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Rapid Prototyping - DOC

VIEWS: 51 PAGES: 47

									                         Northern New Mexico Regional
                         Economic Development Initiative




Green Cluster Strategy for Northern New Mexico

                      Submitted to Los Alamos County
              by the Regional Development Corporation

                                          February 2010
Table of Contents

     I.      Executive Summary                    3

     II.     Introduction                         4

     III.    Recommendations                      5
             A. Cluster Development Strategy      5
             B. Value Chain Strategy              9
             C. Green Building Strategy           15
             D. Policy Strategy                   18
             E. Human Capital Strategy            19
             F. Summary Graphic                   20

     IV.     Characterization of the Cluster      22
             A. Employment by Cluster Segment     22
             B. Value Chain Analysis              25

     V.      Regional Competitiveness             26
             A. National Standing                 26
             B. New Mexico’s Green Strategy       28
             C. SWOT Analysis for the Region      29

     VI.     References                           30

     VII.    Appendix A: Potential Projects       33

     VIII.   Appendix B: Matrix of Stakeholders   34




                                                       2
I. Executive Summary
Northern New Mexico’s Green Cluster is in the pre-cluster or emerging cluster stage, where
independent firms are just beginning to form linkages with each other and with other resources in
the industry. Numerous benchmarks will need to be achieved for the Green Cluster to mature:

         Better linkages among companies and among companies and institutions
         Strengthening weak parts of the value chain, especially manufacturing and
          marketing/distribution
         Increased entrepreneurial activity and start-ups
         More knowledgeable and specialized suppliers and support services
         Experienced workforce
         Strong support systems, including non-profits, incubators, mentors, networks and funding
          sources

To achieve these milestones associated with moving the Green Cluster from an early to a more
developed stage, this Cluster Strategy makes numerous recommendations in five primary areas,
summarized in the table below. Recommendations are planned for implementation by specific
partners and leaders, each of whom has an important role to play in growing and strengthening the
Northern New Mexico Green Cluster.

                        RECOMMENDATIONS                                                PARTNERS AND LEADERS
A. Cluster Development Strategy
   1. Regional Green Cluster Development Program                               Santa Fe Business Incubator
       a. Partnership program between ABQ and NNM companies
       b. Increase access to funding, including later-stage opportunities
    2. RenewSF Cluster Modeling Project                                        LANL/SNL, REDI, RDC, regional renewable
                                                                               energy businesses, WildEarth Guardians
B. Value Chain Strategy
   1. Business creation, expansion and attraction for weak areas               REDI
   2. Feasibility work on the following potential projects:                    REDI, Manufacturing Extension Partnership
     a. Renewable Energy Testing and Certification                             Private sector partners*
     b. Rapid Prototyping                                                      Private sector partners*
     c. Solar Rack Manufacturing                                               Private sector partners*
C. Green Building Strategy
   1. Beta test site for green technologies                                    Santa Fe Area Homebuilders Association
D. Policy Strategy
   1. Renewable Energy Financing Districts                                     REDI, NM Assoc. of Counties, Coalition for
                                                                               Clean & Affordable Energy
   2. Public Relations Campaign                                                Same as above, Santa Fe Bus. Incubator
   3. State of NM Solar Product Guarantees                                     REDI
E. Human Capital Strategy
   1. Seek federal & foundation funding for green workforce development        REDI
   2. Track and respond to green workforce needs                               REDI, Northern Area Local Workforce
                                                                               Development Board, green businesses
   3. Workforce training programs to support REDI and cluster strategies
     a. Lineman training program for green grid/smart grid                     REDI, Northern NM College, Kit Carson and
                                                                               Jemez electric cooperatives
     b.   Apprenticeship program with regional green businesses                REDI, regional colleges, The Masters
                                                                               Program Charter School, other high schools
*The names of private sector partners who have expressed interest in these projects are not disclosed in this report;
however, additional private sector interest and leadership is welcome.
                                                                                                                        3
II. Introduction
A. Background
The Northern New Mexico Regional Economic Development Initiative (REDI) is one of Los Alamos
County’s Progress through Partnering initiatives, funded by increased gross receipts tax revenue
from the change in Los Alamos National Laboratory’s (LANL) contractor status and in cooperation
with Los Alamos County, Rio Arriba County, Santa Fe County, Taos County, the City of Espanola,
the City of Santa Fe and the Town of Taos. REDI completed a Regional Economic Development
Strategic Plan in February 2009 which involved a four-cluster industry development approach. The
following report is a strategy for strengthening and growing the Green Cluster in northern New
Mexico.

Clusters are defined as groups of companies and institutions in a specific geographic region, linked
by interdependencies, offering products and services that are related. Because they are in one
particular region, they share many advantages including access to specialized resources, an
experienced workforce, local suppliers, networking and mentoring, knowledgeable markets, and
many others. The reason economic development theory and practice have focused on cluster
analysis is that clusters have been shown to create local economic benefits in three dimensions.
First, companies are more efficient because their suppliers and service providers are local and
knowledgeable. Second, a significantly higher level of innovation is possible within a cluster,
particularly when research institutions are involved. Third, entrepreneurial activity is enhanced by
virtue of the fact that suppliers, partners, mentors, and other services are available to start-up
companies.1


B. Methodology
The segments of the Green Cluster were defined in the REDI Plan as: Solar (including solar
thermal), Wind, Biofuels/Biomass, Green Building/Biotecture, and Energy Efficiency. A variety of
related services and suppliers also support the Green Cluster. The Green Cluster Strategy is
based on research of similar clusters and their success factors. Data characterizing the cluster in
Northern New Mexico was collected by Market Intelligence Solutions, LLC, and by Current-C
Energy Systems through the DecisionData package at Northern New Mexico Economic
Development District, the Council of Governments for northern New Mexico. Interviews were
conducted in person or by phone with fifteen individuals who are either active in or provide support
activities to the Green Cluster in New Mexico, and a survey was e-mailed to about 50 other
organizations in the same category, with a 1% response rate. Finally, a brainstorming meeting was
held with leading cluster group members.




1Solvell,   Orjan. The Cluster Initiative Greenbook, pp 6-7.


                                                                                                   4
III. Recommendations

A. Cluster Development Strategy
As with the REDI Technology Cluster, the
Green Cluster is in the pre-cluster or
emerging cluster stage, where
independent firms are just beginning to
form linkages with each other and with
other resources in the industry. Numerous
benchmarks will need to be achieved for
the Green Cluster to mature:

       Better linkages among companies
        and among companies and
        institutions                              Graphic taken from Promoting Competitiveness in Practice: An Assessment of
                                                  Cluster-Based Approaches by the Mitchell Group, Inc. for USAID, 2003
       Strengthening weak parts of the
        value chain
       Increased entrepreneurial activity and start-ups
       More knowledgeable and specialized suppliers and support services
       Experienced workforce
       Strong support systems, including non-profits, incubators, mentors, networks and funding
        sources

The following recommendations represent initial steps for moving the Green Cluster from an early
to more developed stage. Unless otherwise indicated, immediate implementation of these
recommendations and initiatives is suggested.

    1. Establish a Regional Green Cluster                                       Proposed Menu of Services
    Development Program at the Santa Fe                             Assistance with venture capital, loans and other
    Business Incubator to organize, develop                          funding
    and grow individual businesses and the                          Assistance with IP and patents
    cluster overall.                                                Assistance with technology commercialization
                                                                    Business plan assistance
                                                                    Access to a local council of business advisors and
    As a first step in developing a mature cluster,
                                                                     national industry professionals
    businesses in northern New Mexico’s green                       Access to incubator resources
    cluster recommended that a single                               Market research
    organization be identified to 1) strengthen the                 Referrals to other resources when necessary
    cluster through increased linkages among
    companies, institutions and support systems                           Additional Services to be Considered
    through networking and industry                                 Matchmaking of northern New Mexico and
                                                                     Albuquerque companies for partnership opportunities
    collaboration; and 2) provide customized                        Development of later-stage funding opportunities
    assistance to companies and entrepreneurs
    in the Green Cluster. The customized



                                                                                                                       5
assistance would entail the services listed above, and could be expanded to include other
services relative to private sector interest.

Given the capacity of organizations in the region, the Santa Fe Business Incubator (SFBI) is
best-positioned to develop a customized assistance program for the entire region. SFBI is
currently providing the above services to companies within the incubator, and could easily
expand these services to Green businesses throughout the region. Because of SFBI’s
expertise in technology commercialization, IP and venture capital, these services could also be
offered to businesses within the Technology Cluster, in conjunction with the New Mexico
Technology Council.

The proposal includes hiring a half to full-time person at SFBI to provide direct outreach to
regional green businesses. The position would customize services and resources to meet
individual business needs, and would also be responsible for networking and industry
collaboration activities to strengthen linkages within the Green Cluster. Having a single person
understand the challenges and needs of individual green businesses, as well as the cluster as
a whole, will result in a more strategic approach to strengthening and growing the cluster.

During the Green Cluster Strategy process, two additional business needs were identified that
could potentially be met under Regional Green Cluster Development at SFBI:

    A. Establishment of a partnership program between Albuquerque and northern
       New Mexico renewable energy companies.

        Throughout the Green Cluster Strategy process, partnerships with Albuquerque were
        frequently mentioned. Such partnerships could be extremely beneficial since
        Albuquerque has a strong concentration of renewable energy manufacturers, and
        northern New Mexico companies have little to no manufacturing presence. By allowing
        northern New Mexico installers and research and development companies to partner
        with Albuquerque companies, many opportunities arise, including:

            -    Access to purchasing power (buying discounts) through Albuquerque
                 companies that are manufacturers or buy directly from a manufacturer
            -    Access to financing secured by Albuquerque companies
            -    Use of registered electric engineers and other licenses maintained by larger
                 Albuquerque companies
            -    Addressing common business issues through mentor-protégé relationships

        Initially, potential partners in both Albuquerque and northern New Mexico would need
        to be identified for this program. If the private sector is interested in participating, either
        SFBI or REDI could assist with ―match-making‖ among the companies. Regular visits
        to larger companies in Albuquerque and other large markets can be arranged as part
        of this program.




                                                                                                     6
            B. Increase access to funding for existing green businesses, including later-stage
                funding opportunities.

                 With the recent economic downturn, renewable energy companies in northern New
                 Mexico have suffered. One company articulated the need to improve access to
                 potential funding sources that could help existing businesses stay afloat, ensuring the
                 survival of the cluster. Potential sources include various programs under the American
                 Recovery and Reinvestment Act, some of which may be funneled through state
                 agencies, such as Energy, Minerals and Natural Resources. ARRA funding sources
                 are probably best identified by the Regional Development Corporation and REDI,
                 which have expertise in federal grant programs. However, reliance on federal and
                 outside funding can also encourage dependency, and for this reason, increasing local
                 demand for solar and solar thermal installations through the Renewable Energy
                 Financing District is strongly encouraged. Please see page 18 for a discussion of
                 Renewable Energy Financing Districts.

                 Venture capital (VC) opportunities in New Mexico have increased greatly in New
                 Mexico over the past decade. In 2009, Epic Ventures reported that State Investment
                 Council commitments increased from less than $20 million in 1998 to over $350 million
                 in 2008. New Mexico venture capital firms grew three-fold over the decade, with
                 activity volume increasing eight-fold to nearly $70 million2. The New Mexico
                 Mezzanine Fund is the only late-state fund in the state, and access to later-stage
                 capital remains centralized in the Bay Area and Boston, with some activity in the Twin
                 Cities. It is recommended that a strategy for developing linkages to later-stage funding
                 opportunities be developed. In the Bay Area, linkages often occur through service
                 providers like attorneys. The firms Peacock, Meyers and Adams (Albuquerque) and
                 Brownstein, Hyatt, Farber and Shreck (numerous offices in the southwest) work in the
                 areas of Intellectual Property (IP) and Technology. The firm’s involvement in New
                 Mexico’s VC community make it a potential partner for creating linkages to later-stage
                 capital in larger markets. The New Mexico Venture Capital Association and the Santa
                 Fe Business Incubator should also be partners, and potentially leaders, of this
                 initiative. In addition, the New Mexico Technology Leadership Council should play a
                 role, as technology companies will also need access to later-stage capital.


       2. Implement the RenewSF Cluster Modeling Project throughout the entire REDI region
       to develop data and modeling that will inform future investments in the cluster, as well
       as strategic decisions for individual cluster businesses.

       In 2009, Los Alamos National Laboratory, Sandia National Laboratories, WildEarth Guardians
       and several Santa Fe renewable energy businesses developed a proposal to model the
       requirements of moving Santa Fe County toward energy sustainability. The project would
       develop a computer simulation model based on raw energy consumption data (electric, natural
       gas, propane, wind and solar) and flow modeling analysis as a roadmap toward generation and
       delivery of 100% renewable energy. The proposal was submitted as a leveraged project to the

2
    Epic Ventures. ―The State of Venture Capital in New Mexico.‖


                                                                                                       7
  New Mexico Small Business Assistance program, but was not funded. The schematic on the
  next page shows the type of data that would be collected and integrated into the model,
  including a map-out of connections to the grid and the optimal mix of renewable sources.

  In collaboration with REDI, Mariann Johnston and Lisa Henne of the LANL Community
  Programs Office; Belinda Padilla of LANL Technology Transfer; Loren Toole, one of the
  original principal investigators for the project; and David Griscom of the Regional Development
  Corporation plan to re-scope the proposal with the intent of expanding it to the entire REDI
  region and incorporating market research conducted through the 2010 LANL MBA program.
  The data and modeling produced by this project would be extremely beneficial to the
  independent renewable energy businesses in the region, as well as the cluster overall, in terms
  of identifying strategic actions and projects.



 Tech. Requirements                                       Generation                                      Policy Requirements


Production Infrastructure                          %Solar, %Wind, % Gas,                                         Legislation
                                                      %Geothermal,
                                                   %Propane, %Electricity
  Grid Interconnection                                                                                           Financing
                                                   Spatial Configuration by
                                                         Technology


                                                   Forcing (time series data
                                                   for solar insolation, wind
                                                         velocity, etc.)




                                                      100% Renewables

         Costs                                                                                                    Benefits



               Graphic taken from LANL, SNL and NMSBA. ―Santa Fe’s Transformation to Renewable Energy Technologies:‖




                                                                                                                               8
B. Value Chain Strategy
Northern New Mexico’s Green Cluster is currently concentrated in the services sector for green
building and solar/solar thermal installations. There is some research and development activity in
solar, solar thermal and wind, complementing and overlapping with the R&D strength of the
Technology Cluster. Yet all other parts of the value chain are exceedingly weak, especially
manufacturing and marketing/distribution. This strategy makes the following recommendations for
strengthening weak parts of the value chain, in order to mature the cluster overall:

    1. Target weak parts of the Green Cluster value chain for business creation, retention
    and attraction efforts through REDI.

    Gaps in the value chain of the Green Cluster include manufacturing, prototyping and marketing
    and distribution. Green businesses who participated in the REDI Plan (2008), felt strongly that
    local start-up and expansion efforts should be prioritized over recruiting new businesses to the
    region. To implement this recommendation, REDI and the Regional Green Cluster
    Development Program will need to assess whether existing machine shops, installers and
    research and development companies have the capacity or desire to grow or develop spin-offs
    to fill gaps in the value chain. If not, business attraction remains a useful tool to recruit small
    manufacturers and marketing and distribution businesses and develop capacity in these areas.
    Emphasis should be placed on relocating companies that will hire and train local workers,
    encourage spin-offs to grow the cluster, and bring new expertise to the region, such as storage
    technologies and devices.

    2. Pursue feasibility work on potential projects, listed below, that would strengthen
    weak segments of the Green Cluster value chain, including prototyping, manufacturing
    and marketing/distribution.

    Funding for feasibility work will be sought by REDI, in cooperation with the NM Manufacturing
    Extension Partnership and private sector entities who have expressed interest the following
    projects. Following the feasibility phase, REDI and private sector partners can determine
    whether to seek funding for these projects as start-ups, business expansions, or as state or
    government sponsored initiatives.

    A. Renewable Energy Testing and Certification

        Renewable energy technologies have testing and certification requirements to which
        federal and state tax incentives are often tied. New tax incentives and an increase in
        research and development activities have put a strain on the laboratories that test
        renewable energy equipment, resulting in delays as great as two years. Clearly, there is
        great concern about increased time-to-market if a new technology spends one to two years
        waiting to be tested and certified. The idea of developing a Renewable Energy Testing and
        Certification Center in northern New Mexico was posed during the Green Cluster Strategy
        process. Two distinct recommendations were made and are discussed below. The first is
        for small wind turbine testing and certification, and the second for a wide range of
        renewable energy technologies and demonstration projects. In either case, a testing



                                                                                                     9
         laboratory developed to the international standard of ISO/IEC 17025 would be required,
         which reportedly could take as long as two years3.

         Small Wind Turbines. While standards and certification of wind turbines have a long history
         in Europe, they have been slow to evolve in the US. The first standards for wind turbines
         were developed in Denmark, Germany and The Netherlands, evolving into international
         standards of the IEC (International Electrotechnical Commission). In 1988, the American
         Wind Energy Association (AWEA) developed a US standard, known as AWEA, as a lower-
         cost alternative to IEC. In 2006, work began at the National Renewable Energy Laboratory
         (NREL) in Golden, CO to establish a body to independently verify the performance of small
         wind turbines. The organization—the Small Wind Certification Council—was established in
         2008 and should begin accepting applications for certifications in early 2010.
         Manufacturers are expected to have their
                                                                      US Test Organizations for
         equipment tested under AWEA standards at                       Small Wind Turbines
         existing test organizations, and SWCC will
         certify the results.                                 Appalachian State University, NC
                                                                    Architectural Testing, MN
         Several wind turbine manufacturers in northern             Global Energy Concepts, WA
                                                                    Intertek, NY
         New Mexico have cited the distinct lack of                 National Renewable Energy Laboratory, CO
         small wind testing and certification centers               Pine Ridge Products, MT
         nationally as an opportunity to establish a small          Retlif Testing Laboratories, NY
         wind testing site to accommodate growing                   USDA-Agricultural Research Service, TX
         demand. In October 2009, NREL released an                  West Texas A&M University, TX
                                                                    Wind Energy Center, MA
         RFP for establishing new third party                       The Cadmus Group, MA
         verification/testing/certification centers across          The Wind Energy Institute of Canada
         the country. The RFP closed in December                    WindTesting.com, CA
         2009. According to several small wind turbine              Winward Engineering, UT
         manufacturers in New Mexico, this would be of
                                                                    Source: Small Wind Certification Council
         great value and would reduce the amount of                 http://www.smallwindcertification.org/pdfs/TestOrgs_122
         time needed to get their turbine to market.                309.pdf


         Wide Range of Renewable Energy Technologies and Demonstration Projects.
         The second recommendation was to consider a project that tested and certified a wide
         range of renewable energy technologies rather than narrow protocols. Such a center could
         be located on a single site that meets requirements for all technologies, or could have a
         primary site with some dispersed testing areas throughout the region. The center could
         incorporate demonstration projects that have been suggested during the Green Cluster
         Strategy process, including rural electric demonstration projects for green grid, smart grid
         and broadband, as well as green building and energy efficiency applications. While
         existing testing and certification centers do appear to be broadening their focus, none were
         identified that incorporated so many technologies and applications.

         While the idea has great potential, it is important to note that two major solar electric
         testing and certification centers have come on-line in the western US in the past two years,

3
 Minnesota Department of Commerce Office of Energy Security. ―Development of a Solar Rating and Certification
Laboratory in Minnesota.‖


                                                                                                                          10
            and that other states are also considering their own testing and certification centers. In
            2008, Underwriters Laboratories (UL), a product safety testing and certification company,
            opened a new, 20,000 square foot commercially focused PV testing and certification
            facility in San Jose, California. This UL Photovoltaic Technology Center of Excellence will
            provide indoor and outdoor certification and testing services via 14 test chambers and two
            solar simulators for PV modules and panels, as well as full pre-certification services
            including training and R&D.4

            In 2009, a collaboration between TUV Rheinland and Arizona State University (ASU)
            produced the new 40,000 square foot TUV Rheinland Photovoltaic Testing Laboratory
            (PLT) in Tempe. TUV-PLT replaced the former ASU-PTL, established in 1992, which was
            the first accredited photovoltaic qualification testing laboratory in the U.S. and one of only a
            few in the world. The new facility offers full system testing for all photovoltaic system
            components, including inverters, grid-tied electronics, controllers, motion and tracking
            devices, and wireless control electronics. Clients can also receive technical direction and
            testing on standards for newly emerging technologies such as concentrating PV,
            concentrating solar power, and building-integrated PV. The facility is part of a global
            network of TUV Rheinland’s photovoltaic testing and certification services. In the future,
            the company plans to move beyond photovoltaics to other green power technologies.
            Other partners on the project include Arizona Public Service (APS), which is providing
            space for outdoor endurance testing, and Science Foundation Arizona, which is helping to
            strengthen the university’s research infrastructure for commercialization of products and
            services.5

            Greater demand may lie within the solar thermal industry, where the Solar Rating and
            Certification Corporation (SRCC) administers a certification, rating and labeling program
            for solar collectors and a similar program for complete solar water heating systems. SRCC
            serves as a third-party certification entity in that it accredits ISO 17025-compliant
            laboratories and evaluates their test results and product data. However, only one of its
            accredited laboratories is located in the US (Florida Solar Energy Center in Cocoa, FL),
            with two others in Canada (Exova Canada Inc., Mississauga, Ontario and LabTest
            Certification, Inc., Richmond, British Columbia). A report by the Minnesota Office of Energy
            Security states that the federal government and at least 19 states link solar thermal tax
            incentives to SRCC certification. In 2009, the State of Minnesota considered developing its
            own Solar Rating and Certification Laboratory which would then be accredited through
            SRCC.

            Feasibility. The demand for a Renewable and Testing Center in New Mexico would have to
            be evaluated carefully, beginning with an assessment of whether or not the existing supply
            of testing laboratories, many of which are listed and discussed above, is adequate to meet
            demand. Furthermore, an assessment of testing lab expansions and start-ups is needed to
            determine competitors who are already in the pipeline. Another factor is whether a testing

4   McMahon, Sile. ―Underwriters Laboratories Establishes North American PV Testing and Certification Facility.‖

5Arizona State University Global Institute of Sustainability. ―World’s Most Advanced Solar Testing and Certification
Facility Opens Doors to Global Market.‖


                                                                                                                       11
and certification center could be profitable as a business venture, or would best be housed
at a college or other institution. The report on a solar rating and certification laboratory in
Minnesota, previously cited, concluded that its proposed venture would be state-
sponsored, and would be unlikely to support itself financially. In terms of start-up capital, it
is possible that USDA rural development funds could be drawn to such a project if it is
positioned as a test bed for rural energy and housing solutions while creating jobs and
impacting community development.

While the market for a testing and certification facility would be national and international in
scope, a policy recommendation was made during the Green Cluster Strategy process
which would create an in-state, captive market. This approach is used similarly in Florida,
where companies who want to qualify for state tax credits must have their products
certified by the Florida Solar Energy Center.

The recommendation, suggested and previously presented to Governor Richardson’s
office by Rusty Schmit of Clean Switch and Gary Goodman of the Goodman Realty Group
in Albuquerque, is to have the State of New Mexico back the product guarantees made by
New Mexico solar manufacturers. Companies wanting to obtain the backing from the state
would be required to test their products at the proposed Renewable Energy Testing and
Certification Center. This proposal would not only create demand for a center from within
New Mexico, but would also generate a tremendous amount of renewable energy
development and economic stimulus to the State. A State of New Mexico PV Loan
Guarantee could be structured as follows:

1. Participating banks would make loans of approximately 55% of the system cost at 5%
   interest with a twenty-year amortization. The interest would be adjusted after five
   years and the loan would become due after ten years. Several banks have indicated
   they would be interested in participating.
2. The system itself would be posted as collateral for the loan.
3. The loan payments would always be less than the cash flow from the RECs and the
   value of the electricity produced. Generally, a 55% loan will provide better than 1.2
   times coverage of the loan payments. In short, as long as the sun shines, if the bank
   had to take over the system, there would be enough cash flow to cover the loan
   payments. As long as the down payment is large enough, there is virtually no risk that
   the State guarantee would be used.
4. The system would have to be adequately insured and a maintenance agreement
   would have to be in place.
5. The State would charge a point or two for the program which would cover all costs.
6. Personal and other guarantees could also be required.
7. Eventually the banks would become comfortable with the collateral and the loans, and
   the loans would continue without the guarantees.




                                                                                             12
B. Rapid Prototyping

   The idea of developing prototyping and/or rapid prototyping capacity in northern New
   Mexico was raised in the REDI Plan. In the Plan, prototyping was viewed as an alternative
   to manufacturing, which has never taken hold in northern New Mexico due to the region’s
   distance from major transportation infrastructure and markets, and due to poor cultural fit
   in some communities. Prototyping, on the other hand, is better aligned with Los Alamos
   National Laboratory and the concentration of technology companies in the research and
   development segment of the value chain.

   During the Green Cluster Strategy process, prototyping was mentioned as a potential
   business opportunity that would support both Green and Technology businesses. As
   discussed below, preliminary research indicates that rapid prototyping may have greater
   potential over more conventional, machine-based prototyping.

   Rapid prototyping      Prototyping Technologies             Base Materials
   refers to a non-       Selective Laser Sintering (SLS)      Thermoplastics, metals, powders
   labor intensive,       Fused Deposition Modeling (FDM)      Thermoplastics, eutectic metals
   additive               Stereolithography (SLA)              Photopolymer
   technology that        Laminated Object Manufacturing (LOM) Paper
                          Electron Beam Melting (EBM)          Titanium Alloys
   transforms virtual     3D Printing (3DP)                    Various Materials
   designs from
   computer aided design (CAD) or animation modeling software into thin, virtual, horizontal
   cross-sections and then creates successive layers until the model is complete. The layers
   or cross-sections can be liquid, powder, or sheet material which are joined or fused
   together to create the final shape. The primary advantage of rapid prototyping is the ability
   to create almost any shape or geometric feature. Rapid prototyping typically takes several
   hours to several days.

   Supply. There are numerous existing companies and machine shops in Albuquerque, Los
   Alamos, Santa Fe and Espanola that currently offer design and prototyping services. In
   rapid prototyping, however, the New Mexico Manufacturing Extension Partnership (MEP)
   reports that New Mexico’s only rapid prototyping machine was located at Sandia National
   Laboratories, but was given to the University of Texas within the past few years. MEP
   unsuccessfully tried to retain the machine in New Mexico by locating it at Central New
   Mexico College in Albuquerque for workforce training. Apparently, no rapid prototyping
   capacity exists in New Mexico today.

   Demand. While there are many small technology businesses at the Santa Fe Business
   Incubator, the Santa Fe Complex and throughout the region, these businesses alone do
   not generate enough demand to support a rapid prototyping business. Therefore, any
   private company offering rapid prototyping would need to capture demand from LANL and
   SNL, its largest potential customers. Over time, small, private technology companies who
   now outsource their rapid prototyping needs would likely use the service. A more detailed
   market analysis should identify the companies that currently provide rapid prototyping
   services to LANL and SNL, and should survey local technology companies on their rapid
   prototyping needs, current vendors and propensity to pay for the service locally. Because


                                                                                              13
   there are no competitors for rapid prototyping in New Mexico, it is likely that the business
   could reach technology companies in Albuquerque; in Farmington, where MEP has
   indicated there is a demand in the oil and gas industries; and in other parts of the state.

   Business Model. If rapid prototyping is pursued as a private sector opportunity, it can be a
   start-up business or added to the services of an existing machine shop. In either case, a
   rapid prototyping machine would need to be purchased. Costs vary widely depending on
   the technology, but it appears that units are available under $60,000. Another option is to
   establish rapid prototyping capability in northern New Mexico through an institution, such
   as a college or community college. If a rapid prototyping machine were purchased, it could
   be housed at a college and used for educational/workforce training purposes, as well as to
   meet the needs of technology companies throughout the state.


3. Solar Rack Manufacturing

   While manufacturing has not taken hold in northern New Mexico, some communities have
   attempted to launch manufacturing projects in the past and remain interested in pursuing
   future opportunities. In all industries, the manufacturing segment of the value chain is
   underdeveloped in northern New Mexico, and additional manufacturing activity would help
   to diversify the economy and would provide higher-paying jobs for blue collar workers.
   While heavy manufacturing would be a poor cultural fit for the arts communities of Santa
   Fe and Taos, both have shown considerable support of green manufacturing businesses.
   In fact, Taos and Questa were engaged in an effort to bring Spire Corporation, a solar
   panel manufacturer, to Questa’s industrial park. The effort failed despite considerable state
   and local incentives.

   During the Green Cluster Strategy process, solar racks and inverters were identified as
   products that are relatively footloose which could be produced in northern New Mexico.
   Inverters are predominantly made in Germany, but manufacturing is growing in North
   America (Solectria and Xantrex). Solar racks are currently manufactured and shipped all
   over the US. Because discussions about manufacturing of renewable energy products in
   northern New Mexico revealed significant private sector interest in solar rack
   manufacturing, solar racks are discussed exclusively here. However, either product will
   require feasibility work and inverters may be considered in addition to, or instead of, solar
   racks.

   Supply. In New Mexico, solar racks are currently manufactured by Uni-Rac, Zomeworks,
   Array Technologies, and Direct Power & Water in Albuquerque. MEP believes that the
   communities of Portales and Clovis in southeast New Mexico may be pursuing solar rack
   manufacturing, as well.

   Demand. Past efforts to establish manufacturing in northern New Mexico have proven that
   transportation costs are cost-prohibitive. Thus, MEP believes that the market for a northern
   New Mexico product would have to be regional and rural. MEP suggests talking to New
   Mexico companies that make and install solar panels, including Sacred Power
   Corporation, Advent Solar, Schott Solar and Emcore, as well as construction companies.


                                                                                               14
        Rural electric cooperatives in New Mexico and throughout the southwest would be a good
        potential market, particularly as green grid/smart grid initiatives come on-line, new solar
        incentives are developed, and the Renewable Energy District financing becomes more
        widely available at the County level.


        Business Model. Solar rack manufacturing in northern New Mexico could be initiated as a
        start-up business or a new location or product line for an existing business. Locating the
        project on tribal land, whether or not the business is owned and operated by the Tribe or
        its development corporation, appears to have considerable advantages in that there is
        currently substantial federal funding at USDA for tribal renewable energy projects. Land
        costs may also be lower and more negotiable on tribal lands.

        Feasibility. A feasibility study would be required to show that northern New Mexico could
        produce solar racks at competitive pricing given transportation, energy, land and labor
        costs. If the project were located on tribal land, some costs may be minimized by current
        USDA funding opportunities for solar projects on tribal lands, and by reduced land costs in
        general.


C. Green Building Strategy
This strategy recognizes Green Building as a strong cluster segment, with strong private sector
leadership from the Santa Fe Area Homebuilders Association (SFHBA), whose membership
encompasses the REDI region. Green Building is becoming increasingly integrated with the
Solar/Solar Thermal segment of the cluster, by virtue of some solar R&D and installation
companies being members of SFHBA. The following recommendation and potential initiatives will
strengthen this cluster segment and market northern New Mexico as a national and international
leader:

Establish northern New Mexico as a center of innovation in Green Building and a beta test
site for green building technologies.

During the Green Cluster Strategy process, SFHBA posed the idea of establishing northern New
Mexico as a beta test site for new green technologies for the home. Within the SFHBA, which
includes the entire REDI region, a ―green guild‖ of builders has formed and is wiling to test new
green technology in the homes they build. The greatest challenge to implementing this
recommendation is that the majority of these homebuilders specialize in custom homes, for which
there is currently no demand. In the past, custom home builders in Santa Fe and Taos have
worked with clients who are concerned about energy efficiency and are willing to try out new,
innovative products. However, with the economic downturn and the slump in home sales, it is
unclear when the market for custom homes will improve. In the meantime, production builders
appear to be taking advantage of the demand for new, affordable housing stock in Santa Fe. The
idea of beta testing new technology in affordable homes is clearly ripe if the production builders
agree to it, or if more of the custom builders become engaged in the affordable home market.



                                                                                                 15
Regardless of the housing market, the region can still be marketed as a center of innovation for
green building. Santa Fe (Pueblo) Style is an internationally recognized brand, and innovative
building techniques such as biotecture (earthships) and passive haus have notoriety within the
green community. Several well-known individuals associated with green building on a national and
international level live and work in, or are associated with, Santa Fe, Taos and northern New
Mexico. In addition to Steve Thomas of This Old House (PBS’ home improvement program), who
recently moved to Santa Fe but is not yet affiliated with SFHBA, these individuals include:

       Ed Mazria is a former Santa Fe architect and Executive Director of Architecture 2030,
        which issues the 2030 Challenge. The 2030 Challenge calls for all new buildings and
        major renovations to reduce their fossil-fuel GHG-emitting consumption by 50% by 2010,
        incrementally increasing the reduction for new buildings to carbon neutral by 2030. The
        2030 Challenge has been widely adopted throughout the building industry and
        incorporated into city, state and federal legislation. On December 19th, 2007, Congress
        passed, and the President signed, the Energy Independence and Security Act of 2007,
        requiring that all new and renovated federal buildings meet the 2030 Challenge targets.

       Ron Jones is the former President of the Central New Mexico Homebuilders Association
        and is considered to be the father of green building within the National Association of
        Homebuilders. He currently publishes Green Builder Magazine which is sold at Home
        Depot. Ron maintains his affiliation with SFHBA.

       Michael Reynolds is a Taos-based architect and father of Earthship Biotecture. A critic of
        the architecture profession for its failure to deal with the waste that building design creates,
        he pioneered the design and construction of homes from everyday trash items. The
        Greater World Community in Taos showcases his designs. Reynolds also developed and
        markets earthships in a box that can be assembled by anyone, anywhere in the world.

       Joaquin Karcher is a German architect who founded Zero E Design in Taos. Zero E
        Design’s new line of residences, called Zero E Homes, are designed and built according to
        the German Passive Haus approach, the world’s most stringent and advanced energy
        standard. This approach is distinct from passive solar of the 1990s and goes far beyond it
        in energy savings. A Zero E Home achieves a HERS rating of 30 and below before
        installing a PV system and is by far the most energy efficient home available in the
        Southwest. Joaquin also co-authored the Earthen Materials Building Code which has been
        adopted by the State of New Mexico and IBC (International Building Code). He had been
        elected to the board of the US Green Building Council New Mexico Chapter which he
        helped to establish.

SFHBA is also proposing two specific projects to LANL’s NM Small Business Assistance Program,
which could be used to generate additional recognition of northern New Mexico green building.
These include a challenge to create smaller, more efficient solar thermal panels that could greatly
expand the number of homes using renewable energy, and development of a home energy rating
system that would square up existing systems and properly model passive solar and earthen-built
homes to qualify for tax credits.




                                                                                                     16
The specific ways in which northern New Mexico could be marketed as a center of innovation for
green building are not yet defined, and will be partly dependent on market demand and SFHBA’s
work with LANL. At a minimum, the marketing effort could begin with the SFHBA green guild
hosting a blog and social networking on the REDI website to inform national and international
audiences about their efforts, and to advertise the potential to purchase a northern New Mexico
home in which new green products would be beta-tested. REDI could sponsor the costs associated
with developing, hosting and staffing these portions of the website. Beyond this, REDI and SFHBA
could consider the following collaborations:

       Apply for affordable housing grants, including ARRA, to fund affordable housing that beta-
        tests green technologies
       Integrate the efforts of SFHBA in Design Week, High Altitude Thinking and other events
        that will attract national and international audiences to the region
       Form a ―think tank‖ around green products that could help identify laboratory technology
        for commercialization, generate start-ups, mentor small businesses and sponsor youth
        product development competitions
       Partner with community colleges to conduct research and development, product design
        and testing in the following areas of expertise:

        -   Santa Fe Community College’s Sustainable Technologies Center (biomass, energy
            efficiency, solar)
        -   Northern New Mexico College (energy storage, traditional building techniques)
        -   UNM-Taos (solar technology and traditional building techniques)

The efforts of SFHBA have synergy with the Code Green Energy Innovation Laboratory, a project
of the Santa Fe Innovation Park. Code Green is a proposed user-centered residential consumer
lab for new energy products and systems whose initial phase will be a residential pilot project that
includes retrofits and new builds. The focus is on studying human interactions with green
technology. Code Green is a collaboration with the Business Innovation Factory, a national leader
in systemic and business process innovation, located in Providence, RI. Should the Code Green
Energy Innovation Laboratory be funded by pending Department of Energy grants, there may be
opportunities for SFHBA beta-test homes to be used in the Code Green pilot project.




                                                                                                  17
D. Policy Strategy

New Mexico has a strong suite of renewable energy incentives, some of which have positioned the
state as a leader. However, the state is held back by several factors which also hinder adoption of
renewable energy at the regional and state levels:

       Lack of incentive programs that greatly reduce or eliminate the upfront costs of renewable
        energy installations
       Lack of public knowledge about renewable energy/energy efficiency and related incentives
       A weak private sector from which to grow the industry
       Competition from all other states in the US, which are pursuing and developing renewable
        energy, clean energy and/or ―green‖ clusters

The following policy recommendations are made to overcome these barriers in northern New
Mexico, and establish the region as a competitive force in renewable energy.

    1. Adopt versions of the Santa Fe County Renewable Energy Financing Districts
    throughout the REDI region.

    In 2010, Santa Fe County plans to adopt the Renewable Energy Financing District, made
    possible by key legislation passed in the 2009 NM Legislative Session (SB 647: Renewable
    Energy Financing District and HB 572: Solar Energy Improvement Special Assessment Act).
    This policy will be the first in its kind in New Mexico to eliminate the high upfront costs of
    renewable energy improvements for a home or business. The County will establish a special
    assessment district for repayment of renewable energy improvements which residents and
    businesses can opt into voluntarily. Qualified photovoltaic, solar thermal, wind and geothermal
    systems will be eligible; quality control standards for all systems are currently being developed.
    Property owners and businesses will also qualify for existing tax credits and Renewable
    Energy Credits (RECs) through PNM for which they were previously eligible. Not only will this
    policy effect widespread adoption of renewable energy, it will create strong, long-term local
    demand for renewable energy businesses in the region.

    This strategy proposes that the RDC, through REDI, the New Mexico Association of Counties,
    and possibly Coalition for Clean Affordable Energy, take the lead in assisting local
    governments throughout the region in adopting legislation similar to Santa Fe County’s
    Renewable Energy Financing District.

    2. Develop a public relations campaign to educate home and business owners about
    renewable energy, energy efficiency and the benefits and incentives for each.

    While considerable information is available about renewable energy, energy efficiency, and
    their associated benefits and incentive programs, there has not been a public relations
    campaign which provides a simple, concise message to the public. As a result, the majority of
    home and business owners will pass up opportunities to use renewable energy simply because
    they do not have the time to research it. This strategy recommends developing a public
    relations campaign to educate the general public about the cost savings and benefits of


                                                                                                   18
    renewable energy installations and energy efficiency measures and retrofits. Secondarily, the
    public relations campaign will simplify information about incentive programs and tax rebates so
    that the public can easily access them. Ideally, this recommendation should be implemented
    following adoption of the Renewable Energy Financing Districts throughout the region, to
    stimulate demand for renewable energy and energy efficiency improvements. Ideas for the
    public relations campaign include:

           Work with IATSE (International Alliance of Theatrical Stage Employees) to develop
            radio and television public service announcements
           Create fact sheets for insertion in utility bills
           Highlight information on REDI partner websites and in partner publications
           Visits by cluster representatives to private-sector entities such as banks and local
            utilities to encourage progressive internal policies which support renewable energy and
            energy efficiency

    This recommendation could be implemented by REDI in collaboration with the New Mexico
    Association of Counties and Coalition for Clean and Affordable Energy. However, because
    implementation is expected to occur in 2011 or beyond, SFBI’s work with green cluster
    businesses may help establish one or more policy/advocacy groups who could be responsible
    for implementation.

    3. Pursue State of New Mexico solar product guarantees as a state-level policy initiative.
    (see page 12)


E. Human Capital Strategy
A skilled workforce is easily recognized as the most important factor in growing a cluster in today’s
economy. Upon opening their new testing facility last year, Underwriters Laboratory acknowledged
that workforce training programs designed to support the facility were the most important factor in
their decision to locate in San Jose, CA. Although the national economy and the nascent state of
the Green Cluster in northern New Mexico may result in existing degree, certificate and workforce
programs training workers for export, it is important for the region to have well-established green
training programs, and to be able to mobilize and develop programs for larger companies, should
they materialize. Currently, various programs which support the Green Cluster exist at Santa Fe
Community College, Northern New Mexico College and UNM-Taos.

In 2009, the RDC unsuccessfully applied for two ARRA Department of Labor grants for green
workforce development which could have seeded a Human Capital Strategy for REDI. New Mexico
may not prevail in future rounds of funding, since successful applicants have included states and
communities where unemployment rates have soared and entire industries have faltered over the
past two years. Nevertheless, it is important for northern New Mexico to continue efforts to obtain
funding for green workforce development, which currently cannot be provided adequately by the
underfunded Northern New Mexico Area Workforce Development Board.




                                                                                                   19
While specific actions to support workforce development will materialize as other recommendations
in this Cluster Strategy are implemented, the following general recommendations are made:

    1. Continue to seek federal and foundation funding for workforce development
    initiatives in the Green Cluster.

    2. Work closely with workforce development, industry and educational institutions to
    track and respond to workforce needs as they materialize.

    3. Implement workforce training and human capital initiatives relative to projects being
    implemented as a result of REDI cluster strategies.

    Currently, two specific initiatives are being considered. The first is a training program for the
    rural electric cooperatives that would provide career advancement for existing linemen in the
    areas of fiber maintenance, smart meter installation and maintenance, specific equipment
    training (microprocessors), and smart grid home installation. This initiative should be
    implemented when funding is received by the cooperatives for smart grid/green grid or
    broadband. Northern New Mexico College has already been identified as a partner to
    implement the training program.

    The second program is an apprenticeship/internship program that places college and high
    school students with existing green businesses. The same initiative is planned for the
    Technology Cluster. REDI would provide ―match-making‖ and training for both the student and
    the business to establish expectations for the apprenticeship or internship. This opportunity will
    be rolled out to cluster businesses and colleges in mid 2010. A charter school (The Masters
    Program) slated to open at the Santa Fe Community College in 2010 will be the first high
    school to participate. The Masters Program curriculum will focus on nanotechnology and
    renewable technologies, and includes a mandatory service learning component, meaning that
    interns will be placed with businesses free of charge. Other high schools throughout the region
    will be invited to participate in the program on a rolling basis.


F. Summary Graphic
The graphic on the following page locates each recommendation in this document within the value
chain and segments of the Green Cluster, and also shows overlap with the Technology Cluster.




                                                                                                        20
                  Value Chain                                                  Green Cluster Segments                                Tech
                                                                                                                                    Cluster
                                                                 SOLAR             WIND            GREEN              ENERGY
                                                                                                  BUILDING        EFFICIENCY
     Retail                            Retail
(International)                      (Domestic)




   Export                            Wholesale




                   Distribution/
                    Marketing




                                                                  Solar
                  Manufacturing/                                  Rack
                   Generation                                     Mfg.


                                                                                                   GB Beta
                                                                                                   Test Site
                     Design/                                               Renewable Energy Testing & Certification
                   Prototyping
                                                                                              Rapid Prototyping




                   Research &
                  Development




       Public Policy                       Capital                              Human Capital                         Strategic Partnerships
       - Renewable Energy                  - Better mechanisms to               - Federal/foundation funding          - SFBI Regional Green
         Financing Districts                 provide funding to local RE          for workforce training                Cluster Development
       - State of NM solar product           businesses                         - Lineman training program            - Partnership program
         guarantees                        - Later-stage funding                  (green grid/fiber)                    between NNM and
       - Public relations campaign           opportunities                      - Green apprenticeships                 Albuquerque companies
         on RE, EE & incentives                                                 - Other training programs as          - RenewSF Cluster Modeling
                                                                                  needs materialize                     Project


              Existing concentration of companies                                 Proposed project to strengthen corresponding
                                                                                  part of the value chain
                                                                                                                               21
IV. Characterization of the Cluster
Currently, northern New Mexico’s Green Cluster is a pre or emerging cluster. A distinct set of
knowledge and skills exists, but associated commercial activity is weak. Organizations with
knowledge and skills are identifiable but do not share information; there is limited collaboration.
Northern New Mexico’s Green Cluster is formed of a group of related organizations, but they do not
as yet cooperate or collaborate in the ways that are necessary for a cluster to grow. Given that,
one of the recommendations contained in this document is to establish a ―center‖ for the cluster
through a Regional Cluster Development Program that can offer industry collaboration and provide
customized assistance to green businesses throughout the region.

A. Employment by Cluster Segment
The Green Cluster in Northern New Mexico contains approximately 200 related companies,
excluding supportive service organizations. As shown in the chart below, the majority of green
businesses are located in Santa Fe County, the region’s population center. However, upon
comparing the number of green businesses to the number of business establishments overall, the
highest concentration is in Los Alamos County, with nearly equal concentrations in Santa Fe and
Taos counties. Rio Arriba County lags behind the rest of the region in the number and
concentration of green businesses.

Number and Concentration of Green Businesses by County
        County            No. Green        Total No. Business                 % Green
                         Businesses          Establishments                  Businesses
 Los Alamos                    20                  464                         4.31%
 Rio Arriba                    14                  839                         1.67%
 Santa Fe                     145                 5643                         2.57%
 Taos                          33                 1395                         2.37%
Green business data compiled from Appendix B: Matrix of Stakeholders, REDI Plan, NM Green
Collaborative Database; No. of total business establishments from NM LASER (2008)

                                                                                      By cluster segment,
                                 Green Businesses by Cluster Segment
                                                                                      the largest numbers of
              Other                                                                   businesses fall in the
         Recy cling                                                                   categories of Solar,
            Utilities                                                                 Green Building and
     Env ironmental                                                                   Biotecture, and
  Energy Efficiency                                                                   Environmental
   Water Efficiency                                                                   Consulting.
     Green Building                                                                   Environmental
  Biofuels/Biomass                                                                    Consulting is the
              Wind                                                                    largest cluster
        Geothermal                                                                    segment, with 57
              Solar
                                                                                      companies in
                        0   10             20          30          40   50      60    Environmental
                                                                                      Services and 22 in
  Data compiled from Appendix B: Matrix of Stakeholders, REDI Plan, NM Green          Water Efficiency. Total
  Collaborative Database


                                                                                                          22
employment is approximated at over 650, with most companies based in Santa Fe, Los Alamos, or
Espanola. (See Appendix A for detail) These businesses consult for various governmental entities
and for Los Alamos National Laboratory (LANL). The Environmental Consulting segment is
important to the cluster in that it provides a solid base of support services, connections to LANL
and research and development activities, and can be a strong advocate for Green Cluster
development and growth. Nevertheless, Green Cluster recommendations are focused on the more
private-sector driven segments of the cluster that have potential for growth and diversification.
These include Solar, Green Building and Energy Efficiency, for reasons described below.




A recent study by the National Governors’ Association (NGA) entitled New Mexico – Profile of the
Green Economy makes the point that ―New Mexico’s green economy summary displays a diverse
array of green businesses with different levels of specialization.‖6 There are 15 green segments
highlighted in the NGA report. The size of the bubbles represents the employment size, while the
employment concentration, indicating relative strength and comparative advantage compared to
the US, is shown by the y axis. Transportation, for example, is 2.2 X more concentrated than the
national average. On the other hand, the change in concentration for Transportation is -1 (along
the x axis), so it is decreasing in concentration compared to the national average while those
categories in the ―positive‖ region of the x-axis are growing compared to the national average. In
other words, Energy Efficiency, Energy Generation, and Air and Environment are all currently high

6   Collaborative Economics for the NGA Center for Best Practices. ―New Mexico: Profile of the Green Economy.‖


                                                                                                                 23
compared to national norms, and growing. Green Building, and Water and Wastewater are
currently below national averages, but they are growing faster.


A similar analysis was performed for the REDI Region specifically:
Projected Job Growth in REDI Region, Compared to the Southwest Region




The graph above was created using NAICS codes commonly associated with ―green‖ businesses,
and shows projected job growth from 2007 – 2012 in the REDI region as a whole. The graph uses
jobs as a proxy for revenues, since employment numbers are easier to come by than revenues,
profits, or other indicators of economic viability. (The mining sector, although it contains
comparatively few jobs, was at that time projected to have the highest comparative growth.) The
industries with the greatest numbers of jobs, and projected slow but steady growth include
construction; professional, and scientific and technical services. A general picture of low job
projections indicates that, in all industries, growth is likely to be a challenge. 7




7Data Decision Resources. Southwest Region consists of New Mexico and the five abutting states of Arizona,
Colorado, Oklahoma, Texas, and Utah.



                                                                                                             24
B. Value Chain Analysis
The graph below shows what might be considered a typical ―emerging cluster‖ pattern, with peaks
in the service sector and valleys in processing, manufacturing and generation. The pattern is not
uncommon in northern New Mexico, where manufacturing facilities, ―job shops‖, and production
other than on a very small scale are almost unknown. Heavy manufacturing is not generally
welcome in the REDI region, with the possible exception of Espanola. Therefore it stands to reason
that the manufacturing and processing segments of the value chain are exceedingly weak. On the
other hand, if northern New Mexico wants to increase the average wages of its workers, REDI
should strive to support manufacturing for small niche markets, or for ―test‖ manufacturing for
products which may later serve other markets.


                                              Green Cluster Value Chain
   Number of Companies




                         180
                         160
                         140
                         120
                         100
                          80
                          60
                          40
                          20
                           0
                                                     ply                                             n             ll                                     ail
                          R&
                            D                                          pe         ing            tio           sta              ktg        sa
                                                                                                                                              le      t              ce
                                              Su
                                                 p
                                                                to
                                                                  ty
                                                                             e ss             ra            in               /M         le         Re           Sv
                                          /                ro              oc
                                                                                            e             n               ib          ho
                                    ial             /P                  Pr
                                                                                         en            ig             str
                                  er                                                   G             es           Di                W
                             at              si   gn                            fg
                                                                                     /             D
                                                                                               n/
                         M                De                                  M
                                                                                         at
                                                                                            io
                                                                                       gr
                                                                                    te
                                                                                In


Data compiled from Appendix B: Matrix of Stakeholders, REDI Plan, NM Green Collaborative Database



Another low point in the value chain is distribution and marketing, which is an area in which cluster
initiatives have been shown to have impact. Through cooperative branding and marketing
programs, and coordinated distribution systems, costs can be reduced for all businesses in the
Cluster while sales potentially increase through joint marketing efforts.




                                                                                                                                                                          25
V. Regional Competitiveness

A. National Standing
Prior to assessing regional competitiveness, it is important to understand where New Mexico
stands in relation to other US states within the Green Economy. The competitive picture nationally
is demonstrated in the table below. Although certainly not at the bottom in terms of clean
businesses and venture capital, New Mexico has a tough challenge ahead in the face of other
states’ current businesses and investment. On the other hand, it is succeeding, with job growth in
the clean energy sector, at 50.1%, far greater than that in other industries. According to an
Environmental Defense Fund fact sheet: ―The clean energy industry in New Mexico is booming (job
growth of 50.1%), much faster than the rest of the economy. By 2007, 577 businesses had
generated more than 4,800 New Mexico jobs in the clean energy economy... Venture capitalists
are investing $148 million in New Mexico’s clean energy businesses.‖8




8
  Environmental Defense Fund. ―Mapping the Green Economy: New Mexico.‖
http://www.edf.org/documents/9996_CleanEnergyJobs-NM.pdf


                                                                                               26
A more graphic representation is found in the following map and table. New Mexico ranks in the
―small, but fast-growing jobs‖ category in an examination of the clean energy economy as a share
of the state’s overall economy. Again, it is a challenge to compete with states which are much
larger and have greater resources, but yet New Mexico’s job growth makes the state viable.




                                                                                               27
B. New Mexico’s Green Strategy
According to The Governor’s Green Jobs Cabinet Report (2009), New Mexico has the 2nd best
profile for solar projects and the 11th best for wind in the North America. Our sparsely populated
state has large tracts of uninhabited land located at the intersection of three national transmission
grids offering the potential to provide substantial renewable power, products, and research to other
states.9 The combination of abundant natural resources, political leadership focused on economic
development, strong R&D activities and ARRA investments are rapidly accelerating job growth in
green sectors of the New Mexico economy. In New Mexico, the solar and wind generation and
manufacturing sectors have been particularly strong, and in the REDI region solar installers and
energy efficiency experts report that business is growing in response to appropriate incentives and
government programs, cost signals, and general interest in more environmentally-friendly products
and processes10.

The Green Jobs Cabinet Report identifies the following goals and strategies to grow New Mexico’s
green economy. The goals for which recommendations are contained in this strategy are flagged,
with specific recommendation numbers listed. Please note that green grid initiatives pertain to
REDI’s broadband strategy and are not addressed in this document.

GREEN JOBS CABINET GOALS AND STRATEGIES                                                       APPLIES TO   REC.
                                                                                                REDI?      NO.
1. Be the leader in renewable energy export                                                      Yes        A2
   Incentivize and stimulate RE growth, both electricity and biofuels
   Get our renewable energy to market
   Align incentives for utilities with the state economic development goals
   Provide a supportive regulatory environment
   Market and promote the state’s assets, accomplishments and vision

2. Be the center of the North American solar industry                                            Yes
   Stimulate the rapid growth of solar energy with predicable state incentives and programs
   Incentivize solar manufacturing                                                               Yes       B2&3

3. Lead the nation in green grid installation                                                    Yes
   Promote commercialization of new clean technologies
   Put focus on the green grid to leverage limited resources

4. Be a center of excellence in green building and energy efficiency                             Yes        C
   Develop a building energy efficiency renovation sector
   Maintain leadership in new construction of green buildings                                    Yes
   Grow our cluster of green building product manufacturers                                      Yes

5. Have a highly skilled and ready-to-work workforce                                             Yes        E
   Create an industry driven green workforce development strategy aligned with these goals:
    Develop green economy data and career framework
    Expand green job training programs across the state
    Provide customized just-in-time training solutions for growing green businesses

9
  Brendan Miller, Brenden, New Mexico Economic Development Department. “New Mexico Green Jobs Cabinet
Report.”
10 International Economic Development Council. The Climate Prosperity Handbook: Green Savings, Green

Opportunities, Green Talent, p. 56.


                                                                                                            28
C. SWOT Analysis for the Region
                       STRENGTHS                                                   WEAKNESSES
World-class natural resources. Solar, geothermal and          Do not currently understand relationship to the grid and
some wind in NNM*                                             role in generation
Substantial open land and good climate*                       Limited water availability*
Strong statewide incentives and tax credits*                  Difficult to get financing
Improved VC opportunities                                     No mid to later stage funding opportunities
Resources and services provided by SFBI are excellent         Lack of coordination among all organizations; lack of
                                                              understanding between public and private sectors
Strong support from philanthropic community                   Weak local demand
Strong political support at local, state & federal levels.*   NNM was once the leader in renewable energy &
                                                              sustainability. Now, we are behind the world in ―green‖
Green education and training programs at NNM colleges         Workforce (un)readiness*
Many working and retired PhDs in the area                     Experienced managers and marketing people are very
                                                              difficult to find or convince to move here
R&D capabilities are strong                                   Weak transition from the labs to the market
Green Building segment is strong: good national               Weak prototyping, manufacturing, marketing and
recognition, strong leadership with SFHBA, ―Santa             distribution
Fe/Pueblo style‖ and earthship brands
Tradition of ―indo-hispanic‖ architecture which is            Weak market research; lack of a market-driven strategy
indigenous, effective, efficient
Regional assets: Los Alamos is a braintrust – Taos is a       Weak branding/marketing of the region
hotbed of imagination
Deeply rooted and long-standing respect for the natural       General public is poorly educated about renewable
environment*                                                  energy
Progressive rural electric cooperatives and other industry    Weak private sector; too few entrepreneurs and weak
groups                                                        entrepreneurial climate*
                     OPPORTUNITIES                                      THREATS / GAPS / CHALLENGES
Renewable Energy Financing Districts                          Fierce competition from other states and regions*
                                                              Global recession*
                                                              Climate change*
Partnerships with Albuquerque companies                       State of NM appears more interested in attracting large
                                                              companies, rather than supporting local businesses
High-speed broadband                                          Lack of infrastructure in rural areas
NNM ―right-sized‖ green initiative can be a global model      Pricing for RE products from China, the Philippines, etc.
and lend itself to demonstration projects                     almost impossible to match here
Underutilized resources can be put to good use: manure,       Workforce issues: Need tradespeople, people with work
solid waste, glass, forest debris, tires, CO2                 ethic and a good primary education

* Also identified in the SWOT Analysis for The Governor’s Green Jobs Cabinet Report, 2009




                                                                                                                     29
VI. References

Arizona State University Global Institute of Sustainability. ―World’s Most Advanced Solar Testing and
Certification Facility Opens Doors to Global Market.‖ January 13, 2009.

Battelle, Technology Partnership Practice. Central Upstate New York’s Green Industry Sector:
Opportunities and Prospects. November 2007.

Brookings Institute Metropolitan Policy Program. Blueprint for American Prosperity: Unleashing the
Potential of a Metropolitan Nation. Clusters and Competitiveness: A New Federal Role for Stimulating
Regional Economies. April 2008.

Collaborative Economics for the NGA Center for Best Practices. ―New Mexico: Profile of the Green
Economy.‖ 2009. http://www.subnet.nga.org/downloads/GEStateProfiles/NEW%20MEXICO.PDF.

Craft Consulting Group. East Bay – Green Economy Industry Cluster Study: Building a Sustainable
Economy Based on Clean Technology. June 26, 2008.

Decision Data Resources, Birmingham, AL. Data and GIS package provided by North Central New Mexico
Economic Development District.

de Morsella, Tracey. ―10 Green Building Studies You Should Know About.‖ The Green Economy Post.
April 17, 2009. http://greeneconomypost.com/green-building-studies-3879.htm

DeWitt, Ann; Nguyen, Mina; Pham-Vu, Anh; Telyan, Christine; Zotova, Anastasia. ―Bio-Ethanol Cluster in
Brazil.‖ Microeconomics of Competitiveness. May 2009.

Dierdorff, Erich; Norton, Jennifer; Drewes, Donald; Kroustalis, Christina; Rivkin, David; Lewis, Phil. Greening
of the World of Work: Implications for O*NET – SOC and New and Emerging Occupations. February 12,
2009.

Economic Development America. Spring 2004.

El Beyrouty, Kareen; Meimanaliev, Adilet-Sultan; Petrosyan, Lillt; Singh, Diva. ―Germany’s Photovoltaic
Cluster.‖ Microeconomics of Competitiveness. May 2009.

Environmental Defense Fund. ―Clean Energy Jobs in New Mexico.‖
http://www.edf.org/page.cfm?tagID=44108

Environmental Defense Fund. ―Mapping the Green Economy: New Mexico.‖
http://www.edf.org/page.cfm?tagID=34065&state=NM

Epic Ventures. ―The State of Venture Capital in New Mexico,‖ presentation to the Coronado Ventures
Forum. September 17, 2009.

Global Insight, Inc. ―Massachusetts Clean Energy Industry Census, Massachusetts Technology
Collaborative, Renewable Energy Trust.‖ August 2007.




                                                                                                           30
Habiby, Anne. ―Michael Porter on Essential Elements for Regional Competitiveness and the Role of the
Inner City.‖ Economic Development America. Spring 2004.

Hendricks, Braken; Goldstein, Benjamin; Detchon, Reid; and Shickman, Kurt for the Center for American
Progress, Energy Future Coalition. Rebuilding America, A National Policy Framework for Investment in
Energy Efficiency Retrofits. August 2009

Institute for Strategy and Competitiveness, Harvard Business School. http://data.isc.hbs.edu/

International Economic Development Council. ―The Climate Prosperity Handbook – Green Savings, Green
Opportunities, Green Talent.‖ July 2009.

Kaplan, Saul; Breeker, David. ―Code Green Energy Innovation Lab, Proposal for a Real World Laboratory
for Systemic Experimentation.‖ October 19, 2009.

Katsarakis, Uannis; Resk, Amr; Sazak, Emrah; Shaydullin, Haydar; Yadikar, Bahadir. ―Turkey and the
Construction Services Cluster.‖ Microeconomics of Competitiveness. Spring 2007.

Ketels, Christian. The Development of the Cluster Concept: Present Experiences and Further
Developments. November 26, 2003.

Kwek, Ju-Hon; O’Neil, Clare; Satchcroft, Alex; Vogt, Thomas. ―The Australian Renewable Energy Cluster –
Microeconomics of Competitiveness.‖ May 2, 2008.

Los Alamos National Laboratory, Sandia National Laboratories, New Mexico Small Business Assistance
Program. ―Santa Fe’s Transformation to Renewable Energy Technologies: A NMSBA Program Project,‖
power point presentation. April 29, 2009.

McMahon, Sile. ―Underwriters Laboratories Establishes North American PV Testing and Certification
Facility.‖ PV-tech.org Daily News. July 16, 2008.

Miller, Brendan, New Mexico Economic Development Department. ―New Mexico Green Jobs Cabinet
Report.‖ September 21, 2009.

Minnesota Department of Commerce Office of Energy Security. ―Development of a Solar Rating and
Certification Laboratory in Minnesota,‖ a report to the Minnesota State Legislature. January 15, 2009.

Nathan Associates. ―The Economic Impact of Cluster Initiatives: The Competitiveness Initiative Project in
Sri Lanka.‖ 2004.

―New Directions in Rural Economic Development.‖ Economic Development America.
Summer 2004.

New Mexico Economic Development Department. ―Technology21: Innovation and Technology in the 21st
Century – Creating Better Jobs for New Mexicans. A Science and Technology Roadmap for New Mexico’s
Future.‖ January 2009.

The Pew Charitable Trusts. The Clean Energy Economy, Repowering Jobs, Businesses and Investments
Across America, June 2009




                                                                                                            31
Pollin, Robert; Wicks-Lim, Jeannette; Garrett-Peltier, Heidi. Green Prosperity: How Clean-Energy Policies
Can Fight Poverty and Raise Living Standards in the United States. Department of Economics and Political
Economy Research Institute, University of Massachusetts, Amherst. Prepared under commission from the
Natural Resources Defense Council and Green For All. June 2009.

Porter, Michael E. New Mexico: Profile of the State Economy. Prepared for Governor Gary E. Johnson,
Institute for Strategy and Competitiveness, Harvard Business School, National Governors Association.
Winter Meeting 2002, February 24, 2002

Regional Development Corporation. New Mexico Green Collaborative Database.

Regional Development Corporation. ―REDI Regional Economic Development Strategic Plan.‖ February
2009.

Solvell, Orjan; Lindqvist, Goran; Ketels, Christian. The Cluster Initiative Greenbook, August 2003.

SRI International for BearingPoint. Georgia Competitiveness Initiative: Cluster Assessment Baseline and
Constraint Report. March 31, 2004.

University of Southern Maine; Battelle Technology Partnership Practice, Battelle Institute; Planning
Decisions, Inc., Policy One Research. Maine’s Technology Sectors and Clusters: Status and Strategy.
Prepared for Office of Innovation, Maine Department of Economic and Community Development, Maine
Technology Institute. March 2008,

World Bank International Trade Department. Clusters for Competitiveness – A Practical Guide for Policy
Implications for Developing Cluster Initiatives, February 2009



Special Thanks

This report was compiled with the assistance and advice of many individuals, including those who
contributed their knowledge and experience during numerous interviews. Specific support was also
provided by:

         Rusty Schmit, Clean Switch
         Jennifer Sinsabaugh, New Mexico Manufacturing Extension Partnership
         David Breecker, David Breeker Associates
         Grace Brill, Market Intelligence Solutions
         Alicia Paz-Solis, Economic Development, North Central Economic Development District
         Brendan Miller, Economic Development Department
         Scott Beckman, Regional Development Corporation
         David Griscom, Regional Development Corporation
         Monica Abeita, Regional Economic Development Initiative

Enormous thanks to Marie Longserre, Executive Director of the Santa Fe Business Incubator, and
Kim Shanahan, Executive Director of the Santa Fe Area Homebuilders’ Association, for their
willingness to engage deeply in discussions about the Green Cluster, and for their potential
contributions in leading the REDI Green Cluster Initiative.


                                                                                                          32
VII. Appendix A: Potential Projects

The following is a list of potential projects, services and business opportunities generated from
interviews, surveys and stakeholder meetings during the Green Cluster Strategy process. Several
of these projects are explored in greater detail and recommended for feasibility analysis in this
document.

Machine shops are scarce in Northern New Mexico;             Certifications are needed for renewable energy installers
locally target additional shops would be welcomed.           and energy efficiency professionals at all levels, for
                                                             commercial and residential purposes. This location-
                                                             neutral opportunity might be a service to be developed in
                                                             cooperation with LANL and the educational institutions.
Given the nature of the communities and the rural nature     Directories of ―green‖ resources compiled by trusted
of NNM, cooperatives might be developed as alternative       organizations and in an easy-to-access, updateable,
business models.                                             useful manner are difficult to find – no matter how many
                                                             directories there are available now. This might be an
                                                             opportunity for REDI itself.
There is no independent wind turbine research and            The racking companies in Albuquerque which provide the
testing site for small wind turbines – with LANL technical   components to install solar PV panels on roofs might be
resources, this might be a good region to develop one.       interested in expanding to the REDI region with a niche
                                                             manufacturing capability which would service flat adobe
                                                             style homes.
As new products and approaches come in to the green          In tests of systems installed years ago, one PV installer
building arena, data is required to prove their              has discovered that the junction box which joins the wires
effectiveness and in order to calculate accurate ―payback    from the PV system to the electrical system in the building
periods‖. Such technical monitoring products and devices     is the greatest point of failure on flat roofs. A molded
could be a new and ―location neutral‖ product or service.    plastic product to replace those currently in use would be
                                                             very helpful.
Greenhouses are much in demand locally and all over the      Development of or expansion of a light manufacturing
US. Design and manufacture of these buildings might be       incubator, including the provision of manufacturing
an excellent opportunity using the region’s technical and    consulting services, might be one way to grow the
natural resources.                                           manufacturing sector in northern NM
Many costs of small businesses – from utility bills to       Solar thermal systems are excellent, but high priced. In
insurance to fuel purchases – might be aggregated, and       order to reduce the expense to homeowners and increase
services provided to multiple small businesses at a          usage, technical resources should be combined with the
discount while the integrator (who negotiates and            market and installation knowledge of the SFAHBA to
manages the system) makes a profit.                          reduce their cost, reduce the footprint, increase the
                                                             efficiency.
Greenhouse gas accounting is a location-neutral service      Inventors and R&D efforts at LANL have developed ―piles
with might be developed in concert with LANLs computing      of products‖ which are looking for a market and a
capabilities.                                                business to develop them. A stronger ―matchmaking‖
                                                             effort might yield significant benefits without high
                                                             investment requirements.
The ―Smart Home‖ concept offers many potential product       The growing solar manufacturing cluster in Albuquerque
and service opportunities yet to be developed, including     and potentially in the REDI region could be an excellent
―location neutral‖ monitors who could learn from the PV      market for manufacturers of figured glass sheets,
system being installed in Taos.                              stamped sheet metal, semiconductor cells, adhesives,
                                                             printed flexible electrical circuits.




                                                                                                                    33
VIII. Appendix B: Matrix of Stakeholders


The following Matrix of Stakeholders was contributed by David Breeker Associates, and was
created during the planning process for the Sustainable Technologies Center at Santa Fe
Community College. The matrix includes more companies, support services and other
stakeholders than exist in the northern New Mexico Green Cluster, as defined in this document.

Combined with data from the REDI Regional Economic Development Strategic Plan and the
Regional Development Corporation’s NM Green Collaborative database, the Matrix of
Stakeholders was used to estimate the number of companies in particular segments and parts of
the value chain for northern New Mexico’s Green Cluster.




                                                                                                 34
SOLAR Businesses
  PRIMARY BUSINESS                 COMPANY NAME              LOCATION    EMPLOYEES         SIC CODE DESCRIP 1                    SIC CODE DESCRIP 2
Solar Thermal               Cedar Mtn Solar                 Santa Fe         19      Solar Energy Equipment-Wholesale   Solar Energy Equipment-Wholesale
Solar PV                    EQ Solaris
R&D                         Los Alamos Renewable Energy
Solar tech                  Solar Energy Ltd.               Los Alamos               R&D                                Packaged Power
Solar Thermal               Valverde Energy*                Taos            15       Plumbing Contractors               Plumbing Contractors
Solar / Wind                Bluenergy Solarwind*
Solar distribution          Conergy                         Santa Fe        80       Solar Energy Equipment-Wholesale   Solar Energy Equipment-Wholesale
                            Sunvolt Solar Electric
                            Solar Survival Skills
PV design & installation    Solar Ray                       Taos             4       Solar Energy Equipment-Wholesale   Solar Energy Equipment-Wholesale
Solar distribution          Solar Wise LLC                  Santa Fe         4       Solar Energy Equipment-Wholesale
Solar PV, EE                Positive Energy*                Santa Fe         2       Solar Energy Equipment-Wholesale   Pumps (Whls)
Contractor                  Energy Concepts                 Santa Fe         5       Electric Contractors               Solar Energy Equipment-Wholesale
                                                                                     Plumbing Fixtures & Supplies-
Solar Thermal               Dahl Plumbing & Solar           Santa Fe        60                                          Septic Tanks & Systems-Wholesale
                                                                                     Wholesale
Architect                   Mark Chalom                     Santa Fe         3       Architects                         Solar Energy Equipment-Wholesale
Engineering                 DeLapp Engineering              Santa Fe                 Electrics                          engineering
Contractor                  Electric Aid                    Santa Fe                 Electrics                          service
PV design & installation    Hands On Electric               Santa Fe                 Installation                       PV
PV design & installation,
                            Solar Works                     Ojo Sarco
solar thermal
PV design & installation    Sunvolt Solar Electric          Santa Fe
PV design & installation    Ute Mountain Electric           Questa                   PV                                 Wind turbines
PV design & installation    Hansen & Sun                    Cerrillos                Installation                       PV
Controls                    Solar Logie
PV design & Installation    Southwest Solar Products

Contractor                  Acculectric                     Santa Fe        11       Electric Contractors               Solar Energy Equipment-Manufacturers
Contractor                  Amethyst Electric Inc           Santa Fe         1       Electric Contractors               Solar Energy Equipment-Wholesale
Equipment sales             Golden Sun Solar                Santa Fe         2       Solar Energy Equipment-Wholesale   Solar Energy Equip & Systems-Svc & Rpr
Contractor                  Mechanical & Solar              Santa Fe                 Electrical Contractors
Engineering                 DeLapp Engineering              Santa Fe
Contractor                  Affordable Plumbing & Heating   Santa Fe         2       Plumbing Contractors               Plumbing Contractors
                            Dobry Water Systems             Taos             1       Plumbing Contractors               Plumbing Contractors
SOLAR Businesses
  PRIMARY BUSINESS               COMPANY NAME               LOCATION      EMPLOYEES         SIC CODE DESCRIP 1                      SIC CODE DESCRIP 2
Solar equip wholesaler,
                          Qsv Electro/Mechanical           Santa Fe           1       Solar Energy Equipment-Wholesale    Electric Contractors
contractor
Solar equip wholesaler    Solar Survival Sales             Tres Piedras       5       Solar Energy Equipment-Wholesale
Solar equip wholesaler    Sunhorse Sustainable Systems     Medanales          2       Solar Energy Equipment-Wholesale
Solar equip wholesaler,
                          Zia Solar & Malachite Plumbing   Santa Fe           2       Solar Energy Equipment-Wholesale
contractor
                                                           Ranchos De
Solar Thermal             Genesis Plumbing & Heating Inc                              Plumbing Contractors
                                                           Taos
Solar PV Installation     Paradise Power                   Taos               3       Generators-Electric-Manufacturers   Generators-Electric-Manufacturers
Solar thermal             Solar Age of NM                  Santa Fe           1       Solar Energy Equipment-Wholesale    Solar Energy Equipment-Wholesale
Solar equip wholesaler    Adi Solar Electric               Santa Fe           2       Solar Energy Equipment-Wholesale    Solar Energy Equipment-Wholesale


BIOFUEL/BIOMASS Businesses

  PRIMARY BUSINESS               COMPANY NAME               LOCATION      EMPLOYEES         SIC CODE DESCRIP 1                      SIC CODE DESCRIP 2
Consulting, Development   Renewable Energy Corp*
R&D                       Solarec / SundropFuels
Mfg & Distrib             Sunbelt Biofuels
Retail Distrib            Local Energy
Consulting, Retail        Althouse Inc                     Santa Fe                   biomass heating systems             biomass district heating
Developer                 Bioenergy Development            Santa Fe                   biomass energy systems              wind power plants

GEOTHERMAL Businesses
  PRIMARY BUSINESS               COMPANY NAME               LOCATION      EMPLOYEES         SIC CODE DESCRIP 1                       SIC CODE DESCRIP 2
Contractor                Air Conditioning & Heating Svc   Santa Fe           24      AC Contractors & Systems            Air Conditioning Contractors & Systems
Contractor                Hubbell Electro Mechanical       Santa Fe           15      AC Contractors & Systems            Plumbing Contractors
Contractor                Medlin Mechanical                Glorieta            3      AC Contractors & Systems            Geothermal Htg/Cooling Equip/Systs-Dlrs
Contractor                J & P Plumbing & Heating Inc     Santa Fe            5      Heating Contractors                 Plumbing Contractors
Contractor                Kps Kuckelman Pump Svc           Santa Fe           10      Windmills (Mfrs)                    Water Well Drilling & Service




                                                                                                                                                          36
WIND Businesses
  PRIMARY BUSINESS              COMPANY NAME            LOCATION      EMPLOYEES        SIC CODE DESCRIP 1             SIC CODE DESCRIP 2
                        Independence
Wind                    Bluenergy Solarwind
                        Wind Power
                        VAWTPOWER
Install wind            Hands On Electric
Manufacturer            Kps Kuckelman Pump Svc         Santa Fe          10       Windmills (Mfrs)             Water Well Drilling & Service
R&D and Mfg             Jetstream Wind
Design                  Sunstuff                       Questa                     Custom design                Wind systems
Wind                    Ute Mountain Electric          Questa                     PV                           Wind turbines
Wholesale distributor   Taos Wind                      Taos               4       Wind Energy Systems (Whls)

GREEN BUILDING Businesses
  PRIMARY BUSINESS               COMPANY NAME           LOCATION      EMPLOYEES        SIC CODE DESCRIP 1             SIC CODE DESCRIP 2
Builder                 Alternative Home Builders      El Prado
Builder                 Archetype Design               Taos
Architect               Architects Taos                Taos
Architect               Baker-Laporte & Assoc          Tesuque
Real Estate             BGK (Commercial Real Estate)
Builder                 Brother Sun / US Sky           Santa Fe
Builder                 Casa Mirasol                   Ojo Caliente
Builder                 DFM Construction               Cerrillos
Architect               Dharma Living Systems          Taos
Architect               Earth Systems Design           Reserve
Builder                 Earthship Biotecture           Taos
Architect               Earthwrights Design
Builder                 Ecobuilders
Builder                 EcoNest Building Co.           Tesuque
Architect               EDGE                           Taos
Consulting              eggbox design                  Abiquiu
Consulting              Environmtl DesignConcepts      Santa Fe
Architect               Gary Embler, Architect
Builder                 Green Builders




                                                                                                                                               37
GREEN BUILDING Businesses
  PRIMARY BUSINESS            COMPANY NAME        LOCATION    EMPLOYEES   SIC CODE DESCRIP 1   SIC CODE DESCRIP 2
Architect            Living Designs Group
Architect            Lloyd and Assoc             Santa Fe
Architect            Mazria Inc. Odems Ozorec    Espanola
Builder              Natural Builders            Santa Fe
Builder              Red Hawk Green Builders
Architect            One Earth Design            El Prado
Architect            Palo Santo Designms         Taos
Builder              Blue Sky Builders           Santa Fe
Engineering          Savio Engineering           Espanola
Builder              Schoen Construction         El Prado
                     SF Sustatinalbe LLC
Architect            Solar Design & Analysis     Santa Fe
                     Solar Smith LLC
Builder              Straw revolutions           Santa Fe
Architect            Success by Design           Santa Cruz
Architect            Sundancer Creations
                     Sustainable Urban
Architect            SW Solar Design             Embudo
Design               Tierra Concepts
Architect            Two Atelier1                Los Alamos
Builder              Up Front Construction       Taos
Consultant           Verde Consultants
Developer            Village Devpnt of America   Santa Fe
Architect            Von Bachmayr Architects     Santa Fe
Builder              Straw revolutions           Santa Fe
Architect            Success by Design           Santa Cruz
Architect            Sundancer Creations
                     Sustainable Urban
Architect            SW Solar Design             Embudo
Design               Tierra Concepts
Architect            Two Atelier1                Los Alamos
Builder              Up Front Construction       Taos
Consultant           Verde Consultants
Developer            Village Devpnt of America   Santa Fe
Architect            Von Bachmayr Architects     Santa Fe




                                                                                                                    38
WATER CONSERVATION Businesses

  PRIMARY BUSINESS             COMPANY NAME              LOCATION      EMPLOYEES          SIC CODE DESCRIP 1               SIC CODE DESCRIP 2
Consultant              Aqua De Taos                    Taos                2      Water Analysis
Consultant              Custom Water Analysis LLC       Santa Fe            2      Water Conservation
Design                  Earthwrights Designs            Santa Fe            3      Water Conservation
Consultant              Energy E2 Earth                 Santa Fe            4      Energy Mgt. Systems & Products
Consultant              Energy Matter Conversion Corp   Santa Fe            4      Energy Mgt. Systems & Products
Wholesale distributor   George Boylan Drilling & Supl   Santa Fe            1      Pumps (Whls)                     Water Supply Systems
Consultant              Glorieta Geoscience Inc         Santa Fe           15      Hydrologists                     Environmental & Ecological Services
Retail                  Hicks Enterprises LLC           Santa Fe            3      Water Conservation
Consultant              Indepth Water & Soil Sampling   Santa Fe            3      Laboratories                     Laboratories-Testing
Consultant              J C Multi-Flo                   Santa Fe            1      Water Conservation
                        John Van Damme Jr Waste
Consultant                                              Santa Fe           3       Water Conservation
                        Water
Manufacturer            Kps Kuckelman Pump Svc          Santa Fe          10       Windmills (Mfrs)                 Well Drilling
Contractor              Mountain & Mesa Construction    Tres Piedras       4       General Contractors              Water Conservation
Consultant              New Mexico Renewable Energy     Santa Fe           3       Energy Mgt. Systems & Products
Engineering             P E Mc Ginnis & Assoc           Santa Fe           1       Engineers-Consulting             Engineers-Water Supply
Contractor              Raincatcher Inc                 Santa Fe           4       General Contractors              General Contractors
Contractor              Rainharvest LLC                 Santa Fe           1       Landscape Contractors            Erosion Control
Retail / Consultant     Renewable Energy Corp           Santa Fe           5       Energy Mgt. Systems & Products
Consultant              Rio Grande Restoration          Taos               1       Water Conservation
Engineering             Southwest Water Consultants     Santa Fe           1       Engineers-Consulting
Engineering             Sullivan Design Group Inc       Santa Fe           4       Engineers-Consulting             Engineers-Water Supply
Consultant              Sundance Specialist & Energy    Santa Fe           4       Energy Mgt. Systems & Products
Consultant              Sustainable Resources           Los Alamos         1       Energy Mgt. Systems & Products




                                                                                                                                                  39
ENERGY EFFICIENCY Businesses

  PRIMARY BUSINESS           COMPANY NAME             LOCATION    EMPLOYEES          SIC CODE DESCRIP 1               SIC CODE DESCRIP 2
Consultant           CleanAir Systems                Santa Fe                 Envir Monitoring and Modeling    research and development
                     Brother Sun / US Sky
Consultant           Ares Corp                       Santa Fe         2       Energy Cons & Mgmt Consultants
Consultant           Energy K Systems Inc            Santa Fe         1       Energy Cons & Mgmt Consultants
Consultant           Institute For Creative Evltn    Santa Fe         6       Energy Cons & Mgmt Consultants
Consultant           Local Energy                    Santa Fe         6       Energy Cons & Mgmt Consultants
Consultant           Charles Post                    Santa Fe         6       Energy Con & Mgmt Consultants
Consultant           Reed's Resources                Questa           6       Energy Cons & Mgmt Consultants
Consultant           Energy E2 Earth                 Santa Fe         4       Energy Mgt Systems & Products
Consultant           Energy Matter Conversion Corp   Santa Fe         4       Energy Mgt Systems & Products
Consultant           New Mexico Renewable Energy     Santa Fe         3       Energy Mgt Systems & Products
Consultant           Renewable Energy Corp           Santa Fe         5       Energy Mgt Systems & Products
Consultant           Sundance Specialist & Energy    Santa Fe         4       Energy Mgt Systems & Products
Consultant           Sustainable Resources           Los Alamos       1       Energy Mgt Systems & Products
Consultant           Go Green New Mexico             Santa Fe         4       General Contractors              Real Estate Inspection
Consultant           Solar Plans                     Taos
Consultant           Building Energy Solutions       Placitas
Consultant           Innov8 LLC                      Santa Fe                 Engineering                      building energy efficiency
Consultant           Cedar Mountain Solar
Contractor           Los Amigos                      Santa Fe         8       Associations                     Weather Strips
Consultant           Xubi Wilson




                                                                                                                                            40
ENVIRONMENTAL Businesses

  PRIMARY BUSINESS             COMPANY NAME               LOCATION    EMPLOYEES          SIC CODE DESCRIP 1                    SIC CODE DESCRIP 2
Engineering             Clean Air Systems
Engineering             Alliance For Nuclear Accntblty   Santa Fe         2       Envir Conservation/Ecological Org
Engineering             Amec Earth & Environmental       Espanola         6       Envir & Ecological Services
Engineering             Blue Earth Ecological Conslnts   Santa Fe         4       Envir & Ecological Services
Engineering             Cadmus Group Inc                 Santa Fe         4       Envir & Ecological Services
Consulting              Ccns Hotline                     Santa Fe         3       Envir Conservation/Ecological Org
Engineering             Cerl Environmental Conslnts      Santa Fe         8       Environmental & Ecological Services   Environmental & Ecological Services
Engineering             Clover Leaf Environmental Sltn   Espanola         4       Environmental & Ecological Services
Consulting              Commonweal Conservancy           Santa Fe         5       Envir Conservation/Ecological Org
Consulting              Concerned Citizens For Nuclear   Santa Fe         3       Envir Conservation/Ecological Org
Consulting              Cvnm                             Santa Fe         5       Envir Conservation/Ecological Org
Engineering             Dowcar Environmental Mgmt        Taos             2       Envir & Ecological Services
Consulting              Earth Works Institute            Santa Fe         5       Envir Conservation/Ecological Org
Consulting              Earth's Birthday Project         Santa Fe         4       Envir Conservation/Ecological Org
Engineering             Eco Sensors                      Santa Fe         8       Air Quality Measuring Equip Mfg.
Engineering             El Valle De Los Ranchos          Taos             3       Environmental & Ecological Services
Engineering             Energy Solutions                 Los Alamos      20       Waste Disposal-Hazardous
Engineering             Environmental Building Science   Santa Fe         4       Environmental & Ecological Services
Engineering             Environmental Construction Svc   Santa Fe         2       Environmental & Ecological Services   Environmental & Ecological Services
Engineering             Environmental Dimensions Inc     Los Alamos       4       Environmental & Ecological Services
Manufacturer            Flexible Liner Underground       Santa Fe         7       Environmental & Ecological Services
Consulting              Forest Guardians                 Santa Fe        10       Envir Conservation/Ecological Org     Marketing Programs & Services
Consulting              Forest Guild                     Santa Fe        15       Envir Conservation/Ecological Org
Engineering             Global Ecotechnics               Santa Fe         6       Envir & Ecological Services
Engineering             Glorieta Geoscience Inc          Santa Fe        15       Hydrologists                          Environmental & Ecological Services
Engineering             Hdr                              Santa Fe         2       Engineers-Environmental
Consultant              Healthy Habitats                 Santa Fe         4       Environmental & Ecological Services
Design                  Healthy Living Spaces LLC        Santa Fe         1       Environmental & Ecological Services   Environmental & Ecological Services
Consultant              Hydro Bio                        Santa Fe         4       Business Management Consultants
Consultant              Indepth Water & Soil Sampling    Santa Fe         3       Laboratories                          Laboratories-Testing
Wholesale distributor   Knoll Bio Products Co            Santa Fe         1       Envir Products & Supls (Whls)
Consulting              La Calandria Assoc               Santa Fe         2       Environmental & Ecological Services
Consulting              La Calandria Assoc Inc           Santa Fe        10       Environmental & Ecological Services
Engineering             Lac Minerals USA Inc             Cerrillos        2       Environmental Reclamation




                                                                                                                                                        41
ENVIRONMENTAL Businesses

  PRIMARY BUSINESS          COMPANY NAME              LOCATION    EMPLOYEES          SIC CODE DESCRIP 1                    SIC CODE DESCRIP 2
Contractor           Land Restoration Svc LLC        Santa Fe          2      Landscape Contractors                 Erosion Control
Engineering          Lawrence A Ortega & Assoc       Taos              4      Engineers-Consulting                  Engineers-Environmental
Engineering          Margaret Anne Rogers & Assoc    Los Alamos       20      Environmental & Ecological Services
Consulting           National Audubon Society        Santa Fe          7      Envir Conservation/Ecological Org
Consulting           Nature Conservancy              Santa Fe         32      Envir Conservation/Ecological Org
Engineering          Neptune & Co Inc                Los Alamos       33      Environmental & Ecological Services
Engineering          Peak Technical Consulting       Los Alamos        4      Environmental & Ecological Services
Engineering          Portage Environmental Inc       Los Alamos       40      Engineers-Consulting                  Engineers-Environmental
Consulting           Quivria Coalition               Santa Fe          7      Envir Conservation/Ecological Org
Consulting           Rural Community Assistance      Santa Fe          1      Envir Conservation/Ecological Org
Contractor           S G Western Construction        Espanola         28      Excavating Contractors                Demolition Contractors
Engineering          Serafina Technical Consulting   Santa Fe          3      Engineers-Environmental
Engineering          Shaw Environmental/Infrstrctr   Los Alamos       81      Engineers-Environmental
Engineering          Souder Miller & Assoc           Santa Fe         90      Engineers-Environmental               Engineers-Consulting
Consulting           Tierra Right Of Way             Santa Fe          5      Environmental & Ecological Services
Consulting           Tierra Vida Environmental       Santa Fe          4      Environmental & Ecological Services
Consulting           Training Resources              Santa Fe          3      Envir Conservation/Ecological Org
Consulting           Turk, Brad                      Santa Fe          4      Environmental & Ecological Services
Engineering          Urs Corp                        Los Alamos        7      Engineers-Consulting                  Engineers-Consulting
Consulting           Vecinos Del Rio                 Velarde           1      Environmental & Ecological Services
Consulting           Watershed West                  Santa Fe          2      Environmental & Ecological Services
Engineering          Weston Solutions                Los Alamos        3      Engineers-Consulting
Consulting           Wild Angels                     Santa Fe          4      Envir Conservation/Ecological Org
Engineering          Yamada Science & Art            Santa Fe                 Envir Monitoring and modeling         Research and Development




                                                                                                                                                42
UTILITIES AND DEVELOPERS Cluster Segment Businesses

  PRIMARY BUSINESS            COMPANY NAME             LOCATION      EMPLOYEES             SIC CODE DESCRIP 1                  SIC CODE DESCRIP 2
Developer            San Juan Mesa Wind Project                                  Water & Sewage Companies-Utility
Utility              El Dorado Area Water District    Santa Fe                   Electric Companies
Utility              Jemez Mountains Electric Co-Op   Hernandez                  Electric Companies
Utility              Kit Carson Electric              Ojo Caliente               Electric Companies
Utility              Kit Carson Electric              Penasco                    Electric Companies
Utility              Kit Carson Electric              Questa                     Electric Companies
Utility              Kit Carson Electric Co-Op Inc*   Taos                       Electric Companies
Utility              Kit Carson Customer Service      Taos                       Utilities
Utility              Los Alamos Electric Svc          Los Alamos                 Electric Companies
Utility              Northern Rio Arriba Electric     Chama                      Utilities
Utility              Pojoaque Pueblo                  Santa Fe                   Water & Sewage Companies-Utility
Utility              Pojoaque Valley Irrigation       Pojoaque                   Water & Sewage Companies-Utility
Utility              Sunlit Hills Water System        Santa Fe
Consulting           Vivilux Consulting
Developer            American Capital Energy                                     Water & Sewage Companies-Utility

RECYCLING Cluster Segment Businesses

  PRIMARY BUSINESS            COMPANY NAME             LOCATION      EMPLOYEES          SIC CODE DESCRIP 1                     SIC CODE DESCRIP 2
Recycling            Aguirre Recycling & Used Auto    Taos                0
Recycling            Buckman Road Recycling           Santa Fe          2009
Recycling            Capital Scrap Metals Inc         Santa Fe            0      Scrap Metals-ProcessRecycling (Whls)   Wreckers-Dealers
Recycling            Dotfoil                          Santa Fe            0      Computer & Equipment Dealers           Computers-Sys Designers & Consult
Recycling            Habitat For Humanity             Arroyo Seco         0
Recycling            Habitat For Humanity             Taos                0
Recycling            Mr G's                           Santa Fe            0
Recycling            Mr G's Recycling                 Santa Fe            0
Recycling            New Mexico Recycling Coalition   Santa Fe            0
Recycling            North Central Solid Waste        Espanola            0
Recycling            Otra Vuelta Tire Recycling       Los Ojos            0
Recycling            Paper Recycler & More            Santa Fe            0
Recycling            Prairie Ecosystem Assoc          Santa Fe            0
Recycling            Waste Management Inc             Santa Fe          1987     Garbage Collection                     Recycling Centers (Whls)
Recycling            Wholly Rags                      Taos                0      Recycling Centers (Whls)




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OTHER Cluster Segment Businesses

 PRIMARY BUSINESS             COMPANY NAME           LOCATION    EMPLOYEES          SIC CODE DESCRIP 1             SIC CODE DESCRIP 2
Manufacturer         Earthstone
R&D                  Energy Rlated Devices          Los Alamos               PV cells                      Fuel cells
                     Morphic Corporation
                     Altree (per Joel)
Supplier, Retail     Performance Maintenance Inc    Espanola         3       Janitor Service               Mats & Matting (Whls)
Retail, Service      Juliette Sehee Green Funeral   Santa Fe         1
                     Aurora Borealis                La Madera
Retail               Online Auction Block           Santa Fe         6       Internet & Catalog Shopping   Consignment Shops
R&C                  Manhattan Scientifics Inc.     Los Alamos               Hydrogen micro fuel cells     R&D
R&D                  Energy Related Devices



SMALL BUSINESS CONSULTING

  PRIMARY BUSINESS          COMPANY NAME             LOCATION    EMPLOYEES          SIC CODE DESCRIP 1             SIC CODE DESCRIP 2
                     SBDC
                     Department of Commerce
                     NMSBA
                     WESST
                     Santa Fe Business Incubator*
                     Nancy Judd
                     MEP
                     STTR
                     TEN
                     SF Chamber
                     GEUCDC
                     NNMConnect
                     Hdbs & A Inc Assoc             Los Alamos       2                                     Business Management Consultants




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FINANCING
FINANCING
  PRIMARY BUSINESS                  COMPANY NAME           LOCATION   EMPLOYEES          SIC CODE DESCRIP 1          SIC CODE DESCRIP 2
                           The Loan Fund*
                           NM Community Capital
                           Financenewmexico.org
                           Century Bank (ARC Loans)
                           ACCION
                           NCNMEDD
                           City of Santa Fe
                           Permaculture Credit Union


OTHER PROFESSIONAL

  PRIMARY BUSINESS                COMPANY NAME             LOCATION   EMPLOYEES          SIC CODE DESCRIP 1          SIC CODE DESCRIP 2
Accounting / Bookkeeping
Attorneys                  New Mexico Environmental Law   Santa Fe            7   Attorneys                   Envir Conservation/Ecological Org
Media                      Green Money Journal
                           GreenFire




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OTHER STAKEHOLDERS

  PRIMARY BUSINESS                        COMPANY NAME                  LOCATION   EMPLOYEES         SIC CODE DESCRIP 1            SIC CODE DESCRIP 2
Educational Institutions   Santa Fe Community College                  Santa Fe
                               Business and Technologies                                       Water/wastewater treatment tech
                               Center for Sustainability                                       Renewable energy technologies     Biomass vocation training
                           Northern NM College: Department of Career
                                                                       El Rito                 Electrical technology             Plumbing technology
                           and Technical Education
                           UNM - Taos Education Center                 Taos                    Pre-science                       Internet technology
                           UNM-LA
                           St. John's College
                           Workforce Connection
                           Ecoversity                                  Santa Fe        4       Schools-Universities & Colleges
                           Chimayo Conservation Corps
                           NMSU Ag Extension Service
Workforce Development      Warehouse 21
                           Workforce Connections
                           SER Jobs for Progress
                           NALWDB
National Labs              SNL/NREL - SunLab                                                   R&D                               Technical Assistance
                           LANL Geothermal Hot Dry Rock
Business Organizations     Santa Fe Chamber of Commerce
                           Taos Entrepreneurial Network
                           Taos Chamber of Commerce
                           Espanola Chamber of Commerce
                           Santa Fe Area Homebuilders' Association*
                           New Voice of Business
                           Hispanic Chamber of SF
                           SF Alliance
                           Santa Fe Chamber of Commerce
                           Taos Entrepreneurial Network
Non-Profit Organizations   Coalition for Clean and Affordable Energy
                           NM Solar Energy Association
                           Renewable Energy Industries Association
                           Central Labor Board
                           NMSA (Suppliers Alliance)
                           Trade Associations




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OTHER STAKEHOLDERS

 PRIMARY BUSINESS                  COMPANY NAME          LOCATION     EMPLOYEES        SIC CODE DESCRIP 1               SIC CODE DESCRIP 2
                    Local Energy                        Santa Fe                  Advocacy                            Education
                    Renewable Energy Partners of NM*    Santa Fe
                    New Mexico Land Conservancy         Santa Fe          4       Envir Conservation/Ecological Org
                    New Mexico Wildlife Assn            Edgewood         12       Envir Conservation/Ecological Org
                    Night Sky Office                    Santa Fe          1       Envir Conservation/Ecological Org
                    Nuclear Watch Of New Mexico         Santa Fe          3       Envir Conservation/Ecological Org
                    People For Native Ecosystems        Santa Fe          1       Envir Conservation/Ecological Org
                    Santa Fe Conservation Trust         Santa Fe          3       Envir & Ecological Services
                    Santa Fe Watershed Assn             Santa Fe          4       Envir Conservation/Ecological Org
                    Sierra Club Northern Group          Santa Fe          3       EnvirConservation/Ecological Org
                    Taos Business                       Taos              3       Envir Conservation/Ecological Org
                    Taos Land Trust                     Arroyo Seco       3       Envir Conservation/Ecological Org
                    Tribal Environment Watch Alliance   Santa Fe          4       Envir & Ecological Services
                    Trust For Public Land               Santa Fe         15       Envir Conservation/Ecological Org
                    NM Citizens for Clean Air & Water   Los Alamos




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