The syntax for the @ font-face src descriptor value is given as
[ [ format( # )]? | ] #
Later in the css-fonts-4 draft, in "Terms defined by reference", it states that is defined in css-values-3. This is a useful addition since fonts level 3 gave no specification for this.
However, css-fonts-3 and the css-fonts-4 draft also discuss use of a src value with "local(...)". The css-values-3 doesn't mention this. Thus, formally per these specs, it's not clear how "local(...)" is syntactically valid, even though it appears that the intent is to allow it.
Thus, the src descriptor syntax should be revised to include |, with the latter defined, or else some external reference should provide that.