Office of Energy requests federal funds for Home Energy Rebates and seeks Speed Council funding to streamline permitting

The Governor’s Office of Energy and Mineral Resources (OEMR) outlined a rising portfolio of federal grant activity, a $24.5 million federal appropriation request to operate a Home Energy Rebates program, and a governor‑proposed initiative to create a “Speed Council” to coordinate permitting and transparency for large projects.

Kellen McGurkin, a Legislative Service budget analyst, explained that OEMR’s appropriations have grown primarily because the office has taken on federal grants to improve grid resilience and administer energy programs. McGurkin said the office’s Renewable Energy Resources Fund draws modest receipts from federal leases and royalties and that the agency relied on a $15 million one‑time transfer in FY2022 as the state match for an energy resiliency grant program (referred to in the hearing as POREG).

On the FY2026 requests, OEMR asked for an ongoing federal appropriation of $24,500,000 to operate the Home Energy Rebates program authorized under the Inflation Reduction Act of 2022. McGurkin described the requested split: $20,000,000 for rebates (trustee and benefit payments), $4,000,000 for administrative costs to procure and contract with a third‑party implementer (software, eligibility verification and distribution), and about $502,000 to fund four limited‑service full‑time positions to run the program through its duration. He said no state match is required for the federal funds.

Senators questioned the administrative share: members noted the 20% administration level the federal program allows and asked why administration appeared high relative to typical managed‑care style caps (~15%). Administrator Richard Stover responded that federal rules allow up to 20% for administration and that the initial $4 million would largely be used to procure an implementer; not all the administrative allowance may be drawn.

The governor’s recommendation included an additional ongoing $311,000 from the general fund and $170,000 one‑time to establish and operate a Speed Council (referred to in testimony with the Executive Order number provided in the presentation). The council would include leadership from multiple state agencies, be led administratively by OEMR, develop a public dashboard to track project timelines, and coordinate permitting, project timelines, and consultant support for large‑scale investments and critical infrastructure. The governor’s recommendation would fund a new management assistant position and part of the administrator’s salary to support the council.

Administrator Richard Stover described the council as focused on transparency, accountability and permitting reform to help Idaho manage rapid energy and economic growth; he said Idaho will need substantial additional generation over the next 10–20 years and that coordinated state action can reduce delays and improve local engagement.

OEMR staff told the committee the Home Energy Rebates program would be run through a third‑party implementation portal (examples mentioned: other states’ portals) and that contracts will be drafted to allow for wind‑down if federal obligations change. Committee members asked about nuclear energy and waste storage during the discussion; Stover said the office is developing an advanced nuclear energy industry strategic framework and noted Idaho National Laboratory is a significant state asset for nuclear work.

Committee members did not take immediate votes on OEMR requests. Analysts and the administrator indicated the office expects most administrative funding will be used to secure a third‑party implementer and that limited‑term positions would expire when federal funding ends.