BAA and BABA Compliant Solar Lighting
Do you look for the “Made in USA” imprint when you’re shopping? Nearly two-thirds of U.S. consumers do, and nearly as many are willing to pay a premium for products made here in North America.
Why? Because they recognize that purchasing North American products means not only getting higher-quality goods, but supporting our shared industry, promoting local jobs, and contributing to the economy. It also ensures that products come from manufacturers that follow strict labor laws and helps reduce transportation emissions.
These are all good reasons to buy North American, but if you’re in the market for solar lighting or infrastructure, you may actually be required to use products that are manufactured in the U.S. or compliant with specific trade agreements. Both the Buy American Act (BAA) and the Build America, Buy America Act (BABA) frequently apply to solar lighting projects, and it’s important for customers to understand their differences.
In this article, we’ll explain what they are, where they apply, and how Clear Blue Technologies can help you meet them.
Did you know that Clear Blue Technologies offers BAA and BABA compliant configurations?
While compliance does not come standard on our off-the-shelf units, we can specially manufacture and assemble our Smart Off-Grid systems to meet these strict federal requirements. By leveraging our North American manufacturing capabilities, we can provide the documentation and sourcing you need upon request. Learn more here.
What is the Buy American Act (BAA)?
The BAA is often confused and conflated with BABA, probably because they share many of the same words. However, there are some important differences, starting with the fact that the BAA has been around a lot longer.
Passed by Congress and signed into law by President Hoover in 1933, the BAA was originally intended to kickstart the economy following the Great Depression. It requires the U.S. government to prefer domestic products for ‘direct federal procurement,’ or, as the Made in America Office puts it, “what the Federal government buys for its own use.” (For solar lighting, this includes U.S. military bases, national parks, and correctional facilities.)
To be BAA-compliant, a product generally needs to meet domestic manufacturing criteria. However, there is a crucial exception: The Trade Agreements Act (TAA).
Because Canada is a designated country under the TAA, Clear Blue’s North American-made products can be treated as compliant for U.S. government contracts that exceed a certain threshold. If your project requires BAA compliance, let us know. We can provide a TAA-compliant version of our system to ensure you meet your statutory obligations.
What is the Build America, Buy America Act (BABA)?
Whereas BAA generally applies to federal procurement (where the customer is the U.S. government), BABA applies to any purchase made using federal funds. This includes funding sources like the Investment Tax Credit and Safe Streets and Roads for All grant. This effectively expands the scope to state and local projects, including common solar lighting applications like streets, trails, and parks.
BABA is also a much more recent invention. Enacted by President Biden as part of the Infrastructure, Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL), in November 2021, it requires that all iron, steel, manufactured products, and construction materials used in federally funded projects be produced in the U.S.
Under BABA, items purchased for use in a covered infrastructure project must meet strict requirements regarding where the manufacturing process takes place and the cost of domestic components.
Need a BABA solution? While our standard lights utilize a global supply chain to optimize value, we can provide BABA-compliant builds for federally funded projects. We can also assist in the waiver process when our specific "Smart" technology is required but unavailable from other domestic sources.
What is the Buy America Act?
As if BAA and BABA were not confusing enough, there is a third domestic content requirement to be aware of: The Buy America Act (no ‘n’) of 1982. It is part of the larger Surface Transportation Assistance Act and applies only to federal procurements related to rail and road transportation, including those made by the EPA, FTA, FHWA, FRA, Amtrak, and FAA.
Does BAA or BABA apply to your project?
The quickest way to know your project is subject to BAA or BABA requirements is to check the project specifications. If the information is missing, find out which government agency is funding the project. If it is a federal agency, BAA likely applies. If it is through a grant or loan program administered by the FHW, DOE, or other government agency, it is likely BABA.
Still have questions? Ask us!
Since compliance is not standard on all models, please reach out to our team early in your planning process. We can verify if your project requires a compliant build and quote the appropriate solution.