Kristi Noem urged to reconsider rejection of $69 million in federal funding

A statewide advocacy group has launched a petition urging Republican Gov. Kristi Noem to reconsider her rejection of nearly $69 million in federal energy rebates for South Dakotans.

The national Home Energy Rebates program is funded with $9 billion from the Inflation Reduction Act. The program provides rebates for energy-efficient home retrofits and high-efficiency electric appliances.

South Dakota’s allocation is $68.56 million, but the state did not indicate its intent to participate before last month’s deadline. The state previously passed up $1.8 million to help set up and administer the program.

South Dakota is the only state not participating.

Jim Terwilliger, commissioner of the Bureau of Finance and Management, explained the Noem administration’s rationale during a July legislative budget committee meeting. He cited potential administrative burdens, limited staff and policy disagreements about federal spending.

“We just don’t believe that it’s the right thing for South Dakota,” Terwilliger said.

The petition urging Noem to change her mind on the energy program is from Dakota Rural Action, a grassroots organization focusing on family agriculture and conservation.

The group said it asked the U.S. Department of Energy if South Dakota could still participate. The department said the state could request a deadline extension, according to Dakota Rural Action.

“With every other state participating, it’s clear this is not just a ‘bad federal program,’” Dakota Rural Action said Friday in a news release. “If we don’t act, the money will go to other states, and South Dakotans will get nothing.”

The petition is open for signatures until Oct. 15 at dakotarural.org/heera.

A Sept. 24, 2024, map from the U.S. Department of Energy shows South Dakota as the only state not participating in the Home Energy Rebates program.

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