By PAUL HAMMEL
Nebraska Examiner
LINCOLN — A state official confirmed Monday that Nebraska has applied for $3 million from the federal Inflation Reduction Act to finance a state climate plan.
It remained unclear whether the state will apply for more of the $91 million set aside for Nebraska via the $700 billion IRA, a proposal of President Joe Biden passed on a bipartisan vote of Congress.
There had been some uncertainty about whether Nebraska would seek any portion of the federal funds.
State Sen. Carol Blood of Bellevue had introduced a bill to require the state to seek the “all funds” made available under the act, which includes money for weatherization projects in homes and businesses, electric vehicle infrastructure and agricultural practices that are drought resistant and use less water.
Blood said it didn’t make good “business” sense to allow taxpayer dollars provided by Nebraska to go to another state, as happened last year when then-Gov. Pete Ricketts declined $120 million in federal rental and utility aid.
Jim Macy, director of the Nebraska Department of Environment and Energy, told members of the Legislature’s Appropriations Committee on Monday that the state applied March 10 for $3 million in federal funding.
Will state seek more IRA funds?
Lincoln Sen. Anna Wishart asked Macy if the state would apply for additional funds, and the director responded that applications for other portions of the IRA have not yet opened.
After the hearing, Wishart said the weatherization funds offered via the IRA could be used to help reduce energy bills on older homes.
Omaha Sen. Justin Wayne presented a bill Monday that would add $1 million a year in funding to NDEE’s Weatherization Assistance Program.
Officials with the Omaha Public Power District, Habitat for Humanity, the Nebraska Housing Developers Association and Community Action of Nebraska all testified in favor of Wayne’s LB 237.
IRA could help weatherization
Weatherization, such as additional insulation and new furnaces, can cut energy costs by up to 25%, which is a big boost for low-income families struggling to pay other bills, the committee was told.
Tracie McPherson of Habitat for Humanity of Omaha said its weatherization program has helped people who don’t even have a furnace and have been relying on wood stoves for heat.
Macy, who testified Monday for the NDEE’s budget proposals, also told the Appropriations Committee that the agency will seek a third party to conduct a $1 million, statewide study of where nitrate pollution in groundwater is most problematic.
Macy said that such a study, which was part of Gov. Jim Pillen’s budget proposals, would help determine where nitrate levels may be rising or falling and where remediation work is most needed.
Last year, the Legislature allocated $150,000 from its American Rescue Plan Act funds for the University of Nebraska-Lincoln to update a climate change assessment done in 2014.
David Corbin of the Sierra Club of Nebraska said Tuesday that he’s encouraged that the state will do more and is seeking the federal funding.
The state’s decision comes after the Omaha City Council, last week, hired a consultant to develop a Climate Action and Resilience Plan for the city.