DAVIS-BACON REQUIREMENTS HINDER ANOTHER STIMULUS PROGRAM (04/07/2010)
Maxwell Systems The Department of Energy’s Weatherization Program may weatherize fewer homes than anticipated due to the mandated use of Davis-Bacon Act prevailing wage requirements, according to a Government Accountability Office (GAO) report.  

The weatherization program, which received $5 billion under the American Recovery and Reinvestment Act, was designed to help low-income families with energy efficient upgrades.   

However, all projects performed under the program were subject to prevailing wage requirements for the first time since 1976, which delayed the start of many projects because official rates weren’t available until September 2009.  In addition, the higher costs associated with the prevailing wage requirements reduced the number of homes that will be weatherized under the program.  

The GAO report comes on the heels of a February report by the DOE Inspector General which said that only 8 percent of the allotted funds had been spent one year after the stimulus package was signed into law.   The GAO report also found that other DOE programs, including the Wind and Hydropower Technologies Program, have been affected and delayed by Davis-Bacon requirements.   

For more information on prevailing wages and Davis-Bacon, click here

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