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Home My WebLink AboutMT DEQI?1? Montana Department of Brian Schweitzer, Governor EMRONMENTAL QUA T R ichard H. Opper, Director P.O. Box 200901 Helena, MT 59620-0901 (406) 444-2544 • www.deq.mt.gov March 3, 2010 tMAR Mary Embleton, Clerk/Treasurer City of Laurel P.O. Box 10 Laurel, MT 59044 5 2010 RE: 2009 Water System Improvements, Phase 2 CLAUREL City-of-Laurel, PWSID #00270 Dear Mary: As I discussed with Chad Hanson recently, the decision from EPA headquarters is that the current Laurel WRF project construction contractor must pay Davis-Bacon wages. We have put forth our best effort in an attempt to get EPA to back down, but they have not relented. The requirement to pay Davis-Bacon wages is a consequence of federal legislation that went into effect on October 30, 2009. Enclosed you will find a November 30, 2009, memorandum from Peter '& Silva, EPA Assistant Administrator, which is a clarification of that law.'' Because the Laurel WRF loan was executed after October 30, 2009,the rules and conditions associated with the appropriation law apply to your 2009 Water System Improvements Phase 2 project. The net result of this is that we ask you to work with the contractor on a change order to pay all eligible workers Davis-Bacon wages as of October 30, 2009. We realize this will incur considerable cost and effort, and we apologize for that. Please be assured that we did our best to reverse this decision, but were unsuccessful. As always, please feel free to call me at 406=444-7838.. if you have any questions. Sincerely, U\ Gary J. lens, P.E Drinking Water State RevolvingFund Loan Program'` Technical'and Financial As'sista'nce Bureau Planning, Prevention and'Assistance'Dwision c: Chad Hanson, Great West Engineering, Billings (With enclosures) Enforcement Division • Permitting & Compliance Division • Planning, Prevention & Assistance Division • Remediation Division J??tEO sTq?s ?'' A y2 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY i WASHINGTON, D.C. 20460 ?v?l'14 PRI o SOP7 NOV 3 0 2009 OFFICE OF WATER MEMORANDUM SUBJECT: Application of Davis-Bacon Act Wage Requirements to Fiscal Year 2010 Clean Water State Revolving Fund and Drinking Water State Revolving Fund Assistance Agreements FROM: Peter S. Silva Assistant Administrator TO: Water Management Division Directors Regions I - X On October 30, 2009, P.L. 111-88, "Making appropriations for the Department of the Interior, environment, and related agencies for the fiscal year ending September 30, 2010, and for other purposes," was enacted. This law provides appropriations for both the Clean Water State Revolving Fund (CWSRF) and the Drinking Water State Revolving Fund (DWSRF) for Fiscal Year 2010, while adding new requirements to these already existing programs. One new requirement, and the focus of this memorandum, requires the application of Davis-Bacon Act requirements. P. L. 111-88 includes the following language in Title II under the heading, "Administrative Provisions, Environmental Protection Agency," For fiscal year 2010 the requirements of section 513 of the Federal Water Pollution Control Act (33 U.S.C. 1372) shall apply to the construction of treatment works carried out in whole or in part with assistance made available by a State water pollution control revolving fund as authorized by title VI of that Act (33 U.S.C. 1381 et seq.), or with assistance made available under section 205(m) of that Act (33 U.S.C. 1285(m)), or both. For fiscal year 2010 the requirements of section 1450(e) of the Safe Drinking Water Act (42 U.S.C. 300j-9(e)) shall apply to any construction project carried out in whole or in part with assistance made available by a drinking water treatment revolving loan fund as authorized by section 1452 of that Act (42 U.S.C. 300j-12). In order to comply with this provision, States must include in all assistance agreements, whether in the form of a loan, bond purchase, grant, or any other vehicle to provide financing for a project, executed on or after October 30, 2009 (date of enactment of P.L. 111-88); and prior to Internet Address (URL) • http://www.spa.gov Recycled/Recyclable • Printed with Vegetable Oil Based Inks on 1000/6 Postconsumer, Process Chlorine Free Recycled Paper 2 October 1, 2010, for the construction of treatment works under the CWSRF or for any construction under the DWSRF, a provision requiring the application of Davis-Bacon Act requirements for the entirety of the construction activities financed by the assistance agreement through completion of construction, no matter when construction commences. Application of the Davis-Bacon Act requirements extend not only to assistance agreements funded with Fiscal Year 2010 appropriations, but to all assistance agreements executed on or after October 30, 2009 and prior to October 1, 2010, whether the source of the funding is prior year's appropriations, state match, bond proceeds, interest earnings, principal repayments, or any other source of funding so long as the project is financed by an SRF assistance agreement. If a project began construction prior to October 30, 2009, but is financed or refinanced through an assistance agreement executed on or after October 30, 2009 and prior to October 1, 20 10, Davis-Bacon Act requirements will apply to all construction that occurs on or after October 30, 2009, through completion of construction. Notably, there is no application of the Davis-Bacon Act requirements where such a refinancing occurs for a project that has completed construction prior to October 30, 2009. This provision does not apply to any project for which an assistance agreement was executed prior to October 30, 2009, no matter when construction occurs. Further information may be provided in the form of "Questions and Answers" if necessary. We fully understand the complexity of this provision and the difficulties involved in its application. If you have any question, please contact us, or have your staff contact Jordan Dorfinan, Attorney-Advisor, State Revolving Fund Branch, Municipal Support Division, at (202) 564-0614, or Philip Metzger, Attorney-Advisor, Infrastructure Branch, Drinking Water Protection Division, at (202) 564-3776.