EPA Baba Act Overview
The Build America, Buy America Act (BABA), enacted as part of the Infrastructure Investment and Jobs Act in November 2021, mandates that federally funded infrastructure projects utilize iron, steel, manufactured products, and construction materials produced in the United States. The Environmental Protection Agency (EPA) enforces BABA across over 70 programs, including those related to water infrastructure, brownfields, and clean ports. Effective May 14, 2022, BABA applies to all new or amended federal financial assistance awards for infrastructure projects, regardless of the funding source.
To comply with BABA, manufacturers must ensure that all manufacturing processes for iron and steel products—from initial melting to final coating—occur in the U.S. For manufactured products, over 55% of the total cost of components must be sourced domestically, and final assembly must take place in the U.S.
Construction materials such as non-ferrous metals, plastic and polymer-based products, glass, and engineered wood must also be produced domestically. Compliance is demonstrated through a certification letter on company letterhead, detailing the product, manufacturing locations, and a statement affirming adherence to BABA requirements.
NFFS members can prepare for BABA compliance by auditing their supply chains to verify domestic sourcing and manufacturing processes. Establishing documentation protocols for certification letters and maintaining records in accordance with EPA guidelines is essential. In cases where compliance is challenging due to factors like cost or availability, manufacturers may apply for waivers, such as public interest, nonavailability, or unreasonable cost waivers.
Additional Resources:
- EPA’s BABA website
- Overview of BABA
- Manufacturer certification letter templates
- Program-specific implementation procedures/FAQs
- OMB’s guidance