August 11, 2023

Industry Associations Warn of Potential 'Buy American' Snags

Letter to White House outlines key concerns and proposes solutions for BABA implementation

A coalition of prominent industry associations that impact the commercial lighting sector have sent a joint letter to United States Senior Advisor and Infrastructure Coordinator Mitch Landrieu and Senior Advisor to the President for Clean Energy Innovation and Implementation John Podesta.

The letter signed by six organizations including National Electrical Manufacturers Association (NEMA), National Association of Electrical Distributors (NAED) and National Electrical Contractors Association (NECA), details concerns and suggestions regarding the implementation of BABA (Build America, Buy America ) domestic content preferences, and it emphasizes three crucial points that are especially pertinent to the business community:

ARTICLE CONTINUES BELOW

Need for Clarity and Consistency in Implementation:

The associations express concern over the proposed guidance for implementing BABA. The letter argues that an approach that lacks nuance and consideration of domestic manufacturing gaps may hinder the administration's infrastructure goals. It urges the administration to provide clarity, consistency and a strategic approach that reflects the realities faced by U.S. manufacturers, further complicated by the current global geopolitical environment.

Avoiding Unintended Consequences and Ensuring Fair Competition:

The letter warns that the current BABA proposal could lead to project delays, cost overruns, or complete project deferrals, all of which would be counterproductive to growing the U.S. economy. It also highlights the lack of alignment with federal government’s own domestic content policies, leading to an uneven playing field in competitive grant programs. The industry leaders seek a pragmatic regulatory landscape that allows for adequate time, flexibility, and continued support to comply with domestic content preferences.

Leveraging Trade Partnerships and Communicating a Unified Message:

The industry coalition emphasizes the importance of maintaining effective cooperation with foreign allies to eliminate bottlenecks and secure supply chains. It warns that BABA and other domestic content policies send conflicting messages regarding the administration's priorities for supply chain risk reduction. The letter urges the administration to work collaboratively with trade partners to exert pressure on geopolitical adversaries like China and Russia and to facilitate a smooth transition toward a clean energy future.

The letter represents a concerted effort by the trade associations to engage with the Biden-Harris Administration, offering their insights and recommendations to capitalize on the historic investments made in America's economy through the Infrastructure Investment and Jobs Act (IIJA), Inflation Reduction Act (IRA), and CHIPS and Science Act (CHIPS Act).

The six trade associations that signed the letter are: