Title
Adoption of Incorporated County of Los Alamos Ordinance No. 738 An Ordinance Enacting an Improvement Special Assessment Program Within Los Alamos County; Designating the County Manager or Designee to Administer the Program and Execute Necessary Documents to Enable Special Assessment Financing Within Los Alamos County; Approving the Program Guidebook and Related Documents Required to Implement the Program; and Providing for Other Matters Properly Relating Thereto (Referred to as the Commercial Property Assessed Clean Energy [C-PACE] Program)
Recommended Action
I move that Council adopt Incorporated County of Los Alamos Ordinance No. 738; An Ordinance Enacting an Improvement Special Assessment Program Within Los Alamos County (Referred to as the Commercial Property Assessed Clean Energy [C-PACE] Program).
I further move that, upon passage, the Ordinance be published in summary form.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Council adopt Ordinance No. 738.
Board, Commission or Committee Recommendation
The Board of Public Utilities approved this request at their regular meeting on December 4, 2024 and recommends that Council adopt Ordinance No. 738.
Body
The Commercial Property Assessed Clean Energy (C-PACE) Program is a financing structure enabled by state statute and local ordinance that provides eligible property owners with access to long-term fixed-rate financing for a range of energy efficiency, renewable energy, water efficiency, and resiliency improvements. The program allows local governments to secure the financing via a special improvement assessment on the improved property. New Mexico first enacted C-PACE legislation in 2009, later followed by the Improvement Special Assessment Act enacted in 2023 via House Bill 228, which authorized counties to impose, administer and disburse special assessments to encourage the development of certain property improvements (also called C-PACE financing). Eligible properties are any privately-owned commercial, agricultural, industrial, or multi-family real property of five or more dwelling units located within the boundaries of the region (including properties owned by a nonprofit organization).
County and municipal governments must pass an ordinance opting into the statewide program in order for properties within a municipality to be eligible for program financing. Only county governments are required to pass an ordinance for properties that are not within a municipality. The Los Alamos County Attorney's Office has drafted an ordinance to be introduced into the Economic Development section of the County Code.
Bernalillo County, Santa Fe County, Taos County, Albuquerque, Santa Fe, and Taos have passed C-PACE ordinances.
The Board of Public Utilities (BPU) and the Environmental Sustainability Board (ESB) have both reviewed the C-PACE program at December 4, 2024 and December 19, 2024 meetings, respectively, and moved forward with recommending Council's adoption of the Ordinance, passing BPU 4-1 and ESB 4-1. The Los Alamos Commerce and Development Corporation also conducted an informal polling of property owners with favorable support (Attachment D). This Ordinance would also assist movement in several Climate Action Plan items.
Alternatives
If the Ordinance is not approved, the C-PACE financing structure will not be available to commercial property owners within Los Alamos County.
Fiscal and Staff Impact
There is no fiscal impact for enacting the Ordinance. This program is managed by the State of New Mexico's consultant and there is a loan closing fee of 1% that sustains the program without need for federal funds. The County Manager or designee has to sign the agreement prepared by the consultant. The DPU Water and Conservation Coordinator and the Sustainability Manager will work on educational materials to the business community, which is within the scope of work for these positions.
Attachments
A - NM C-PACE Program Overview
B - C-PACE Program-Guidebook_NM
C - LAC Ordinance No. 738
D - Publication Notice
E - C-PACE CAP Impact and Business Support