Maritime Blue Strategy

Click to edit Master title Item No. 3b attach        Meeting Date: July 23, 2019






Washington's Strategy for the Blue Economy | January 2019

IntroductionClick to edit Master title
Today, Washington State's maritime sector has emerged as a model
for environmental performance and best practices. If the goal is to inspire
increased motivation for innovative design, clean technology, and 21st century
workforce development, arguably few places in the world provide such an opportunity.
To build on the strengths and commitment of Washington's maritime sector, Governor Jay
Inslee assembled his Maritime Innovation Advisory Council on December 12, 2017. He called
upon the Council to develop a comprehensive plan for all stakeholders to accelerate and
support technology innovation and best practices throughout the state's maritime industry. The
Co-chairs and full Advisory Council have been responsible for stewarding the vision and setting
the course for Washington State to become home to a world-class, thriving, and sustainable
maritime industry by 2050.
The Washington Maritime Blue Strategy Initiative has been led by the Governor's
Maritime Sector Lead in the Washington State Department of Commerce. Global maritime
and energy experts at DNV GL facilitated the strategy development and
stakeholder engagement process. Funding for the Washington Maritime Blue initiative was
provided by the U.S. Department of Commerce Economic Development Administration, i6
Program.
The Blue Strategy has been developed through broad and inclusive stakeholder input
from representatives of industry, workforce, research, academia, government, tribes,
trade, labor, and environmental organizations and across maritime and related sectors such
as clean tech, information and communication technology, aerospace, financial, and more. The
Task Force, its Steering Committee, and the Pathway Workgroups have dedicated numerous
hours in collaborative meetings and providing content review and shaping.
This report, as well as the strategic vision and framework for Washington Maritime Blue would
not have been possible without the contributions of all stakeholders. The Strategy is a product
of what participants brought to the table and a direct outcome of the collaborative nature of the
discussions and innovative thinking that was brought to the process.
This report is for the public and has been written for non-technical readers as well as industry
experts.

Dec. 2017-         Apr. Dec                     Jan.-March            Apr. 2019 -
March            2018                        2019               Beyond
2018

Phases 2-4:
Phase 1: Project
Consultation and           Rollout           Implementation
Launch
Drafting
Public Kickoff             Stakeholder Survey               Final Strategy         Cluster Organization:
Task Force               Task Force & Advisory             Rollout Event             Implements Strategy
Meeting               Council Meetings              Cluster Launch        Executes Projects
Working Groups                                                Conducts Blue Forums
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Governor's Maritime
Innovation Advisory CouncilClick to edit Master title
"This Washington Maritime Blue: 2050 vision for accelerating innovation project will leverage
the strong connections created through our Sector Lead Program to develop a diverse
workforce, stronger businesses and new technology to meet the challenges ahead. Our goal is
to build a green, efficient and sustainable maritime sector that will serve as a model for the rest
of the country... I congratulate and thank everyone who has been part of the vision and
commitment to implementing Washington Maritime Blue. I am proud that Washington is among
those charting the course to ocean health and sustainable maritime practices. The transition is
happening now in our state." Washington State Governor Jay Inslee

"The Maritime Blue initiative is the first of its kind in the United States to ensure that
Washington's maritime and fishing economy thrives as population growth, climate change, and
global competitive pressures call for innovative workers and clean technology solutions. Today,
Washington's maritime industries are the backbone of the most trade-dependent economy in
the country. Tens of thousands of family-wage jobs in the maritime trades have transformed
communities throughout our region and state. Now, we must find paths to give future
generations of Washingtonians access to these jobs and opportunities. By developing a new
generation of an inclusive and diverse maritime workforce, our companies will lead the world in
creating hundreds of thousands of jobs in a clean-trade maritime economy that works for all of
us". Representative Gael Tarleton, Washington State Legislature

"I'm honored to have had the opportunity to co-chair Maritime Blue, which is aimed at a vision
for Washington State to be home to a world-class, thriving, and sustainable maritime industry
by 2050. To be successful, this strategy must be iterative, adapting as needed to achieve this
vision as we proceed. At Vigor we believe tomorrow's economic opportunities involve
sustainable solutions . Identifying courageous and committed long term investment will allow
the maritime industry to lead in a way that honors our precious environment, accelerates
innovation and creates great opportunities for skilled workers." Frank Foti, Vigor

"Creating a more efficient, more competitive, more collaborative and cleaner maritime industry
will mean green jobs, better air quality in our communities and a healthier climate. Becoming a
global center for innovation creates and preserves the family wage jobs that the maritime
industry has long provided in Washington. Congratulations to Governor Inslee for having the
foresight to establish this effort and to the participants on the Advisory Committee and Working
Groups. Implementation of key elements of the strategy is already underway and I am excited
to be part of this important effort," Dennis McLerran, Cascadia Law Group

Co-Chairs: Governor's Maritime Innovation Advisory Council
Rep. Gael Tarleton  WA State Legislature
Frank Foti  Vigor
Dennis McLerran  Cascadia Law Group
Staff
Joshua Berger  Governor's Maritime Sector Lead

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Table of ContentsClick to edit Master title
Executive Summary                          5
Global Issues and Opportunities                 19
Sustainable Blue Economy
Global Trends
Maritime Clusters
Washington's Role in the Blue Economy          25
State Maritime Overview and Linkages
Developments, Challenges, & Opportunities      32
State Maritime Subsector Analysis & Stakeholder Perspectives
Washington Maritime Blue Strategy
Maritime Blue Strategy Framework                                  51
Goals, Pathways & Initiatives
Policy Recommendations
Project Overview                               69
Stakeholder Process
Cluster Organization
Conclusion                                    76
About the Team
Appendix (available online)
A. Maritime Blue Strategy Course Setting
B. Cluster Organizations & Pathway Case Studies
C. White Paper  Workforce Sustainability in the Washington Maritime Industry
D. References and Additional Sources

The report is divided into four sections that can be downloaded individually:
Strategy Summary Brochure
Executive Summary
Main Report Body
Appendices
The entire report with all sections can be read and downloaded at:
https://www.commerce.wa.gov/growing-the-economy/key-sectors/maritime/
https://www.maritimeblue.org
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Washington's Strategy for the Blue Economy | January 2019

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Global Issues and
Opportunities




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Ocean-Based IndustriesClick to edit Master title
Offer New Opportunities
Established and emerging ocean based industries offer significant opportunities
for growth. Globally, public and private entities are increasingly turning to the ocean to
explore the potential it offers. The ocean covers more than 70% of the earth's surface and
holds about 97% of its water (NOAA 2018).
According to the Organization for Economic Co-operation and Development (OECD), by
2030 many ocean-based industries have the potential to outperform the growth of the
global economy as a whole (2016). OECD's projections depict the significance of the global
ocean economy by measuring its value added in terms of the ocean-based industries
contribution to economic output and employment.
OECD estimates that in the business-as-usual scenario (BAU), industries are projected to
double their contribution to global value, bringing in $3 trillion in 2030 compared with $1.5
trillion in 2010. The growth is in both established and emerging ocean based industries,
particularly in marine aquaculture, offshore wind, fish processing, and shipbuilding and
repair. The 2030 projections for industry employment growth are also significant with the
addition of 40 million full-time equivalent jobs, particularly in offshore wind energy, marine
aquaculture, fish processing, and port activities.
Value added of ocean-based industries
from 2010 to 2030








Image Source: OECD 2016
These increasing ocean-based activities also bring challenges, including growing pressure on
an already stressed marine ecosystem. Threats to the environment include overexploitation
, pollution, declining biodiversity, and climate change. In order ensure
sustainable ocean industries, opportunities need to be carefully managed so the Blue
Economy lasts well into the future.
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Sustainable Blue EconomyClick to edit Master title
What is the Blue Economy?

With this growing trend
in ocean-based activities
impacting marine
ecosystems, the term
Blue Economy has seen
a surge of interest all
over the world.
An emerging concept
with no universal
definition yet, the Blue
Economy is described by
the World Bank (2017)
as:
Image Source: World Bank 2017
"the sustainable use of ocean resources for economic growth,
improved livelihoods, and jobs while preserving the health of
ocean ecosystem."
The Blue Economy has diverse components including established ocean-based industries
such as fisheries, tourism, and maritime transport, but also emerging industries such as
offshore renewable energy, aquaculture, seabed extractive activities, and marine
biotechnology and bioprospecting.
The Blue Economy seeks to transition the maritime economy beyond "business as usual"
and embrace the idea that economic growth and ocean health are entirely compatible, if not
necessary, for long-term sustainability. Only by leveraging scientific and technological
advances can the environmental challenges facing the oceans be adequately addressed.
Innovations are expected in the areas of advanced materials, subsea engineering and
technology, sensors and imaging, satellite technologies, computerization and big data
analytics, autonomous systems, biotechnology, and nanotechnology.
The role of government is important to facilitate the development of science, innovation,
and technology in the Blue Economy. The global nature of the challenges facing our oceans
and of the maritime industry makes international collaboration and cooperation essential to
ensure a sustainable Blue Economy. Sustainable development will not be secured by
regional or local initiatives alone.
The Blue Economy is taking off around the world: Norway's ships are humming to electric
engines. Ports are investing in the future for greater efficiencies, including the Port of Los
Angeles/Long Beach constructing the world's first zero emission terminal. Marine renewable
energy is growing to grid scale, and our ability to collect and analyze ocean data has
increased dramatically.
The various trends in the sustainable development of the global maritime industry are
categorized in nine areas, as illustrated on the next page.
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Global Maritime Trends inClick to edit Master title
Sustainable Development
Alternative Fuels                 Digitalization                  Partnerships
MEPC 72 GHG decision                       Data availability &                     Leading maritime capitals
increases pressure for the                     transparency revolutionizes                     invest in collaboration
low carbon transition                       traditional business models


Gas-fuelled fleet expands              The digital transformation                Government, Industry and
Biofuels, methanol, and                provides opportunities to:                 Research partnerships
hydrogen concepts develop              Improve efficiency & accuracy       Formal and dedicated
further                                     Add customer & stakeholder           cluster organizations are
Fuel cell technologies mature               value.                                 growing
Wind on the horizon?                     Generate new businesses.
Electrification                Environmental Capital              Efficient Design
Falling costs & technical                      Growing awareness of and                     Advances in computing
advances speed the uptake                   sensitivity to the health of                 power & advanced materials
of battery & hybrid solutions                        marine ecosystems                          drive efficient designs



Rapid expansion in shortsea           Public and supply chain                 Advanced hydrodynamics
and ferry applications                   stakeholder scrutiny and                  simulation capabilities
Huge potential for hybrid                expectations are growing                Modelling of complex
applications                            Industry taking a broader view           cyberphysical systems
Fully electric not viable for                of its environmental impact               Lightweight and next
deep sea trade for                     Local environmental                      generation materials
foreseeable future                      requirements
Policy & Incentives                 Aquaculture              Automation/Autonomy*
Maritime nations are taking                      Aquaculture provides a                    Cost pressures and manning
a more strategic approach                   growing share of the world's                 shortages drive advances in
to the industry                                      fish                               automated and autonomous
technologies


'Smarter' policy is driving &            Significant growth forecast to            The first fully autonomous
incentivizing development in            meet global consumption demand        ships
key strategic areas                    Aquaculture pushing further             Focus on safety and reliability
Local emissions &                      offshore                                 benefits of autonomy
environmental rules rewarding        Rapid innovation in technology &        A future skills strategy must be
positive efforts                            practices                                    understood and addressed
Washington's Strategy for the Blue Economy | January 2019                                          22
* IMO announced in 2018 to take first steps to address autonomous ships

Maritime Clusters: EnhanceClick to edit Master title
and Develop Maritime Sectors
The maritime industry is a global business, characterized by many mobile companies.
Attracting these companies to a specific location involves tough competition amongst other
candidate locations. Specialized knowledge-based services are the least mobile companies in the
maritime industry as they are deeply embedded in the local community due to links to
universities and reliance on specialized local competence. Because firms increasingly split up
their value chains, cities compete to attract activities  not companies.
Location attractiveness of a city or country can be defined as a function of:
Companies competitiveness present in the location
City attractiveness to host those companies. This relates to the qualities of resources (people,
competence, access to capital, infrastructure) available in the location and the price they have
to pay these resources and how these resources are perceived by companies inside and
outside of the location
Cluster dynamics present in the location. Strong cluster dynamics encourage increased
competitiveness for companies and the location, which further attracts companies to the
location.







These three elements are directly influenced by public policies of the location that support value
creation such as taxes, subsidies, R&D, education, and also indirectly by policies in other
locations as the competition is global.
The winners in the future will be those cities that are able to attract:
Science and higher education
Owners and headquarters
R&D  product and technology development
Financial, legal and other sophisticated business services (Jakobsen et al. 2017)
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Cluster Focus & OrganizationsClick to edit Master title
Strengthen Maritime Industry
Countries and cities around the world compete to attract and retain global
maritime companies operating in global markets. The race for attractiveness has never
been as intense as it is today.
Several countries and cities have already recognized the tremendous success that comes
from a cluster focus. Countries such as Norway, Singapore, and UK have already started
initiatives aimed at helping maritime industries grow by giving them the support they need.
One common method of ensuring the cluster focus and dynamics run smoothly is setting up
a cluster organization. European Union defines cluster organizations as "structures or
organized groups of independent parties designed to stimulate innovative activity by
promoting sharing of facilities and exchange of knowledge and expertise and by contributing
effectively to knowledge transfer, networking, information dissemination and collaboration
among the undertakings and other organizations in the cluster."
An overview of mature maritime clusters in leading maritime locations:
Norway is one of the few European countries with a complete maritime
cluster including shipbuilding
Norway has a government-induced cluster that aims to enhance value
creation within innovation, internationalization as well as developing
Norway
expertise
Norway has 13 cluster organizations
Singapore has 3 cluster organizations working towards strengthening
Singapore's position as an International Maritime Center: Maritime & Port
Authority (MPA), Singapore Shipping Association (SSA), and Singapore
Maritime Foundation (SMF).
Singapore      MPA acts as an industry regulator, SSA as a National trade association
and SMF as an industry outreach and promotion organization.
UK benefits from a diverse, wide-ranging and competitive maritime
sector with a number of important constituent parts.
The UK maritime industry is represented by various industry
United Kingdom     associations and sector bodies that positively contribute to the overall
cluster development, however each of them represent their own
interests/priorities.
Success from this cluster focus has worked well for these countries and they now hold a
strong position as leading maritime countries across the world. This trend is easily observed
in a ranking published in The Leading Maritime Capitals of the World (Jakobsen et al.
2017) and The Leading Maritime Nations of the World 2018 (Jakobsen et al. 2018)  a
study that benchmarks the 30 leading maritime city regions/countries around the world in
four sectors: shipping, finance and law, technology, ports and logistics, together with an
overall assessment of the cities' attractiveness and competitiveness.
Norway ranks 4, UK ranks 8 and Singapore ranks 9. While the US holds a high rank of 2,
Washington needs to work towards increasing the competitiveness of the state by
developing strategies to attract highly productive and innovative companies and
activities, along with talented individuals to make them more competitive.
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Click to edit Master title
Washington's Role in the Blue
Economy



State Maritime Overview & Linkages

Washington's Strategy for the Blue Economy | January 2019Washington's Strategy for the Blue Economy | January 2019                                          25

Context and ImpactClick to edit Master title
The Washington Maritime industry impacts the entire state of Washington. Not
every county in Washington State has a port authority, but the maritime sector directly
employs workers in every county. Washington State boasts one of the most interdependent
and diverse maritime sectors in the county, and it is the most trade-dependent state in the
US with 1 in 4 jobs tied to international trade.
Maritime activity has long been a pillar of Washington State's economy, with $17.1 billion
in gross business income and 69,500 good-paying jobs. Today's maritime jobs have salary
ranges above that of other trade industries. The average pay for a job in Washington is
$56,900, while maritime workers are paid an average of $67,000  totaling over $4.7
billion in wages in 2015. This sector continues to grow at an average of 6.4% a year and
has the potential for a much greater impact on the state's economy (Community Attributes
Inc. 2017).
Other key statistics include:
Maritime industry worth more than $37 billion to state economy.
Washington's maritime sector includes 2,300 companies that employs almost 70,000
people. The industry responsible for more than $17.1 billion in revenue and $4.7 billion
in wages annually. Historically, the annual growth rate has been between 3% to 6%.
The cluster represents a deep network of activities that positively contributes to
economic growth of the state. Statewide, for every direct job in Maritime, an additional
1.6 jobs were supported elsewhere in the state economy. Likewise, every million dollars
of sales by Maritime firms supported almost 10 jobs throughout the state economy.
Washington's Maritime Economic Impact



2016 Economic Impact Study, Community Attributes
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Maritime Assets and
PartnershipsClick to edit Master title
Governor Inslee's Sector Lead Program
Mission:
To grow and strengthen communities by promoting a strong business
climate in our state through targeted high demand industry sectors that
focus on strategic economic development efforts.
In recognition of the maritime sector's role and its potential in the state's economy,
Governor Jay Inslee established a Maritime Industry Sector Lead in 2013, housed within the
Department of Commerce. The Sector Lead serves as liaison for the Governor with maritime
industry interests, supports industry-wide coordination, creates a supportive business
climate, sets strategic direction, and encourages the development of the 21st century
workforce. The lead is also responsible for coordination with key trade associations and
cluster organizations, such as the Washington Maritime Federation and the new Washington
Maritime Blue Cluster organization, described below.



The Washington Maritime Federation           This is a strategic alliance to accelerate
(WMF) is a coordinated and unified voice       growth in maritime business, technology
of the diverse and interdependent              and practices that promote a sustainable
subsectors of the maritime industry. WMF      future contributing to economic growth,
supports policy and investment priorities       ecological health, thriving communities 
that support the vitality, growth and            the Blue Economy.
resilience of Washington's maritime            The alliance will drive implementation of
industry. Regional, state, and federal           the Washington Maritime Blue Strategy and
priorities are based on a full consensus         facilitate collaboration to ensure a strong
decision-making process by WMF              maritime cluster focused on technology
members advised by associate members       acceleration, entrepreneurship, business
and a broad group of business, labor, and      support services, and workforce
government stakeholders.                    development
It has created a communication conduit to     Working in concert, the two organizations
decision makers and for the various sub-       can ensure that policies and incentives that
sectors of the industry to engage with one      support a thriving and sustainable maritime
another. There are now open channels to      industry are prioritized by decision makers
convene ports, labor organizations,             and regulators.
the workforce system, university research
centers, and other economic sectors.
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Maritime Innovation CenterClick to edit Master title
In 2013, Governor Jay Inslee called for
planning a Maritime Innovation Center to support
Washington's diverse maritime needs for
technology development, entrepreneurship and
business services. Since that time a partnership
has been built between the Washington State
Department of Commerce, University of
Washington's Applied Physics Lab, maritime
businesses and the Port of Seattle to plan and
build a facility.
Sketch courtesy Port of Seattle
In 2018, the Port of Seattle engaged the Maritime Alliance to complete a planning and
feasibility study to underpin the start-up and ongoing operations of the Maritime Innovation
Center and has subsequently included the building's development in the Port's Capital
Budget Plan. Governor Inslee has proposed funding in the 2019-2021 Biennial Capital
Budget to support the effort.
Next Steps
The Washington Maritime Blue cluster
organization will work in partnership with
the Port to develop a business plan to
begin offering services and manage the
facility as a focal point for a "hub and
spoke" model to support innovation across
the State of Washington.

What is clear in our research of incubation programs is that co-location
of like-minded businesses or startups with collaboration from academia,
Industry, and policy-makers is critical to help facilitate the needed
culture for innovation in maritime.
The Maritime Innovation Center will:
1. raise the profile of maritime industries in a crowded media space,
2. leverage regional expertise in high-tech software and data companies
to introduce disruptive technologies in the maritime field,
3. introduce young people to exciting new careers, and
4. support early stage maritime companies with a hub-and-spoke model
of collaboration across the entire maritime sector in Washington State.
(Source: Maritime Alliance & ECONorthwest 2018)

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Washington's Leadership,
Need for LinkagesClick to edit Master title
Washington State is recognized for its stewardship in sustainability. WA is part of a
coalition of 15 states and territories that has committed to reaching the climate goals of the
Paris agreement. Washington also shares the regional goals for reducing greenhouse gas
emissions at least 80% by 2050 as part of the Pacific Coast Collaborative: "Through the Pacific
Coast Collaborative, British Columbia, Washington, Oregon, California, and the cities of
Vancouver, Seattle, Portland, San Francisco, Oakland, and Los Angeles are working together to
build the low carbon economy of the future" (Pacific Coast Collaborative home page 2018).
Governor Inslee has also provided policy and strategic guidance through his Deep
Decarbonization efforts and Clean Energy Future for Washington State (both available on
Governor Inslee's government website), which the Maritime Blue strategy is aligned with.
CNBC Top        Lowest Cost      Most             Best State
States for            Energy in U.S.       Innovative           Economy
Business in          (Department        U.S. State           (WalletHub)
2017             of Energy)         (Bloomberg)
#1    #1    #3    #1
Source: http://choosewashingtonstate.com/
Washington is also well known for being the birthplace for international companies
and for being one of the best places in the US to start and to run a business. There is a
culture of creativity and cooperation in this state that seems to be very beneficial for
businesses. There are many reasons for this and the examples are many.
The maritime industry in Washington is less known to the general public, however equally
impressive. Washington's maritime industry operates in one of the most stringent regulatory
climates and often with public scrutiny on the impacts of the industry on the natural
environment and disaffected communities. Yet, in comparison to other maritime clusters,
Washington's maritime industry is a global leader in best practices, technology deployment and
sustainable actions, from innovative port stormwater systems to the world's first hybrid tug
boat. The industry is eager to collaborate, share and communicate more clearly its leadership
and intention to continue towards sustainability  it's an integral part of the local ethic. Couple
that drive with clear indications that the new ocean/maritime economy is set for extraordinary
growth, and you have the perfect ingredients for a cluster organization's ability to facilitate the
Blue Economy.
In this context, collaboration and coordination of industry activities become key, including the
creation of linkages that extend beyond state borders to leverage regional, national and global
activities that align with the sector's common objectives. These linkages will broaden the
knowledge base for WA stakeholders by sharing best practices and collaborating in innovation
areas to accelerate commercialization opportunities. To optimize the opportunities and support
growth throughout the industry regardless of location or sub-cluster, it is necessary to organize
and provide support through a "hub and spoke" model.
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Building on Washington's
Click to edit Master title
Strengths Across Sectors
In any strategy work, it is important to identify key strengths to be able to build on
those to reach new goals.
Washington has a long, proud history in the maritime industry. There is a reason why the
Seattle baseball team is called the Mariners. As highlighted in the subsector analysis later in
this report, state maritime industry has grown from a strong base of fishing fleets to
encompassing the full range of support services, international and regional ports, yard
services, and more.
Some of the most exciting opportunities for the maritime sector, however, arise from
collaborations with subsectors and leveraging some of Washington's other strengths. The State
of Washington is an international leader in information and communication technology (ICT)
and ranks highly as an alternative to Silicon Valley. Being the home of Amazon and Microsoft,
as well as hosting a thriving entrepreneurial ICT community, the state is well-established as a
innovation leader.
For decades Washington has also been a leader in the aerospace industry, with material
science, production engineering, and advanced manufacturing all standing out as strengths
with potential applications in the maritime industry.
Washington also boasts significant activity in the clean technology sector. According to the
state's Department of Commerce website, there are nearly 90,000 clean tech workers in the
state backed by more than $1 billion in venture capital. This sector has also been supported by
innovation in academic and research institutions and state and federal funding.
The defense sector is Washington's second largest direct public employer, just after the state
itself. Defense industries here comprise many sectors, which contributes to a strong economy.
The diverse defense missions, military installations, pioneering companies, and military-
friendly communities contribute enormous value now and possibility.
The economic contribution and historical legacy of the maritime industry in combination with
the strengths of the industries described below are critical to developing and executing
strategies to grow a Blue Economy.
WA Clean Tech Sector                  WA Information & Communication Technology
100+ companies, possessing 195 patents serving                                Sector
more than 12 different industrial sectors. This sector         ~200,000 jobs at 14,000 Firms
is supported by world-class research institutions             Payroll $22 billion
including the Pacific Northwest National Laboratory,          Median Wages  $110,00-$140,000
the University of Washington and Washington State
University.
WA Military and Defense Sector
WA Aerospace Sector                  Second largest public employer in WA state
(>127,000 employees)
136,100 jobs at 1,400 firms                                   Supports over $13 billion dollars in annual
$69.9 B in economic activity                                   procurement through ~2,000 businesses,
59.8% of foreign exports                                       representing almost 3% of the state's GDP.
Boeing 777X and its carbon-fiber wing are built             Focuses on strong military-civilian partnerships,
here.                                                    enhancing innovation, providing for compatible use
Emergent sub-sectors: UAV/UAS, space                      in local communities, and supporting the transition
exploration, MRO and aviation biofuel.                     from service members to civilian life.

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Funding OpportunitiesClick to edit Master title
for Maritime Innovation
While Washington State does not have the same type of government financial support as seen in
places such as Norway, Singapore, China and other countries ranked in the Leading Maritime
Nations of the World report, the US was just named as number one in the category of Maritime
Finance and Law. This was due to its bond markets, large number of listed companies, IPO's and
private equity markets (Jakobsen 2018). A cluster organization can help companies with finding
ways to tap into these resources. In addition, there are state and federal funding opportunities
available for maritime innovation and growth. Some of those opportunities are described below.
Washington State Clean Energy Fund (CEF)
WA Commerce manages this bi-annual fund to support development, demonstration &
deployment of clean energy technologies. For CEF Round 3, $46 million was allocated as follows:
Matching Program for Energy Research and Development (R&D) -$8.6 million
Grid Modernization Program -$11 million
Transportation Electrification -$11 million
Solar -$4 million
The Transportation Electrification category specifically calls out maritime transportation. Grid
Modernization and R&D could also be applied for maritime shore power and other maritime clean
energy innovations. For details, please visit: https://www.commerce.wa.gov/growing-the-
economy/energy/clean-energy-fund/
Opportunity Zones
The new federal Opportunity Zone program provides tax incentives for investing in certain low
income census tracts. Washington State has 139 of these Opportunity Zones, and over 50
percent are located on the waterfront or in ports. For details, please visit:
https://www.commerce.wa.gov/growing-the-economy/opportunity-zones/
Volkswagen (VW) Settlement Fund
Washington State is eligible for $112.7 million from the VW settlement for projects that reduce
emissions. According to the State of Washington Beneficiary Volkswagen Settlement Plan
(2017), funds will be prioritized based on where VW vehicles were, are or will be operated and
have greatest potential to mitigate the total, lifetime excess NOX emissions. The key
opportunities include Electric Ferries In the Puget Sound and Electric Charging Stations
(including ports, non-road equipment, marine vessels and heavy-duty trucks). For details,
please visit: https://ecology.wa.gov/DOE/files/41/417a6510-a669-4a10-927d-4ebc02282f4a.pdf
EPA Diesel Emission Reduction Program
In April of this year, EPA announced that they anticipate awarding approximately $40 million
nationwide in Diesel Emission Reduction Program (DERA) grant funding. This program includes
commercial marine vessels. For details, please visit: https://www.epa.gov/newsreleases/epa-
grants-available-reduce-emissions-diesel-engines-alaska-idaho-oregon-and-washington
US Department of Commerce, Economic Development Administration's (EDA) Public
Works and Economic Adjustment Assistance (EAA) programs
EDA solicits applications from applicants in rural and urban areas to provide investments from
$100,000 t0 $3 million that support construction, non-construction, technical assistance, and
revolving loan fund projects. For details, please see: https://www.grants.gov/web/grants/view-
opportunity.html?oppId=306735

Washington's Strategy for the Blue Economy | January 2019                                          31

Click to edit Master title
Developments,
Challenges, & Opportunities
in WA's Blue Economy



State Maritime Subsector Analysis &
Stakeholder Perspectives
Washington's Strategy for the Blue Economy | January 2019Washington's Strategy for the Blue Economy | January 2019                                          32

Range of WA's Maritime
Industry and SubsectorsClick to edit Master title
Washington's maritime sector includes a diverse range of maritime subsectors and
support services. In addition to thriving private enterprises, the maritime industry includes
significant public sector elements such as military and federal activities through the U.S.
Navy, U.S. Coast Guard, National Oceanic and Atmospheric Administration; university and Maritime industry worth more than $30 billion to state
research institutions; and numerous public support entities, including 75 port districtseconomy.
statewide. Washington's maritime sector includes 2,300 companies that
employs almost 70 000 people. The industry responsible for
more than $17.1 billion in revenue and $4.7 billion in wages
annually. Historically, the annual growth rate has been
between 3% to 6%. Federal Presence in WA Maritime Sector
Including indirect and induced impacts, the maritime sector is                                                                                   Naval Base                U.S. Coast Guard           National Oceanic &              University of
Kitsap/Puget Sound                responsible for 191,000 good paying jobs, and $37.8 billion in                                  District 13              Atmospheric          Washington (UW)
economic activity.Naval Shipyard                               Administration Western
Regional Center                                        Based in Seattle,                                 Based in Seattle, UW has
The Puget Sound Naval  The cluster represents a deep network of activities that                                    performing maritime       Based in Seattle, houses     substantial fisheries and
Shipyard is the Pacific                     positively contributes to economic growth of the state.                                        safety, security, law          the largest variety of        ocean sciences teaching
Northwest's largest Naval                     Statewide, for every direct job in Maritime an additional 1.6                                          enforcement and           NOAA programs at a             and research
shore facility and one of                      jobs were supported elsewhere in the state economy. Likewise,                                                    environmental missions        single location in the        departments, which are
Washington State's                 every million dollars of sales by Maritime firms supported                                          on the navigable waters of      nation, including the        strongly supported by
largest industrial            WA, OR, ID, MT and              Pacific Marine                federal research
installations, employing                     almost 10 jobs throughout the state economy                             460,00 square miles of     Environmental Laboratory,            programs.
nearly 13,400 workers in     the Pacific Ocean. Home    Oceanography and Marine
2015.              to the U.S. icebreaker     Services and elements of
fleet.                    the National Marine
Fisheries Service.

Most maritime activity is clustered around the Puget Sound, with important nodes across the
state and along the Snake and Columbia rivers. Boat and ship building, repair and
maintenance activities are centered in Kitsap, King, Pierce, Skagit, and Whatcom counties,
with the largest number of workers are based at the Puget Sound Naval Shipyard in
Bremerton. Recreational boat building and boating activities are centered in King County,
which spread across the state's inland water resources including the Columbia River.
Commercial fishing and seafood processing activities are clustered primarily in the Greater
Seattle area, but smaller seafood processing and aquaculture activities can be found
elsewhere in the state.
The maritime logistics and shipping subsector extends into Eastern Washington with
employment in rail and trucking activities directly related to the maritime sector. Rail
networks extend across the state, with major railyards in Seattle, Tacoma, Centralia, Pasco,
and Spokane. Rail is an essential component of Maritime Logistics and Shipping, facilitating
the movement of marine cargo to and from the state's seaport terminals.
The Northwest Seaport Alliancerepresenting Washington's two major containerized ports
manages the movement of discretionary cargo traffic, i.e., imported containers destined for
locations in the Midwest and elsewhere. Handling of this cargo supports many jobs and
businesses within Washington, including among terminal operators, rail yards, and freight
logistics businesses.

Washington's Strategy for the Blue Economy | January 2019                                          33

Range of WA's Maritime
Click to edit Master title
Industry and Subsectors
The Passenger Water Transportation subsector focuses on activities in King and Kitsap Counties,
which include the daily movement of Seattle area commuters by ferry as well as cruise ships
embarking from Seattle. Less visible but equally important to highlight are the dozen river boat
manufacturers residing within Clarkston, a small town in eastern Washington that borders
Idaho, and produces over $70 million dollars in annual sales.
Maritime support services is a broad subsector that covers naval architecture, marine
construction, geotechnical and environmental analysis, marine education, and associations.
These businesses are spread across the state, though a large number are located in proximity
to the maritime businesses they serve.
Maritime Sector Employment by County 2015












Sources: Washington State Department of Revenue 2015; Washington State Employment Security Department 2015;
United States Census Bureau 2014; Washington Maritime Federation 2016; Community Attributes Inc. 2016


Washington's Strategy for the Blue Economy | January 2019                                          34

Washington's Maritime
Subsector AnalysisClick to edit Master title
As part of the Maritime Blue strategy initiative, an analysis was conducted for six
key marine industry subsectors, as shown in greater detail in the figure below:


Passenger Water
Transportation
Ship & Boat Building,
Deep sea passenger
Repair, &                    transportation
Maintenance              Coastal & great lakes
Ship building and repairing             passenger transport
Recreational boat building,            Inland water passenger
repair & maintenance                 transportation
Puget Sound Naval Shipyard          Other support activities
Maritime Support
Services
Geotechnical &
Ocean Science           Environmental          Commercial Fishing
Technology             Naval Architecture
Law                          &  Seafood Products
Ocean Energy                  Accounting                Finfish farming & fish
Ocean instrumentation           Associations                 hatcheries
Oceanography & Marine          Marine Construction        Shellfish farming
Science                          & Engineering              Finfish fishing
Robotics & Submarines           Maritime Insurance         Shellfish fishing
Marine Biomedicine/                                          Seafood product
biotechnology                                                 preparation & packaging
Clean Water                   Logistics & Shipping
Port & Harbor Operations
Marine Cargo Handling
Warehousing & Storage
Navigational Services to
Shipping
Deep Sea & Coastal
Freight
Freight Transportation
Arrangement
Drayage & Trucking

The subsector analysis on the following pages provides a snapshot of their economic
contributions, current developments, and current challenges that impact Washington's Blue
Economy. The six subsectors were defined, categorized, and grouped based on previous
maritime-industry studies, such as those conducted by the Washington Maritime Federation.
There are two differences in the grouping for this analysis: Ocean Science Technology was
added as a single subsector, given current national and international developments in this
area. The Recreational Boat Construction and Recreational Boating category was designated
within the Ship and Boat Building subsector. This analysis drew on numerous sources, which
are listed in Appendix D: Subsector Analysis Sources.
Washington's Strategy for the Blue Economy | January 2019                                          35

Commercial Fishing &
Click to edit Master titleSeafood Processing
This subsector includes 3 areas:
Wild Capture Fishing: aquatic
life is not controlled (includes
finfish and shellfish fishing)
Aquaculture/Fish Farming:
Raising aquatic life for
commercial use (includes
finfish and shellfish farming)
Seafood Processing:
Establishments involved in
processing, preparation and
packaging of seafood.
DNV GL photo
In 2015, this Washington subsector:        Supported 23% of total
maritime jobs
Contributed 44% of the
total maritime industry                   Paid $1,075 million in
revenue                              wages
Current Developments                     Current Challenges
Precautionary, ecosystem-based federal           Changing climate conditions increasing
fisheries management ensuring world-class       uncertainty in fish stock forecasts and
sustainable fisheries.                               business planning.
Increased investment (e.g., new vessels and      Trade-dependent WA State seafood industry
value-added processing) in North Pacific and      challenged by uncertain trade agreements.
West Coast fisheries that account for more       Seafood industry markets impacted by
than 70% of all U.S. seafood landings.            agenda-driven, not science-driven non-
Improved technology and performance in          governmental organizations.
groundfish fisheries promoting "clean" fishing,    Decreased funding for stock surveys, critical
including decreased Chinook bycatch.             research, and key federal agency personnel.
Advances in marine science allowing for more    Access to resources limited by allocation
accurate stock assessments and climate          conflicts and extra jurisdictional regulatory
predictions.                                         bodies.
Puget Sound Partnership addressing water        High regulatory standards and compliance
quality and habitat in Puget Sound.               cost relative to other producing regions in
Shellfish aquaculture rapidly expanding.            global seafood markets.
Non-native fish farms being phased out in         Puget Sound vital signs below 2020 targets.
Washington.                                 Interactions with marine mammal predators.
Federal funding made available to assist with    Increasing costs and lack of maritime,
aquaculture pilot projects.                         industrial lands for working waterfronts.
Washington's Strategy for the Blue Economy | January 2019                                          36

Maritime Logistics
Click to edit Master title& Shipping
This subsector includes 3 areas:
Transportation: Establishments
involved in water transportation
of cargo.
Warehousing: Establishments
involved in providing refrigerated
and general warehouse facilities.
Support Firms & Services:
Establishments that provide
specialized logistics & shipping
services such as operating ports
and marine cargo handling.
DNV GL photo
In 2015, this Washington subsector:     Supported 32% of total
maritime jobs
Contributed 24% of
the total maritime                       Paid $1,479 million in
industry revenue                       wages
Current Developments                Current Challenges
Seaport Alliance's Strategic Business Plan:
Declining cargo market share due to:
Optimized infrastructure investment to
develop facilities for the future                         Terminal productivity and rail
competitiveness
Deliver customer focused operational
excellence                                          Difficulties in securing the
industrial lands for world class
Successful policies from Ports of Vancouver              facilities
and Savannah, GA:
Shifting global trade patterns,
New investment models for financial                    alliance models and route
sustainability and growth                             diversification
Improved siting and project delivery            Fewer green-related incentives/rewards
Enhancing port stakeholder coordination         (e.g., discounted harbor dues) than
Regional Green Initiatives:                          neighboring and competing Port of
Northwest Ports Clean Air Strategy,             Vancouver as well as leading ports in
participation in Green Marine, Cold               the world.
Ironing (onshore power supply), FRATIS
(freight advanced traveler information
system), cargo handling equipment with
fuel-efficiency plans.
Washington's Strategy for the Blue Economy | January 2019                                          37

Passenger
Click to edit Master titleWater Transportation
This subsector includes 3 areas:
Deep Sea Water Transportation:
Transportation of passengers to
and from foreign ports (cruise)
Coastal & Inland Water
Transportation: includes all water
transportation of passengers in
coastal and inland areas (ferries).
Support Activities:
establishments involved in
providing services to water
transportation.
DNV GL photo
In 2015, this Washington subsector:
Supported 3.3% of total
Contributed 2% of the               maritime jobs
total maritime industry
revenue                            Paid $138 million in wages

Current Developments                 Current Challenges
Reducing environmental impact of               International regulation and local factors
passenger water transportation: cleaner        driving a need to reduce the
burning engines, low-emissions fuels,           environmental impact of the growing
reduced risk of fuel spills, hull design to         deep sea water transportation market.
reduce wake, and quieter machinery.
WSF face growing demand and ridership
$600,000 funding to Washington State          while contending with:
Ferries (WSF), to explore conversion of
three ferries (Jumbo Mark II Class) from          Aging fleet: all but 13 vessels are over
diesel to hybrid electric.                             30 years old
WSF Long Range Plan to build new                 Lack of time for maintenance: Boats
hybrid/electric fleet and transition to a             are in service 20+ hours a day
zero-carbon-emissions, including the          One relief boat and limited drydock
accelerated adoption of both ferry              capacity:
electrification and operational
improvements that will conserve energy,         Aging workforce and a need to focus
cut fuel use and reduce the cost of                on succession planning
operating ferries.
Washington's Strategy for the Blue Economy | January 2019                                          38

Ship and Boat Building,
Repair, & MaintenanceClick to edit Master title
This subsector includes 3 areas:
Puget Sound Naval Shipyard: repair
and maintenance of military (U.S.
Navy) vessels.
Boat & Ship Building: new
construction of commercial and
recreational vessels.
Repair & Maintenance: maintaining
all existing commercial and
recreational vessels.
DNV GL photo
In 2015, this Washington subsector:
Supported 30% of total
Contributed 12% of the             maritime jobs
total maritime industry
revenue                            Paid $1,395 million in wages

Current Developments               Current Challenges
U.S. consumers want fish that have been          An ageing workforce and a growing
sourced in an environmentally friendly             skills gap as new methods and
manner  need for fisheries and fish               technologies emerge.
farms to create a green image.                  Washington's annual average wages
Washington State Ferries shift to hybrid-           for technical shipbuilding professions
electric propulsion systems opportunity to         is much higher than US average,
demonstrate leadership.                         making shipyards less competitive
Increasingly strict international, EPA and           domestically.
state environmental legislation increases          Norway and Denmark are strong
the need to build and operate green               competitors in building specialized
vessels.                                            tonnage with state-of-the-art
Strong ties with Canada and Asian trade            technologies.
partners present opportunities for                 Neighbouring Canada is growing into a
cooperation and export.                          strong international competitor in
Washington Clean Energy Funds available          batteries and fuel cell technologies.
for maritime electrification to support
renew or retrofit of fleet with clean
technologies.
Washington's Strategy for the Blue Economy | January 2019                                          39

Maritime Support ServicesClick to edit Master title
This subsector includes 3 areas:
Naval Architecture & Marine
Engineering: construction & architecture
firms specializing in designing & building
structures on or near water.
Geotechnical & Environmental: firms
engaged in providing environmental
impact analysis, geotechnical analysis
and engineering, & environmental
remediation.
Other professional services: ecosystem
of legal, insurance, & accounting firms.
DNV GL photo
In 2015, this Washington subsector:
Supported 12% of total
Contributed 19% of the             jobs
total maritime industry
revenue                            Paid $569 million in wages

Current Developments                 Current Challenges
Rising demand for maritime engineering      Gap between workforce demand and
expertise driven by emerging                 supply, particularly for skilled maritime
technologies and legislative challenges.        disciplines and professional services.
Increasing public and private focus on         Limited business associations restrict
technology research and development to      collaboration within the sector.
meet changing industry needs.              A lack of specialized maritime capital
Growing promotion and recognition of          sources and financial service providers.
the value of green and sustainable           Innovation restricted by a lack of
practices and design.                         knowledge transfer and limited
Societal and consumer expectations for        mechanisms for incubation and
increased transparency in business           acceleration.
processes.


Washington's Strategy for the Blue Economy | January 2019                                          40

Ocean Science TechnologyClick to edit Master title
This subsector includes 4 areas:
Ocean Technology: includes ocean
energy, ocean instrumentation, &
oceanography.
Robotics & Submarines: includes
both manned and unmanned
underwater vehicles.
Water Technology: addressing
water quality and desalinization.
Marine Biomedicine/Biotechnology:
products developed from
marine animals and plants.
DNV GL photo
Washington is a leader in:
Clean water science, ocean research,    Clean energy technologies research,
and data collection and processing        development, and commercialization
More than $300 million of annual federal funding to ocean research institutions
in WA State, including: PNNL-MSL, UW-APL, NOAA, WWU-Shannon Pt. Marine
Center
Current Developments                      Current Challenges
Explosive growth in marine renewable energy    Ocean Energy resources are located in
(wave, tidal, offshore wind) and significant         challenging environments where
progress in cost reductions.                        conventional technologies are impractical.
Development in instruments for environmental    Critical shortage of offshore energy
monitoring and modelling for marine              installation vessels in US shipyards to meet
mammals, ocean acidification, condition           Jones Act requirements.
monitoring and the changing arctic.              Lack of a permitting process to encourage
Increase of unmanned/autonomous vehicles        innovation and small-scale demonstration of
for measurements and data collection.             new blue technologies.
Improvements in climate and ecosystem           Storm water runoff leading to water pollution
modelling capabilities.                               and causing floods. High cost for solutions.
Potential growth in innovative products in          Lack of awareness of commercial
marine biotechnology.                            opportunities and cross-over to maritime
Real-time environmental monitoring and            markets.
coordination on ocean acidification, cabled         Limited access and engagement from private
seafloor infrastructure and arctic awareness        capital investors.
Bioretention filtration techniques for storm
water remediation.
Washington's Strategy for the Blue Economy | January 2019                                          41

Stakeholder PerspectivesClick to edit Master title
As part of the development of the Strategy Framework, DNV GL and the Department of
Commerce conducted a survey in April 2018 of maritime stakeholders. Referred to as the
Cluster Survey in this report, the objective of the survey was to gather stakeholders'
perspectives of Washington's relative strengths and weaknesses and possible growth
opportunities.
The results of this survey were supplemented by another survey carried out in January
2018 to gauge interest in and preferences for a proposed Maritime Innovation Center. This
earlier survey, referred to as the Maritime Innovation Center Survey, was designed by Port
of Seattle, ECONorthwest, and The Maritime Alliance.
The results of the two surveys are complementary, indicating both perceived priorities for
the effective growth of the cluster and, specifically, stakeholders' expectations for the future
development of innovation in the cluster.
Cluster Survey              The Cluster Survey questionnaire was
based on one used by DNV GL and Menon
The online questionnaire was issued to        Economics to evaluate the strengths and
more than 450 maritime stakeholders in      weaknesses of leading maritime clusters.
Washington State. The survey had a          Respondents were asked to:
response rate of approximately 21%.
Rank the attractiveness of Washington
The stakeholders were divided into two       as a place to do maritime business in a
main groups:                                 number of competitive dimensions.
Say to what extent they felt statements
Maritime industry businesses                 associated with leading maritime
57% of the responses                 clusters applied to Washington State.
Express their interest in participating in
Trade associations, ports, labor               a formal cluster organization
organizations, Associate Development
Organizations, research facilities etc.
43% of the responses
The Maritime Innovation Center
Maritime Innovation Center Survey     Survey was conducted by ECONorthwest
and designed to better understand the
The online survey was sent to over 400       needs and views of targeted stakeholders
stakeholders and 136 full responses          such as startups and SMEs in the
were received.                               maritime and BlueTech sectors. The
survey was sent to stakeholders with
40% of the respondents self-identified        potential interest in a Center and they
as affiliated with the Maritime                 were asked to help identify:
Business sector with the second
largest category being the                      Innovation and growth barriers
Government (17.7%). The survey          Trending technology that can transform
also had representations from other             the maritime business
stakeholders such as academia and            Preferred focus and services of the
investors.                                         Center

Washington's Strategy for the Blue Economy | January 2019                                          42

Survey ResultsClick to edit Master title
Results from the Cluster Survey
The following factors were regarded as the                  55% of respondents
most attractive aspects of doing business in               would participate in a
Washington State:                                      blue economy cluster
100%              organization
Proximity to sophisticated customers        80%
Availability of world-class competence
Specialized/competitive supply chain            Respondents  60%
40%
Maritime businesses cited widespread
cooperation between the maritime companies       20%
in this region, and respondents also felt that
the demands of local customers drove               0%
Yes Definitely         Maybe        Definitely Not
innovation and improvement of products and
Source: DNV GL in publication
services.
The aspects of WA's maritime industry that participants ranked as most unattractive
compared to other regions were:
Access to capital (investors, banks and brokers)
Personnel costs
Policy framework
Statements which participants disagreed most strongly with were:
Our banks and financial service providers have highly specialized maritime
competence
Our maritime research institutions are among the best in the world
Our maritime educational institutions are among the best in the world
The relationships among the companies in the maritime cluster are characterized by
openness and information sharing
Our government and governmental bodies are supportive of the maritime industry

Results from the Maritime                Be More Innovative!
Innovation Center Survey         2 out of 3 respondents felt the maritime
sector in the state is lacking in terms of
All sectors surveyed indicated that the
innovative performance when compared
Center should focus on the following                   with other industries.
objectives (roughly equally):
Promote knowledge transfer.
Promote business incubation.
Promote workforce development.

Washington's Strategy for the Blue Economy | January 2019                                          43

Maritime Innovation Center
Survey ResultsClick to edit Master title
Takeaways from the Maritime Innovation Center survey

TOP FIVE              TOP FIVE BARRIERS
INCUBATOR SEVICES       TO MARITIME GROWTH
Survey respondents were asked to             Approximately 400 stakeholders were
assess a large range of incubator               asked to assess a large range of
services. The following are the top five          business and innovation challenges in
challenges they identified in order of            the maritime sector.
rating priority:
The list shows the top five identified
1.   Shared resources with research            challenges:
centres, testing facilities,
1.   Lack of public policy and incentives
universities, and private
support
companies
2.   Guidance and mentorship from             2.   Workforce talent, skills, and
business leaders/investors                      development
3.   Business support service provider
3.   Understanding
assistance (e.g., HR, legal, and
business/opportunities within the
marketing)
maritime sector
4.   Access to general equipment for
testing or fabrication of prototypes         4.   Access to investors and funders
5.   Classes/trainings for workforce             5.   Lack of R&D resources
and skills development
(Source: Maritime Alliance & ECONorthwest 2018)

The barriers to growth identified in the Maritime Innovation Center survey align well with
the Maritime Blue stakeholder feedback identifying stakeholder engagement and
awareness, lack of investment opportunities, regulations and standards, and workforce
skill gaps as sector-wide challenges.




Washington's Strategy for the Blue Economy | January 2019                                          44

Critical Issue: Blue GrowthClick to edit Master title
Growth in a Sustainable Blue Economy   more jobs that are meaningful, place-based,
and provide a high quality of life, which
The drive for sustainability is rewriting the         strengthens communities.
rules for all industries  and maritime is no
exception. The longevity and profitability of its     There are many examples demonstrating how
operators depend on a proactive approach to      companies can benefit from sustainable
sustainability. The nature of the industry is        practices. However, the full potential of
changing and there are many issues that could    sustainable business models will only be
bring unwelcome disruption, but there could       realized through a broad industry collaboration
also be opportunities for those companies that     involving all stakeholders in the entire value
are well prepared. This makes it all the more      chain. Going it alone will only ever get the
important to look at the market, regulatory        industry so far.
and technological challenges, and
opportunities of future scenarios for a growing     If we are to find answers to the challenges, we
and sustainable maritime future.                  will only do so as part of a much broader
dialogue that will have to take place between
The notion that "going green is good for           operators, regulators, and society at large.
business" has been discussed,                    Together, we must meet the challenges and
editorialized, and debated many times over.       work in a collaborative, strategic manner to
From large multinational corporations to           deliver transformative technology and
small entrepreneurs in developing countries,      solutions that will support a growing and
most can attest that reducing/eliminating         sustainable industry.
waste, providing meaningful work and wages,
cooperating with competitors,
aligning community values, and investing in
innovation have proven can be very profitable.
But it is risky to be a trailblazer, it often
requires significant capital investment and it is
challenging to gain trust from
community stakeholders.
If maritime companies are supported to adopt
a technology and innovation-based business
plan and economic model, they can make
investments and see their return on
sustainability investments increase as
technology innovation increases. This
acceleration takes place faster and more
effectively when it is in collaboration across
the sector. When businesses, public agencies,
and research and training institutions are
working together, identifying opportunities,
directing funding, and gaining social license
and public trust, the benefits occur faster.
The model above highlights how a growing
When this ecosystem begins to grow, it           maritime economy fosters a culture of innovation
attracts talent, recruits more investment, and     and sustainability. Each blade is needed to propel
businesses expand. This allows them to create    the industry forward.
Washington's Strategy for the Blue Economy | January 2019                                          45

Critical Issue: Addressing BiasClick to edit Master title
Addressing Bias and Working Towards Inclusion
Addressing gender, racial and socio-economic inequalities as a core objective and value
statement is often overlooked in economic development strategies. With a goal to accelerate
the Blue Economy For All, this strategy seeks to provide support and program
development that address bias in the maritime workplace and supports workforce training
opportunities for youth of color, low-income white youth, women and girls. For details,
please see Appendix C: Workforce Sustainability in the Washington Maritime Industry
.                                                   A maritime story and symbol that
genuinely and respectfully
acknowledge the history of tribal
entities and contributions of
women, people of color, and other
groups may give more
Washingtonians a sense of pride
in the maritime sector.
Tressa Arbow, University of Washington
School of Marine and Environmental Affairs
"As the Washington maritime industry embarks on its
strategic plan to become the most sustainable maritime
industry in the US by 2050, it will be crucial that
sustainability goals include providing equal opportunities
for different demographic groups in Washington to build
a career in the maritime sector. The creation and
retention of a diverse workforce is critical to the sector's
long-term sustainability. Research has demonstrated
that diverse workforces are not only more profitable
Photo courtesy: Sound Experience                but are also more productive and satisfying places to
work.
However, attempts to make the workforce look more diverse without addressing the reasons it
isn't will not be enough. Telling a maritime story that is recognizable and representative,
removing barriers to entry, and increasing retention are parallel imperatives that will require
dedicated leadership, funding, and the endorsement and commitment of Washington decisionmakers.
Furthermore, efforts to expand current initiatives or embark on new ones should
include input from a wide range of perspectives, including women, people of color,
tribal entities, managers, community members from throughout the state, and workers from
various stages of maritime career trajectories" (Arbow 2018).
Washington's Strategy for the Blue Economy | January 2019                                          46

Sector-Wide Challenges
from Stakeholder FeedbackClick to edit Master title
Washington State has a diverse range of maritime subsectors that have recently
gone through numerous developments. There are challenges that need to be
addressed that are specific to each subsector and some that are sector-wide.
To achieve the 2050 vision, it is critical to identify and overcome these universal barriers.
The challenges were initially identified through the subsector analysis and further refined
through workshops with the industry stakeholders. The workshops also helped identify
development pathways that formed strategic directions for cluster development.
Addressing the following 10 sector-wide challenges will be critical to the success of the
Maritime Blue strategy and each pathway to the 2050 vision:
1. Stakeholder expectations moving faster than industry
Public and consumer awareness of environmental and sustainability
challenges is growing, whether from the state's Deep Decarbonization
efforts, the continued decline in the Southern Resident Orca population or
the growing pressure on marine ecosystems in general. This sets
expectations which the sector struggles to meet in a fiercely competitive
setting.
2. Aging fleets (fishing, ferries, coastal trade)
Much of Washington State's fleet across fishing, ferries and coastal trade
consists of aging vessels. This presents both an operational and investment
challenge and an opportunity for renewal.
3. Lack of investment and funding availability
All sub-sectors suffer from a lack of sustainable funding mechanisms to
support the industry and limited access to sources of capital.
4. Local regulation and standards impacting competitiveness
Strict permitting processes and high environmental standards slow planning
and development and lead to increased costs in development and operation,
reducing Washington's competitiveness.
5. Competition for industrial lands and infrastructure
Waterfront land is highly prized for urban development, plays a critical role
in the marine ecosystem and can have significant impact on local
communities.
6. High cost of doing business
High labor costs and aging infrastructure combine to make Washington a
less attractive place for doing business than other maritime regions.
7. An aging workforce is not being replaced
A proportion of the current workforce is approaching retirement while not
enough youth are getting involved in the industry.

Washington's Strategy for the Blue Economy | January 2019                                          47

Sector-Wide Challenges
from Stakeholder FeedbackClick to edit Master title
8. Skill gap between current and future workforce needs
With the current workforce, employers are faced with a growing talent
crisis that will have serious implications when the current workforce retires
and as the nature of work evolves.
9. Low awareness and societal engagement in the maritime industry
An important factor contributing to the lack of participation from the
broader community. The next generation has particularly low awareness.
10. Lack of collaboration and coordination across the industry
The various challenges facing the sector are too large for any one part of it
or group to address alone.

By pursuing clearly defined initiatives, each Maritime Blue pathway presents an
opportunity to address these structural challenges for the sector and secure a
thriving, competitive and sustainable future for the industry.










DNV GL photo

Washington's Strategy for the Blue Economy | January 2019                                          48

Turning Challenges into
OpportunitiesClick to edit Master title
Feedback from both stakeholder surveys and the pathway workshops all identify similar
challenges and barriers for the growth of Washington maritime industry. Meeting these
challenges and overcoming these barriers will present the sector with valuable
opportunities for sustainable development. The Washington Maritime Blue Cluster will
play an integral role in this development and will be essential in ensuring long term
sustainable performance and competitiveness of Washington in the industry.
Aligning with stakeholder expectations
Through public outreach and engaging stakeholders in sector initiatives, the sector will be
better able to understand, anticipate and meet public and consumer expectations for
environmental and societal benefits from sustainable development.

Fleet modernization
Modernization of Washington's fleet with low carbon technologies and low impact vessel
designs will help the sector to establish a competitive edge in sustainable vessel
construction and develop an ecosystem for innovation.

Develop new sources of investment and funding
Strategic partnerships need to be established to drive the commercialization of emerging
blue technologies. The industry will need access to financing for all stages, from earlystage
start capital to financing newbuilds and large infrastructure investments.

Regulatory predictability
Establishing a predictable regulatory environment while maintaining environmental, safety,
and social standards will improve competitiveness for the sector.


Securing industrial lands
A broad, strategic approach to infrastructure planning will secure sufficient land for the
industry's needs while holistically managing environmental and societal impacts.


Washington's Strategy for the Blue Economy | January 2019                                          49

Turning Challenges intoClick to edit Master title
Opportunities
Moving from high cost to high value
Nurturing a high skilled, high value workforce and securing sustainable investment in
infrastructure will present a compelling benefit case and enable the sector to capitalize on
Washington's other advantages.


An inclusive and sustainable workforce pipeline
Working waterfronts and workforce development pathways will manage the future careers
of maritime workforce.


A skills strategy to meet future workforce needs
A targeted skills strategy will ensure not only a sustainable supply of appropriate talent,
but enable the industry to manage the transition to new operating models in a just and fair
manner.

Raising awareness and building a societal stake
Community outreach and engagement in all areas of society will be critical to align the
development of industry to the expectations and priorities of the public and ensure that all
of Washington State has a stake in its future success.


Industry collaboration and coordination
A well-coordinated approach to policy-setting, the adoption of standards and development
of funding mechanisms will ensure a level playing field for fair competition. Promoting
collaboration on issues of common interest across government, industry and academia will
leverage greater investment in innovation and accelerate technological development.



Washington's Strategy for the Blue Economy | January 2019                                          50

Click to edit Master title
Washington Maritime
Blue Strategy




Washington's Strategy for the Blue Economy | January 2019Washington's Strategy for the Blue Economy | January 2019                                          51

Values to Ensure Success ofClick to edit Master title
Washington's Blue Economy
Washington Maritime Blue is committed to the development of
maritime business, technology, and practices that promote a
sustainable future contributing to economic growth, ecological
health, and thriving communities.
BLUE VALUES
Growing Economy: We will build a strong business climate,
attract talent and investment and develop an efficient
regulatory structure that supports innovation and
infrastructure.
We collaborate for growth to drive operational efficiency in
our maritime companies.
We use strategic partnerships to develop resources and
infrastructure.
We promote an efficient and goal-based approach to
regulatory implementation.
Healthy Ecosystems: We are committed to restoring and
sustaining the health of our coastal and marine ecosystems.
We drive the adoption of best management practices or
standards by addressing barriers to their adoption and
implementing incentives.
We leverage the knowledge of our research institutions in
renewable energy and ocean research.
We apply an environmental ethic to development and seek
to minimize impact.
Resilient Communities: We will apply a social justice lens to all our efforts to ensure
thriving and resilient communities will be engaged in the sustainable development of the
maritime sector.
We proactively engage with our stakeholders to achieve social license and anticipate and
address unintended consequences of development and sustainability initiatives
(supporting holistic decision making).
We reduce adverse impacts of economic development on vulnerable communities, while
supporting climate change and natural disaster resiliency.
We are committed to a diverse, inclusive and representative maritime industry with
increasing living-wage jobs.

Washington's Strategy for the Blue Economy | January 2019                                          52

Washington Maritime BlueClick to edit Master title
Strategy Framework
Vision: Washington State will be home to a world-class, thriving, and sustainable
maritime industry by 2050.
Mission: The Washington Maritime Blue Strategy will accelerate the Blue Economy
as a leader in maritime clean tech innovation and best management practices that
will support a growing maritime economy in all sectors with increasing living-wage
jobs, a healthy environment, and resilient communities. This will be accomplished
through partnership with all stakeholders; including public entities, maritime
business, academic and research institutions, ports, labor groups, and community
organizations.
Strategy Framework: The strategy framework was built from the ground up leveraging
direct stakeholder input and stewardship from the Advisory Council.
Strategic Goals are the high level, aspirational goals established to achieve the Vision of
the Plan
Development Pathways are the strategic directions for cluster development. They are
measurable efforts based on the region's expertise, needs and opportunities.
Initiatives are specific recommendations for policies, projects and milestones that need
to be implemented to reach the vision.
Action Areas are the tools used to achieve the strategic plan.
Values: Underlying all we do, the three values of the Blue Economy guide our process to
maintain balance in in defining the course for achieving the vision.
Thriving,           Global
Strategic Goals                            Growing     21st Century    World-Class
Low Carbon      Innovation
Gateways       Workforce        Cluster
Industry           Hub
What success will look like

Development
Pathways
How we will achieve
the goals                                                                Working   Waterfronts

Initiatives      Projects & Milestones           Policy Recommendations
Course setting for         In progress, short term (pre-2025),
Regulatory, financial and policy priorities
Implementation               medium term (pre-2035)
Action Areas      R&D,                   Best Practices,                Communications,
Education &                        Policy, Regulation,
What tools we use       Demonstration,                           Standards, &                               Outreach, &
Training                                & Finance
Incubation                          Certifications                          Collaboration
Values                                                  Engaged & Resilient
Growing BLUE Economy       Healthy Ecosystems
What guides our                                                                                    Communities
actions
Washington's Strategy for the Blue Economy | January 2019                                          53

Strategy is a Combination of
Effort from All StakeholdersClick to edit Master title
The work that has been undertaken since the Governor launched the Maritime Blue
initiative and selected the Maritime Advisory Council back in December 2017, has
been a broad concerted effort engaging a number of maritime sub-sectors and
communities.
Several workgroups, task force meetings and steering committee meetings have
taken place, in addition to outreach via online surveys across the different
communities, companies and organizations that are part of the industry.
It has been important to ensure that the full breadth of the industry and the parties
that are affected have been given the opportunity to take part in the development of
the strategy framework, and that the findings are 'by and from' the stakeholders
themselves.

Washington Maritime
Blue Strategy Task
Force
January 20, 2018

Task Force & Advisory Council
April 24 & 26, 2018

Pathway Workgroup
Meetings
June 22-28, July 18, 2018

Governor's Maritime Innovation
Advisory Council & Launch Event
Joint Session Co-
December 12, 2017                                                  Chairs & Steering
Committee
October 19, 2018





Washington's Strategy for the Blue Economy | January 2019                                          54

Pathways Addressing
Sector-Wide ChallengesClick to edit Master title
The Maritime Blue strategy will address
each of the identified sector-wide                       PATHWAYS
challenges through the five Maritime Blue
pathways as shown in the figure below.
The extent to which these challenges are
managed or mitigated will be a key test of all
initiatives and projects to meet the Maritime
Blue goals and achieve the vision of a worldclass
, thriving, and sustainable maritime               Deep Decarbonization      Blue Innovation
industry by 2050.                                                Working Waterfronts      Workforce Development      Cluster Coordination

1. Stakeholder Engagement                           

2. Aging Fleet                     

3. Lack of Investment                                         

4. Regulations & Standards                                       
CHALLENGES           5. Land & Infrastructure                                
6. Cost of doing business                                  

7. Aging Workforce                               

8. Skill Gap                                             

9. Low awareness                                     

10. Lack of collaboration                                             

Challenge Addressed

Washington's Strategy for the Blue Economy | January 2019                                          55

Strategic Direction:
Thriving, Low-Carbon IndustryClick to edit Master title
Strategic Goal: A Thriving, Low-Carbon Industry
Establish a decarbonized maritime industry that continues to
grow and maintain resiliency by taking advantage of an
ecosystem of innovations for cleaner air and efficient, costsaving
operations.
Pathway: Deep Decarbonization
Accelerate the transition of Washington's maritime industry to a low-carbon future
pursuing technological innovations, infrastructure, and incentives to enable the
transition of local, coastal, and international maritime activity.

Initiative 1:                Initiative 2:                 Initiative 3:
Low-carbon maritime      Low carbon shore-     Strategies for emissions
technologies on board      side infrastructure           reductions

Demonstration Projects

Establish case                                                                   Leverage
studies to                                                                       existing
demonstrate                Strategic                                 collaborations
Leverage real
return on                 infrastructure                                    to establish
time emissions
Electrification of       investment &              planning to support                                        regional
tracking tools to
State & regional       reduction in             investments in low-                                agreements for
ID opportunities
ferries.             emissions for               carbon energy and                                         common
to improve
transition to              fuel infrastructure.                                      emissions
performance.
electrification,                                                                         targets on the
LNG, renewable                                                        West Coast and
fuels, & fuel                                                                           beyond.
cells.




Washington's Strategy for the Blue Economy | January 2019                                          56

Policy RecommendationsClick to edit Master title
Thriving,
Low Carbon
Industry

WA State Policy Recommendations
Secure funding to support  Adopt policies and          Ensure public funds
vessels & shore side        incentives to create market  directed towards
infrastructure for electric    conditions that reduce       clean energy and
operations and low-carbon  carbon (and other)         carbon mitigation
fuels.                         emissions from maritime     are available for
applications.                 maritime, clean
technology
applications.
Detailed Policy Statements
Secure funding for             Adopt a clean fuel standard
electrification of                  (and credit program) to
state/county/regional/privat    incentivize the development
e ferries and passenger        and usage of alternative
services.                        fuels.

Secure continued and
increased funding for the
WA Clean Energy Fund and
ensure inclusion of maritime
innovation.
Secure an array of
incentives and funding
mechanisms to drive earlystage
innovative clean fuel
and electrification projects
for ports.
Bond funding, cap and
trade revenues, grants,
loans, and other
financing mechanism for
capital investments.

Washington's Strategy for the Blue Economy | January 2019                                          57

Strategic Direction:Click to edit Master title
Global Innovation Hub
Strategic Goal: Global Innovation Hub
Establish Washington State as a global maritime technology
innovation hub
Pathway: Blue Innovation
Drive the commercialization of emerging blue technologies in Washington State by
through strategic partnerships.

Initiative 2: Low-Impact Vessel Design &
Initiative 1: Digital Transformation                       Advanced Manufacturing

1.1 Digitally assisted       1.2 Maritime data
operations                science
Demonstration Projects:
Establish maritime      Establish shared data         Joint Industry
Create model for
innovation validation          platform and               Project to
advanced manufacturing
zone for R&D, testing,     standardized model         implement low
techniques and materials
& evaluation of safety       to enable pilot for           impact vessel
in shipbuilding while
& performance of          blue-ware and          design for NOAA
increasing jobs and
digitally-assisted              blockchain             Marine Sanctuary
training programs.
operations.              applications.               Program.

Initiative 3: Modernization of Fishing,           Initiative 4: Collaborative R&D, Incubation, &
Seafood, & Ocean Innovation                  Commercialization for Innovation &
Demonstration Projects                          Demonstration Projects

Demonstration Projects:
Development of new       Design & build a
Increase in-                                   gear and marketing       Maritime Innovation
PNNL's
state seafood                                strategies for harvest    Center to house cluster
Macroalgal
processing with                               of hatchery salmon in        programing, co-
NOMAD project,
full utilization                                        the lower Columbia         working space and
demonstration
technology.                                    for harvest of                support
phase.
hatchery fish and        commercialization of
release of wild fish.            technology.


Washington's Strategy for the Blue Economy | January 2019                                          58

Policy RecommendationsClick to edit Master title

Global
Innovation
Hub                                                      Blue Innovation


WA State Policy Recommendations
Develop incentives and finance mechanisms for maritime innovation in
shipbuilding & manufacturing, including vessel replacement for ferries,
modernizing fishing fleet, noise reduction, and water quality.
Designate a maritime innovation validation zone to perform R&D, testing, and
evaluation of safety and performance for digitally-assisted operations.

Fund and develop incubation, R&D, and commercialization platforms for
maritime innovation facilities and research centers.

Detailed Policy Statements

Hybrid finance model: Leverage state money for overcoming challenges,
attract private capital with scale.
Support state agency efforts in adopting innovation and technology based
economic development activity for recruitment, retention, expansion, rural
economic development, and small business export assistance.
Ensure public funds directed towards clean energy and carbon mitigation are
available for maritime clean technology applications.



Washington's Strategy for the Blue Economy | January 2019                                          59

Strategic Direction:
Growing GatewaysClick to edit Master title
Strategic Goal: Growing Gateways
Washington will be a premier region for imports, exports and maritime
industrial activity with a reputation for safety, transparency, efficiency,
and sustainability.
Pathway: Working Waterfronts
Washington will lead the nation in efficient, clean, and safe maritime practices
across all maritime communities and sectors of the industry.

Initiative 2: Infrastructure
Initiative 1: Smart Ports
and Regulatory Strategy

2.1 Long-term
1.3 Attracting and
maritime
1.1 Digitalized      1.2 Clean & efficient       Training the
infrastructure &       2.2 Regulatory predictability & land use
processes            operations         Future Workforce
transportation
of our ports
strategy
Demonstration Projects:
Work with
Support                                                                                            Regulatory bodies
Modernization of                            Create holistic long-        regulatory
development of                                                                                          to leverage agreed
port infrastructure       Host future of        term infrastructure     agencies to create
common platform,                                                                                            upon
across the state           maritime           and transportation       pilot permitting
standards for data                                                                                                 certifications, best
including          workforce summit      strategy to plan for        process for
sharing across                                                                                                    practices and
electrification of          addressing           future needs and       innovation that
terminals &                                                                                                     standards to
Northwest Seaport     growing needs of         technology        meets sustainable
provide incentives                                                                                                   create incentive-
Alliance cargo           our ports.           developments for          economic
to encourage                                                                                             based regulatory
terminals.                                   freight mobility         development
participation.                                                                                                           scheme.
criteria.


Initiative 3: Blue Gateway

3.2 Maritime sector
3.1 Attracting business activity                                           3.3 Increase eco-tourism &
stewardship & Corporate
through sustainability                                                    recreational boating
Social Responsibility
Demonstration Projects:

Develop an optimization tool       Maritime Non-governmental &
for maritime applications to              Community Based               Build up shore power/
gauge sustainability indicators       Organization partnerships for        wastewater infrastructure
like ROI, jobs & emissions            conservation supporting           to reduce emissions and
impacts (for vessels,            Corporate Social Responsibly                 impact.
infrastructure, operations).               and social licence

Washington's Strategy for the Blue Economy | January 2019                                          60

Policy RecommendationsClick to edit Master title

Growing                                                                 Working Waterfronts
Gateways

WA State Policy Recommendations
Investment in critical     Align and simplify the            Develop regional
Port and maritime        regulatory and permitting       collaborations &
infrastructure to          process to improve, speed,       partnerships
maintain and increase    efficiency and predictability in   that promote
modernization and       shoreside maintenance,         competitiveness and
competitiveness.         remediation and construction.   reduce ecological impact.
Detailed Policy Statements
Secure funding for              Work with regulatory agencies to        Support inclusion of West
infrastructure & digitalization    create pilot permitting process for blue   Coast/Asia air emission
development for port terminal   innovation projects that meet           targets/incentives.
operations & freight mobility.    sustainable economic development
criteria.
Secure funding to implement   Secure regulatory predictability and     Support participation in
goals of Puget Sound           transparency for maritime              collaborative approaches to
Partnership recommendations   infrastructure development.            align on ecological goals
and other
(global, regional, local).
mitigation/conservation
priorities.
Secure port & state incentives   Promote authority within Office of       Coordinate with other ports in
for international and coastwise  Regulatory Innovation & Assistance      the region (West Coast) to
ship owners using established   (ORIA) to improve permitting timelines  increase use of incentives to
best practices and voluntary    and efficiency.
decrease emissions and
certifications.
impacts (including noise).
Secure state funding for         Secure maritime industrial lands
broadband initiatives to ensure  through integrated planning for
cities and communities have    industrial zoning & economic
access to a vibrant broadband   development (Growth Management Act
or fiber system.                 & Shoreline Master planning). Use
"Industrial Sanctuary" & "Essential
Public Facilities" designations.
WA State to continue to push
Congress to address Harbor
Maintenance Tax imbalance.
Washington's Strategy for the Blue Economy | January 2019                                          61

Strategic Direction:Click to edit Master title
21st Century Workforce
Strategic Goal: 21st Century Workforce
A technologically adaptable and inclusive workforce with a sustained
stream of high-caliber entrants will be developed
Pathway: Workforce Development
Next generation of an inclusive and diverse maritime workforce with technological
expertise and access to clean, healthy, living-wage jobs.

Initiative 1: Career pipeline, pathways, & connections
Demonstration Projects:

1.1 Skill demand           1.2 Mapping career
forecasting & strategy       pathways in & through                 1.3 Career-connected learning
for workforce pipeline             the industry

Skill demand             Launch marketing           Leverage existing           Youth Maritime
forecasting and          campaign for maritime             registered             Collaborative housed
creation of a forward-          careers leveraging        apprenticeship programs      within Maritime Blue
looking strategy          integrated website with        to increase training         Cluster & sustained
framework that           mapped pathways &         across the maritime          with funding to
consolidates efforts to              forecasts.                    supply chain            expand opportunities.
date.


Initiative 2: Inclusivity, support, & outreach
Demonstration Projects:
2.1 Create broader
2.2 Outreach and
opportunities for equitable
engagement
& inclusive participation

Develop an equity            Host a Maritime Blue
framework for maritime       Forum between workforce
employers & training         organizations, industry, &
providers with Community       ambassadors for under-
Based Organizations.               represented
communities.

Washington's Strategy for the Blue Economy | January 2019                                          62

Policy RecommendationsClick to edit Master title
21st
Century
Workforce

WA State Policy Recommendations
Dedicate funding for
Support initiatives for state
maritime specific training,
wide workforce             Adopt recommendations of
education, and workforce
development that           Career Connected
development at the K-12,
encourage alignment and    Washington and regional
community college and 4-
efficiency of programs       efforts to define and
year universities; including
according to community     support maritime career
expansion of registered
and industry sector based    pipeline development.
apprenticeships in youth
priorities.
programs.
Detailed Policy Statements
Leverage existing registered        Align with initiatives from the State Board for Community
apprenticeship programs to        and Technical College (SBCTC), Office of Superintendent of
increase training across the         Public Instruction (OSPI),Workforce Training Board (WTB), Careermaritime
supply chain.
Connect Washington Task Force, and Workforce Development Council
(WDC).
Secure change in RCW to include   Secure funding according to the Workforce Training Board
Port investments in workforce      (WTB) proposal for incumbent worker training.
development.

Support federal designation and    Development of
funding for Domestic Maritime      training certification that is
Center of Excellence for Maritime   more consistent across the state
and preferably across
Workforce Training and Education.
multiple states
Secure Washington State
University funding for marine
electrical engineering program.



Washington's Strategy for the Blue Economy | January 2019                                          63

Washington State
Policy RecommendationsClick to edit Master title
For the Maritime Blue Strategy, the key support from local, state, and federal governments
is their capacity to convene stakeholders and to create and regulate a policy regime that
is supportive of the vision and goals of the Blue Strategy  particularly when it impacts
the rate at which industry can accelerate innovation and living-wage job creation.
Combined Policy Recommendations for Blue Goals
Adopt policies and incentives
Thriving,       Secure funding to develop                                       Ensure public funds for clean
to create market conditions
Low Carbon     and support vessels & shore                               energy and carbon mitigation
that reduce carbon (and
Industry       side infrastructure for                                        are directed towards
other) emissions from
electric operations and                                           maritime, clean technology
maritime applications.
cleaner low-carbon fuels.                                       applications.
Develop incentives & finance
mechanisms for maritime      Designate a maritime          Fund and develop incubation,
Global        innovation in shipbuilding &    innovation validation zone to   R&D and commercialization
Innovation      manufacturing, including       perform R&D, testing &        platforms for maritime
Hub       vessel replacement for       evaluation of safety and      innovation facilities and
ferries, modernizing fishing     operational performance for     research centers.
fleet, noise reduction, &         digitally assisted operations.
water quality.
Align and simplify the
Invest in critical Port and                                            Develop Regional
regulatory and permitting
Growing       maritime infrastructure to                                 collaborations and
process to improve, speed,
maintain and increase                                          partnerships that promote
Gateways                                efficiency and predictability
modernization and                                           competitiveness and
in maritime infrastructure
competitiveness.                                              reduce ecological impact.
projects.
Dedicate funding for            Support initiatives for
maritime specific training,       statewide workforce             Adopt recommendations of
21st Century      education and workforce        development that encourage    Career Connect Washington
Workforce      development, including        alignment and efficiency of     and regional efforts to define
expansion of registered         programs according to          and support maritime career
apprenticeships and youth      community and industry        pipeline development.
programs.                   sector-based priorities.
These recommendations are intended to be complimentary and aligned to parallel or
connected policy initiatives when they are supportive of the Blue Strategy Goals. However,
please note that even if a particular policy or aspect of a recommendation may be
highlighted in the Blue Strategy, it is not necessarily an endorsement of an entire initiative.
Other initiatives that share at least some alignment include:
Governor Inslee's Clean Energy Future for Washington State
Washington Maritime Federation 2019 Legislative Priorities
Washington State Ferries 2019 Long Range Plan
Puget Sound Partnership Agenda
Northwest Ports Clean Air Strategy
Southern Resident Killer Whale Task Force Recommendations
Career Connect Washington Policy Agenda
Other State Agency policy and funding requests
Local municipality and ports policy agendas
Washington's Strategy for the Blue Economy | January 2019                                          64

Click to edit Master titleStrategic Direction:World-Class Cluster
Strategic Goal: World-Class Cluster
An organized cluster of competitive companies and partners will
continuously drive sustainable economic development for the maritime
industry
Pathway: Cluster Coordination
A formal Cluster Organization will drive implementation of the WA Maritime Blue
strategy & collaboration to ensure a strong maritime industry founded on
competitive maritime companies and an attractive business environment.
Blue Focus                Blue Forum              Blue Forward       Blue Force

Implement a
communications and                                              Platform for         Cooperation to
marketing campaign                                            collaborative R&D         enable the
plan in conjunction       Networking and strengthening of the        projects, Joint         workforce of the
with partner            knowledge base: Host workshops,        Industry Projects        future through
organizations, to                provide market data,              (JIP), and teaming        coordination,
raise visibility &                                                                for grant             funding & public
connect with                                                     opportunities.            forums.
opportunities.

Incubation to drive      Scholarships for
early stage             workforce
Establish website       Cooperation with                              innovation to        development. Job
to serve as a focal         authorities to          Cross sector        commercialization.       board. Fostering
point for              create a better       engagement and        Guidance and            internship &
information about        framework to       coordination with       mentoring for         apprenticeships.
& for WA's Blue          develop new         other clusters          start-ups &          Mentor-mentee
Economy.           technology.                         businesses looking      relationships.
to expand into the      Hands on learning
Blue economy.           for K-12.


Blue Finance                     Blue Facility           Blue Federation

Conduit for public and private funding                  The Maritime
opportunities. Attract investors and connect            Innovation Center
the dots on the value proposition for                houses incubation,             Partnered with the
innovators.                             acceleration, co-             Washington Maritime
working, and public           Federation to ensure
meeting space. It acts         continued support and
as a hub to the many
Establish Maritime Innovation Fund for capital                                             coordination of
spokes in rural
investment in innovation-based startups with a                                         industry priorities.
maritime communities
potential for high growth and job creation              across the state.

Washington's Strategy for the Blue Economy | January 2019                                          65

Maritime Blue:
Charting a Course for 2050Click to edit Master title







Washington's Strategy for the Blue Economy | January 2019                                          66

Maritime Blue
Click to edit Master titleKey Demonstration Projects
Electrification of state and regional ferries to
reduce air & noise emissions & establish competitive
edge in sustainable vessel design & manufacturing:
Conversion of 2 existing state ferries
WSF to construct 2 new electric ferries
Planned Skagit County all-electric ferry
High-speed passenger ferries across the region

Design and build a Maritime Innovation Center
to house cluster programing, co-working
space, incubation & support commercialization
of technology. The Center will serve as a focal point
for the blue economy and support early stage
companies through hub-and-spoke model
of collaboration across the entire maritime sector
in the state.

Work with regulatory agencies to create a process for Blue
innovation projects that meet sustainable economic
development criteria .This could include establishment of a
maritime innovation validation zone; and a designated inwater
location with streamlined permitting to allow for
research, demonstration, testing, and evaluation of new
technologies.

Youth Maritime Collaborative is
committed to guiding today's youth
toward maritime-related careers. With a
focus on reaching underrepresented
communities through experiential events
and high school internships, the
Collaborative works to connect companies
with the next generation of workers.

An independent WA Maritime Blue Cluster organization
is launching and will be charged with implementation of
the strategy through an alliance of maritime
businesses, public entities, community organizations,
research and training institutions that are ready to
proactively accelerate innovation and growth.

Washington's Strategy for the Blue Economy | January 2019                                          67

Click to edit Master titleStrategic Alignment
with Global Goals
Sustainable Development Goals (SDGs):
The United Nations (UN) has identified 18 sustainability goals that are a call for
action by all countries to promote prosperity while protecting the planet. They
recognize that ending poverty must go hand-in-hand with strategies that build
economic growth and address a range of social needs including education, health,
social protection, and job opportunities, while tackling climate change and
environmental protection.
In a disruptive, rapidly-evolving environment for industry, the SDGs provide a clear
framework to structure sustainability efforts for the public and private sectors and
for civil society. As a response to some of the biggest challenges facing modern
society, the SDGs can present valuable opportunities for innovation and growth in
new markets.
All of these challenges present opportunities for public and private partnerships to develop
innovation to address the needs. The maritime industry has a critical role to play in meeting
many of the SDGs in terms of facilitating of sustainable economic growth, delivering benefit to
society and safeguarding the marine ecosystem. The Washington Maritime Blue Strategy has
been developed to align with the SDGs to ensure innovations developed in Washington can
address global challenges, and lead to competitive success.
Alignment of Washington Maritime Blue goals and 5 SDGs:
An energy transition to a Thriving, Low Carbon Industry will deliver real climate action.
Creating a Global Innovation Hub will bring benefits to industry, innovation and
infrastructure.
Making Growing Gateways will secure decent work and economic growth
Developing a 21st Century Workforce will create a demand for quality education.
The course towards these goals will be steered by a World-Class Cluster in partnership for
the goals.



Thriving,           Global
21st Century      World-Class
Blue Goals                             Growing
Low Carbon      Innovation
Gateways       Workforce        Cluster
Industry           Hub

Values                                                  Engaged & Resilient
Growing BLUE Economy       Healthy Ecosystems
What guides our                                                                                    Communities
actions

Washington's Strategy for the Blue Economy | January 2019                                          68

Click to edit Master title
Project Overview




Washington's Strategy for the Blue Economy | January 2019Washington's Strategy for the Blue Economy | January 2019                                          69

Governor's MaritimeClick to edit Master title
Innovation Advisory Council
Governor Jay Inslee announced his Maritime Innovation Advisory Council on
December 17, 2017. In his letter endorsing the Blue initiative, he stated the following:
"This Washington Maritime Blue: 2050 Vision for Accelerating Innovation project will leverage
the strong connections created through our Sector Lead program to develop a diverse
workforce, stronger businesses and new technology to meet the challenges ahead. Our goal is
to build a green, efficient and sustainable maritime sector that will serve as a model for the rest
of the country."
Co-Chairs
Rep. Gael Tarleton, WA State Legislature
Frank Foti, CEO Vigor
Dennis McLerran, Cascadia Law Group, Former EPA Administrator Region 10
Members
Sen. Ann Rivers, WA State Legislature            Director Eleni Papadakis, Workforce Training
Chairman Leonard Forsman, Suquamish Tribal    Board
Council                                          John Wolfe, Northwest Seaport Alliance
Commissioner Fred Felleman, Port of Seattle      Paul Stevens, Saltchuk
Mayor Laurie Gere, City of Anacortes             Joe Ritzman, SSA Marine
Secretary Roger Millar, WSDOT                  Stefanie Moreland, Trident Seafoods
Director Brian Bonlender, Dept. of Commerce     Vince O'Halloran, Maritime Trades / AFL-CIO
Director Sheida Sahandy, Puget Sound           Bob Miyamoto, UW Applied Physics Lab
Partnership                                      John Dwyer, USCG Sector Puget Sound
Director Craig Kenworthy, PS Clean Air Agency   Bruce Anderson, Starcrest Consulting
Barbara "b.g." Nabors-Glass, Seattle Goodwill
Stakeholder Process Overview
Advisory Council         Co-Chairs   Engagement of Other Organizations:
Industry
WA Maritime Federation
Maritime blue               Steering
Port and Marine Trade Communities
Task Force                 Committee
Environmental NGOs
Government Agencies &
Pathw      Pathw                municipalities
Pathway       Pathway
Workgroupay
Workforce and Training System
Workgroupay
Trade & Labor
Tribes

Facilitation, Coordination, and Communication: WA Department of Commerce & DNV GL
Washington's Strategy for the Blue Economy | January 2019                                          70

Washington Maritime BlueClick to edit Master title
Initiative Overview
Stakeholder Engagement and Staffing
Task Force Steering Committee
Ann Avary, Center of Excellence for Marine Manufacturing and Technology
Eleanor Kirtley, Green Marine
Nan McKay, Northwest Straits Commission
Steve Sewell, Washington Maritime Federation
Andy Stewart, University of Washington  Applied Physics Lab
The Task Force and Pathway Workgroups were supported by hundreds of stakeholders from
WA State and beyond. While the list is too extensive to include, the strategy would not have
been possible without the contributions from all of the participants.
Department of Commerce Staff
Joshua Berger, Governor's Maritime Sector Lead
Sarah Lee, Project Director  Industry Sector Development Program
Key DNV GL Staff Support
Jennifer States, Senior Consultant and Business Development Manager  Energy Advisory
Simon Mockler, Head of Section - Maritime Advisory
Anders Mikkelsen, Business Development Director  Maritime
Initiative Overview
Strategy &        Cluster       Next Steps:
Stakeholder
Pathway     Benchmarking    Supporting
Facilitation
Development     & Launch    Demo Projects

Advisory            ID key trends,                                 WA State
Global
Council, Task           challenges,                                      ferries
benchmarking
Force,            competitive edge                                electrification
workgroup
meetings
ID funding &
Feedback                               Data-sharing
launch
consolidation                                    platforms
organization

Stakeholder
Surveys           Policy & project           Cluster            Joint industry
recommendations      implementation        projects (JIP)


Washington's Strategy for the Blue Economy | January 2019                                          71

Maritime Blue
Strategy TimelineClick to edit Master title
The Maritime Blue strategy launched in December 2017 and has completed four
primary phases prior to report delivery in January 2019, as illustrated in the figure
below.
It is important to note that the Advisory Council and Task Force has been participating in
meetings since December 2017 and throughout the entire strategy process to support the
realization of this strategy.
In January 2019, the Governor's Innovation Advisory Council will deliver the final strategy
report to Governor Inslee at a roll-out event. At the same time, the Maritime Blue Cluster
Organization will officially launch and begin implementing the strategy and demonstration
projects. In April 2019, the cluster plans to host a Blue Forum event for knowledge sharing
and networking.

Strategy Development Timeline and Stakeholder Meetings: Dec. 2017-May 2019
Dec                                             April -
2017                                             July
Phase 2:                           2017           Phase 4:
Public Kickoff                 Draft Strategy           Steering                     Implement
Framework                                  Roadmap
Task Force                                          Committee
Meeting                Stakeholder              Working               Final
Survey                    Group                 Roadmap
Advisory                   Sessions                strategy
Phase 1:           Council & Task                   Phase 3:
Project            Force                             Pathway                         Aug -
Launch                          Jan          Evaluation                     Dec
2018                                         2018

Dec                                              Dec
2018            Roll-Out                         2019        Blue Forum
Event
Implement
Strategy &
Launch Maritime                                     Marketing Events
Projects
Blue Cluster                                             Knowledge-Sharing
Organization                                           Events
Maritime
Final Report                                       Blue Cluster
Delivery                                                                             April
Jan         Organization                         2019 -
2019
beyond




Washington's Strategy for the Blue Economy | January 2019                                          72

Cluster OrganizationClick to edit Master title
Cluster organizations are truly public-private
partnerships. The public-private partnership
status is also underlined by the fact that typically            Public-private partnerships
40% of funding comes from private sector with
60% from contribution from the public. Having                     Staff size
formal membership is strongly associated with
financial sustainability and improved                           Financial sustainability
collaboration among firms.
Intense networking & bottom-
Cluster initiatives with large staffs perform better                  up cooperation
in every aspect, both internally and externally.
Number of initiatives
Having a dedicated cluster website is strongly
associated with many performance measures.                 Dedicated Website
Cluster initiatives with a website perform better
in terms of innovation, competitiveness, meeting           Online collaboration platform
(e.g., one tested in EU)
deadlines and goals, being financially sustainable
and attracting new members than the very few
that do not have a website. They are also better
at improving collaboration with other clusters and
global markets.
Key Observations
Cluster organizations globally are established with different structures, forms, sizes and
follow various set of priorities; and therefore, it is not feasible to provide a universal
definition that will be common to each cluster organization. In some occasions, trade/sector
associations act as a form of cluster organization that connect different stakeholders
together under one umbrella in order to archive their common objectives; it's also
recognized that formation of highly successful cluster organizations can be done as a result
of government induced programs (e.g. NCE in Norway).
The EU further describes cluster organizations as "structures or organized groups of
independent parties (such as innovative start-ups, small, medium and large enterprises, as
well as research and knowledge dissemination organizations, non-for-profit organizations
and other related economic actors) designed to stimulate innovative activity by promoting
sharing of facilities and exchange of knowledge and expertise and by contributing
effectively to knowledge transfer, networking, information dissemination and collaboration
among the undertakings and other organizations in the cluster" [source: ESCA].
It has become evident that the implementation of a cluster organization is needed to
support accelerated development and strengthening of the maritime industry in WA. This is
further elaborated in the following pages.


Washington's Strategy for the Blue Economy | January 2019                                          73

Washington Maritime
Blue Cluster OrganizationClick to edit Master title
Key to accomplishing the WA Maritime Blue vision is a cluster organization that
develops and supports maritime business development, technology innovation and best
practices promoting a sustainable future and contributing to the values of economic
growth, ecological health, and thriving communities.
As an organized cluster of partners, the WA Maritime Blue Cluster will continuously drive
sustainable economic development for the maritime industry to:
Implement the goals of the Washington Maritime Blue Strategy for a Blue Economy.
Develop into a competitive and internationally-ranked maritime cluster.
Create shared ownership for the industry founded on economic, environmental and
social added-value.
Leverage and optimize collaboration within the industry and build links across
adjacent industries and clusters.
Lead in public and private investments and partnerships.

Tours, Global Outreach,                               WA State
and Cluster to Cluster                                 Delegation
Visit to
Engagement                                  Norway,
September
Tour of WA
Norway                                    17-21, 2018
State Ferry
Delegation
planned for
Visit to WA
hybrid electric
State, May 3-
conversion,
4, 2018
Tour of        May 3, 2018
"Center for
Urban
Waters," April
Tour of new       24, 2018
cold storage &
processing
facility for
Trident
Seafoods,
April 22, 2018




Washington's Strategy for the Blue Economy | January 2019                                          74

Washington Maritime
Blue Cluster OrganizationClick to edit Master title
Operating as an independent, non-profit cluster organization , this strategic alliance will
implement the following strategic action areas:
Blue Focus: Acting as a communication and marketing hub
Blue Forum: Hosting events to broaden the knowledge base and connect resources
Blue Forward: Facilitate R&D and Demonstration Projects, impact and market analysis
Blue Force: Connecting employers to workforce development and training opportunities
Blue Finance: Develop Maritime Innovation Fund & connections to financial resources
Blue Facility: Management of the Maritime Innovation Center, incubation and
acceleration services
Specifically, industry members and organizational partners will have access to:
Knowledge sharing events
Research centers and institutions
Funding and financing opportunities
Partners, costumers, and supply chain vendors
Maritime Blue Incubator/Accelerator
Business services consultation
Joint industry projects
Visiting delegations
B2B introductions
Trade shows and trade mission eligibility
Marketing and communications campaign
Industry focused workforce initiatives                         WA State delegation to Norway, Sept. 2018
This will be accomplished by building on the successful engagement of businesses, governments,
academic institutions, ports, labor organizations, economic and workforce development entities,
tribal nations, and community-based organizations. Because Washington's maritime industry is
located in a mix of urban and rural areas, Washington Maritime Blue will deploy a hub-and-spoke
model that will ensure that entrepreneurs and small and medium-sized businesses in underserved
and rural communities can access services, research, and networking.

Washington Maritime Blue is an independent 501c6
nonprofit Cluster Organization charged to implement the
Washington Maritime Blue Strategy as a partnership
between Public Entities, Private Industry, and Research &A
Training Institutions.
A Strategic Alliance for Maritime Innovation & Sustainability
Washington's Strategy for the Blue Economy | January 2019                                          75

ConclusionClick to edit Master title
Washington State will be home to a          The development of new mechanisms to
world-class, thriving, and sustainable        provide focused investment in maritime
maritime industry by 2050: this is the         innovation will build an attractive basis for
vision for the Washington Maritime Blue           future growth and attract new sources of
strategy. The strategy framework was built       capital.
from the ground up leveraging direct
stakeholder input and stewardship from the       Coordinated policy and lobbying efforts by
Advisory Council. Stakeholder engagement       the cluster regulatory bodies will help to
included input from representatives of             mitigate the most critical of regulatory
industry, workforce, research, academic,          challenges.
government, tribes, trade, labor, and             A broad, strategic approach to
environmental organizations and across           infrastructure planning will secure sufficient
maritime and related sectors such as clean        land for the industry's needs while
tech, information communication                 holistically managing environmental and
technology, aerospace, financial, and              societal impacts.
more.
Securing sustainable investment in
The Task Force, its Steering Committee,          infrastructure and nurturing a high skilled,
and the Pathway Workgroups have              high-value workforce and will present a
dedicated numerous hours in collaborative        compelling benefit case and enable the
meetings and providing content review and       sector to capitalize on Washington's other
shaping. The strategy is a product of what        advantages.
participants brought to the table, and a
direct outcome of the collaborative nature         A concerted effort is needed to engage the
of the discussions and innovating thinking         next generation of maritime workforce.
that was brought to the process.                  A targeted skills strategy will ensure not
only a sustainable supply of appropriate
Key to accomplishing this strategy is a            talent, but enable the industry to manage
cluster organization that develops and             the transition to new operating models in a
supports maritime business development,        just and fair manner.
technology innovation, and best practices
that promote a sustainable future and            Community outreach and engagement in all
contribute to the values of economic              areas of society will be critical to aligning
growth, ecological health, and thriving             the development of industry to the
communities. Coordinated outreach will           expectations and priorities of the public and
help showcase the industry's efforts               ensure that all in Washington State have a
and engage with society at-large to agree         stake in the future success of the sector.
common approaches to meeting
environmental and societal challenges.            A well-coordinated approach to policysetting
, the adoption of standards, and
By modernizing the fleet with low-carbon         development of funding mechanisms will
technologies and low-impact vessel               ensure a level playing field for fair
designs, the sector can establish a                 competition. Promoting collaboration on
competitive edge in sustainable vessel            issues of common interest across
construction and develop an ecosystem for        government, industry, and academia
innovation.

Washington's Strategy for the Blue Economy | January 2019Washington's Strategy for the Blue Economy | January 2019

Blue Steering CommitteeClick to edit Master title
The Washington Maritime Blue Steering Committee has been instrumental to the
development of the Strategy. They have each brought significant leadership to the
process and represent multiple perspectives. They have driven towards consensus and
represented their respective stakeholders.
Ann Avary is Director of the NW Center of Excellence for Marine Manufacturing &
Technology for Washington State. She is current Chair of the Marine League of Schools, a
national consortium of 14 marine technology education providers. Ann works directly with
the marine industries of Washington State, standards organizations, and state and national
partners, to embed industry-based technologies, processes and best practices in the
classroom and lab to support the marine industries workforce. Ann has led multiple research
projects focused on the marine industries workforce, emerging technologies and the
development of industry-recognized skill standards. As Principal Investigator for the
Composite Recycling Technician Education Program (CRTEP), she took a leadership role in
the introduction of innovative curriculum for technician education, and applied research for
professional-technical students. Ann holds a BA in Economics.
Dr. Eleanor Kirtley is the West Coast & US Program Manager for Green Marine, North
America's leading environmental certification program for the maritime industry. Dr. Kirtley
joined the program and opened their Seattle office in 2014. She supports their membership
located on Canada's West Coast and throughout most of the United States and manages the
ship owners' technical committee. In addition to responsibility for the certification criteria on
the vessel side, Eleanor oversees air emissions for the landside programs. Prior to joining
Green Marine, she was a consultant and project manager at Glosten for six years. Within
their ocean engineering and analysis group, she led vessel traffic and risk assessment
studies. Eleanor completed her BS in Mechanical Engineering from Tufts University in 2004
and her PhD in Naval Architecture and Marine Engineering from the University of Michigan in
2008.
Nan McKay was appointed by Gov. Jay Inslee to serve on the Northwest Straits
Commission. Early in her career she worked for associations of local governments in the
Pacific Northwest on issues including growth management, energy policy and election
law. From 1985 to 2002, she served three Washington governors as deputy director and
executive director of the Puget Sound Water Quality Authority and later chair of the Puget
Sound Action Team. Nan developed and led the environmental sustainability program for The
Russell Family Foundation, managing hundreds of grants to nonprofit organizations. She has
also worked as Service Corps Director at 501 Commons and now serves as a senior advisor
to the program. Nan has served on a variety of public and nonprofit boards. She was a
founding member of the Association of National Estuary Programs and is past president of
the Environmental Education Association of Washington. She currently chairs the boards of
the Center for Sustainable Infrastructure and the Sustainable Path Foundation and serves on
the boards of the North Cascades Institute, Earth Economics and Western Rivers
Conservancy. She is serving her second term on the Northwest Straits Commission and on
advisory groups for the Salish Sea Institute and Curriculum for the Bioregion.


Washington's Strategy for the Blue Economy | January 2019                                          77

Blue Steering CommitteeClick to edit Master title
Steve Sewell currently serves as Board Secretary of the Washington Maritime Federation
and is the former Maritime Sector Lead at the Washington State Department of Commerce.
Steve draws on a career of over 25 years of experience in the transportation industry. Steve
was Senior Vice President and a founding executive of LoadStara subsidiary of Hutchison
Port holdings, the world's largest container port operator. Steve held executive management
positions at the Port of Seattle, including Managing Director of the Seaport, where he was
responsible for marketing, development and operations of all port facilities, including
container terminals, cruise ship terminals, recreational and fishing marinas, warehousing and
distribution facilities and commercial real estate. Steve began his career as an attorney,
serving as King County Senior Deputy Prosecuting Attorney and then General Counsel for the
Port of Seattle. Steve earned his Bachelor of Arts degree from the University of Washington
and his Juris Doctorate from Willamette University, and has served on the Board of Directors
of a number of public and charitable organizations.
Dr. Andrew Stewart is an Assistant Director of the University of Washington
Applied Physics Laboratory and an Associate Director of the Pacific Marine Energy
Center. His work supports the development of next-generation ocean science technology
and the creation of new tools to advance capabilities and maintain strategic advantage for
the U.S. Navy. Focus areas include vehicles, marine renewable energy technologies,
undersea instrumentation, and robotics. Through employing design methodologies rooted in
fundamental principles, Stewart contributes to all phases of project development from
conceptual design to fabrication, testing, and deployment. In addition to conducting
federally-funded research, Dr. Stewart is actively commercializing technology developed
within the Laboratory and regularly collaborates with industry to identify and harness
economic impact opportunities. Dr. Stewart received the B.Sc. degree in mechanical
engineering from the University of California San Diego, La Jolla, in 2006 and the M.A. and
Ph.D. degrees in mechanical and aerospace engineering from Princeton University, Princeton,
NJ, in 2008 and 2011, respectively.

University of Washington graduate student, Tressa Arbow, wrote her master's thesis on
"Workforce Sustainability in the Washington Maritime Industry" alongside the stakeholder
process for Washington Maritime Blue. The White Paper is referenced in the Final Report.
Tressa Arbow is a master's student in the School of Marine & Environmental Affairs at the
University of Washington. Her research explores the ways local communities contribute to
and are impacted by the use of the marine environment, with an emphasis on social justice
and sustainability. Tressa is a Foreign Language and Area Studies Fellow at UW and has also
worked as a NOAA Science Camp and Orca Bowl education coordinator for Washington Sea
Grant. Prior to beginning her graduate studies, she was an Assistant Principal in Austin,
Texas and served as a Peace Corps Volunteer in Rwanda.



Washington's Strategy for the Blue Economy | January 2019                                          78

Commerce TeamClick to edit Master title
The Washington State Department of Commerce is the one agency in state government
that touches every aspect of community and economic development: planning,
infrastructure, energy, public facilities, housing, public safety and crime victims, international
trade, business services and more. We work with local governments, businesses and civic
leaders throughout the state to strengthen communities so all residents may thrive and
prosper.
The Office of Economic Development & Competitiveness (OEDC) supports the needs of
small businesses, entrepreneurs, startups, exporters and investors in order to create living
wage jobs and grow local economies throughout Washington State. The OEDC offers a suite
of services and programs focused on six specific areas: business development, retention and
expansion; foreign investment; key sector strategic growth; export assistance; marketing,
and rural development.
The Industry Sector Development Program (ISDP) mission is to grow and strengthen
communities by promoting a string business climate, promote public/private partnerships,
and support the development of a 21st century workforce through targeted high demand
industry sectors.
Joshua Berger  Governor's Maritime Sector Lead
As the Governor's Maritime Sector Lead for the State of Washington, Joshua works as the
liaison between maritime industry interests, Governor's office, legislature and state agencies.
As Sector Lead he focuses on economic development, building public/private partnership,
and ensuring a 21st century workforce. In his role, Joshua has facilitated the development of
Washington's strategic vision for a sustainable, decarbonized maritime industry alongside the
development of a Maritime Innovation Center. Previously, Joshua served as Director of the
Washington Maritime Federation and brings extensive maritime industry experience to his
position. He earned a Master's Degree from Antioch University Seattle in Participatory
Planning. Joshua is also a professional Merchant Mariner having worked in the towing
industry and spent six years as captain, of the historic schooner Adventuress.
Sarah Lee  Program Director, Industry Sector Development Program
Sarah Lee runs a national program that helps small- and medium-sized manufacturers find
and secure the resources they need to be more competitive and productive. Before joining
the WA State Dept. of Commerce, she worked for the Puget Sound Regional Council, and
previously served as press secretary to a U.S. Congressman, director of public affairs at EPA
Region 10, deputy executive director of a housing authority, and as senior vice president of
an international multimedia firm. She holds a BA in Journalism from Western Washington
University and a Master of Public Affairs degree from the University of Washington, and
several executive certificates from Harvard Business School. She goes sailing whenever she
has time.
Department of Commerce Interns
A group of interns have supported the Washington Maritime Blue initiative since its kick-off
in December of 2017. Their dedication to learning, support and input throughout the process
has been invaluable. Thank you.
Kate Merifield
Hannah Martin
& Anika Vroom

Washington's Strategy for the Blue Economy | January 2019                                          79

DNV GL TeamClick to edit Master title
DNV GL is a global quality assurance and risk management company. Driven by our
purpose of safeguarding life, property and the environment, we enable our customers to
advance the safety and sustainability of their business. Operating in more than 100
countries, our 13,000 professionals are dedicated to helping customers in the maritime, oil
& gas, power and renewables and other industries to make the world safer, smarter and
greener.
In the maritime industry
DNV GL is the world's leading classification society and a recognized advisor for the
maritime industry. We enhance safety, quality, energy efficiency and environmental
performance of the global shipping industry  across all vessel types and offshore
structures. We invest heavily in research and development to find solutions, together with
the industry, that address strategic, operational or regulatory challenges.
In the power and renewables industry
DNV GL delivers world-renowned testing and advisory services to the energy value chain
including renewables and energy management. Our expertise spans onshore and offshore
wind power, solar, conventional generation, transmission and distribution, smart grids, and
sustainable energy use, as well as energy markets and regulations. Our experts support
customers around the globe in delivering a safe, reliable, efficient, and sustainable energy
supply.
Washington Maritime Blue Staff
Jennifer States - Co-Project Manager
Jennifer is Business Development Manager and Senior Consultant specializing in
development and management of cross cutting opportunities for DNV GL  Energy North
America. She brings 20 years of renewable energy and clean tech experience in industry,
non-profit, government and research environments. Her greatest accomplishments include
launching of a start-up in advanced materials recycling, the implementation of renewable
energy policy, and driving development of sustainable maritime, renewable energy and
storage projects across the U.S. In addition to her work for DNV GL, she serves as City
Councilor for the City of Sequim, WA
Simon Mockler, Co-Project Manager
Simon is Head of Section for DNV GL Maritime Advisory Americas. He is an experienced
marine risk consultant with extensive operational experience from technical and safety risk
management. He has over the past five years been delivering and developing risk
management and fleet management advisory services to ship owners, ship managers,
regulators, port and terminal operators and charterers across all marine industry sectors in
the Americas. His specialties lie within project risk management, the qualification of new
technologies, safety management and fleet performance management.
Anders Mikkelsen, Project Sponsor
Anders is Business Development Director for DNV GL Maritime with focus on West Coast
North America. He has a MSc degree in Naval Architecture from Norwegian NTNU and NUS
in Singapore and 15 years of experience ranging from working in the world's largest
shipyards in Asia, to market entry studies, large strategy and capability building projects for
ship owners, yards, equipment makers and government bodies. He has been living and
working in Norway, Korea, China, Singapore and Canada.
Washington's Strategy for the Blue Economy | January 2019                                          80

Click to edit Master title
Copyright  Washington State Department of Commerce 2019. All rights reserved.
Reference to part of this publication which may lead to misinterpretation is prohibited.

Copyright  DNV GL 2019. All rights reserved. Reference to part of this publication
which may lead to misinterpretation is prohibited.
DNV GL is a trademark of DNV GL AS.















Washington's Strategy for the Blue Economy | January 2019Washington's Strategy for the Blue Economy | January 2019                                           81

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