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  • 1. Stimulus Act Funding Prevailing Wage Issues: Scope, Reporting Associated Builders and Contractors of Delaware 4 February 2010 James D. Werner Department of Natural Resources and Environmental Control
  • 2. Overview • ARRA Funding American Recovery and Reinvestment [“Recovery”] Act of 2009 • Federal Guidance on ARRA Funded Projects • Reporting Requirements for ARRA-funded projects • Other Delaware Energy programs • Sustainable Energy Utility Re-cap
  • 3. President Obama Signed “Recovery Act” (ARRA) February 17, 2009
  • 4. American Recovery and Reinvestment Act (ARRA) Overview • ARRA enacted to create jobs using a combination of federal tax cuts, expansion of unemployment benefits, and spending in education, health care, and infrastructure, including the energy sector, estimated at more than $700 billion • ARRA will provide nearly $1.2 billion to Delaware • Nearly $54 million is designated for energy efficiency and renewable energy programs
  • 5. Direct Stimulus Spending is 1/3 of ARRA
  • 6. President Obama Highlighted Renewable Energy Investments in Signing ARRA
  • 7. Status of Delaware ARRA Spending Percent of Number of Description Project Awards Awards Cumulative Completed 10 4.4% 4.4% More than 50% 31 Completed 13.7% 18.1% Less Than 50% 121 Completed 53.5% 71.7% Not Started 64 28.3% 100.0% Total Awards 226 100.0% Updated: 10/30/2009 [to be updated based on Jan 2010 data]
  • 8. ARRA Funding for Energy Programs State Energy $24 million Energy efficiency and Managed by Sustainable Program (SEP) renewables for Energy Utility Grant residential, commercial, industrial and public sector Program Grant for $838,000 Enhancements to Managed by Sustainable Energy Star existing appliance rebate Energy Utility Appliances program Community $16 million Grants to state, counties, Managed by Delaware Development Block and municipalities for Energy Office and Grants energy efficiency and recipient renewables Low Income $13 million Supplements State’s on- Managed by Office of Weatherization going weatherization Community Services program for low income households
  • 9. ARRA Funding Largely Spent Through States
  • 10. “Measuring” Negawatts Megawatts are measured with meters (with regulated accuracy and high confidence). But ‘Negawatts’ cannot be measured, only determined from measurements. 10
  • 11. What does my energy bill pay for?
  • 12. Typical Costs for Home Appliance Energy Use
  • 13. Delaware Sustainable Energy Utility • The SEU is an innovative non-profit organization offering Delaware a one-stop resource for saving money on energy bills and new clean energy sources. • SEU’s programs are marketed under “Energize Delaware” • Change the way Delawareans make decisions about energy: – Education and Information – Programs – Incentives, Financing and Other Resources
  • 14. How Will the SEU use ARRA Funding? Sector Approximate Allocation* Residential $12.5 million Commercial & Industrial $5 million Public Buildings $2 million Renewables (solar, $4.5 million wind, etc.) Appliance Efficiency $0.8 million Total State Energy Prog. $24.8 million * Allocations as submitted to the U.S DOE. Allocations are approximate and may change based on participation and other factors
  • 15. Long Term Goals • Reduce Participant Energy Use by an average of 30% • Reduce CO2 emissions by 33% by 2020 • Install over 300 MW of renewables at homes & businesses by 2019
  • 16. Commercial & Industrial Energy Efficiency Program • Prescriptive lighting rebates began Dec. 2009 • Focus on non-profit organizations, multi-family housing structures and small public sector projects • Generally a low-interest loan program • Expect that larger public sector buildings would take advantage of performance contracting. • Other C/I sectors programs developed through Sustainable Communities program http://www.energyservicescoalition.org/resources/whatis.htm
  • 17. Addressing Residential Energy • Information Programs – Home Assessments – Consumer Education • Limited Appliance Rebates • Comprehensive Programs – Integrated Efficiency and Renewables – “Home Performance” programs • Emphasis on financing to encourage participation
  • 18. American Recovery and Reinvestment Act (“Recovery Act”) of 2009 (Pub. L. 111–5) SEC. 1606. Notwithstanding any other provision of law and in a manner consistent with other provisions in this Act, all laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to this Act shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code. [*] With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. * Aka “Davis Bacon Act”
  • 19. “Notwithstanding any other provision of law…” • Overrides other laws that may provide exemptions to Davis Bacon Act (DBA).
  • 20. “..all laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to this Act…” • Projects with blended funds using ARRA must comply with DBA.
  • 21. Davis-Bacon Act •Requires payment of locally prevailing wages (including fringe benefits) to laborers and mechanics on federal government contracts in excess of $2,000 for construction/alteration/repair of public buildings or public works. 40 U.S.C. §§ 3142(a) and (c). •Contractors and subcontractors on covered projects must pay laborers & mechanics weekly, & submit weekly certified payroll records. •ARRA provides that Davis-Bacon prevailing wage requirements broadly apply to construction projects funded with ARRA appropriations. Sec. 1606, Division A, Pub. L. No. 111-5, 123 Stat. 303. Required wage rates are available at www.wdol.gov
  • 22. State Prevailing Wage Law •Delaware prevailing Wage Law 29 Del.Code 6960 trumps federal Davis Bacon Act if Delaware prevailing wages are higher. •Delaware Law Applies to Projects: • $100,000 for new construction, or • $15,000 for alteration, repair, renovation, rehabilitation, demolition or reconstruction Required state prevailing wage rates are available at http://www.delawareworks.com/industrialaffairs/services/BuildingRates2009.pdf
  • 23. Prevailing Wage (DBA) Requirements in ARRA Are Strict • Applies to projects with any ARRA funding, • Application process • Requirements for ARRA tracking & reporting (including Payment of Wages, Benefits and Overtime, Enforcement, Subcontractor Responsibility and Proper Record Keeping)
  • 24. “…it is the responsibility of all contractors and subcontractors on covered projects to pay covered employees the prevailing wages listed in the wage determination included in the contract, to pay such wages on weekly basis, and to submit weekly certified payroll records to the contracting or administering agency.” U.S. Dept. of Energy Guidance Dec. 30, 2009 U.S. Department of Energy Guidance, SEP Notice10-003 December 30, 2009
  • 25. Rebates to Individual Homeowners are Exempt from DBA Requirements “..rebates to individual homeowners for energy efficiency and renewable energy improvements to an individual’s home are not subject to the DBA prevailing wage requirements.” U.S. Department of Energy Guidance, SEP Notice10-003 December 30, 2009
  • 26. Other Delaware Energy programs Green Energy Fund Supported by consumer benefit charge through utilities. Scott Lynch – 302-735-3480
  • 27. Other Delaware Energy programs Regional Greenhouse Gas Initiative Phil Cherry – 302-739-9000 Wind Turbine at Ion Power – Delaware City
  • 28. ARRA Reporting Requirements (Grants) • “Recipients” (State) Submit quarterly reports • (fund spent, jobs created/retained) • “Subrecipients”/contractors use DOL forms to track spending • Weekly payroll must be certified and signed • (no FAX or scan permitted)
  • 29. “All requirements of the Davis-Bacon Act apply to constructions projects that receive ARRA funds, with an added provision that „projects funded directly by or assisted in whole or in part by and through the Federal Government‟ as a result of ARRA must also comply.” May 29, 2009 - US Dept of Labor Employment Standards Administration Wage and Hour Division Guidance (“All Agency Memorandum”) http://www.dol.gov/whd/recovery/AAM207.pdf
  • 30. “Green Jobs” Need to Show the “Green”
  • 31. Questions?
  • 32. Background Information (Extra Slides) • SEU Overview • SEU/Delaware Goals • SEU use of ARRA Funds • SEU Funding Approach
  • 33. Commercial/Industrial • SAIC was selected as the SEU’s C/I Implementation Contractor in November 2009 • Prescriptive lighting rebates began December 1, 2009 • Comprehensive programs with financing starting end of 1st quarter 2010
  • 34. Non-Residential Program Areas • Commercial/Industrial Lighting • Institutional Shared Savings • Commercial/Industrial Assessments • HVAC Retrofits • Building Re-Commissioning • New Construction and Major Renovations • Integrated Efficiency and Renewables
  • 35. Sustainable Communities • Innovative program intended to provide financing and other resources for “grass roots” projects • Combines energy efficiency and renewable energy • Two proposals under consideration