As previously reported by AGC, the Infrastructure Investment and Jobs Act (IIJA) includes new Buy America requirements, that could delay infrastructure projects funded by the law. The IIJA provides funding for physical infrastructure like roads, water systems, the electric grid, and more. The new and expanded Buy America requirements apply to all federally funded programs and include manufactured products, like iron and steel, and also construction materials used on projects within those programs.
Federal agencies have voiced concern over whether project sponsors will be able to complete projects with these requirements as they stand and are working with AGC and other industry stakeholders to address this issue. Federal guidance on implementation of the new requirements is expected to be published in May.
Many products manufactured in the U.S. do not meet the requirements because some component or material used in production is globally sourced. For instance, a pump manufactured in the U.S. that includes an impeller produced overseas does not satisfy the requirements.
One agency AGC has been working with to address these issues is the Environmental Protection Agency (EPA). The EPA model has been successful in getting funds out the door through its state revolving fund programs for drinking water and wastewater projects and still abiding by similar requirements since the Recovery Act of 2009.
AGC will continue to work with EPA and other agencies to help ensure that this new policy is implemented in a way that protects American jobs and manufacturing but allows for certain exemptions to ensure projects are not delayed or halted.