While ARRA set the stage, meeting its requirements is not related to compliance with the more stringent BABA standards. BABA, established under the Infrastructure Investment and Jobs Act of 2021, mandates that for a product to be BABA compliant, over 55% of the total cost of its components must come from the United States. This is a significant shift towards prioritizing American-made materials and components and it supports the U.S. manufacturing industry more robustly.
While BABA has moved slowly to date due to complexity, according to EPA this 55% domestic content requirement will be impacting much of the federal funding beginning in the 3Q of this year. For more information on how the Build America Buy America Act is affecting the wastewater industry, check out the article by Thales Water Advisors from their May 2024 newsletter.