American Recovery and Reinvestment Act: Benefits and Investment in New Mexico

1. NEW MEXICO OFFICE OF REINVESTMENT AND RECOVERY OFFICE OF THE GOVERNOR May 4, 2009 American Recovery and Reinvestment Act:Benefits and Investment in New Mexico

2. Welcome Rick Homans Cabinet Secretary, NM Taxation and Revenue Department Chairman, Governor Richardson�s Competitive Grant Advisory Team

3. Introductions CGAT Members NM Recovery and Reinvestment Team Federal officials State officials

4. Special Thanks Council of Governments New Mexico Association of Counties New Mexico Municipal League

5. Agenda Status of federal stimulus in NM, and in your region Competitive grants, financing packages and key tax incentives Questions and answers

6. Purpose of Meeting Governor Richardson�s Executive Order Timely, fair, transparent� Extensive outreach to communities Bring every possible federal dollar to New Mexico to create jobs, revitalize our economy Many competitive grants, financing packages and tax incentives require local initiative � we want to ensure that you are aware of these programs, and that you have time to apply Responsibility to go after these programs rests at the local level, and the Council of Governments will assist

7. Where is your money going? Direct allocations and awards to state programs Estimated more than $2.8 billion to New Mexico Benefits to individuals and businesses in the form of tax relief ~$288 billion available nationwide for tax relief (37% of the total stimulus) Benefits to businesses and communities through loans and several new tax-exempt and tax credit bond programs More than $30 billion of bond authority available nationwide Direct expenditures by federal entities (e.g., EPA, BLM, NPS) ~$550 million of spending in New Mexico already identified Competitive grants ~$74 billion through state, local, or private application to federal agencies

8. Direct allocations and awards to New Mexico

9. Direct allocations to your community Recovery Act funds will be distributed to every community in New Mexico and will: Soften the anticipated cuts in school budgets and assist student in being able to afford higher education ~$471 million distributed to all school districts and charter schools ~$191 million for Pell Grants and work study Provide direct infusions into local economies ~$545 million for Medicaid ~$174 million for increased caseload and expanded benefits in the Food Stamp Program (20% increase in caseload) ~$58 million to extend the period of unemployment compensation and to increase the benefit ~$12 million distributed to local workforce boards Support investments for long-term growth through infrastructure projects

10. Direct allocations to your community Shovel-ready infrastructure projects have been identified through existing state and federal processes $264 million in highway and transit projects have been awarded to projects identified in the STIP and MPO TIP process $43 million in rural water and wastewater projects have been awarded by USDA Shovel-ready drinking water and clean water were identified from the existing backlog of priority projects and noticed for public comment � $40 million in awards will be made soon $3.8 million in additional CDBG projects were awarded in the latest funding round The first phase of funding for the State Energy Plan will be allocated to project proposals that were not funded in previous years; subsequent funds will be distributed through a competitive process $11 million from the Energy Efficiency Community Block Grant has been awarded to the state and specific communities

11. Direct allocations to your community

12. Direct allocations to your community

13. Direct allocations to your community

14. Direct allocations to your community

15. Direct allocations to your community

16. Upcoming opportunities for communities Assist individuals and businesses in taking advantage of: Individual Tax Relief - e.g., Making Work Pay Tax Credit, First-Time Homebuyers, Earned Income and Child Tax Credit Housing Programs � including weatherization and Tax Credit Assistance Business Tax Relief - changes in treatment of bonus depreciation, capital expensing, and operating losses; and Small Business Loan Programs Pursue bond and loan program opportunities for economic development, education, energy, and other local investments Collaborate on applications for competitive grant funding administered by state or federal entities

17. Competitive grant opportunities

18. Competitive grant opportunities Approximately $74 billion was appropriated for national competitive grant opportunities Graph shows remaining funds available and some of the most significant state and federal opportunities are outlined in the following presentations State opportunities will be listed on www.recovery.state.nm.us with links to agency program contacts or information New Mexico Office of Recovery and Reinvestment Former Governor Toney Anaya, Director Dona Cook, Bill Dunbar and Matt Ruybal, points of contact 476-0078 Federal opportunities are listed on www.grants.gov and described on federal agency web pages www.recovery.gov (links to agency pages)

19. Competitive grant opportunities Communities should: Monitor information from state and federal counterparts � new opportunities are being announced almost daily Learn about the match and loan requirements for the specific funding programs Register for federal grant applications � go to http://www07.grants.gov/applicants/get_registered.jsp to register� Entities that have not registered in advance of making an application cannot apply It can take anywhere from three days to two weeks to register Be prepared to comply with the reporting requirements and other accountability and transparency provisions of the Recovery (see FAQs on www.recovery.gov)

20. Competitive grant opportunities Communities should: Identify projects or phases that are shovel-ready and/or will create jobs Work within existing funding processes to ensure state and federal entities understand your priorities and the readiness of your projects (e.g., ICIP, uniform application for water projects, etc.) Use the NMORR website form to facilitate connecting your project with potential funders � this is not an application process, your project will be referred to potential funders by NMORR

21. Competitive Grants, Loans and Bonds Energy Programs: State Energy Program Energy Efficiency and Conservation Block Grant Clean Cities

22. State Energy Program Program: Funding for projects that adopt emerging renewable energy and energy efficiency technologies Recovery Act Amount: $31.8 million Status and Distribution: The first financial assistance award for 10% has been received Phase I awards to large, shovel-ready projects already in EMNRD-ECMD�s pipeline Phase II funding will be awarded through a competitive selection process to projects that can be completed within the ARRA timelines 100% of first allocation from DOE (10% of total) must be obligated by 6/17/09 Second allocation of 40% of total funds is expected within 60 days of submittal of comprehensive application to DOE (must be submitted by 5/12/09) � allocation expected by 6/11/09 The first and second allocations, or 50% of the total funding award, must be deployed by 12/31/09

23. State Energy Program Impact and Investments: Funding opportunities will be available in both the public and private sectors -examples of eligible public entities include state agencies, cities, counties, universities, school districts, tribes, pueblos, and governmental subdivisions What Local Communities Can Do: Form partnerships to structure cost-effective, shovel-ready projects that address one or more of the following market areas: buildings, energy education, transportation, public policy, industry, and renewable energy Submit project applications to EMNRD-ECMD once solicitations are issued at a yet-to-be determined date, pending U.S. DOE approval of the state�s plan Solicitations will be posted in newspapers statewide and on EMNRD-ECMD�s website www.CleanEnergyNM.org

24. Energy Efficiency and Conservation Block Grant Program: Funding to assists states and local governments to save energy, reduce emissions of greenhouse gases, increase renewable energy production and save money while leveraging private and other public funds Recovery Act Amount: ~$20.6 million ~$11.4 million available directly for eligible local governments (10 most populous cities and 10 most populous counties) and tribes that apply to US DOE; ~$5.8 million in competitive grants to smaller municipalities and counties; ~$3.8 million in competitive grants

25. Energy Efficiency and Conservation Block Grant Status and Distribution: Funds have not been awarded to date No less than 60% of funding will be awarded to projects selected through a competitive solicitation/application process from smaller municipalities and counties; activities funded with no more than 40% of the program will feature shovel-ready projects with already-defined benefits Deploy half the money no later than December 31, 2009 and all the money no later than September 30, 2010 Measure the results according to already-defined criteria Timelines: For local governments, tribes and pueblos eligible to receive direct set aside funds, applications to DOE are due by June 25 EMNRD-ECMD�s comprehensive application is due to DOE by May 26 Smaller municipalities and counties can compete for block grant funding ($5.8 million) during a May-June 2009 period to be determined Solicitations in the public and private sectors for the remaining $3.8 million will be issued in July

26. Energy Efficiency and Conservation Block Grant What Local Communities Can Do: Attend a webinar training to be held in May (details coming soon) Work with the Council of Governments to coordinate strategies Collaborate with neighboring jurisdictions, school districts, and the private sector on potential project partnerships Submit project applications to EMNRD-ECMD once solicitations are issued at a yet-to-be determined date pending U.S. DOE approval of the state�s plan Solicitations will be posted in newspapers statewide and on EMNRD-ECMD�s website at www.CleanEnergyNM.org

27. EMNRD-ECMD Contact Information State Energy Program Susie Marbury (505) 476-3254 Susie.marbury@state.nm.us Energy Efficiency and Conservation Block Grant Ken Hughes (505) 476-3320 Ken.hughes@state.nm.us To be added to an email contact list for RFP issuance notification Jane Tabor (505) 476-3252 Jane.tabor@state.nm.us

28. Clean Cities Program: Funding from the Alternative Fuel and Advanced Technology Vehicles Pilot Program (DOE Clean Cities Program) is available to state and local governments, metropolitan transportation authorities, air pollution control districts and private or nonprofit entities to acquire alternative fueled, fuel cell or hybrid vehicles. Funding for related infrastructure is also available. Recovery Act Amount: $300 million (30 grants from $5 million minimum to $15M million maximum) Status and Distribution: Department of Energy Competitive Grant Program 1st Round of Funding Applications due May 29th, 2009 2nd Round of Funding Applications due September 30th, 2009

29. Clean Cities Impact and Investments: Period of Performance for the total project is 4 years, with the final 2 years available for data collection, after alt fuel vehicle deployment and supporting infrastructure development has been completed 50% Cost Match Required for funding. What Can Local Communities Do: Entities eligible to apply include state governments, local governments, and metropolitan transportation authorities in partnership with the Land of Enchantment Clean Cities Coalition (active membership required) Contact Information: Frank Burcham; Land of Enchantment Clean Cities Coalition Executive Director (loecleancities@comcast.net or 505-856-8585)

30. Competitive Grants, Loans and Bonds Public Safety Programs: Edward Byrne Competitive Grant Assistance to Firefighters

31. Edward Byrne Competitive Grant Program Program: Funding available to state and local police forces to help prevent, fight and prosecute crime. Targeted use for law enforcement, planning, evaluation and technology improvement programs. Recovery Act Amount: $11.1 million Status and Distribution: Funding will be awarded according to formula requirements. Eligible applicants are any unit of local government. Applications are due to the Department of Public Safety (DPS), Grants Management Bureau (GMB), postmarked or received no later than 5:00 pm on May 15, 2009 The Drug Enforcement Advisory Council (DEAC) has appointed a panel to review applications � the target date for deliberations is June 08 through June 12, 2009 Awards should go out to all successful applicants the first week of July; this will allow for fifteen (15) days in which an unsuccessful applicant may appeal to the Cabinet Secretary of DPS

32. Edward Byrne Competitive Grant Program What Can Local Communities Do: Applications are available on the Department�s website: www.dps.nm.org or by calling the GMB directly at 827-9112 Contact Information: Evelyn Romero, Grants Management Bureau Chief evelyn.romero@state.nm.us Heather Monarski, Management Analyst heather.monarski@state.nm.us

33. Assistance to Firefighters Grant Program: Grants available to enable local fire departments and emergency medical services to purchase or receive training, conduct first responder health and safety programs, and buy equipment and response vehicles Recovery Act Amount: $210 million Status and Distribution: FY09 grant application period begins on April 15, 2009 Applications must be received by May 20, 2009 Impact and Investments: AFG awards aim to enhance response capabilities and to more effectively protect the health and safety of the public with respect to fire and other hazards What Can Local Communities Do: Communities are encouraged to apply for funding � an applicant tutorial is now available Contact Information: Federal Emergency Management Agency's Grant Programs Directorate AFG Program staff at 1-866-274-0960 (Help Desk) or E-mail: firegrants@dhs.gov

34. Competitive Grants, Loans and Bonds Education

35. Fiscal Stabilization Innovation Funds Program: �Investing in What Works and Innovation� Recovery Act Amount: $650 million nation wide Status and Distribution: 2010 grant awards will be made in two rounds � late Fall 2009, Summer 2010 Eligible Entities are: A local education agency (LEA) also known as a public school district Or a partnership between a nonprofit organization and one or more LEAs or a consortium of schools. Nonprofits that have met certain requirements (contact PED for details) What Can Local Communities Do: Competitive grants will be given to states that apply in consortia. New Mexico is a partner in various state consortia around various initiatives. PED will set up stakeholder advisory groups. Contact Information: For more information about collaborative efforts to apply for this funding contact Bill Dunbar at 476-0070; http://www.recovery.state.nm.us/agencies/ped.html

36. Competitive Grants, Loans and Bonds Housing Programs: Overview of HUD programs Neighborhood Stabilization Stimulus Program � NMMFA Homeless Prevention � NMMFA Weatherization - NMMFA

37. Housing and Urban Development Programs Programs: Two important programs � the Neighborhood Stabilization Stimulus Program and the National Homeless Prevention Fund � will be discussed in more detail by the NMMFA Recovery Rural Housing and Economic Development (RHED) FY09- Competitive grants for capacity building and innovative housing and economic development activities in rural areas Eligible applicants are local rural non-profits, community development corporations (CDCs), federally recognized Indian tribes, state housing finance agencies (HFAs), and state community and/or economic development agencies Recovery Act Amount: $ 26.0 million nationally Status and Distribution: NOFA for FY09 available online. Application deadline date for RHED�s is May 29, 2009

38. Housing and Urban Development Programs What Can Local Communities Do: NSP � state, local governments and nonprofits may apply for funding Homeless Prevention � local governments may apply for funding RHED� nonprofits, community organizations and housing agencies monitor NOFA Participate in the Albuquerque Field Office�s Grant Writing Training June 9, 10, & 11, 2009 � Embassy Suites Albuquerque � Hotel & Spa 1000 Woodward Pl. N.E. Sandia Ballroom VI & VII Albuquerque, NM 87102 505-245-7100 (Main Number) / 505-353-5389 (Fax Number) Register online at: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=16&update=N

39. Housing and Urban Development Programs Contact Information: Frank Padilla, Director of Community Planning and Development Phone: (505) 346-7361 Email: frank.padilla@hud.gov Monica Gonzales, Financial Analyst Phone (505) 346-7345 Email: monica.m.gonzales@hud.gov HUD Websites: http://www.hud.gov/recovery/nspg.cfm http://www.hud.gov/offices/cpd/economicdevelopment/programs/rhed/ http://www.hud.gov/offices/cpd/economicdevelopment/programs/rhed/funding09/index.cfm

40. Neighborhood Stabilization Program Program: Neighborhood Stabilization Program Funding to acquire and redevelop foreclosed upon and/or abandoned residential properties in order to stabilize property values in areas with high foreclosure rates Recovery Act Amount: $2 billion nationally Status and Distribution: HUD will issue Notice of Funding Availability (NOFA) on May 3 Eligible applicants include states, units of local government, non-profits, and consortia of non-profits and for-profits Rating factors will include capacity to execute projects, leveraging potential, and concentration of investment to achieve neighborhood stabilization

41. Neighborhood Stabilization Program Impact and Investments: MFA estimates that for every $1 million used to rehab 20 homes: Estimated state and local tax revenue generated = $105,000 Estimated jobs created (direct and indirect) = 11 What Can Local Communities Do: Units of local government may apply directly to HUD for funding (review NOFA after it is released for further details) Local communities are encouraged to collaborate with non-profits Contact Information: www.hud.gov/recovery/nspg.cfm Frank Padilla, Director of Community Planning and Development, NM HUD Office Phone: (505) 346-7361 Email: frank.padilla@hud.gov Monica Gonzales, Financial Analyst, NM HUD Office Phone: (505) 346-7345 Email: monica.m.gonzales@hud.gov

42. Homelessness Prevention and Rapid Re-Housing Program: Homelessness Prevention and Rapid Re-Housing (HPRP) Assistance to low-income households who are �precariously housed� and at risk of becoming homeless as well as those currently homeless Recovery Act Amount: $8,585,909 for New Mexico MFA will administer $6,778,653 City of Albuquerque will administer $1,807,256 Status and Distribution: HUD will make funding available September 1 MFA drafted HPRP plan; public comment period closes May 4 RFP will be published in May, anticipate making awards in August Impact and Investments: Anticipate HPRP will serve an estimated 800 households outside Albuquerque; approximately 10 jobs created/retained

43. Homelessness Prevention and Rapid Re-Housing What Can Local Communities Do: Units of local government may apply to MFA for funding RFP will be available May 21 on MFA�s website: www.housingnm.org Proposals will be due to MFA no earlier than June 19 MFA�s Board of Directors will determine the successful awardees on or about August 19 MFA will award funds to one lead agency in a service area Service area = one or more counties Successful applications will demonstrate the following: Capacity to provide broad spectrum of housing and services Local collaboration with agencies serving specific target populations Local partnerships to provide services Local communities are encouraged to collaborate with social service providers Contact Information: www.housingnm.org

44. Weatherization Assistance Program NM Energy$mart (Weatherization Assistance Program): $26.8 million Status and Distribution: MFA will execute contracts with service providers on or about June 1 Impact and Investments: NM Energy$mart benefits low-income households (= 200% of poverty) NM Energy$mart will serve an estimated 2,800 households throughout the state Average household energy cost savings = $400 annually Estimated jobs created = 210 What Can Local Communities Do: Contact service providers to collaborate on educational opportunities and awareness campaigns Refer prospective weatherization clients to service providers Contact Information: www.housingnm.org

45. Competitive Grants, Loans and Bonds Employment Programs: Dislocated Worker National Reserve Green Jobs Training

46. Dislocated Worker National Reserve Program: Funds will be utilized to respond to plant closings, mass layoffs, and other worker dislocations Recovery Act Amount: $200 million Status and Distribution: No deadlines for submissions; consideration is based on need that exceeds formula dislocated worker funds Impact and Investments: Provides retraining and allowances for some support payments to dislocated workers. This will most likely benefit towns adjacent to closed/downsized mining operations such as Silver City and Taos. What Can Communities Do: Communities can identify specific evidence of needs and participate with the State to determine appropriate training for dislocated workers. http://wia.state.nm.us/dws-mainoffice.html www.dol.gov.recovery

47. Green Jobs Training Program: Funds will be utilized to support training programs/apprenticeship programs for green construction, energy efficiency and renewable energy installations Recovery Act Amount: $500 million Status and Distribution: Specific application criteria are currently being developed by the federal Department of Labor Impact and Investments: Hire and train local workers for existing and emerging green jobs based on area needs What Can Local Communities Do: For more information about collaborative efforts to apply for this funding contact Bill Dunbar at 476-0070 NMDWS Contact Information: www.dws.state.nm.us Deputy Cabinet Secretary, Teresa Gomez (505) 841-8488 Chief of Staff, Jason Lewis (505) 841-8672

48. Competitive Grants, Loans and Bonds Rural and Economic Development Programs and Small Business Incentives : Economic Development Assistance Program Rural Business Enterprise Grant Other USDA Funding Opportunities Small Business Incentives

49. Economic Development Assistance Program: Economic Development Assistance for planning, technical and infrastructure assistance for communities who have severe job loss; EDA has funding for: (1) public works; (2) planning; (3) local technical assistance; and (4) economic adjustment assistance Recovery Act Amount: $100 million Status and Distribution: Applications being accepted as of March 10, 2009; applications are accepted on a continuing basis and processed as received Impact and Investments: Communities throughout the State benefit from: Enhancing infrastructure/facilities that help in job creation Gaining additional resources for economic planning Assisting communities react to adverse and sudden economic changes

50. Economic Development Administration What Can Local Communities Do: Work with local governments (COGs) and other organizations to identify priority projects and submit applications to EDA Contact Information: Pedro Garza, Austin Regional Director � pgarza@eda.doc.gov  Mathew Woodlee, New Mexico Economic Development Department Mathew.Woodlee@state.nm.us 827-0278 Websites: www.eda.gov www.grants.gov

51. Rural Business Enterprise Grant Program: Funds to support the development of small and emerging businesses. The RBEG program may fund projects as varied as business revolving loan funds, business district infrastructure projects, capital improvement projects, business incubators and downtown revitalization projects (http://www.rurdev.usda.gov/arra/recovery-program.htm). Recovery Act Amount: $20 million nationally Status and Distribution: All submissions must be made to the New Mexico USDA Rural Development State Office and received by May 22, 2009. It is anticipated that funding awarded to successful applicants will be received six to eight weeks following the May 22, 2009 deadline. Impact and Investments: The goals of the RBEG program is to create jobs and economic opportunities for small and emerging businesses in rural areas statewide. Rural areas are communities with populations of less than 50,000. (http://www.rurdev.usda.gov/arra/recovery-program.htm).

52. Rural Business Enterprise Grant What Can Local Communities Do: Eligible applicants are public bodies and private nonprofit corporations including States, counties, cities, districts and Indian tribes on Federal and State reservations that serve rural areas. Entities that are interested in applying, or that are in need of further assistance, should contact the New Mexico USDA Rural Development State Office. Applications must be received by May 22, 2009. Contact Information: New Mexico USDA Rural Development State Office 6200 Jefferson Street NE, Room 255 Albuquerque NM 87109 (505) 761-4950 http://www.rurdev.usda.gov/arra/recovery-program/htm Elizabeth Holmes EHolmes@nmda.nmsu.edu (505) 795-2459

53. Opportunities for Competitive Loan/Grant Funding Through USDA Rural Development Program: "To increase economic opportunity and improve the quality of life for all rural Americans" Recovery Act Amount: Three times normal apportionment to New Mexico �approximately $240 million for all programs Status and Distribution: Distribution of funds will be through regular funding process through business, community and housing programs Impact and Investments: Local impact will include the creation saving of jobs, providing clean water and the construction or purchase of homes � funds will be distributed in rural communities What Can Local Communities Do: Local communities need to contact Rural Development areas offices for information Contact Information: www.rurdev.usda.gov

54. Small Business Incentives Small Business Administration Incentives Available IMMEDIATELY Upfront Borrower Guarantee Fees on SBA Loans are Temporarily Eliminated Effective Dates: 2/17/09 thru date of funding exhaustion All 7(a) loans Exceptions - Loans of 12 months or less and ARRA Prohibited Uses 504 loans Specific prohibited uses, but if otherwise eligible, may still work under other SBA programs Up to 90% Guaranty on SBA Loans, Temporarily Effective Dates: 3/16/2009 thru date of funding exhaustion All 7(a) and Pilot Loan Programs (Except SBA Express) Specific prohibited uses, but if otherwise eligible, may still work under other SBA programs Prohibited Uses States or local governments not eligible No casinos, gambling establishments, aquariums, zoos, golf courses or swimming pools

55. Small Business Incentives Secondary Market Thaw Treasury to purchase up to $15 billion in loans sold by banks to encourage more lending to small businesses More Micro-loan Money Available to SBA Micro-lenders Intermediary microlenders designated by SBA can make more loans up to $35,000 to small businesses WESST is NM�s Microlender: www.wesst.org Surety Bond Program Expansion Raised Maximum Amount for Contracts that qualify for surety bonds up to $5 million Up to $10 million on certain fed contracts Future SBA-related ARRA Incentives to be Announced Refinancing under 504 America�s Recovery Capital Program (ARC) - Business Stabilization Loans For Information on other Recovery Act Incentives: SBA Website for ARRA Info: www.sba.gov/recovery/ General Website: www.recovery.gov/

56. General Questions? SBA New Mexico District Office 625 Silver SW, Suite 320 Albuquerque, NM 87102 www.sba.gov/nm 505-248-8225 Toll Free NM Small Business Hotline: 1-800-726-3632, select Option 2, followed by selection of Option 3 Your SBA � New Mexico District Office

57. Competitive Grants, Loans and Bonds New and Enhanced Bond Programs: Build America Bonds Clean Renewable Energy Bonds Energy Conservation Bonds Recovery Zone Facility Bonds Recovery Zone Economic Development Bonds Qualified School Construction Bonds Qualified Zone Academy Bonds

58. New and Enhanced Bond Programs Program Purpose and Recovery Act Amounts: American Reinvestment and Recovery Act of 2009 expands the investor base for municipal debt to help lower the overall interest paid on bonds creates new types of tax-exempt bonds and expanding existing uses creates several new types of tax-credits bonds modifies existing tax regulations and eases restrictions Status and Distribution: Not grant programs The funds needed for construction projects will be generated by the issuance of these tax-exempt or tax-credit bonds Regardless of the bond program, only projects that are able to demonstrate ability to repay the debt will qualify NMFA has requisite statutory authority to issue bonds on behalf of local governments as well as private entities, but will need to establish policies to implement their use All bonds must be issued by December 31, 2010

59. New and Enhanced Bond Programs Build America Bonds New program created by ARRA No volume limitation Only governmental purpose and use including universities State and local governments may elect to issue taxable Build America Bonds in lieu of tax-exempt governmental bonds The issuer receives a rebate from the IRS in the amount of 35% of the interest paid on the bonds Bonds issued through traditional methods Clean Renewable Energy Bonds Increases $800 million to $2.4 billion (nationally) Interest-free financing for renewable energy projects that generate electricity from a �clean� process, including clean coal, wind and solar

60. New and Enhanced Bond Programs Energy Conservation Bonds $800 million to $2.4 billion (nationally) for calendar years 2009 and 2010 ARRA expands the use of Energy Conservation Bonds Created in 2008, allows governments to issue bonds to finance: improvements that reduce energy consumption in publicly owned buildings; implementation of green community programs; electricity production form renewable energy resources for rural areas; the construction of research facilities; grants to support development of �green� technologies, reduce pollution from mass commuter vehicles; and advance other green technologies and infrastructure The 2009 Stimulus Package expands the use of QECBs to allow governments to make loans to individuals for green community programs e.g., loans for homeowners to retrofit their homes with energy conservation products

61. New and Enhanced Bond Programs Recovery Zone Facility Bonds New category of tax-exempt private activity bonds $15 billion limitation will be allocated to states in proportion to their respective 2008 job losses and then sub-allocated to large counties and municipalities (population of more than 100,000) on the basis of relative job losses An estimated $155.8 million for New Mexico Bond proceeds fund capital projects in recovery zones for businesses that typically would not qualify for tax-exempt financing (distribution centers, hotels, research parks-virtually any trade or business, except residential rental facilities or �sin� businesses); volume cap not required. Recovery Zones designated by state and local governments as having significant poverty, unemployment, home foreclosure rates, general distress or military base re-alignment

62. New and Enhanced Bond Programs Recovery Zone Economic Development Bonds New category of tax-credit bonds (similar to Build American Bonds) $10 billion limitation will be allocated to states in proportion to their respective 2008 job losses and then sub-allocated to large counties and municipalities (population of more than 100,000) on the basis of relative job losses An estimated $103.87 million for New Mexico Governmental bonds used for governmental purpose Finances development within a Recovery Zone, including construction of public facilities as well as for job training or education programs Recovery Zones designated by municipalities and counties based upon poverty, unemployment, home foreclosure, general distress or military base re-alignment The federal government will provide issuers of Recovery Zone Economic Development Bonds with a tax credit equal to 45% of the interest on the bonds

63. New and Enhanced Bond Programs Qualified School Construction Bonds New category of tax credit bonds In calendar years 2009 and 2010, $11 billion available annually with: 60% allocated to states based upon their respective amounts of local educational grants received under the Elementary and Secondary Education Act; and 40% allocated to large local education agencies that serve low income children Issued by State and Local Governments funded construction, rehabilitation or repair of public school facilities or acquisition of land for a public school to be construction with proceeds of these bonds Qualified Zone Academy Bonds ARRA extends and expands QZABs, which are tax-credit bonds issued for the benefit of certain public school programs and improvements QZABs increased from $400 million to $1.4 billion nationally in each 2009 & 2010

64. Competitive Grants, Loans and Bonds Arts Programs

65. Arts Jobs Funding in New Mexico $247,000 available in grants from New Mexico Arts, Department of Cultural Affairs About fifteen to twenty competitive Arts Jobs grants available Funding from the National Endowment of the Arts (NEA) under the American Recovery and Reinvestment Act Must apply online to New Mexico Arts by June 5, 2009 Must be nonprofit, 501(c)3, arts organization and regular�arts grantee in FY07, FY08, FY09, or FY10

66. Arts Jobs Funding in New Mexico Eligible nonprofit arts organization may either apply for: Up to $20,000 in salary support for one staff position critical to artistic mission or up to $7,500 for artist/contractor fees for previously engaged artists and/or contractual personnel Must demonstrate position or artist/contractor fees are in jeopardy or eliminated due to economy Full time development and fundraising positions are not eligible under NEA rules Government entities are not eligible unless they are a local arts council or based in rural New Mexico and a key provider of arts services For more information www.nmarts.org Contact Ann Weisman at (505) 827-6490 or 1-800-879-4278, instate ann.weisman@state.nm.us

67. Collaboration to Bring Dollars to New Mexico Broadband Green Grid Health Information and Technology

68. Broadband The Broadband initiative provides an opportunity to implement high speed network infrastructures to un-served or underserved communities High speed network access provides benefits to business, education, health, government, and the individual Broadband provides access to web based business operation services such as sales, service, purchasing, call centers, information exchange, and many others Broadband services such as integrated voice/data/video can reduce business costs, improve customer services, and reduce the impact of remotely located business offices Distance learning assists schools in providing access to high quality instruction filling in the gaps in teacher/skills availability Tele-health provides medical assistance without the need to travel to population centers Broadband should have a positive impact on job creation, business advancement, and productivity

69. Broadband The Federal package includes several areas for investment in state high speed (broadband) networks Agriculture Department, Rural Utilities (loan or grant) $2.5 billion nationally Commerce Department, NTIA (competitive grant) $4.7 billion national Multiple technology distributions that may include IT infrastructure Grants may come to states, companies, nonprofits or other entities Funds would be distributed based upon the winning proposals NM is guaranteed at least one grant The anticipated size of the NM grant could be from $30-100 million Grants require 20% non-federal match Included in the state application will be all high schools, public libraries, universities, tele-health centers, state offices, and super computer locations

70. Broadband Community Involvement Assistance can be provided by: Providing a letter of support Identifying benefits to the community Describing need, contacts and pending initiatives Providing copies of proposals, grant applications etc. Sample copies of correspondence can be obtained from our grant contact person Contact Richard Lowenberg at: 505-603-5200 lowenberg@designnine.com Information is needed by May 20, 2009

71. Green Grid Since the summer of 2008, the State has been coordinating the efforts of nine working groups comprised of both national labs, the State�s universities and colleges, the PRC, RETA, State Government departments and others to design a master project of integrated clean energy power generation (the �Green� of the Green Grid) combined with intelligent systems and controls for energy management (the �smart� component of the Green Grid). The original project was to model, simulate, test, design and build two microgrid demonstration installations, located in a rural and urban location. When the DOE announced that ARRA funding for the �smart grid� (aka. �GreenGrid�) would be possible, the working groups scaled up the project to upwards of 10 microgrid installations that would include other clean energy sources (geothermal, biomass, etc.) as well as �mixed use� (residential, commercial, industrial, municipal use, etc.) in a sub-station and distributive energy situation. The idea was to mirror usage of a more diverse set of needs that reflected those the entire Nation.

72. Green Grid On April 16th, the DOE guidelines for smart grid installations radically changed the project parameters. Once thought to be in favor of larger projects in the hundreds of millions, of dollars, the DOE issued stringent guidelines favoring smaller projects AND instituted a 50% local funding requirement. In addition, they split up the single project into three parts and prohibited one company (or entity) from bidding on all three parts. This new reality meant that an integrated, interoperable solution to America�s future grid would be nearly impossible.

73. Green Grid On April 18th, the Governor�s Team devised a strategy to influence the DOE to change the guidelines and on April 28th, the Governor pushed back. In a letter to DOE Secretary Chu (and to the NM Congressional Delegation), Governor Richardson addressed the flaws of the DOE�s argument that strongly encouraged several major revisions: 1. To increase the project size 2. To reduce the onerous 50% local funding match 3. To integrate the projects, allowing single companies or entities to bid on the entire project

74. Green Grid In order to build a consensus for the State�s position, a series of �Green Grid Regional Discussions� with New Mexico municipalities and utility companies were scheduled throughout the State beginning on April 22nd. Discussion meetings were held in Albuquerque, Las Cruces, Clovis, Roswell, Gallup, Farmington, Espanola and Tucumcari. In addition to participation of nearly 100 persons from concerned towns, cities and utilities, representatives of the Tribal communities were also present. A massive letter-writing campaign was put in place. Mayors, utilities, energy companies and non-profit energy-related organizations were encouraged to write to the DOE and to the NM Congressional Delegation expressing their agreement with the State�s objections and supporting the new proposals.

75. Green Grid The State must be prepared to submit proposals by the expected June 17th deadline � whether the projects are of the larger, integrated variety or the smaller microgrid projects. This means that the proposal writing teams must be ready to begin their work and adapt their information to the �winning� architecture. The State has its teams in place, and they include experienced proposal-writers from both national labs: Sandia and Los Alamos. Project Leader, Stephan Helgesen of the EDD is working with the Governor�s Science Advisor, Tom Bowles, both labs and the NMGGI working groups to prepare the proposals and meet DOE�s deadlines. �

76. Green Grid The DOE�s comment period on the guidelines for the smart grid grants ends on May 6th. Companies, municipalities, utilities, energy organizations or citizens can support the State�s position and make their voices heard by sending in a letter to the DOE�s email address before May 6th. Send to: smart-grid.noicomments@hq.doe.gov A sample letter can be found on: www.greengridnewmexico.org Help New Mexico build America�s 21st century clean energy Green Grid �

77. Health Information Technology Grants Program: Health Information Technology Grants (HITECH) $2 billion Status and Distribution: (Awaiting guidance due May 18) Impact and Investments: Rural areas, critical access hospitals, FQHCs, providers serving underserved and uninsured populations Health Information Exchange (HIE) Electronic Health Records (EHR) Research and Development Workforce training and credentialing What Can Local Communities Do: Explore local collaboration on HIE, Regional Centers, Broadband, Telehealth, IHS, VA, Higher Education Institutions Contact Information: www.grants.gov

78. Resources New Mexico Office of Recovery and Reinvestment Dona Cook Phone (505) 476-0078 www.recovery.state.nm.us Recovery.gov A site to help citizens track the spending of funds allocated by the American Recovery and Reinvestment Act www.recovery.gov Grants.gov A complete listing of federal grants www.grants.gov National Governor�s Association Analysis of the American Recovery and Reinvestment Act http://www.nga.org/Files/pdf/ARRAANALYSIS.PDF New Mexico Congressional Delegation An Integrated Guide to the American Recovery and Reinvestment Act http://nmlegis.gov/lcs/lcsdocs/ARRP%20Guide%202009.pdf National Congress of American Indians A Summary of Benefits for Native American Communities in the Stimulus Bill www.indiancountryworks.org Staterecovery.gov A service of the Council of Governments to help states identify potential funding opportunities and share best practices http://www.staterecovery.org/