This is a weekly series reporting on environment and energy related legislative, regulatory, and legal issues in California. It is intended as a supplement to ML Strategies’ existing weekly Energy and Environment Weekly Update, which focuses on federal policy.

OMB Director Zients responds to GOP efforts to cut unobligated stimulus funds House Appropriations Committee Ranking Member Jerry Lewis (R-CA) last week introduced a bill, H.R. 6403, to rescind all Recovery Act funds that have yet to be obligated, such as the loan guarantee program. He also sent a letter to the President along the same lines. In reply, Acting White House Office of Management and Budget Director Jeffrey Zients sent a strongly worded defense of Recovery Act funding to Rep. Jerry Lewis. As Lewis is from California, the letter points out some of the spending that the state would lose if his bill were to pass. For instance, the bill would threaten $2 billion for high speed rail in California, a loan guarantee for the $1.4 billion BrightSource solar project in Lewis's own district, and two Department of Transportation grants for road and rail improvements.