1. Intersection of Federal and State Laws on Marijuana Presented by: Chris Gunn Bonneville Power Administration October 29, 2015

2. State Law Washington –In 2012, Washington State legalized the controlled production, distribution, sales, and consumption of marijuana Oregon –In 1998, Oregon legalized the production and use of marijuana for medical purposes –In 2014, Oregon (as well as Alaska and Washington DC) also legalized the controlled production, distribution, sales, and consumption of marijuana for personal use

3. Federal Law Controlled Substance Act of 1970 Prohibits cultivation of marijuana – 21 U.S.C. §§ 802(16), 812 Schedule I(c)(10).

4. Department of Justice “Cole Memorandum” Still unlawful, subject to prosecution Lists 8 priorities for prosecution Beyond that, relies on state to establish strict regulatory schemes and enforce Retains the right to pursue individual prosecutions and to challenge the regulatory scheme itself

5. Department of Interior Reclamation Manual – PolicyPolicy Temporary release, expired 5/16/2015 then extended to 05/16/2016 –Will act consistent with CSA –BOR will not approve use of BOR facilities or water in the cultivation of marijuana –When employee “becomes aware” of any such use, it will be reported to management and DOJ –Will keep records of all activities and communications –No responsibility to enforce CSA Does not apply to commingled water

6. Department of Energy Two Power Marketing Administrations affected –Bonneville service in Pacific Northwest –Western Area Power Administration in Colorado National approach needed Unlike water in BOR’s policy, energy and the transmission system may not be commingled We will know the load, if load growth or transmission interconnection

7. Guidance Bonneville’s sales are as wholesale provider of energy and transmission service – governed by federal law – are not purposely provided to commit a federal offense No responsibility or authority to enforce the CSA, but have a reporting duty if the activity observed is not already publicly known in that state Bonneville will not enter into direct contractual relationships, including financial assistance programs, with end-user customers that will use federal resources to violate federal law.