Created by the 2005 Legislature (HB 32, Stewart), the Act authorizes NMFA to issue up to $20 million in bonds backed by the State’s Gross Receipts Tax to make loans to state agencies and public schools to fund energy efficiency and renewable energy measures at existing facilities. Under the program 90% of the expected energy utility bill savings are “captured” from the participating agencies’ budgets to pay debt service on the bond, thereby providing incentive for the agencies to improve their energy efficiency and to keep whole the General Fund.
Energy projects must complete an investment grade energy audit that analyzes what measures can be taken to create energy savings and the costs associated with implementing the energy conservation measures. The Energy, Minerals and Natural Resources Department must certify the need to issue Energy Efficiency Bonds based on the energy audit results.
Three separate bonds have been issued under the Act to date totaling approximately $1,150,000. Approximately $18,850,000 in authorized capacity remains.
For more information, please contact a Lending Officer.