New Mexico Cleans Up Buildings with $140M Green Loan Program

New Mexico is making it cheaper and easier to turn old, energy-guzzling buildings into eco-friendly spaces that save money and cut pollution.

The state just expanded its C-PACE program, which helps developers get low-interest loans for green upgrades like better insulation, solar panels, and water-saving fixtures. Since launching in 2023, the program has already funded over $140 million in improvements across five projects.

Here's what makes it special: developers repay these private loans through a small property tax, and lenders get extra security that lets them offer lower interest rates than typical construction loans. No taxpayer money is involved.

John Murtagh's construction company used a $33 million C-PACE loan to build Via Verde, a new townhome development in Albuquerque where 85 families have already moved in. The eco-conscious design means lower utility bills for residents, and the favorable loan terms helped Murtagh afford upgrades he might have skipped otherwise.

"Hopefully, between the interest savings and other things, I can actually make the project competitive compared to the competition," Murtagh said.

The timing matters because buildings are becoming New Mexico's biggest climate challenge. As the state works to clean up its electricity grid and transportation sector, residential and commercial buildings now account for over 3.7 million metric tons of carbon emissions annually.

The Ripple Effect

The program's impact goes beyond carbon. So far, these five projects have saved six million gallons of water and cut 2.8 million pounds of CO2 emissions. Residents and businesses are saving nearly $280,000 yearly on utility bills.

Seven counties and five cities have joined the program, including Albuquerque, Santa Fe, and Las Cruces. Eric Christensen, who manages the program, says awareness is growing as developers discover it can help close deals that were stalling due to financing challenges.

The average C-PACE loan runs $28 million, funding everything from energy-efficient lighting to wildfire-resistant improvements. The recent law change now lets properties that received industrial revenue bonds qualify too, opening doors for even more projects.

Governor Michelle Lujan Grisham's administration aims to cut New Mexico's greenhouse gas emissions 45% by 2030 compared to 2005 levels, with a goal of eliminating human-caused CO2 emissions entirely by 2050.

More communities across New Mexico can now build cleaner, more affordable spaces that protect both wallets and the planet.