U.S. EPA pushed back yesterday against the latest effort to cut the agency's budget, defending the purpose of unobligated funds that House Republicans have targeted as potential savings.

Earlier this week, Energy and Commerce Republicans requested that EPA -- along with the departments of Energy, Commerce, and Health and Human Services -- explain why billions of dollars remain unspent at the end of each fiscal year. The letters to the agencies rose out of hearings on cutting agency budgets held by committee Chairman Fred Upton (R-Mich.) and Oversight and Investigations Subcommittee Chairman Cliff Stearns (R-Fla.) (E&E Daily, Oct. 26).

The committee cited data from the end of fiscal 2010, when EPA had $4 billion in unobligated funds. But an EPA spokesperson yesterday provided an updated amount and explained why the vast majority cannot offset new appropriations.

The agency carried over about $3 billion in unobligated funds from fiscal 2011, according to the agency. About $1.8 billion sits in special accounts for Superfund sites. That account holds funds from settlements with entities who are "potentially responsible" for the cleanup of the hazardous waste sites. Keeping money in the fund ensures that the dollars are available for future work at specific sites.

Some of the remaining $1.2 billion can be rescinded "based on what is in the Agency's appropriations bill," the spokesperson said. But much of it is tagged for state and tribal grants, which often take two years to obligate because of coordination with local entities. The funds that remain unobligated beyond two years are usually earmarked dollars, according to the agency.

Upton and committee Republicans gave agencies until Nov. 7 to provide such data, along with details on the funds carried over from fiscal 2009 and past instances when unobligated funds have offset budget requests to Congress. They cited the need for such information as agencies prepare their fiscal 2013 budget requests and Congress looks for places to cut government spending.