JFAC debates $24.6 million Home Energy Rebates and a Speed Council; committee fails to approve federal rebate plan

The Joint Finance-Appropriations Committee debated two major requests from the Office of Energy and Mineral Resources (OEMR): authorization to administer a federal Home Energy Rebates program totaling roughly $24.58 million for FY2026, and a governor-proposed Speed Council that would receive $481,000 from the general fund and one full-time position.

Kellen McGurkin, budget and policy analyst with Legislative Services, told the committee the Home Energy Rebates program stems from the federal Inflation Reduction Act and provides Idaho roughly $80.8 million in federal funding through 2031; OEMR requested $24,579,900 in FY2026 to administer rebates and associated operations. McGurkin described the proposed FY2026 request as including $20,000,000 in trustee and benefits for direct rebates to Idaho households, $4,000,220 for contracting with a third-party implementer to manage eligibility and distribution software, and $502,000 for personnel (four limited-service positions).

McGurkin and members noted there is no state match required under current federal law; he said that under federal rules states that decline to administer the program may have their federal allocation redistributed to participating states.

Senator Woodward moved only the governor's Speed Council request (one FTE and $481,000 general fund), arguing the council would coordinate permitting for large infrastructure projects and could streamline development of energy and related infrastructure. Senator Ward Engelking offered an amended substitute that added the Home Energy Rebates program funding and the OEMR's requested fund shifts.

Committee debate was lengthy and divided. Supporters of the rebates argued the funds would flow directly to Idaho households, including seniors, veterans and people with disabilities, to reduce energy costs. Opponents and several members raised procedural and priority questions and said they had not seen consensus to accept the federal program administration request in committee. An amended substitute motion that would have added the Home Energy Rebates program failed to secure a committee majority. The committee-recorded grand total on that amended substitute motion was 9 ayes, 10 nays and 1 absent and excused.

Members discussed alternative approaches: using one-time governor's funds for the Speed Council or deferring the rebates decision pending additional support and review. Because the rebate administration request did not secure the committee's approval, the committee did not adopt that part of the OEMR request at this hearing.

Committee staff provided technical detail about fund sources, personnel and a proposed public dashboard for the Speed Council; members asked for additional information and the proposals may be reconsidered in follow-up meetings or in the other chamber.