California · CA SURGE

California SURGE

Assembly Bill 2143 created Public Utilities Code Section 769.2, in effect since January 1, 2024, which requires prevailing wages for all construction workers and apprentices on large customer-sited renewable generation and paired storage that takes a net metering or net billing tariff from PG&E, SCE or SDG&E. Contractors keep certified payroll and file it with the CPUC twice a year, and a valid complaint within 18 months of completion brings back wages, interest, daily fines and the loss of the tariff.

AB 2143PUC Section 769.2DIR ratesCPUC filing
What the program requires

Prevailing wage on the tariff, certified payroll to the CPUC.

Electrical generation facilities on any of these tariffs are subject to AB 2143:

  • PG&E: NEM, NEM2, NBT, NEMVMASH, NEM2VMSH, NEMV, NEM2V, NEM2VSOM
  • SCE: NEM, NEM-ST, NBT, MASH-VNM, MASH-VNM-ST, NEM-V, NEM-V-ST, SOMAH-VNM
  • SDG&E: NEM, NEM-ST, NBT, VNM-A, VNM-A-ST, NEM-V, NEM-V-ST, SOMAHVNM

Source: the California SURGE guide on dsptch.work/california-surge-act, which links the AB 2143 text and the CPUC SURGE site. Rates come from the California DIR.

  • Pay the prevailing wage. At minimum, the appropriate prevailing wage to all construction workers and apprentices on the project.
  • Keep and file certified payroll. Maintain certified payroll records and submit digital copies for all workers to the CPUC twice a year, on July 1 and December 31.
  • Exception: small and residential. Residential facilities of 15 kW or less, or any facility installed on a single-family home.
  • Exception: already public work. Projects that are a public work under existing law.
  • Exception: low-rise housing. Facilities serving a modular home, a modular home community, or multiunit housing of two stories or fewer.
  • Complaints. A construction worker, apprentice or joint labor-management committee can file a prevailing wage complaint within 18 months of project completion.

Penalties on a valid complaint

Back wages plus interest
10% per year
From the day the wages were owed, under Labor Code Section 1741 and Civil Code Section 3289
Daily fines for willful violations
Up to $200 per day
Per worker not paid prevailing wages. Prompt correction once notified, with no prior history, may be treated as a good-faith mistake and waived
Tariff and bidding
Up to 3 years
Debarment from public work bidding; a willful wage violation also makes the facility ineligible for all net metering tariffs
What DSPTCH tracks

DIR rates on the job, certified payroll ready for July 1 and December 31.

The DIR determination is held on the job and applied to each worker's classification, every hour is priced against it the same day, and the certified payroll the CPUC receives twice a year comes from the same record.

Wage determinations

California DIR determinations, by classification, on every covered job.

The DIR determination is added to the job with its source and assigned by classification. When DIR publishes a change, affected workers are re-rated and the change is logged.

Obligation vs paid

Per worker, per week, for workers and apprentices alike.

Wage and fringe required against paid, so a short week is corrected on the next payroll, not found in an 18-month complaint.

Certified payroll

Digital certified payroll for the CPUC, twice a year.

Certified payroll per contractor from the hours and payroll, bundled for the July 1 and December 31 submissions.

Apprentices

Apprentice rates checked with the crew's.

AB 2143 covers construction workers and apprentices alike. Each apprentice's rate is checked against the determination and their documentation is kept with the certified payroll. The SURGE guide sets no labor-hour or ratio test.

Correction

Correct promptly, and the daily fine may be waived.

The guide treats a promptly corrected failure with no prior history as a good-faith mistake. DSPTCH flags each short week as it is priced, so the correction lands on the next payroll.

Bring one SURGE project. We'll show you the filing it becomes.

On a demo we put the DIR determination on a job, price a worker's week against it, and build the certified payroll the CPUC receives.