NM: New Mexico Clears Path for More Clean Energy Financing

New Mexico developers can now tap a state clean energy financing program after a new law took effect May 20, eliminating a barrier that had blocked projects financed through Industrial Revenue Bonds.  

House Bill 165 clarifies that Commercial Property Assessed Clean Energy (C-PACE) financing can be used on properties carrying Industrial Revenue Bonds (IRBs), which are commonly used in larger commercial and residential development The law also establishes  that owners and lessees, not local governments, are responsible for repayment, giving lenders and developers the legal clarity to move projects forward.

C-PACE is a financing tool that helps property owners pay for upgrades like energy-efficient lighting, heating and cooling systems, water-saving fixtures, and renewable energy. It covers up to 100 percent of project costs and is repaid over a longer period of time — up to 30 years — through a special property assessment. The program is funded entirely by private capital, with no public dollars required.

“This type of financing made it possible for us to move forward while developing high-quality, energy- and water-efficient housing for New Mexicans,” said John Murtagh, the developer behind the 248-unit LEED Gold Via Verde rental townhome development in Bernalillo County, the first C-PACE transaction to close in Albuquerque and Bernalillo County. “It helped us manage upfront costs and build a project that will be more efficient and more affordable to operate over the long term.”

Since launching, New Mexico’s C-PACE program has already supported nearly $146 million in projects, cutting energy and water use while reducing carbon emissions. With House Bill 165 in place, more properties can take advantage of this financing to upgrade buildings.