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8A Page 4 The League has had many discussions in recent years regarding similar proposals to limit retention proceeds to 5 percent (AS 1949: Conroy, 1996, vetoed; AS 940: Miller, 1997, vetoed; AB 806: Keeley, 1999, vetoed; SB 619: Mlgden, 2008, held). The League continues to express concern over these measures because there is not an obvious reason to limit retention proceeds to 5 percent, but there are instances where 5 percent retention is simply insufficient, particularly for smaller agencies. Although Gov. Arnold Schwarzenegger has expressed concern with similar legislation in the past, cities cannot rely on a veto this year. Last year, the Legislature passed, and the Governor signed, SB 593 (Chapter 341, Statutes of 2008) which prohibited CalTrans from withholding retention proceeds. CalTrans has reported no negative effects resulting from this legislation. As such, the Governor's Administration has removed their opposition to legislation limiting retention proceeds. Take Action Now SB 802 Is awaiting a hearing in the Assembly Appropriations Committee, and has received little opposition in the legislature. The League strongly urges cities to send letters in opposition to SB 802 to their legislators and the Governor. Sample opposition letters are available on the League Web site. Visit www.cacities.oralbillsearch and type "S8 802" into the search box to access the letters. CEC Seeks Comments on Proposed EECSG Guidelines for Small Cities and Counties The California Energy Commission (CEC) staff held a workshop on Aug. 3 to brief stakeholders on revisions they had made to the proposed Energy Efficiency and Conservation Block Grant (EECBG) guidelines, based upon input from cities and other interested parties. The CEC is asking that all parties interested In EECBG funding for small cities and counties, review and comment on the commission's final proposed guidelines, no later than Aug. 10. The workshop highlighted some key changes which were incorporated into the final proposed guidelines to include the following: . Delete Limit on Administrative Costs. The 5 percent limit set forth in AB 2176 (Ch. 229/08), which sets forth criteria implementing the federal grant program, is deleted, as authorized in trailer bill legislation passed as part of the state budget package last month. Under the proposed final guidelines, the CEC is limited to 10 percent for grant administration; there is no limit on amounts that can be spent on administration for grant recipients. · If you can't use the funds, tell CEC as soon as possible. No less than 60 percent of California's EECBG funds must be allocated to eligible applicants. But CEC can reallocate the funds within California if your city does not have a project where they can be used. Otherwise, funds not spent in California will revert back to the federal government. · Collaborative Partnerships Possible. Small cities and counties may partner with other governmental agencies or with nonprofit organizations on eligible projects. · Equipment Purchases are Permitted. Grant funds may be used to pay for energy efficiency projects, or to purchase equipment associated with an energy efficiency effort, such as energy-efficient lighting. . All Small Cities and Counties are Eligible to Receive Funding. The new proposed guidelines establish minimum funding levels ($25,000 per city and $50,000 per county), 4