Budget Oversight Hearing on DOEE and DC SEU – May 1, 2026

Chairperson Charles Allen (Ward 6, Committee on Transportation and the Environment) convened the fourth budget oversight hearing of the committee at 9:43 a.m. on Monday, May 1, 2026, in Room 500 of the John A. Wilson Building and via Zoom. The hearing focused on the Mayor's proposed FY2027 budget for the Department of Energy and Environment (DOEE) and the DC Sustainable Energy Utility (DC SEU). The Mayor's proposed operating budget for DOEE is $181 million, a 28.6% decrease from the FY2026 approved budget of $254 million. Over two years, cumulative cuts approach 50%. Chair Allen framed the cuts as a deliberate dismantling of environmental programs, noting that the Mayor's budget diverts 80% of the Sustainable Energy Trust Fund (SETF) to pay government utility bills and sweeps funds from the Anacostia River Cleanup and Protection Fund. The committee will accept written testimony until May 15, 2026.

Public Comments & Testimony

• Mary Che (former Ward 3 Councilmember): Urged restoration of $200,000 for City Wildlife, calling the cut a tiny fraction (0.001%) of the budget and a broken promise. Emphasized that wildlife rehabilitation is a public health and moral imperative.
• Chris Weiss (DC Environmental Network): Described the cuts as a 24% cut last year and another 12% this year, totaling a 50% reduction over two years. Highlighted elimination of green infrastructure maintenance, community stormwater solutions, and wildlife rehabilitation grants. Noted that 24 positions in the Natural Resources Administration remain unfilled.
• Jamal Lewis (DC SEU Advisory Board): Reported that DC SEU supported over 3,000 kWh of renewable energy, created 93 green jobs, invested nearly $6 million in low-income communities, and achieved 48,000 metric tons of CO2 reductions in FY25. A funding cut from $27 million to $10 million (more than 60%) would jeopardize programs like Solar for All and the Affordable Home Electrification Program.
• Maritza Mendoza (Empower DC): Testified that Ward 5 communities (Ivy City, Brentwood) bear disproportionate environmental burdens. Asked for increased air quality inspectors, funding for the Ivy City Climate Resilience Strategy, and passage of the Ivy City Resilience Hub Eminent Domain Act.
• Multiple witnesses (City Wildlife supporters, including Ann Lewis, Kate Delusky, Kimberly De Jesus, Kathleen Goff, Lorraine Doherty, Dr. Sarah Sarica, and others): Consistently urged restoration of the $200,000 grant, noting that City Wildlife is the only licensed wildlife rehabilitation center in DC, handling 2,000 animals and 3,000 calls annually. Without funding, the city would lose critical services for injured wildlife, disease monitoring, and public education.
• Sierra Club representatives (Lara Levison, Susan Shore, David Whitehead, and others): Opposed the diversion of the SETF and the $10.5 million increase in the Mayor's Energy Surcharge. Called for restoration of the Renewable Energy Development Fund, funding for lead pipe replacement (cut by $43,000, leaving 650 homes at risk), and enforcement of plastic pollution laws. Supported the bottle bill.
• Nathan Harrington (Ward 8 Woods): Noted that park maintenance grants were cut to $150,000 and are now zeroed out, eliminating jobs for Ward 8 residents. The cut affects trash removal and invasive species management.
• Trey Sherard (Anacostia Riverkeeper): Warned that DOEE is not on track to meet MS4 permit requirements, risking federal fines of $50,000 per day. The $4 million diversion from stormwater funds to street sweeping puts the district at compliance risk.
• Marshall Durbalkind (BEPS Task Force): Supported the proposed one-year delay in BEPS cycle 2 as a tactical adjustment, unlike previous wholesale delays. Recommended adding submittal fees for certain applications to fund administrative costs.
• Eric Jones and Brian Gordon (AOBA): Supported the BEPS delay and net-zero code delay, citing cost burdens for building owners. Opposed the diversion of SETF funds.
• Alex Howard (Washington Gas): Supported the one-year extension of net-zero building code, arguing that grid readiness and cost impacts have not been fully studied.
• Patricia Stamper (Ward 7 resident): Urged that budget cuts not fall on low-income residents. Called for transparency in utility assistance programs and better access east of the river.
• Barbara Briggs (Friends Meeting of Washington): Noted that the Mayor's budget would leave clean energy programs with only $21.2 million, down from $72 million. Opposed $1.1 billion stadium borrowing while cutting environmental programs.
• Multiple additional witnesses (Cody Austin, Dina Rodriguez, Dusty Horwitt, etc.): Echoed calls to restore SETF funding, Healthy Homes Act funding, and City Wildlife funding. Many emphasized the interconnection between environmental health, public health, and economic justice.

Discussion Items

• SETF Diversion and SEU Funding: Chair Allen explained that 80% of the SETF is now redirected to pay the city's own energy bills, calling it a "hoodwink" on ratepayers. He noted that the SEU contract, if locked in at a low funding level, would cut over 50 jobs and lose $60 million annually in federal matching funds.
• City Wildlife Grant: Chair Allen repeatedly stated his commitment to restore the $200,000 grant, as done in previous years: "We will work to make sure we restore it."
• Federal Funding Loss: Multiple witnesses noted that DC is leaving $60 million in federal IRA funds on the table due to lack of local matching funds.
• Net-Zero Code Delay: The BSA proposes a one-year delay for future BEPS cycles, which the BEPS Task Force and some stakeholders supported as a tactical move. Chair Allen indicated openness to a targeted delay but opposed further kicking of the can.
• Lead Pipe Replacement: DOEE's lead pipe replacement program was cut to $0, leaving 650 homes without replacement next year. Witnesses urged restoration.

Key Outcomes

• Chair Allen committed to restoring $200,000 for City Wildlife, stating: "I fully expect we'll do the exact same thing here."
• He pledged to work on restoring SETF funding and reversing the "systematic dismantling" of DOEE.
• The committee will accept written testimony until May 15, 2026, and will hold a markup session to craft the FY27 budget.
• Chair Allen emphasized that the cumulative cuts are a choice, not a necessity, and that the council must make different choices to protect environmental programs and public health.