Office of Energy requests $24.5M federal for Home Energy Rebates, governor proposes Speed Council to streamline permitting

Kellen McGurkin, Legislative Services analyst, outlined the Office of Energy and Mineral Resources’ (OEMR/OER) budget and federal grant activity, noting significant federal funds and reappropriations tied to grid resilience grants and other federal programs.

McGurkin said the agency received a one‑time $15,000,000 general‑fund transfer in FY2022 as the state match for a grid‑resilience grant program (referred to in testimony as POREG). The agency has since administered rounds of federal grants and in FY2025 carried forward reappropriations related to those awards.

On program requests for FY2026, McGurkin described the agency’s request for an ongoing federal appropriation of $24,500,000 to administer the Home Energy Rebates program established under the Inflation Reduction Act of 2022. He said the requested total breaks down as $20,000,000 for rebates (trustee and benefit payments), $4,000,000 for operational costs to procure a third‑party implementer (software/platform and eligibility verification) and $502,000 for personnel costs to add four limited‑service FTE to manage the program through its duration. McGurkin noted there is no state match required for these federal funds.

Senators questioned administrative costs: one lawmaker observed that the $4,000,000 operations request is roughly 20% of the total request and asked whether that exceeded normal administrative percentages. McGurkin and Administrator Richard Stover responded that the federal program allows up to 20% for administrative costs and that OEMR expects to go to bid for a third‑party implementer; not all of the 20% may be drawn down. Stover said the implementation procurement will be designed to maximize funds flowing to rebates while complying with federal requirements.

The governor’s recommendation included funding to create a permitting “Speed Council” (referenced as an initiative in executive order). The proposed council would be led by OEMR, include representatives of key state agencies, develop a public dashboard to track project timelines, and have authority to enter contracts for staffing and consultant support. The recommendation included $311,000 ongoing from the general fund (about $164,000 in personnel costs, including a new management assistant) and $170,000 one‑time for initial dashboard and startup costs; part of the funding shifts the administrator’s time to the general fund for council work that does not fit existing dedicated funding sources.

Administrator Richard Stover described the rationale: Idaho’s energy and industrial project volume has increased, the state needs to coordinate across agencies, and the council would focus on transparency, predictability and permitting reforms for large‑scale investments. Stover told the committee "the primary tenants of the council are number 1, transparency. Number 2, accountability and predictability. And number 3, recognition or identification and recommendations for permitting reformations."

Stover and staff also discussed nuclear energy and spent‑fuel topics; he said the state is studying advanced nuclear opportunities and noted Idaho National Laboratory’s role in research and potential recycling efforts. He said Idaho projects are likely to need additional generation — he cited a 30–50% increase in Idaho’s energy needs over the next 10–20 years and regional needs in the tens of thousands of megawatts — to explain the urgency for coordinated permitting and infrastructure planning.

On program risks and contracts, Stover said OEMR will design grant and implementer contracts with standard federal clauses for obligations and rescissions so funds can be wound down if federal appropriations change. The committee asked several operational questions but took no formal funding votes during the hearing.