American Iron & Steel Compliance Requirements
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Whether your project is water or wastewater related, if it is funded through the State Revolving Fund (SRF) you will want to pay close attention to the information included on this page which covers the permanent inclusion of American Iron and Steel (AIS) requirements for all SRF-funded projects. This requirement became effective in 2014, but has just recently been implemented by CDPHE. Those who conducted ARRA-funded projects, starting in 2009, have some experience with AIS but now all SRF participants must learn to successfully administer an AIS-compliant project.
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Who has to Comply:
Drinking Water and Water Pollution Control Revolving Loan Fund recipients must "… use iron and steel products that are produced in the United States for projects for the construction, alteration, maintenance, or repair of a public water system or treatment works if the project is funded [in whole or in part] through an assistance agreement executed…" later than January 17, 2014 (EPA Memorandum Re: Implementation of American Iron and Steel Provisions, March 20, 2014, page 1)
What does "...produced in the US" mean?
"...all manufacturing processes, including application of coatings, must take place in the US, with the exception of metallurgical processes involving refinement of steel additives. All manufacturing processes include processes such as melting, refining, forming, rolling, drawing, finishing, fabrication and coating. Further, if a domestic iron and steel product is taken out of the US for any part of the manufacturing process, it becomes foreign source material" (EPA Memo, page 6).
What products have to comply with AIS?
- Products made primarily of iron or steel, i.e. = > 50% of the material costs of the product are reflected in iron and/or steel
- Products permanently incorporated into the project, not removed following construction
- See a list of included products by clicking HERE.
- Products permanently incorporated into the project, not removed following construction
- See a list of included products by clicking HERE.
What products DO NOT have to comply with AIS?
- Products not made primarily of iron or steel, i.e. < 50% of the material costs are tied up in iron and/or steel
- Products not permanently incorporated into the project, removed following construction (i.e. scaffolding, fencing)
- Reused items - provided that the item is not substantially altered from original form/function, and any restoration work does not include the replacement or addition of
foreign iron or steel replacement parts
- See a list of excluded products by clicking HERE.
- Products not permanently incorporated into the project, removed following construction (i.e. scaffolding, fencing)
- Reused items - provided that the item is not substantially altered from original form/function, and any restoration work does not include the replacement or addition of
foreign iron or steel replacement parts
- See a list of excluded products by clicking HERE.
Who is Responsible for Doing What?
Borrower / Loan Recipient
- Accepts ultimate responsibility for AIS compliance through execution
of SRF Loan Agreement - Draft bid package and construction contract with AIS compliance provisions included. Have draft bid and contract documents reviewed and approved by Grants and Loans Unit. (See suggested contract language by clicking HERE). - Require inclusion of AIS-compliance language in all subcontracts and product acquisition agreements. - Address AIS requirements in Pre-bid and Pre-construction meetings, include presentation and discussion of projected master list of AIS products needed for the project. - Collect and review AIS compliance documents provided by Contractor, Sub-contractors, suppliers & manufacturers. - Prepare and submit monthly pay requisitions that include product spreadsheet and borrower certification form at this link: https://www.colorado.gov/pacific/sites/default/files/AIS%20Certification%20-% 20030515.pdf - Perform periodic site visits to review AIS compliance activities. - Maintain all documents that demonstrate AIS compliance. - Prepare waiver requests and submit to CDPHE project manager. |
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Engineering Consultant / Design Professional / Resident Project Representative:
- Design the project for construction with US-made iron and steel products.
- Specify AIS-compliant products in project Plans and Specifications as appropriate, for CDPHE review.
- Assist Borrower in preparation of AIS-compliant bidding and construction contract documents.
- Facilitate creation of a project master list of all products subject to AIS-compliance.
- Assist Borrower with Pre-Bid and Pre-Construction meetings, to address AIS-compliance.
- Review all submittals, requisitions & deliveries for AIS-compliance.
- Review certification letters, and AIS product spreadsheet, with monthly pay requests.
- Specify AIS-compliant products in project Plans and Specifications as appropriate, for CDPHE review.
- Assist Borrower in preparation of AIS-compliant bidding and construction contract documents.
- Facilitate creation of a project master list of all products subject to AIS-compliance.
- Assist Borrower with Pre-Bid and Pre-Construction meetings, to address AIS-compliance.
- Review all submittals, requisitions & deliveries for AIS-compliance.
- Review certification letters, and AIS product spreadsheet, with monthly pay requests.
General Contractor
- Accept AIS-compliance responsibility through execution of construction contract/subcontracts.
- Include AIS requirements in all sub-contracts and supplier/manufacturer/fabricator agreements.
- Review all submittals, requisitions, and deliveries for AIS compliance.
- Acquire and review all supplier/manufacturer/fabricator certification letters for compliance.
- Maintain up-to-date AIS product spreadsheet. See product spreadsheet form by clicking HERE.
- Include AIS requirements in all sub-contracts and supplier/manufacturer/fabricator agreements.
- Review all submittals, requisitions, and deliveries for AIS compliance.
- Acquire and review all supplier/manufacturer/fabricator certification letters for compliance.
- Maintain up-to-date AIS product spreadsheet. See product spreadsheet form by clicking HERE.
Suppliers / Manufacturers / Fabricators
- Determine availability of AIS products as requested and inform contractor of expected lead times for provision of AIS products.
- Provide AIS compliant products to the project.
- Provide certification letters for delivered products to contractor. See example certification letters by clicking below:
Certification Letter 1 Certification Letter 2
- Provide AIS compliant products to the project.
- Provide certification letters for delivered products to contractor. See example certification letters by clicking below:
Certification Letter 1 Certification Letter 2
What about those instances when compliance is not possible?
- If your project calls for products or materials that are included on the list of items that MUST comply with AIS and you cannot acquire or use AIS-compliant products, then
you can request that EPA waive the compliance requirement for that product. The three categories of project-specific waivers that can be requested and one nationwide
waiver that can be used by all projects are included below.
you can request that EPA waive the compliance requirement for that product. The three categories of project-specific waivers that can be requested and one nationwide
waiver that can be used by all projects are included below.
De Minimus:
- Nationwide waivers that pertain to incidental materials in a project, such as screws, fasteners, miscellaneous wire, staples, nails, etc.
- Items within this category that are used on the project must be tracked on a de minimus list and the AIS Product Spreadsheet
- Entire project de minimus list cannot exceed 5% of total project material costs
- Each product cannot exceed 1% of total project material costs
- Items within this category that are used on the project must be tracked on a de minimus list and the AIS Product Spreadsheet
- Entire project de minimus list cannot exceed 5% of total project material costs
- Each product cannot exceed 1% of total project material costs
Quantity and Quality:
- Project specific waiver
- For products that are NOT produced in the US in sufficient and reasonably available quantities, and/or of satisfactory quality
Note: If EPA does not approve the waiver they will indicate a manufacturer who can provide compliant projects.
- For products that are NOT produced in the US in sufficient and reasonably available quantities, and/or of satisfactory quality
Note: If EPA does not approve the waiver they will indicate a manufacturer who can provide compliant projects.
Public Interest:
- Project specific waiver
- Use of AIS products or equipment would be contrary to standards previously adopted by a community, i.e. new equipment that cannot comply with a community standard
and would necessitate retraining of staff, or loss of previous investment, etc and would therefore be contrary to public interest.
- Use of AIS products or equipment would be contrary to standards previously adopted by a community, i.e. new equipment that cannot comply with a community standard
and would necessitate retraining of staff, or loss of previous investment, etc and would therefore be contrary to public interest.
Project Cost:
- Project specific waiver
- Total project costs (labor and materials) would increase more than 25% as a result of using AIS-compliant materials.
- Total project costs (labor and materials) would increase more than 25% as a result of using AIS-compliant materials.
How to Request a Waiver:
Step 1
Borrower prepares a written request for an AIS compliance waiver and submits it to CDPHE via email. Requests may be submitted before, during, or after the construction bid process if one of the three following conditions is met, listed in increasing order of difficulty for approval:
- Needed steel products NOT produced in the US in sufficient quantity or of satisfactory quality
- Applying the AIS requirements would be inconsistent with the public interest
- AIS products will increase project cost by more than 25%
Click the link for an information checklist tool for waiver requests.
- Needed steel products NOT produced in the US in sufficient quantity or of satisfactory quality
- Applying the AIS requirements would be inconsistent with the public interest
- AIS products will increase project cost by more than 25%
Click the link for an information checklist tool for waiver requests.
Step 2
CDPHE reviews the request for completeness, and provides any feedback, then forwards to EPA.
Step 3
EPA publishes the waiver request on its website for 15 days and collects comments. Click HERE to see current and past waiver requests. EPA evaluates requests against requirements in this attachment. EPA researches availability of AIS-compliant products. Following the close of the public comment period, EPA determines to approve or deny waiver requests. Click the link for past project-specific waiver approvals. Start to finish, the waiver process should take 6-9 weeks.
Waiver Resources:
Click the link for past national waiver approvals that may be applicable to your project.
Click the link for past waiver denials or withdrawal samples.
Click the link for past waiver denials or withdrawal samples.
Additional Resources:
CDPHE conducted an AIS webinar on March 8, 2016. The webinar slides as well as the recorded webinar can be found on their website at: https://www.colorado.gov/pacific/cdphe/wq-general-srf-information
In addition, EPA's AIS website has a number of resources to assist you in navigating the new requirements at: https://www.epa.gov/cwsrf/state-revolving-fund-american-iron-and-steel-ais-requirement
If you have any questions on the information provided please contact Susan McCannon.
In addition, EPA's AIS website has a number of resources to assist you in navigating the new requirements at: https://www.epa.gov/cwsrf/state-revolving-fund-american-iron-and-steel-ais-requirement
If you have any questions on the information provided please contact Susan McCannon.
Susan McCannon, Planning & Funding Specialist
Susan.McCannon@FEIEngineers.com
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Susan has more than 17 years of experience in public budget planning and personnel management, strategic planning, and grant-writing. Susan's current experience focuses on evaluating funding and financing options for clients; with an emphasis on identifying program eligibility, budget planning requirements, and managing funding program application processes. Susan also is experienced in developing alternate project delivery contracts for municipal clients.
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