[USA] SD Governor Noem rejects more than $70 million in federal funds for energy and environmental programs

On August 23, 2024, a top budget official stated that South Dakota Governor Kristi Noem’s (R) administration turned down more than $70 million of federal funding from energy efficiency and environmental programs. [1] The Home Energy Rebates program was intended to provide the state with $69 million to give South Dakotans rebates for energy-efficient home retrofits as well as highly efficient electric appliances. The deadline, which has now passed, was last week. Earlier this year, the state also passed up $1.8 million to help set up the program. Noem’s Bureau of Finance and Management Commissioner Jim Terwilliger explained the decisions, referencing administrative burden, staff limitations, and policy disagreements. The funding, which originates from the 2022 Inflation Reduction Act, was a source of controversy on the legislative budget committee as some lawmakers disagreed with the decision to pass up on the money. The state also passed up its share of $1 billion for states to adopt the latest building energy codes. According to the Department of Energy, the program would have reduced South Dakota’s carbon dioxide emissions by about 42 million metric tons over the course of 30 years, with estimated cost savings of $9,027 per South Dakota home.

[1] https://southdakotasearchlight.com/2024/08/23/noem-rejects-more-than-70-million-in-federal-funds-for-energy-and-environmental-programs/