Build America, Buy America (BABA) Act

Build America, Buy America (BABA) Act requirements - Public Law No. 117-58, Sections 70901-52 - regarding the requirement that iron, steel, manufactured products, and construction materials used in the project must be produced in the United States.

BABA applies to all "equivalency" State Revolving Fund (SRF) projects funded under the State Fiscal Year 2023 Clean Water State Revolving Fund and Drinking Water State Revolving Fund Intended Use Plans, which use federal fiscal year 2022 grant funding, and subsequent state fiscal years.

BABA applies to both the SRF capitalization grant awards from the federal annual appropriations and also the awards from the supplemental funding from the Infrastructure Investment and Jobs Act of 2021, including the special funding for Lead Service Line Replacements and addressing Emerging Contaminants.

A recipient of an applicable CWSRF or DWSRF program equivalency project must ensure that the project remains in full compliance with the BABA Act. All of the iron, steel, manufactured products, and construction materials used in the project must be produced in the United States or the project must comply with waivers granted by the U.S. Environmental Protection Agency (EPA) under the BABA Act; provided, however, use of EPA's "Adjustment Period Waiver of Section 70914(a) of P.L. 117-58, Build America, Buy America Act, 2021 for SRF Projects that have Initiated Design Planning" requires TWDB's written approval.

Guidance from the federal Office of Management and Budget (OMB) and EPA:

  1. EPA's main Build America, Buy America (BABA) webpage.
  2. EPA's "Build America, Buy America Act Implementation Procedures for EPA Office of Water Federal Financial Assistance Programs", dated November 3, 2022
  3. OMB's "Initial Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure", M-22-11, dated April 18, 2022
  4. EPA's main Build America, Buy America (BABA) approved waivers webpage.
  5. EPA's "Adjustment Period Waiver of Section 70914(a) of P.L. 117-58, Build America, Buy America Act, 2021 for SRF Projects that have Initiated Design Planning" for the SRF programs
    • Use of this waiver requires TWDB's written approval.
    • EPA has proposed a sunset (deadline) of September 30, 2024. See, Waivers Open for Public Comment for more information.
  6. EPA's "Supplemental Questions and Answers for Build America, Buy America Act Implementation Procedures for Office of Water Federal Financial Assistance Programs", May 9, 2023
  7. EPA De Minimis General Applicability Waiver of Section 70914 of P.L. 117-58, Build America, Buy America Act
  8. EPA Small Project General Applicability Waiver of Section 70914(a) of P.L. 117-58, Build America, Buy America Act
  9. Minor (Ferrous) Components of Iron and Steel Products Public Interest, General Applicability Waiver of Section 70914(a) of P.L. 117-58, Build America, Buy America Act, 2021 for U.S. Environmental Protection Agency Financial Assistance Awards

The TWDB monthly BABA Certification in fillable PDF format, TWDB-1110-A, is found under Program Guidance and Manuals.

Other specific TWDB BABA administrative/procedural guidance and forms will be available at a future date.

Note: the SRF project must meet any applicable American Iron & Steel (AIS) requirements even if BABA is not applicable to the project, if a BABA national SRF waiver applies, or the project receives a project-specific BABA waiver that does not also cover the all the iron & steel requirements contained in the AIS statute.

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