Committee advances technical fix to let IRB projects use CPACE financing

Representative (speaker 21) told the committee HB165 is a technical amendment to New Mexico’s CPACE program that clarifies industrial revenue bond (IRB) projects are eligible for CPACE financing. The presenter said CPACE, run by Adelante Consulting under contract with the Economic Development Department, allows long-term loans or special assessments to finance energy and water efficiency and renewable-energy upgrades. The program launched in April 2024 and currently includes seven participating counties and five participating municipalities with five closed transactions.

Supporters from the Greater Albuquerque Chamber, a former county commissioner and New Mexico IDEA testified that the bill removes ambiguity and will allow more commercial and IRB-backed projects to use CPACE financing, helping with competitiveness and conservation goals. Members asked for clarification about liability language and special assessments for IRB leases; presenters said the change ensures municipalities and counties are not held liable and that in IRB/lease cases the lessee (the business) pays the special assessment. The sponsor said the bill is prospective—CPACE agreements would be entered after enactment—and not retroactive to existing IRB deals.

The committee moved and approved a 'do pass' recommendation for HB165 without recorded opposition at the hearing. The bill advances to the House floor for further consideration.