1. Biomass Development A State Perspective Arthur Butch Blazer New Mexico State Forester

2. Biomass in New Mexico traditionally focused solely on fuel wood Wood burning for heating 197,000 cords were harvested in 1986

3. More recent focus on Forest Health demands Biomass removal Harvesting some of the biomass serves to improve Forest Health conditions. Forests are less crowded and the ladder fuels are removed. This decreases catastrophic wildfire risks.

4. Forest Health = Removing Biomass Before treatment After treatment

5. Biomass Utilization Benefits Reduce hazardous fuels Improve forest health Protect communities from wildfires Replace nonrenewable, fossil fuels with renewable energy Replace waste with commercially viable products Promote community and economic development

6. Biomass Removal Driving New Market & Industry Development Industry needs to be larger scale and diverse to utilize the magnitude and variety of material Infrastructure needs to be sustainable and cost-effective for the long term New and innovative markets for small diameter and slash material need to be created

7. NM Biomass Industry Development Working Group Facilitating new projects and those under development State, local, federal governmental agencies, universities, federal labs, and private companies participating

8. In Development New Mexico has various Biomass Projects in development: Dairy Example

9. NM Exploring the Use of Biomass for Energy Bio-energy projects already operating in NM Albuquerque and Las Cruces: municipal wastewater sludge methane gas production electricity and heat to power the wastewater facilities Mescalero sawmill burns waste wood to provide heat for wood drying kilns

10. Albuquerque – Wastewater to Methane

11. Fort Bayard Medical Center Historical Landmark: limited modernization opportunities Convert two gas-fired steam boilers to wood-burning heaters. Infrastructure Currently in Place Easy Installation of boilers will heat a 147,000- square-foot nursing home and will be used for laundry, cooking and hot water. Tree-thinning operations in the area will provide 30-year supply of chips for the hospital

12. Partnerships Key to Success Fort Bayard Medical Center Partners Fort Bayard Medical Center Grant County Commission Area's Legislative Delegation Gila National Forest Gila WoodNetSilver City-Grant County Economic Development Corp Department of Energy, Minerals and Natural Resources State Forestry Division Natural Resources Conservation Service State Department of Labor The Nature Conservancy Center for Biological Diversity Public Regulatory Commission Hispanic Round Table Fort Bayard Historic Preservation Society State Property Control Division

13. NM Forest & Watershed Health Plan: A Strategic Direction The Plan will streamline current efforts, such as the Biomass Working Group, by removing barriers and addressing needs The Plan will develop state-wide incentives to assist current efforts, as well as leverage National and Regional opportunities.

14. Policy Changes & New Resources are Important Incentives DOE has created Regional Biomass Partnerships WGA Resolution 03-18 Communities and governments are encouraged to develop demonstration projects and education opportunities to aid the use of non- traditional forest products.

15. New Mexico Biomass to Energy: Laws and Incentives Renewable Portfolio Standard (RPS) Requires utilities in the state to generate 5% of the power they produce from renewable resources by 2005 and 10% by 2010. Each kilowatt of energy produced from biomass represents two kilowatt hours toward compliance with the RPS. Renewable Energy Production Tax Credit Qualified energy generators (at least 10 megawatts of generating capacity) using biomass are eligible for a tax credit in an amount equal to one cent per kilowatt-hour.

16. Biomass Utilization The Key To Success! SBS Wood Shaving P&M Signs