During a short information session on the Build America, Buy America Act, the United States White House has published the Buy America Guidance memorandum to clarify the requirements of the Act.
Shortly after, Vanessa Leiby, executive director of the Water & Wastewater Equipment Manufacturers Association (WWEMA) shared her summary of the Guidance.
“The release of the Guidance is just the beginning of the process. It is intended to establish guardrails for Agencies as they begin the implementation process,” says Leiby in her report. “WWEMA will be sending out the Guidance and any related materials as soon as they become available.”
The Build America, Buy America Act will require that, for any projects receiving any Federal assistance: all iron and steel be manufactured in the U.S., all manufactured products be produced in the U.S., at least 55 percent of the cost of materials for manufactured goods must be manufactured in the U.S., and all manufacturing processes for construction materials must also be completed in the U.S.
The Guidance provides guidance to federal agencies for the Buy America, Build America Act requirements. These requirements will take effect on May 14, 2022.
The Guidance also provides more information on definitions and ambiguities, as well as waivers’ criteria and processes.
Where the terms “construction materials” and “all manufacturing processes” are yet unclear, more information will soon come to clear these ambiguities.
Leiby’s report also notes that the act will the following types of waivers: non-availability, unreasonable cost, and public interest. Unreasonable cost waivers apply to situations where compliance would increase the cost of the project by more than 25%. According to Leiby, public interest waivers would apply under the following reasons: de minimis standards, small grants, minor components, urgent matters, adjustment period, and other considerations.
