County Council adopts CPACE ordinance to enable commercial clean‑energy financing

Los Alamos County Council on Feb. 25 unanimously adopted Ordinance No. 738 to establish a local Commercial Property Assessed Clean Energy (CPACE) program that allows eligible property owners to secure private-sector, long-term financing for energy efficiency, renewable energy, water-efficiency and resiliency improvements.

The ordinance implements a financing structure enabled by state law under the Improvement Special Assessment Act (2023) and designates the county manager or designee to administer program signoffs. Abby Hayward, conservation coordinator with the county utilities department, told the council the program "provides eligible property owners with access to long term fixed rate financing for a range of energy efficiency, renewable energy, water efficiency, and resilience improvements." She emphasized the program uses private capital and imposes no county subsidy.

The nut graf: The CPACE model places a special improvement-assessment lien on participating properties and wraps a program administration fee into each loan closing rather than drawing on county funds. County officials said the ordinance is intended to help local commercial property owners and larger multifamily properties finance retrofits and resilience work while limiting county administrative burden.

Under the adoption, the county will rely on a statewide program administrator contracted by the state Economic Development Department; Adelante Consulting will serve as the program administrator and was represented at the hearing by Eric Christensen. Christensen summarized how the program works: property owners negotiate terms with private capital providers, submit an application and a professional certificate of eligible improvements, and the county's designated representative signs closing documents that place the special assessment lien on the property. The lender, not the county, is responsible for billing and collection.

Key program elements discussed in the presentation and during council questions: - Eligible improvements: energy efficiency measures, water conservation, renewable energy (solar PV, microgrids, EV charging) and resilience measures (stormwater, wildfire hardening). Eligible properties include privately owned commercial, agricultural, industrial and multifamily buildings of five or more units; nonprofit-owned properties may also qualify. - Funding: All capital is private-sector; CPACE does not use federal or county funds. Adelante's administrative fee is 1% of financing (capped at $25,000) and is paid at loan closing and incorporated into the financed amount. Hayward said that "there is a 1% program administration fee...so there's no financial burden to the county." - Lien priority and consent: The special assessment lien is superior to other liens except for general ad valorem property taxes (and some improvement district liens that are coequal). Existing lienholders must provide consent for CPACE financing; program staff said lienholders can decline to protect their security interests. - Examples: The consultant presented three closed transactions in New Mexico: a large $76 million financing for a resort that recapitalized prior improvements; a $10 million refinancing for an event/retreat center in Santa Fe County; and a $5 million transaction for a boutique hotel in Taos.

Councilors asked about program oversight and effectiveness. Councilor Reiting asked whether the program includes an audit to verify projected savings. Christensen said the required certificate and energy report are prepared by a third-party professional retained by the applicant; the program administrator does not perform on-site audits to verify realized savings after closing. He said, "the only audit from the program standpoint is what is conducted by that third-party professional brought in by the applicants."

Councilors also asked whether the administrative fee cap ($25,000) is a New Mexico-specific limit; Christensen said it is set by New Mexico statute and could be changed only through amendment. Several councilors pressed on availability of lenders for smaller projects; Christensen said many specialty CPACE lenders focus on larger deals and the program is engaging local credit unions and the New Mexico Climate Investment Center to fill a gap for small and mid-size projects.

Two members of the public spoke in support. Phil Gersti, a developer with a contract to acquire a vacant property near the airport, said his firm plans to use CPACE to finance on-site renewable energy, water conservation and resiliency measures for a proposed light-lab and office project. Sandy Jones, representing the Los Alamos Commerce and Development Corporation, urged adoption and said the program would help owners and their tenants by spreading costs over long terms.

The council's final motion to adopt the ordinance was moved by Councilor Hamman and seconded by Councilor Neill Clinton. A roll-call vote recorded seven affirmative votes and no oppositions; the motion passed unanimously.

What changes now: County staff will publish the ordinance in summary form as required and the county's designated representative will sign closing documents when individual projects are approved. Hayward said the water and energy conservation coordinator and the county's sustainability manager will prepare educational materials and outreach to local businesses.

Ending: Council members who spoke in favor noted the program aligns with local climate-action goals while imposing little administrative burden on the county; members who sought additional data flagged that the program administrator does not perform post-closing audits and that realized energy savings depend on measures installed and on lender/borrower follow-up.

Votes at a glance: Ordinance No. 738 (CPACE program) — adopted unanimously, 7-0.