Basin business may 2016

May 2016

Basin Business

Thursday, May 26, 2016, Herald and News

KLAMATH BASIN

Business

‘Meet me in Klamath’ More money for tourism on the horizon

Culinary winners

— Page 5

Taste of Klamath

Chamber tees up on annual golf outing — Page 5

Progress seen on economic fronts — Page 4

KCC given $100k for Work Skills Center

The crowd turned out to sample the Klamath Basin’s best foods, drinks and desserts during the 14th annual Taste of Klamath held last week. Winners are highlighted on Page 2.

— Page 6

A publication of the Herald & News Chamber: www.klamath.org

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Thursday, May 26, 2016, Herald and News

Basin Business

Taste of Klamath

Tastebuds teased at annual food, drink showcase The 14th Annual Taste of Klamath gourmet food and drink event was a rousing success at the Ross Ragland Theater Saturday night, May 14.

There were 19 vendors in the food and drink competition. Winners were judged by a pair of chefs from the Medford area.

The crowds lined up for fare on the theatre stage, in the lobby and in the theater’s community center as folks sample the goods and networked.

Here are the winners: Best Bite: Tri-Tip by Bill Gallagher’s BBQ Best Buzz: Mama’s Mojitos by Gino’s Café & Sports Bar Best Dessert: Pecan Squares

by Klamath Basin Brewery and Pub Best Blue Zones Inspired Dish: Black Bean Brownies by Biagio’s Bar & Grille Best Booth: Klamath Basin Brewery and Pub The first four categories were decided by professional chefs and juried culinary judges from the Rogue Valley.

The Best Booth is voted on by participants of the event.

The event generates money for low-income tickets and educational programs put on by the theater, which reaches 12,000 students each year in the Basin.

The crew from Klamath Basin Brewery and Pub walked away with the People’s Choice for Best Booth and best dessert; pecan squares.

Thursday, May 26, 2016, Herald and News

Tashia Owen at Tashi Soap Co. is a small business owner; she said, “It’s wonderful to hear from successful, well-known leaders on how to become more effective roll models and to use our leadership skills to build our businesses and make our community a better place to live and work. I always take away many useful strategies and tips.

We’re proud to sponsor such a wonderful event and thrilled to see so many members of the community join together to learn and grow.”

Janet Buckalew at Pacific Crest Federal Credit Union explained how Leadercast helps her and her staff move forward in the new millennium.

“I always enjoy Leadercast and this year is no different. The event was inspiring and I come back energized to help my staff succeed. I love Andy Stanley’s quote, ‘We value integrity, but we follow clarity. Clarity results in influence, which is the essence of leadership.’ It has changed my work priorities to make sure that I am providing clarity whenever I interact with my staff,” Buckalew said.

Anne Hiller Clark, Junior Achievement district manager and Klamath Promise coordinator, had this to say about this year’s Leadercast event: “Leadercast gave me practical tips, tools and techniques that I can use immediately and continue to use in the future. For example, the first speaker

gave the best explanation of how to conceptualize and document an organization’s vision that I’ve ever seen (and I’ve been involved in these types of activities for many years.)

Thanks to the support of Holliday Jewelers, the Klamath Promise’s display gave us the opportunity to tell many people about our organization.

We appreciated participants’ feedback on their concerns about education. We also received commitments from local organizations to cheer our county’s high school graduates at the Graduation Sensation parade and party on the afternoon of June 2.

The Klamath County Chamber of Commerce hosted the Klamath Falls event at Klamath Community College. With the support of our members and sponsors, this year’s event was successful.

Thank you to Pacific Crest Federal Credit Union; Basin Tire Service; Cal-Ore; Brian Gailey Photography; Barrett Business Services, Inc. (BBSI); Ag-Sense; Amcom Tax and Accounting; Fisher Nicholson; Holliday Jewelry; Klamath Promise; KCC Small Business Development Center; Periwinkle Resale; Take Shape for Life; Tashi Soap Company; and Pacific Power for sponsoring the event.

Leadercast 2016 inspires, gives good advice Every year in Atlanta, Ga., the Leadercast Event is held live and broadcast to more than 800 locations around the country.

Focusing on leadership development, the event is hosted in Klamath Falls by the Klamath County Chamber of Commerce. The list of speakers for this year’s Leadercast event included: Steve Wozniak, co-founder of Apple; Rorke Denver, a NAVY Seal commander and author; Chris Bar z-Brown, author and creativity guru; James Brown, network broadcaster for CBS Sports and News; Dr. Henry Cloud, leadership expert, psychologist, and best-selling author; Kat Cole, group president of Focus Brands; and Andy Stanley, leadership author and communicator, with host Tripp Crosby.

The theme of this year’s Leadercast event was “Architects of Tomorrow”, and attendees were primarily business owners and their employees.

However, 10 Henley High School students from the FFA program were in attendance, sponsored

by Pacific Crest Federal Credit Union. Also attending this year’s Leadercast 2016 even were “The Klamath Coyotes”, a local FIRST FRC Robotics team, a program which encourages STEM (Science, Technology, Engineering, and Math) interests in students.

Business members of the community had positive responses to the event.

Best Blue Zones Inspired dish went to Biagio’s From the organizers: Bar and Grille The Klamath Falls Farmers Marfor its black ket has done a bit of “growing” over bean brownines. the last six years, and we’d like to

Farmers Market opens June 4

Theater Director Mark McCrary presents the Best Bite award to Bill Gallagher’s BBQ, cooked outside the theater to entice foodies.

Gino’s Cafe & Sports Bar was awarded the Best Buzz for its Mama’s Mojitos.

thank everyone who have supported and believed in our mission, which is first, to provide a venue and support for local small agriculture and a source for super-fresh produce to the public.

Second, we continue to strive to invigorate our downtown community and offer visitors to the area an experience that reflects the greater Klamath basin “Flavor”, not only with great produce and prepared food, but also local artisans and craftsmen/women and their creations.

This season we’ll have more than a dozen local area producers with a great variety and quality of veggies, fruit and herbs, local grass-fed beef, honey and eggs and canned-pickled foods. Over the years, the increase of foot traffic/customers has provided our farmers the incentive to expand what they have to offer…the variety through the season is impressive

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Basin Business

and continues to grow. Our artisans provide a great mix of local arts and crafts from woodworking, textiles, jewelry, pottery, massage therapy to local authors…wonderfully creative local talent on display.

Our Children’s Program director Susan Smith has a creatively cool lineup of craft projects for kids of all ages through the season, always free, educational and very fun every week.

Local musicians have always been a staple at the market and we have a great bunch scheduled through the year to make you tap your foot or maybe do a jig.

We’ve added seating, shade and tables to our venue, and continue to make the Market a more welcoming place to stay and visit for longer, like grabbing a bite to eat at one of our ready-to-eat food vendors or local food carts.

For details: Klamath Falls Farmers’ Market (541) 273-1102 Email charlie@klamathfallsfarmersmarket.org Website www.klamathfallsfarmersmarket.org

Contact the Chamber Klamath County Chamber of Commerce

205 Riverside Drive, Suite A Klamath Falls, OR 97603 Office: 541-884-5193 Fax: 541-884-5195 Charles “Chip” Massie Executive Director cmassie@klamath.org

Mark Fay, M.D. Scott Stevens, M.D. Physician/ Surgeon of the Eye Physician/ Surgeon of the Eye

Heather Tramp: Marketing and Program Coordinator Email: heathert@klamath.org www.klamath.org www.facebook.com/Klamath Chamber twitter.com/AccessKlamath

Edwin Tuhy, O.D. Optometrist

Jennifer Sparks, O.D. Optometrist

New Patients Welcome

2640 Biehn St. • 541.884.3148 • www.klamatheyecenter.com

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Thursday, May 26, 2016, Herald and News

Basin Business

Basin Business

Thursday, May 26, 2016, Herald and News

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Victories and progress in Klamath County State approves more money for tourism

By GREG O’SULLIVAN KCEDA Executive Director

One of the most exciting things to happen in Klamath County in a long time is the restoration of Transportation Security Administration (TSA) service to the Crater Lake-Klamath Regional Airport. Now that TSA service is back, Klamath can once again be a convenient destination for air travelers – and the value that gives us as a business community should not be underestimated.

Were it not for TSA service being restored, attendance at the Sitelink Forum conference in Klamath Falls this month could have been severely compromised. Thanks to the hard work of my team at KCEDA, our dedicated municipal leaders, and the elected officials who represent us well (Senator Jeffrey Merkley, Congressman Ron Wyden and Congressman Greg Walden), Klamath Falls is again a viable aviation destination. This will not go unnoticed by the out-of-towners who

Tax burden index

are attending this month’s conference.

Speaking of that, I want to share a little bit about why the Sitelink Forum conference is an important event for Klamath County.

Sitelink Forum is a regional conference that takes place in strategically chosen areas throughout the nation, and the fact that Klamath County O’Sullivan was chosen to be the location of its spring conference really speaks to the vitality of southern Oregon’s business climate. It also speaks volumes about Klamath County’s initiative to be in the game when it comes to aggressive business recruitment.

If you care about the economic health of our area, you’ll be glad to know that KCEDA is working hard to position our community as a place where business can thrive; working closely with

the economic development experts at Sitelink Forum is one way we have done that. When site selectors from throughout the western United States arrive in Klamath Falls this week for the conference, they will see a community where binary employers can establish roots and expand. This is truly an event that will benefit Klamath Falls, Klamath County and (we believe) the entire state of Oregon.

There will be site selectors from California, Nevada, Washington, North Dakota and other states here, and we are excited to show them what Klamath County has to offer businesses. Many thanks to the good people of Running Y Ranch for hosting us; we know these out-of-state attendees will quickly realize that the resort is just one of the many gems of Klamath County.

Greg O’Sullivan is executive director of the Klamath County Economic Development Association (KCEDA). For information, visit ChooseKlamath.com.

Chamber member anniversaries

SmartAsset, a New York financial technology company, recently released Advanced Chiropractic American Sanitation, Inc. their second annual study on the places in America with the lowest tax burBureau Of Land Management dens. Klamath County made the list for Oregon at Number 4, up from their BRD Printing rank of 7 in last year’s study. The study analyzes what a person making the Buckley’s Inspection Services U.S. median income pays in income, sales. property, and fuel tax in counties Charter Business & Comnica across the country. cations Chick ‘N’ Dish For a look at how Klamath County performs among the leaders in Oregon, Citizens for Safe Schools check out the table below: Clough Oil Co. Rank County Income Tax Property Tax Fuel Tax Tax Burden Index Coffig for Life LLC 1 Wheeler, OR $11,517 $1,146 $373 65.70 D & R Auto & Industrial 2 Lake, OR $11,517 $1,224 $390 64.98 Diamond Lake Resort 3 Harney, OR $11,517 $1,231 $394 64.90 EagleRidge High School F & D Carpets 4 Klamath, OR $11,517 $1,196 $443 64.79 Family Farm Alliance 5 Gilliam, OR $11,517 $1,189 $464 64.69 Fisher Nicholson Realty — 6 Malheur, OR $11,517 $1,288 $393 64.48 Diana Kellstrom 7 Curry, OR $11,517 $1,367 $352 64.19 Fred Meyer 8 Grant, OR $11,517 $1,355 $366 64.18 Gene Thomas Ins. Agency 9 Sherman, OR $11,517 $1,290 $433 64.16 Hertz Rent A Car Klamath Cattlemen’s Assn 10 Josephine, OR $11,517 $1,362 $391 63.94 Klamath Falls Gospel Mission Klamath Lake Land Trust Full study results, methodology, and map can be found here: https://smartKlamath Public Employees asset.com/taxes/oregon-tax-calculator?year=2016#map F.C.U. Klamath View Retirement

Meet me in Klamath is the new slogan for Discover Klamath this tourism season. See details at meetmeinklamath.com

Center Klamath Water Users Assoc.

Klamath/Lake Counties Food Increased tax will Bank aid programs in Lake Park Towers- Robert Klamath County Bogatay Maverick Motel

By JIM CHADDERDON Murphy’s Market Discover Klamath Executive Director New Earth Pacific Crest Federal Credit The most recent legislative session ended March 3. Many new bills were Union submitted and several received subPacificSource Health Plans stantial media coverage, including a bill adjusting minimum wage.

Panaderia Azteca One bill you may not have Precision Structural heard about was HB 4146C, which Engineering increased the State Transient Lodging Tax (TRT) Rate.

Production Metal Forming The measure, which was signed RHT Energy Solutions into law by Governor Brown April 4, Ross Ragland Theater increases the statewide Transient Running Y Ranch Lodging Tax from 1.0 percent to 1.8 percent after July 1, 2016, and Sharleen Hutchison then reduces the tax to 1.5 percent Insurance Agency Inc after July 1, 2020.

The 80 percent tax increase will Shasta View Retirement raise approximately $27.4 million SmithBates Marcomm in tax revenue. The bill requires the Solutions Oregon Tourism Commission, dba Travel Southern Oregon ESD Oregon, to spend 20 percent of the US Cellular — Washburn Way tax revenue to implement a new

Regional Cooperative Tourism Program (RCTP) and another 10 percent be used for a competitive grant program that includes tourism-related facilities or tourism-generating events.

The RCTP program will favorably affect southern Oregon as Travel Southern Oregon (TSO) – a seven -county marketing cooperative which includes Klamath County – will realize and manage incremental revenue windfalls Chadderdon of approximately $500K annually.

These new dollars will be managed

by TSO’s board of directors, of which Klamath County Tourism officials are included.

The original proposal was to increase the tax 100 percent from 1 percent to 2 percent. The decrease to 1.8 percent, along with the mandate that the state allocate 20 percent of the money to regional tourism programs and 10 percent to competitive grant programs, was made by the Legislature in response to strong criticism from (mostly rural) tourism officials, as well as some lodging owners, who did not believe their areas would benefit from the increased tax revenues.

HB 4146C allows Travel Oregon to spend money on “tourism programs” which would include subsidizing costs of events, such as the 2021 World Track and Field Championships in Eugene. Track Town USA was a major sponsor of the bill as it hopes to receive a significant amount over the next five years to help cover event costs in 2021.

HB 4146C also includes a requirement that a work group lead by the Legislative Revenue Office study polices related to distribution of revenues for the regional cooperative tourism program. Issues to be reviewed include: establishment of regional tourism boundaries, and, distribution of state tax revenues within each region.

Chamber tees up time for annual golf tourney The Klamath County Chamber of Commerce will host its annual Swing into Summer Golf tournament on Friday, June 24.

The event will be held at Reames Golf Course in Klamath Falls.

The format is an 18-hole scramble and the Chamber is currently accepting registrations for four-person teams as well as individuals.

The registration includes golf, cart, range balls, dinner, and plenty of snacks and beverages.

The dinner/reception will include a pool party and barbecue.

“There’s no better way to connect with your co-workers, other business leaders, and potential customers than on a golf course,” said Charles Massie, executive director.

Massie says the event is a great opportunity to treat staff to a day on the course, say thank you to important clients, and build relationships with potential customers.

Registration is now open for teams

and individuals.

The Chamber also has many sponsorship opportunities available to promote business including: • Tee sponsors • Green sponsors • Corporate sponsors • Hospitality sponsor • Contest sponsors Sponsors so far include: Debra Gisriel - Fisher Nicholson Lithia Season’s Change Energy Solutions Henris Roofing MBellish Bell Hardware Ameri-title Elwood Staffing Collegiate Art Designs US Cellular Gold Dust AAA Property Management Sky Lakes Medical Center Any business interested in sponsorship is encouraged to call the Chamber’s marketing coordinator, Heather Tramp, at (541) 884-5193.

Registration is available online at www.klamath.org or by calling the Chamber at 541-884-5193.

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Thursday, May 26, 2016, Herald and News

Basin Business

Running Y Ranch marks 20 years The Running Y Resort and Ranch will mark it’s 20th anniversary Saturday, May 28, from 2 p.m. to 4 p.m.

The event will be held at the Ranch’s event tent.

The resort will honor the past, and welcome the present as it marks its second decade, a press release said.

Running Y Ranch Resort was originally established by Jeld-Wed founder Dick Wendt.

After purchasing the Running Y Ranch

in 1994 and entitling a new destination resort in 1995, construction began in the spring of 1996.

The lodge and Arnold Palmer golf course were completed in 1998.

The event will be marked with a time capsule and private, invitation only event in the new Running Y Ranch Resort Event Tent.

The event will honor our founder Dick Wendt, and welcome the next 20 years.

KCC given $100K for Work Skills center Klamath Community College has been awarded a $100,000 Special Opportunities Grant from The Oregon Community Foundation (OCF) to support development of an innovative Work Skills Technology Center.

That grant and several others made to Klamath County organizations will be presented on Monday, June 6, 4 p.m., in Building 6, Room H138 on the KCC Campus, 7390 South 6th St., Klamath Falls. OCF Southern Oregon Leadership Council members Kate Marquez and Cec Amuchastegui will present checks to these groups: n Citizens for Safe Schools $25,000; n Favell Museum $8,623; n Klamath Outdoor Science School $29,500 n Klamath Tribal Health & Family Services $25,000; n The Ross Ragland Theater and Cultural Center $27,300; n Klamath Gospel Mission (from an anonymous advised fund) $10,000; n Friends of the Children (from the Olsrud Family advised fund) $5,000; In addition, OCF is making a $6,000 award to the Klamath Community College Foundation for year two of three years’ potential support

for the Betty Gray Community College Scholarship. It helps students pursuing community college degrees or certificates in early childhood education through awards at nearly all community colleges in Oregon.

Camp Low Echo, a former Girl Scout Camp on the southeast shore of Lake of the Woods, also received a $150,000 Special Opportunities Grant. It will be redeveloped as an outdoor recreation site for people of all ages.

OCF stewards more than 2,000 charitable funds created by generous Oregonians to support the causes they care about. More than $560,000 in Community Grants were made to Southern Oregon organizations this month. Statewide, more than $103 million in grants to nonprofits and scholarships were awarded in 2015 alone.

Background on Work Skills Technology Center Klamath Community College enrollment is just shy of 5,000 (2,000 on campus), up 11 percent in 2016.

And the college is quickly becoming the workforce training hub for Central and Southeast Oregon.

The 21,750-square-foot Work Skills Technology Center will house strong educational programs in computer science, digital media, health information management and other fields – plus provide space for local

agencies and industry partners for satellite offices on campus. Target groundbreaking for the $7.8 million facility is August and it will serve an additional 500 students per year.

The new space will allow an increase in the number of career technical education programs from 15 to 20, nearly double classrooms from 14 to 26, and grow computer labs from 7 to 11. Community support for this project is well documented. Several local partners which have been on board from the beginning will have dedicated space in the new building. They include WorkSource Oregon, the Small Business Development Center, Klamath Falls City School District and the Klamath County School District.

Area business leaders have expressed difficulty filling jobs with local applicants. Their chief complaint is the lack of computer and technical skills training which is limiting the region’s ability to attract new businesses and threatens to impact growth among existing companies.

In the new Center, the College will be able to unify workforce training programs; increase capacity for a growing student population; expand partnerships with schools, businesses and workforce agencies; and facilitate connections students need to local employers for internships and jobs.

Basin Business

Business Profile Leadership Klamath set to kick off new year

Thursday, May 26, 2016, Herald and News

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Advice to help Mom prepare for retirement

The Klamath County Chamber of Commerce is now accepting applicaMother’s Day in May is a good tions for Leadership Klamath 2016and traditional IRA once she turns reminder for those working moms 2017.

70½. But if she withdraws too much and those about to retire what strateach year from these accounts, she Developed by the Chamber to egies they can use to improve their could deplete them sooner in her meet leadership needs in the commufinancial standing. retirement years than is desirable. nity, the program provides a compreTo develop a solid retirement income hensive and objective awareness of Here are a few suggestions: strategy – one that can help her the Klamath community and public n Contribute to her IRA. As long avoid outliving her income – she service. as your mother is employed, she can will need to coordinate withdrawals The program takes place over contribute to an IRA, and she may from her retirement accounts with the course of a 10-month period, in already have one. If so, help her her Social Security payments and one-day sessions. Each meeting will fund it for 2016. You can’t contribany other sources of income she may address a specific topic or industry; ute directly to her IRA, but you can have available. Because it’s so importhese may include tourism, emergencertainly write her a check for that tant to put together an appropriate cy services, education, legal systems, purpose, and by doing so, you can income strategy, it’s a very good idea and areas of economic development. make it easier for Mom to “max out” Submitted photo to consult with a financial profeson her account this year. Assuming The program seeks to foster comPeriwinkle Resale and Consignment on Main Street offers all sorts sional. If your mother does not curyour mother is over 50, she can conmitment to the region by developing of formal wear for men and women. tribute up to $6,500 per year to her rently work with one, encourage her leaders who can meet the demands of IRA. As you may know, an IRA can to meet with someone you know and the future of the community. In all, be a great way to save for retirement trust. more than 325 people have gradubecause it offers significant tax benated from the program.

Of course, your mother may be efits. Contributions to a traditional married and have her finances comDarin Rutledge, a member of the IRA are typically tax-deductible, mingled with those of her spouse.

2014-2015 graduating class, says, “I while any earnings can grow tax Nonetheless, every one of the suggesregistered for Leadership Klamath deferred. Roth IRA contributions are tions mentioned above is applicable to learn more about the local econonot deductible, but any earnings can my and everything tied together to and relevant to your mother, whether Periwinkle Resale and Consignment process is simple: just take in grow tax free, provided the account make the Klamath Basin run. What she is singled, married, divorced or owner meets certain conditions. any high-end or designer clothes or I got was much more: friends, busi- ment Boutique was opened in 2007 widowed. Women must be prepared décor (no appointment needed), Perin Give Mom some stocks. You ness networking, and new resources by long-time Klamath Falls resident to take full charge of their financial Linda Warner with the goal of makwinkle staff looks it over and puts it know your mother well, so you are that I have used personally and situations, no matter their marital ing designer and high-end clothing probably familiar with the products out on their floor, and consigners get through my business! Leadership status. she likes. By giving her shares of Klamath truly molds the future lead- available and affordable to women in 40% cash or 60% store credit of the Anything you give Mom will be town. In the near-decade following, stock of the companies that produce final selling price. Because Periwiners of our community.” appreciated. But if you can add a gift the Periwinkle brand has gone from kle operates entirely on consignment, these goods, you will provide Mom Emerging leaders in the commu– whether in the form of investments a small owner operated consignment with a feeling of ownership that she they’re able to provide their consignnity will be motivated and energized or knowledge – that can help her shop to multiple store fronts with ers with an easy way to rehome their may enjoy – along with the benefit by the ten month course, where make progress toward an enjoyable several employees.

The clothing store of possessing investments that could they will be exposed to the realities, well-loved items and for customers retirement lifestyle, you will be promoved locations and expanded, with potentially increase in value. opportunities, and challenges within to get great prices on gently used viding her with an enormous “thank n Discuss retirement income the community. Participants will be sections for young adults and men clothes and décor. you” for all she’s done for you over being added, as well as a separate strategy. Even if your mother has encouraged to become more involved the years.

Located on Main Street in the storefront opening for gently used made some smart financial moves, in decision-making, attend semiheart of downtown Klamath Falls, home furniture and décor. such as investing in an IRA and her nars, tours, lectures, and briefings, Periwinkle and Periwinkle Home When Linda retired in OctoSubmitted by: 401(k) or other employer-sponsored and will learn more about Klamath have ample parking and convenient retirement plan, she may still need County’s political, social, and busi- ber 2015, the Periwinkle stores Meredith Hoffman hours of 10a to 6p, Tuesday through were purchases by five of the eight some advice on how best to initiness arenas.

Financial Advisor-Edward Jones Friday, and 10a to 4p, Saturday. For employees.

All of the Periwinkle staff ate and manage her retirement Anyone interested in learning 1307 S Alameda Ave, Suite B more information about Periwinkle’s income. To cite just one action she more about the program can contact is friendly and excited to providing a Klamath Falls, OR 97603 consignment process, visit perwinfun shopping experience in a stylish needs to take, she must start makthe Chamber at 541-884-5193. kleresale.com environment. Periwinkle’s consign541.273.2483 ing withdrawals from her 401(k) n Registrants who sign up before Aug. 15 will receive a $50 discount. n Registration deadline is Aug. 29.

Do you have some business news you want to relay? Contact the Klamath County n The first session will begin Sept.

15 and continues every third ThursChamber of Commerce at 541-884-5193 or the Herald and News at 541-8854437 day through June 2016.

For details call the Chamber at and get into the next, monthly edition of Basin Business.

(541) 884-5193 or visit klamath.org.

Periwinkle going strong in resale market

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Basin Business

Thursday, May 26, 2016, Herald and News

Paid Advertisement

May 2016 Newsletter for Oregon State Senator Doug Whitsett, District 28 Senator Doug Whitsett

R-Klamath Falls - District 28 I represent the citizens of Senate District 28, which includes Klamath, Lake and Crook, as well as parts of Jackson and Deschutes Counties.

As Senator of one of the largest Senate districts in the state, it is extremely important that my constituents remain in contact with me about the issues and concerns that affect their lives. You and I must work together to protect the common interests of rural Oregonians.

I encourage you to contact my office by either email or telephone so that I can know how to best serve you. I look forward to hearing from you soon.

Best Regards, Senator Doug Whitsett

Capitol Address: 900 Court St. NE, S-311 Salem, OR 97301 Capitol Phone: 503-986-1728 Newsletters: www.leg.state.or.us/whitsett Email Senator Doug Whitsett: sen.dougwhitsett@state.or.us

WIND AND SOLAR? IT’S TIME TO LOOK TO EXPANDING NATURAL GAS The Legislative Assembly frequently debates the proper role of Oregon government. Most lawmakers agree that providing the basic infrastructure that enables all citizens to have access to shared services such as roads, public schools and clean, potable water is a fundamental function of state government. Arguably, those services should include access to electric and natural gas utilities.

During the 2015 session, the Legislature passed Senate Bill 32 by wide bipartisan margins. The bill states the Oregon Legislative Assembly finds that access to natural gas is in the public interest and the extension of pipelines to rural areas is necessary for communities to preserve and develop local economies and enlarge their tax bases. In addition, I believe the expansion of natural gas infrastructure and services also represents the most cost effective means of energy conservation.

SB 32 required the Public Utility Commission (PUC) to form a work group to study feasible ways to expand natural gas infrastructure to areas that are not currently served by public utilities. I was among those selected to serve on the work group that has already convened for several meetings.

One of my primary interests is the tremendous potential benefits the town of Lakeview could reap from the development of natural gas infrastructure. The city of about 2,300 people is the county seat and largest town located in Oregon’s third largest county. Like many other small rural Oregon towns, Lakeview has yet to experience the elusive “economic recovery” that is occurring in some of the more urban parts of the state.

I believe developing a natural gas utility in Lakeview would help to provide the kind of economic revitalization that could help carry its economy far into the future. Both the availability of natural gas and the potential cost of the distribution system are within reach.

The Ruby Pipeline, a 680-mile system extending from Wyoming to Oregon, provides natural gas supplies from the major Rocky Mountain basins to consumers in California, Nevada and the Pacific Northwest.

The 42-inch pipeline passes about two miles south of Lakeview. It has an already installed terminal, as well as a lateral pipeline planned to be constructed to an industrial site near the south city limits.

Only an adequate source of funding is preventing the construction of a natural gas distribution system to Lakeview’s potential residential, commercial and industrial users. One of the partners in the Ruby pipeline, the state’s Oregon Solutions program, Avista Utilities, the Energy Trust of Oregon, and even the formation of a municipal gas district offer potential funding solutions.

The planned construction of the Pacific Connector pipeline from Malin to Jordan Cove could also result in Avista providing natural gas services to Merrill. The owners of the pipeline have reportedly agreed to provide access to the pipeline near the city, and Avista appears to be willing to install the distribution system.

There is precedence for the kind of infrastructure expansion that the

Legislative Assembly is attempting to achieve through the work group.

The Rural Electrification Act of 1936 was signed into law by President Franklin Roosevelt for the purpose of providing federal loans to help install electricity infrastructure in rural areas of the United States.

The Act resulted in the electrification of rural America by subsidizing the development of the needed utility infrastructure.

Likewise, the Communications Act of 1934 provided that all people in the United States shall have access to rapid, efficient, nationwide communications service with adequate facilities at reasonable charges.

It created the Universal Service Fund that operated as a mechanism by which interstate long distance carriers were assessed to subsidize telephone service to low-income households and high-cost areas. The Telecommunications Act of 1996 expanded the traditional definition of universal service to include affordable, nationwide telephone service to rural health care providers, eligible schools and libraries, as well as other services.

Oregon also assesses a Universal Service Surcharge that helps to provide basic telephone service in high-cost areas, a Residential Service Protection Fund charge that helps fund the telephone assistance and telecommunication device access programs, and an Emergency 911 Communications Tax that funds the state’s emergency reporting system.

Each of these assessments, charges and taxes are billed as line items on our monthly telephone bills.

Currently, investor owned electric utility customers in Oregon pay a “public purpose charge” (PCC) that is equal to three percent of their monthly utility bills. Investor owned natural gas utility customers pay a little less.

That surcharge, included as a line item on ratepayers’ monthly utility bills, collects more than $150 million per year from investor owned utility ratepayers. More than $21 million per year is collected from natural gas utility customers.

The PPC was established by Senate Bill 1149 and became effective March 1, 2002. Nearly three-fourths of the ratepayer money collected is designated to be spent for energy conservation in homes and businesses, the building of renewable resource power plants and other renewable resource projects.

In 2007, Senate Bill 838 amended the PPC law by giving utilities the ability to ask the PUC for permission to include in rates the costs of implementing or funding additional cost-effective energy conservation measures. The PUC requires the utilities to assess the achievable costeffective conservation potential in their service territories. Natural gas is certainly one of the most cost-effective sources of available energy.

By my calculations, during the past decade, as much as $200 million of the PPC proceeds have been spent largely on solar and wind energy projects. The return on investment has been extremely poor.

For instance, according to the Department of Energy, Oregon’s entire solar generation capacity currently amounts to only seventeen

one-hundredths of one percent of the State’s annual total electricity generation. Solar energy’s contribution to our state’s electric generation capacity is hardly measurable, despite the huge investment of PPC dollars on solar generation projects. Oregon could provide natural gas infrastructure to serve many rural communities for a fraction of what is being spent on these inefficient renewable systems.

The fact of the matter is, it is not wind and solar energy development that is reducing United States and global greenhouse gas (GHG) emissions. The United States has an abundance of natural gas resources. The market-driven development of those resources has both driven down the cost of natural gas to historic lows and caused our national GHG emissions to plummet to mid-1990s levels.

In a newsletter I released last August, I described how the Bend-La Pine School District has been able to convert 40 percent of its bus fleet from diesel to liquid natural gas. Aside from the immediate cost savings of the fuel itself, the school district has also been able to reduce its hydrocarbon emissions by 80 percent. The environmental benefits of this conversion are apparent.

Lakeview has the distinction of being in an air inversion zone, and one of five Oregon towns struggling to attain Environmental Protection Agency air quality attainment goals. Because of that, the town struggles with how to preserve its air quality without further damage to its industrial and economic base. As is the case in the other four towns, the wood stoves being used by many residents to heat their homes are often blamed for the air quality challenges.

The use of natural gas as an affordable home heating substitute could help solve this very difficult problem, as well as help spur the kind of private sector investment that any community needs in order to grow and thrive.

I will continue my efforts with members of the work group, as well as collaborating with the Governor’s office, other legislators, the utilities, the PUC and pipeline owners to try and develop solutions for funding these natural gas infrastructure investments. Your ideas and recommendations are actively solicited.

The work group’s next meeting is scheduled for June 16 in Salem.

Please remember—if we do not stand up for rural Oregon, no one will.

Best regards, Doug Follow the link below to subscribe to an electronic version of my weekly legislative newsletter updates: https://public.govdelivery.com/accounts/ ORLEG/subscriber/new?topic_id=ORLEG_30.