113 S2682 IS: Made in the U.S.A. Act U.S. Senate 2014-07-29 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II 113th CONGRESS2d Session S. 2682 IN THE SENATE OF THE UNITED STATES July 29, 2014 Mr. Pryor (for himself and Mr. Walsh) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To require certain Federal agencies to use iron, steel, wood products, cement and manufactured goods produced in the United States in public construction projects, to permanently extend the Build America Bonds program, to ensure that transportation and infrastructure projects carried out using Federal financial assistance are constructed with steel, iron, and manufactured goods that are produced in the United States, and for other purposes.

1.

Short title

This Act may be cited as the Made in the U.S.A. Act.

2.

Buy American

(a)

In general

Notwithstanding any other provision of law, except for the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.), the head of a Federal agency may not obligate or expend funds appropriated to the agency, or provide financial assistance using funds appropriated to the agency, for a project for the construction, alteration, maintenance, or repair of a public building or public work unless substantially all of the iron, steel, wood products, cement, and manufactured goods used in the project are produced in the United States.(b)

Waiver

The head of a Federal agency may waive the provisions of subsection (a) with respect to such if he or she determines that— (1)the application of such provisions would be inconsistent with the public interest; (2)iron, steel, wood products, cement, and manufactured goods are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or(3)inclusion of iron, steel, wood products, cement, and manufactured goods produced in the United States will increase the project schedule or total cost of the project by more than 25 percent (or by more than 50 percent for Department of Defense projects).(c)

Waiver requirements

(1)

Detailed justification in federal register

If the head of a Federal agency issues a waiver under subsection (b), he or she shall publish a detailed justification for such waiver in the Federal Register.(2)

Annual report

Not later than 2 years after the date of the enactment of this Act, and annually thereafter, in any year that the head of a Federal agency issues a waiver under subsection (b), the agency head shall submit a report to Congress that—(A)specifies each project with respect to which the agency head issued a waiver under subsection (b) during the preceding calendar year;(B)identifies the country of origin and product specifications for steel, iron, wood products, cement or manufactured goods acquired pursuant to each waiver issued by the agency head under subsection (b) during the preceding calendar year;(C)summarizes the monetary value of contracts awarded pursuant to each such waiver;(D)summarizes the funds expended on—(i)steel, iron, wood products, cement, and manufactured goods produced in the United States for projects with respect to which the requirement under this section applied during the preceding calendar year; and(ii)steel, iron, wood products, cement, and manufactured goods produced outside the United States for projects with respect to which the agency head issued a waiver under subsection (b)(1) during the preceding calendar year; and(E)provides an employment impact analysis of the cumulative effect of all waivers issued by the agency head under subsection (b) during the preceding calendar year on manufacturing employment in the United States.(d)

Excepted items

This section shall not apply to articles, materials, or supplies—(1)for use outside the United States (as described in sections 8302(a)(2)(A) and 8303(b)(1)(A));(2)below the micro-purchase threshold under section 1902 of title 41, United States Code;(3)including information technology that is a commercial item (as described in section 25.103(e) of title 48, Code of Federal Regulations); or(4)for commissary resale (as described in section 25.103(d) of title 48, Code of Federal Regulations).(e)

Relationship to State requirements

The head of a Federal agency may not impose any limitation or condition on financial assistance provided using funds appropriated to the agency that—(1)restricts any State from imposing more stringent requirements than the requirements under this section on the use of iron, steel, wood products, cement, and manufactured goods in foreign countries in projects carried out with such assistance; or(2)restricts any recipient of such assistance from complying with such State requirements. (f)

Intentional violations

A person shall be ineligible to receive any contract or subcontract made with funds authorized to be appropriated to a Federal agency pursuant to the debarment, suspension, and ineligibility procedures in subpart 9.4 of chapter 1 of title 48, Code of Federal Regulations, for a 6-year period beginning on the date of a determination under this subsection, if a court or the Federal agency determines that the person intentionally represented that any iron, steel, wood product, cement, or manufactured good used in projects to which this section applies, sold in or shipped to the United States that was not produced in the United States, was produced in the United States.(g)

Application of requirements to entire project

The requirement under subsection (a) and the exceptions specified in subsection (b) shall apply to the total of obligations and expenditures for an entire project and not only to obligations and expenditures for component parts of such project. (h)

Definitions

In this section, the terms public building and public work—(1)have the meanings given such terms in section 8301 of title 41, United States Code; and(2)include airports, bridges, canals, dams, dikes, pipelines, railroads, multiline mass transit systems, roads, tunnels, harbors, and piers. (i)

Effective date

This section shall apply to amounts appropriated or otherwise made available at least 1 year after the date of the enactment of this Act.

3.

Permanent Extension of Build America Bonds

(a)

Reduction in bond holder credit percentage

Section 54AA(b) of the Internal Revenue Code of 1986 is amended by striking 35 percent and inserting 28 percent (35 percent in the case of bonds issued before January 1, 2011).(b)

Permanent extension

Section 54AA(d)(1)(B) of such Code is amended by inserting or after the date of the enactment of the Made in the U.S.A. Act, after January 1, 2011,.(c)

Qualified bond defined

Section 54AA(g) of such Code is amended by striking paragraph (2) and inserting the following: (2)

Qualified bond

For purposes of this section, the term qualified bond—(A)means any build America bond issued as part of an issue if—(i)100 percent of the excess of—(I)the available project proceeds (as defined in section 54A) of such issue, over(II)the amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect to such issue, are to be used for capital expenditures (including capital expenditures for levees and other flood control projects), and(ii)the issuer makes an irrevocable election to have this subsection apply;(B)includes any bond (or series of bonds) issued to refund a qualified bond if—(i)the average maturity date of the issue of which the refunding bond is a part is not later than the average maturity date of the bonds to be refunded by such issue, (ii)the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and (iii)the refunded bond is redeemed not later than 90 days after the date of the issuance of the refunding bond,(C)includes any bond (or series of bonds) that is reasonably expected to be used for the issuer’s operating expenses as long as the issue is limited to a maturity of 13 months or less, and(D)includes any bond (or series of bonds) that is a qualified 501(c)(3) bond (as defined in section 145).(3)

Additional purposes

(A)In the case of a refunding bond referred to in paragraph (2)(B), the applicable percentage with respect to such bond under section 6431(b) shall be the lowest percentage specified in paragraph (2) of such section. (B)For purposes of paragraph (2)(B)(i), average maturity shall be determined in accordance with section 147(b)(2)(A).(C)Subchapter IV of chapter 31 of title 40, United States Code, shall apply to projects financed with the proceeds of any build America bond issued after the date of the enactment of this paragraph.. (d)

Payments to issuers

(1)

In general

Section 6431 of such Code is amended— (A)in subsection (a), by striking issued before January 1, 2011; and (B)in subsection (f)(1)(B), by striking before January 1, 2011 and inserting during a particular period. (2)

Conforming amendments

Section 54AA(g) of such Code is amended—(A)in the subsection heading, by striking qualified bonds issued before 2011 and inserting certain qualified bonds; and(B)in the matter preceding paragraph (1), by striking before January 1, 2011.(e)

Reduction in percentage of payments to issuers

Section 6431(b) of such Code is amended by striking 35 percent and inserting 28 percent (35 percent in the case of bonds issued before January 1, 2011).

4.

Federal-aid highway Buy America provisions

(a)

In general

Section 313 of title 23, United States Code, is amended to read as follows:

313.

Buy America

(a)

Domestic source requirement for steel, iron, and manufactured goods

(1)

In general

Notwithstanding any other provision of law, funds made available to carry out this title may not be obligated for a project unless the steel, iron, and manufactured goods used for the project are produced in the United States. (2)

Scope

The requirements under this section shall apply to all contracts for a project carried out within the scope of the applicable finding, determination, or decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), regardless of the funding source of such contracts, if at least 1 contract for the project is funded with amounts made available to carry out this title. (b)

Exceptions

(1)

Issuance of waivers

The Secretary may waive the requirements of subsection (a) only if the Secretary determines that— (A)applying subsection (a) would be inconsistent with the public interest, as determined in accordance with the regulations issued under paragraph (2); (B)the steel, iron, or manufactured goods required for a project are not produced in the United States— (i)in sufficient and reasonably available quantities; and (ii)of a satisfactory quality; or (C)the use of steel, iron, and manufactured goods produced in the United States for a project will increase the project schedule or total cost of the project by more than 25 percent. (2)

Rulemaking

The Secretary shall issue regulations establishing the criteria that the Secretary shall use to determine whether the application of subsection (a) is inconsistent with the public interest for purposes of paragraph (1)(A). (3)

Labor costs

For purposes of this subsection, labor costs involved in final assembly shall not be included in calculating the cost of components. (4)

Requests for waivers

A recipient of assistance under this title seeking a waiver under paragraph (1) shall submit a request for such waiver to the Secretary in such form and containing such information as the Secretary may require. (c)

Waiver requirements

(1)

Public notification of and opportunity for comment on request for a waiver

(A)

In general

If the Secretary receives a request for a waiver under subsection (b), the Secretary shall provide notice of and an opportunity for public comment on the request at least 30 days before making a finding based on the request. (B)

Notice requirements

A notice provided under subparagraph (A)— (i)shall include the information available to the Secretary concerning the request, including whether the request is being made under subparagraph (A), (B), or (C) of subsection (b)(1); and (ii)shall be provided by electronic means, including on the official public Internet website of the Department of Transportation. (2)

Detailed justification in Federal Register

If the Secretary issues a waiver under subsection (b), the Secretary shall publish in the Federal Register a detailed justification for the waiver that— (A)addresses the public comments received under paragraph (1)(A); and (B)is published before the waiver takes effect. (d)

State requirements

The Secretary may not impose a limitation or condition on assistance provided under this title that restricts— (1)a State from imposing requirements that are more stringent than those imposed under this section with respect to limiting the use of articles, materials, or supplies mined, produced, or manufactured in foreign countries for projects carried out with such assistance; or (2)any recipient of such assistance from complying with such State requirements. (e)

Intentional violations

Pursuant to procedures established under subpart 9.4 of chapter 1 of title 48, Code of Federal Regulations, a person shall be ineligible to receive a contract or subcontract funded with amounts made available to carry out this title if the Secretary, the head of any department, agency, or instrumentality of the United States, or a court determines that such person intentionally— (1)affixed a label bearing a Made in America inscription, or any inscription with the same meaning, to any steel, iron, or manufactured goods that— (A)were used in a project to which this section applies; and (B)were not produced in the United States; or (2)represented that any steel, iron, or manufactured goods were produced in the United States that— (A)were used in a project to which this section applies; and (B)were not produced in the United States. (f)

Consistency with international agreements

(1)

In general

This section shall be applied in a manner that is consistent with United States obligations under international agreements. (2)

Treatment of foreign countries in violation of international agreements

The Secretary shall prohibit the use of steel, iron, and manufactured goods produced in a foreign country in a project funded with amounts made available to carry out this title, including any project for which the Secretary has issued a waiver under subsection (b), if the Secretary, in consultation with the United States Trade Representative, determines that the foreign country is in violation of the terms of an agreement with the United States by discriminating against steel, iron, or manufactured goods that are produced in the United States and covered by the agreement.

. (b)

Review of nationwide waivers

(1)

In general

Not later than 1 year after the date of enactment of this Act, and at least every 5 years thereafter, the Secretary of Transportation shall review each standing nationwide waiver issued under section 313 of title 23, United States Code, to determine whether continuing such waiver is necessary. (2)

Public notification of and opportunity for comment on review of standing nationwide waivers

In conducting a review under paragraph (1), the Secretary shall provide notice of and an opportunity for public comment on the review at least 30 days before completing the review. (3)

Notice requirement

A notice provided under paragraph (2) shall be provided by electronic means, including on the official public Internet website of the Department of Transportation. (4)

Detailed justification in Federal Register

If the Secretary finds it is necessary to continue a standing nationwide waiver after a review under paragraph (1), the Secretary shall publish in the Federal Register a detailed justification for such waiver that addresses the public comments received under paragraph (2). (c)

Repeals

(1)

Waiver notification and annual reports

Section 117 of the SAFETEA–LU Technical Corrections Act of 2008 (23 U.S.C. 313 note) is repealed. (2)

Notice and public comments

Section 123 of title I of division A of the Consolidated Appropriations Act, 2010 (23 U.S.C. 313 note) is repealed.

5.

Public transportation Buy America provisions

(a)

In general

Section 5323(j) of title 49, United States Code, is amended to read as follows: (j)

Buy America

(1)

Domestic source requirement for steel, iron, and manufactured goods

(A)

In general

Notwithstanding any other provision of law, and except as provided in subparagraph (B), funds made available to carry out this chapter may not be obligated for a project unless the steel, iron, and manufactured goods used for the project are produced in the United States. (B)

Special rules for rolling stock

Funds made available to carry out this chapter may not be obligated for the procurement of rolling stock (including train control, communication, traction power equipment, and rolling stock prototypes) unless— (i)the cost of components and subcomponents produced in the United States— (I)for fiscal year 2015 is more than 60 percent of the cost of all components of the rolling stock; (II)for fiscal year 2016 is more than 70 percent of the cost of all components of the rolling stock; (III)for fiscal year 2017 is more than 80 percent of the cost of all components of the rolling stock; (IV)for fiscal year 2018 is more than 90 percent of the cost of all components of the rolling stock; and (V)for fiscal year 2019, and each fiscal year thereafter, is 100 percent of the cost of all components of the rolling stock; and (ii)final assembly of the rolling stock, including rolling stock prototypes, occurs in the United States. (C)

Scope

The requirements under this subsection shall apply to all contracts for a public transportation project carried out within the scope of the applicable finding, determination, or decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), regardless of the funding source of such contracts, if at least one contract for the public transportation project is funded with amounts made available to carry out this chapter. (2)

Exceptions

(A)

Issuance of waivers

The Secretary may waive the requirements of paragraph (1) only if the Secretary finds that— (i)applying paragraph (1) would be inconsistent with the public interest, as determined in accordance with the regulations issued under subparagraph (B); (ii)the steel, iron, or manufactured goods required for a project are not produced in the United States— (I)in sufficient and reasonably available quantities; and (II)of a satisfactory quality; or (iii)the use of steel, iron, and manufactured goods produced in the United States for a project will increase the project schedule or total cost of the project by more than 25 percent. (B)

Rulemaking

The Secretary shall issue regulations establishing the criteria that the Secretary shall use to determine whether the application of paragraph (1) is inconsistent with the public interest for purposes of subparagraph (A)(i). (C)

Components of rolling stock

If the Secretary finds that a component of rolling stock is not produced in the United States in sufficient and reasonably available quantities or to a satisfactory quality, the Secretary may issue a waiver under subparagraph (A) with respect to such component. (D)

Labor costs

For purposes of this subsection, labor costs involved in final assembly shall not be included in calculating the cost of components. (E)

Requests for waivers

A recipient of assistance under this chapter seeking a waiver under subparagraph (A) shall submit to the Secretary a request for the waiver in such form and containing such information as the Secretary may require. (3)

Waiver requirements

(A)

Public notification of and opportunity for comment on request for a waiver

(i)

In general

If the Secretary receives a request for a waiver under paragraph (2), the Secretary shall provide notice of and an opportunity for public comment on the request at least 30 days before making a finding based on the request. (ii)

Notice requirements

A notice provided under clause (i) shall— (I)include the information available to the Secretary concerning the request, including whether the request is being made under paragraph (2)(A)(i), (2)(A)(ii), or (2)(A)(iii); and (II)be provided by electronic means, including on the official public Internet website of the Department of Transportation. (B)

Detailed justification in Federal Register

If the Secretary issues a waiver under paragraph (2), the Secretary shall publish in the Federal Register a detailed justification for the waiver that— (i)addresses the public comments received under subparagraph (A)(i); and (ii)is published before the waiver takes effect. (4)

State requirements

The Secretary may not impose a limitation or condition on assistance provided under this chapter that restricts— (A)a State from imposing requirements that are more stringent than those imposed under this subsection with respect to limiting the use of articles, materials, or supplies mined, produced, or manufactured in foreign countries for projects carried out with such assistance; or (B)any recipient of such assistance from complying with such State requirements. (5)

Intentional violations

Pursuant to procedures established under subpart 9.4 of chapter 1 of title 48, Code of Federal Regulations, a person shall be ineligible to receive a contract or subcontract funded with amounts made available to carry out this chapter or any other law providing Federal public transportation assistance if the Secretary, the head of any department, agency, or instrumentality of the United States, or a court determines that such person intentionally— (A)affixed a label bearing a Made in America inscription, or any inscription with the same meaning, to any steel, iron, or manufactured goods that— (i)were used in a project to which this subsection applies; and (ii)were not produced in the United States; or (B)represented that any steel, iron, or manufactured goods were produced in the United States that— (i)were used in a project to which this subsection applies; and (ii)were not produced in the United States. (6)

Consistency with international agreements

(A)

In general

This subsection shall be applied in a manner that is consistent with United States obligations under international agreements. (B)

Treatment of foreign countries in violation of international agreements

The Secretary shall prohibit the use of steel, iron, and manufactured goods produced in a foreign country in a project funded with amounts made available to carry out this chapter or any other law providing Federal public transportation assistance, including any project for which the Secretary has issued a waiver under paragraph (2), if the Secretary, in consultation with the United States Trade Representative, determines that the foreign country is in violation of the terms of an agreement with the United States by discriminating against steel, iron, or manufactured goods that are produced in the United States and covered by the agreement. (7)

Opportunity to correct inadvertent error

The Secretary may allow a manufacturer or supplier of steel, iron, or manufactured goods to correct after bid opening an incomplete Buy America certificate or an incorrect certificate of noncompliance (but not a failure to sign a certificate, a submission of both a certificate of compliance and a certificate of noncompliance, or a failure to submit any certificate) under this subsection if such manufacturer or supplier attests under penalty of perjury that such manufacturer or supplier submitted an incomplete or incorrect certificate as a result of an inadvertent or clerical error. The burden of establishing inadvertent or clerical error is on the manufacturer or supplier. . (b)

Review of general public interest waivers

Not later than 1 year after the date of enactment of this Act, and at least every 5 years thereafter, the Secretary of Transportation shall review the general public interest waivers described in subsection (b) of Appendix A of section 661.7 of title 49, Code of Federal Regulations, to determine whether continuing such waivers is in the public interest.

6.

Amtrak Buy America provisions

(a)

In general

Section 24305(f) of title 49, United States Code, is amended to read as follows: (f)

Buy America

(1)

Domestic source requirement for steel, iron, and manufactured goods

(A)

In general

Notwithstanding any other provision of law, amounts made available to Amtrak under section 101(c) of the Passenger Rail Investment and Improvement Act of 2008 (division B of Public Law 110–432; 122 Stat. 4908) may not be used for a capital project (as defined in subparagraphs (A) and (B) of section 24401(2)) to bring the Northeast Corridor to a state-of-good-repair or for any other capital expense of Amtrak unless the steel, iron, and manufactured goods used for the project or other capital expense are produced in the United States. (B)

Scope

The requirements under this subsection shall apply to all contracts for a project or other capital expense carried out within the scope of the applicable finding, determination, or decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), regardless of the funding source of such contracts, if at least one contract with respect to the project or other capital expense is funded with amounts made available under section 101(c) of the Passenger Rail Investment and Improvement Act of 2008 (122 Stat. 4908).(C)

Special rules for rolling stock

Funds made available to carry out this chapter may not be obligated for the procurement of rolling stock (including train control, communication, traction power equipment, and rolling stock prototypes) unless—(i)the cost of components and subcomponents produced in the United States—(I)for fiscal year 2015 is more than 60 percent of the cost of all components of the rolling stock;(II)for fiscal year 2016 is more than 70 percent of the cost of all components of the rolling stock;(III)for fiscal year 2017 is more than 80 percent of the cost of all components of the rolling stock;(IV)for fiscal year 2018 is more than 90 percent of the cost of all components of the rolling stock; and(V)for fiscal year 2019, and each fiscal year thereafter, is 100 percent of the cost of all components of the rolling stock; and(ii)final assembly of the rolling stock, including rolling stock prototypes, occurs in the United States.(2)

Exceptions

(A)

Issuance of waivers

The Secretary of Transportation may waive the requirements under paragraph (1) only if the Secretary determines that— (i)applying paragraph (1) would be inconsistent with the public interest, as determined in accordance with the regulations issued under subparagraph (B); (ii)the steel, iron, or manufactured goods required for a project or other capital expense are not produced in the United States— (I)in sufficient and reasonably available quantities; and (II)of a satisfactory quality; (iii)the use of steel, iron, and manufactured goods produced in the United States for a project or other capital expense will increase the project schedule or total cost of the project by more than 25 percent; or(iv)the cost of articles, material, or supplies bought is not more than $1,000,000.(B)

Rulemaking

The Secretary shall issue regulations establishing the criteria that the Secretary shall use to determine whether the application of paragraph (1) is inconsistent with the public interest for purposes of subparagraph (A)(i).(C)

Components of rolling stock

If the Secretary finds that a component of rolling stock is not produced in the United States in sufficient and reasonably available quantities or to a satisfactory quality, the Secretary may issue a waiver under subparagraph (A) with respect to such component.(D)

Labor costs

For purposes of this paragraph, labor costs involved in final assembly shall not be included in calculating the cost of components. (E)

Requests for waivers

If Amtrak seeks a waiver under subparagraph (A), Amtrak shall submit a request for the waiver to the Secretary in such form and containing such information as the Secretary may require. (3)

Waiver requirements

(A)

Public notification of and opportunity for comment on request for a waiver

(i)

In general

If the Secretary receives a request for a waiver from Amtrak under paragraph (2), the Secretary shall provide notice of and an opportunity for public comment on the request at least 30 days before making a determination based on the request. (ii)

Notice requirements

A notice provided under clause (i)— (I)shall include the information available to the Secretary concerning the request, including whether the request is being made under clause (i), (ii), or (iii) of paragraph (2)(A); and (II)shall be provided by electronic means, including on the official public Internet website of the Department of Transportation. (B)

Detailed justification in Federal Register

If the Secretary issues a waiver under paragraph (2), the Secretary shall publish in the Federal Register a detailed justification for the waiver that— (i)addresses the public comments received under subparagraph (A)(i); and (ii)is published before the waiver takes effect. (4)

State requirements

The Secretary may not impose a limitation or condition on assistance provided with funds described in paragraph (1)(A) that restricts— (A)a State from imposing requirements that are more stringent than those imposed under this subsection with respect to limiting the use of articles, materials, or supplies mined, produced, or manufactured in foreign countries for capital projects or other capital expenses carried out with such assistance; or (B)any recipient of such assistance from complying with such State requirements. (5)

Intentional violations

Pursuant to procedures established under subpart 9.4 of chapter 1 of title 48, Code of Federal Regulations, a person shall be ineligible to receive a contract or subcontract funded with funds described in paragraph (1)(A) if the Secretary, the head of any department, agency, or instrumentality of the United States, or a court determines that such person intentionally— (A)affixed a label bearing a Made in America inscription, or any inscription with the same meaning, to any steel, iron, or manufactured goods that— (i)were used in a capital project or other capital expense to which this subsection applies; and (ii)were not produced in the United States; or (B)represented that any steel, iron, or manufactured goods were produced in the United States that— (i)were used in a capital project or other capital expense to which this subsection applies; and (ii)were not produced in the United States. (6)

Consistency with international agreements

(A)

In general

This subsection shall be applied in a manner that is consistent with United States obligations under international agreements. (B)

Treatment of foreign countries in violation of international agreements

The Secretary shall prohibit the use of steel, iron, and manufactured goods produced in a foreign country in a capital project or other capital expense funded with funds described in paragraph (1)(A), including any project or capital expense for which the Secretary has issued a waiver under paragraph (2), if the Secretary, in consultation with the United States Trade Representative, determines that the foreign country is in violation of the terms of an agreement with the United States by discriminating against steel, iron, or manufactured goods that are produced in the United States and covered by the agreement. . (b)

Review of nationwide waivers

Not later than 1 year after the date of enactment of this Act, and at least every 5 years thereafter, the Secretary of Transportation shall review each standing nationwide waiver issued under section 24305(f) of title 49, United States Code, to determine whether continuing such waiver is necessary.

7.

Aviation Buy America provisions

(a)

Buy America preferences

Chapter 501 of title 49, United States Code, is amended by striking the chapter heading and inserting Buy America. (b)

Enhancements To buy America requirements

Section 50101 of such title is amended to read as follows:

50101.

Buy America

(a)

Domestic source requirement for steel, iron, and manufactured goods

(1)

In general

Notwithstanding any other provision of law, and except as provided in paragraph (2), amounts made available to carry out section 106(k), 44502(a)(2), or 44509, subchapter I of chapter 471 (except section 47127), or chapter 481 (except sections 48102(e), 48106, 48107, and 48110) of this title may not be obligated for a project unless the steel, iron, and manufactured goods used for the project are produced in the United States. (2)

Special rules for certain facilities and equipment

With respect to a project for the procurement of a facility or equipment, funds made available to carry out the provisions specified in paragraph (1) may not be obligated for the project unless— (A)the cost of components and subcomponents produced in the United States— (i)for fiscal year 2015 is more than 60 percent of the cost of all components of the facility or equipment; (ii)for fiscal year 2016 is more than 70 percent of the cost of all components of the facility or equipment; (iii)for fiscal year 2017 is more than 80 percent of the cost of all components of the facility or equipment; (iv)for fiscal year 2018 is more than 90 percent of the cost of all components of the facility or equipment; and (v)for fiscal year 2019, and each fiscal year thereafter, is 100 percent of the cost of all components of the facility or equipment; and (B)final assembly of the facility or equipment occurs in the United States. (3)

Scope

The requirements under this section shall apply to all contracts for a project carried out within the scope of the applicable finding, determination, or decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), regardless of the funding source of such contracts, if at least one contract for the project is funded with amounts made available to carry out a provision specified in paragraph (1). (b)

Exceptions

(1)

Issuance of waivers

The Secretary of Transportation may waive the requirements of subsection (a) only if the Secretary determines that— (A)applying subsection (a) would be inconsistent with the public interest, as determined in accordance with the regulations issued under paragraph (2); (B)the steel, iron, or manufactured goods required for a project are not produced in the United States— (i)in sufficient and reasonably available quantities; and (ii)of a satisfactory quality; or (C)the use of steel, iron, and manufactured goods produced in the United States for a project will increase the project schedule or total cost of the project by more than 25 percent. (2)

Rulemaking

The Secretary shall issue regulations establishing the criteria that the Secretary shall use to determine whether the application of subsection (a) is inconsistent with the public interest for purposes of paragraph (1)(A). (3)

Labor costs

For purposes of this section, labor costs involved in final assembly are not included in calculating the cost of components. (4)

Requests for waivers

An entity seeking a waiver under paragraph (1) shall submit to the Secretary a request for the waiver in such form and containing such information as the Secretary may require. (5)

Preference for American-assembled facilities and equipment

In the procurement of a facility or equipment subject to a waiver issued under paragraph (1), the Secretary shall give preference to a facility or equipment for which final assembly occurred in the United States. (6)

Limitation on waiver authority

In the procurement of a facility or equipment, if the Secretary determines that a component of the facility or equipment is not produced in the United States in sufficient and reasonably available quantities or to a satisfactory quality, the Secretary may issue a waiver under paragraph (1) with respect to such component. (c)

Waiver requirements

(1)

Public notification of and opportunity for comment on request for a waiver

(A)

In general

If the Secretary receives a request for a waiver under subsection (b), the Secretary shall provide notice of and an opportunity for public comment on the request at least 30 days before making a determination based on the request. (B)

Notice requirements

A notice provided under subparagraph (A)— (i)shall include the information available to the Secretary concerning the request, including whether the request is being made under subparagraph (A), (B), or (C) of subsection (b)(1); and (ii)shall be provided by electronic means, including on the official public Internet website of the Department of Transportation. (2)

Detailed justification in Federal Register

If the Secretary issues a waiver under subsection (b), the Secretary shall publish a detailed justification for the waiver in the Federal Register that— (A)addresses the public comments received under paragraph (1)(A); and (B)is published before the waiver takes effect. (d)

State requirements

The Secretary may not impose a limitation or condition on assistance provided with funds made available to carry out a provision specified in subsection (a)(1) that restricts— (1)a State from imposing requirements that are more stringent than those imposed under this section with respect to limiting the use of articles, materials, or supplies mined, produced, or manufactured in foreign countries for projects carried out with such assistance; or (2)any recipient of such assistance from complying with such State requirements. (e)

Consistency with international agreements

(1)

In general

This section shall be applied in a manner that is consistent with United States obligations under international agreements. (2)

Treatment of foreign countries in violation of international agreements

The Secretary shall prohibit the use of steel, iron, and manufactured goods produced in a foreign country in a project funded with funds made available to carry out a provision specified in subsection (a)(1), including any project for which the Secretary has issued a waiver under subsection (b), if the Secretary, in consultation with the United States Trade Representative, determines that the foreign country is in violation of the terms of an agreement with the United States by discriminating against steel, iron, or manufactured goods that are produced in the United States and covered by the agreement.

. (c)

Clerical amendments

(1)

Subtitle analysis

The analysis for subtitle VII of title 49, United States Code, is amended by striking the item relating to chapter 501 and inserting the following: 501.Buy America50101 . (2)

Chapter analysis

The analysis for chapter 501 of title 49, United States Code, is amended by striking the item relating to section 50101 and inserting the following: 50101. Buy America. . (d)

Prohibition on contracting upon falsification of label

Section 50105 of such title is amended by inserting steel, iron, or manufactured before goods. (e)

Review of nationwide waivers

Not later than 1 year after the date of the enactment of this Act, and at least every 5 years thereafter, the Secretary of Transportation shall review each standing nationwide waiver issued under section 50101 of title 49, United States Code, to determine whether continuing such waiver is necessary.

8.

Department of Transportation Buy America annual report

Section 308 of title 49, United States Code, is amended by adding at the end the following: (f)

Buy America

Not later than February 1 of each year beginning at least 1 year after the date of the enactment of this subsection, the Secretary shall submit a report to Congress that— (1)specifies each project with respect to which the Secretary issued a waiver from a Buy America requirement during the preceding calendar year; (2)identifies the country of origin and product specifications for steel, iron, or manufactured goods acquired pursuant to each waiver from a Buy America requirement issued by the Secretary during the preceding calendar year; (3)summarizes the monetary value of contracts awarded pursuant to each such waiver; (4)provides the justification for each such waiver, including the specific law, treaty, or international agreement under which the waiver was granted; (5)summarizes the funds expended on— (A)steel, iron, and manufactured goods produced in the United States for projects with respect to which a Buy America requirement, under which the Secretary has waiver authority, applied during the preceding calendar year; and (B)steel, iron, and manufactured goods produced outside the United States for projects with respect to which the Secretary issued a waiver from a Buy America requirement during the preceding calendar year; and (6)provides an employment impact analysis of the cumulative effect of all waivers from a Buy America requirement issued by the Secretary during the preceding calendar year on manufacturing employment in the United States. .