I 

115TH CONGRESS 

1ST SESSION H. R. 904 

To amend chapter 83 of title 41, United States Code, to increase the requirement for American-made content, to strengthen the waiver provisions, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 7, 2017 

Mr. LIPINSKI (for himself, Mr. JOYCE of Ohio, Ms. SHEA-PORTER, Mr. MICHAEL F. DOYLE of Pennsylvania, Mr. GARAMENDI, Mr. NOLAN, Ms. 

NORTON, Mr. RYAN of Ohio, Mrs. BUSTOS, Ms. BROWNLEY of California, 

Mr. CARSON of Indiana, and Mr. JONES) introduced the following bill; 

which was referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Financial Services, Transportation and Infrastructure, Energy and Commerce, Agriculture, Natural 

Resources, and Homeland Security, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To amend chapter 83 of title 41, United States Code, to 

increase the requirement for American-made content, to 

strengthen the waiver provisions, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Buy American Improvement Act of 2017’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—MATTERS RELATING TO BUY AMERICAN ACT 

Sec. 101. Regulations relating to Buy American Act. 

Sec. 102. Amendments relating to Buy American Act. 

Sec. 103. Report by Comptroller General. 

Sec. 104. Border protection infrastructure. 

Sec. 105. United States obligations under international agreements. 

Sec. 106. Definitions. 

TITLE II—BUY AMERICA IMPROVEMENT 

Sec. 201. Annual report. 

Sec. 202. Component requirements and verification. 

Sec. 203. FHWA domestic content standards improvement. 

Sec. 204. Rail Buy America modernization. 

Sec. 205. FAA Buy America modernization. 

Sec. 206. Application of Buy America requirements to projects financed with 

passenger facility charges. 

Sec. 207. Notice and comment requirement for waiver petitions. 

Sec. 208. Drinking water state revolving funds. 

Sec. 209. Rural Utilities Service Buy American modernization. 

Sec. 210. Community development block grant Buy America modernization. 

Sec. 211. Rural Water Supply Program. 

Sec. 212. Economic development administration Buy American modernization. 

Sec. 213. Rail loan and loan guarantee Buy America requirements. 

3 TITLE I—MATTERS RELATING 

4 TO BUY AMERICAN ACT 

5 SEC. 101. REGULATIONS RELATING TO BUY AMERICAN ACT. 

6 (a) IN GENERAL.—Not later than 1 year after the 

7 date of the enactment of this Act, the Administrator for 

8 Federal Procurement Policy, in consultation with the Fed9 eral Acquisition Regulatory Council, shall promulgate reg10 ulations to standardize and simplify how Federal agencies 

11 comply with, report on, and enforce chapter 83 of title 

12 41, United States Code (commonly known as the Buy 


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1 American Act). The regulations shall include, at a min2 imum, the following: 

3 (1) Guidelines for Federal agencies to deter4 mine, for the purposes of applying sections 8302(a) 

5 and 8303(b)(3) of such title, the circumstances 

6 under which the acquisition of articles, materials, or 

7 supplies mined, produced, or manufactured in the 

8 United States is inconsistent with the public inter9 est. 

10 (2) Uniform procedures for each Federal agen11 cy to make publicly available, in an easily identifi12 able location on the website of the agency, and with13 in the following time periods, the following informa14 tion: 

15 (A) A description of the circumstances in 

16 which the head of the agency may waive the re17 quirements of chapter 83 of such title. 

18 (B) Each waiver made by the head of the 

19 agency within 30 days after making such waiv20 er, including a detailed justification for the 

21 waiver. 

22 (3) Rules for Federal agencies to ensure that a 

23 project is not disaggregated for purposes of avoiding 

24 the applicability of the requirements under chapter 

25 83 of such title. 


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1 (4) Procedures to investigate occurrences when 

2 the head of a Federal agency improperly waives the 

3 requirements of chapter 83 of such title. 

4 (5) Rules for the Administrator to evaluate the 

5 percentage of domestic content in a manufactured 

6 end product, including providing a definition for the 

7 term ‘‘manufactured end product’’. 

8 (b) GUIDELINES RELATING TO INCONSISTENCY

9 WITH PUBLIC INTEREST.—With respect to the guidelines 

10 developed under subsection (a)(1), the Administrator shall 

11 consider any significant decrease in employment in the 

12 United States resulting from a waiver to be inconsistent 

13 with the public interest and seek to minimize waivers that 

14 would result in a decrease in employment in the United 

15 States in both the short and long term. 

16 (c) RULES RELATING TO DOMESTIC CONTENT.— 

17 With respect to the rules developed under subsection 

18 (a)(5), the Administrator may not treat components of 

19 foreign origin of the same class or kind as those that are 

20 not mined, produced, or manufactured in the United 

21 States in sufficient and reasonably available commercial 

22 quantities of a satisfactory quality as domestic content. 

23 With respect to providing a definition for the term ‘‘manu24 factured end product’’, the Administrator shall consider 

25 previous judicial rulings on the question of— 


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1 (1) whether the product is completed in the 

2 final form required for use by the Federal Govern3 ment; and 

4 (2) whether separate manufacturing stages or 

5 continuous processes constitute ‘‘manufacturing’’. 

6 SEC. 102. AMENDMENTS RELATING TO BUY AMERICAN ACT. 

7 (a) SPECIAL RULES RELATING TO AMERICAN MATE8 RIALS REQUIRED FOR PUBLIC USE.—Section 8302 of title 

9 41, United States Code, is amended by adding at the end 

10 the following: 

11 ‘‘(c) SPECIAL RULES.—The following rules apply in 

12 carrying out the provisions of subsection (a): 

13 ‘‘(1) CALCULATION OF DOMESTIC AND NON-DO14 MESTIC OFFERS.— 

15 ‘‘(A) EXCLUSION OF START-UP COSTS IN

16 CALCULATING COST OF OFFER.—When com17 paring offers between domestic entities and 

18 non-domestic entities, costs related to the start19 up of a project shall be excluded from a domes20 tic offer. 

21 ‘‘(B) UNREASONABLE COST DETERMINA22 TION.— 

23 ‘‘(i) IN GENERAL.—The head of a 

24 Federal agency may not determine the cost 

25 of acquiring articles, materials, or supplies 


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1 mined, produced, or manufactured in the 

2 United States to be unreasonable under 

3 subsection (a)(1), unless the acquisition of 

4 such articles, materials, or supplies would 

5 increase the cost of the overall project by 

6 more than 25 percent. 

7 ‘‘(ii) RULE OF CONSTRUCTION.—With 

8 respect to the percentage increase required 

9 for a determination of unreasonable cost 

10 applicable to projects under Department of 

11 Defense contracts as of the date of the en12 actment of the Buy American Improve13 ment Act of 2017, nothing in this subpara14 graph may be construed as reducing such 

15 percentage increase. 

16 ‘‘(2) USE OUTSIDE THE UNITED STATES.— 

17 ‘‘(A) IN GENERAL.—Notwithstanding the 

18 exception described in subsection (a)(2)(A), 

19 subsection (a)(1) shall apply to articles, mate20 rials, or supplies for use outside the United 

21 States if such articles, materials, or supplies are 

22 not needed on an urgent basis or are acquired 

23 on a regular basis. 

24 ‘‘(B) COST ANALYSIS.—In any case in 

25 which articles, materials, or supplies are to be 


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1 acquired for use outside the United States and 

2 are not needed on an urgent basis or are ac3 quired on a regular basis, before entering into 

4 a contract, an analysis shall be made of the dif5 ference in the cost of acquiring such articles, 

6 materials, or supplies from a company mining, 

7 producing, or manufacturing the articles, mate8 rials, or supplies in the United States (includ9 ing the cost of shipping) and the cost of acquir10 ing such articles, materials, or supplies from a 

11 company mining, producing, or manufacturing 

12 the articles, materials, or supplies outside the 

13 United States (including the cost of shipping). 

14 ‘‘(3) DOMESTIC AVAILABILITY.—The head of a 

15 Federal agency may not determine that an article, 

16 material, or supply is not mined, produced, or manu17 factured in the United States in sufficient and rea18 sonably available commercial quantities and of a sat19 isfactory quality under subsection (a)(1), unless the 

20 head of the agency first determines that— 

21 ‘‘(A) domestic production cannot be initi22 ated without significantly delaying the project 

23 for which the article, material, or supply is to 

24 be acquired; and 


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1 ‘‘(B) a substitutable article, material, or 

2 supply is not mined, produced, or manufactured 

3 in the United States in sufficient and reason4 ably available commercial quantities and of a 

5 satisfactory quality.’’. 

6 (b) REPORTS.—Subsection (b) of section 8302 of title 

7 41, United States Code, is amended to read as follows: 

8 ‘‘(b) REPORTS.— 

9 ‘‘(1) IN GENERAL.—Not later than 180 days 

10 after the end of each of fiscal years 2018 through 

11 2022, the Director of the Office of Management and 

12 Budget, in consultation with the Administrator of 

13 General Services, shall submit to the Committee on 

14 Oversight and Government Reform of the House of 

15 Representatives and the Committee on Homeland 

16 Security and Governmental Affairs of the Senate a 

17 report on the total amount of acquisitions made by 

18 Federal agencies in the relevant fiscal year of arti19 cles, materials, or supplies acquired from entities 

20 that mine, produce, or manufacture the articles, ma21 terials, or supplies outside the United States. 

22 ‘‘(2) ADDITIONAL CONTENT.—Each report re23 quired under paragraph (1) shall separately include, 

24 for the fiscal year covered by the report— 


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1 ‘‘(A) the dollar value of any articles, mate2 rials, or supplies that were mined, produced, or 

3 manufactured outside the United States, in the 

4 aggregate and by country; 

5 ‘‘(B) an itemized list of all waivers made 

6 under this chapter with respect to articles, ma7 terials, or supplies and the country where such 

8 articles, materials, or supplies were mined, pro9 duced, or manufactured; 

10 ‘‘(C) if any articles, materials, or supplies 

11 were acquired from entities that mine, produce, 

12 or manufacture such articles, materials, or sup13 plies outside the United States due to an excep14 tion (that is not the micro-purchase threshold 

15 exception described under subsection (a)(2)(C)), 

16 the specific exception that was used to purchase 

17 such articles, materials, or supplies; 

18 ‘‘(D) if any articles, materials, or supplies 

19 were acquired from entities that mine, produce, 

20 or manufacture such articles, materials, or sup21 plies outside the United States pursuant to a 

22 reciprocal defense procurement memorandum of 

23 understanding (as described in section 8304), 

24 or a trade agreement or least developed country 

25 designation described in subpart 25.400 of the 


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1 Federal Acquisition Regulation, a citation to 

2 such memorandum of understanding, trade 

3 agreement, or designation; and 

4 ‘‘(E) a summary of— 

5 ‘‘(i) the total procurement funds ex6 pended on articles, materials, and supplies 

7 mined, produced, or manufactured inside 

8 the United States; 

9 ‘‘(ii) the total procurement funds ex10 pended on articles, materials, and supplies 

11 mined, produced, or manufactured outside 

12 the United States; and 

13 ‘‘(iii) the total procurement funds ex14 pended on articles, materials, and supplies 

15 mined, produced, or manufactured outside 

16 the United States per country that mined, 

17 produced, or manufactured such articles, 

18 materials, and supplies. 

19 ‘‘(3) PUBLIC AVAILABILITY.—Not later than 

20 180 days after the end of each relevant fiscal year, 

21 the Director of the Office of Management and Budg22 et shall make the relevant report required under 

23 paragraph (1) publicly available on a website. 

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1 tions made by an agency, or component of an agen2 cy, that is an element of the intelligence community 

3 as specified in, or designated under, section 3 of the 

4 National Security Act of 1947 (50 U.S.C. 3003).’’. 

5 (c) DEFINITIONS.—Section 8301 of title 41, United 

6 States Code, is amended by adding at the end the fol7 lowing: 

8 ‘‘(3) FEDERAL AGENCY.—The term ‘Federal 

9 agency’ has the meaning given the term ‘executive 

10 agency’ in section 133 of title 41, United States 

11 Code. 

12 ‘‘(4) SUBSTANTIALLY ALL.—The term ‘substan13 tially all’, with respect to articles, materials, or sup14 plies mined, produced, or manufactured in the 

15 United States, means that the cost of the domestic 

16 components of such articles, materials, or supplies 

17 exceeds 75 percent of the total cost of all compo18 nents of such articles, materials, or supplies. 

19 ‘‘(5) WAIVER.—The term ‘waiver’, with respect 

20 to the acquisition of an article, material, or supply 

21 for public use, means the inapplicability of this 

22 chapter to the acquisition by reason of any of the 

23 following determinations under section 8302(a)(1) or 

24 8303(b)(3): 


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1 ‘‘(A) A determination by the head of the 

2 Federal agency concerned that the acquisition 

3 is inconsistent with the public interest. 

4 ‘‘(B) A determination by the head of the 

5 Federal agency concerned that the cost of the 

6 acquisition is unreasonable. 

7 ‘‘(C) A determination by the head of the 

8 Federal agency concerned that the article, ma9 terial, or supply is not mined, produced, or 

10 manufactured in the United States in sufficient 

11 and reasonably available commercial quantities 

12 of a satisfactory quality.’’. 

13 (d) CONFORMING AMENDMENTS.—Title 41, United 

14 States Code, is amended— 

15 (1) in section 8302— 

16 (A) in paragraph (1) of subsection (a)— 

17 (i) by striking ‘‘department or inde18 pendent establishment’’ and inserting 

19 ‘‘Federal agency’’; and 

20 (ii) by striking ‘‘their acquisition to be 

21 inconsistent with the public interest or 

22 their cost to be unreasonable’’ and insert23 ing ‘‘their acquisition to be inconsistent 

24 with the public interest, their cost to be 

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1 rials, or supplies of the class or kind to be 

2 used, or the articles, materials, or supplies 

3 from which they are manufactured, are not 

4 mined, produced, or manufactured in the 

5 United States in sufficient and reasonably 

6 available commercial quantities and of a 

7 satisfactory quality’’; and 

8 (B) in paragraph (2) of subsection (a)— 

9 (i) in subparagraph (A), by inserting 

10 ‘‘subject to subsection (c)(2)(A),’’ before 

11 ‘‘to articles, materials, or supplies’’; and 

12 (ii) by amending subparagraph (B) to 

13 read as follows: 

14 ‘‘(B) to any articles, materials, or supplies 

15 procured pursuant to a reciprocal defense pro16 curement memorandum of understanding (as 

17 described in section 8304), or a trade agree18 ment or least developed country designation de19 scribed in subpart 25.400 of the Federal Acqui20 sition Regulation; and’’; and 

21 (2) in section 8303— 

22 (A) in subsection (b)— 

23 (i) by striking ‘‘department or inde24 pendent establishment’’ each place it ap25 pears and inserting ‘‘Federal agency’’; 


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1 (ii) by amending subparagraph (B) of 

2 paragraph (1) to read as follows: 

3 ‘‘(B) to any articles, materials, or supplies 

4 procured pursuant to a reciprocal defense pro5 curement memorandum of understanding (as 

6 described in section 8304), or a trade agree7 ment or least developed country designation de8 scribed in subpart 25.400 of the Federal Acqui9 sition Regulation; and’’; and 

10 (iii) in paragraph (3)— 

11 (I) in the heading, by striking 

12 ‘‘INCONSISTENT WITH PUBLIC INTER13 EST’’ and inserting ‘‘WAIVER AU14 THORITY’’; and 

15 (II) by striking ‘‘their purchase 

16 to be inconsistent with the public in17 terest or their cost to be unreason18 able’’ and inserting ‘‘their acquisition 

19 to be inconsistent with the public in20 terest, their cost to be unreasonable, 

21 or that the articles, materials, or sup22 plies of the class or kind to be used, 

23 or the articles, materials, or supplies 

24 from which they are manufactured, 

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1 tured in the United States in suffi2 cient and reasonably available com3 mercial quantities and of a satisfac4 tory quality’’; and 

5 (B) in subsection (c), by striking ‘‘depart6 ment, bureau, agency, or independent establish7 ment’’ each place it appears and inserting 

8 ‘‘Federal agency’’. 

9 (e) EXCLUSION FROM INFLATION ADJUSTMENT OF

10 ACQUISITION-RELATED DOLLAR THRESHOLDS.—Sub11 paragraph (A) of section 1908(b)(2) of title 41, United 

12 States Code, is amended by striking ‘‘chapter 67’’ and in13 serting ‘‘chapters 67 and 83’’. 

14 SEC. 103. REPORT BY COMPTROLLER GENERAL. 

15 Not later than 1 year after the date of the enactment 

16 of this Act, the Comptroller General of the United States 

17 shall report to Congress on the extent to which, in each 

18 of fiscal years 2011, 2012, 2013, 2014, 2015, articles, ma19 terials, or supplies acquired by the Federal Government 

20 were mined, produced, or manufactured outside the 

21 United States. Such report shall include for each Federal 

22 agency the following: 

23 (1) A summary of total procurement funds ex24 pended on articles, materials, and supplies mined, 

25 produced, or manufactured— 


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1 (A) inside the United States; 

2 (B) outside the United States; and 

3 (C) outside the United States— 

4 (i) under each category of waiver 

5 under chapter 83 of title 41, United States 

6 Code; 

7 (ii) under each category of exception 

8 under such chapter; and 

9 (iii) for each country that mined, pro10 duced, or manufactured such articles, ma11 terials, and supplies. 

12 (2) An analysis of the impact of eliminating the 

13 exception for acquisitions for information technology 

14 (as defined in section 11101 of title 40, United 

15 States Code) that is a commercial item (as defined 

16 in section 103 of title 41, United States Code). 

17 SEC. 104. BORDER PROTECTION INFRASTRUCTURE. 

18 Paragraph (1) of section 604(b) of the American Re19 covery and Reinvestment Act of 2009 (Public Law 111– 

20 5; 6 U.S.C. 453b(b)(1)) is amended— 

21 (1) in subparagraph (C), by striking ‘‘; or’’ and 

22 inserting a semicolon; 

23 (2) in subparagraph (D), by striking the period 

24 at the end and inserting ‘‘; or’’; and 

25 (3) by adding at the end the following: 


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1 ‘‘(E) materials and supplies used in the 

2 construction of border protection barriers and 

3 roads constructed under section 102 of the Ille4 gal Immigration and Reform and Immigrant 

5 Responsibility Act of 1996 (division C of Public 

6 Law 104–208; 8 U.S.C. 1103 note).’’. 

7 SEC. 105. UNITED STATES OBLIGATIONS UNDER INTER8 NATIONAL AGREEMENTS. 

9 This Act, and the amendments made by this Act, 

10 shall be applied in a manner consistent with United States 

11 obligations under international agreements. 

12 SEC. 106. DEFINITIONS. 

13 In this title: 

14 (1) FEDERAL AGENCY.—The term ‘‘Federal 

15 agency’’ has the meaning given the term ‘‘executive 

16 agency’’ in section 133 of title 41, United States 

17 Code. 

18 (2) WAIVER.—The term ‘‘waiver’’, with respect 

19 to the acquisition of an article, material, or supply 

20 for public use, means the inapplicability of chapter 

21 83 of title 41, United States Code, to the acquisition 

22 by reason of any of the following determinations 

23 under section 8302(a)(1) or 8303(b)(3) of such title: 


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1 (A) A determination by the head of the 

2 Federal agency concerned that the acquisition 

3 is inconsistent with the public interest. 

4 (B) A determination by the head of the 

5 Federal agency concerned that the cost of the 

6 acquisition is unreasonable. 

7 (C) A determination by the head of the 

8 Federal agency concerned that the article, ma9 terial, or supply is not mined, produced, or 

10 manufactured in the United States in sufficient 

11 and reasonably available commercial quantities 

12 of a satisfactory quality. 

13 TITLE II—BUY AMERICA 

14 IMPROVEMENT 

15 SEC. 201. ANNUAL REPORT. 

16 Not later than 180 days after the end of each fiscal 

17 year, the Secretary of Transportation shall submit a re18 port to the Committee on Transportation and Infrastruc19 ture in the House of Representatives and the Committee 

20 on Commerce, Science, and Transportation in the Senate, 

21 and publish on the Department’s website, that— 

22 (1) itemizes all waivers regarding domestic con23 tent granted by the Department within that fiscal 

24 year and provides the justification for each waiver; 


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1 (2) identifies the country of origin and product 

2 specifications for goods used in construction pursu3 ant to each waiver granted; and 

4 (3) summarizes the total value of acquisitions 

5 made under each waiver. 

6 SEC. 202. COMPONENT REQUIREMENTS AND 

7 VERIFICATION. 

8 (a) AUDITING AND CERTIFICATION MODERNIZA9 TION.— 

10 (1) Not later than 6 months after the date of 

11 enactment of this Act, the Secretary of Transpor12 tation shall— 

13 (A) initiate a rulemaking to develop audit 

14 procedures for the Federal Transit Administra15 tion to review offeror and recipient compliance 

16 with domestic content provisions; and 

17 (B) issue guidance on best practices for 

18 pre-award and post-delivery audits by recipients 

19 under section 5323(m) of title 49, United 

20 States Code. 

21 (2) In developing the guidance required under 

22 paragraph (1)(B), the Secretary shall consider best 

23 practices for— 

24 (A) proper and sufficient documentation 

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1 tion 5323(m) of such title to support certifi2 cation of compliance; 

3 (B) proper and sufficient documentation 

4 requests from bidders by recipients under sec5 tion 5323(m) of such title to support pre-award 

6 and post-delivery audits; 

7 (C) determining the timing and require8 ments for post-delivery audit; and 

9 (D) verifying the origin of supplier compo10 nents and subcomponents. 

11 (b) COMPONENT GUIDANCE.—Not later than 6 

12 months after the date of enactment of this Act, the Sec13 retary shall initiate a rulemaking to further develop stand14 ards under section 5323(j) of title 49, United States Code, 

15 for measuring the percentage value of a component rel16 ative to the entire procurement. 

17 SEC. 203. FHWA DOMESTIC CONTENT STANDARDS IM18 PROVEMENT. 

19 (a) CMAQ LOOPHOLE.—Section 313(b) of title 23, 

20 United States Code, is amended— 

21 (1) by redesignating paragraph (3) as para22 graph (4); 

23 (2) in paragraph (2) by striking ‘‘or’’; and 

24 (3) by inserting after paragraph (2) the fol25 lowing: 


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1 ‘‘(3) that when procuring rolling stock under 

2 this chapter— 

3 ‘‘(A) the cost of components and sub4 components produced in the United States is 

5 more than 60 percent of the cost of all compo6 nents of the rolling stock; and 

7 ‘‘(B) final assembly of the rolling stock has 

8 occurred in the United States; or’’. 

9 (b) RULE REEVALUATION.—Not later than 1 year 

10 after the date of enactment of this Act, the Secretary of 

11 Transportation shall review the regulations found in sec12 tion 635.410 of title 23, Code of Federal Regulations, or 

13 any similar successor regulations, to determine whether 

14 manufactured products other than those containing steel 

15 and iron should be considered for the purposes of domestic 

16 content preferences. 

17 SEC. 204. RAIL BUY AMERICA MODERNIZATION. 

18 Section 24305(f) of title 49, United States Code, is 

19 amended by adding at the end the following: 

20 ‘‘(5) Before applying for an exemption under para21 graph (4), Amtrak shall enter into an arrangement with 

22 the National Institute of Standards and Technology to 

23 conduct a supplier scouting process for domestic suppliers 

24 that can provide the compliant articles, materials, or sup25 plies for which an exemption will be sought. Upon concluVerDate Sep 11 2014 00:30 Feb 15, 2017 Jkt 069200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H904.IH H904

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1 sion of the supplier scouting process for a particular arti2 cle, material, or supply, Amtrak shall submit to the Sec3 retary a scouting report along with the exemption applica4 tion. The Secretary shall consider the results of the sup5 plier scouting process before making a decision on Am6 trak’s exemption application. If the Secretary decides to 

7 grant the exemption, the Secretary shall publish in the 

8 Federal Register a summary of the scouting report and 

9 the reasons for the Secretary’s decision.’’. 

10 SEC. 205. FAA BUY AMERICA MODERNIZATION. 

11 Section 50101 of title 49, United States Code, is 

12 amended by adding at the end the following: 

13 ‘‘(d) SUPPLIER SCOUTING.—Before issuing a waiver 

14 under subsection (b), the Secretary shall— 

15 ‘‘(1) consult with the National Institute of 

16 Standards and Technology; and 

17 ‘‘(2) begin a supplier scouting process for do18 mestic suppliers that can provide for those compliant 

19 products for which a waiver will be sought. 

20 ‘‘(e) PUBLICATION REQUIRED.—Upon conclusion of 

21 the supplier scouting process required under subsection 

22 (d)(2) for a particular component, material, or subcompo23 nent, the Secretary shall make the results of the supplier 

24 scouting available to the public.’’. 


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1 SEC. 206. APPLICATION OF BUY AMERICA REQUIREMENTS 

2 TO PROJECTS FINANCED WITH PASSENGER 

3 FACILITY CHARGES. 

4 (a) IN GENERAL.—Section 50101(a) of title 49, 

5 United States Code, is amended by inserting ‘‘, and may 

6 approve a project under section 40117,’’ before ‘‘only if 

7 steel’’. 

8 (b) APPLICABILITY.—The amendment made by sub9 section (a) shall apply to an application submitted pursu10 ant to section 40177(c) of title 49, United States Code, 

11 after the date of enactment of this Act. 

12 SEC. 207. NOTICE AND COMMENT REQUIREMENT FOR 

13 WAIVER PETITIONS. 

14 (a) IN GENERAL.—The Secretary of Transportation 

15 shall require the head of a Federal agency, after receiving 

16 a request for a waiver of any applicable domestic content 

17 requirement under title 49, to publish the request for a 

18 waiver in the Federal Register within 15 days after receiv19 ing such request. 

20 (b) NOTICE AND COMMENT.—A waiver under this 

21 section may not be issued before the expiration of the 15- 

22 day period beginning on the date on which the request 

23 for waiver is published pursuant to subsection (a) to pro24 vide the public an opportunity for notice and comment. 

25 (c) PUBLICATION OF WAIVER.—If the Secretary or 

26 head of a Federal Agency issues a waiver, the Secretary 


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1 or head shall publish in the Federal Register not later 

2 than 15 days after issuing such a waiver a detailed jus3 tification for the waiver that addresses any public com4 ments received under subsection (b). 

5 SEC. 208. DRINKING WATER STATE REVOLVING FUNDS. 

6 Section 1452(a)(4) of the Safe Drinking Water Act 

7 (42 U.S.C. 300j–12(a)(4)) is amended— 

8 (1) by amending subparagraph (A) to read as 

9 follows: 

10 ‘‘(A) IN GENERAL.—Funds made available 

11 from a State drinking water treatment revolv12 ing loan fund established under this section 

13 may not be used for a project for the construc14 tion, alteration, maintenance, or repair of col15 lection, treatment, storage, and distribution fa16 cilities, including publicly and privately owned 

17 pipes or other constructed conveyances, unless 

18 all of the iron and steel products used in the 

19 project are produced in the United States.’’; 

20 and 

21 (2) by amending subparagraph (D) to read as 

22 follows: 

23 ‘‘(D) PUBLIC NOTICE; WRITTEN JUS24 TIFICATION.— 


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1 ‘‘(i) PUBLIC NOTICE.—If the Adminis2 trator receives a request for a waiver under 

3 this paragraph, the Administrator shall— 

4 ‘‘(I) make available to the public 

5 on an informal basis, including on the 

6 public website of the Administrator— 

7 ‘‘(aa) a copy of the request; 

8 and 

9 ‘‘(bb) any information avail10 able to the Administrator regard11 ing the request; and 

12 ‘‘(II) provide notice of, and op13 portunity for public comment on, the 

14 request for a period of not less than 

15 15 days before making a finding 

16 under subparagraph (C). 

17 ‘‘(ii) WRITTEN JUSTIFICATION.—If, 

18 after the period provided under clause (i), 

19 the Administrator makes a finding under 

20 subparagraph (C), the Administrator shall 

21 publish in the Federal Register a written 

22 justification as to why subparagraph (A) is 

23 being waived.’’. 


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1 SEC. 209. RURAL UTILITIES SERVICE BUY AMERICAN MOD2 ERNIZATION. 

3 Section 232 of the Department of Agriculture Reor4 ganization Act of 1994 (7 U.S.C. 6942) is amended by 

5 adding at the end the following new subsection: 

6 ‘‘(d) DOMESTIC SOURCE REQUIREMENT FOR STEEL, 

7 IRON, AND MANUFACTURED GOODS USED IN RURAL

8 UTILITIES SERVICE SUPPORTED PROJECTS.— 

9 ‘‘(1) BUY AMERICAN REQUIRED.—Notwith10 standing any other provision of law, funds made 

11 available under a program carried out by the Sec12 retary through the Rural Utilities Service, including 

13 a program specified in subsection (c), may not be 

14 used, in whole or in part, for a project utilizing steel, 

15 iron, or manufactured goods unless the steel, iron, 

16 and manufactured goods are produced in the United 

17 States. 

18 ‘‘(2) SCOPE.—The requirement specified in 

19 paragraph (1) applies to each contract for a project 

20 referred to in such paragraph, regardless of the 

21 funding source of the contract, if at least one con22 tract for the project is funded with amounts made 

23 available under a program referred to in such para24 graph. 

25 ‘‘(3) WAIVER AUTHORITY; CONDITIONS.— 


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1 ‘‘(A) IN GENERAL.—The Administrator of 

2 the Rural Utilities Service may grant a waiver 

3 from the requirements of paragraph (1) or (2) 

4 for a project referred to in paragraph (1) only 

5 if the Administrator finds that— 

6 ‘‘(i) applying the requirement in such 

7 paragraph would be inconsistent with the 

8 public interest, as determined in accord9 ance with the regulations required under 

10 subparagraph (B); 

11 ‘‘(ii) the steel, iron, or manufactured 

12 goods required for the project are not pro13 duced in the United States— 

14 ‘‘(I) in sufficient and reasonably 

15 available quantities; or 

16 ‘‘(II) to a satisfactory quality; or 

17 ‘‘(iii) the use of steel, iron, and manu18 factured goods produced in the United 

19 States for a project will increase the total 

20 cost of the project by more than 25 per21 cent. 

22 ‘‘(B) PUBLIC INTEREST CRITERIA.—Not 

23 later than 1 year after the date of enactment of 

24 the Buy American Improvement Act of 2017, 

25 the Administrator shall issue regulations estabVerDate Sep 11 2014 00:30 Feb 15, 2017 Jkt 069200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H904.IH H904

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1 lishing the criteria that the Administrator shall 

2 use to determine whether the application of 

3 paragraph (1) or (2) is inconsistent with the 

4 public interest for purposes of subparagraph 

5 (A)(i). 

6 ‘‘(C) REQUEST FOR WAIVER.—A recipient 

7 of assistance under a program referred to in 

8 paragraph (1) seeking a waiver under subpara9 graph (A) shall submit to the Administrator a 

10 request for the waiver in such form and con11 taining such information as the Administrator 

12 may require. 

13 ‘‘(D) NOTICE AND COMMENT FOR WAIVER

14 REQUESTS.—Within 15 days after the date on 

15 which the Administrator receives a request for 

16 a waiver under subparagraph (C), the Adminis17 trator shall publish in the Federal Register no18 tice of the request for a waiver. The Adminis19 trator may not grant the waiver before the expi20 ration of the 15-day period beginning on the 

21 date of the publication of the notice to provide 

22 the public an opportunity for notice and com23 ment. 

24 ‘‘(E) NOTICE OF WAIVERS.—Within 15 

25 days after granting a waiver request under this 


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1 paragraph, the Administrator shall publish in 

2 the Federal Register notice of the waiver, in3 cluding— 

4 ‘‘(i) the justification for the waiver; 

5 ‘‘(ii) the Administrator’s response to 

6 any public comments received under sub7 paragraph (D) with respect to the request 

8 for that waiver; and 

9 ‘‘(iii) an employment impact analysis 

10 of the cumulative effect of the waiver, to11 gether with all other waivers previously 

12 granted under this paragraph during the 

13 preceding 1-year period, on manufacturing 

14 employment in the United States. 

15 ‘‘(4) MANUFACTURED GOODS DEFINED.—In 

16 this subsection, the term ‘manufactured goods’ has 

17 the meaning given that term pursuant to the regula18 tions required by section 106 of the Buy American 

19 Improvement Act of 2017.’’. 

20 SEC. 210. COMMUNITY DEVELOPMENT BLOCK GRANT BUY 

21 AMERICA MODERNIZATION. 

22 Section 105 of the Housing and Community Develop23 ment Act of 1974 (42 U.S.C. 5305) is amended by adding 

24 at the end the following new subsection: 

25 ‘‘(i) BUY AMERICA.— 


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1 ‘‘(1) DOMESTIC SOURCE REQUIREMENT FOR

2 STEEL, IRON, AND MANUFACTURED GOODS.—Not3 withstanding any other provision of law, funds made 

4 available from a grant under section 106 may not be 

5 used, in whole or in part, for any project or activity 

6 unless all of the steel, iron, and manufactured goods 

7 used for the project or activity are produced in the 

8 United States. 

9 ‘‘(2) SCOPE.—The requirement specified in 

10 paragraph (1) shall apply to all contracts for any 

11 project or activity carried out in whole or in part 

12 with funds made available from a grant under sec13 tion 106, regardless of the funding source of such 

14 contracts, if at least one contract for such project or 

15 activity is funded with amounts made available from 

16 a grant under section 106. 

17 ‘‘(3) WAIVER AUTHORITY; CONDITIONS.— 

18 ‘‘(A) AUTHORITY.—The Secretary may 

19 grant a waiver from the requirements of para20 graph (1) or (2) for a project or activity, but 

21 only if the Secretary finds that— 

22 ‘‘(i) applying such paragraph would be 

23 inconsistent with the public interest, as de24 termined in accordance with the regula25 tions required under subparagraph (B); 


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1 ‘‘(ii) the steel, iron, or manufactured 

2 goods required for a project or activity are 

3 not produced in the United States— 

4 ‘‘(I) in sufficient and reasonably 

5 available quantities; or 

6 ‘‘(II) to a satisfactory quality; or 

7 ‘‘(iii) the use of steel, iron, and manu8 factured goods produced in the United 

9 States for a project or activity will increase 

10 the total cost of the project or activity by 

11 more than 25 percent. 

12 ‘‘(B) PUBLIC INTEREST CRITERIA.—Not 

13 later than 1 year after the date of the enact14 ment of this subsection, the Secretary shall 

15 issue regulations establishing the criteria that 

16 the Secretary shall use to determine whether 

17 the application of paragraph (1) or (2) is incon18 sistent with the public interest for purposes of 

19 subparagraph (A)(i). 

20 ‘‘(C) REQUESTS FOR WAIVERS.—A recipi21 ent of assistance under section 106 seeking a 

22 waiver under subparagraph (A) shall submit to 

23 the Secretary a request for the waiver in such 

24 form and containing such information as the 

25 Secretary may require. The Secretary shall pubVerDate Sep 11 2014 00:30 Feb 15, 2017 Jkt 069200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H904.IH H904

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1 lish the request for a waiver in the Federal 

2 Register within 15 days after receiving such re3 quest. 

4 ‘‘(D) NOTICE AND COMMENT FOR WAIVER

5 REQUESTS.—The Secretary may not issue a 

6 waiver before the expiration of the 15-day pe7 riod beginning on the date of the publication of 

8 the notice to provide the public an opportunity 

9 for notice and comment. 

10 ‘‘(E) NOTICE OF WAIVERS.—Within 15 

11 days after granting a waiver request under this 

12 paragraph, the Secretary shall publish in the 

13 Federal Register notice of the waiver, includ14 ing— 

15 ‘‘(i) a detailed justification for the 

16 waiver; 

17 ‘‘(ii) the Secretary’s response to any 

18 public comments received under subpara19 graph (D) with respect to the request for 

20 such waiver; and 

21 ‘‘(iii) an employment impact analysis 

22 of the cumulative effect of the waiver, to23 gether with all other waivers previously 

24 granted under this paragraph during the 


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1 preceding 1-year period, on manufacturing 

2 employment in the United States. 

3 ‘‘(4) MANUFACTURED GOODS DEFINED.—In 

4 this subsection, the term ‘manufactured goods’ has 

5 the meaning given that term pursuant to the regula6 tions required by section 106 of the Buy American 

7 Improvement Act of 2017.’’. 

8 SEC. 211. RURAL WATER SUPPLY PROGRAM. 

9 (a) BUY AMERICA ACT REQUIREMENTS.—The Rural 

10 Water Supply Act of 2006 (43 U.S.C. 2401 et seq.) is 

11 amended by adding at the end the following: 

12 ‘‘SEC. 111. BUY AMERICA. 

13 ‘‘(a) DOMESTIC SOURCE REQUIREMENT FOR STEEL, 

14 IRON, AND MANUFACTURED GOODS.— 

15 ‘‘(1) IN GENERAL.—Notwithstanding any other 

16 provision of law, funds made available under this 

17 title may not be used, in whole or in part, for a 

18 project for the construction of treatment works un19 less the steel, iron, and manufactured goods used for 

20 the project are produced in the United States. 

21 ‘‘(2) SCOPE.—The requirements of this section 

22 apply to all contracts for the construction of projects 

23 regardless of the funding source of such contracts, 

24 if at least one contract for the construction is fund25 ed with amounts made available under this title. 


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1 ‘‘(b) EXCEPTIONS.— 

2 ‘‘(1) ISSUANCE OF WAIVERS.—The Secretary 

3 may waive the requirements of subsection (a) only if 

4 the Secretary finds that— 

5 ‘‘(A) applying subsection (a) would be in6 consistent with the public interest; 

7 ‘‘(B) the steel, iron, or manufactured 

8 goods required for a project are not produced in 

9 the United States— 

10 ‘‘(i) in sufficient and reasonably avail11 able quantities; or 

12 ‘‘(ii) to a satisfactory quality; or 

13 ‘‘(C) the use of steel, iron, and manufac14 tured goods produced in the United States for 

15 a project will increase the total cost of the 

16 project by more than 25 percent. 

17 ‘‘(2) REGULATIONS.—Not later than 1 year 

18 after the date of enactment of this section, the Sec19 retary shall issue regulations establishing the criteria 

20 that the Secretary shall use to determine whether 

21 the application of subsection (a) is inconsistent with 

22 the public interest for purposes of paragraph (1)(A). 

23 ‘‘(3) REQUESTS FOR WAIVERS.—A recipient of 

24 assistance under this title seeking a waiver under 

25 paragraph (1) shall submit to the Secretary a reVerDate Sep 11 2014 00:30 Feb 15, 2017 Jkt 069200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H904.IH H904

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1 quest for the waiver in such form and containing 

2 such information as the Secretary may require. 

3 ‘‘(c) NOTICE AND COMMENT FOR WAIVER PETI4 TIONS.— 

5 ‘‘(1) The Secretary shall publish the request for 

6 a waiver in the Federal Register not later than 15 

7 days after receiving such request. 

8 ‘‘(2) A waiver may not be issued before the ex9 piration of the 15-day period beginning on the date 

10 on which the request for waiver is published pursu11 ant to paragraph (1) to provide the public an oppor12 tunity for notice and comment. 

13 ‘‘(3) If the Secretary issues a waiver, the Sec14 retary shall publish in the Federal Register not later 

15 than 15 days after issuing such a waiver— 

16 ‘‘(A) a detailed justification for the waiver 

17 that addresses any public comments received 

18 under subsection (a)(1); and 

19 ‘‘(B) provides an employment impact anal20 ysis of the cumulative effect of all waivers 

21 under subsection (b) issued by the Secretary 

22 during the preceding calendar year on manufac23 turing employment in the United States.’’. 

24 (b) CLERICAL AMENDMENT.—The table of contents 

25 of the Rural Water Supply Act of 2006 (43 U.S.C. 2401 


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1 et seq.) is amended by adding after the item for section 

2 110 the following: 

‘‘Sec. 111. Buy America.’’. 

3 SEC. 212. ECONOMIC DEVELOPMENT ADMINISTRATION BUY 

4 AMERICAN MODERNIZATION. 

5 (a) IN GENERAL.—Title VI of the Federal Water 

6 Pollution Control Act (33 U.S.C. 1381 et seq.) is amended 

7 by adding at the end the following: 

8 ‘‘SEC. 609. BUY AMERICA. 

9 ‘‘(a) DOMESTIC SOURCE REQUIREMENT FOR STEEL, 

10 IRON, AND MANUFACTURED GOODS.— 

11 ‘‘(1) IN GENERAL.—Notwithstanding any other 

12 provision of law, funds made available from a State 

13 water pollution control revolving fund established 

14 under this title grants and loan programs adminis15 tered by the Economic Development Agency’s Public 

16 Works and Economic Development Program may 

17 not be used, in whole or in part, for a project for 

18 the construction of treatment works unless the steel, 

19 iron, and manufactured goods used for the project 

20 are produced in the United States. 

21 ‘‘(2) SCOPE.—The requirements of this section 

22 apply to all contracts for the construction of treat23 ment works carried out within the scope of the ap24 plicable finding, determination, or decision under 

25 section 511(c)(1), regardless of the funding source 


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1 of such contracts, if at least one contract for the 

2 construction is funded with amounts made available 

3 to carry out this title. 

4 ‘‘(b) EXCEPTIONS.— 

5 ‘‘(1) ISSUANCE OF WAIVERS.—The Adminis6 trator may waive the requirements of subsection (a) 

7 only if the Administrator finds that— 

8 ‘‘(A) applying subsection (a) would be in9 consistent with the public interest, as deter10 mined in accordance with the regulations re11 quired under paragraph (2); 

12 ‘‘(B) the steel, iron, or manufactured 

13 goods required for a project are not produced in 

14 the United States— 

15 ‘‘(i) in sufficient and reasonably avail16 able quantities; or 

17 ‘‘(ii) to a satisfactory quality; or 

18 ‘‘(C) the use of steel, iron, and manufac19 tured goods produced in the United States for 

20 a project will increase the total cost of the 

21 project by more than 25 percent. 

22 ‘‘(2) REGULATIONS.—Not later than 1 year 

23 after the date of enactment of this section, the Ad24 ministrator shall issue regulations establishing the 

25 criteria that the Administrator shall use to deterVerDate Sep 11 2014 00:30 Feb 15, 2017 Jkt 069200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H904.IH H904

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1 mine whether the application of subsection (a) is in2 consistent with the public interest for purposes of 

3 paragraph (1)(A). 

4 ‘‘(3) REQUESTS FOR WAIVERS.—A recipient of 

5 assistance under this title seeking a waiver under 

6 paragraph (1) shall submit to the Administrator a 

7 request for the waiver in such form and containing 

8 such information as the Administrator may require. 

9 ‘‘(c) NOTICE AND COMMENT FOR WAIVER PETI10 TIONS.— 

11 ‘‘(1) The Administrator shall publish the re12 quest for a waiver in the Federal Register within 15 

13 days after receiving such request. 

14 ‘‘(2) A waiver may not be issued before the ex15 piration of the 15-day period beginning on the date 

16 on which the request for waiver is published pursu17 ant to paragraph (1) to provide the public an oppor18 tunity for notice and comment. 

19 ‘‘(3) If the Administrator issues a waiver, the 

20 Administrator shall publish in the Federal Register 

21 within 15 days of issuing such a waiver— 

22 ‘‘(A) a detailed justification for the waiver 

23 that addresses any public comments received 

24 under subsection (a)(1); and 


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1 ‘‘(B) provides an employment impact anal2 ysis of the cumulative effect of all waivers 

3 under subsection (b) issued by the Adminis4 trator during the preceding calendar year on 

5 manufacturing employment in the United 

6 States.’’. 

7 (b) CLERICAL AMENDMENT.—The table of contents 

8 of the Federal Water Pollution Control Act (33 U.S.C. 

9 1381 et seq.) is amended by adding after the item for sec10 tion 608 the following: 

‘‘Sec. 609. Buy America.’’. 

11 SEC. 213. RAIL LOAN AND LOAN GUARANTEE BUY AMERICA 

12 REQUIREMENTS. 

13 Section 502(h)(3) of the Railroad Revitalization and 

14 Regulatory Reform Act of 1976 (45 U.S.C. 822(h)(3)) is 

15 amended— 

16 (1) in subparagraph (A) by striking ‘‘and’’ at 

17 the end; 

18 (2) in subparagraph (B) by striking the period 

19 at the end and inserting ‘‘; and’’; and 

20 (3) by adding at the end the following: 

21 ‘‘(C) the requirements of section 24405(a) of 

22 title 49, United States Code.’’. 

Æ 


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