If the prospect of farolito traffic has you considering opting out, don't forget that the City of Santa Fe provides bus service to the PERA parking lot. Here's the city press release with the info:
Avoid the Fuss! Take the Bus to the Canyon Road Farolito Walk
For the past several years, those wishing to enjoy the Christmas Eve stroll down Canyon Road for the annual Farolito Walk have made a wise choice by boarding Santa Fe Trails buses at Santa Fe Place or the new location, South Capitol Station (between Cordova and St. Francis), and have experienced the beautiful sights with no worries about traffic snarls or parking. This year is no exception: buses begin boarding at 5:30 p.m. and passengers will be dropped off at the PERA building parking lot. The last bus departs from PERA at 9:30 p.m. with the destination indicated on the front lighted marquis. Regular fares are charged and youth under 18 ride for free. For more information contact Santa Fe Trails at (505) 955-2001.
And here's the latest update on that from the city:
CORRECTION: Please note the last bus departs PERA at 11:00 p.m. not 9:00 p.m. as previously stated.
ADDITION: All buses city-wide are free after 5:00 p.m. on December 24.