When the Bipartisan Infrastructure Law (BIL) was passed it included a requirement for domestically produced products known as the Build America, Buy America Act (BABA). The BABA was enacted on May 14, 2022 in conjunction with the BIL and was also included in the Inflation Reduction Act (IRA). Similar to past domestic preference laws, BABA expands on construction materials which were not adequately covered in past laws. It specifically covers steel, iron, manufactured products and non-ferrous metals among other common materials.

BABA states that all construction materials used in federally funded infrastructure projects be produced in the United States. The language in BABA around iron/steel states “all manufacturing processes from the initial melting stage through the application of coatings, occurred in the United States.” BABA goes onto require that construction materials (non-ferrous) require “all manufacturing processes for the construction material occurred in the United States.”

Based on this clause, there was some concern that zinc used in the galvanizing process must be mined, refined and smelted domestically. However, zinc is not produced in sufficient and reasonably available quantities in the U.S. to meet the demand. So back in August of 2022, the AGA submitted a comment to the Transportation Department’s public RFI on construction materials to explain the AGA supports the use of domestically produced, fabricated and coated steel, but it is necessary to provide clarification around the acquisition of raw materials (iron and zinc) as there is not adequate domestic supply for processes of smelting the zinc and producing ingots. Similar comments were expressed by AASHTO, multiple DOTs, and fellow galvanizers.

Based on past domestic preference laws, precedent had been set to include applications of coatings but not the material being applied as the coating. The AGA pointed to this precedent and asked for clarification around the use of zinc in the galvanizing process. Although no formal reply to the comment was received, it does appear BABA addresses the issue and notes “materials and products not produced in sufficient and reasonably available quantities of satisfactory quality in the U.S.” would qualify for a waiver under BABA. Moreover, BABA requires all materials fall into one of three categories: steel and iron; manufactured products; and construction materials (non-ferrous); and specifically says no material should be considered to fall into multiple categories.

Based on the category rule and details, galvanized steel would fall into the steel/iron category which simply states the application of coatings happen in the U.S. Furthermore, the specific exemption for a waiver on materials not sufficiently produced in the U.S. ensure if steel is produced, fabricated and galvanized by U.S. companies then it does in fact meet the requirements of BABA.