Committee advances HB165 to let IRB projects access CPACE financing

Representatives considered House Bill 165, which would permit commercial projects that use industrial revenue bonds (IRBs) to access Commercial Property Assessed Clean Energy (CPACE) financing. The sponsor said the change would remove a technical exclusion that currently prevents certain IRB projects from using CPACE and would not make public entities liable for private payments.

Supporters told the committee that aligning IRBs and CPACE would expand access to financing for energy and water efficiency upgrades without state spending. "CPACE is a proven tool that helps businesses finance energy and water efficiency," a New Mexico IDEA representative said, and Matthew Stack of the Greater Albuquerque Chamber of Commerce said the clarification "clears an unnecessary barrier and helps bring additional investment dollars into New Mexico."

A motion for a due pass carried in committee with a roll call of 10 yes and 0 no. Sponsors said counties opt into CPACE and that existing participation includes seven counties and five municipalities; five transactions have closed to date, according to the sponsor's description.