Energy office seeks federal funding to run home‑efficiency rebates, proposes interagency SPEED Council

The Joint Finance-Appropriations Committee reviewed the Office of Energy and Mineral Resources’ (OEMR) budget, including federal grants for grid resilience, a proposed Home Energy Rebates program funded by the Inflation Reduction Act, and the governor’s recommendation to fund a multi‑agency “SPEED Council.”

Legislative analyst Kellen McGurkin summarized the office’s funding history and noted a large one‑time transfer: a $15 million state match transfer in FY2022 that was reappropriated to support the state match portion of federal energy resiliency grants (referred to in materials as POREG). He said OEMR’s federal appropriations have grown as the office administers rounds of competitive federal grant awards and that the Renewable Energy Resources Fund receives revenues from federal leases and royalties.

McGurkin described OEMR’s FY2026 request for an ongoing federal appropriation of $24.5 million to administer a Home Energy Rebates program established under the Inflation Reduction Act. He said the request breaks down to $20 million for rebate payments, $4 million for administrative and third‑party implementer costs (software, eligibility verification and contractor procurement), and about $502,000 for limited‑service personnel (four limited‑term positions) to administer the program through its anticipated end in 2031. McGurkin noted the federal rules allow up to 20 percent of program funds for administrative costs.

Administrator Richard Stover said the office expects to procure a third‑party implementer and that not all of the 20 percent administrative allowance will necessarily be drawn; the office intends to maximize funds available for rebates. Stover said OEMR models the limited‑term positions as grant‑funded roles that will end when federal funds are exhausted.

On the governor’s recommended initiatives, McGurkin explained the SPEED Council concept. If funded, the council would include leadership from OEMR and other agencies and would focus on streamlining permitting and increasing transparency for major infrastructure investments. The governor recommended $311,000 ongoing from the general fund to support the council — including $88,000 for a new management assistant, $75,000 to cover 40 percent of the OEMR administrator’s salary for council work, and operational support — plus $170,000 one‑time for an initial dashboard and startup costs.

Committee members questioned administrative costs, noting many programs aim to limit implementation overhead to 15 percent of funds; staff said federal rules for these rebates permit up to 20 percent for administration and that the $4 million figure is the office’s estimate for third‑party implementation expenses.

Stover also discussed broader supply and demand trends: he told the committee Idaho’s electricity demand could grow 30–50 percent in the next 10–20 years and said the SPEED Council aims to reduce regulatory friction and improve state coordination for large projects.

No votes were taken during the briefing; staff and members discussed contingencies and contract language to ensure contractors understand rescission and wind‑down conditions for federal funds.