Bureaucracy - I think it should be California Bureaucracy right now [RE-wren

[Matt Lafferty]

Wrenches:

Keith asked:

> How PV can affordably installed on a home under the auspice of
> "Davis-Bacon" wages?  Does anyone know how PV could possible\y be
> affordable if this flu travels to other states?  What will the cost per
> watt be under these conditions? Does anyone know?

Regarding "Davis-Bacon"....Due to the budget situation here in California,
Davis has promised to cut out all pork, so I don't see that as a
problem....OK.  Bad joke.

It is a "flu", as Keith called it.  More like smallpox, really.

My belief is that, once this is enforced, the only PV installed in
California that is Grid-Tied will be on Goobment installations.  Period.  No
homeowner stuff at all.  Nothing under 10 or 15 kW unless it is a
"feel-good" demonstration system for one of those agencies.  There is no way
to make it cost-effective, unless we are paying $5.00 a gallon for gasoline
and our electric rates are proportionately elevated.

Having been burdened for the last 4 years dealing with Prevailing Wage
issues, both as a contractor and from trying to manage contracts and get the
costs down "from the inside", I have found it to be one of the most onerous
and costly obstacles I can think of.

It isn't "the wages" that are the true killer.  When you are subject to the
Public Contract Code sections that end up intertwined in this issue, there
are GIGANTIC paperwork, filing, bonding, insurance, "paid vacations",
"health & welfare", blah, blah, blah....requirements placed on the
contractor.

What this does is take the "small guy" out of the picture.  Why would I want
to go through all this for one job?  How can I even sell that job when I
have to add up all the costs and be remunerated for it?  Where is my Lotto
ticket?

On top of that, any subsidy program will have to build in a bunch more
bureaucratic "seats" just to administer, monitor, audit, carry all the
paperwork from this building to that building, etc.  All this adds up to
vastly increased costs to administer the program.  All that adds up to
reduced money available to "get back to the roofs".

If you think the CEC is slow now....It will not move, once this takes hold!

Beware!  I predict that something like the following can and likely will
happen on a broad scale if not stopped.  Some of you may already be
"in-process" and at some stage of this scenario....Get ready to fight!

1.  Wrench sells system to homeowner.
2.  CEC reservation application is submitted and approved.
3.  Wrench installs system, get inspected, and interconnected.
4.  Homeowner pays Wrench.
5.  Homeowner sends in request for payment to CEC.
6.  CEC takes forever getting back to Homeowner with the information that
they need the following paperwork...Certified Payroll Reports, Copy of
Contractor's Payment & Performance Bond for this project, etc.
7.  Homeowner calls Wrench and sends copy of CEC letter to Wrench, asking
for Wrench to supply the requested paperwork.
8.  Wrench scratches his head  and says, "Gee, I've never heard of this
stuff".  Well, Todd Cory simply explodes....lol
9.  Wrench does what he can to find out what all that means (Tying up more
CEC phone lines and people).
10.  1 week, 2 weeks, 3 weeks....Homeowner is getting impatient.  They need
that money!
11.  Wrench eventually finds out that he has to pay "back wages and
benefits" to his guys, a payroll company to certify the payroll, maybe some
"penalty", and, worst of all, that he can't get a Performance and Payment
Bond for this project, after it is done.....
12.  Wrench becomes despondent....Frequent trips to the Casino in an effort
to "make some quick money" to try to solve the problem.  Even vowing to pay
the "buydown" himself if he wins.
13.  Wrench can't be productive (Selling and installing more PV.  You know,
"Making a Living".) and begins drinking heavily which causes him to not
answer the phone.....
14.  Wrench finally seeks help and checks into Matt's Home for Displaced
Wrenches for rehab....Further burdening "the system" because the Wrench
doesn't have the appropriate health insurance to cover the costs and applies
for Medi-Cal or Disability.
15.  Wrench soon finds that "all his friends" are at or on their way to
Matt's Place and becomes content to just stay there to get over his
addiction to PV.
16.  After a period of time, the Resident Wrenches learn that Matt's Place
is only 6 miles from the CEC and they organize an assault......
17.  After another 18 years underground, PV is "re-discovered" and the whole
process starts over.

OK, enough!  Yes, the last part of this scenario are intended to be
satirical, but thought provoking as well.

This is NOT a joke!  This WILL happen if not stopped!

Oh, and you guys down there in LA thinking "We've got our own....That just
applies to the CEC."  Wrong!  LADWP and any Municipalities providing
incentives are required to comply with the Public Contract Code....Sorry!

I forgot, to mention this....At some point a roomful of Lawyers (with the
Oil Companies, Energy Companies, Utilities, and Union Contractors blowing in
their ear) will also discover and point out that the Competitive Bidding
Process must be complied with, as well.  Yeah, RFB process, Public
Notification of Bid Solicitations....All that!  Most of us have no idea what
a headache all this is.

If you really want to see PV survive and prosper, I recommend the following
actions, in order:  (This plan will provide survivability, sustainability
and profitability for PV within 2-3 years...I promise!)

1.  Buy stock in companies like Duke Power, Oil Companies, anything that is
"Non-Renewable" and truly profit-driven.  (This will provide income for you
from the dividends while you implement the rest of this plan)
2.  Stop all Renewable Activity.
3.  Register as a Republican and become active in the Party.  Note:  You
should secretly be buying all the Modules and Inverters you can as the
"demand stops" and the price for the equipment falls to the bottom.  Store
all this equipment in a secure facility for later.
4.  Begin lobbying heavily for Full Electricity Deregulation nationwide.
This will get the PUC, FERC, etc. out of the way for the next steps.
5. With the "consumer protection" agencies out of the way, become heavily
engaged in Energy Trading.
6.  Depending on how fast this process goes, right in here somewhere, maybe
between steps 4 & 5, Vote For Bush.
7.  Pretend to be "sad" that the retail price for electricity has tripled.
8.  Pull out all that glass and SELL, SELL, SELL!
9.  Retire on your "double-dipping" income, knowing that you "did all this
for PV" and deserve it!

Mobilize, you guys!  My house isn't big enough for all of us!

Like I say, all the time....Play the Lotto!  Play the Lotto!  Play the
Lotto!  Oh, and....

Pray for Sun!

-Matt Lafferty
pvpro at attbi.com

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