South Carolina now requires American-made iron and steel in state-funded construction projects, a law that could reshape procurement for Fort Mill school buildings and local public works.
The State Fiscal Accountability Authority approved implementation guidelines on Tuesday, Oct. 13, for House Bill 4709. The law, signed by the governor on June 30, mandates that iron and steel products permanently incorporated into public works projects be produced in the United States.
The requirement covers buildings, roads, water and sewer systems, and storm drains. It applies to any project paid for with state-appropriated funds, even when the state covers only part of the cost.
The law defines "public entity" to include school districts. That means Fort Mill school construction could fall under the requirement if any state dollars flow into those projects. Fort Mill voters approved a $204 million bond referendum on April 19, 2024, to build a new middle school, a new early childhood education center, and fund technology and renovation needs, according to South Carolina School Boards Association records. Whether those bond-funded projects also receive state appropriations that would trigger the steel mandate is not clear from available records.
State Rep. Richie Yow, the bill's sponsor, said in a statement that he wants South Carolina businesses and workers to benefit when taxpayers invest in infrastructure.
"When taxpayers invest in roads, schools, and infrastructure, I want South Carolina businesses and workers to have the opportunity to benefit from that investment," Yow said, according to WLTX.
South Carolina is home to steel industry operations, including facilities associated with Nucor and Commercial Metals Company, YoCo News reported.
Joseph Von Nessen, a research economist with the University of South Carolina's Darla Moore School of Business, told WLTX the requirements could help create jobs and support local economies. But he cautioned that imported materials can sometimes be cheaper and that increased demand for domestic products could lead to supply shortages.
The law includes exceptions. A project can use foreign steel if domestic products are unavailable in sufficient quantities, if American-made materials would increase total project costs by more than 25%, or if compliance is inconsistent with the public interest. The head of the public entity's procurement unit makes that call. A separate exception allows minimal use of foreign steel for incidental materials when the cost does not exceed 0.1% of a project's total steel and iron costs, or $2,500, whichever is greater.
South Carolina Department of Transportation projects are exempt because they already fall under federal Buy America requirements.
The law took effect when the governor signed it June 30. The State Fiscal Accountability Authority's Oct. 13 guidelines spell out how agencies and school districts should apply the requirements.
