New Buy American Requirement Enacted for SRF Loans
Thank you to the Iowa DNR for sharing this information with SmallWaterSupply.org!
In the federal budget passed by Congress on January 17, a Buy American requirement for State Revolving Fund loans was imposed. The information about how this will be implemented is still coming out from the U.S. Environmental Protection Agency (EPA), but it will have an impact on a number of pending Clean Water and Drinking Water SRF projects. Here are the facts we know so far; these will give you a preview of how your project may be affected:
If you meet either of the following criteria, Buy American does NOT affect you:
A. Your SRF loan was executed before January 17, 2014; OR
B. Your construction permit was issued before January 17, 2014.
All other projects may need to comply with the new Buy American requirements.
The new Buy American requirement applies to iron and steel products, but not all manufactured goods (as was the case during the American Recovery and Reinvestment Act (ARRA) period when SRF last had Buy American). These products include such items as pipes and fittings, manhole covers, hydrants, tanks, flanges, pipe clamps, valves, structural steel, reinforced precast concrete, and other construction materials.
A waiver process will be in place for cases where the EPA determines that applying Buy American would be inconsistent with the public interest, there is a lack of availability or quality of U.S. made products, or inclusion of iron and steel products produced in the U.S. will increase the cost of the project by more than 25%. The waiver process will include a public comment period.
Editor's Note: Please direct any questions about how this requirement may impact your SRF project to your primacy agency.