Energy Efficiency Revolving Loan Fund

A potential applicant should first fill out an RLF Interest Form.  ECAM staff will then reach out to discuss your interest in an energy efficiency project. 

You should expect a call from ECAM staff within 48 hours of submitting the Interest Form.

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).

If the Applicant choses to submit a qualifying audit that pre-exists the EERLF program for review and approval, EMNRD staff will need to certify the audit, including the retrofit workplan. If certified, ECAM staff will forward the Applicant to the New Mexico Finance Authority (NMFA). 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.

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 that meets all DOE requirements. 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.

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

Once the energy audit and the project have been reviewed and approved by ECAM, entities will be provided a loan application from NMFA. NMFA will review the loan application to determine if the entity 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 conducted the audit to complete the energy efficiency project.

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.

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.

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.

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.