The U.S. Environmental Protection agency has issued a notice granting a nationwide waiver of the Buy American requirements of the American Recovery and Reinvestment Act, potentially impacting U.S. bearing manufacturers.

The EPA said its waiver applies to de minimis incidental components of water infrastructure projects funded by ARRA. Essentially, it now permits the use of non-domestic iron, steel, and manufactured products when they account for less than 5% of a project's total material costs.

The EPA 5251R9N7 considers these "incidental components" as "nuts and bolts type components whose origins cannot be identified prior to procurement."

Several U.S. bearing manufacturers pointed out the irony to eBearing: U.S. stimulus money, instead of staying with hard-hit domestic bearing manufacturers, could well be spent on bearings manufactured by overseas manufacturers receiving economic stimulus funds in their own countries.

Federal Register 74FR152-39959
Buy American provisions for economic stimulus purposes have always been controversial (as opposed to Buy American requirements for national defense and similar sensitive contracts).

The ARRA economic stimulus bill's original version contained Buy American provisions for U.S.-made iron and steel, and the Senate version requires "all manufactured goods" come from U.S. manufacturers.

However, amid widespread complaints from U.S. trading partners, the ARRA language was later modified somewhat to help avoid the potential for sparking international trade wars. ARRA language has been changed again and now requires only funds be spent so that they do not violate U.S. trade agreements.