[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4724 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4724
To amend chapter 83 of title 41, United States Code (popularly referred
to as the Buy American Act) and certain other laws with respect to
certain waivers under those laws, to provide greater transparency
regarding exceptions to domestic sourcing requirements, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 22, 2014
Mr. Cicilline introduced the following bill; which was referred to the
Committee on Oversight and Government Reform, and in addition to the
Committees on Transportation and Infrastructure and Financial Services,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
A BILL
To amend chapter 83 of title 41, United States Code (popularly referred
to as the Buy American Act) and certain other laws with respect to
certain waivers under those laws, to provide greater transparency
regarding exceptions to domestic sourcing requirements, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``21st Century Buy American Act''.
SEC. 2. INCREASE OF DOMESTIC CONTENT PERCENTAGE TO 60 PERCENT.
Section 8301 of title 41, United States Code, is amended by adding
at the end the following new paragraph:
``(3) Substantially all.--Articles, materials, or supplies
shall be treated as made substantially all from articles,
materials, or supplies mined, produced, or manufactured in the
United States, if the cost of the domestic components of such
articles, materials, or supplies exceeds 60 percent of the
total cost of all components of such articles, materials, or
supplies.''.
SEC. 3. CRITERIA REQUIRED FOR USE OF OVERSEAS EXCEPTION.
Section 8302 of title 41, United States Code, is amended by adding
at the end the following new subsection:
``(c) Criteria for Use of Overseas Exception.--
``(1) In general.--The exception under subsection (a)(2)(A)
for articles, materials, or supplies to be acquired for use
outside the United States may not be used unless one of the
following criteria is met:
``(A) The articles, materials, or supplies are
needed on an urgent basis.
``(B) The articles, materials, or supplies are to
be purchased using a local supplier.
``(C) A cost analysis described in paragraph (2)
demonstrates that the articles, materials, or supplies
to be acquired (if acquired from a company
manufacturing in the United States) would be more than
50 percent more expensive for the Federal agency
acquiring the articles, materials, or supplies.
``(2) Cost analysis.--In any case in which articles,
materials, or supplies are to be acquired for use outside the
United States and are not needed on an urgent basis or are not
to be purchased using a local supplier, before entering into a
contract an analysis shall be made of the difference in the
cost of acquiring the articles, materials, or supplies from a
company manufacturing the articles, materials, or supplies in
the United States (including the cost of shipping) and the cost
of acquiring the articles, materials, or supplies from a
company manufacturing the articles, materials, or supplies
outside the United States (including the cost of shipping).''.
SEC. 4. CRITERIA REQUIRED FOR USE OF PUBLIC INTEREST EXCEPTION.
(a) Buy American Act.--Section 8302 of title 41, United States
Code, as amended by section 3, is further amended by adding at the end
the following new subsection:
``(d) Criteria for Use of Public Interest Exception.--In
determining whether a public interest exception shall be applied under
subsection (a), the head of a Federal agency shall--
``(1) consider the short-term and long-term effects of
applying such exception on employment within the United States,
taking into account information provided by entities that
manufacture the articles, materials, or supplies concerned in
the United States; and
``(2) determine that preserving or increasing employment
within the United States is consistent with the public
interest.''.
(b) Federal Transit Administration Funds.--Section 5323(j) of title
49, United States Code, is amended by adding at the end the following
new paragraph:
``(10) Criteria for use of public interest waiver.--In
determining whether a public interest waiver shall be issued
under paragraph (2)(A), the Secretary shall--
``(A) consider the short-term and long-term effects
of applying such waiver on employment within the United
States, taking into account information provided by
entities that produce the steel, iron, and goods
concerned in the United States; and
``(B) determine that preserving or increasing
employment within the United States is consistent with
the public interest.''.
(c) Federal Highway Administration Funds.--Section 313 of title 23,
United States Code, is amended by adding at the end the following new
subsection:
``(h) Criteria for Use of Public Interest Finding.--In determining
whether a public interest finding shall be made under subsection
(b)(1), the Secretary shall--
``(1) consider the short-term and long-term effects of
making such finding on employment within the United States,
taking into account information provided by entities that
produce the materials or products concerned in the United
States; and
``(2) determine that preserving or increasing employment
within the United States is consistent with the public
interest.''.
(d) AMTRAK Funds.--Section 24305(f) of title 49, United States
Code, is amended by adding at the end the following new paragraph:
``(5) In deciding whether a public interest exemption shall be
issued under paragraph (4)(A)(i), the Secretary shall--
``(A) consider the short-term and long-term effects of
issuing such exemption on employment within the United States,
taking into account information provided by entities that
manufacture the articles, material, or supplies concerned in
the United States; and
``(B) determine that preserving or increasing employment
within the United States is consistent with the public
interest.''.
(e) Federal Railroad Administration High Speed Rail Program
Funds.--Section 24405(a) of title 49, United States Code, is amended by
adding at the end the following new paragraph:
``(12) In determining whether a public interest waiver shall be
granted under paragraph (2)(A), the Secretary shall--
``(A) consider the short-term and long-term effects of
granting such waiver on employment within the United States,
taking into account information provided by entities that
produce the steel, iron, or goods concerned in the United
States; and
``(B) determine that preserving or increasing employment
within the United States is consistent with the public
interest.''.
(f) Federal Aviation Administration Funds.--Section 50101 of title
49, United States Code, is amended by adding at the end the following
new subsection:
``(d) Criteria for Use of Public Interest Waiver.--In determining
whether a public interest waiver shall be granted under subsection
(b)(1), the Secretary shall--
``(1) consider the short-term and long-term effects of
granting such waiver on employment within the United States,
taking into account information provided by entities that
produce the steel or goods concerned in the United States; and
``(2) determine that preserving or increasing employment
within the United States is consistent with the public
interest.''.
(g) Water Pollution Prevention and Control Grants for Construction
of Treatment Works.--Section 1295 of title 33, United States Code, is
amended--
(1) by inserting ``(a) In General.--'' before
``Notwithstanding''; and
(2) by adding at the end the following new subsection:
``(b) Criteria for Use of Public Interest Exception.--In
determining whether a public interest exception shall be applied under
subsection (a), the Administrator shall--
``(1) consider the short-term and long-term effects of
applying such exception on employment within the United States,
taking into account information provided by entities that
manufacture the articles, materials, or supplies concerned in
the United States; and
``(2) determine that preserving or increasing employment
within the United States is consistent with the public
interest.''.
SEC. 5. TRANSPARENCY REQUIREMENTS.
(a) Requirement for Agencies To Notify OMB.--Each agency that
applies an exception to, or grants a waiver under, chapter 83 of title
41, United States Code (popularly referred to as the Buy American Act)
shall submit to the Director of the Office of Management and Budget a
notification of the application of the exception or the grant of a
waiver and a statement describing the procurement and the exception
being applied or waiver granted.
(b) Requirement for Director of OMB To Post on Web Site.--Within 7
days after receipt of any notification under subsection (a), the
Director of the Office of Management and Budget shall post the
notification on a central, publicly accessible website of the Office.
(c) Definition of Agency.--In this section, the term ``agency'' has
the meaning given under section 551 of title 5, United States Code.
SEC. 6. LOANS AND LOAN GUARANTEES TO DOMESTIC MANUFACTURERS UNDER
DEFENSE PRODUCTION ACT.
(a) Program Authorized.--The President, acting through the
Secretary of Defense, may establish and carry out a program to make or
guarantee loans under title III of the Defense Production Act (50
U.S.C. App. 2091 et seq.) to eligible entities in accordance with this
section.
(b) Eligibility Requirements.--The Secretary of Defense shall
establish eligibility requirements for purposes of the loans or loan
guarantees under this section in order to provide assistance to any
entity that--
(1) is a manufacturer in the United States;
(2) is a firm certified as eligible to apply for adjustment
assistance under section 251(c) of the Trade Act of 1974 (19
U.S.C. 2341(c)); and
(3) meets one of the following criteria:
(A) The entity mines, produces, or manufactures a
nonavailable item.
(B) The entity is the last remaining manufacturer
of an item in the United States, as determined by the
Secretary of Defense, and can prove hardship because of
foreign competition.
(C) The entity is the last remaining manufacturer
of an item in the United States and that item is
considered to be vital for national security purposes
by the Department of Defense or another department or
agency of the United States.
(c) Amount of Loan or Loan Guarantee.--The amount of any loan made
or guaranteed under this section may not exceed $5,000,000 per entity.
(d) Use of Funds.--Each eligible entity receiving a loan or loan
guarantee under this section shall use the funds of the loan made or
guaranteed only for one or more of the following purposes:
(1) Increasing its ability to compete for a Government
contract for a nonavailable item.
(2) Increasing its ability to produce a nonavailable item.
(3) Increasing its capacity to produce items that are vital
to national security.
(e) Application Requirements.--To receive a loan or loan guarantee
under this section, an eligible entity shall submit an application to
the Secretary of Defense at such time, in such manner, and containing
such information as the Secretary may require. At a minimum, the
application shall include a statement regarding the number of direct
full-time domestic jobs expected to be created or retained as a result
of the loan made or guaranteed, but such statement shall not be the
sole factor used in determining the award of the loan or loan
guarantee.
(f) Annual Evaluation of Loan or Loan Guarantee Recipients by
Department of Defense.--The Secretary of Defense each year shall
evaluate recipients of loans or loan guarantees under this section to
determine the proper allocation of loan funds that are loaned or
guaranteed.
(g) Definition of Nonavailable Item.--In this section, the term
``nonavailable item'' means any of the following:
(1) An article, material, or supply--
(A) that has been determined by a Federal agency,
pursuant to chapter 83 of title 41, United States Code
(popularly referred to as the Buy American Act), to not
be mined, produced, or manufactured in the United
States in sufficient and reasonably available
commercial quantities of a satisfactory quality; or
(B) that is listed on the list of nonavailable
articles under subpart 25.104 of the Federal
Acquisition Regulation.
(2) An article or item--
(A) that is described in section 2533a(b) of title
10, United States Code, and grown, reprocessed, reused,
or produced in the United States; and
(B) satisfactory quality and sufficient quantity of
which cannot be procured as and when needed at United
States market prices, as determined by the Secretary of
Defense or the Secretary of the military department
concerned, pursuant to section 2533a(c) of such title.
(3) Compliant specialty metal--
(A) as defined in section 2533b(b) of title 10,
United States Code; and
(B) satisfactory quality and sufficient quantity of
which, and in the required form, cannot be procured as
and when needed, as determined by the Secretary of
Defense or the Secretary of the military department
concerned, pursuant to such section 2533b(b).
(4) An item listed in subsection (a) of section 2534 of
title 10, United States Code, if the Secretary determines,
under subsection (d)(4) of such section, that satisfactory
quality of the item manufactured by an entity that is part of
the national technology and industrial base (as defined in
section 2500(1) of such title) is not available.
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