On May 14, 2022, the Build America, Buy America (BABA) Act took effect, requiring federal infrastructure projects to use U.S.-produced materials. It calls for 55% of all iron, steel, manufactured products, and construction materials to be domestically produced for a project to receive and use federal funding. Oversight of this law will be handled by the Made in America Office (MIAO).
While the law is currently in effect, the U.S. EPA has begun soliciting feedback from manufacturers, suppliers, and distributors impacted by BABA. The Water and Wastewater Equipment Manufacturers Association (WWEMA) recently stated that conversations with the EPA may result in the elimination of the 55% calculation and certification process for manufactured products. Changes to the Act’s requirements are expected to be put into place by Fall 2022. WWEMA anticipates particular challenges in the coming months for infrastructure projects moving forward until the definition is provided.
Below is a summary addressing questions about the BABA act.
What is BABA?
According to the EPA, “None of the funds made available for a Federal financial assistance program for infrastructure…may be obligated for a project unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States.”
“Project” means any activity related to the construction, alteration, maintenance, or repair of infrastructure in the U.S.
Do Centrisys/CNP’s sourcing and manufacturing practices comply with BABA requirements?
Yes. Centrisys/CNP will work collaboratively to ensure all sourcing and manufacturing practices comply with the BABA requirements currently in place for any municipal, wastewater, or industrial customers.
Do the BABA provisions apply to all infrastructure with funds made available for a Federal financial assistance program?
BABA will cover all federal funding, not just those funds allocated through Bipartisan Infrastructure Law (BIL). Water and Wastes Digest states this means all State Revolving Funds (SRF) and Water Infrastructure Finance and Innovation Act (WIFIA) funds trigger BABA requirements, regardless of their funding being created by BIL.
The National Science Foundation (NSF) states BABA provisions apply to all new Federal-funded financial assistance awards or ongoing Federal awards that receive additional funding after May 14, 2022, involving the construction, alteration, maintenance, or repair of infrastructure in the United States.
If I have an existing federal award, what funding actions will trigger the application of the BABA provisions?
Any funding increments/amendments within a current budget year, supplements for new scope of work, and renewal awards will initiate a revised set of Terms and Conditions. This action triggers the application of the BABA provisions.
Do the BABA provisions apply to infrastructure projects in other countries?
No, BABA only applies to infrastructure projects located in the United States.
Do you have additional questions about BABA and Centrisys/CNP’s compliance with the requirements? Contact one of our decanter centrifuge and advanced biosolids treatment experts today.