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“Compliance Assistance with Iron and Steel Reqs”

Texas Water Infrastructure Network - Buy American

In 2017 the 85th Texas Legislature passed SB 1289 which amended Texas Water Code §17.183 and the Texas Government Code §2252 to require that state agencies and political subdivisions include provisions in project contracts for iron and steel products and exempted manufactured goods. This requirement applies to all construction funds administered by State agencies including to contracts paid for with financial assistance from the Water Infrastructure Fund including the Rural Water Assistance Fund, Texas Water Development Fund II Water Financial Assistance Account (DFund), or the Economically Distressed Areas Program Account. Application to the State Water Implementation Fund for Texas or SWIFT has been delayed until 2019.


The TWDB is currently undergoing a rulemaking process to implement SB 1289 that was effective law as of September 1, 2017. The proposed rule and accompanying guidance document are currently available for public comment until January 31, 2018.


In 2014 Congress also extended similar requirements for projects receiving funding from the TWDB administered Clean and Drinking Water State Revolving Fund or “SRF” programs.


Effectively this means that all financial assistance provided by the TWDB for capital projects fall under these new requirements with delayed application to SWIFT and certain other projects that were exempted in Harris County.  


Requirements may be waived in some circumstances where products and manufactured goods are not available in sufficient quantities, readily available, are not of a satisfactory quality; or the use of such products or goods will increase the total cost of the project by more than 20 percent (or 25% in the case of SRF funded projects).


Please note that projects with federal and state iron and steel requirements are required to be designed to this standard and appropriate notice must be included in bid notices and documents, unless the requirement has been waived.  Please note that there are certain exceptions for manufactured goods in federal requirements and diminimus exceptions for small and incidental items incorporated into projects up to a certain amount.


The requirements are different for federal and state programs and we highly encourage owners, engineers, suppliers, manufacturers and contractors to proceed with caution and contact TxWIN staff or TWDB if you have any questions.


Click here to view EPA American Iron and Steel Guidance for projects receiving State Revolving Fund or SRF Funding including links to waiver information.


Click here to access TWDB guidance and reporting documents for both state and federal requirements. 


Click here to view SRF American Iron and Steel (AIS) Guidance applicable to the Clean Water and Safe Drinking Water State Revolving Loan Funds.


Click here to view  U.S. Iron and Steel (USIS) Guidance applicable to the Texas Water Development Fund II Water Financial Assistance Account, the Economically Distressed Areas Program Account, the Water Infrastructure Fund, the Rural Water Assistance Fund.


Additional helpful compliance documents from TWDB for contractors and owners can be found here.


Please contact us for additional compliance assistance.

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