NACWA submitted comments May 20 to U.S. EPA regarding its proposed Build America, Buy America (BABA) waiver for the Water Infrastructure Finance and Innovation Act (WIFIA) program. NACWA strongly supports this waiver, which would exempt from BABA those projects seeking WIFIA funding that initiated design planning prior to the date BABA went into effect, which was May 14, 2022.  

As previously reported, the BABA requirements that passed into law as part of the Bipartisan Infrastructure Law (BIL) significantly expand prior domestic procurement requirements. In addition to American Iron & Steel, domestic procurement rules also now apply to manufactured goods and construction materials seeking funding from any federal infrastructure investment program. The objective of BABA is to help advance domestic manufacturing and supply chains and help ensure federal investments support American jobs.  

The proposed waiver for WIFIA takes a flexible approach to “grandfathering in” projects that were in the planning stages before BABA went into effect, recognizing that without an exemption, utilities may be forced to go back to the drawing board on their projects or face potential delays and cost increases they could not have foreseen.  

In its letter, NACWA encouraged EPA to be flexible in the types of documentation or steps that constitute design planning initiation, such as the date of execution of a bid or a contract for design planning services.  NACWA also urged EPA to provide a grandfathering in period for the State Revolving Funds (SRFs). EPA has indicated that guidance on the SRFs should be out soon and NACWA believes the WIFIA waiver signals that EPA will be responsive to concerns about ensuring the SRFs have time to adapt without delaying projects.

Contact Kristina Surfus, NACWA Managing Director of Government Affairs to discuss.