AGC anticipates that a large number of water infrastructure projects funded with EPA "Stimulus" funds will hit the streets in September and October. According to the EPA, significant progress is being made processing assistance agreements with state water authorities, which will likely translate into contracts very soon. As we reported in the August edition of the Pipeline, official reports from EPA were dismal in terms of actual dollars translating into contracts. This situation seems to be improving and while full project data will not be available from the states until October, EPA has shared that almost 400 projects have received assistance agreements for approximately $672 million.
Assistance agreements are required for projects to proceed to the bidding stage. So far, 94 projects receiving funds through the Clean Water SRF have completed contracts for all funds and 83 are under construction. Forty-nine drinking water projects have completed contracts and 48 are under construction. By EPA's estimates, most states are doubling the impact of ARRA SRF dollars.
EPA continues to deal with new "Buy American" requirements and has released several more waivers, including an updated version of the nationwide de minimus waiver originally issued on June 2, 2009. The waiver was given for "de minimis incidental components," which are minor, or small-scale components that "cumulatively comprise no more than a total of 5 percent of the total cost of the materials used in and incorporated" into eligible water infrastructure projects funded by the ARRA. According to EPA, every water infrastructure project involves the use of "thousands of miscellaneous, generally low-cost components that are essential for, but incidental to, the construction and are incorporated into the physical structure of the project, such as nuts, bolts, other fasteners, tubing, gaskets, etc." EPA said it "is not in the public interest" to impose ARRA's Buy American requirements, as outlined in Section 1605 of the stimulus law, on these de minimis components.
This updated version, released August 11, 2009, revises the terms under which that waiver may be applied; specifically it repeals the need to identify both the country of origin and possible alternatives for these incidental components. EPA reasoned that for many of these components, "the country of manufacture and the availability of alternatives is not always readily or reasonably identifiable prior to procurement in the normal course of business." The new terms of this waiver are effective as of July 24, 2009.
EPA regional offices continue to issue project-specific waivers, including 4 national categorical and 9 project specific waivers through EPA Regional offices. The latest waivers of the Buy American provisions were granted for projects in Vermont and New Hampshire for advanced U.V. and sludge treatment technologies.
Individual projects must apply for a separate waivers based on project-specific circumstances even if waivers have already been granted for specific materials or equipment. EPA has left the door open for additional national waivers and according to EPA officials no waiver requests have been rejected to date. For the entire list of waivers issued to date click here.
For more information on EPA Buy American requirements, including EPA webcasts, please click here.
For additional information, please contact Perry L. Fowler at fowlerp@agc.org or (703)837-5321.
- Industry Priorities
- Education
- News
- Connect
- Benefits
- Events
- Shop