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On August 7, 2023, the New Jersey Department of Community Affairs (DCA) approved changes to Local Finance Board rules regarding uniform traffic control. The UTCA has been working closely with the staff at DCA, especially now Acting Commissioner Jacquelyn Suarez, and Jason Martucci.

UTCA fought for our contractors to reduce the cost of uniform traffic control rates by capping the administrative fees that counties and municipalities (local units) add on to the officer’s rate.

What did we achieve for our contractors?

• The following criteria shall be considered when establishing and administrative fee: Personnel, Administrative, Vehicle, Equipment and Other Costs.

• A cap on the amount of administrative fee that a local unit may charge per hour for the hiring of an off-duty officer. This includes the use of a vehicle and equipment. While calculating the administrative fee, the local unit has to use the hourly rate of the lowest paid employee who can perform such task. Administrative costs shall be limited to the scheduling of officers for off-duty employment, maintenance of time records, payroll processing and billing.

• The local unit must place into ordinance or resolution identifying the hourly rate for the officer and the administrative fee.

• The only costs a local unit may include for personnel-related costs are payroll taxes and any additional liability insurance, if required.

• For the use of a vehicle, the local unit can only charge for the cost of the vehicle going to and from the project. That cost will be determined as per the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The local unit can only charge the hourly rate and mileage as dictated by federal law.

• The local unit must establish a trust fund and, upon completion of the project, the local unit has up to 30 days to return any remaining balance in the trust fund to the contractor. Our contractors have complained that they do not receive the remaining balance due to them for up to 6 months.

• The local unit must, prior to the project, provide written notice to the contractor of the cost of the off-duty officer along with a breakdown of the administrative fee.

It’s important for you to alert your accounting departments of this new regulation as it is now in effect.

Please click here for NJDCA rule

If you have any questions, please contact Dave Rible HERE

There is near-universal agreement among the state’s utility providers and construction industries that we must deal with climate change. Many of these companies and organizations are already taking steps, on their own, to deal with the issue. The New Jersey Board of Public Utilities’ (BPU) proposal to electrify buildings, however, has brought these groups together in another way: to showcase just how potentially damaging this proposal is to the people of New Jersey.

Earlier this year, Governor Murphy issued an executive order calling for 400,000 homes, 20,000 commercial buildings and 10% of all low-to-moderate income buildings to have zero-carbon-emission heating and cooling systems by 2030. Earlier this month, the BPU planned on beginning to implement these goals through a plan that would force electric utilities to begin this electrification process. Fortunately, the proposal was pulled from the agenda. But it still lurks and with it, all the issues that come with this poorly thought-out proposal.

Perhaps the biggest question is whether electrification and meeting the governor’s goals is even possible. The short answer is no. The infrastructure to meet these standards does not exist, neither in New Jersey, nor anywhere in the country. Current transmission lines went up when Mickey Mantle and Willie Mays were still playing baseball. They were built for another time and are simply not equipped to handle the influx of electric power needed under the BPU’s proposal.

Think about the extra capacity needed for our electric grid to power an additional half a million buildings. Now consider that New Jersey does not have the capacity to provide ample charging stations for the state’s electric vehicles. NJ Coalition of Automotive Retailers President Jim Appleton recently noted that his organization is attempting to upgrade three chargers at their headquarters but they’ve been told by the utility that it will “be 42 weeks before they can install the transformer needed to upgrade our service.” The recent proposal by Governor Murphy to require, by 2035, that all new cars manufactured in New Jersey be electric will not only exacerbate this problem, but it may have the unintended consequence of merely proving how unprepared we are for electrification in general.

Some might ask, “Why not just update the infrastructure?” We certainly would not object to that. In fact, it’s completely necessary. The size and scale of the upgrades necessary, however, will not be accomplished overnight. It will take years to transform the grid to meet the energy needs required under this proposal. To provide a sense of how extensive those changes would be, the U.S. Department of Energy has estimated that the cost of creating a clean electricity grid could reach over $1 trillion.

Cost, meanwhile, factors heavily into the BPU’s proposal. It has yet to be identified just how the costs of this extensive electrification will occur. In testimony submitted to the BPU, PSEG noted that even if every utility was given $10,000 per home for this effort, it would only convert 15,000 homes in three years, “leaving 385,000 homes to be converted” by 2030.

Will homeowners be left on the hook to cover those costs, and for a program they essentially had no say in? As representatives of the construction industry, we find such a scenario especially disturbing. The industry is moving toward electrification of vehicles and equipment but that pace is slow because the energy and materials needed to support electrification just do not exist in abundance. Who is to say that we are not next in the rush to electrify without considering the consequences.

This rush to electrify could have long-term consequences. Last year, California had to tell residents to conserve energy in the middle of a heat wave or face devastating rolling blackouts because their energy grid was stretched so thin. In 2021 Texas suffered heat outages during a historic winter storm. Is that what we want in New Jersey? Electric heating and air conditioning won’t make much difference if our grid system completely collapses under the weight of this proposal.

We have to deal with climate change in a smart, effective manner. This proposal, however, is essentially plugging one hole in a dam only to create three more. Rushing to electrify buildings when the capabilities to do so literally do not exist will cause substantial damage to the state and to ratepayers. The BPU should shelve this plan for good and the state must come up with a comprehensive plan on this issue that addresses costs, supplies and realistic timing.

Dave Rible is Executive Director of the Utility and Transportation Contractors Association of New Jersey.

Instead of delivering emissions reductions to mitigate the impacts of climate change, the rush towards electrification has brought bankruptcy and bailouts. Across the country, developers and manufacturers are struggling to keep pace with lofty timelines; instead committing to promises and projects that later end in disappointment and litigation.

It’s clear that the current pace to adopt clean energy in New Jersey and beyond is incompatible with today’s infrastructure and economic realities. While the impacts of climate change pose a real threat that should be addressed, states need to adopt a real approach to electrification — or face unintended consequences.

The growing electric vehicle industry is becoming increasingly familiar with these consequences.

Just over two years after President Biden lauded electric bus company Proterra’s manufacturing initiatives, Proterra filed for Chapter 11 reorganization in federal court in Delaware. The California-based company has existed for nearly two decades and recently celebrated electric vehicle battery production in South Carolina, as well as the opening of North America’s largest electric vehicle bus charging center.

Despite what seemed like major milestones in a nationwide electric vehicle adoption effort, Proterra ultimately was unable to overcome “market and macroeconomic headwinds.” Unfortunately Proterra is not alone in their financial struggles.

Just weeks before Proterra’s bankruptcy filing, EV startup Lordstown Motors also filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. Production of Lordstown’s Endurance electric truck faced a myriad of development obstacles since the company went public in 2020, including economic troubles requiring a $100+ million investment by Taiwanese manufacturer Foxconn. Even with the intervention, Lordstown was forced to halt Endurance production.

As New Jersey looks to incentivize light-duty electric vehicle sales with a forthcoming administrative rule, we hope that electric vehicle adoption in the state does not subject manufacturers to a similar fate.

The struggles of adapting to electrification are not limited to onshore industries. Across the Northeast, offshore energy goals are encountering hard financial realities.

In Massachusetts, offshore wind developer Avangrid is paying $48 million to terminate its Commonwealth Wind project — approved by the Department of Public Utilities just months ago. Similar agreements are forthcoming in Massachusetts, with Shell and Ocean Winds North America expected to reach an even higher termination payment. Just two days after Avangrid announced its settlement, Rhode Island’s largest utility announced it was scrapping plans for a power purchase agreement with Ørsted and Eversource; rejecting the only bid received in its October 2022 Request for Proposals.

And these problems are all too familiar in New Jersey. While Governor Murphy has hailed New Jersey as a leader in the country’s offshore wind development and aims to transition the state to 100% clean energy by 2035, making such statements a reality has faced delays, lawsuits and funding shortfalls.

The most recent development in New Jersey’s offshore wind saga comes after a legislative resuscitation of Ørsted’s Ocean Wind I project, when Governor Murphy signed a bill allowing Danish developer Ørsted to keep new federal tax incentives at the expense of New Jersey ratepayers.

New Jersey’s second major offshore wind project is now also looking to state leaders for a similar government-funded break. Shortly after Ørsted’s project approval, Atlantic Shores issued a statement suggesting their previously approved project is in jeopardy without “immediate action” and further financial aid.

Lawmakers are also calling the transparency of the state’s clean energy approach into question, urging the Board of Public Utilities to do more to address unanswered questions and concerns surrounding the impacts of offshore wind on ratepayers and tourism. UTCA and our members stand ready to provide the support to deliver energy from offshore wind to New Jersey. Until then, we hope that New Jersey’s approach to this growing industry is well thought out.

While the fate, timeline and cost of New Jersey’s offshore wind projects seems to hang in the balance, one thing remains clear — ambitions are outpacing economic reality. New Jersey continues to propose clean energy initiatives that fail to account for industry capabilities.

The unforeseen consequences of this rush to electrification are not exclusive to any industry, business or entity. Without an approach that most effectively balances our clean energy needs with currently available realities, we may all pay the price.

Dave Rible is the executive director of the Utility and Transportation Contractors Association of New Jersey.

Farmingdale – Utility and Transportation Contractors Association (UTCA) Executive Director Dave Rible released the following statement today on the passing of Lieutenant Governor Sheila Oliver:

“I had the pleasure of working with Lieutenant Governor Oliver when she was Assembly Speaker and I was conference leader. She had a unique and relentless commitment to those she represented. Though we were from different parties, our conversations were always civil and with the goal of achieving what was best for the people of this state. She was a trendsetter and a history maker; someone we can all look up to as a great example of what it means to engage in public service. UTCA offers its condolences and prayers to her family and friends. May she forever rest in peace.”

Farmingdale – Utility and Transportation Contractors Association (UTCA) Executive Director Dave Rible released the following statement today on the retirement of Governor Codey from the State Legislature:

“I can think of few people who are leaving behind a more incredible legacy than Dick Codey. His commitment to public service spans 50 years and countless bills that he helped make law that improved the lives of everyday New Jerseyans. He steadied the ship as governor during an uncertain time in our state’s history and led the charge for the widening of the New Jersey Turnpike. Governor Codey was always ready to meet colleagues with a joke, a discussion about a serious topic or, sometimes, both. Perhaps his most lasting legacy, however, will be his commitment to those with mental health issues and ensuring their voices were heard in Trenton.

“We wish Governor Codey all the best in his retirement and thank him for his decades of service to New Jersey.”

Governor Murphy today signed a UTCA-developed bill that changes the dates for the DOT’s material cost escalation program.

As we have previously reported, the original program was available only for contracts bid by April 1, 2020 which excluded the period when material cost increases were most severe. That program closed on January 21, 2023.

UTCA requested and backed this legislation which makes contracts bid before December 1, 2021 eligible for reimbursement for cost increases. The new law will re-open the program with the new eligibility period for another 90 days and an additional 30 days, if funds from the $10 million appropriation are still available.

Please note the DOT will need to re-start the application process so the program will not open immediately. We will inform you as soon as we know when it will be re-opened.

The reimbursement is available only to certified Small Business Enterprises (SBE’s) and applies only to DOT contracts. More information and the application for the original program can be found here.

If you have any questions on this or any other matter, please reach out to Ryan Sharpe via email at ryan@utcanj.org or by calling (732) 292-4300.

The Utility and Transportation Contractors Association (UTCA) announced the selection of Dave Rible to assume the role of Chief Executive Officer (CEO) upon the retirement of the current CEO, Robert Briant, Jr.

UTCA President Glenn Ely made the announcement at the UTCA General Membership meeting on January 12.

“I am pleased to announce the UTCA Board of Directors has unanimously selected Dave Rible to lead our organization as we tackle the many challenges facing the construction industry,” said Ely, who is the president of PKF Mark III, an engineering, construction and management company. “The Board felt strongly that Dave’s unique skill set and knowledge of our industry make him ideally suited to serve as our next CEO. I look forward to working with Dave and my colleagues to ensure UTCA and the industry continue to grow and prosper.”

UTCA is a non-profit trade association headquartered in Wall, that represents approximately 1,000 member firms in the public and private sectors, active in all phases of heavy, highway, utility, and marine construction, as well as site work, including remediation of brownfields and contaminated sites.

A resident of Wall, Rible currently serves as the association’s Executive Director and has been with UTCA since 2019.  Prior to joining UTCA, he was the Director of the New Jersey Alcoholic Beverage Control Commission (ABC) and served in the New Jersey Assembly from 2008 until 2017. He is also a former Wall Township police officer and detective.

While in the Legislature, Rible was the prime sponsor of legislation that reauthorized the state’s Transportation Trust Fund, which pays for critical transportation infrastructure projects.

“I am humbled to be chosen to lead this organization that, for years, has been such a forceful and effective advocate on issues affecting the construction industry,” said Rible.  “As a legislator, I worked closely with UTCA and saw firsthand their commitment to helping their members and supporting the entire construction industry.”

Briant Jr., of Brielle, has worked for UTCA since 1982, becoming CEO in 2006.  The elder Briant started at the association in 1967 and continued to be involved with UTCA until his passing in 2013.

“During my time at UTCA, I have been fortunate to serve with my father and with an incredible staff that helped us build an outstanding association that continues to be a leader in the construction field,” said Briant. “As I begin to wind down my time at the UTCA, I am confident that Dave is the right person to lead the association going forward.”

UTCA’s most recent president, Rolando “Roly” Acosta, echoed Ely’s sentiments about the Board’s selection of Rible.

“As President of the UTCA, I was able to witness the tremendous value that Dave brings to the Board of Directors and the entire membership,” said Acosta, who is the president of Northeast Remsco Construction, a utility, treatment plant, and trenchless contractor. “Our board recognized the need for a succession plan for the organization and we are confident that implementing this transition to a new CEO will allow UTCA to continue to be a leader in advancing the construction industry.”

Op-Ed: Turnpike expansion would cut congestion, boost NJ economy

Utility and Transportation Contractors Association (UTCA) Executive Director David Rible issued the following statement today on the passing of former Governor Jim Florio:

“Governor Florio is the embodiment of what it means to be a public servant. As an Assemblyman, Congressman and Governor he fought tirelessly for the causes he believed in, even when it was politically unpopular. Above all, he served with grace and dignity and leaves behind an amazing legacy of public service. 

 “I consider myself fortunate to have had the privilege of interacting with Governor Florio during my time in the Legislature. Even as a new legislator from the opposite party, he always treated me with kindness and respect that is too often lacking in today’s political environment.

 “In addition, our association has enjoyed a great relationship with the Governor’s law firm, Florio Perrucci Steinhardt Cappelli Tipton & Taylor, which has served as our legal counsel for many years. On behalf of the members of UTCA, I offer our condolences and prayers to Lucinda and the entire Florio family.”