The Department of Energy yesterday issued 100 awards under the Smart Grid Investment Grant Program. As recipients prepare to negotiate the terms of these grant awards, they should keep in mind that grants of stimulus funds under the Recovery Act come with a series of requirements.  Care should be taken to anticipate the following important grant requirements:

OMB Requirements

  • Location of the Project and Its Benefit
  • Report on the Compensation of the Grantee’s Top 5 Officers

DOE Stated Requirements

  • “Flow Down Requirement” = many, if not all, of the requirements flow down to the grantee’s contractors, vendors and other subs
  • Sequestration of Management of Funds and Costs
  • Detailed and Extensive Quarterly Reporting
  • Records for All Use of Recovery Act Funds and Their Job Effects
  • Access to All Relevant Grantee Records, and Their Subs’ Records
  • Protection of State and Local Government and Contractor Whistleblowers

Other Statutory Coverage

  • Davis-Bacon Act:  Under Department of Labor regulations, all covered workers must be included on a certified weekly payroll report
  • Buy American for Types of Iron, Steel and Manufactured Goods for Public Works
  • Single Audit Act
  • Environmental Protection Act
  • False Claims Act

Derivative Requirements

  • Assure that contracts and transactions with any supplier of goods, services or rights allow the grantee to impose obligations and obtain data imposed on it under the ARRA
  • A compliance program tailored to the segregated grant funds, their use, management, accounting and audit; and establishment of a system that meets federal compliance standards
  • Tax  effects of the receipt of Recovery Act grant funds

The foregoing is a summary of one of the many significant issues arising under the Recovery Act. We would be pleased to discuss these issues with you. Please direct your concerns to your regular contact at Troutman Sanders LLP or to any of the persons listed in the sidebar to this release.