Article Photos

IRON MOUNTAIN - Weatherization projects using stimulus money are at a standstill. At least until the prevailing wage is determined.

Jeff Heino, executive director for the Dickinson-Iron Community Services Agency, said $2.9 million has come into the area for home weatherization programs, but production is on hold as the agency awaits guidance from the federal government concerning prevailing wage.

Prevailing wage is the amount of money contractors pay their employees.

The U.S. Department of Labor and the U.S. Department of Energy are trying to work the issue out at the federal level, Heino said.

All community action agencies were told the same thing - the funds will stay put until the prevailing wage issue is resolved.

Through the American Recovery and Reinvestment Act of 2009, signed by President Barack Obama in February, the federal stimulus package will provide a $5 billion boost in weatherization programs across the nation.

Home weatherization is a process by which state-certified inspectors assess applicant homes and decide what measures will provide the greatest savings relative to investment.

These may include attic and wall insulation, window replacement, caulking, energy efficient light bulbs, furnace tuning and repair or, in extreme cases, furnace replacement. The goal is to lower energy costs and consumption for income- eligible households - both renters and homeowners.

"It's frustrating to have access to these funds and not be able to use them for what they are for," Heino said. "It's unfortunate to put it on hold, but there is no choice in the matter.

Don Tramontin, housing director for the Dickinson-Iron Community Services Agency, said there is still annual money awarded to a handful of contractors to do weatherization projects.

He said $171,000 was given to the agency by the Department of Energy for weatherization projects in Dickinson and Iron counties this year. This is a set amount given to the agency on an annual basis.

Tramontin said a few contractors are doing projects with that money, but none of the stimulus money has been released for projects, due to a conflict between the Department of Labor and Department of Energy.

The Davis Bacon Act of 1931, a federal law, establishes the requirement for paying prevailing wages on public works projects. The compliance is a challenge for weatherization programs for three reasons - (1) in some metro areas, job descriptions for the residential construction work force does not conform, and the jobs they do support are paid so highly most measures would not be cost-effective, (2) in many other states, some labor groups are prepared to challenge the current prevailing wage for general residential laborers, and (3) the compliance cost, including establishing weekly pay systems, is not really solvable because it is set in statute.

The Department of Energy and Department of Labor have asked weatherization programs to complete a wage survey to solve two of three problems. The survey solves the first two of the three problems.

"There is a conflict between the Department of Labor and the Department of Energy in regards to how much prevailing wage should be throughout the nation," Tramontin said. "States with large unions are looking to get involved. They want wages paid. Promises have been made, and they are slowing down the process of funds."

A stipulation of the stimulus money for these home projects is that it must be spent within two years.

"If they don't get it going soon, it will be difficult to get anyone to spend the money," Tramontin said. "Agencies are going to be hard-pressed to spend that money to get it out the door and meet the production goals - so many homes a month. If they can't approve it in that time frame, it looks bad for everyone."

As to when the stimulus money for weatherization projects will be spent, it depends on when all parties involved can agree on prevailing wage.

Lisa M. Hoffmann's e-mail address is lhoffmann@ironmountaindailynews.com