Las Cruces to act on energy upgrades for low-income households

LAS CRUCES — The city council will consider an ordinance at a future session to accept state funds and move forward on an energy retrofit program aiming to lower carbon emissions as well as energy bills for lower-income households.

Las Cruces is set to receive a grant of up to $642,469 in fiscal year 2026 under New Mexico’s Community Energy Efficiency Development (CEED) program, enacted by the state Legislature in 2022 to support upgrades to reduce energy costs aiming to provide financial relief, boost affordable housing and reduce greenhouse gas accumulations that drive climate change.

The city applied for a CEED grant to fund upgrades of residential appliances such as gas furnaces, heat pumps and air-conditioning units, according to a summary included in the council’s meeting packet.

The ordinance would effectively ratify a contract with the state Energy, Minerals and Natural Resources Department, which manages the grants. According to the EMNRD website, a total of $11.5 million has been awarded to projects in Las Cruces as well as Albuquerque, Santa Fe, Aztec; Bernalillo, Santa Fe and Taos counties and Housing New Mexico. The funds combine state appropriations with federal money.

Participation in the program helps the city deliver on two of its priorities: increasing affordability of housing and meeting targets under the city’s climate action plan.

Advocates for the 2022 law creating CEED cited research showing that 25% of low-income households spent at least 15% of their monthly income on energy costs. By targeting underserved communities and lower-income residences, CEED promised to update and improve existing affordable housing and lower costs for those populations while boosting energy efficiency.

Under its 2020 climate plan, Las Cruces aims to reduce local greenhouse gas emissions 19% by 2030, ramping up to 73% by 2050. Survey data included in that plan estimated that residential buildings contributed 17% of Las Cruces’ greenhouse gas emissions.

At the time of the climate plan’s adoption, Councilor Johana Bencomo noted the link between energy burden and financial position that the CEED program would later address. “Low-income communities of color are the ones that are at the frontlines of climate change,” she said. “They are experiencing these effects the worst.”

Under the contract governing the grant program, the improvement cost for a single residential unit would be capped at $16,000, although variances could be requested. The city would submit invoices to draw from grant funds with documentation requirements, including project performance data such as energy savings and other benefits.

At their regular meeting Monday, councilors simply heard a notice of the proposed ordinance, which will be drafted and introduced at a later date, with public discussion to come during the ordinance process.