By their design, EPA Brownfields grants depend upon the efforts of a wide range of participants, including public- and private-sector entities who finance transformation of brownfields sites, as well as the individual workers and laborers on the front lines of cleanup and redevelopment. The U.S. government has laws in place to ensure that any worker involved in a federally-funded public works project is compensated in a fair and timely manner. This legislation, known as the Davis-Bacon Act, applies to EPA-funded brownfields cleanup activities and projects funded under EPA Brownfields Cleanup and Revolving Loan Fund (RLF) grants.
Background on the Davis-Bacon Act
The Davis-Bacon Act was enacted in 1931 in response to the rampant unemployment of the depression era. At the time, the primary intent of the Act was to promote the hiring of skilled, local workers, by discouraging the import of laborers from other regions who would work for lower wages.
Since its enactment, Davis-Bacon has been amended three times, in 1935, 1964, and 1994. The Act was briefly suspended twice— in 1992 and 2005—to facilitate emergency response activities following Hurricanes Andrew and Katrina. The Act is administered and enforced by the Wage and Hour Division of the Employment Standards Administration, which falls under the U.S. Department of Labor (DOL).
Overview of the Act
The Davis-Bacon Act applies to EPA Brownfields grants by way of section 104(g) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), under which:
“...all laborers and mechanics employed by contractors or subcontractors employed in the performance of construction, alteration, or repair work funded in whole or in part [by Brownfields grants] shall be paid locally prevailing wages.”
These locally prevailing wage rates are determined by the U.S. Department of Labor, and can be accessed in a searchable database at the following address: http://www.access.gpo.gov/davisbacon/.
The Act covers all contractors and subcontractors performing work on federally-funded or -assisted construction contracts in excess of $2,000. While apprentices and trainees may be employed at less than predetermined rates, apprentices must be employed pursuant to an apprenticeship program registered with the Department of Labor or with a state apprenticeship agency recognized by the Department.
How Does the Act Apply to Brownfields Projects?
The Davis-Bacon Act applies to all construction, alteration, and repair (including painting and decorating) contracts and sub-contracts awarded with EPA grant funds. For cleanup activities funded through EPA Brownfields Cleanup and Revolving Loan Fund grants, recent and applicable wage rates from the U.S. Department of Labor must be incorporated into construction, alteration, and repair (including painting and decorating) solicitation and contracts.
How Davis-Bacon Applies to Cleanup of Petroleum-Contaminated Brownfields
Some cleanup activities at sites contaminated by petroleum are not subject to Davis-Bacon Act requirements. Such activities include site remediation through drilling temporary recovery wells, drawing out contaminated soil or water, treating the contaminated soil/water on site, removing the treatment technology and closing recovery wells, and restoration of the area surrounding tank removal that involves only filling and compaction of soil. However, the Davis-Bacon Act does apply to the following petroleum-related
cleanup activities:
- Installing piping to connect households or businesses to public water systems or replacing public water system supply well(s) and associated piping due to groundwater contamination.
- Soil excavation/replacement when undertaken in conjunction with the installation of public water lines/wells described above.
- Soil excavation/replacement, tank removal, and restoring the area by paving or pouring concrete when the soil excavation/replacement occurs in conjunction with both tank removal and paving or concrete replacement.
It should be noted that the same Davis-Bacon requirements apply to Brownfields Cleanup and RLF grants funded through the American Recovery and Reinvestment Act. There are no differences as to how Davis-Bacon requirements should be met for such grants.