Energy office seeks $24.5M federal appropriation for home energy rebates, proposes ‘speed council’ to streamline permitting

The Governor’s Office of Energy and Mineral Resources presented several funding requests and program updates Wednesday, including an ongoing federal appropriation request of $24.5 million for a Home Energy Rebates program and a separate governor’s initiative to create a “Speed Council” to coordinate permitting for large infrastructure projects.

Kellen McGurkin, budget and policy analyst with the Legislative Services Office, told the committee the requested $24.5 million in federal funds would be used primarily for direct rebates and program administration. The request breaks down as roughly $20 million in trustee and benefit payments for household rebates, $4 million in operating costs to contract a third‑party implementer for software and eligibility verification, and about $502,000 in personnel costs to add four limited‑service full‑time positions to manage the program through its expected federal funding window.

McGurkin and Administrator Richard Stover said the federal Home Energy Rebates funding comes from the Inflation Reduction Act and allows up to 20% for administrative costs; the office plans to use the administration allocation for procurement and implementation and said it expects to maximize funds delivered as rebates. Stover said the office will seek bids and use a third‑party implementer for the software portal and back‑end eligibility checks used in other states’ programs.

The office also described a major federal grant mix the agency administers to improve grid resilience. McGurkin noted a one‑time $15 million transfer from the General Fund for state match on an energy resiliency grant and several rounds of increased federal appropriations that the office is distributing to subgrantees for grid upgrades and wildfire‑resilience projects.

As part of a governor’s initiative (Executive Order referenced in presentation), the office proposed a Speed Council to coordinate permitting across state agencies for large‑scale and critical infrastructure investments. The governor’s recommendation attached to the budget included $311,000 ongoing from the General Fund for the council (including a new management assistant position and other operating costs) and $170,000 one‑time for initial development and a public dashboard to track project timelines. Stover said the council would focus on transparency, predictability and permitting reform to improve timelines for projects such as large energy investments.

Committee members asked about the program administrative cap — several members noted a common administrative target of 15% for some programs and asked why this request included 20% for administration. McGurkin and Stover replied the federal program allows up to 20% and that initial procurement and software implementation make up a larger up‑front share of administrative costs. They said contracts will be structured to wind down if federal funds are rescinded.