The White House released guidance clarifying rules surrounding the domestic procurement of materials used for projects funded under Infrastructure Law. It did not change fiber’s characterization as construction material, according to Broadband Breakfast.
The Build America Buy America (BABA) provision requires that manufactured products are American-sourced and that the cost of product components manufactured in the U.S. must meet or exceed 55 percent of the total cost.
BABA requirements apply to steel used in tower construction and iron products, manufactured products, construction materials, and aggregates and cement. The guidance specifies what material is classified as construction materials, which includes fiber optic cable and optic fiber as separate materials.
Some in the industry have called for fiber to be characterized as a manufactured material because of its combination of components, notes Broadband Breakfast. This definition of fiber will help avoid “the confusion and compliance costs that may have resulted from attempting to separately apply every construction material standard that applied to different components of fiber optic cable,” states the Office of Management and Budget (OMB) in the guidance. This is in response to industry concerns that BABA requirements will delay projects funded through the $42.5-billion BEAD program.
Inside Towers reported NTIA officials have discussed the possibility of limited waivers being available for these BEAD requirements. An NTIA official told Broadband Breakfast they’re expected to be released by the end of the summer.
The guidance restates the circumstances defined in statute under which a waiver of these requirements may be justified: public interest, unreasonable cost, and nonavailability.
The guidance says the waiver process recognizes concerns about supply chain availability and increased costs as potential rationales for the head of a federal agency to propose a waiver. Several telecom trade associations called for waivers ahead of broadband awards, citing concerns that providers will not be able to complete builds without outsourcing material.
“OMB notes that BABA provisions will be applied in a manner consistent with U.S. obligations under international agreements,” it read. “OMB has not modified its existing guidance on this topic.” All proposed waivers citing public interest must include a detailed written statement, it added.
Federal agencies may also offer further guidance on this topic for their specific programs, read the guidance, notes Broadband Breakfast. Only federal agencies are authorized to issue waivers, not OMB on behalf of those agencies, it clarified.
The United Steelworkers Union said it’s “pleased to see the Biden administration move forward with implementation of BABA… Strong BABA implementation is a critical step toward reshoring lost industrial capabilities, strengthening broken supply chains, and establishing the United States as a leader in the manufacturing of new technologies.”
By Leslie Stimson, Inside Towers Washington Bureau Chief
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