Commission hearing spotlights Buy America compliance problems and utility delays that threaten projects

Commissioners at the Transportation Commission meeting devoted substantial time to Buy America compliance and project‑delivery problems after Caltrans and outside speakers warned that utility companies’ resistance or inability to certify domestic supply chains is delaying major projects.

Caltrans staff and federal officials told the commission that Buy America changes under MAP‑21 now extend to many elements of project delivery and may apply to utility relocations. Caltrans staff said roughly 45 projects statewide could be affected, including 32 ‘‘imminent’’ projects and 9 critical projects totaling more than $200 million. Commissioners were urged to press utility companies and coordinate with federal partners to avoid construction delays that could jeopardize federal funding.

Vince Mammano, executive director at the Federal Highway Administration (speaking to the commission), reiterated that Buy America applicability has expanded: if federal funds are used anywhere within the environmental limits of a project, the requirement can apply across the project and to related contracts. Mammano advised agencies to consult FHWA early and to identify exemptions where appropriate. He also emphasized that, where Buy America applies, agencies should work with the federal partners to document compliance.

Caltrans staff said the department is actively engaging FHWA and the utilities but that some large utilities — including parties involved on projects such as the Gerald Desmond Bridge — had not agreed to utility relocation terms containing Buy America clauses. The department reported meetings with high‑level utility representatives and said it was attempting to prioritize a small set of hot‑spot projects; commissioners asked Caltrans to produce a prioritized list.

Local project sponsors and stakeholders described near‑term consequences. The Port of Long Beach said Southern California Edison (SCE) relocation work for the Gerald Desmond Bridge would cost an estimated $15 million; five planned phases of SCE work are subject to Buy America and the port said there was ‘‘no immediate resolution in sight.’’ Port representatives estimated potential design‑builder delay penalties of roughly $162,000–$177,000 per day if SCE does not move its utilities on schedule. The Self Help County Coalition and regional agencies reported similar impacts: utility companies refusing to sign utility relocation agreements with Buy America clauses could block award and start of contracts, including projects with pending allocation or award actions.

Speakers urged the commission to use its convening role and legislative contacts to press for timely resolution. Commissioners suggested involving state legislative leaders and local elected officials to elevate the issue with utility executives, and asked Caltrans to share a short fact sheet and a prioritized list of affected projects so the commission and local agencies can coordinate an urgent response.

Why it matters

Speakers and staff told commissioners that unresolved Buy America compliance for utility relocation work threatens to delay project awards, slow construction starts, increase cost exposure and, in some cases, jeopardize federal funding certifications. Several commissioners said they support Buy America goals but pressed Caltrans and FHWA to develop practical, time‑limited solutions so construction can proceed while statutory requirements are respected.

Provenance

topicintro: "Another issue that we are working very diligently on and we have not solved the issue yet is, Buy America clause with the, specifically with the utility companies..." (Caltrans report excerpt)

topicfinish: "So I would ask on on behalf of the coalition and certainly on behalf of our agency that the commission do anything you possibly can to support director Dougherty in his efforts in working with utility companies to bring them to the table sooner than later..." (Self Help Coalition excerpt)

Ending

Caltrans agreed to share a concise fact sheet and a prioritized list of projects affected by Buy America utility issues; commissioners asked staff to use legislative and federal contacts to press utilities for timely cooperation and to report back at the next meeting.