The Democratically controlled U.S. House of Representatives has made several attempts to include Davis-Bacon Act wage requirements in legislation, most recently with the Farm Bill, during the immigration debate, the Water Quality Financing Act passed earlier this year, and now with the Energy Bill.
Davis-Bacon requires contractors on federal construction projects to pay workers a federally defined “prevailing wage.” The methodology used to calculate this prevailing wage sets it close to union wage scales and well above average wages. Davis-Bacon requirements help unionized construction firms to compete for federal construction contracts.
H.R. 2419, the Farm Bill Extension Act of 2007 would extend Davis-Bacon Act wages to workers building new ethanol plants, it blocks price competition from nonunion corporations, and some believe would have the effect of driving up the price of ethanol, as ethanol producers will have to charge more to recoup the cost of the increased wages.
During the immigration debate, as part of the new temporary worker program, a provision in the Senate bill would have required a business to advertise the job in the U.S. at a “prevailing competitive wage” before hiring a temporary worker.
Earlier this year, the U.S. House passed H. R. 720, the Water Quality Financing Act. This bill also contained a provision that would extend Davis-Bacon wage rules to funds provided by the Environmental Protection Agency for Clean Water Act State Revolving Fund projects.
The Chairman of the House Ways and Means Committee, Congressman Charles Rangel (D-New York) has been promoting legislation that would provide tax incentives for new energy conservation efforts. H. R. 2776, the Renewable Energy and Energy Conservation Tax Act of 2007 would apply Davis-Bacon standards to projects financed with tax credit bonds.