House, Senate strike deal on “Buy American” iron and steel bill

Members of a legislative conference committee made several changes to a “Buy American” iron and steel bill that would expand a provision already in effect for the Texas Department of Transportation and the Texas Water Development Board, according to a report released Thursday evening.

Senate Bill 1289 by state Sen. Brandon Creighton, R-Conroe, would require large state projects — such as buildings, roads and bridges — to purchase iron and steel from an American supplier if the cost doesn’t exceed 20 percent more than the price of cheaper, foreign imports. Under the bill, any country's iron and steel can be used if American suppliers aren't prepared to supply a project or there is a compelling state interest.

In the conference committee, lawmakers delayed "Buy American" provisions for water projects until May 2019 — meaning that up until then, water infrastructure projects wouldn’t be required to use American-made iron and steel. A study would be conducted during the interim to assess how using American metal would affect the cost of these projects.

Both chambers now need to sign off on the amended language before the measure can head to the governor’s desk.

The bill's House sponsor, state Rep. Chris Paddie, R-Marshall, said President Donald Trump’s recent “Buy American, Hire American” executive order may help garner momentum for the measure. Last session, a similar measure died in a House committee.

Among the bill's opponents is the Canadian steel industry. Three representatives of the Canadian government wrote earlier this month they were “deeply concerned” with how the bill would affect Texas-Canada trade relations. The letter notes that Canada is the top export destination for U.S. steel products, representing roughly $9.7 billion in trade last year.

Despite this, lawmakers in the conference committee denied the exemption request.