1. 1 Grant Compliance Training for Sub-Recipients of ARRA Funds October 5, 2010

2. 2 American Recovery & Reinvestment Act (ARRA)  ARRA has goals to stimulate the economy, create jobs  State Energy Plan (SEP) program - $42.1 million  Energy Efficiency & Conservation Block Grant (EECBG) $9.5 million

3. 3 ARRA Important:  Federal funds come with federal requirements  You must be transparent in all activities  You must document EVERYTHING

4. 4 ARRA  Requirements continue to evolve. You are responsible for current and future requirements  Read your contract  Read your e-mails  Keep your project manager informed on problems and progress. All change orders must be approved by your project manager.  Your project manager’s name was provided in the e-mail that included your contract.

5. 5 ARRA To date:  228 SEP award recipients for $36.4 million  64 EECBG award recipients for $8.7 million  Projects range from $699 to $2 million

6. 6 What will we cover?  General requirements  Bidding/contracting  Labor standards  Getting started  Reimbursement process  Reporting  Project Closeout requirements  Post-project follow-up

7. 7 General requirements  Active DUNS/Central Contractor Registration (CCR)  Oregon WorkSource  Reimbursement basis only for Exhibit A-eligible expenses  Whistle blower  Signage – more information in Tool Kit

8. 8 General requirements  Photos – before and after  Tool Kit – sent to you, recently updated  Publicity – e-mail draft to Ann Grim at ann.grim@state.or.us before you send out a press release so we can help you ensure information and wording is accurate. Huntington Elementary School Huntington

9. 9 Getting started Prior to committing or expending grant funds, take care of:  NEPA – National Environmental Policy Act  SHPO – State Historic Preservation Office  Final commitment of other funds needed: Business Energy Tax Credit? Utility assistance? Energy Trust funding?

10. 10 NEPA  Oregon Dept. of Energy has a NEPA categorical exclusion for most public school, public facility and industrial projects  If your specific project does not fall under the NEPA categorical exclusion, your project manager will call you  If NEPA clearance form is required, it must be approved by US DOE before you start your project

11. 11 SHPO If building is on the National Register of Historical Places OR is 50 years or older:  SHPO has issued a Programmatic Agreement (PA) to exempt SHPO-eligible buildings for a number of energy project activities  If your activities do not fall under the PA, you must get SHPO clearance approval  Oregon SHPO Clearance Form is available at http://www.oregon.gov/ENERGY/Recovery/docs/SHPO ClearanceForm.pdf

12. 12 SHPO SHPO clearance form will require:  Photos of building  History of all past changes to structure  Description of proposed work including materials to be used  How materials will be installed  What historic materials will be retained, restored, replaced, or covered

13. 13 BETC Business Energy Tax Credit (BETC):  Apply before you sign with a contractor.  Discuss with your project manager ASAP  Remember your ARRA award funds must be deducted from your eligible project costs because it is a federal grant (BETC rules)  Your tax credit is a percentage of your eligible costs

14. 14 Other incentives  Bottom line – A project owner can not receive more than 100% of the project costs from combination of ARRA award and other incentives

15. 15 General requirements  Eligible expenses appear in contract scope-of-work  Contract does not allow administrative costs  Project management costs are allowed if part of your scope-of-work and budget City of Klamath Falls Geothermal

16. 16 Getting started  Your project manager will set you up on database  You will complete past 12-months of energy usage. (See Section 5 of Tool Kit.)  Project owner must mail in copies of all required federal, state, and/or local permits Jackson County Fairgrounds Central Point

17. 17 Bidding/contracting  Acknowledge US DOE and Oregon Dept. of Energy involvement on all contracts and any plans. Wording is in Tool Kit. Hatfield Marine Science Center Oregon State University Newport

18. 18 Buy American requirement  Requires that all the iron, steel, and manufactured goods used in a public building or public work projects are produced in the United States.  There is no requirement with regard to the origin of components or subcomponents in manufactured goods used in a project, as long as the manufacturing occurs in the United States.

19. 19  Buy American certification required during project closeout (Form 6-1a).  Review with your contractor early so all requirements are met. Buy American requirement

20. 20 Buy American requirement  US DOE has issued multiple waivers.  Current list is in the Tool Kit  International trade agreements are not applicable.

21. 21 If equipment does not meet Buy American Act  Project owner and contractor will complete Buy American waiver form with information on prices and availability (or non-availability) of specific item. Waiver form available on US DOE website. www.eere.energy.gov/recovery/buy_american_provision.html  Waiver form must be approved by US DOE before you make a purchase or start your project. Buy American requirement

22. 22 Labor standards  Any project of $2,000 or more employing laborers and/or mechanics is subject to Davis-Bacon Act  Public projects over $50,000 are subject to BOLI  Must pay higher of Davis-Bacon or BOLI  Do not use the combined rate book from BOLI  Project owner must ensure all appropriate documents are attached to bid documents and contracts and are posted at job sites

23. 23 Labor standards  All contractors and sub-contractors must receive copy of Exhibit 4-E. Attach to contracts. Document!  All contractors and sub-contractors must be apprised of appropriate sections in Exhibit B (federal requirements) and Exhibit D (ARRA requirements). Attach to contracts. Document!  All contractors and sub-contractors must complete and sign Form 4-1 (A-C) before construction begins. Forward a copy to your project manager.

24. 24 Labor standards Project owner must:  Designate an individual responsible for labor compliance  Apply Davis-Bacon requirements properly  For help – call your project manager

25. 25 Labor standards  If using a formal competitive bid process, the appropriate Davis-Bacon wage determination and BOLI reference must be part of bid documents and final contract documents.  You must “lock in” Davis-Bacon final wage determination 10 days before end of bid period and document in your files.  If not using a formal competitive bid process, you need to document how you informed your contractor of the requirements and ensure wage determination is a component of your contract with them.

26. 26 Labor standards  All contractors and sub-contractors must complete and sign Form 4-1 (A-C) before construction begins.  Forward a copy to your project manager.

27. 27 Labor standards  All project owners must complete and sign Form 4-5 before construction begins.  Forward a copy to your project manager.

28. 28 Labor standards  Verify contractors are not on State Ineligible Contractor List: http://www.oregon.gov/BOLI/WHD/PWR/Jan10/PWR_Jan10 Index2.shtml  Verify that contractors are not on the “Federal Excluded Party List” http://epls.arnet.gov  Document verifications on contractors on Form 4-5

29. 29 Labor standards  Verify Oregon Construction Contractors Board (CCB) registration for the prime contractor and ensure prime contractor is checking all the sub-contractors. See Web site: https://ccbed.ccb.state.or.us/ccb_frames/consumer_info/ccb _index.htm  Verify contractor can work on public projects. See Web site: http://www.oregon.gov/CCB/public_works.shtml#Not_Qualifi ed_to_Hold_Public_Contracts

30. 30 Labor standards Project owner is responsible for:  Informing, advising and supporting contractor compliance  Monitoring for violations, perform confidential interviews and document to files (Form 4-10)  Investigating probable violations and complaints of underpayment We recommend pre-construction meeting to ensure all vendors understand requirements

31. 31 Labor standards  Contractor must pay laborers/mechanics weekly and forward copy of certified payroll to project owner within 7 to 10 days.  Project owner must review and begin working with contractor to make corrections if necessary.  Project owner must send certified payroll to project manager on a weekly basis within 2 days of receipt.  Tool Kit includes certified payroll form.

32. 32 Labor standards  Laborer/mechanic pay is subject to both federal and state over-time requirement  Tool Kit has more information

33. 33 Labor standards  This area of project management is very important because failure to comply and/or inattention to details can result in failure to comply with federal requirements.  Failure to comply can and does result in recipients having to pay for mistakes with their OWN funds.

34. 34 Oregon Dept. of Energy due diligence  Oregon Dept. of Energy will randomly select sub-recipients to provide copies of contracting documents  Call your project manager if you have questions  Don’t jeopardize your project!

35. 35 Reimbursement process  You request reimbursement in Web-based database.  Your project manager will assist you. South Albany High School Albany

36. 36 Reimbursement process  Project owners need to ensure that information is accurate.  Third party project managers or consultants may enter information into database, but they may not “submit” it.  Reimbursement requests must be made monthly, but no more than 2 reimbursement requests per month.

37. 37 Reimbursement process Invoices from vendors should include:  Date  Invoice number  Company name and address  Phone number or e-mail  Date of service  Units billed for (hours)  Description of item including make, model number  Rate per item  Subtotal of charges  Grand total of charges  Indication that invoice has been paid-in-full (proof of payment)

38. 38 Reimbursement process  Project owners should scan and e-mail copies of all checks to vendors in addition to the vendor invoice when requesting reimbursement

39. 39 Reporting  Monthly reporting in database is required  Reporting must be completed during the last 5 business days of each month, even if no activity  Maximum of 650 characters

40. 40 Reporting  Look at the Web-based database

41. 41 Final draw requirements  Enter final reimbursement request into database  Request final closeout by e-mail to project manager  Project manager will sent you a final report form and requirements including request for - Before and after pictures - Original certified payroll - Proof of all other expenditures  Enter final total costs and jobs created in database and complete and send in all final reporting requirements

42. 42 Post-project follow up  25% of award funding is held until: - Project is complete and operating; - Project manager has received all final report requirements; and - Project manager has issued final approval  Oregon Dept. of Energy will randomly monitor (inspect) projects

43. 43 Post-project follow up  You must report energy usage on database for 24 months after project completion  Records retention is for three years after project completion or conclusion of any audit, controversy and/or litigation

44. 44 Resources Team Members: Paul Egbert – Acting Program Manager Jonathon Belmont – Project manager Ann Grim – Communications Ashley Horvat – Policy analyst Rebecca Sherman – Project manager Shanda Shribbs – Project manager Patricia Sougstad – Administrative assistant Rebecca Sweetland – Project manager Tom Vohs – Technical lead Lee Willeman – Project manager

45. 45 Resources Oregon Department of Energy 625 Marion St. N.E. Salem, OR 97301-3737 Phone: 1-800-221-8035