In order to receive the renewable energy production tax credit approved last year by the New Mexico Energy, Minerals and Natural Resources Department, which could be worth up to $27.4 million over a 10-year period, construction had to begin by Feb. 21, 2009.

A letter giving notice and certification of commencement of construction was sent by WWPP to the EMNRD on Feb. 20. The documents included a construction contract between BlairCon 24/7 General Contractor LLC of Tijeras. It included pictures of construction of a poured concrete permanent foundation and step down transformer base, the site cleared for construction, site access, and permanent poured foundation for the access gate. The letter states construction on the items were all completed by Feb. 14.

WWPP has another year to generate electrical power and achieve commercial operation, demonstrating at least 10 megawatts generating capacity, according to Joanna Prukop, Cabinet secretary for Gov. Bill Richardson.

"Until WWPP actually produces and sells electricity, it is not able to claim the renewable energy tax credit against its tax liability," she wrote.

Cohen hoped a bill in the state Legislature would extend that deadline for another year, but Senate Bill 530 remained in the Senate Finance Committee when the session ended last Saturday.

"The session was not very good for renewable energy; a lot bills we were hoping to get through didn't," Cohen said. "It's disappointing. We were hoping the state would recognize that it's impossible to raise money for any project really."

Funding for construction is the main hurdle, Cohen said. He said it would cost $100 million in labor and materials to construct the plant and a transmission line that would run 1 1/2 miles to the Willard substation to tie into the power grid.

Cohen said WWPP is now meeting with five prospects for funding, including national and international companies and banks.

"We're constantly getting people who are contacting us," he said.

WWPP has been approached by construction companies interested and claim they can bring financing. They are also talking to an international bank that has a division that owns power plants, one large equity investment company, and an international utility company.

Cohen said international prospects have contacted him.

"They are looking for these kinds of projects, and they're familiar with them," he said. "Not just from Europe but Asia and Australia."

Getting this kind of support for the biomass plant is crucial for the project as U.S. banks aren't lending because of the economic situation, Cohen said.

Banks won't lend unless the company has an A rating based on factors such as operational history, revenue and cash on hand, he said.

"Unless you have that rating, banks aren't lending to projects ... even if you have utility contracts," Cohen said. "It shows how rigorous and difficult it is to get funding."

He said most utilities don't have an A rating.

As for the power purchase agreement, Cohen said details of the contract with a California company are being finalized, and he expects an official announcement in early April.

Cohen had hoped to get help from the federal stimulus package. He said the funding helps to raise the equity portion of the financing, but if banks aren't going to lend, it's not going to help the project at this point. When the project began about three years ago, the situation was opposite.

"A few years ago it was hard to raise equity and easy to get financing for energy, now it's reversed," he said. "The stimulus package was great if this country had a banking system that was operating."

The department of energy offers tax credits for projects, but that doesn't help get the project rolling, Cohen said. WWPP is investigating whether the project qualifies for a guaranteed federal loan through the U.S. Department of Agriculture.

Had the project not been delayed various times, Cohen said the plant would already be producing electricity for the Estancia Valley.

"Every moment the government delays something, they don't think about how hard it is to take an idea and bring it home to reality," he said.

Cohen said government agencies need to work with developers to bring projects to reality.

"Delays are the death of hundreds of renewable energy projects across this country," he said. "Most enterprises would have given up on this project in New Mexico."

Cohen said he's not giving up, even with the current banking crisis.

"We believe in it. We see the benefits and they only get better. We believe it will work economically and meet needs for the community."