Frequently Asked Questions

How much money is allocated for water infrastructure projects?

The American Recovery and Reinvestment Act (ARRA) contains $6 billion in grants and loans for drinking water and clean water infrastructure ($2 billion and $4 billion, respectively).

How will the $6 billion be allocated?

The money will be divided among the 50 states according to the existing State Revolving Fund (SRF) allocation formula.

How much money does each state get?

Click here for a state-by-state breakout as laid out by the State Revolving Fund formula.

How long will the funds be available?

The Environmental Protection Agency shall reallocate funds where projects are not under contract or construction within 12 months of enactment.

Who gets priority for funds?

Priority for project funding will be given to projects on a state priority list that are ready to proceed to construction within 12 months of enactment of the bill (Feb. 17, 2010).

How do I apply for funding?

The Environmental Protection Agency urges interested utilities to immediately contact their own state SRF officials for information about applying for funds. Download a state-by-state roster of SRF officials here.

The ARRA mandates that products used must be American-made. What does that mean, exactly?

The Buy American provision of the ARRA mandates that: “none of the funds appropriated otherwise made available by this Act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel, and manufactured goods used in the project are produced in the United States.”

Generally speaking, the ARRA Buy American requirement provides that:

No foreign iron, steel, and manufactured goods are permitted;
For use in a project for the construction, alteration, maintenance, or repair of any public building or public work;
If the funding for the project is made available by the ARRA.

What are the exceptions in U.S. domestic law to the Buy American mandate?

There are three principal exceptions under U.S. domestic law to the Buy American requirement. They are:

Where applying the Buy American requirement would be inconsistent with the public interest;
Where the iron, steel, and the relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; and
Where inclusion of iron, steel, and manufactured goods produced in the United States would increase the cost of the overall project by more than 25 percent.

What does it mean that the “Buy American section shall be applied in a manner consistent with U.S. obligations under international agreements”?

The ARRA’s “Buy American” section presumably will be applied under U.S. domestic law in a manner that is consistent with U.S. international legal obligations.

At the outset, the trade agreement provision applies only if the foreign goods at issue are manufactured in a country that is a signatory to an applicable trade agreement. It is important to note that China, Brazil, India, Taiwan, Malaysia, Thailand, Russia, and Vietnam, among others, are not party to any trade agreement with the United States that requires equal treatment for their goods, and therefore, goods from these countries may not be used on projects funded by ARRA funds.

Even if the goods are from a country that is a signatory to a trade agreement, however, the trade agreement provision applies only to purchases by a U.S. federal, sub-federal, or other entity that is subject to the U.S. obligations under the trade agreement. In other words, whether they are allowed on a project depends upon what U.S. government entity is procuring the goods, and whether the size of the project meets a specified dollar threshold. Countries that are party to this agreement must meet a minimum dollar threshold for WTO-compliant projects. For example, iron and steel products manufactured in Korea can only be used on projects with a total project cost of $22 million or more. Such projects still carry a provision that materials be purchased by specific, approved entities.

Iron and steel products that are party to the NAFTA trade agreement apply only to projects with direct federal procurement. Because no state, county, municipal or local entities are listed in the NAFTA annex, trade agreement exceptions are not applicable to their purchases. Therefore, goods from Mexico or Canada may not be used on ARRA-funded projects at the state, county or local level.

For more on this, send us an email or call us at (205) 871-9774. Or download a PDF outlining McWane’s position on the law’s “Buy American” provisions.

What happens if I fail to comply with the “Buy American” provisions of the act?

Failure to comply with the “Buy American” provisions could result in the following:

Termination of the contract for reason of default
A report being filed with the agency suspension or debarment official
Or, if noncompliance appears fraudulent, criminal investigation may ensue.

Can the funds be used to purchase land?

No. Funds may not be used to acquire land or a conservation easement for source water protection, to implement source water protection measures, or to establish or implement wellhead protection programs.

I’ve heard that McWane has a poor environmental, health and safety (EHS) record. What is the story there?

Following one of the most impressive EHS turn-arounds in history, McWane is committed to leading the way for American manufacturing in the 21st century. That commitment begins with respect for our environment and dedication to the safety of our employees, while adhering to the principle of continuous improvement. Over the last decade, we have spent more than $300 million ensuring that our operations are safe for our employees and the environment. As a result, we operate some of the most modern, efficient, and safe facilities in the industry.

Take a deeper look at McWane’s EHS record.