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Las Cruces approves CPACE program to let commercial property owners finance energy and resilience upgrades
Summary
Council voted to allow the statewide Commercial Property Assessed Clean Energy program (CPACE) to operate in Las Cruces under the Improvement Special Assessment framework created by HB228; proponents said CPACE provides long-term, property-secured financing for energy efficiency and resilience measures and does not use public funds.
The Las Cruces City Council voted Sept. 2 to allow the Commercial Property Assessed Clean Energy (CPACE) program to operate within city limits under the Improvement Special Assessment framework established by New Mexico House Bill 228.
Why it matters: CPACE lets commercial, agricultural, industrial and eligible multifamily property owners finance energy-efficiency, resilience and clean-energy upgrades with fixed, long-term, property-secured financing that can cover direct and indirect project costs.
Isaac Colguin, who presented the measure alongside Eric Christiansen of Adelante Consulting, described CPACE as an alternate financing mechanism that has supported more than 3,300 commercial buildings nationwide. He said CPACE funding comes solely from capital providers, does not rely on government subsidies or public funds, and creates a property lien that may transfer with a sale. Eligible measures include lighting, HVAC, microgrids, EV charging, roofs and other resilience upgrades; terms can extend up to 30 years and programs commonly allow capture of recently completed qualifying measures through a look-back period.
Councilor Matisse asked whether lienholders and banks had raised concerns about CPACE liens. Presenters said lienholder consent is required when necessary and that some banks have provided consent in other New Mexico transactions; if a lienholder declines consent, the CPACE transaction will not proceed for that property. The council then voted to approve the resolution allowing the program to operate in the city.
Council roll-call recorded in the meeting transcript: Councilor McClure — yes; Councilor Matisse — no; Councilor Graham — yes; Councilor Kran — yes; Councilor Flores — absent; Councilor Bencomo — yes; Mayor Eric Enriquez — yes. The motion passed.
Ending: The resolution allows CPACE program activity to begin in Las Cruces subject to the statewide program administration. Individual projects will require property-specific diligence, lienholder consent where applicable, and private capital participation.
