By DOUG WILSON

Herald-Whig Senior Writer

Hundreds of home weatherization projects in Western Illinois and Northeast Missouri have been on hold while federal officials sort out how $5 billion in stimulus money is spent.

At issue is how the federal prevailing wage rates, set out in the Davis-Bacon Act, will affect projects meant to make homes more energy efficient.

Becky Pruden, executive director of the Two-Rivers Regional Council in Western Illinois, said months of confusion and contradictory rulings by federal agencies have kept the stimulus money from being spent.

"We did weatherization work on around 85 homes last year. We think we can probably do more than 240 homes this year ... once the decisions are made so we can use the stimulus money," Pruden said.

Similar problems have kept the North East Community Action Corp. in Northeast Missouri from getting fully into the stimulus weatherization program.

Dave Towne, public information officer for NECAC, said the agency usually does about 200 weatherization projects in its 12 member counties. The stimulus money should push that number to 1,000 or more.

NECAC is in a different situation than Two Rivers in that only three of NECAC's 12 counties are expected to trigger the Davis-Bacon wages. That means stimulus work can be done in the other counties while wage rules become final.

The wage rate will make a big difference, because it changes how weatherization jobs are bid. Usually, non-profit agencies negotiate wages with contractors and those pay scales are then used throughout a fiscal year.

Towne said NECAC recently paid $10.50 an hour to contractors. Federal prevailing wages would be $20 or more, Towne said.

The delay in stimulus projects is vexing in a variety of ways.

When Congress passed the $787 billion American Recovery and Reinvestment Act of 2009, the stated goal was to get money into the struggling economy to create jobs.

From NECAC's viewpoint, as well as other agencies, the delay could create a time crunch.

"Non-profit agencies are in a bind, because these funds have got to be spent by a certain time. You have to get the work done, but you don't know the rules," Towne said.

Pruden has not seen the same kind of time squeeze. She believes Two Rivers has until September 2010 to complete the stimulus projects.

Some federal officials are upset the money is not being spent.

Gilbert Sperling of the U.S. Department of Energy told The Associated Press there should be no delays.

"I'm satisfied we have communicated as clearly as we can to the states and the agencies that we want them to move forward spending recovery funds even before (the U.S. Department of Labor) issues new wage determinations," Sperling said.

Federal spokesmen say if agencies pay wages that are later found to be too low, they will be ordered to send contractors the difference. It has not been clearly stated what agencies can do if they have paid more than necessary.

-- dwilson@whig.com/221-3372