By Conference Staff
August 2, 2010

As cities work to expend Energy Efficiency and Conservation Block Grant (EECBG) funds provided in last year’s economic recovery package, key Congressional actions indicate that additional energy block grant funds will not be forthcoming prior to the November elections.

During committee action this month, House and Senate appropriators affirmed President Obama’s recommendation to provide no additional EECBG funds to cities and counties during the upcoming fiscal year, which begins October 1.

In another development, Senate leaders have abandoned recent efforts to craft a comprehensive federal energy and climate package; inclusion of a multi-year funding commitment to the EECBG program in this legislation has been a top legislative priority of the Conference and the nation’s mayors for some time. Congressional champions of broader energy and climate measures, including caps on carbon emissions, had expected to engage the legislative debate to seek greater federal investment in energy block grants and other initiatives that curb energy use and climate emissions and accelerate the transition to greener economy.

With the abandonment of work on a bolder package, the Senate has shifted to action on more targeted proposals, including new safety rules and liability changes applicable to companies drilling for oil offshore. In addition, the Senate is expected to consider legislation that includes other energy-related measures, such as new incentives to boost plug-in electric vehicles and the Administration’s Home Star energy efficiency retrofit program. For now, Senate Majority Leader Harry Reid (NV) has dropped a renewable energy standard (RES) from the package he expects to bring before the Senate prior to the August recess.

Regarding appropriations, Congressional leaders have responded to growing concerns about deficit spending by adopting fiscal year 2011 spending levels for their respective spending bills below levels in the President’s Budget Request. A House Appropriations Subcommittee approved its version of the FY’11 Energy and Water Development Appropriations Act that was nearly $700 million below President Obama’s request; the Senate Appropriations Committee measure is more than $300 million below the President’s request. This tightening of spending has created another hurdle for Senators and Representatives advocating for additional EECBG funding, an effort that was already significantly compromised by the Obama Administration’s budget recommendation earlier this year.