Summary:

 Senate Bill 240 (SB 240) enacts the Structural Wood Grading Act, establishing a state-based structural wood grading system for lumber milled in New Mexico. The bill requires the Forestry Division of the Energy, Minerals and Natural Resources Department (EMNRD) to develop a licensing program for sawmill owners and their employees to certify structural wood grades for use in construction. The bill allows for in-state structural wood grade certificates as an alternative to grade stamps issued by national grading agencies. SB 240 takes effect July 1, 2025.
 

Legislation Overview:

 Senate Bill 240 (SB 240) establishes a state-controlled structural wood grading system that allows lumber milled in New Mexico to be graded and certified within the state instead of relying on national grading agencies. The bill requires EMNRD’s Forestry Division to develop a licensure program for graders and create standards for in-state wood certification.

SB 240 defines key terms. A grader is a licensed sawmill owner or designated employee who inspects, certifies, and grades structural wood. Structural wood includes dimensional lumber, structural beams, and vigas milled in New Mexico. A certificate is a document verifying the grade of structural wood milled in-state, serving as an alternative to grade stamps from accredited national grading agencies.

The Forestry Division must establish training and licensing for graders through a state-controlled program, develop rules for oversight, renewal, suspension, and revocation of licenses, and implement a state-specific wood grading system for lumber produced and sold within New Mexico. The program will allow sawmill owners or their employees to obtain a five-year structural wood grading license upon completion of state-approved training. License renewals require successful re-completion of the program.

A grader must prepare a structural wood grade certificate when lumber is sold. The certificate must include verification that the wood meets applicable building codes, the species of wood, quantity graded, location of use, and sawmill information, as well as the grader’s name, license number, and the date of grading. Builders and contractors may use a state-issued structural wood grade certificate in lieu of a national grade stamp to comply with state and local building codes.

SB 240 allows the division to charge licensing fees of up to $250 to fund the program. It also allows the issuance of a license without completing the program if the applicant provides proof of current certification from an accredited grading agency or a bachelor's or postgraduate degree in wood science and technology or an equivalent field.

Implications
SB 240 is expected to increase economic opportunities for New Mexico sawmills by allowing them to grade lumber in-state instead of relying on national grading agencies. This could reduce costs for local wood producers and increase the use of New Mexico timber in construction projects. The creation of a state-controlled wood grading program may streamline certification for locally produced lumber but will require administrative oversight by the Forestry Division. The licensing program, training requirements, and grading system will require funding, though the $250 licensing fee may partially offset costs.

Builders and contractors may benefit from increased access to locally certified wood, reducing dependence on out-of-state grading services. However, acceptance of state-graded wood outside of New Mexico remains uncertain, as many construction projects require nationally recognized grade stamps.

SB 240 establishes a regulatory framework that ensures New Mexico lumber meets building safety standards while promoting local industry growth. The requirement for periodic re-certification of graders ensures continued quality control. 

Current Law:

 Under current law, all structural wood used in New Mexico construction must be graded by a nationally recognized grading agency accredited by the American Lumber Standard Committee (ALSC). There is no state-level grading program, meaning sawmills must rely on third-party certification services to obtain grade stamps. SB 240 establishes New Mexico’s own structural wood grading system, allowing in-state grading and certification as an alternative to national accreditation.