Subscriber Organizations are reminded of the critical importance of adhering strictly to the ownership criteria and fulfilling their obligations regarding the proportion of the total project cost during the development period, as outlined and submitted in their individual bid submissions if the bid obtained points for being a qualifying business or partnering with one.

The Program Administrator retains authority to monitor the ownership structures and ensure fulfillment of the proposed project cost, with the primary objective of preventing any instances of gaming or misrepresentation of ownership.

In line with the program’s goals of supporting resident businesses and fostering ongoing community engagement in the New Mexico Community Solar Program, bid commitments must be fulfilled without modifications. Subscriber Organization cooperation in meeting these requirements is highly valued and appreciated, and InClime offers these FAQs and responses in order to provide clarity of the Rule and information helpful for Subscriber Organizations in meeting your project goals.

Frequently Asked Questions

What was the ownership formula used in the New Mexico Community Solar Program to obtain bonus points?

The ownership formula utilized in the evaluation process of the New Mexico Community Solar Program involved categorizing bids and assigning points based on the guidelines outlined in Section 13-1-21 NMSA 1978. The formula took into account the qualifying entity’s ownership percentage and the proportion of the total project cost provided or performed by that entity.

To provide transparency, fairness, and incentive for resident ownership, different formulas were applied depending on the specific procurement preference certification and the percentage of ownership held by the qualifying entity. The aim was to award bonus points to projects with a higher level of resident ownership.

As stated in the Request for Proposal (RFP), the following formulas were utilized for various scenarios:

  • Respondent is a resident business or Native American resident business: Points = 8% * 92
  • Respondent is a legal joint venture or partnership with a resident business or Native American resident business: Points = 8% * Ownership Percentage * Proposed Cost Performed by Qualifying Entity * 92
  • Respondent is a resident veteran business or Native American resident veteran business with an annual gross revenue up to $6,000,000 in the preceding tax year: Points = 10% * 92
  • Respondent is a legal joint venture or partnership with a resident veteran business or Native American resident veteran business: Points = 10% * Ownership Percentage * Proposed Cost Performed by Qualifying Entity * 92
  • Respondent is neither a resident contractor, Native American resident contractor, resident veteran contractor, nor Native American resident veteran contractor: Points = 0

What role does resident ownership play in the New Mexico Community Solar Program?

Resident ownership is a crucial aspect of the program during project development. Projects must fulfill their bid commitments and complete tasks associated with the obtainment of bonus points through resident ownership, including the proportion of the total project cost provided or performed by the resident qualifying entity. The program recognizes the importance of resident owners’ contributions and their long-term involvement in the project.

Can projects be sold or transferred to another resident owner?

The program allows for the sale of projects from one resident owner to another, provided that the bonus points awarded to the project remain the same or increase based on the same ownership formula. The transfer of ownership should occur between resident owners who would have received the same or more bonus points if they had been the original owner. This ensures the program’s objectives of supporting resident businesses and maintaining the integrity of the resident ownership requirements.

When can projects be sold or transferred to a non-resident owner?

Equity can be transferred at Mechanical Completion or at any time thereafter, but no earlier.

Can negotiations for project sales occur before mechanical completion?

Negotiations for project sales may occur before the project’s mechanical completion as long as equity or ownership is not transferred before mechanical completion. The qualifying entity must continue to fulfill its project development commitments used to calculate scores. However, the actual transfer of equity or ownership cannot occur before mechanical completion. This requirement ensures that resident ownership remains in place until the specified stage and that the resident owner has completed the project development milestones committed to in the project bid.

What are the key concerns for project owners in the New Mexico Community Solar Program?

Project owners must ensure they fulfill the ownership criteria and contribute the required proportion of the total project cost during the development period. They must also demonstrate substantial participation and engagement in the project development process.

Can the Program Administrator monitor project ownership after project selection?

Yes, the Program Administrator has the authority to monitor project ownership even after the project has been selected to ensure compliance with ownership requirements and prevent any attempts to manipulate or misrepresent ownership.  The Program also retains the right to monitor asset owners’ compliance, evaluate project sales to uphold program goals, and oversee project development to ensure the fulfillment of commitments and milestones. The monitoring process is essential for maintaining program integrity and achieving the desired outcomes. In instances of non-compliance, the Program Administrator will escalate the matter to the Attorney General’s Office.