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1 [1] (April 7, 2017)

handle is hein.crs/govcfuy0001 and id is 1 raw text is: &~ ~ riE SE .$rCh &~ ~ ~ April 7, 2017 Buy America, Transportation Infrastructure, and American Manufacturing Congress over the years has passed several domestic content laws that aim to protect American manufacturing and manufacturing jobs. One is known as the Buy America Act, or more simply, Buy America. Statements by the Trump Administration about reinvigorating domestic manufacturing and reinvesting in infrastructure have stimulated renewed interest in Buy America. Buy America refers to several statutes and regulations that apply to federal funds used to support projects carried out by state and local government, mainly involving highways, public transportation, aviation, and intercity passenger rail, including Amtrak. Buy America also applies to certain federally funded water infrastructure projects. Buy America in transportation dates to the Surface Transportation Assistance Act of 1978 (STAA; P.L. 95-599), and is different from requirements under the Buy American Act of 1933, which applies to direct purchases by the federal government. Unless a nationwide or project-specific waiver is granted, Buy America generally requires the use of U.S.-made iron and steel and the domestic production and assembly of certain other manufactured goods. One of the main manufacturing industries this affects is rolling stock, which includes intercity passenger rail trains, public transportation rail cars and buses, and associated equipment. Buy America requirements differ in law and regulation according to the specific federal funding program and administering agency (Table 1). For example, for a public transportation bus or rail car purchase using federal funds to be Buy America compliant, the law requires domestic manufacture of 60% of its components, by value, and final assembly in the United States. For Amtrak rolling stock the threshold, set in regulation, is 50%. The Fixing America's Surface Transportation (FAST) Act (P.L. 114-94) increased the threshold for public transportation rolling stock to 65% for FY2018 and FY2019 and to 70% for FY2020 onward. For federally funded airport facility or equipment projects, the threshold for the value of domestic components and subcomponents is 60%. If a state or local government does not use federal funds on a project, the project is not subject to Buy America. Some states may have laws imposing similar requirements on state-funded purchases. Tra, s g \, u,? 'e's The United States is a signatory to international agreements that restrict discrimination against trading partners in government procurement. However, procurement by state and local governments is not covered by these agreements, even if federal funds are involved, unless the states or localities voluntarily agree to comply. Thus, where the federal government provides grants or loans to state and local authorities for transportation projects, it may attach Buy America sourcing restrictions to these funds without violating international obligations. The exclusion of subnational procurement from trade agreements has caused considerable tension with major U.S. trading partners. Table I. Buy America Requirements for Transportation Projects Agency Federal Transit Administration (FTA): 49 U.S.C. §5323(j); 49 C.F.R. Part 661 Federal Highway Administration (FHWA): 23 U.S.C. §313; 23 C.F.R. §635.410 Federal Railroad Administration (FRA): 49 U.S.C. Chapters 244, 246; §24405 Amtrak (National Railroad Passenger Corporation): 49 U.S.C. §24305 Federal Aviation Administration (FAA): 49 U.S.C. §50101 Domestic Content 100% U.S.-made requirement for iron, steel, and manufactured goods. Buy America does not apply to rolling stock if more than 60% of components, by value, are produced domestically and final assembly is in the United States. Threshold rises to 65% for FY2018 and FY2019 and 70% for FY2020 onward. 100% U.S.-made requirement for iron, steel, and manufactured goods made predominantly of steel and iron. 100% U.S.-made requirement for iron, steel, and manufactured goods. All manufactured and unmanufactured goods must be substantially domestic; manufactured products must have undergone final assembly in the United States and have 50% or more domestic components by value. All steel and manufactured goods must be produced in the United States. Preference does not apply if more than 60%, by value, of all components and subcomponents of the facility or equipment are produced domestically and final assembly is in the United States. Source: CRS, adapted from U.S. Department of Transportation, Buy America Provisions Side-by-Side. .O 'T gognpo ' -p\qm ggmm g , q 'S a X 11L1\L\N,\1kJ\W,

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