WeVote
Log In

Bill

Bill

H 4709

US produced iron and steel

2025-2026 Regular Session Introduced by Carl Anderson and 10 co-sponsors

Public works contracts must require that iron or steel products permanently used in projects be produced in the United States, with defined exceptions and administrative guidelines

Act No. 256
0
WeVote Research Nonpartisan
Bill Summary · H 4709

Summary of Bill H 4709 (2025-2026) – South Carolina

Purpose and Intent

  • This bill would amend the South Carolina Code to require public entities entering into contracts for public works projects or for the purchase of materials for such projects to include a requirement that any iron or steel product permanently incorporated into the project be produced in the United States.
  • The goal is to favor domestically produced iron and steel in public infrastructure and related procurements, subject to defined exceptions and administrative guidelines.

Key Provisions

New Section: 11-35-5350

  • Definitions (A for Section 11-35-5350):
    • “Head of the public procurement unit”: the ultimate decision-maker for the state or local procurement unit.
    • “Iron or steel product”: broad list including pipes, bars, wires, forgings, structural steel, steel mill products, castings, hydrants, poles, tanks, valves, coatings, and other construction materials primarily iron or steel.
    • “Made primarily of iron or steel”: more than 50% iron/steel by component cost, volume, or weight.
    • “Manufacturing process”: a process that meaningfully transforms materials into a new finished product.
    • “Produced in the United States”: all manufacturing processes from initial melting through coatings occur in the United States (with a noted exception for certain metallurgical refinements).
    • “Public entity”: the State, its political subdivisions, school districts, or related agencies.
    • “Public works project”: defined as projects funded with state funds or funds administered by a public entity, covering construction, maintenance, repair, renovation, or improvements of buildings, roads, water systems, utilities, and other public facilities.

Mandatory Domestic Preference (B)

  • General Rule: Public entities must include in contracts for public works projects or material purchases the requirement that any iron or steel product permanently incorporated be produced in the United States.

Exceptions and Limitations (B(2)-(3))

  • Permissible Waivers (B(2)):
    • If the head of the public procurement unit determines any of the following:
    • US-produced iron/steel is not available in sufficient quantity or quality.
    • Use of US-produced iron/steel would increase total project cost by more than 25%.
    • Compliance with the US-produced requirement would be contrary to the public interest.
  • Permissible Exceptions (B(3)):
    • (a) Minimal foreign steel/iron allowed if:
    • Foreign material is incidental/ancillary and not separately identified in project specs, and
    • Its cost does not exceed 0.1% of total steel/iron costs or $2,500, whichever is greater.
    • (b) Foreign material comprising 5% or less of the materials cost of an otherwise domestically produced steel/iron product.
  • Electrical Components Exemption (B(4)): Electrical components and related appurtenances necessary for operation or concealment (excluding transmission and distribution poles) are not considered iron/steel products and are exempt from the requirement.

Compliance and Administration (C)-(D)

  • Consistency with International Obligations: The section must be applied so as not to impair any international agreements.
  • Guidelines: The State Fiscal Accountability Authority must develop implementing guidelines and procedures by rule, aligning with federal policies under the American Iron and Steel Preference Law as applied to the Safe Drinking Water Act.

Transportation Exemption (E)

  • The provision does not apply to contracts procured by the Department of Transportation that are subject to Buy America requirements under 23 C.F.R. 635.410.

Effective Date

  • The act becomes effective upon the Governor’s approval.

Legislative History and Status

  • Pre-filing: December 16, 2025
  • Introduced and referred to Committee on Labor, Commerce and Industry (Jan 13, 2026)
  • Referred to Committee: January 2026
  • Committee actions culminated in a favorable report with amendment from the Finance Committee (April 29, 2026)
  • Passed readings and sent to Senate in February 2026

Potential Impacts

Who Is Affected

  • State and local public procurement units (state agencies, counties, municipalities, school districts, and related public entities) engaging in public works projects or purchasing materials for such projects.

Financial and Operational Effects

  • Creates a domestic sourcing requirement for iron/steel products, potentially increasing costs or affecting procurement timelines where US-produced steel is less available or more expensive.
  • Provides explicit waivers and minimal-foreign-substitution thresholds to mitigate cost or availability concerns.
  • Requires agencies to develop and follow guidelines, harmonizing with federal Buy America policies; exemptions for electrical components and DOT projects under Buy America.

Compliance and Oversight

  • Guidelines to be issued by the State Fiscal Accountability Authority; projects must consider international obligations.
  • Exemptions exist for specific electrical components and for DOT projects under federal Buy America rules.

Summary

H 4709 would implement a US-produced iron and steel preference for public works contracts, with defined exceptions and administrative rules. It aims to bolster domestic steel usage in public infrastructure while providing structured relief where US production is unavailable, cost-prohibitive, or not in the public interest. The measure notably excludes DOT projects under existing federal Buy America rules and requires guideline development by the responsible state authority.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.