Efficiency First

Department of Labor exempts State Energy Program incentives from Davis-Brown Act wage rules

The U.S. Department of Energy has issued a notice regarding State Energy Program implementation of the prevailing wage requirements stipulated in the Davis-Bacon Act (DBA), a Depression-era law that sets wage guidelines for federal government construction contracts. According to the ruling dated Dec. 30, 2009, the Department of Labor has determined that DBA wage requirements do not apply to programs that use American Recovery and Reinvestment Act (ARRA) funds to provide rebates to homeowners for energy efficiency and renewable energy improvements. Here’s the text of the ruling as it applies to SEP home energy rebates:

Recovery Act Funded State Energy Program Consumer Rebate Programs
Consumer rebate programs for individual homeowners are among SEP eligible project activities. DOL has determined that 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. Individual homeowners may apply for rebates either prior to or after the energy efficiency and/or renewable energy improvements are completed and will not be subject to the DBA requirements.

The full text of the ruling is available here:

www.naseo.org/programs/sep/recovery/SEP_DBA_Program_Notice_10-003_123009_Final.pdf