State CPACE program explained to Roosevelt County as option for Navitas retrofit
Loading...
Summary
Eric Christensen of the New Mexico CPACE program briefed the commission on Commercial Property Assessed Clean Energy financing, explained that counties must opt in by ordinance, described lien mechanics and administrative fees, and said Navitas is considering CPACE for a Roosevelt County retrofit project.
Eric Christensen, manager for the New Mexico CPACE program and a representative of Adelante Consulting (program administrator), told the Roosevelt County Commission that commercial property owners and developers can use CPACE financing to fund energy efficiency, water conservation, renewable energy and resiliency projects, and that the program requires a county ordinance to opt in.
Christensen said CPACE financing is provided by private lenders, not public dollars, and noted the program was authorized by the 2023 Improvement Special Assessment Act (House Bill 228). He said the CPACE administrator handles application processing and documentation, that lenders disburse funds upfront and collect payments, and that a special-assessment lien is placed on the property and remains with the property if it is sold: "Once the project is complete... there is a special assessment lien that is placed on that property," he said.
Christensen described eligibility and common uses: privately owned commercial, agricultural, industrial or multifamily properties with five or more units, and not-for-profit properties can also opt in. Typical measures include lighting, HVAC, insulation, hot-water systems and sometimes solar and resilience measures. He said the administrator’s closing fee is typically 1% of the transaction (capped at $25,000) and is paid by the lender at closing.
Christensen said Navitas has approached the county about retrofitting a plant in Roosevelt County and that Navitas would need the county to pass an ordinance to use CPACE. Commissioners and county staff asked clarifying questions: Madeline Parker pressed for project-level costs and payback numbers; Christensen said he did not have detailed totals on hand and that CPACE often covers only eligible portions of larger projects. The deputy treasurer asked whether the special assessment carries a separate tax rate; Christensen replied it does not and said lenders typically handle billing and collections so counties do not have to process funds.
Stephen Floyd, the county assessor, asked how defaults would be treated; Christensen said the lien would remain on the property and any purchaser would inherit remaining payments and that the county would not assume lender losses.
Christensen closed by offering follow-up and case studies, including a large Bishop’s Lodge transaction in Santa Fe County and other multi-million-dollar examples in the commission packet.
