2023 New Mexico Statutes › Chapter 5 - Municipalities and Counties › Article 18 - Renewable Energy Financing District Act › Section 5-18-4 - Renewable energy financing districts authorized.

A. A governing body of a municipality or county may form a district for the purpose of encouraging, accommodating and financing renewable energy improvements on property within the municipality or county. A district shall include only property for which an owner executes an agreement consenting to the inclusion of the property within the district and to the imposition of a special assessment on the property for the purpose of financing renewable energy improvements.
B. A district formed by a municipality shall be wholly within the boundaries of the municipality. A district formed by a county shall be wholly within the boundaries of the county and shall be in the unincorporated area of the county, or may include an incorporated area with the municipality's consent. A district may include contiguous and noncontiguous property.
C. Except as otherwise provided in this section, a district shall be a political subdivision of the state, separate and apart from the municipality or county.
History:
Laws 2009, ch. 180, § 4.
ANNOTATIONS
Effective dates.
— Laws 2009, ch. 180 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 19, 2009, 90 days after the adjournment of the legislature.
The Renewable Energy Financing District Act does not contemplate the use of direct to property owner loans as a financing procedure.
— The Renewable Energy Financing District Act (REFD Act), 5-18-1 to 5-18-13 NMSA 1978, enacted by the New Mexico legislature to enable alternative financing for renewable energy improvements, authorizes a governing body of a municipality or county to form a district for the purpose of encouraging, accommodating and financing renewable energy improvements on property within the municipality or county; upon formation of a district, the REFD Act authorizes the district board to impose a special assessment on property within the district to facilitate the financing of renewable energy improvements to the property and to issue one or more series of bonds, payable from the special assessments levied, to provide money for renewable energy improvements to property in the district. Such bonds shall be made payable as to both principal and interest solely from revenues of the district. The REFD Act does not authorize a county to implement or administer direct lending as between property owners and financing institutions for the purpose of financing renewable energy improvements.
Administration of Residential Property Assessed Clean Energy (PACE) financing loans
(10/21/19), Att'y Gen. Adv. Ltr. 2019-04.
The Renewable Energy Financing District Act does not violate the anti-donation clause.
— An anti-donation clause violation occurs when there has been an outright gift of money or property to a private entity with no exchange of adequate consideration. Under the program established by the Renewable Energy Financing District Act (REFD Act), neither a county nor a municipality would be lending or pledging the county's credit or making a donation to a property owner or a financing institution; special assessment bonds issued pursuant to the REFD Act are not a debt or general obligation of the county or the municipality in which the district is located, nor is the payment of special assessment bonds enforceable out of any money other than the revenue pledged to the payment of the bonds. The REFD Act therefore does not violate the anti-donation clause.
Administration of Residential Property Assessed Clean Energy (PACE) financing loans
(10/21/19), Att'y Gen. Adv. Ltr. 2019-04.
The renewable energy special assessment constitutes a lien on the property.
— The Renewable Energy Financing District Act (REFD Act) provides that a renewable energy special assessment shall constitute a lien on the property, which lien shall have priority over all other liens except liens for ad valorem property taxes. Thus, under the REFD Act, liens created by the renewable energy special assessments would assume priority over first mortgages, secondary home lines of credit, or other traditional residential financing mechanisms.
Administration of Residential Property Assessed Clean Energy (PACE) financing loans
(10/21/19), Att'y Gen. Adv. Ltr. 2019-04.