Regulatory Alert: DOT Issues Temporary Waiver of New Buy America Requirements for Construction Materials

May 19, 2022

The U.S. Department of Transportation (DOT) issued a temporary public interest waiver of new Build America, Buy America (BABA) requirements for construction materials that are used in infrastructure projects to be manufactured in the United States on May 19. The temporary waiver will apply to any grants that are awarded to airports and obligated between May 14 and November 10, 2022. As the basis for the waiver, DOT emphasized that applying these new provisions to grant awards now, before adequate compliance processes are implemented, would be inconsistent with the public interest. 

You can read DOT's temporary waiver here. 

Background. Under the Federal Aviation Administration's (FAA) long-standing Buy America statute, all steel and manufactured goods used in Airport Improvement Program (AIP) funded projects must be produced in the United States. Last November, Congress passed the Bipartisan Infrastructure Law (BIL), which included a new requirement for “all construction materials“ used in infrastructure projects to be manufactured in the United States. However, the Administration has been slow to implement the new provisions, with only preliminary and non-binding guidance currently available from the White House. 

AAAE's Support for Temporary Waiver. Recognizing the challenges for industry to comply, DOT proposed a 180-day temporary waiver of new BABA requirements for construction materials. Last Friday, AAAE submitted supporting comments for the proposed temporary waiver to help ease the industry's transition to the new rules and allow for additional time for the development of guidance on how airports can comply with the new requirements. AAAE also urged DOT to ensure the waiver remains in effect until at least 180 days after FAA updates its current Buy America guidance. 

You can read AAAE's comments here and additional information in our May 16 Regulatory Alert. 

What's Next? The temporary waiver will apply to any grants executed between May 14 and November 10, 2022, making it applicable to a number of awards that are expected to be announced by FAA in the next several months. While this is positive news, AAAE remains concerned that FAA may not have the necessary guidance available for airports to understand how to comply with the new requirements by November. We will continue to engage with the Administration on this issue over the next several months to ensure that airports have sufficient time to incorporate the new provisions into existing planning efforts and critical airport infrastructure projects are not being unnecessarily delayed.