# Presentation: 341920

## Biomass Development 	A State Perspective

- Arthur “Butch” Blazer
- New Mexico State Forester

**Notes:**
I would like to thank those involved in putting this Conference together for the opportunity to speak and share with you as to what’s going on in NM in regards to Biomass development.

Our NM Governor, Governor Bill Richardson, is very interested in seeing the biomass industry being established within our State. He realizes that without it, dealing with our over dense forest situation will be extremely difficult. Now, as Chairman of the Western Governors Association, he will have the opportunity to work with all of the western Governors in developing and expanding the biomass industry across the west.

This morning, I would like to go through some slides with you and talk about biomass development in NM and approach that we are taking. I’ll talk about where were at currently and where we are heading. 

## Biomass in New Mexico traditionally focused solely on fuel wood

- Wood burning for heating
- 197,000 cords were
- 	harvested in 1986

**Notes:**
I recall throughout the 70’s and into the early 80’s, many of our tribal members at Mescalero, including myself, were dependent upon their sale of firewood to the outside communities to make ends meet. It was those many, many cords of wood that help get me through college.

I’m sure that this same scenario was occurring and, to some degree, is still occurring across rural NM even today.

## 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.

**Notes:**
As a result of the National Fire Plan, the new Forest Health Initiative that was recently passed into law, and other funding initiatives that are or will be coming into place, the necessary dollars are starting to be made  available to do the Wildland Urban Interface (WUI) and the watershed restoration work that is needed.

As we get our acts together and begin to do the thinning that is needed, not only to get caught up, but to sustain the work that we will be doing, we’ve got to have some place to go with this material.  

## Forest Health = Removing Biomass

**Before treatment**

**After treatment**

## 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

## 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

**Notes:**
Point 1 – Massive problem. Only a very small percentage has been treated. Confident that we will find ways to begin to treat large, landscape areas. As a result, we will need this large scale industry to be established within our State.

Point 2 – Stewardship Contracts.

Point 3 – Good start. Sherry Barrow, Phil Archuleta. Gila Woodnet: 100% utiization

## 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

**Notes:**
BIOMASS “New Mexico Definition”
Biomass includes agriculture or animal waste, small diameter timber, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds in New Mexico, landfill gas, and anaerobically digested waste biomass.

The NM Biomass Industry Development Working Group was convened by the State Forestry and Energy Conservation & Management Divisions in June, 2003. The objective of the Group is to encourage and assist in the development of a viable biomass industry in NM, resulting in improved forest health and increased use of domestic biomass resources to stimulate economic development.

LOOK AT SLIDE – Comment on those points.

The Group has been divided into three (3) sub-committees:
Feedstock Inventory
Legislative
Marketing

A Workshop is planned for March, 2004.

Mention Tour of Northern California - Tad Mason and others.

## In Development

- New Mexico has various Biomass Projects in development: Dairy Example

**Notes:**

There is a recently funded project that has created a partnership between the NM and Texas State energy offices, NMSU and local dairy’s that involves the utilization of dairy wastes (manure) to create energy (electricity) for on site use. In this case, it will be utilized to operate a green house.

## 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

**Notes:**
The municipal projects: Changing the molecular structure from solid into gas to create electricity to operate the facilities.

Mescalero Mill: Burn approximately 25 tons of green material per day to generate steam used to dry their lumber. Because of the lumber market and the way that it fluctuates over time, this little bit of savings is important. Mescalero is now, with the recent change in tribal leadership, is going to be seriously looking at putting in a co-generation facility on the reservation.

At this point, I would like to mention that there are, and always have been, the opportunity for development on tribal lands that would be of benefit for both the Tribes and those that they chose to partner with. I’m currently involved with several tribes right now in this regard. But its not easy to get these relationships developed and projects off the ground. There are many reasons for this that I don’t have the time to get into now, but the point that I want to make is that Tribes need help in making these opportunities happen. I want to thank Asst. Sectry. Rebecca Watson and Asst. Sectry. Lynn Scarlett for their efforts in getting out to Indian Country and seeing what I’m talking about. I’d also like to thank the USFS in their efforts in establishing the new Tribal Relations Program (point out Dale Kanen). The old thought that the sole responsibility of assisting tribes lies with the BIA is not true and has to be dispelled. Our tribes need to be able to leverage their resources with that of both the federal and state agencies if they are going to be successful in becoming successful partners. 

## Albuquerque – Wastewater to Methane

## 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

**Notes:**
Very important facility:
250 bed long term care facility
Provides 388 jobs – 5th largest employer in Grant County

Problem:
$140,000 natural gas bill annually.

Solution:
Convert to two gas-fired steam boilers.

Results:
Reduce energy costs down to any where from $119,000, to possible as low as $37,195 annually. The variance is due to what the actual cost of what the wood chips would be. Montana Green Chips scenario at $29 per ton, $119,000. The Arizona Green Chip scenario at $9 per ton, $37,195.

## Partnerships Key to Success Fort Bayard Medical Center Partners

| Fort Bayard Medical Center | Grant County Commission | Area's Legislative Delegation | Gila National Forest |
| --- | --- | --- | --- |
| Gila WoodNet | Silver 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 |

## 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.

**Notes:**
Los Alamos example

## 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.”

**Notes:**
The New Mexico point – explained earlier.

If our biomass development efforts at the local and state levels are to be successful, it is imperative that we have the support of regional organizations, like the Western Governors Association. This regional support is essential in the identification and removal of barriers that stand in the way of bioenergy development in the west.

## 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.

**Notes:**
This RPS is in place and is a rule with the Public Regulatory Commission (PRC).

Key to bringing in the Biomass Industry into the State of NM.

##          Biomass Utilization     “The Key To Success!”

*SBS Wood Shaving*                       *P&M Signs*

**Notes:**
Challenges:
Market Development for biomass products.
Transportation Costs.
Workman’s Compensation costs.
Identification of early adopters and capital for demonstration projects.

Solutions:
Effective Planning at all levels.
Effective partnership development at all levels.