Statewide Energy Compatibility Project Funding Opportunities

1. Statewide Energy Compatibility Project Funding Opportunities Sandra Gaiser, AICPRegional Planning Manager Mid Region Council of Governments (MRCOG)Office 505-724-3645sgaiser@mrcog-nm.gov October 25, 2018 NM Infrastructure Finance Conference

2. OEA works with communities who are facing potential shifts in economic stability because of changes within the defense industry and provides grants in the following areas: • Base Closure • Base Realignment • Base Reuse • Compatible Use: Statewide Energy Compatible Project • Defense Contractor Transitions • Federal Assistance Coordination http://www.oea.gov/ Funding Source:Department of DefenseOffice of Economic Adjustment (OEA)

3. Five Military Facilities in New Mexico KirtlandAFB WhiteSandsMissileRange HollomanAFB CannonAFB MelroseAFR

4. OEA Timeline – Statewide Energy Project • 2008 – MRCOG awarded $495,000 grant to manage Kirtland Air Force Base Joint Land Use Study (KAFB JLUS) • 2011 – MRCOG received $132,000 grant for KAFB Implementation Report • 2017 – MRCOG awarded $699,451 for Statewide Energy Compatibility Grant • 2018 – MRCOG hires Matrix Design Group to oversee the project Why MRCOG

5. Two-year grant from the Office of Economic Adjustment (OEA) • Develop a state-wide process that will identify existing and potential conflicts with the siting of energy facilities. • Focus on energy compatibility, promoting economic development, protecting both public health, safety as well as the operational missions of the military. • Promote coordination with local governments, military facilities and energy developers. • Facilitate better communication between the entities and promote economic development throughout the state. • Development of a web-based tool to identify areas of potential conflict. The Project:A Statewide approach to siting energy projects

6. “Air Force training route cuts possible wind turbine numbers: the military training route has displaced 61 of 114 wind turbine locations on state trust land. “ Mountain View Telegraph 3/23/2018 Why is this project important to New Mexico? El Cabo also pays a total of $1.5 million annually to the state in lieu of taxes and for leases with eight private landowners, amounting to $37.5 million over the 25-year life of the project. “El Cabo [located in Torrance County] pays a total of $1.5 million annually to the state in lieu of taxes and for leases with eight private landowners, amounting to $37.5 million over the 25-year life of the project”. Albuquerque Journal 5/27/2018 “$3.1 billion Defense Spending FY 2015 in New Mexico”. Office of Economic Adjustment

7. Wind Development Spending in NM Defense Spending in New Mexico # 32 in Nation - $3.1 Billion spent in State #14 in Nation - 3.4% of State GDP 0.8% - % of total U.S. Defense Spending $1,475 per resident spending Source: Office of Economic Adjustment – FY2015 Spending in New Mexico • New Mexico added 571 MW in 2017 – 51% increase from 2016 • 1,682 MW of wind online, a total investment of $2.9 billion • 2017 direct & indirect jobs supported: 3,001 to 4,000 • Total capital investment through 2017: $2.9 billion* • Annual land lease payments*: $5-10 million *calculations based on national & state averages Source: American Wind Energy Association (AWEA)

8. Defense Spending in New Mexico by Counties

9. Sandra Gaiser, AICP • Regional Planning Manager and Project Manager • Mid-Region Council of Governments • Office 505-724-3645 • sgaiser@mrcog-nm.gov • David Wilder, RA, PMP • David P. Wilder, RA, PMP, Executive Associate • Matrix Design Group, Inc. • Office 443.274.6098 | Mobile 937.564.3731 • David_Wilder@matrixdesigngroup.com Contacts