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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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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”

20. “Notwithstanding any other
provision of law…”
• Overrides other laws that may provide
exemptions to Davis Bacon Act (DBA).

21. “..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.

22. 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

23. 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

24. 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)

25. “…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

26. 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

27. Other Delaware Energy programs
Green Energy Fund
Supported by consumer benefit charge through utilities.
Scott Lynch – 302-735-3480

28. Other Delaware Energy programs
Regional Greenhouse Gas Initiative
Phil Cherry – 302-739-9000
Wind Turbine at
Ion Power – Delaware City

29. 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)

30. “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

31. “Green Jobs” Need to
Show the “Green”

32. Questions?

33. Background Information
(Extra Slides)
• SEU Overview
• SEU/Delaware Goals
• SEU use of ARRA Funds
• SEU Funding Approach

34. 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

35. 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

36. 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