor of a small town. Democratic former Gov. Tony Knowles was the favorite of big business because of his oil-friendly history. Palin has criticized many details negotiated by Murkowski and is set to reconsider the plan when she takes office on Dec. 4.

Real estate slump transforming region

As home sales across Cascadia continue to cool, there's increasing evidence of how rising prices are directing development to new areas.

In British Columbia the number of home sales slid 11 percent in October, the fourth straight decline, yet average home price rose 20 percent to C$410,728. In Washington the number of sales during the latest quarter slid 16 percent as the median sale price topped $300,000. Across the region the number of sales dropped as prices became less affordable.

What's remarkable is how the slowdown is changing development. In B.C., rural areas are being transformed as retirees and newcomers seek affordable real estate. Similarly, development of new condos is transforming Washington coast communities such as Ocean Shores, Westport and Long Beach.

National newspaper expands in B.C.

British Columbia's booming economy and population has convinced the national Globe and Mail to expand its presence in the region.

Since launching a B.C. section of the paper in 2005, circulation in the province reportedly is up 8 percent on weekdays and 7 percent on weekends. The Toronto paper now has 13 journalists in Vancouver (up from two 20 years ago) and recently elevated the title of the new head of its B.C. office to editor from bureau chief. (Note: B.C. headlines from the Globe and Mail run on the left sidebar of this page.)

Dirty water costing Vancouver businesses

Dirty water flowing through Vancouver's taps in the aftermath of recent flooding is likely costing the local economy millions of dollars, according to David Park, chief economist for the Vancouver Board of Trade.

The area has been getting back to normal since last weekend, though some residents and businesses still had to boil tapwater. The overall impact is likely to be small given Greater Vancouver's overall gross domestic product of about $90 billion, Park said.

Seattle newspaper latest target in cross-border deals

A once-thriving suburban Seattle newspaper has been sold to a Victoria publisher, in the region's latest cross-border corporate deal.

Black Press, owner dozens of papers in British Columbia and Washington, acquired the daily King County Journal, which has a modern printing plant and circulates east and south of Seattle. The paper once dominated the suburbs but has lost at least half of its readership since the early 1990s thanks to hazy focus on the market, cost-cutting and an unambitious Internet presence. Black Press' plans aren't clear, but surely the new owner won't continue the status quo. Deep cuts were announced when it bought a paper in Akron, Ohio.

The deal widens Black Press' reach thruough the region. Similar past regional deals include Interfor's acquisition last year of timberlands and mills in Washington and Oregon, Cray's purchase of B.C. computer firm OctigaBay in 2004 and Weyerhaeuser's takeover of MacMillan Bloedel in 1999.

Tacoma port sees continued boom

The Port of Tacoma approved a new budget that anticipates continued growth in 2007 and doesn't increase taxes.

Rising property values and new construction mean the port generates more money from the same tax rate, which reportedly has remained the same for nearly a decade. Profit should rise 28 percent, partly thanks to the port's booming traffic.

Soaring land values also bailed out the Port of Seattle. It forecast increased revenues from higher property assessments and kept its higher levy rate basically unchanged. Traffic through Seattle, though, has been declining.

Seattle train hub draws closer

Seattle Mayor Greg Nickels struck a deal to buy King Street Station from the BNSF railroad for $1, making long-delayed renovation of the facility into a passenger hub more likely.

About a third of the $29 million for the project comes from additional taxes Seattle voters approved earlier this month. It's hoped that the renovation of the main rooms, entry areas and clock tower will help make train travel between Vancouver and Portland more attractive.

Eventually the station could be a key part of a regional train network providing an alternative to clogged highways. This could include the slightly used line in the Eastside suburbs that is slated to be replaced by a bike trail.

Washington's renewable-energy law sparks enthusiasm

Washington's new requirement that utilities generate more renewable energy is supposed to spell doom for the state's economy. But someone forgot to tell a business group in Seattle.

About 60 venture capitalists, private investors and financial-industry types could barely conceal their enthusiasm during a forum last week on investment opportunities in the biofuel industry. The idea is that voter approval of I-937, which requires utilities to generate 15 percent of their energy from non-hydro renewable energy by 2020, is a potential jobs goldmine for the state.

"This could make Washington a leader," said John Plaza, president of Imperium Renewables, which recently started building a plant in Aberdeen. Each dollar of investment in biofuel technology stimulates about $2.50 in add-on benefit, he said.

Those predictions are in stark contrast to the doom prophesized by opponents of the renewable-energy law. The Association of Washington Business said the measure would raise power bills by up to $370 million a year and cost up to 7,100 jobs.

Presenters at the forum at law firm Preston, Gates claimed opportunities include technology to reduce energy consumption, improve the efficiency of the region's electrical grid and generate energy from plants such as wheat, soy and algae. One representative of a major regional utility said his company plans substantial investment in the new technology.

Risks of the new mandata include instability of the tax system, falling oil prices and difficulty siting new plants, participants said. But the law should create incentives to solve some of those problems. For example, Seattle City Light adopted a zero-emissions policy in 2004 and helped create a carbon market in the state, said K.C. Goldon, policy director of Climate Solutions, the nonprofit that sponsored the forum. The utility's move directly led to development of the first biodiesel plant here, he said.

B.C. plans to lure foreign grads to fill job gap

British Columbia plans to lure more foreign students and encourage them to stay to fill the province's employment gap.

About a million new jobs are forecast over the next decade, while only about 650,000 people are expected to graduate from the province's high schools, according to the Vancouver Sun. The province wants the national government to let graduates from abroad stay in the hope that they will help build trade, investment and cultural links with their native countries, helping make B.C. North America's "Asia-Pacific gateway."

Immigrants are behind one in five U.S. startups (and about 40 percent of tech startups), according to a study last week by the National Venture Capital Association. Post-Sept. 11 rules have made it more difficult to enter the U.S. and there is vocal opposition to allowing more people with technical skills.

Meanwhile, Vancouver already has one of the world's highest rates of foreign-born population, according to a survey in The Economist. Current rules allow graduates to work for a year in Vancouver or two years in the rest of B.C. after school. Plans call for extending that to two years for the entire province.

Industrial land may need saving next

Metropolitan sprawl and public attitudes are bottlenecks for the region's ports, according to speaker after speaker at a conference on the region's economy last Friday in Whistler, B.C.

In Vancouver, housing development is spreading over formerly open land outside the city, devouring space for port-related and industrial use and making it harder to develop transportation infrastructure. Highway 1, the main arterial to eastern Canada, is frequently clogged and comes nowhere near the ports, yet there's plenty of opposition to plans to connect them.

Vancouver Port CEO Gordon Houston said the Vancouver area may need to set aside "industrial land reserves" similar to conservation areas designed to protect wilderness. He called for tax changes to take away the incentive to build housing on open land. Seattle's port has tried to deal with a lack of space by siting distribution centers far from the waterfront.

A bigger problem is a lack of appreciation of the importance of the ports to the region's economy, according to most speakers at the Pacific Northwest Economic Region conference. An official of the Dutch consulate claimed that residents of Rotterdam, Europe's biggest port, are actually proud of their 600-year-old trading history. By contrast, in Washington, trade is said to account for one in five jobs but most residents don't see the connection.

The ports themselves need to build support. Larry Ehl, an official of the Washington Dept. of Transportation, said they should cooperate with conservation groups on new projects rather than trying to resolve protests later. They should make the case, for example, that railroad-expansion projects could take pollution-causing trucks off the road.

Houston said he deals with 17 municipalities who border Vancouver port facilities. "The sentiment ranges from 'Let's work together and move forward' to 'When are you picking up and leaving -- the sooner the better.' That has to change."

Why a major investor is betting on lumber

News that housing starts in the U.S. fell 15 percent last month is just latest blow against the region's lumber companies. So why is one of the world's richest men doubling-up his investment in British Columbia's largest lumber firm?

The weekend Globe and Mail has an excellent overview of the challenges and prospects facing Canada's big producers. It explains that billionaire Jim Patterson, who now owns a quarter of Canfor, likely sees opportunities to consolidate the industry. (The nine biggest Canadian firms have a market value of C$11 billion, $6 billion less than Weyerhaeuser alone, the article says.)

Profits have been killed by slumping demand along with higher costs for energy a rising Canadian dollar. The theory is that the crisis could force Canada's politics to allow large-scale consolidation for the first time.

Vancouver recovering from water crisis

The Vancouver area was starting to recover Saturday from a crisis that threatened the city's lifestyle and an entire industry: a lack of coffee. A letter in the Vancouver Sun called it the worst day in the city's history.

About two million people were warned to boil their drinking water, after brown, murky water began flowing from the city's taps following last week's storms. The warning meant the city's coffee shops couldn't brew coffee drinks. Crisis peaked when a fight broke out at a Costco over a shortage of bottled water.

Apparently the dirty water was caused by extreme rainfall that flooded the city's supply, which isn't thoroughly treated. Many Vancouverites blamed the city's decision years ago to allow logging inside its watershed.

Olympics preparations hit turning point

Organizers of the 2010 Olympics Thursday unveiled the first venue that's ready for competition, even as preparations continued for the border security to handle an expected games-related business boom.

Near Vancouver, the slopes for the freestyle skiing venue at Cypress Mountain are ready several months ahead of schedule, according to the organizing committee. The news is a turning point for the games, though construction on structures at the site continues and overall preparations are far from complete.

It also underscores the need for infrastructure to handle increased traffic around the region leading up to the event. This week, Washington Gov. Chris Gregoire asked the U.S. Homeland Security department to try an altenative to requiring passports to cross the international border. Instead of current plans to require passports starting in 2009, she proposed testing handheld drivers-license scanners that would read security bar codes. Gregoire and B.C. Premier Gordon Campbell have stepped up contacts to address hurdles such as the border crossing.

Needed: Someone in charge of regional transportation

To stem worsening gridlock, the Puget Sound area needs a single agency with the power to prioritize, plan and finance transportation projects.

That's the key recommendation of a preliminary report released Wednesday by the Regional Transportation Commission, a group set up by the governor earlier this year. The group plans to issue specific proposals and funding ideas by the end of the year.

The report is significant because it lays out a series of observations -- though seemingly obvious -- that haven't been made at a statewide policy level. It's an effort to break the log jam of the area's six transportation agencies, which famously bat over priorities and jurisdiction (remember the Seattle monorail versus Sound Transit light rail versus Metro?). It's worth noting that Vancouver and Portland have regional transportation agencies that already have made substantial progress.

Among the key points from the 171-page report:

-- As soon as next year, the legislature should create a regional entity that's empowered to prioritize, plan and finance regional transportation infrastructure.

-- Regional governance should be based on regional goals and objectives and should stitch
together existing agencies rather than create a new layer of bureaucracy.

-- The body should have the authority to address the critical needs in planning and finance,
including responsibility for certain elements of growth management and land use.

-- A regional governance structure should be able to address all tax and usage based
revenue sources as a part of a systemic financing strategy.

-- The region should use dynamic tolling, faring and parking fees in order to shift demand so that transit serves more peak-hour users. Taxes should be used to shift demand, not as the main financing tool.

Expect to hear more from microbrewers

Brewers of craft beer in Washington hope a new marketing group will help them mimic the success of the state's wine promoters.

The state-sanctioned commission will represent breweries that produce less than 100,000 barrels annually per location. The first priority is promotion of Washington beer inside the state, where 99 percent of beer consumed reportedly comes from elsewhere.

The commission, approved by the legislature this year, will pay for itself by charging brewers 10 cents per barrel on up to 10,000 barrels per brewer, and will generate revenue from commission-sponsored festivals. Washington has 84 microbreweries, trailing only California and Colorado.

Faster Seattle-Portland trains ahead

Passenger trains would travel faster between Seattle and Portland under plans reported in today's News Tribune.

The new route south of Tacoma would cut the distance and allow faster speeds, shaving six minutes off the total trip by 2010. The move would allow closer coordination with commuter rail in Tacoma and should improve the reliability of passenger service by separating it from tracks used by freight trains.

Jobless rates near record lows

Unemployment rates in Cascadia dropped again in October, a sign of the region's strong job market.

Washington's jobless rate dropped to 4.8 percent, sending the average so far this year to 4.9 percent, the lowest since 1999. Oregon's jobless rate stood at 5.1 percent and Idaho's stood at 3.2 percent, well below the national rate of 4.4 percent. British Columbia's rate was 4.6 percent, compared to 6.2 percent nationally.

In the Seattle area, unemployment dropped to 3.9 percent. The lowest rate in Washington was in San Juan County, with 2.9 percent, while the highest was in Columbia and Grays Harbor counties, with 6.4 percent -- almost two points less than the month before.

Cascadia firms pass green test

A handful of Cascadia companies are among the top 50 eco-friendly businesses in the U.S., according to Inc. magazine. The subjective list, called the Green 50, is a play on the magazine's annual ranking of 500 top startups.

A few caught my eye:

Burgerville, a Vancouver, Wash., fast-food chain, shoots for near-sustainability. It buys all its beef from a natural coop, powers its restaurants with wind power and started a program to turn cooking oil into bidiesel.

Ryzex Group of Bellingham recycles bar-code scanners and other electronic equipment. It expects revenue of $75 million this year.

Collins Companies of Portland among the first timber companies to seek certification from the Forest Stewardship Council, an organization that vouches for the long-term viability of forests.

Teragren of Bainbridge Island, Wash., uses sustainably grown bamboo for floors and furniture. Fast-growing bamboo supposedly has less impact that other kinds of wood. The compay is trying to market it for building materials such as trusses that have traditionally belonged to softwood.

Prometheus Energy of Seattle developed a process to capture and purify methane gas, and turn it into liquefied natural gas to power buses. The company taps landfills to power buses in nearby communities.

Two reasons why Burner lost Democratic landslide

Democrat Darcy Burner publicly conceded today to Rep. Dave Reichert after the latest round of ballots showed that he won narrow reelection.

There are at least two explanations for Burner's loss. Some voters likely were turned off by the way she turned almost every public pronouncement into a party-line critique of the Bush Administration's policies. Voters want to trust candidates -- especially in moderate district like Washington's 8th -- so personality trumps well-rehearsed talking points.

Burner was the only Democrat to challenge Reichert, a former sheriff, well before the anti-Republican wave began to swell. But her lack of political experience was Reichert's best asset. Jim Brunner has an account of Burner's press conference today on a Seattle Times blog.

Seattle's Sonics snub isn't the last word

One of the 10 most-emailed stories on nytimes.com Monday told how Seattle voters gladly chased away the Sonics by refusing to pay for a new arena. In the photo, the head of the group that sponsored the vote, Citizens for More Important Things, stands in the rain in front of a billboard adverizing a Death Cab for Cutie show.

Clearly Seattleites are tired of subsidizing millionaire owners who won't even invest in winning teams. In an era when the city can't properly fund its schools, clinics or roads, there's no reason to spend another $200 million to rebuild an arena. (Here's a summary of events so far.)

But it's also true that the vote missed the importance of major-league sports to the Seattle area.

“I’m not saying it’s the most important thing or the only thing, but I think professional sports are an important component to the overall economy and quality of life in any marketplace,” the new Sonics owner told the New York Times. “It’s about flying the flag of the city nationally and globally.”

Maybe the best outcome would be a privately funded stadium (that could also house a pro hockey team) in Bellevue, right next to the future light rail lines. The state legislature will be under pressure in January to help at least with area infrastructure. That seems reasonable if the funding also covers arts groups and other entertainment that make the area attractive.

Vancouver project needs bailout

Vancouver's massive new convention center wants financial help, making it the latest project to seek a bailout from British Columbia taxpayers.

Backers haven't said exactly how much they need, on top of the C$362 million the province has already committed for the 1.1 million-square-foot waterfront project. The bill would follow rising costs for the Olympics and transit projects.

Though the convention center would surely provide future economic benefit, the city is currently considering stifling tax increases now.

Cascadia getting new clout in D.C.

During this year's campaign, Bremerton Congressman Norm Dicks, who first went to Capitol Hill in 1976, told everyone he could that he wanted a Democratic victory so he would finally be called "Mr. Chairman."

He's likely to get his wish when Democrats take control of Congress in January. The sea change will give more clout to Washington, where both senators and seven of nine representatives are Democrats, and to Oregon, where one senator and four of five representatives are Democrats.

The federal deficit, spending in Iraq and pressure to live up to campaign pledges of fiscal restraint will limit the spoils. Still, Dicks (WA, 6th), who will chair the subcommittee that controls funding for the EPA and Interior department, has said funding cleanup of Puget Sound is a top priority. Even if funds are limited, at least the region's representatives will be at the table to do the carving.

Here's a summary of likely key leadership positions, according to multiple local reports:

Sen. Patty Murray: Appropriations subcommittee on transportation.

Sen. Maria Cantwell: Commerce subcommittee on fisheries and Coast Guard.

Sen. Ron Wyden: Energy and Natural Resources subcommittee on forestry.

Rep. Jim McDermott: Ways and Means subcommittee dealing with health care.

Rep. Norm Dicks: Appropriations subcommittee for the EPA and Department of the Interior.

Rep. Peter DeFazio: Transportation Committee's surface transportation subcommittee.

Rep. David Wu: Science Committee's subcommittee on environment, technology and standards.

Too much rain for business -- even for Cascadia

Cascadia is no stranger to fall rainstorms. But this year's record-setting onslaught is already causing economic damage across the region -- and it's barely mid-November.

There may have been too much water even for salmon. The floods likely washed fish away from spawning areas, potentially cutting the number of salmon that can be caught in the future.

Despite the intensely local coverage of the storms so far, their impact has been roughly even from southern Oregon to British Columbia. Roads have been washed out, trains halted and ferries cancelled. Farmers face months of costly cleanup from flooding in valleys from the Willamette to the Chilliwack. In Oregon, damage to roads leading to Mt. Hood threatens the tourist industry.

On the flip side, rebuilding should be helped by government disaster aid following declarations of states of emergency in 24 counties in Washington and at least nine more in Oregon. The storms have been dumping heavy snow across the Cascades, which may mean a robust start to ski season -- as soon as skiers can get to the mountains.

Dems pressed to flex new power in Olympia

The first reports are in of the challenge Washington Democrats face with their strengthened majorities in Olympia.

Democrats likely have a 31-18 seat majority in the state Senate and a 62-36 split in the state House. The danger is that they will raise taxes and increase spending, courting a backlash against Gov. Chris Gregoire in 2008. From The Seattle Times:

The wish list that interest groups want Democrats to deliver next year includes salary increases for teachers and state workers, better access to health care, a boost in funding for public schools, paid family leave and a ban on a toxic flame retardant present in televisions, computers and other consumer products.

Blocking a better bridge won't make the region green

A Seattle neighborhood group wants to block an expansion of the 520 floating bridge freeway because it would supposedly cause visual blight and add to global warming by encouraging cars in the city.

The new plan would replace the existing earthquake-damaged bridge with one of essentially the same four-lane size. Unfortunately current limits on road capacity -- without viable alternate forms of transportation -- don't discourage cars, they just make cars sit in traffic longer. Plans for a new bridge with two extra lanes for transit and a dedicated bike lane would encourage transit use, especially as the time to drive in a car grows longer.

Proponents of the so-called "green alternative" have cost on their side, since supposedly it would be $1.8 billion less a six-lane project, according to The Seattle Times. But residents of the region are unlikely to pony up even the remaining $3.5 billion or so without gaining increased mobility.

Vancouver wants room for more whales

A recent poll found that 85 percent of Vancouver-area residents support expansion of the city's aquarium in Stanley Park, a project that would boost a major tourist magnet in time for the 2010 Olympics.

The poll, which was sponsored by the aquarium, paints a sharp contrast with Seattle, where activists are hamstringing the Woodland Park Zoo's plans to build a 700-car parking garage to accommodate current visitors. A planned expansion of Seattle's aquarium -- also a tourist attraction -- is years away, pending rebuilding of the waterfront viaduct freeway.

Vancouver Aquarium plans a 50 percent expansion that would include adding more whales or dolphins. Construction is supposed to start next spring and would cost 32 trees.

A call for long-range transit planning

Here's the first article in a daily paper explaining why the rail line running through Seattle's Eastside suburbs needs to be preserved instead of turned into a bike trail.

The critical point: elected representatives need to plan for the long-term needs of this region -- an area likely to double in population -- rather than dote on interest groups. This means using the rail corridor to supplement I-405, which is currently the key priority of the highway-loving Department of Transportation. It also means preserving the rail corridor for mass transit even if the current owner wants to sell it.

Concerns about trade policy under Democrats

The new Democratic majority in Congress is bad news for trade between the U.S. and Canada, according to some analysts cited by Canada's National Post.

Conventional wisdom says Republicans are more supportive of free trade. But the Bush Administration's signature policies include a package of trade-distorting subsidies to U.S. farmers and tariffs on steel and lumber, each intended to protect a segment of U.S. industry at the expense of others, not to mention costing consumers. Democrats tend to be sensitive to organized labor and some decry trade as bad for U.S. workers. The key is to remind politicians of all stripes that there's nothing inherently wrong with trade -- just poor trade policy.

Democrats face challenges after big wins

Sure, Democrats padded their majority in the Washington legislature and Senator Maria Cantwell won a surprisingly easy reelection. But there were hints of challenges to come.

Cantwell dispatched Republican Mike McGavick by about 17 percentage points, as of early today. McGavick had run a strong campaign until the final months, when it veered into wedge issues like promoting drug testing for welfare mothers and clamping down on the Mexican border. Challengers from third parties had a negligible impact. At her victory rally at the Seattle Sheraton, the most cheritable thing Cantwell could say was "thank you to my opponent for putting his name on the ballot."

Now it's clear that the Democratic majority needs to translate its gains -- especially on the state level -- into visible improvements on issues like transportation and education financing, while still improving the climate for job-creating businesses. State party chair Dwight Pelz noted that the reelection campaign begins today for Gov. Chris Gregoire, who faces another challenge from Republican Dino Rossi.

There were a few other signs of obstacles ahead. Congressman Dave Reichert held a narrow lead over Democratic challenger Darcy Burner, suggesting that voters want to vote for opposition candidates rather than against incumbents. Meanwhile the Democratic base isn't entirely united. Cantwell's victory speech was interrupted by a group of supporters who loudly chanted "Stop the war!" until the dozens of supporters on stage drowned them out with a rehearsed "Six more years!"

Before the polls had even closed, disgraced former U.S. House leader Tom Delay told TV interviewers that the Democrats will likely face a "lame-duck majority" when they take office. National Republican strategy may be to obstruct any policies by Democrats. But without substantial accomplishments Democrats won't be celebrating in 2008.

B.C. ruling party plans lower taxes

British Columbia's ruling party announced plans to cut income taxes in order to retain talent in the province. The announcement didn't provide details on the timing or say how to pay for the cuts.

B.C. reportedly has Canada's lowest provincial tax rates for people earning up to $67,500. But taxes on income between $67,500 and $150,000 rise to a high of 14.7 percent. Neighboring Alberta taxes that income level at a 10 percent rate -- and has both the country's lowest jobless rate and highest wages.

A group created by Premier Gordon Campbell, the B.C. Competition Council, has urged lowering taxes to 10.9 percent for those earning between $77,500 and $150,000. Others point out that the soaring cost of housing takes more bite of personal income than taxes and is calling on the ruling party to act.

Shrinking newspapers are still good business

Cascadia's newspapers are reporting sharp drops in circulation and the Seattle papers claim they can't survive unless one disappears. But maybe the newspaper business isn't so bad after all.

The circulation of Vancouver's two dailies fell to below the level they had in 1957, when they began a profit-sharing partnership, despite at least tripling of the area's population, according to The Tyee. But the company that owns both papers -- and TV stations and newspapers in Victoria and across the Canadian west -- generates profit margins of more than 30 percent on some of its papers.

Meanwhile circulation at The Seattle Times and Post-Intelligencer is dropping, partly by choice. The idea is to put the papers in front of readers who advertisers want to reach; once statewide papers are now mostly found in three counties. Still, each claims it can't go on with the competition. On Monday an independent group asked a court to let it in on negotiations that would probably close one of the papers.

Canada limits Vancouver's airport

Vancouver's airport, which aims to be a larger hub of traffic from around North America to Asia, is being held back by Canada's restrictive air agreements.

For example, Singapore Airlines wants to add direct daily service between Vancouver and Singapore (in addition to its current service via Seoul), but can't because of government rules, according to the Vancouver Sun. Instead it may have to add service to Seattle, which is covered by a U.S. treaty that allows unlimited flights to Singapore.

"We don't want to do that, but that's just the business reality," an airline vice president told the paper. "We want to be here another 20 years, but if we're still restricted to three times a week, where do we go to grow?"

One victim of looser rules would be Air Canada, which benefits from restrictions on premium foreign carriers. The article points out that Vancouver's long-term advantages include room to expand and lack of visa hassles that hinder travelers going from Asia to Latin America through a U.S. airport.

Plan to fix Seattle freeway threatens ... birds

Add a new wrinkle to the saga of how to replace Seattle's 520 floating bridge freeway: naturalists from overseas object to the leading design option.

The new bridge would cover more of the University of Washington's arboretum and encroach on habitat for great blue herons, according to an article in The Seattle Times. Naturalists from overseas have written to object, the director of the gardens told the paper. "This is not a local issue."

The article also mentions that the design would include dedicated lanes for transit for the first time and coordinate with light rail in Seattle, a critical step to managing growth in the region. The city council is expected to consider approving the design next week and the governor is supposed to sign off on how to pay for the $5 billion project this month.

Biodiesel coming to timber town's rescue

Aberdeen, the depressed timber town most notable recently as the home of Kurt Cobain, is hoping for economic revival based on renewable energy.

After shriveling with the timber and fishing industries, the town recently broke ground on the country's largest biodiesel plant, which is supposed to make 100 million gallons of fuel a year from farm crops. Seattle-based Imperium Renewables says its plant will employ 300 during construction and 65 full-time when it opens next year, according a Tim Egan article in the New York Times.

The hope is that the plant will attract related renewable-energy technology. The town previously pinned its hopes on logging more of the remaining stands of nearby old-growth forest, expanding exports to Asia through the harbor and on the now-mothballed nuclear power plant nearby. Meanwhile Weyerhaeuser recently closed two mills in the area, costing a few hundred more jobs.

Maybe Seattle should ban junk food

Seattle voters will decide Tuesday whether to effectively ban strip clubs from the city. Following a nanny-state trend that's already curbed cigarettes, voters might as well adopt a ban on junk food in the workplace, columnist Bruce Ramsey suggests in a column.

It turns out that moralistic arguments against the vice du jour echo Washington's past. After all, it wasn't long ago that the state arrested people who drank alcohol.

Vancouver warms to congestion pricing

There seems to be growing support for congestion pricing and tolls in the Vancouver area, according to reports of a public forum on the area's transportation system this week.

Current plans call for a massive series of roads, railways and overpasses designed to speed port traffic. Several opponents of major road projects spoke at the forum sponsored by the Greater Vancouver Regional District. What's surprising is that representatives from local chambers of commerce advocated tolls on bridges, and even the head of the B.C. trucking association reportedly wasn't opposed to the idea.

The question appears to be whether a series of congestion pricing rules should be imposed around the metro area simultaneously or incrementally, according to this article. Urban planner Gordon Price predicted an overnight change in sentiment, where the region signs up a private partner to collect tolls and use the proceeds for transportation projects.

He was quoted like this on plans to move ahead with traditional fixes like expanding roads: "It's almost heart-breaking in a city like this," Price said. "We somehow have the resources, measured in the billions, to do what we know isn't going to work in the long run, and fail to do that which we know does."

B.C. taking all workers

"If you're breathing, Canada's West wants you," an economist with CIBC World Markets said after release of the latest employment figures Friday.

British Columbia's jobless rate dipped to 4.6 percent and Alberta's fell to a 30-year low of 3 percent in October, thanks to the booming energy industry. B.C.'s rate could fall below 4 percent in the next year, an economist said. Meanwhile Canada's national rate was 6.2 percent, due to industrial downsizing in eastern provinces. In the U.S., the nationwide rate fell to a five-year low of 4.4 percent.

Ferry riders forced to pay steadily more

The price of traveling by ferry in Cascadia continues to rise as government funding fails to keep pace with demand.

This week, fares on B.C. Ferries' major routes to Vancouver Island rose 2.8 percent and fares on smaller routes in the Gulf Islands climbed 4.4 percent. Commercial rates are expected to rise next month. Fares already increased earlier this year to cover then-rising fuel costs.

Meanwhile Washington State Ferries, which increased fares by 6 percent in March, is considering another hike of 5 to 20 percent. This month the system will start charging for wi-fi Internet access, a service used by thousands of commuters. It will soon cost $29.95 a month.

It's unclear why ferry users are expected to pay directly for for transportation infrastructure while drivers get free use of the region's clogged roads. B.C.'s transportation minister said the increases won't affect the economy and dismissed complaints, saying people will adjust.

If Portland can handle strip clubs...

Seattle's voters are about to decide whether to overturn new draconian rules that essentially shut down the city's tame strip clubs. Meanwhile Portland has at least 12 times as many clubs and looser rules than Seattle ever has, according to an excellent story by Jim Brunner in The Seattle Times.

"Would anybody say Seattle is a superior place to Portland because it has fewer adult bookstores or strip clubs? I think that's such a bizarre notion," said Charles Hinkle, a Portland attorney who specializes in free-speech cases and has argued against strip-club regulations in Oregon. "I don't think anybody in Seattle would list that in the top 100 factors as to why they chose Seattle to live."

Somehow Portland still manages to be rated one of the most livable cities in the country. Ditto for Vancouver. Any idea how many clubs they have?

Election picks from a regional perspective

Readers have asked Cascadia Report for input on Seattle-area ballot issues. So here's our logic, in brief, on some key measures:

-- Washington Initiative 933: No. The measure would overturn land-use rules developed democratically over the last 15 years to manage growth. Sure, those policies need to be fair, consistent and not hurt the little guy. Instead of gutting the rules with this measure, hold elected representatives accountable for the hard decisions necessary to handle the region's growth.

-- Washington Initiative 920: No. Cascadia is steeped in the idea that individuals should carve their own fortune, not inherit it. The estate tax helps preserve a level playing field by affecting only the very wealthiest citizens. The fact that a few rich sponsors paid signature gatherers to get this measure on the ballot and then have misrepresented it as a "death tax" that affects everyone makes this vote even easier.

-- Washington Initiative 937: Yes. We're generally not fans of legislation by initiative. But requiring that large utilities generate 15 percent of their energy from new renewable sources by 2020 is a reasonable goal. This should stimulate resourceful industry and force the state to deal with thorny details like siting and building costs.

-- King County Prop. 2: Yes. We would prefer a progressive tax to finance transportation. But this .01 percent increase in sales tax dedicated to more bus service along the area's busiest routes is still an essential step toward building a regional transit system.

-- U.S. Senate: Maria Cantwell. She advocates energy efficiency and protection of this region's environment, and is an essential check on the Bush Administration. Republican challenger Mike McGavick could have made a very effective senator but took a wrong turn in his campaign, especially with divisive gambits like calling for drug testing of welfare mothers, oil drilling in a national wildlife refuge and wasteful spending on an ineffective wall along the Mexican border.

-- U.S. House, 7th District: Linnea Noreen. This young Independent believes Seattle should be represented in Congress by someone who wants to work for realistic solutions to heath care, education and transportation problems. Incumbent Democrat Jim McDermott has marginalized himself with extreme positions. Listen to the candidates on KUOW's afternoon interview show.

-- U.S. House, 8th District: Darcy Burner. This is a vote against the Bush Administration's policies. While there are more qualified Democrats to hold the seat (they chose not to run), incumbent Republican Dave Reichert is mostly a rubber stamp for policies that are bankrupting the country with a disastrous war and costly yet ineffective tax cuts. The Republican majority he supports also blocks conservation measures important to this region.

-- Washington Supreme Court: Susan Owens. She's a nonpartisan judge who takes her responsibility seriously. Challenger Stephen Johnson is an ideologue Republican state senator with a conservative agenda to push on the court. He's mostly funded by the Building Industry Association of Washington, whose main goal is to gut regulation -- no matter how popular with the public.

-- Seattle Initiative 91: No. This measure would prevent almost all city spending on sports despite the spillover economic benefits that can result. Make sure elected officials make wise decisions, but don't tie their hands with this crude measure requiring an arbitrary level of return on investment.

-- Seattle Referendum 1: No. Seattle's tame strip clubs don't need more draconian regulation. This is a legitimate industry that serves consenting adults from around the region. The city should spend its time solving real problems, not legislating morality.

-- Seattle Prop. 1: No. This would increase property taxes to pay for basic services like roads and bridges. The city has sweetened the deal by promising $38 million for bicycle paths. Defeat this measure so the city has to prioritize critical projects within its budget.

One Seattle voter, two elections, four ballots

The Seattle area is still having trouble running glitch-free elections -- at least if this experience is an indication.

Before the primary election in September I received two ballots, one each at both my current and old addresses. The ballot at my current address included instructions to ignore the extra one. It seemed a sign that King County's well-publicized problems holding a vote had been fixed.

Then, this week, I received two ballots for the general election, at the same two addresses. But now the current and old addresses were switched, with the ballot at the old address instructing me to ignore the one sent to my correct address. I also received two new voter-registration cards with wrong information. When I called the elections department to correct the error, I was told that someone had switched my information again, and they have no record of my current address -- just the old one.

Mistakes can always happen and surely the people at the elections department are doing their best. Regardless, it seems we need to brace for more reports of election mix-ups that may mar the outcome of close races.