80 FR 30319 - Buy America Waiver Notification

DEPARTMENT OF TRANSPORTATION
Federal Highway Administration

Federal Register Volume 80, Issue 101 (May 27, 2015)

Page Range		30319-30320
FR Document		2015-12759

This notice provides information regarding FHWA's finding that a Buy America waiver is appropriate for the obligation of Federal-aid funds for 21 State projects involving the acquisition of vehicles and equipment on the condition that they be assembled in the U.S.

Federal Register, Volume 80 Issue 101 (Wednesday, May 27, 2015)

[Federal Register Volume 80, Number 101 (Wednesday, May 27, 2015)]
[Notices]
[Pages 30319-30320]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-12759]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration


Buy America Waiver Notification

AGENCY: Federal Highway Administration (FHWA), Department of 
Transportation (DOT).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice provides information regarding FHWA's finding that 
a Buy America waiver is appropriate for the obligation of Federal-aid 
funds for 21 State projects involving the acquisition of vehicles and 
equipment on the condition that they be assembled in the U.S.

DATES: The effective date of the waiver is May 28, 2015.

FOR FURTHER INFORMATION CONTACT: For questions about this notice, 
please contact Mr. Gerald Yakowenko, FHWA Office of Program 
Administration, 202-366-1562, or via email at gerald.yakowenko@dot.gov. 
For legal questions, please contact Mr. Jomar Maldonado, FHWA Office of 
the Chief Counsel, 202-366-1373, or via email at 
jomar.maldonado@dot.gov. Office hours for the FHWA are from 8:00 a.m. 
to 4:30 p.m., e.t., Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION:

Electronic Access

    An electronic copy of this document may be downloaded from the 
Federal Register's home page at http://www.archives.gov and the 
Government Printing Office's database at http://www.access.thefederalregister.org/nara.

Background

    This notice provides information regarding FHWA's finding that a 
Buy America waiver is appropriate for the obligation of Federal-aid 
funds for 21 State projects involving the acquisition of vehicles 
(including sedans, vans, pickups, trucks, buses, and street sweepers) 
and equipment (such as snooper truck and trail grooming equipment) on 
the condition that they be assembled in the U.S. The waiver would apply 
to approximately 249 vehicles. The requests, available at http://www.fhwa.dot.gov/construction/contracts/cmaq150325.cfm, are 
incorporated by reference into this notice. These projects are being 
undertaken to implement air quality improvement, safety, and mobility 
goals under FHWA's Congestion Mitigation and Air Quality Improvement 
Program; National Bridge and Tunnel Inventory and Inspection Program; 
and the Recreational Trails Program.
    Title 23, Code of Federal Regulations, section 635.410 requires 
that steel or iron materials (including protective coatings) that will 
be permanently incorporated in a Federal-aid project must be 
manufactured in the U.S. For FHWA, this means that all the processes 
that modified the chemical content, physical shape or size, or final 
finish of the material (from initial melting and mixing, continuing 
through the bending and coating) occurred in the U.S. The statute and 
regulations create a process for granting waivers from the Buy America 
requirements when its application would be inconsistent with the public 
interest or when satisfactory quality domestic steel and iron products 
are not sufficiently available. In 1983, FHWA determined that it was 
both in the public interest and consistent with the legislative intent 
to waive Buy America for manufactured products other than steel 
manufactured products. However, FHWA's national waiver for manufactured 
products does not apply to the requests in this notice because they 
involve predominately steel and iron manufactured products. The FHWA's 
Buy America requirements do not have special provisions for applying 
Buy America to ``rolling stock'' such as vehicles or vehicle components 
(see 49 U.S.C. 5323(j)(2)(C), 49 CFR 661.11, and 49 U.S.C. 
24405(a)(2)(C) for examples of Buy America rolling stock provisions for 
other DOT agencies).
    Based on all the information available to the agency, FHWA 
concludes that there are no domestic manufacturers that produce the 
vehicles and vehicle components identified in this notice in such a way 
that their steel and iron elements are manufactured domestically. The 
FHWA's Buy America requirements were tailored to the types of products 
that are typically used in highway construction, which generally meet 
the requirement that steel and iron materials be manufactured 
domestically. In today's global industry, vehicles are assembled with 
iron and steel components that are manufactured all over the world. The 
FHWA is not aware of any domestically produced vehicle on the market 
that meets FHWA's Buy America requirement to have all its iron and 
steel be manufactured exclusively in the U.S. For example, the 
Chevrolet Volt, which was identified by many commenters in a November 
21, 2011, Federal Register Notice (76 FR 72027) as a car that is made 
in the U.S., is comprised of only 45 percent of U.S. and Canadian 
content according to the National Highway Traffic Safety 
Administration's Part 583 American Automobile Labeling Act Report Web

[[Page 30320]]

page (http://www.nhtsa.gov/Laws+&+Regulations/Part+583+American+Automobile+Labeling+Act+(AALA)+Reports). Moreover, 
there is no indication of how much of this 45 percent content is U.S.-
manufactured (from initial melting and mixing) iron and steel content.
    In accordance with Division K, section 122 of the ``Consolidated 
and Further Continuing Appropriations Act, 2015'' (P.L. 113-235), FHWA 
published a notice of intent to issue a waiver on its Web site at 
http://www.fhwa.dot.gov/construction/contracts/waivers.cfm?id=106 on 
March 25, 2015. The FHWA received six comments in response to the 
publication. Four commenters expressed support for granting the waiver. 
Two commenters opposed the waiver. One commenter opposed granting the 
waiver indicating that granting large quantity blanket waivers was not 
the intent of Congress. Another commenter argued for establishing a 
reduced share or a penalty program instead of granting the waiver. The 
commenter questioned the grant applicants' decisions to request funding 
for new vehicles instead of converting existing vehicles to Compressed 
Natural Gas (CNG) vehicles and to request funding for CNG school buses. 
The commenter also indicated the lack of connection between congestion 
and air quality mitigation with recreational trail snow grooming 
equipment. The FHWA notes that this equipment would be funded with 
funds made available under the Recreational Trails Program. None of the 
commenters objecting to the waiver identified a manufacturer that meets 
the Buy America requirements for the vehicles and equipment listed in 
the March 25, 2015 notice.
    Based on FHWA's conclusion that there are no domestic manufacturers 
that can produce the vehicles and equipment identified in this notice 
in such a way that steel and iron materials are manufactured 
domestically, and after consideration of the comments received, FHWA 
finds that application of FHWA's Buy America requirements to these 
products is inconsistent with the public interest (23 U.S.C. 313(b)(1) 
and 23 CFR 635.410(c)(2)(i)). However, FHWA believes that it is in the 
public interest and consistent with the Buy America requirements to 
impose the condition that the vehicles and the vehicle components be 
assembled in the U.S. Requiring final assembly to be performed in the 
U.S. is consistent with past guidance to FHWA Division Offices on 
manufactured products (see Memorandum on Buy America Policy Response, 
Dec. 22, 1997, http://www.fhwa.dot.gov/programadmin/contracts/122297.cfm). A waiver of the Buy America requirement without any regard 
to where the vehicle is assembled would diminish the purpose of the Buy 
America requirement. Moreover, in today's economic environment, the Buy 
America requirement is especially significant in that it will ensure 
that Federal Highway Trust Fund dollars are used to support and create 
jobs in the U.S. This approach is similar to the conditional waivers 
previously given for various vehicle projects. Thus, so long as the 
final assembly of the 21 State projects occurs in the U.S., applicants 
to this waiver request may proceed to purchase these vehicles and 
equipment consistent with the Buy America requirement.
    In accordance with the provisions of section 117 of the ``Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 
for Users, Technical Corrections Act of 2008'' (Pub. L. 110-244), FHWA 
is providing this notice of its finding that a public interest waiver 
of Buy America requirements is appropriate on the condition that the 
vehicles and equipment identified in the notice be assembled in the 
U.S. The FHWA invites public comment on this finding for an additional 
15 days following the effective date of the finding. Comments may be 
submitted to FHWA's Web site via the link provided to the waiver page 
noted above.

(Authority: 23 U.S.C. 313; Pub. L. 110-161, 23 CFR 635.410)

    Issued on: May 19, 2015.
Gregory G. Nadeau,
Acting Administrator, Federal Highway Administration.
[FR Doc. 2015-12759 Filed 5-26-15; 8:45 am]
 BILLING CODE 4910-22-P

Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Notices 30319

the Queensland East Coast Trawl DEPARTMENT OF TRANSPORTATION Title 23, Code of Federal Regulations,
Fishery, and the Torres Strait Prawn section 635.410 requires that steel or
Fishery are eligible for entry under this Federal Highway Administration iron materials (including protective
provision. For France, shrimp harvested coatings) that will be permanently
in the French Guiana domestic trawl Buy America Waiver Notification incorporated in a Federal-aid project
fishery are eligible for entry under this AGENCY: Federal Highway must be manufactured in the U.S. For
provision. An official of the competent Administration (FHWA), Department of FHWA, this means that all the processes
domestic fisheries authority for the Transportation (DOT). that modified the chemical content,
country where the shrimp were ACTION: Notice.
physical shape or size, or final finish of
harvested must sign the DS–2031 form the material (from initial melting and
accompanying these imports into the SUMMARY: This notice provides mixing, continuing through the bending
United States. information regarding FHWA’s finding and coating) occurred in the U.S. The
In addition, the Department has that a Buy America waiver is statute and regulations create a process
determined that shrimp harvested in the appropriate for the obligation of for granting waivers from the Buy
Spencer Gulf region in Australia and Federal-aid funds for 21 State projects America requirements when its
Mediterranean red shrimp (Aristeus involving the acquisition of vehicles application would be inconsistent with
antennatus) harvested in the and equipment on the condition that the public interest or when satisfactory
Mediterranean Sea by Spain may be they be assembled in the U.S. quality domestic steel and iron products
exported to the United States under the DATES: The effective date of the waiver are not sufficiently available. In 1983,
DS–2031 section 7(A)(4) provision for is May 28, 2015. FHWA determined that it was both in
‘‘shrimp harvested in a manner or under FOR FURTHER INFORMATION CONTACT: For the public interest and consistent with
circumstances determined by the questions about this notice, please the legislative intent to waive Buy
Department of State not to pose a threat contact Mr. Gerald Yakowenko, FHWA America for manufactured products
of the incidental taking of sea turtles.’’ Office of Program Administration, 202– other than steel manufactured products.
An official of the Government of 366–1562, or via email at However, FHWA’s national waiver for
Australia or Spain must certify the DS– gerald.yakowenko@dot.gov. For legal manufactured products does not apply
2031 form accompanying these imports questions, please contact Mr. Jomar to the requests in this notice because
into the United States. Maldonado, FHWA Office of the Chief they involve predominately steel and
Counsel, 202–366–1373, or via email at iron manufactured products. The
Dated: May 20, 2015.
jomar.maldonado@dot.gov. Office hours FHWA’s Buy America requirements do
David A. Balton, not have special provisions for applying
Deputy Assistant Secretary of State for
for the FHWA are from 8:00 a.m. to 4:30
p.m., e.t., Monday through Friday, Buy America to ‘‘rolling stock’’ such as
Oceans and Fisheries, Department of State. vehicles or vehicle components (see 49
[FR Doc. 2015–12750 Filed 5–26–15; 8:45 am]
except Federal holidays.
U.S.C. 5323(j)(2)(C), 49 CFR 661.11, and
SUPPLEMENTARY INFORMATION:
BILLING CODE 4710–09–P 49 U.S.C. 24405(a)(2)(C) for examples of
Electronic Access Buy America rolling stock provisions for
An electronic copy of this document other DOT agencies).
DEPARTMENT OF STATE
may be downloaded from the Federal Based on all the information available
Register’s home page at http:// to the agency, FHWA concludes that
[Public Notice: 9148] there are no domestic manufacturers
www.archives.gov and the Government
Printing Office’s database at http:// that produce the vehicles and vehicle
Determination and Certification Under
www.access.gpo.gov/nara. components identified in this notice in
Section 40A of the Arms Export
such a way that their steel and iron
Control Act Background elements are manufactured
Pursuant to section 40A of the Arms This notice provides information domestically. The FHWA’s Buy America
Export Control Act (22 U.S.C. 2781), and regarding FHWA’s finding that a Buy requirements were tailored to the types
Executive Order 13637, as amended, I America waiver is appropriate for the of products that are typically used in
hereby determine and certify to the obligation of Federal-aid funds for 21 highway construction, which generally
Congress that the following countries State projects involving the acquisition meet the requirement that steel and iron
are not cooperating fully with United of vehicles (including sedans, vans, materials be manufactured domestically.
States antiterrorism efforts: pickups, trucks, buses, and street In today’s global industry, vehicles are
sweepers) and equipment (such as assembled with iron and steel
Eritrea snooper truck and trail grooming components that are manufactured all
Iran equipment) on the condition that they over the world. The FHWA is not aware
Democratic People’s Republic of Korea be assembled in the U.S. The waiver of any domestically produced vehicle
(DPRK, or North Korea) would apply to approximately 249 on the market that meets FHWA’s Buy
vehicles. The requests, available at America requirement to have all its iron
Syria http://www.fhwa.dot.gov/construction/ and steel be manufactured exclusively
Venezuela contracts/cmaq150325.cfm, are in the U.S. For example, the Chevrolet
This determination and certification incorporated by reference into this Volt, which was identified by many
mstockstill on DSK4VPTVN1PROD with NOTICES

shall be transmitted to the Congress and notice. These projects are being commenters in a November 21, 2011,
published in the Federal Register. undertaken to implement air quality Federal Register Notice (76 FR 72027)
improvement, safety, and mobility goals as a car that is made in the U.S., is
Dated: May 11, 2015. under FHWA’s Congestion Mitigation comprised of only 45 percent of U.S.
John Kerry, and Air Quality Improvement Program; and Canadian content according to the
Secretary of State. National Bridge and Tunnel Inventory National Highway Traffic Safety
[FR Doc. 2015–12747 Filed 5–26–15; 8:45 am] and Inspection Program; and the Administration’s Part 583 American
BILLING CODE 4710–10–P Recreational Trails Program. Automobile Labeling Act Report Web

VerDate Sep<11>2014 16:45 May 26, 2015 Jkt 235001 PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 E:\FR\FM\27MYN1.SGM 27MYN1

Document Created: 2015-12-15 15:36:28
Document Modified: 2015-12-15 15:36:28

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice.
Dates		The effective date of the waiver is May 28, 2015.
Contact		For questions about this notice, please contact Mr. Gerald Yakowenko, FHWA Office of Program Administration, 202-366-1562, or via email at [email protected] For legal questions, please contact Mr. Jomar Maldonado, FHWA Office of the Chief Counsel, 202-366-1373, or via email at [email protected] Office hours for the FHWA are from 8:00 a.m. to 4:30 p.m., e.t., Monday through Friday, except Federal holidays.
FR Citation		80 FR 30319

80 FR 30319 - Buy America Waiver Notification

DEPARTMENT OF TRANSPORTATIONFederal Highway Administration

Federal Register Volume 80, Issue 101 (May 27, 2015)

DEPARTMENT OF TRANSPORTATION
Federal Highway Administration