Town receives investment-grade energy-audit update; consultants point to grants and solar park-lighting awards

Town of Taos staff and Energy Systems Group (ESG) presented an update on an investment-grade energy audit on Feb. 25, outlining potential building energy and water improvements, solar projects and grant opportunities that could reduce utility costs and greenhouse-gas emissions.

Tara Trafton, account executive for Energy Systems Group, told the council the audit’s midrange scenario (60% development stage) shows a rough order-of-magnitude project cost of about $7.4 million, with an estimated town capital contribution of $3.6 million. She said available incentives and grants, including a Land and Water Conservation Fund package earmarked for solar park lighting, could offset most of the park-lighting cost: “Essentially, it’s $3,000,000 in park lighting for free,” she said when summarizing the parks grant scenario.

Nut graf: The audit proposes LED retrofits, building weatherization, HVAC replacements or control upgrades, solar photovoltaic arrays at several town facilities, and targeted water-conservation measures. ESG said modeled savings range from about 23% to 35% in energy-use intensity for included facilities and reported annual reductions of roughly 470,000 pounds of CO2. ESG presented an initial financing picture that, depending on final scope and grant awards, could produce net financed amounts substantially lower than the raw project total.

Trafton said the project team expects to finalize a single recommended scenario at the 90% design milestone in April and asked the town to coordinate with its financial advisor on financing preferences. She said implementation could begin as early as July if funding is in place. ESG emphasized its approach as an energy performance contract that guarantees energy and water savings: “If for whatever reason we don't hit those targets, then we're on the hook and we write a check for the difference,” she said.

Council members asked about specific items and grant mechanics. Mayor Maestas and others queried whether Investment Tax Credit or IRA direct-pay provisions were included; Trafton said the current estimate includes solar tax credit assumptions roughly applied to the solar portion of the project and that the team can recalculate costs excluding the credit if the council prefers not to assume its availability. Several councilors praised the parks-lighting grant prospect and asked staff to work with Kit Carson Electric on ownership and interconnection questions.

Other technical items: ESG is analyzing power-quality data from the town’s pool and evaluating whether existing solar panels (Town Hall) can be restored. Trafton noted some facilities may require controls upgrades rather than full HVAC replacement and that the audit team is considering water-meter replacements as an additional phase, which would be funded by increased revenue rather than traditional savings.

Next steps identified by ESG and staff include completing the 90% audit package in April, finalizing the project scenario, coordinating on grant applications and clarifying funding and financing approaches with the town’s financial advisor. No vote was taken; the presentation was informational and staff will return with refined numbers and proposals.