Dive Insight
For decades , Buy America requirements focused on iron and steel https :// www . whitehouse . gov / briefing-room / statementsreleases / 2023 / 02 / 06 / fact-sheet-the-bideneconomic-plan-is-working / and only covered certain federally funded infrastructure projects , according to the White House . The Build America , Buy America Act guidance in the IIJA expands those provisions , and adds three products to the Buy America list : composite building materials , fiber-optic cable and optical fiber .
The Build America , Buy America provision impacts all federally funded infrastructure projects — not just those that receive Infrastructure Investment and Jobs Act funding — and applies to an entire project even if it is funded by both federal and nonfederal funds under multiple awards . The Buy America efforts are part of the Biden administration ’ s focus on boosting domestic manufacturing and supply chains .
There is one new carveout , however . The Federal Highway Administration Tuesday published a temporary Buy America waiver for electric vehicle charger components https :// www . federalregister . gov / documents / 2023 / 02 / 21 / 2023-03498 / waiverof-buy-america-requirements-for-electricvehicle-chargers , including steel , iron , manufactured products and construction materials . It will go into effect on March 23 .
■ Non-ferrous metals .
■ Plastic and polymer-based products .
■ Composite building materials .
■ Glass .
■ Fiber-optic cable .
■ Optical fiber .
■ Lumber .
■ Drywall .
The guidance does say that a federal awarding agency may waive Buy America requirements if it is inconsistent with the public interest , increases the cost of the overall project by more than 25 % or if the materials are not produced in the United States in “ sufficient and reasonably available quantities or of a satisfactory quality .”
The OMB is seeking feedback on its proposed guidance , and has a slew of questions about various definitions , processes and standards . The agency also wants to know whether it should add other construction materials to be covered by Buy America , such as engineered wood products , brick , paint , stains and other coatings .
Per the proposed guidance , a product qualifies as manufactured in the U . S . if the cost of its components that are mined , produced or manufactured domestically is greater than 55 % of the total cost of all components . Construction materials have unique standards that qualify them for Buy America ; those materials include :
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