Office of Energy and Mineral Resources seeks federal funding to run Home Energy Rebates; governor’s ‘Speed Council’ proposed for permitting reform

The Joint Finance-Appropriations Committee reviewed multiple requests and proposals from the Governor’s Office of Energy and Mineral Resources. Legislative analyst Kellen McGurkin summarized the office’s expanded role managing federal grant programs and explained requests for FY2026, including a $24.5 million federal appropriation to administer the Home Energy Rebates program and a governor-recommended general‑fund initiative to fund a “Speed Council.”

McGurkin said federal appropriations and reappropriations have grown OEMR’s total appropriation in recent years. He described a one-time $15 million transfer in FY2022 that represented a state match for the federal energy resiliency grant program (referred to in materials as POREG) and noted ongoing increases in federal grant activity. McGurkin said the Home Energy Rebates program stems from the Inflation Reduction Act of 2022 and the federal allocation for Idaho totals about $80.8 million.

The office is requesting an ongoing federal appropriation of $24.5 million to run the program, of which $20 million would fund rebates (trustee and benefit payments), $4 million would be for administrative/operational costs to procure a third‑party implementer and run software/eligibility checks, and about $502,000 would fund four limited‑service FTP positions to administer and oversee the program through its expected duration. McGurkin told the committee the federal rules allow up to 20% for administrative costs and that the office expects most dollars will ultimately be used for rebates.

Administrator Richard Stover told legislators the governor’s Speed Council (if funded) would be a cross‑agency body to streamline permitting for large-scale projects and to create a public dashboard tracking project timelines. The governor’s recommendation includes $311,000 ongoing from the general fund (including funds for personnel and operating costs) and $170,000 one‑time for initial dashboard development; of the ongoing general‑fund request, about $164,000 is personnel costs, including funding for one new management-assistant position.

Lawmakers raised questions about the 20% administrative cap (Senator Cook noted managed-care norms typically target 15%). Stover said the 20% cap is allowed by the federal program and that the administration funds would be used initially to procure an implementer; not all administrative dollars may be drawn down, he said. Senators and representatives also questioned what would happen to limited‑term staff when federal dollars end; McGurkin and Stover replied the positions are limited service and are expected to end with the grant period.

Committee members asked about energy demand and the state’s broader energy strategy. Stover said Idaho and the Northwest are expecting large near-term growth in generation need — he cited estimates of a 30–50% increase in Idaho’s generation needs over the next 10–20 years and discussed work on advanced nuclear and other options through the Idaho Strategic Energy Alliance and Idaho National Laboratory partnerships.

No spending bills were adopted in the hearing; the presentation conveyed requests and the committee’s questions emphasized administration, contingency plans for funding changes, and the proposed Speed Council’s role in permitting and transparency.