BPU Moves Forward With Prevailing-Wage Regulations

The Board of Public Utilities is moving forward with proposed regulations to comply with legislation enacted last summer requiring prevailing wages on Green Energy Projects Including Energy efficient lighting, HVAC and even Insulation projects receiving financial assistance from the agency.

Unions claim it levels the playing field for Contractors using union labor. The Democrat controled Senate and Assemby backed by union money and controlled by Legislators who themselves are union members railroaded the legislation through in the lame duck session after the November election of Governor Chris Christie.

The reality is that excesive union wages and egregious union benefits are responsible for a union contractors inability to compete. An average Merit Shop Solar Installer earns $25 to $30 per hour, but with prevailing wage it could run as high as $94+ per hour including the mandated $36+ per hour benefit portion of the wage. Find Prevailing Wage Rates in your area Here

The requirement does not apply to projects that rely on developer funding and solar energy renewable certificates. 

Given the opposition from business interests, it remains to be seen whether the rule, promoted by the failed Corzine administration, will survive the 90-day review period for all pending state regulations Gov. Chris Christie promised during the campaign.

Bill Limiting Utility Placement of Capacitor Banks Clears Committee

Legislation sponsored by Senator Christopher “Kip” Bateman (R-Somerset) that would prohibit electric public utilities from expanding a switching station by installing one or more 500-kilovolt capacitor banks within 300 feet of the property line of any area zoned for residential use was unanimously passed by the Senate Environment and Energy Committee. View Senate Bill S1995

“People who purchase a home to live, raise a family, or retire in should be protected from having a large energy facility expanded right next door,” Bateman stated. “This is a common-sense bill that will protect the value, privacy and quality of life in homes across the state.”

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Senator Jennifer Beck Intoduces Bill to Repeal Prevailing Wage on BPU Assisted Projects

Senator Jennifer Beck has introduced S-1871 – Her bill repeals the law requiring prevailing wage be paid to workers employed in construction undertaken with Board of Public Utilities financial assistance.

S-1871 is identical to A-2370  that Assemblyman O’Scanlon introduced on March 4th 2010.

Click on Assembly or Senate Bill number to view Legislation

O'Scanlon Commends BPU for Assessing Impact of Prevailing Wage on Clean Energy Projects

Assemblyman Declan O'Scanlon, R-Monmouth and Mercer, welcomed testimony from Board of Public Utilities President Lee Solomon that the agency is assessing the impact of a law requiring prevailing wage on clean energy projects.

The law was signed during the lame duck session of the NJ Legislature by then Acting Governor & Senate President Stephen M. Sweeney, Sweeney, a union organizer for the International Association of Ironworkers, blatantly disregarded the substantial increase in construction costs the measure will impose upon the taxpaying public. As a union organizer the Senate President has a clear conflict of interest in any Legislation that mandates expansion of prevailing wages.

Assemblyman O'Scanlon is confident the review by the BPU will confirm Trade Organization’s and environmental group claims that prevailing wage is a hindrance to expanding the use of green energy saving systems and products throughout New Jersey. Green Energy Projects affected by the law are Solar Voltaic Systems, Energy Efficient Lighting, Heating and Air Conditioning Systems and more.

"I am confident that this analysis will confirm what several environmental and business groups have told us: clean energy projects are not proceeding because mandating prevailing wage is making clean energy projects too expensive," O'Scanlon said. "I want people to earn decent wages, but they won't be earning anything if no one is working on clean energy projects because of expensive mandates that increase costs by up 40 percent."

Assemblyman O'Scanlon is the sponsor of A-2370, which if passed would repeal the prevailing wage mandate on Green Energy Projects,

A-2370 would create jobs by making Green Energy Project more affordable for the taxpayers of New Jersey.

"We all want to reduce energy consumption and lower utility bills, but businesses are not going to invest in our environment if costs are prohibitive," O'Scanlon said. "This issue is one of the few examples on which the business and environmental communities agree. Lifting this requirement will result in more projects that will help the environment and put more people back to work in these trying economic times."