Dear Colleagues,

Our states and the nation have faced unprecedented challenges this pastyear. A struggling economy is how most will remember this difficult period,but I would suggest it will also be remembered as a time when we began creating a new path forward in energy and climate change. Within this report,

you will find numerous examples of the progress being made acrossthe West.

Last fall, the Western Governors’ Association (WGA) partnered with the U.S. Department of Energy to launch the Western RenewableEnergy Zones initiative. We set and achieved an aggressive goal of identifying areas within the Western Interconnection that have greatpotential for large-scale development and a low level of environmentalimpacts. Hundreds of stakeholders participated in developing maps,modeling tools and supporting information that will prove invaluable as we next focus on getting the high-voltage transmission lines to bringthose resources to market.

Shortly after the election of President Obama, Governor Schweitzerand I relayed WGA’s priorities for federal action on energy and climatechange. We urged swift adoption and implementation of measures that will provide affordable and clean energy to sustain the country’seconomy, stimulate greater energy efficiency, strengthen energy securityand independence, and reduce greenhouse gases.

The WGA Transportation Fuels Council completed a strategicassessment and began implementing recommendations contained in the 2008report, “Transportation Fuels for the Future.” Alternative fuel development andfuel efficiency are a high priority for the West, and several of our states haveheld or plan to host workshops to increase the development and use of biofuels and other alternative fuels.

These are just a few examples of WGA’s work this past year. Significantwork is also being done to improve forest and rangeland health, ensure sustainable water, improve air quality, transport radioactive waste safely andaddress immigration reform.

The West is leading the way in policies, initiatives and the hard work necessary to sustain our economies and build a diverse, secure energy futurefor our region and our nation. It has been my honor to guide these effortsthroughout the past year.

Sincerely,

Jon M. Huntsman, Jr.Governor of UtahChairman of the Western Governors’ Association

2008-2009 Board of Directors

Gov. Jon M. Huntsman, Jr.,Chairman

Gov. Brian Schweitzer,Vice Chairman

StatesAlaska – Gov. Sarah Palin

Arizona – Gov. Jan Brewer

California – Gov. Arnold

Schwarzenegger

Colorado – Gov. Bill Ritter

Hawaii – Gov. Linda Lingle

Idaho – Gov. C. L. “Butch” Otter

Kansas – Gov. Mark Parkinson

Montana – Gov. Brian Schweitzer

Nebraska – Gov. Dave Heineman

Nevada – Gov. Jim Gibbons

New Mexico – Gov. Bill Richardson

North Dakota – Gov. John Hoeven

Oklahoma – Gov. Brad Henry

Oregon – Gov. Ted Kulongoski

South Dakota – Gov. Michael

Rounds

Texas – Gov. Rick Perry

Utah – Gov. Jon M. Huntsman, Jr.

Washington – Gov. Christine

Gregoire

Wyoming – Gov. Dave Freudenthal

U.S. – Flag PacificIslandsAmerican Samoa –

Gov. Togiola T. A. Tulafono

Guam – Gov. Felix Camacho

Northern Mariana Islands –

Gov. Benigno Fitial

Table of Contents

Board of Directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

About the Western Governors’ Association . . . . . . . . . . . . . . . . . . . . . . . . . . 2

July 2008 - June 2009 Year in Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Finances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Western Governors’ Association Staff Council . . . . . . . . Inside Back Cover

U.S. -Flag Pacific IslandsNorthern Mariana IslandsGuamAmerican Samoa

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About the WesternGovernors’ Association

The Western Governors’ Association isan independent, nonpartisan organizationof Governors representing 19 Westernstates, and three U.S.-flag Pacific islands.Through their Association, Governorsidentify and address key policy and governance issues in natural resources,the environment, human services, economic development, internationalrelations and public management.

Governors select issues for furtherreview based on regional interest andimpact. WGA helps the Governorsdevelop strategies both for complex,long-term issues facing the West and forthe region’s immediate needs. Governorsuse WGA to develop and advocate poli-cies that reflect regional interests andrelationships in debates at the nationaland state levels. WGA also acts as acenter of innovation to find promisingsolutions for problems in the region.

The Governors serve as WGA’s Boardof Directors. The Board meets up tothree times per year. Many Governorshave one or more issues or policy areasfor which they choose to serve as a leadGovernor. With the concurrence of thechairman, lead Governors direct activities,develop proposed positions, chair relatedmeetings, and provide testimony andcomments to Congress, committees andfederal agencies. WGA staff providesassistance for these activities.

During the Annual Meeting, the boardelects a chairman, approves a work planand budget for the upcoming year, andadopts policy resolutions that guide thework of the Association. Between gubernatorial meetings, the WGA StaffCouncil, which comprises the chief ofstaff or a top policy adviser for eachGovernor, reviews and guides WGAactivities.

AcknowledgementsThe Western Governors’ Association

wishes to thank the following federalagencies and organizations for theirfinancial support over the past year:

British PetroleumChevronConocoPhillipsDoris Duke Charitable FoundationFederal Highway AdministrationNational Fish and Wildlife FoundationNature ConservancyRockefeller Brothers FundSouthwest Partnership for Carbon

SequestrationThe Energy FoundationThe William and Flora Hewlett FoundationTurner Foundation, Inc.U.S. Department of Agriculture

■ U.S. Forest Service■ Rural Development Program■ Natural Resources Conservation Service

U.S. Department of Commerce, National Oceanic and Atmospheric Administration

U.S. Department of Energy■ Office of Energy Efficiency and

Renewable Energy, Office of theBiomass Program

■ Office of Electricity and EnergyReliability

■ Office of Environmental Management,Carlsbad Field Office

■ National Renewable Energy Laboratory■ National Energy Technology Laboratory■ National Transportation Program, Office

of Civilian Radioactive WasteManagement

■ Office of Fossil EnergyU.S. Department of the Interior

■ Bureau of ReclamationU.S. Department of TransportationU.S. Environmental Protection Agency,

■ Regional offices: VI, VIII, IX and X■ Office of Air and Radiation■ Office of Air Quality Planning and

Standards■ Office of International Activities■ Office of Water

Western Association of State Highway and Transportation Officials

Wilburforce FoundationWildlife Conservation Society

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Year in ReviewJuly 2008 - June 2009

EnergyAddressing the Challenges ofEnergy and Climate Change

Transforming the country’s energyinfrastructure and economy while reduc-ing greenhouse gas emissions is a toppriority for Western Governors, who havebeen working with and urging swiftaction by the Obama Administration andCongressional leaders.

Governors Jon M. Huntsman, Jr.,Chairman of the Western Governors’Association, and Brian Schweitzer, ViceChairman, met in November with thenPresident-Elect Obama’s transition teamand Congressional leaders to discussWGA’s bipartisan recommendations. TheGovernors have called for swift adoptionand implementation of an energy planthat will provide affordable and cleanenergy to sustain the country’s economy,stimulate greater energy efficiency,strengthen energy security and independ-ence, and reduce greenhouse gas emissions.

“The transformation we are talkingabout is broad based and will requirenew policies, incentives, market mecha-nisms and private-public partnerships to be in place by the end of 2009,”Huntsman said.

The governors’ letter outlined policiesand incentives that would help states andthe country move more aggressively todevelop clean and renewable energyresources that include wind, solar, bio-mass, geothermal, hydro and fossil fuelswith carbon capture and storage.

“Western states are the country’s energybreadbasket, but energy efficiency hasalso got to play a much bigger role,”Schweitzer said. “That includes everythingfrom manufacturing more fuel-efficientvehicles to changing regulatory structuresso they reward utilities for achievingreduced energy usage among their customers.”

Included in the governors’ recommen-dations are:■ Establishment of an aggressive and

achievable national greenhouse gasemissions reduction goal that will putthe United States on a path to con-tribute to global climate stabilization.

■ A mandatory national system for reducing greenhouse gas emissions thatmakes maximum use of market-basedmechanisms. Revenue raised shouldnot be used as a means of sustaining or expanding general governmentaloperations.

■ A national energy efficiency program to reduce existing and future energydemand and thereby reduce green-house gas emissions.

■ Establishment of an oil import reductiongoal that strengthens energy securityand independence. Since nearly 90percent of oil is used for transportation,an energy plan must bring more fuel-efficient and near-zero emission vehiclesinto the market; increase the supply ofdomestically produced, low-carbonfuels; minimize the economic andtechnological uncertainties inherent indeploying high efficiency vehicles anddeveloping and using non-petroleumtransportation fuels; and reduce vehiclemiles traveled and increase mass movement of people and goods.

■ Affordability for lower income energyconsumers through energy efficiencyand cost assistance programs.

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■ Measures that support workforce development and clean energy jobs,adaptation to climate change impacts,reduced consumer impacts – particularlyfor low-income consumers – and transition assistance to industries.

■ Creation of a substantial, long-termnational public investment on the scaleof tens of billions of dollars annuallywill be needed, along with a similarinvestment from the private sector, tosupport the kind of basic and appliedresearch and deployment of clean energy technology and infrastructurethat will result in: • Near-zero greenhouse gas emissions

from new coal-fired electricity gener-ation in 10 years and from existinggeneration no later than 2030.

• Dramatically increased energy fromwind, solar, geothermal, hydro andbiomass resources.

• Expansion and upgrade of the electricity transmission grid and storage capabilities.

• Advanced vehicle and battery technologies and alternative transportation fuels.

• Next generation energy efficiencytechnologies and practices.

The governors’ letter and related information are available on the WGA Web site at www.westgov.org.Lead Governors for Energy issues areFreudenthal, Hoeven, Richardson,Rounds, Schwarzenegger and Schweitzer.Leads for Climate Change are GovernorsRichardson and Schwarzenegger.

Western Renewable Energy ZonesIn an effort to facilitate the construction

of new, utility scale renewable energyfacilities and any needed transmission todeliver that energy across the WesternInterconnection, the Western Governorsand the U.S. Department of Energylaunched the Western Renewable EnergyZones initiative last summer. This workis being conducted in four phases, thefirst of which concluded in May.

The WREZ is using a broad, stake-

holder based process that includes theU.S. Departments of Interior andAgriculture, the Federal Energy RegulatoryCommission, Canadian provincialPremiers, and a diverse group of stake-holders representing renewable energydevelopers, tribal interests, utility planners, environmental groups and government policymakers.

A report on the first phase of worksummarizes several important outcomes.First, and foremost, important steps were

taken in identifying those areas throughout the Western Interconnectionthat have the potential for large scaledevelopment of renewable resources inareas with low environmental impacts.

Stakeholders developed and appliedcriteria to assess renewable resourcesacross the region and a methodology foridentifying and characterizing specificresource-rich areas that could become aWREZ. This included screening out areaswhere development is prohibited orseverely constrained by regulation orstatute, as well as known incompatibilitieswith renewable technologies. The stakeholders will continue to worktoward refining WREZs by evaluatingscreens to the areas to balance the benefits of renewable energy develop-ment with the need to protect wildlifeand crucial habitat.

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The publication of the WREZ reportalso marks the completion of importantwork that will assist the evaluation of avariety of transmission strategies. Theintention of the WREZ initiative is notsimply to identify renewable energyzones in the Western Interconnection,but to facilitate the development of highvoltage transmission to those areas withthe potential for abundant renewableresources and low or easily mitigatedenvironmental impacts.

A modeling tool also was developedto evaluate the relative economic costs of renewable resources on a deliveredbasis, including transmission costs, fromspecific renewable resource areas deliv-ered to specific load centers. The Web-based model will be available toanyone who wants to calculate howmuch energy could be supplied from aWREZ to load centers across the region.

Stakeholders felt it was important toalso identify the breadth of renewableenergy potential across the WesternInterconnection beyond the potential thatcan be found within identified zones.The initiative recognizes that its work onregional development can and should bedone in concert with more localizedefforts to utilize the most cost effectiverenewable energy resources in theWestern Interconnection.

Moving forward, the WREZ initiativewill undertake a range of efforts to laythe foundation for promoting the efficientregional development, procurement anddelivery of energy from renewableresource areas to multiple populationcenters throughout the WesternInterconnection, while balancing impor-tant considerations, including stateobjectives and wildlife sensitivities.

Leads for the WREZ initiative areGovernors Freudenthal, Huntsman andOtter. Support for this program is providedby the U.S. Department of Energy

Transportation Fuels for the Future

Significant progress was made thispast year in implementing recommenda-tions from WGA's 2008 report entitled,Transportation Fuels for the Future. It is notable that despite the economicdownturn, alternative fuel developmentand fuel efficiency remain a high priorityfor the states.

A diverse group of stakeholders participated in a collaborative process toassist in developing the report. It providesa comprehensive overview of the potential of alternative fuels, as well asthe challenges and opportunities for promoting their development regionally.

Following adoption of the report, theGovernors created the WGA TransportationFuels Council to oversee implementation

of their many recommendations. Thecouncil continues to meet regularly todiscuss state initiatives, federal policy andopportunities for regional collaboration.

The council is expected to complete a follow-up report by early summer2009. It will identify priority issueswhere Western states could collaborateand offer recommendations to Congressand the Administration. Those issuesinclude water, infrastructure coordinationand vehicle fuel efficiency. The Councilalso has formed a subcommittee todevelop a framework for a regional per-formance-based greenhouse gas standard.

Gov. Brian Schweitzer addressing theMontana Bioenergy Workshop.

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A Western Strategic Assessment ofBioenergy was completed this past year.The assessment examines the potentialfor future development and creates acomprehensive framework to assess theenvironmental, technical and socioeco-nomic impacts associated with national,state and regional bioenergy and biomassmanagement policies.

While this assessment does not represent the adopted policy of theGovernors, it is already assisting themindividually and collectively as theydevelop bioenergy policies and strategies.WGA is continuing this work through thedevelopment of a National BioenergySiting Model, which will generate higherquality data and have the capability toproduce more extensive analysis of theimpacts of bioenergy development, aswell as existing and future policies.

Advanced biofuels workshops werehosted by WGA this past spring inColorado and Montana. Theworkshops were focused oncontinuing to advance the dialogue on how the West can sustainably develop itsbiomass potential and increasethe use of domestic renewableresources. WGA plans to conduct similar workshops in other states to ensure continued outreach and com-munication as the Governorscontemplate a variety of issuessurrounding the increaseddevelopment of biofuels. WGA also participates in the National BiomassPartnership to educate state decision-makers and ensure that inter-regionalperspectives are communicated.

Leads for this program are GovernorsGregoire, Henry and Rounds. FinancialSupport is provided by The EnergyFoundation, the U.S. Department ofEnergy and the U.S. Department ofAgriculture.

EnvironmentWater

Improved coordination among thestates and federal agencies was a keyrecommendation in the report “WaterNeeds and Strategies for a SustainableFuture” and a subsequent “Next Steps”report. The reports were developed byWGA and its affiliate, the Western StatesWater Council.

Subsequently nine federal agenciesformed the Western States FederalAgency Support Team (WestFAST), pooling their resources to support a fed-eral liaison officer to assist in developinga work plan for implementing thereports’ recommendations. Following isa summary of actions taken over the pastyear and future work.

A grant from the National Oceanicand Atmospheric Administration, is

allowing states to work more closely with scientists, water managers and waterusers to better understand vulnerabilitiesof water systems due to climate changeand to develop drought preparednessplans and climate adaptation strategies.NOAA's National Integrated DroughtInformation System, which WGA supported, will be instrumental in thiseffort. The first in a series of workshopsthroughout the West is planned forOctober of 2009.

WGA and the Water Council also areactive in implementing provisions of theRural Water Supply Act, particularly

Related Resolutionson Energy■ Clean and Diversified

Energy for the West

■ Transportation Fuels forthe Future

■ Changes Needed inElectric Power System toMeet Clean EnergyGoals

■ Transitioning the Westto Clean Energy andEnergy Security

■ Transportation Fuels forthe West: A Roadmapfor Energy Security andImproving theEnvironment and theEconomy

■ Oil and Gas Policy forthe West

■ Advancing Deploymentof Near-Zero EmissionCoal

■ Tax Exempt Status forBonds for TransmissionLine Authorities

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those provisions that call for federal andstate coordination and consultation inassessing rural project needs and federalprogram resources.

Both of the water reports addressedadaptation to climate change. WGA andthe council assisted the CaliforniaDepartment of Water Resources in spon-soring a workshop on the topic last yearand another is planned for November.Participants are focusing on the need tobe prepared for increased variability withrespect to precipitation snowpack,snowmelt runoff, droughts, floods andother severe climatic events.

Last fall, testimony regarding Indianwater rights settlements was presentedbefore the House Resources CommitteeSubcommittee on Water and Power. Of particular note is the enactment oflegislation that is consistent with a waterreport recommendation that called forsettlement agreements to be funded byrevenues from the Reclamation Fund.An Indian Water Rights Settlement symposium, cosponsored by the WSWCand the Native American Rights Fund,will be held in August in Washington.

The nexus between energy use anddevelopment and water resources is anarea of growing concern, recognizingboth the scarcity and interrelated natureof these resources. With WGA oversight,the WSWC identified and explored energy issues as they relate to waterresources and intends to compile existinginformation addressing potential implica-

tions for Western water resources fromanticipated energy development, with anemphasis on ways to mitigate such impacts.

Leads for this issue are GovernorsOtter, Richardson, Ritter and Rounds.Support for this program comes from theNational Oceanic and AtmosphericAdministration.

Air QualityDuring 2009, member states of the

Western Regional Air Partnership workedtoward completing their 10-year plans forreducing regional haze that can impairthe incredible vistas in our national parksand wilderness areas. The states are continuing to implement emissions con-trols for regional haze and are addressingother Clean Air Act milestones as thehaze plans are approved by the U.S.Environmental Protection Agency. TheWRAP is managed jointly by WGA and

the National Tribal EnvironmentalCouncil and provides support to thestates’ collective efforts in reducing haze-causing pollution. Sources contributingto regional haze range from traditionalsmokestack and mobile sources to energyproduction, wildland fire, fugitive dust,off-shore marine shipping and interna-tional transport.

WRAP’s strategic work plan through2011 calls for a “one-atmosphere” tech-nical analysis approach for managingand improving Western air quality acrossthe region, even as each state creates itsown air quality management plan andimplements state-specific air pollutioncontrol strategies.

8

Related Resolutionson Environment■ Western Air Quality

■ Regional and NationalPolicies RegardingGlobal Climate Change

■ Water Quality Issues inthe West

■ The Safe Drinking Water Act

■ State AuthorityRegarding the FederalHydropower Licensing

■ Watershed Restorationthrough Partnerships

■ Federal Non-Tribal Feesin General WaterAdjudications

■ Negotiated Indian WaterRights Settlements

■ Assessing the Risks of Terrorism andSabotage Against High-Level Nuclear WasteShipments to a GeologicRepository or InterimStorage Facility

■ Private Storage andTransportation ofCommercial SpentNuclear Fuel

■ U.S. Department ofEnergy Waste IsolationPilot Plant (WIPP) andTransportation of TRUWaste

■ Enhancing SecurityDuring Transport ofRadioactive Materials inQuantities of Concern

■ Department of EnergyFacilities CleanupProgram

■ Transportation of SpentNuclear Fuel and High-Level Radioactive Waste

The WRAP project provides supportfor all the states in the region to seam-lessly address implementation of hazeplans, recent and ongoing changes to theozone and particulate matter air qualitystandards, as well as coordinated air pollution analysis. Future regional airquality analysis will also include estimatesof the range of impacts from climatechange on air quality.

The WRAP is assisting its memberswith voluntary Greenhouse Gas reportingprotocols for the field exploration andproduction activities of the oil and gasindustry. The protocols are expected tobe completed by the fall of 2009 andwill enable states and affected companiesthroughout the WGA region to have acommon procedure to count and reportemissions from the upstream field opera-tions of the oil and gas sector.

WGA staff will continue to assistMexico’s governments at all levels tobuild institutional capacity to developand manage air quality in order toreduce emissions that cross the borderinto the U.S. This project will supportthe update and improvement of theMexican air emissions inventory.

Support for this program is providedby the U.S. Environmental ProtectionAgency and states, which make contribu-tions for specific projects.

Nuclear Waste TransportationWGA’s Radioactive Waste Transportation

Program is dedicated to the safe anduneventful transportation of nuclearwaste and has overseen thousands ofshipments while maintaining an extraor-dinary safety record over the past 20years. In March, Waste Isolation PilotProgram reached its 10-year milestone,completing more than 7,400 shipments,traveling over 8.7 million miles and permanently disposing of over 113,000containers at the WIPP facility.

Several thousand rail and highwayshipments of transuranic and low-levelwaste originate, pass through or terminatein Western states each year. During2009, more than 1,100 shipments will

pass through Western states on their wayto permanent underground disposal atthe WIPP site in New Mexico. Theseshipments have contributed to the U.S.Department of Energy’s significantcleanup of several Western facilities:

Rocky Flats in Colorado, the main site atLawrence Livermore National Laboratoryin California, and the Kansas City Plant.

In 2008, DOE announced its intentionsto begin shipments from designated“small quantity sites,” including severalin the West. WGA is working with theWestern states and DOE to ensure thatthese shipments meet the Governors’expectation of being safe and uneventful.

The continued success of the WGARadioactive Waste TransportationProgram can be traced to the collabora-tive efforts of 12 Western states and theU.S. Department of Energy CarlsbadField Office and Office of EnvironmentalManagement. At their 2009 AnnualMeeting, the Governors and Secretary of Energy will sign a memorandum ofagreement reaffirming their shared com-mitment to continuing this collaboration.

WGA’s affiliate, the Western InterstateEnergy Board (WIEB), implements theGovernors’ policies related to the shipment of spent nuclear fuel and high-level radioactive waste under theNuclear Waste Policy Act. The WIEBHigh Level Waste Committee will continueto engage with Congress and theAdministration as the future of thenation’s high-level nuclear waste policyis determined.

9

Governors Huntsman, Otter andRichardson serve as leads for these pro-grams, which are supported with fundingfrom the U.S. Department of Energy.

Lands

Forest and Rangeland HealthRecognizing the need for a broader

focus on forest and rangeland health, the Governors’ Forest Health AdvisoryCommittee was re-formed in Decemberto address a wider range of issues,including sustainable forest management,forest mortality from insects and diseases,and the use of woody biomass for energyproduction. Sustainable healthy forestsand rangelands help provide clean andabundant water, clean air, resources forrenewable energy, carbon sequestration,fish and wildlife habitat, and recreationalopportunities.

The committee’s membership includesnon-governmental entities representing avariety of interests, including communities,environmental conservation groups andinternational organizations. Governmentalrepresentation includes federal, state andcounty level agencies that deal withforestry and energy issues.

The advisory committee also continuesto work on implementing the NationalFire Plan and the 10 Year ComprehensiveStrategy for reducing wildland fire risks.Most significant this past year was the

completion of the Community Guide to Preparing and Implementing aCommunity Wildfire Protection Plan. Anewly created group called Partners inFire Education is working on developingeducational messages to help the publicunderstand the role of fire in a forestedecosystem. Additional information onthese efforts is available on the WGAWeb site.

This past year WGA joined the PartnerCaucus on Fire Suppression FundingSolutions, a coalition of 64 organizations.The group is working to address the issue of increased costs for wildfire suppression, which is hampering theability of land management agencies to fund other programs. This trend inincreasingly higher costs to suppress fires is expected to only get worse due to hazardous fuels build-up, changes inclimate conditions, and increasingly populated wildland-urban interfaceareas. Without a resolution to the problem,suppression costs will continue to consume a larger percentage of agencybudgets, while reducing or eliminatingfunding for fire prevention and hazardousfuels reduction projects.

Leads for this issue are GovernorsHuntsman and Kulongoski. Financialsupport is provided by the U.S. Departmentof Agriculture, U.S. Forest Service andU.S. Department of Interior.

Western Governors’ WildlifeCouncil

WGA has begun implementing recommendations included in the WildlifeCorridors Initiative report, adopted by the Governors at the June 2008 AnnualMeeting. The Western Governors’Wildlife Council was formed to coordi-nate and oversee the identification of keywildlife corridors and crucial wildlifehabitats so the vast number of speciesthat depend on them can be conservedfor future generations. Governors from15 states have appointed representativesto serve on the council, which held itsfirst meeting in December.

If not reforested, burned areas are oftenreplaced by brush and invasive species.

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Related Resolutionson Lands■ Protecting Wildlife

Migration Corridors andCrucial Wildlife Habitatin the West

■ Sage Grouse andSagebrushConservation

■ Reauthorization andAmendment of theEndangered Species Actof 1973

■ Restoration Economy

■ Restoring andMaintaining aSustainable RoadSystem on Federal Lands

■ Open Spaces

■ Achieving SustainableForests

■ Improving Forest andRangeland EcosystemHealth in the West

■ Farm Bill Reauthorizationand Western Agriculture

■ Western ConservationCorps

In order to identify corridors and crucial habitats, the council is working to coordinate state efforts to establishdata-driven, decision support systems.There is great opportunity for states toimprove their data quality, mapping,decision-making capabilities and cross-boundary coordination on wildlife issues.As the council moves to identify criteriafor a coordinated set of systems, it willwork with Congress, federal agencies,tribes, local governments, the conservationcommunity and industry. These systems

are a critical component inhelping states better plan forand mitigate the impacts ofdevelopment and climatechange on wildlife.

Using the WesternRenewable Energy Zones initiative as a pilot, 11 council members from the statesengaged in the WREZ process,developing a specific data

request to solicit and map crucial habitatand wildlife corridors within each state.Hundreds of datasets were collected,reviewed and mapped. The data was categorized based on the level of wildlifesensitivity to potential renewable energydevelopment, and that information isbeing used to assess and identify areasbest suited for resource development andthe transmission that will be needed tobring it to market.

This effort is significant as it marks thefirst time state wildlife agencies haveproactively provided information on crucial habitats and wildlife corridors aspart of a regional planning process. Thecouncil is expected to continue providingdata during future phases of the WREZprocess that focus on transmission.

Governor Freudenthal is leading thisinitiative on behalf of WGA. Financialsupport is provided by the Doris DukeCharitable Foundation; National Fish andWildlife Foundation; Turner Foundation,Inc.; U.S. Department of Defense;Wilburforce Foundation; WildlifeConservation Society; and The Williamand Flora Hewlett Foundation.

Conservation of the Greater Sage-Grouse

Western Governors continue to monitorthe conservation status of the GreaterSage-Grouse following a decision by theU.S. Fish and Wildlife Service to add thegrouse to the Threatened and EndangeredSpecies list. The WGA SagebrushConservation Committee is consideringnext steps in the development of draftlegislation for Sage Grouse conservation.

Members of that committee are coor-dinating their efforts with those of theWestern Association of Fish and WildlifeAgencies. Together, they formed theNorth American Sagebrush EcosystemConservation Act Task Group, which istasked with developing draft legislationsimilar to the North American WetlandsConservation Act.

This task group also will coordinate its efforts with the Western Governors’Wildlife Council as it moves forward.

Governors Gibbons, Otter and Ritterserve as leads for this issue.

DevelopmentU.S./Mexico Border Security and Comprehensive ImmigrationReform

Shortly after taking office, PresidentObama announced his intention to pur-sue comprehensive immigration reform,which the Governors have advocated forthe past three years. They look forwardto working with the new Administrationand Congress to make the nation’s immi-gration policies work better for America.

The U.S.-Mexico border experiences

Related Resolutionson Development■ U.S-Mexico Border

Security and IllegalImmigration

■ Transportation in theWest: Ensuring Mobility,Connectivity,Accessibility, andReliability

■ Funding the NationalHighway System

■ Geospatial Data Is Partof the Nation's CriticalInfrastructure

■ Intercity Passenger RailDevelopment andAmtrak

■ Regional Air Service in the West

11

more legal and illegal crossings than anyother border in the world. In the past,more than a million people crossed theborder illegally each year, most of whomare of Mexican origin, with a growingpercentage coming from countries otherthan Mexico. Large segments of the border are either left unguarded or havebeen staffed with an insufficient numberof U.S. Border Patrol agents for many years.

As a result of the shared border andproximity to Mexico, unauthorizedmigration places a disproportionatefinancial burden on the Western states’environment, as well as their health care,education and criminal justice systems.Illegal immigration, however, is not solelya Western issue. It impacts the economyof the entire nation.

Drug and weapons smugglers crossour borders along with individualssearching for economic opportunity.Securing our southern border is essentialto protecting public safety and must gohand-in-hand with any effort to addressthe economic and humanitarian conse-quences associated with illegal immigration

The Governors support enactment of a long-term comprehensive nationalimmigration policy that will strengthensecurity along the southern border, create

a temporary guest worker program with-out amnesty to meet specific workforceneeds, and provide reimbursement forlocal and state governments now fillingthe enforcement void.

Governor Huntsman and formerGovernor Janet Napolitano lead thiseffort on behalf of WGA.

Transportation For Western states to be competitive

in the global economy, the region’s transportation systems must functionsmoothly to get their goods to market.The Governors have expressed concernabout the adequacy of the region’s transportation infrastructure, which iscompounded by the fact that our popula-tion is growing faster than any otherregion.

Until the recenteconomic down-turn, an everincreasing amountof goods werebeing importedand exportedthrough West Coastports and acrossthe borders withCanada andMexico. That surgeis expected toresume as theeconomy improves.

To better prepare the region for thefreight traffic carried by trains and trucksthroughout the West, the WesternGovernors’ Association and the WesternAssociation of State Highway andTransportation Officials convened afreight roundtable in April 2009. A small group of invited representatives ofports, railroads, trucking firms and statehighway departments discussed ways to improve freight movement. Key recommendations include linking andintegrating state policies on transportationand climate change, working towardrationalizing regional standards on trucking, and deploying new technologiesto aide routing of trucks and trains.

Leads for this initiative are GovernorsFreudenthal, Gregoire, Huntsman,Richardson, Rounds and Schweitzer.Support for this program is provided bythe Federal Highways Administration,U.S. Department of Transportation andWestern Association of State Highwayand Transportation Officials.

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FY 2008 Functional Expenses

FY 2008 Revenue

FinancesWGA’s income is derived from dues from member

states, grants and contracts, contributions, interest and other miscellaneous income. Member dues for the fiscalyear 2008 were $36,000 per state and $6,000 per territory/commonwealth.

During the fiscal year ended June 30, 2008 WGA’sIncome totaled $7,038,044. Approximately 60% of thisamount was received from federal agencies for variousprojects.

Statement of Activities for the Year Ended June 30, 2008

Membership Dues $ 612,000Federal Contracts 4,123,084Grants 840,764Meetings and Conferences 1,369,081Interest Income 93,115

TOTAL $ 7,038,044

Functional Expenses

Energy Policy $ 1,234,639Environmental & Natural Resources 3,663,215Public Lands 390,455Regional Development 74,980Washington D.C. Operations 402,972Administration & Development 893,884

TOTAL $ 6,660,145

Excerpted from the audit report of JDS Professional Group,Certified Public Accountants, Consultants and Advisors.

Environmental & Natural Resources55%

Federal Contracts58.6%

Administration &Development13.4%

Interest1.3%

EnergyPolicy18.5

MembershipDues8.7%

PublicLand5.9%

Grants11.9%

Washington D.C.Operation

6.1%

Meetings &Conferences

19.5%

RegionalDevelopment

1.1%

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WGA Staff Council 2008 - 2009

The WGA Staff Council comprises the chief of staff or top policy adviser for each Governorand meets between the Governors’ annual andwinter meetings to review and guide WGA activities. The council reviews proposed workplans, budgets, and policy resolutions; works outinterstate differences on regional issues; and provides guidance to WGA staff. Council recommendations are conveyed to the individualGovernors, as well, to keep members abreast ofWGA activities. Representing each Governor’soffice are:

Western Governors’Association StaffPam O. Inmann, Executive Director

Shanna Brown, Deputy Director, Washington, D.C. Office

Patrick Cummins, Program Director - Western RegionalAir Partnership, Air Quality Initiative

Linda Davis, Financial Manager

Karen Deike, Communications Director

Lee Gribovicz, Project Manager - Air Quality

Rich Halvey, Program Director - Energy

Thomas M. Iseman, Program Director - Water Issues,Drought, Wildlife Corridors

Deborah Kinsley, Administrative Assistant

Margo Ling, Accounting and Administration

Toni McCammon, Office Manager/Executive Assistant

Christopher McKinnon, Program Director - Information Technology, Education, Health Care,International Affairs and Transportation

Doug Miyamoto, Natural Resources Consultant, Loaned Executive USDA-NRCS - Sage Grouse, Sagebrush Conservation Council

Tom Moore, Program Manager - Air Quality

Alex Schroeder, Program Director - Radioactive Waste Transportation and Transportation Fuels

Ann Walker, Program Director - Forest Health, Biomass,Invasive Species

Madeleine West, Program Associate - Energy, Wildlife Corridors

ALASKAJoe Balash

AMERICAN SAMOAMr. Motu La’au Seui, Jr.

ARIZONAKevin Tyne

CALIFORNIADarren Bouton

COLORADOKen Weil

GUAMGeorge Bamba

HAWAIILinda Smith

IDAHOJason Kreizenbeck

KANSASSusan Allen

MONTANAMike Volesky, SAC Vice Chair

NEBRASKALauren L. Hill

NEVADARyan McGinness

NEW MEXICOSarah Cottrell

NORTH DAKOTALance Gaebe

N. MARIANA ISLANDSCharles P. Reyes, Jr.

OKLAHOMARobert Wegener

OREGONMichael Carrier

SOUTH DAKOTAKevin Forsch

TEXASAuburn Mitchell

UTAHDianne R. Nielson,

SAC ChairRobert Spendlove

WASHINGTONRobin Arnold-Williams

WYOMINGSteve Ellenbecker

Western Governors’ Association • 1600 Broadway • Suite 1700 • Denver, Colorado 80202

(303) 623-9378 • www.westgov.org