Energy office seeks federal home-rebate funds, proposes "Speed Council" to streamline permitting

The Joint Finance-Appropriations Committee heard an extended presentation from the Governor’s Office of Energy and Mineral Resources (OEMR) on federal grant administration, a proposed federal-funded home-energy rebates program and a governor-initiated Speed Council to coordinate permitting and project oversight.

Kellen McGurkin, budget and policy analyst for the Legislative Service Office, reviewed the agency’s funds and recent increases from federal grants. He noted a one-time $15,000,000 transfer the office received in FY2022 as the state match for an energy-resiliency grant program (referred to in the presentation as POREG) and that federal appropriations and reappropriations have driven the agency’s appropriation growth in recent years. McGurkin said the office typically allocates funds to subgrantees to improve grid resiliency and prevent outages.

The office’s FY2026 request includes an ongoing federal appropriation of $24,500,000 to administer the Home Energy Rebates program. McGurkin said that request is structured as: $20,000,000 for trustee and benefit payments (direct rebates), $4,000,000 for administrative and implementation costs (contracting with a third‑party implementer for software, eligibility verification and distribution), and $502,000 for limited-service personnel (four limited‑service full‑time positions). He said no state match is required for the federal funds.

Administrator Richard Stover described the Speed Council proposal, included in the governor’s recommendation, which would direct OEMR to lead a multi-agency council focused on permitting reform, transparency and project tracking for large-scale and critical infrastructure. McGurkin said the governor’s recommendation included $311,000 ongoing from the general fund for the council — including $164,000 in personnel costs (which includes funding for an 88,000‑dollar management-assistant position and a partial (40%) funding of the administrator’s current salary) and $170,000 one‑time for initial dashboard development and start-up costs.

Lawmakers pressed agency staff on administrative costs. Senator Cook and others asked why the presentation shows 20% budgeted for administration on the rebate program when typical administrative caps in some programs (for example, managed‑care contracts) are closer to 15%. Administrator Stover replied the federal Home Energy Rebates program allows up to 20% for program administration and that OEMR expects the initial portion to be used for procuring and standing up a third‑party implementer. “While we’re requesting the 20% because of the administrative cap allowance, that may not all be drawn,” Stover said.

Representative Mitchell and others asked what the Speed Council would accomplish and the expected return on investment. Stover said the office has seen a roughly 40% increase in energy and mining project activity in recent years and that the council would pursue transparency, accountability and permitting reforms to reduce duplication and speed timelines for projects the state deems critical. He cited examples of projects that may fit the program — large manufacturing expansions or water‑treatment infrastructure — and said Idaho faces growing electricity needs.

On energy demand, Stover told the committee that Idaho could see a 30%–50% increase in needed generation over the next 10–20 years. He described regional needs in the Northwest and said, by way of illustration, that a single nuclear plant supplies roughly 1,100 megawatts and that Idaho will need multiple large generators or comparable capacity additions to meet future demand.

Members also asked about program wind‑down and contractual protections in the event federal funds are rescinded. Stover and staff said contracts and grants would be written with standard federal‑funding language to address rescissions and wind‑down obligations and that the state is designing contingency and exit plans.

No formal committee action or vote was taken during the presentation; members asked staff for additional detail and noted concerns about administrative percentages and program design as they consider the FY2026 requests.