1. The Oregon Opportunity Transforming the Green Reputation Into the Green Economy 7/10/08 FRB SF Meeting

2. The Region’s Opportunity & Challenge A long history of a “green culture” The “Accidental” growth of an industry The “market” is ready The challenge: Creating catalytic growth from the reputation and depth of “green” assets Overcoming our region’s self imposed barriers

3. Recognized as a Leader in Green & Sustainability Most Sustainable CitySustainLane12008 Best Cities in the US for design Architectural firm RMJM Hillier52008 Worlds Most Livable CitiesMonocle252008 Top 25 Green Cities in AmericaCountry Home22008 America's 10 Cleanest CitiesForbes.com52008 Environmental AwarenessTravel and Leisure12007 10 Greenest Cities in AmericaMSN.com22007 Best City for Biking to WorkUS Census Bureau12007 Most Sustainable CitySustainLane12006

4. On Multiple Dimensions SustainLane ranked the largest 50 US cities by sustainability factors.

5. Surprising Depth in Renewable Energy Wind –PPM (#1 wind developer, globally), Horizon (#3 wind developer, US), Vestas (#1 turbine, globally) Solar: –Solar World, Solaicx, Peak Sun, XSunX, REC Wave: –Ocean Power Technologies, Finavera, SAIC, OWET Utilities: –Innovators in consumer efficiency, pricing, & renewable energy National lab: PNNL Confidential 5 Arizona losing fight for solar, 9 firms have spurned state in the past year Ryan Randazzo The Arizona Republic Jun. 21, 2008 12:00 AM Arizona is getting its "clock cleaned" in the competition among Western states to land solar-panel manufacturing companies within their borders, according to the economic-development group that is losing the fight. At least nine companies that make solar equipment have passed up the Valley of the Sun in the last year in favor of neighboring states, according to the Greater Phoenix Economic Council. From those nine projects alone, Arizona is missing out on more than 3,800 jobs, $2.3 billion in investment and $732 million in state and local revenues during the next decade, GPEC President and CEO Barry Broome said. Adding insult to the solar losses - four of the projects went to notoriously rainy Oregon. "That's an eye-opener," Broome said this week as he endorsed a state tax-incentive package to help bring solar manufacturers to Arizona. "Some people would argue that Oregon is not that business friendly."

6. Depth of Eco-System in Green Building & The “Built Environment” Natural Resources Materials Systems New Building Processes Integrated & Distributed Systems Energy systems HVAC system Waste Water Transportation Carbon reduction “hard-scape”“soft-scape” Community & Diversity Live-ability Scale Sustainability & efficiency Next gen mobility Design &

7. Depth of Sustainability Across Multiple Sectors Sustainable agriculture and natural resources businesses Sustainability/lifestyle targeted businesses CSR leadership: Intel & Nike Thought-leading NGOs: environmental policies, climate, & carbon Supportive demographics (urban and rural) Supportive businesses leadership –Oregon Business Summit and strategy focuses on sustainability –Major industry associations adopting strategy –Oregon Innovation Council Government & public policy –Land use & urban planning –Energy use: Renewable fuels standards, renewable portfolio standards, incentives, PUC rate decoupling, BETC –WCI Confidential 7

8. Oregon’s Challenge…Ourselves Michael Porter message @ the 2005 Oregon Business Summit –It’s the sustainability thing… –You have 10 number 1 priorities –The Oregon “way” is to break things up into lots of efforts and 3 letter acronyms A tendency to think small Regional & global competitors: –As a little guy (small state), you can’t win by playing the big guy’s game –Niche and focus Until recently, very little attention from elected officials Today: Everyone’s talking…but where are we going? Will we be a mile-marker on the roadmap to sustainability?

9. Developing a Regional Strategy …an Experiment in Progress Proactive Top down & Bottom up Set and deliver a big audacious defining goal to bring it together Targeted Economic Development & Recruiting Courageous Public Policy Available Investment Capital Creating Top Tier Univ R&D Aligning Higher Ed to Workforce Focused Cluster Initiatives Green building Sustainable foods Renewable energy & efficiencies Clothing & Apparel Land use V 2.0 RPS and BETC WCI Oregon Business Plan Key infrastructure & transportation Signature Research Centers (SRC) Developing human capital Linking the Assets & Marketing Them Building Global Alliances