Congratulations! You have successfully logged on the Smart Grid Grants Negotiations Web Conference Please join the audio portion via VOIP/streaming through your computer speakers, or call 1- 800- 214-0694 and enter code 966292. How to Submit Your Questions Step 2: Press “Send” to submit your question. Step 1: Type your question here. Smart Grid Grants Negotiations Web Conference February 25, 2010
How to Submit Your Questions Step 1: Type your question here. Step 2: Press “Send” to submit your question. SGG Tax, Lien, Accounting, RUS Loans and Audit Issues Russ Wasson Susan Pettit The Tax Issue � Is the SGIG grant taxable income? � DOE and Treasury are working together. � We are encouraged by what we hear from DOE and EEI and hope to have a favorable answer shortly. � EEI is advising their members not to sign any DOE contract until this issue gets resolved
DOE Lien Issue � Will the DOE contracting officer be able to provide grant awardees with certainty on this issue prior to finalization of contract agreements? � Yes. An awardee may request that DOE consider approving encumbrance of property purchased in whole or part with Federal funds under its award, including equipment and real property. DOE will be able to discuss conditions for acceptable encumbrance and negotiate terms. (See 10 C.F.R. §§ 600.132(a), 600.134(c), and 600.321(b)(2)) Accounting For SGIG Grants � RUS has advised NRECA that there will be no specific accounting guidance forthcoming on the smart grid assets. � RUS requires that smart grid assets be accounted for in their proper categories, i.e. , meters etc. � It would be good to create subaccounts in each specific asset category for the smart grid assets. RUS Matching Loans � RUS can use loan funds for the 50% match, but not on the initial construction. � The borrower will have to fund construction from another lender. � The borrower will place the smart grid assets in their work plan. � RUS will provide loan funds once the work plan has been submitted and the construction loan can be defeased.
Audits � DOE may require an applicant to agree to an OMB A-133 audit as a consequence of being awarded a smart grid grant. � RUS will accept the A-133 audit in lieu of the traditional RUS audit under CFR 1773. Audits � Applicants should make sure that the A- 133 audit is for the entire entity, not just the smart grid assets. The auditor will look at other federal program funds. � Non-RUS borrowers should speak with their lenders regarding whether an A- 133 audit would be acceptable. Davis Bacon Act & Buy American Provisions David Predmore
Davis-Bacon Act (DBA) � Under section 1606 of the Recovery Act, the prevailing wage provisions of the Davis- Bacon Act, were applied to projects funded “directly by or assisted in whole or in part” through the Recovery Act. � Provides laborers and mechanics on covered federally financed or assisted construction contracts the right to receive at least the locally prevailing wage rate and fringe benefits on a weekly basis. DBA Recipient Obligations � The funding recipient must ensure that covered contractors pay their laborers and mechanics the prevailing wage. � The recipient must incorporate the DBA clauses found in 29 CFR 5.5(a) into their contracts and require that the clauses apply to all subcontracts as well. DBA Recipient Obligations (cont.) � Recipients, contractors and subcontractors must maintain and retain payroll records for all laborers and mechanics for three years following project completion � Register on FederalReporting.gov
Sub Recipients � Receive funding directly from Recipients to support a portion of the project for which the Recipient received funding � Recipient delegation of reporting requirements to Sub-recipient is discretionary � If delegated reporting responsibilities, register on FederalReporting.gov DBA Exceptions � The U.S. Department of Labor has previously decided, consistent with Federal Acquisition Regulation Sections 22.3 and 22.4, that where a utility is furnishing its own materials and is extending its own utility system, such work is not subject to the DBA. DBA Exceptions (cont.) � Equipment installation does not trigger DBA compliance. � For example, the installation of smart meters or in-home monitoring networks – where the utility is furnishing its own materials and extending its system - is not subject to DBA requirements.
“Buy American” � Section 1605 of the Recovery Act prohibits the use of stimulus funds for the construction, alteration, maintenance or repair of a public building or work unless all of the iron, steel and manufactured goods utilized are produced in the United States � These prohibitions may only be applied consistent with U.S. obligations under international agreements Buy American applies if. . . � The materials are iron, steel or “manufactured goods”, and � the work constitutes construction, alteration, maintenance or repair, and � the work is being performed on a “public building” or “public work” Buy American Exceptions � Iron, steel or manufactured goods are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality � Increases the cost of the contract by an unreasonable amount, defined as more than 25% of the contract cost � Application is inconsistent with the public interest
Buy American Exceptions (cont.) � Stimulus funds may purchase U.S. products that incorporate foreign components � “Recovery Act designated countries,” which are defined as countries participating in the World Trade Organization Agreement on Government Procurement Buy American Penalties � Removal and replacement of unauthorized foreign construction materials � Reduction of the contract price � Contract termination � Suspension or debarment � Noncompliance involving fraud can bring criminal penalties as well Contacts � Mary Ann Ralls, 703.907. 5837 maryann.ralls@nreca.coop � Russ Wasson, 703.907.5802 russell.wasson@nreca.coop � Susan Pettit, 703.907.5822 susan.pettit@nreca.coop David Predmore, 703.907.5848 david.predmore@nreca.coop � � Derek Dyson, Duncan, Weinberg, Genzer, & Pembroke, P.C. 202.467.6370 dad@dwgp.com
Smart Grid Demonstration Questions � Robbin Christianson, 703.907.5842 robbin.christianson@nreca.coop
Recommend
More recommend
