FAQs

Energy Efficiency Revolving Loan Fund

Who is eligible to apply for an EERLF loan?
Nonprofit and for-profit businesses that provide a community benefit and building owners whose buildings are used for a community benefit are eligible to apply. Community benefits may include healthcare, education, recreation, or cultural purposes, among other benefits. A potential applicant must also be able to demonstrate that more than 50 percent of its revenue is earned in the State of New Mexico or that more than 50 percent of services are provided in the State of New Mexico. To be considered for a loan, a potential applicant must also complete and submit a qualified commercial energy audit.

I’m a commercial building owner who can demonstrate my business provides a public benefit and I’m interested in a loan! How do I get started?
A potential applicant should first fill out an RLF Interest Form and/or email Energy Conservation and Management Division (ECAM) staff (emnrd.ecmd@emnrd.nm.gov).  Once you fill out the interest form, you should expect to be contacted by ECAM staff to discuss your interest in an energy efficiency project for your building.

How soon should I expect to be contacted by ECAM once I complete the Interest Form?
You should expect a call from ECAM staff within 48 hours of submitting the Interest Form. If you have submitted an audit of your building(s), ECAM will contact you initially within 48 hours after which it will take approximately 2 weeks to complete the review of your audit.

What are the minimum requirements for an audit for the EERLF program?
To be eligible for a loan under the New Mexico EERLF program, potential applicants must include an energy audit for review and approval. The elements of a qualifying energy audit are:

1. The audit must determine the facility’s overall consumption.
2. The audit must identify the period and level of peak energy demand for each building within the facility and the sources of energy consumption that are contributing the most to that period of peak energy demand.
3. The audit must recommend controls and management systems to reduce or redistribute peak energy consumption; and
4. The audit must estimate the total energy and cost savings potential for the facility if all recommended upgrades and retrofits are implemented, using software approved by US Department of Energy DOE (e.g., Audit Template, developed by Pacific Northwest National Laboratory).

I have already completed an audit on my building. What next?
If the Applicant choses to submit a qualifying audit that pre-exists the EERLF program for review and approval, EMNRD staff will certify the audit, including the retrofit workplan, and forward the Applicant to the New Mexico Finance Authority. The pre-existing audit will need to meet the following criteria:

• The audit needs to meet the conditions stated above.
• The audit needs to have been performed after May 20, 2021.
• The building(s) must not have undergone an addition, renovation or significant change in occupancy or function since the audit was performed.

Submit the RLF Interest Form to ECAM for review and approval noting that you have an audit or email the audit directly to emnrd.ecmd@emnrd.nm.gov. ECAM staff will review the audit and your project to see if it meets DOE requirements. It will take up to two weeks to complete the review of the audit.

I have not completed an audit for my building. What should I do next?
You can request a list of Energy Service Companies (ESCOs) from ECAM and schedule a qualifying audit with an ESCO that fits the project. In this instance, the pre-approved Energy Service Company (ESCO) will conduct an investment grade audit using DOE-approved software. ESCOs follow ASHRAE procedures for energy audits. EMNRD staff will certify the audit, including the retrofit work plan, and forward the applicant on to the New Mexico Finance Authority to complete the loan application.

How would I pay for the audit?
Potential applicants may choose to pay for the audit up front or roll the cost of the audit into the total energy retrofit project.

My audit has been approved. What next?
Once the energy audit and the project have been reviewed and approved by ECAM, an NMFA loan application will be provided to you to complete and submit to NMFA.

NMFA will review your loan application to determine if it meets the credit requirements of the program.

If approved, the loan will go to closing at which point applicants are free to contract with the ESCO who completed the audit to complete the energy efficiency project.

What if I want to use my own contractor for the upgrades to my building?
It is allowable to choose a preferred contractor to do the energy efficiency upgrades instead of one that is recommended by the ESCO. However, ECAM will need to vet and approve the contractor and ensure that they follow the prevailing wage requirements as required by the EERLF grant.

What are the parameters of the loan?

1. The proceeds of the loan can be used for energy efficiency audit costs, upgrades and retrofits that improve overall energy consumption. Some of these upgrades could include: smart thermostats, heating, ventilation and air conditioning (HVAC), windows and doors, insulation, heating systems, air sealing, lighting and building envelope upgrades and relevant, targeted roof repairs. Solar and electric panels are not eligible uses on a standalone basis but are eligible as part of a comprehensive energy efficiency upgrade.
2. Loans may be for amounts between $250,000 and $1,000,000.
3. Loans must be paid off by the earlier of: 1) the year in which the upgrades or retrofits carried out using the loan exceed their expected useful life; or fifteen (15) years after the upgrades or retrofits are installed.
4. Fixed interest rates of two percent (2%); interest paid monthly.

What will I need to complete a loan application?
The loan application includes, but is not limited to the following information:

1. Organizational chart and description of management team and staffing.
2. Composition and biographies of all governing board members.
3. Certificate of good standing from the New Mexico Secretary of State, if applicable.
4. Copies of applicant’s licenses and recent reports from all relevant regulatory bodies, if applicable.
5. Copy of applicant’s internal revenue service tax exempt determination letter, if applicable.
6. Applicant’s audited financial reports for the most recent three (3) years, or term of existence, and projected cash flows for at least three (3) years.
7. Any existing title insurance policies, title abstracts or searches of the real property owned by the applicant.
8. Written assurance acceptable to NMFA that the applicant has proper title, easements, leases, and rights of way to the property upon which any facility proposed for funding is constructed or improved.
9. Any additional information as requested by ECAM or the NMFA.

Are there any requirements concerning the upgrades?
Yes. The following elements are required for a commercial building upgrade or retrofit.

1. Any retrofit or upgrade must be recommended in the qualifying commercial energy audit for the building or facility of the eligible loan recipient.
2. The recommendations must be life-cycle cost-effective, that is, the life of the product or service must not be shorter than the life of the loan.
3. The upgrade or retrofit must improve the building or facility in at least one of the following ways:
   • The physical comfort of the building or facility occupants
   • The energy efficiency of the building or facility
   • The quality of the air in the building or facility
4. The upgrade or retrofit measures must lead to one of the following outcomes:
   • It must reduce the energy intensity of the building or facility, or;
   • It must improve the control and management of energy usage of the building or facility to reduce demand during peak times.

Please feel free to reach out to ECAM with any additional questions, emnrd.ecmd@emnrd.nm.gov.