FHWA Announces New Rule Addressing Buy America Waivers
Yesterday, the Biden Administration released a new, unprecedented rule, ending the long-standing Buy America waiver for manufactured products. The Notice for Proposed Rulemaking (NPRM) is the first step in the Administration’s efforts to change longstanding Buy America waivers previously enacted for manufactured products.
The Federal Highway Administration (FHWA) will solicit comments for 60 days after the rule is posted in the Federal Register, which is likely to occur in the days ahead. The goal would be to boost good paying, union manufacturing jobs that help expand the middle class and bolster the American supply chain for critical raw and manufactured materials, as highlighted by the Administration’s release.
Although this NPRM does have some potential impacts to sourcing various materials for highway construction, the Buy America construction material exemptions achieved in IIJA, and affirmed by the Office of Management & Budget (OMB) this past summer, ensure asphalt production can continue as normal without any deviation or restriction. NAPA has worked tirelessly on ensuring our core product was protected and asphalt producers could rely upon the unique non-domestic sourcing challenges for aggregate and asphalt binder raw materials that impact some regional markets across the country.
NAPA has continued that work as the industry testified on Buy America implementation before the House Transportation & Infrastructure Committee this past month via testimony shared by Brian Enders of the Walbec Group. Brian’s opening statement illustrated how asphalt is produced and showcasing why this construction material exemption is so critical for roadway construction across the country.
Understanding some roadway material products and raw materials may not be covered by the aforementioned construction material exemption, please contact Nile Elam with the NAPA Government Affairs team on any questions you may have or applicability on certain products outside of asphalt production.
NAPA staff will continue to monitor and engage the Administration and members of Congress on Buy America requirements whenever necessary, will consider comments on the implications of the NPRM when the comment period opens.
