80_FR_70292 80 FR 70074 - Notice of Intent to Grant a Buy America Waiver to the National Railroad Passenger Corporation (Amtrak) for the Use of Eight (8) Non-Domestic Components in Tier III High-Speed Rail Trainsets

80 FR 70074 - Notice of Intent to Grant a Buy America Waiver to the National Railroad Passenger Corporation (Amtrak) for the Use of Eight (8) Non-Domestic Components in Tier III High-Speed Rail Trainsets

DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration

Federal Register Volume 80, Issue 218 (November 12, 2015)

Page Range70074-70077
FR Document2015-28708

: FRA is issuing this notice to advise the public that it intends to grant Amtrak a waiver from FRA's Buy America policy for the use of eight components of Tier III high-speed rail (HSR) trainsets.

Federal Register, Volume 80 Issue 218 (Thursday, November 12, 2015)
[Federal Register Volume 80, Number 218 (Thursday, November 12, 2015)]
[Notices]
[Pages 70074-70077]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-28708]


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

DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket No. FRA-2012-0033]


Notice of Intent to Grant a Buy America Waiver to the National 
Railroad Passenger Corporation (Amtrak) for the Use of Eight (8) Non-
Domestic Components in Tier III High-Speed Rail Trainsets

AGENCY: Federal Railroad Administration (FRA), United States Department 
of Transportation (DOT).

ACTION: Notice of intent to grant Buy America waiver.

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

SUMMARY: : FRA is issuing this notice to advise the public that it 
intends to grant Amtrak a waiver from FRA's Buy America policy for the 
use of eight components of Tier III high-speed rail (HSR) trainsets.

DATES: Written comments on FRA's determination to grant Amtrak's Buy

[[Page 70075]]

America waiver request should be provided to the FRA on or before 
November 27, 2015.

ADDRESSES: Please submit your comments by one of the following means, 
identifying your submissions by docket number FRA-2012-0033. All 
electronic submissions must be made to the U.S. Government electronic 
site at http://www.regulations.gov. Commenters should follow the 
instructions below for mailed and hand-delivered comments:
    (1) Web site: http://www.regulations.gov. Follow the instructions 
for submitting comments on the U.S. Government electronic docket site;
    (2) Fax: (202) 493-2251;
    (3) Mail: U.S. Department of Transportation, 1200 New Jersey Avenue 
SE., Docket Operations, M-30, Room W12-140, Washington, DC 20590-0001; 
or
    (4) Hand Delivery: Room W12-140 on the first floor of the West 
Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    Instructions: All submissions must reference the ``Federal Railroad 
Administration'' and include docket number FRA-2012-0033. Due to 
security procedures in effect since October 2001, mail received through 
the U.S. Postal Service may be subject to delays. Parties making 
submissions responsive to this notice should consider using an express 
mail firm to ensure the prompt filing of any submissions not filed 
electronically or by hand. Note that all submissions received, 
including any personal information therein, will be posted without 
change or alteration to http://www.regulations.gov. For more 
information, you may review DOT's complete Privacy Act Statement in the 
Federal Register published on April 11, 2000 (65 FR 19477), or visit 
http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Mr. John Johnson, Attorney-Advisor, 
FRA Office of Chief Counsel, 1200 New Jersey Avenue SE., Mail Stop 25, 
Washington, DC 20590, (202) 493-0078, [email protected].

SUPPLEMENTARY INFORMATION: FRA is issuing this notice to advise the 
public that it intends to grant Amtrak a waiver from FRA's Buy America 
policy for the use of the following eight components of Tier III high-
speed rail (HSR) trainsets: (1) Aluminum car body shells (shell 
structure/frame-end, floor, roof, side); (2) Integrated cab/CEM 
structure; (3) vehicle paint; (4) brake control unit; (5) disc brake 
equipment; (6) tread brake equipment/tread cleaners; (7) brake valves, 
and (8) parking brake units (collectively ``Components''). The total 
estimated cost of the Components under this waiver is $108.3 million, 
or 6.8 percent of the estimated $1.6 billion cost for the 28 HSR 
trainsets and spare Components Amtrak will purchase. Amtrak is seeking 
a loan under FRA's Railroad Rehabilitation & Improvement Financing 
(RRIF) loan program to finance its HSR trainset procurement. FRA 
believes a waiver is appropriate because domestically-produced HSR 
Components are not currently available in the United States, and even 
if they could be produced in the United States, they would not be 
delivered within a reasonable time. Although FRA is granting Amtrak's 
request for these Components, Amtrak's HSR trainset supplier must 
assemble the HSR trainsets (other than two (2) prototypes under a 
previous FRA waiver) in the United States using Components and the 
other 126 HSR components the supplier or its contractors will 
manufacture in United States.
    The letter granting Amtrak's request is quoted below:
Bernard F. Reynolds, Vice President--Procurement & Logistics, National 
Railroad Passenger Corporation, 60 Massachusetts Ave NE., Washington, 
DC 20002.

Re: Request for Waiver of Buy America Requirement for Components of 
Next Generation Trainsets

    Dear Mr. Reynolds:
    This letter is in response to your request dated November 3, 2014, 
that the Federal Railroad Administration (FRA) grant the National 
Railroad Passenger Corporation (Amtrak), a waiver from FRA's Buy 
America policy applicable to FRA's Railroad Rehabilitation & 
Improvement Financing (RRIF) loan program, which follows the 
requirements of 49 U.S.C. 24405(a). FRA's Buy America requirement for 
rolling stock, including HSR trainsets, requires domestic final 
assembly of the trainsets and that all the components be manufactured 
in the United States.
    FRA may waive the Buy America requirements if FRA finds that: (A) 
Applying the requirements would be inconsistent with the public 
interest; (B) the steel, iron, and goods manufactured in the United 
States are not produced in sufficient and reasonably available amounts 
or are not of a satisfactory quality; (C) rolling stock or power train 
equipment cannot be bought or delivered to the United States within a 
reasonable time; or (D) including domestic material will increase the 
cost of the overall project by more than 25 percent.
    Amtrak seeks a waiver for the following components of Tier III 
high-speed rail (HSR) trainsets: (1) Aluminum car body shells (shell 
structure/frame-end, floor, roof, side); (2) Integrated cab/CEM 
structure; (3) vehicle paint; (4) brake control unit; (5) disc brake 
equipment; (6) tread brake equipment/tread cleaners; (7) brake valves, 
and (8) parking brake units (Components). For the reasons contained in 
this letter, FRA is granting Amtrak's request.
    Although FRA is granting Amtrak's request for these eight (8) 
Components, Amtrak's HSR supplier or its contractors will manufacture 
the other 126 HSR components, or 94 percent of all components, in the 
United States. Amtrak estimates the total cost of the Components under 
this waiver request is approximately 6.8 percent of the estimated $1.6 
billion cost for the 28 HSR trainsets and spare Components Amtrak will 
purchase. The cost by component per trainset is:

------------------------------------------------------------------------
                                                          Estimated cost
                        Component                          per trainset
------------------------------------------------------------------------
(1) Aluminum car body shells (shell structure/frame-end,      $2,960,000
 roof, side)............................................
(2) Integrated cab/CEM structure........................         $71,000
(3) Vehicle paint.......................................         $78,000
(4) Brake control unit; (5) disc brake equipment; (6)           $659,000
 tread brake equipment/tread cleaners; (7) brake valves,
 and (8) parking brake units............................
------------------------------------------------------------------------
    Total per Trainset..................................      $3,768,000
------------------------------------------------------------------------

    In July 2014, Amtrak issued a Request for Proposal for its 
procurement of HSR trainsets. In October 2014, Amtrak received 
technical proposals from manufacturers in response to its Request for 
Proposals. After reviewing the proposals, Amtrak determined there were 
seven (7) Components of the trainsets' 134 components that each 
manufacturer indicated it could not source domestically. On November 3, 
2014, Amtrak requested from the FRA a Buy America waiver for these 
seven (7) components and the HSR trainset paint (discussed in more 
detail below).
    Coordinating with FRA, in February 2015 Amtrak engaged the 
Department of Commerce's National Institute of Standards and 
Technology's Hollings Manufacturing Extension Partnership (NIST-MEP) to 
scout for domestic manufacturers of the Components. In its April 2015 
report, NIST-MEP did not

[[Page 70076]]

identify any suppliers making the exact Components. NIST-MEP did 
identify a total of 23 potential suppliers that either make products 
similar to the Components or claim to have the capability to 
manufacture the Components. FRA asked Amtrak to investigate whether any 
of the potential suppliers could manufacture the Components. After 
analyzing the NIST-MEP report and Amtrak's report regarding follow-up 
discussions with the potential suppliers, FRA finds that none of the 
potential suppliers currently manufacture the Components.
    FRA supports Amtrak's required procurement timeline because the 
timeline addresses current capacity constraints on the Northeast 
Corridor and increasing demand for passenger rail. Further Amtrak's 
timeline meets FRA's goal of establishing Tier III HSR \1\ in the 
United States as soon as possible. Amtrak wants the HSR trainsets to be 
in revenue service by 2018. To meet this date, the first body shell 
deliveries must arrive approximately seventeen (17) months after notice 
to proceed, which is scheduled for February 2016. Final assembly and 
126 of the 134 trainsets' components will be manufactured in the United 
States. FRA believes that operational Tier III HSR in the United States 
will increase the attractiveness for manufacturers to establish more 
HSR factories in the United States, strengthen the business case for a 
new domestic HSR trainset industry to develop, stimulate the domestic 
supply chain, and bring new high quality jobs to the United States. As 
a result, FRA concludes that none of the NIST-MEP identified suppliers 
could design, test, manufacture, and deliver the Components to meet 
Amtrak's FRA-supported timeline, which means they cannot deliver the 
Components within a reasonable time.
---------------------------------------------------------------------------

    \1\ Tier III HSR trainsets are capable of traveling 220 miles 
per hour.
---------------------------------------------------------------------------

    Here is a summary of FRA's analysis based on Amtrak's and NIST-
MEP's outreach efforts:

------------------------------------------------------------------------
                                    Number of
           Component                potential          FRA findings
                                    suppliers
------------------------------------------------------------------------
(1) Car body Shell.............              12   None of the 12
                                                  potential suppliers
                                                  currently manufacture
                                                  aluminum car body
                                                  shells for passenger/
                                                  HSR trains.
                                                  After learning
                                                  more about the
                                                  requirements of the
                                                  project, 6 of 12
                                                  potential suppliers
                                                  expressed that they
                                                  are not interested in
                                                  the opportunity.
                                                  For the
                                                  remaining 6 potential
                                                  suppliers, FRA found
                                                  at least one of the
                                                  following applied to
                                                  each manufacturer.
                                                 [cir] inexperience
                                                  working with aluminum.
                                                 [cir] no experience
                                                  building passenger/HSR
                                                  aluminum car bodies.
                                                 [cir] no relevant
                                                  experience
                                                  manufacturing aluminum
                                                  car bodies; and/or.
                                                 [cir] have no equipment
                                                  to manufacture larger
                                                  extrusions necessary
                                                  for HSR car body
                                                  shell.
                                                  FRA estimates
                                                  that it could take car
                                                  body shell
                                                  manufacturers a
                                                  minimum of 18 to 24
                                                  months to establish
                                                  the required
                                                  facilities and
                                                  techniques. As a
                                                  result, FRA finds the
                                                  remaining 6 potential
                                                  suppliers not capable
                                                  of manufacturing the
                                                  car body shell within
                                                  a reasonable time.
(2) Integrated cab/CEM                        5   None of the 5
 structure.                                       potential suppliers
                                                  currently manufacture
                                                  CEM structures.
                                                  3 of 5
                                                  potential suppliers
                                                  were not interested in
                                                  the opportunity after
                                                  learning more about
                                                  it.
                                                  For the
                                                  remaining 2 potential
                                                  suppliers, FRA found
                                                  at least one of the
                                                  following applied to
                                                  each manufacturer.
                                                 [cir] no relevant
                                                  experience
                                                  manufacturing CEM
                                                  structures; and/or
                                                 [cir] no experience
                                                  building passenger/HSR
                                                  CEM structures or
                                                  similar relevant
                                                  experience fabricating
                                                  aluminum CEM
                                                  structures.
                                                 FRA estimates it could
                                                  take CEM structure
                                                  manufacturers a
                                                  minimum of 18 to 24
                                                  months to establish
                                                  the required
                                                  facilities and
                                                  techniques. As a
                                                  result, FRA finds the
                                                  remaining 2 potential
                                                  suppliers not capable
                                                  of manufacturing the
                                                  CEM structure shell
                                                  within a reasonable
                                                  time.
(3) Paint......................               3   As applied to
                                                  all 3 potential
                                                  suppliers.
                                                 [cir] Paint must be
                                                  applied where car body
                                                  shells are
                                                  manufactured to
                                                  protect against
                                                  corrosion and
                                                  oxidation while in
                                                  transit to the U.S.
                                                 [cir] The requirements,
                                                  including foreign
                                                  environmental
                                                  standards, for the
                                                  trainsets' paint would
                                                  involve at least one
                                                  year to develop the
                                                  paint, have it tested
                                                  and qualified for this
                                                  particular use, and
                                                  then exported.
                                                 As a result, FRA finds
                                                  that paint cannot be
                                                  manufactured and
                                                  delivered in a
                                                  reasonable time.
Brake System--(4) Brake Control               6   For safety
 Unit; (5) Disc Brake                             critical items such as
 Equipment; (6) Tread Brake                       the brake system, FRA
 Equipment/Tread Cleaners; (7)                    believes the brake
 Brake Valves, and (8) Parking                    system and its
 Brake Units.                                     components must be
                                                  supplied by a single,
                                                  service-proven
                                                  supplier.
                                                  None of the 6
                                                  potential suppliers
                                                  currently manufacture
                                                  brake systems for HSR
                                                  trains.
                                                  5 of 6
                                                  potential suppliers
                                                  have no experience
                                                  manufacturing rail
                                                  brake systems.
                                                 [cir] FRA finds that
                                                  these 5 potential
                                                  suppliers cannot
                                                  supply the brake
                                                  system.
                                                  1 potential
                                                  supplier is a major
                                                  domestic brake system
                                                  supplier that has
                                                  experience
                                                  manufacturing other
                                                  types of non-HSR
                                                  passenger rail brake
                                                  systems.
                                                 [cir] FRA estimates it
                                                  would take at least
                                                  two years to deliver a
                                                  HSR brake system.

[[Page 70077]]

 
                                                 [cir] FRA finds that
                                                  the time to design,
                                                  test, and manufacture
                                                  a HSR brake system
                                                  precludes this
                                                  manufacturer from
                                                  delivering the system
                                                  in a reasonable time.
------------------------------------------------------------------------

    On November 20, 2014, FRA published on its Web site public notice 
of Amtrak's waiver request. FRA received thirteen (13) online comments 
to this notice. Only one of the commenters identified a domestic source 
for any of the Components. The commenter asserted that the potential 
supplier identified in the table above is a major domestic brake system 
supplier and is capable of providing the brake systems. However, as 
described above, FRA has determined that brake systems are not 
domestically available for HSR trainsets nor can the one potential 
supplier deliver a brake system within a reasonable time. Of the 
thirteen (13) comments, ten (10) commenters were in favor of granting 
the waiver and three were against granting the waiver. Several of the 
ten (10) commenters in favor of granting the waiver cited safety as 
their reason. Many commenters also asserted that granting the waiver 
would be necessary to establish HSR in the United States and would lay 
a foundation for future domestic HSR manufacturing.
    The three commenters opposing the waiver argued that granting a 
waiver will lead to more waivers and that manufacturers could produce 
the HSR trainset components in the United States. Though domestic 
production of the HSR trainset components for which a waiver has been 
requested is theoretically possible, FRA believes significant safety, 
capacity, and technology transfer problems would result. Moreover, the 
delays to overcome these issues would negatively impact the schedules 
proposed by Amtrak.
    FRA believes a waiver is appropriate because the Components are not 
manufactured in the United States and because domestically-produced 
Components meeting the specific safety/service-proven, technical, 
design, and schedule needs of Amtrak cannot be delivered within a 
reasonable time. FRA bases its determination on the following:
     All of Amtrak's bidders independently indicated in their 
responses to Amtrak's Request for Proposal that the Components, other 
than vehicle paint, could not be sourced domestically. As noted above, 
the paint may be able to be manufactured domestically but cannot be 
produced and exported in time to for use on the car shell components.
     The National Institute of Standards and Technology's 
Hollings Manufacturing Extension Partnership (NIST-MEP) did not 
identify any domestic manufacturer currently producing the Components.
     Amtrak conducted extensive outreach with manufacturers 
NIST-MEP identified as potential future manufacturers for the non-
available components. FRA agrees with Amtrak's assertion that even if 
any of the identified manufacturers would attempt to produce the 
Components domestically, the Components could not be bought or produced 
in the United States within a reasonable time.
    Pursuant to 49 U.S.C. 24405(a)(4), FRA is publishing notice of its 
decision to grant Amtrak's waiver request in the Federal Register to 
provide notice of such finding and an opportunity for public comment 
after which this waiver will become effective. This waiver applies only 
to the HSR trainset Components, including spares, for Amtrak's HSR 
trainset procurement as identified in its November 3, 2014 waiver 
request. Moreover, excluding assembly of prototype trainsets, which 
have been addressed in a separate waiver, the trainsets must be finally 
assembled in the United States, and all other components that are not 
described in this waiver must have been produced in the United States 
or be the subject of a future waiver.
    Questions about this letter can be directed to, John Johnson, 
Attorney-Advisor, at [email protected] or 202-493-0078.

Sincerely,

Sarah Feinberg
Administrator

Sarah L. Inderbitzin,
Acting Chief Counsel.
[FR Doc. 2015-28708 Filed 11-10-15; 8:45 am]
BILLING CODE 4910-06-P



                                                  70074                     Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices

                                                  certifies that Mr. Watson understands                      FMCSA notes that section 4129 of the                  FMCSA–2015–0336 and click the search
                                                  diabetes management and monitoring,                     Safe, Accountable, Flexible and                          button. When the new screen appears,
                                                  has stable control of his diabetes using                Efficient Transportation Equity Act: A                   click on the blue ‘‘Comment Now!’’
                                                  insulin, and is able to drive a CMV                     Legacy for Users requires the Secretary                  button on the right hand side of the
                                                  safely. Mr. Watson meets the                            to revise its diabetes exemption program                 page. On the new page, enter
                                                  requirements of the vision standard at                  established on September 3, 2003 (68 FR                  information required including the
                                                  49 CFR 391.41(b)(10). His optometrist                   52441).1 The revision must provide for                   specific section of this document to
                                                  examined him in 2015 and certified that                 individual assessment of drivers with                    which each comment applies, and
                                                  he does not have diabetic retinopathy.                  diabetes mellitus, and be consistent                     provide a reason for each suggestion or
                                                  He holds an operator’s license from New                 with the criteria described in section                   recommendation. If you submit your
                                                  York.                                                   4018 of the Transportation Equity Act                    comments by mail or hand delivery,
                                                                                                          for the 21st Century (49 U.S.C. 31305).                  submit them in an unbound format, no
                                                  William T. White                                           Section 4129 requires: (1) Elimination                larger than 81⁄2 by 11 inches, suitable for
                                                    Mr. White, 47, has had ITDM since                     of the requirement for 3 years of                        copying and electronic filing. If you
                                                  2012. His endocrinologist examined him                  experience operating CMVs while being                    submit comments by mail and would
                                                  in 2015 and certified that he has had no                treated with insulin; and (2)                            like to know that they reached the
                                                  severe hypoglycemic reactions resulting                 establishment of a specified minimum                     facility, please enclose a stamped, self-
                                                  in loss of consciousness, requiring the                 period of insulin use to demonstrate                     addressed postcard or envelope.
                                                  assistance of another person, or                        stable control of diabetes before being                     We will consider all comments and
                                                  resulting in impaired cognitive function                allowed to operate a CMV.                                material received during the comment
                                                  that occurred without warning in the                       In response to section 4129, FMCSA                    period and may change this proposed
                                                  past 12 months and no recurrent (2 or                   made immediate revisions to the                          rule based on your comments. FMCSA
                                                  more) severe hypoglycemic episodes in                   diabetes exemption program established                   may issue a final rule at any time after
                                                  the last 5 years. His endocrinologist                   by the September 3, 2003 notice.                         the close of the comment period.
                                                  certifies that Mr. White understands                    FMCSA discontinued use of the 3-year
                                                  diabetes management and monitoring,                     driving experience and fulfilled the                     V. Viewing Comments and Documents
                                                  has stable control of his diabetes using                requirements of section 4129 while                         To view comments, as well as any
                                                  insulin, and is able to drive a CMV                     continuing to ensure that operation of                   documents mentioned in this preamble,
                                                  safely. Mr. White meets the                             CMVs by drivers with ITDM will                           To submit your comment online, go to
                                                  requirements of the vision standard at                  achieve the requisite level of safety                    http://www.regulations.gov and in the
                                                  49 CFR 391.41(b)(10). His optometrist                   required of all exemptions granted                       search box insert the docket number
                                                  examined him in 2015 and certified that                 under 49 U.S.C. 31136 (e).                               FMCSA–2015–0336 and click ‘‘Search.’’
                                                  he does not have diabetic retinopathy.                     Section 4129(d) also directed FMCSA                   Next, click ‘‘Open Docket Folder’’ and
                                                  He holds a Class A CDL from                             to ensure that drivers of CMVs with                      you will find all documents and
                                                  Washington.                                             ITDM are not held to a higher standard                   comments related to the proposed
                                                                                                          than other drivers, with the exception of                rulemaking.
                                                  J. Ryan Wolf                                            limited operating, monitoring and                          Dated: November 5, 2015.
                                                     Mr. Wolf, 39, has had ITDM since                     medical requirements that are deemed                     Larry W. Minor,
                                                  2015. His endocrinologist examined him                  medically necessary.                                     Associate Administrator for Policy.
                                                  in 2015 and certified that he has had no                   The FMCSA concluded that all of the
                                                                                                                                                                   [FR Doc. 2015–28740 Filed 11–10–15; 8:45 am]
                                                  severe hypoglycemic reactions resulting                 operating, monitoring and medical
                                                                                                          requirements set out in the September 3,                 BILLING CODE 4910–EX–P
                                                  in loss of consciousness, requiring the
                                                  assistance of another person, or                        2003 notice, except as modified, were in
                                                  resulting in impaired cognitive function                compliance with section 4129(d).
                                                                                                                                                                   DEPARTMENT OF TRANSPORTATION
                                                  that occurred without warning in the                    Therefore, all of the requirements set
                                                  past 12 months and no recurrent (2 or                   out in the September 3, 2003 notice,                     Federal Railroad Administration
                                                  more) severe hypoglycemic episodes in                   except as modified by the notice in the
                                                  the last 5 years. His endocrinologist                   Federal Register on November 8, 2005                     [Docket No. FRA–2012–0033]
                                                  certifies that Mr. Wolf understands                     (70 FR 67777), remain in effect.
                                                                                                                                                                   Notice of Intent to Grant a Buy America
                                                  diabetes management and monitoring,                     IV. Submitting Comments                                  Waiver to the National Railroad
                                                  has stable control of his diabetes using                                                                         Passenger Corporation (Amtrak) for
                                                  insulin, and is able to drive a CMV                       You may submit your comments and
                                                                                                          material online or by fax, mail, or hand                 the Use of Eight (8) Non-Domestic
                                                  safely. Mr. Wolf meets the requirements                                                                          Components in Tier III High-Speed Rail
                                                  of the vision standard at 49 CFR                        delivery, but please use only one of
                                                                                                          these means. FMCSA recommends that                       Trainsets
                                                  391.41(b)(10). His ophthalmologist
                                                  examined him in 2015 and certified that                 you include your name and a mailing                      AGENCY: Federal Railroad
                                                  he does not have diabetic retinopathy.                  address, an email address, or a phone                    Administration (FRA), United States
                                                  He holds an operator’s license from                     number in the body of your document                      Department of Transportation (DOT).
                                                  Indiana.                                                so that FMCSA can contact you if there                   ACTION: Notice of intent to grant Buy
                                                                                                          are questions regarding your                             America waiver.
                                                  III. Request for Comments                               submission.
                                                                                                            To submit your comment online, go to                   SUMMARY:  : FRA is issuing this notice to
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                     In accordance with 49 U.S.C. 31136(e)
                                                  and 31315, FMCSA requests public                        http://www.regulations.gov and in the                    advise the public that it intends to grant
                                                  comment from all interested persons on                  search box insert the docket number                      Amtrak a waiver from FRA’s Buy
                                                  the exemption petitions described in                                                                             America policy for the use of eight
                                                  this notice. We will consider all                          1 Section 4129(a) refers to the 2003 notice as a
                                                                                                                                                                   components of Tier III high-speed rail
                                                                                                          ‘‘final rule.’’ However, the 2003 notice did not issue   (HSR) trainsets.
                                                  comments received before the close of                   a ‘‘final rule’’ but did establish the procedures and
                                                  business on the closing date indicated                  standards for issuing exemptions for drivers with        DATES: Written comments on FRA’s
                                                  in the date section of the notice.                      ITDM.                                                    determination to grant Amtrak’s Buy


                                             VerDate Sep<11>2014   18:15 Nov 10, 2015   Jkt 238001   PO 00000   Frm 00140   Fmt 4703   Sfmt 4703   E:\FR\FM\12NON1.SGM     12NON1


                                                                            Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices                                                          70075

                                                  America waiver request should be                        (5) disc brake equipment; (6) tread brake             domestic material will increase the cost
                                                  provided to the FRA on or before                        equipment/tread cleaners; (7) brake                   of the overall project by more than 25
                                                  November 27, 2015.                                      valves, and (8) parking brake units                   percent.
                                                  ADDRESSES: Please submit your                           (collectively ‘‘Components’’). The total                 Amtrak seeks a waiver for the
                                                  comments by one of the following                        estimated cost of the Components under                following components of Tier III high-
                                                  means, identifying your submissions by                  this waiver is $108.3 million, or 6.8                 speed rail (HSR) trainsets: (1)
                                                  docket number FRA–2012–0033. All                        percent of the estimated $1.6 billion                 Aluminum car body shells (shell
                                                  electronic submissions must be made to                  cost for the 28 HSR trainsets and spare               structure/frame-end, floor, roof, side);
                                                  the U.S. Government electronic site at                  Components Amtrak will purchase.                      (2) Integrated cab/CEM structure; (3)
                                                  http://www.regulations.gov.                             Amtrak is seeking a loan under FRA’s                  vehicle paint; (4) brake control unit; (5)
                                                  Commenters should follow the                            Railroad Rehabilitation & Improvement                 disc brake equipment; (6) tread brake
                                                  instructions below for mailed and hand-                 Financing (RRIF) loan program to                      equipment/tread cleaners; (7) brake
                                                  delivered comments:                                     finance its HSR trainset procurement.                 valves, and (8) parking brake units
                                                     (1) Web site: http://                                FRA believes a waiver is appropriate                  (Components). For the reasons
                                                  www.regulations.gov. Follow the                         because domestically-produced HSR                     contained in this letter, FRA is granting
                                                  instructions for submitting comments                    Components are not currently available                Amtrak’s request.
                                                  on the U.S. Government electronic                       in the United States, and even if they                   Although FRA is granting Amtrak’s
                                                  docket site;                                            could be produced in the United States,               request for these eight (8) Components,
                                                     (2) Fax: (202) 493–2251;                             they would not be delivered within a                  Amtrak’s HSR supplier or its contractors
                                                     (3) Mail: U.S. Department of                         reasonable time. Although FRA is                      will manufacture the other 126 HSR
                                                  Transportation, 1200 New Jersey                         granting Amtrak’s request for these                   components, or 94 percent of all
                                                  Avenue SE., Docket Operations, M–30,                    Components, Amtrak’s HSR trainset                     components, in the United States.
                                                  Room W12–140, Washington, DC                            supplier must assemble the HSR                        Amtrak estimates the total cost of the
                                                  20590–0001; or                                          trainsets (other than two (2) prototypes              Components under this waiver request
                                                     (4) Hand Delivery: Room W12–140 on                   under a previous FRA waiver) in the                   is approximately 6.8 percent of the
                                                  the first floor of the West Building, 1200              United States using Components and                    estimated $1.6 billion cost for the 28
                                                  New Jersey Avenue SE., Washington,                      the other 126 HSR components the                      HSR trainsets and spare Components
                                                  DC 20590, between 9 a.m. and 5 p.m.,                    supplier or its contractors will                      Amtrak will purchase. The cost by
                                                  Monday through Friday, except Federal                   manufacture in United States.                         component per trainset is:
                                                  holidays.                                                  The letter granting Amtrak’s request is
                                                     Instructions: All submissions must                                                                                                                    Estimated cost
                                                                                                          quoted below:                                                     Component                       per trainset
                                                  reference the ‘‘Federal Railroad                        Bernard F. Reynolds, Vice President—
                                                  Administration’’ and include docket                     Procurement & Logistics, National                     (1) Aluminum car body shells
                                                  number FRA–2012–0033. Due to                            Railroad Passenger Corporation, 60                      (shell structure/frame-end,
                                                  security procedures in effect since                     Massachusetts Ave NE., Washington, DC                   roof, side) ..........................      $2,960,000
                                                  October 2001, mail received through the                 20002.                                                (2) Integrated cab/CEM
                                                  U.S. Postal Service may be subject to                                                                           structure ............................         $71,000
                                                                                                          Re: Request for Waiver of Buy America                 (3) Vehicle paint ...................            $78,000
                                                  delays. Parties making submissions                           Requirement for Components of                    (4) Brake control unit; (5)
                                                  responsive to this notice should                             Next Generation Trainsets                          disc brake equipment; (6)
                                                  consider using an express mail firm to                                                                          tread brake equipment/
                                                                                                             Dear Mr. Reynolds:
                                                  ensure the prompt filing of any                                                                                 tread cleaners; (7) brake
                                                                                                             This letter is in response to your
                                                  submissions not filed electronically or                                                                         valves, and (8) parking
                                                                                                          request dated November 3, 2014, that
                                                  by hand. Note that all submissions                                                                              brake units ........................          $659,000
                                                                                                          the Federal Railroad Administration
                                                  received, including any personal
                                                                                                          (FRA) grant the National Railroad                           Total per Trainset ..........           $3,768,000
                                                  information therein, will be posted
                                                                                                          Passenger Corporation (Amtrak), a
                                                  without change or alteration to http://
                                                                                                          waiver from FRA’s Buy America policy                     In July 2014, Amtrak issued a Request
                                                  www.regulations.gov. For more
                                                                                                          applicable to FRA’s Railroad                          for Proposal for its procurement of HSR
                                                  information, you may review DOT’s
                                                                                                          Rehabilitation & Improvement                          trainsets. In October 2014, Amtrak
                                                  complete Privacy Act Statement in the
                                                                                                          Financing (RRIF) loan program, which                  received technical proposals from
                                                  Federal Register published on April 11,
                                                                                                          follows the requirements of 49 U.S.C.                 manufacturers in response to its Request
                                                  2000 (65 FR 19477), or visit http://
                                                                                                          24405(a). FRA’s Buy America                           for Proposals. After reviewing the
                                                  www.regulations.gov.
                                                                                                          requirement for rolling stock, including              proposals, Amtrak determined there
                                                  FOR FURTHER INFORMATION CONTACT: Mr.                    HSR trainsets, requires domestic final                were seven (7) Components of the
                                                  John Johnson, Attorney-Advisor, FRA                     assembly of the trainsets and that all the            trainsets’ 134 components that each
                                                  Office of Chief Counsel, 1200 New                       components be manufactured in the                     manufacturer indicated it could not
                                                  Jersey Avenue SE., Mail Stop 25,                        United States.                                        source domestically. On November 3,
                                                  Washington, DC 20590, (202) 493–0078,                      FRA may waive the Buy America                      2014, Amtrak requested from the FRA a
                                                  John.Johnson@dot.gov.                                   requirements if FRA finds that: (A)                   Buy America waiver for these seven (7)
                                                  SUPPLEMENTARY INFORMATION: FRA is                       Applying the requirements would be                    components and the HSR trainset paint
                                                  issuing this notice to advise the public                inconsistent with the public interest; (B)            (discussed in more detail below).
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                                                  that it intends to grant Amtrak a waiver                the steel, iron, and goods manufactured                  Coordinating with FRA, in February
                                                  from FRA’s Buy America policy for the                   in the United States are not produced in              2015 Amtrak engaged the Department of
                                                  use of the following eight components                   sufficient and reasonably available                   Commerce’s National Institute of
                                                  of Tier III high-speed rail (HSR)                       amounts or are not of a satisfactory                  Standards and Technology’s Hollings
                                                  trainsets: (1) Aluminum car body shells                 quality; (C) rolling stock or power train             Manufacturing Extension Partnership
                                                  (shell structure/frame-end, floor, roof,                equipment cannot be bought or                         (NIST–MEP) to scout for domestic
                                                  side); (2) Integrated cab/CEM structure;                delivered to the United States within a               manufacturers of the Components. In its
                                                  (3) vehicle paint; (4) brake control unit;              reasonable time; or (D) including                     April 2015 report, NIST–MEP did not


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                                                  70076                             Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices

                                                  identify any suppliers making the exact                               timeline addresses current capacity                   for manufacturers to establish more HSR
                                                  Components. NIST–MEP did identify a                                   constraints on the Northeast Corridor                 factories in the United States, strengthen
                                                  total of 23 potential suppliers that either                           and increasing demand for passenger                   the business case for a new domestic
                                                  make products similar to the                                          rail. Further Amtrak’s timeline meets                 HSR trainset industry to develop,
                                                  Components or claim to have the                                       FRA’s goal of establishing Tier III HSR 1             stimulate the domestic supply chain,
                                                  capability to manufacture the                                         in the United States as soon as possible.             and bring new high quality jobs to the
                                                  Components. FRA asked Amtrak to                                       Amtrak wants the HSR trainsets to be in               United States. As a result, FRA
                                                  investigate whether any of the potential                              revenue service by 2018. To meet this                 concludes that none of the NIST–MEP
                                                  suppliers could manufacture the                                       date, the first body shell deliveries must            identified suppliers could design, test,
                                                  Components. After analyzing the NIST–                                 arrive approximately seventeen (17)                   manufacture, and deliver the
                                                  MEP report and Amtrak’s report                                        months after notice to proceed, which is              Components to meet Amtrak’s FRA-
                                                  regarding follow-up discussions with                                  scheduled for February 2016. Final                    supported timeline, which means they
                                                  the potential suppliers, FRA finds that                               assembly and 126 of the 134 trainsets’                cannot deliver the Components within a
                                                  none of the potential suppliers currently                             components will be manufactured in the                reasonable time.
                                                  manufacture the Components.                                           United States. FRA believes that                         Here is a summary of FRA’s analysis
                                                    FRA supports Amtrak’s required                                      operational Tier III HSR in the United                based on Amtrak’s and NIST–MEP’s
                                                  procurement timeline because the                                      States will increase the attractiveness               outreach efforts:

                                                                                                                     Number of
                                                                        Component                                     potential                                             FRA findings
                                                                                                                     suppliers

                                                  (1) Car body Shell ....................................                       12    • None of the 12 potential suppliers currently manufacture aluminum car body
                                                                                                                                        shells for passenger/HSR trains.
                                                                                                                                      • After learning more about the requirements of the project, 6 of 12 potential sup-
                                                                                                                                        pliers expressed that they are not interested in the opportunity.
                                                                                                                                      • For the remaining 6 potential suppliers, FRA found at least one of the following
                                                                                                                                        applied to each manufacturer.
                                                                                                                                      Æ inexperience working with aluminum.
                                                                                                                                      Æ no experience building passenger/HSR aluminum car bodies.
                                                                                                                                      Æ no relevant experience manufacturing aluminum car bodies; and/or.
                                                                                                                                      Æ have no equipment to manufacture larger extrusions necessary for HSR car
                                                                                                                                        body shell.
                                                                                                                                      • FRA estimates that it could take car body shell manufacturers a minimum of 18
                                                                                                                                        to 24 months to establish the required facilities and techniques. As a result, FRA
                                                                                                                                        finds the remaining 6 potential suppliers not capable of manufacturing the car
                                                                                                                                        body shell within a reasonable time.
                                                  (2) Integrated cab/CEM structure .............                                  5   • None of the 5 potential suppliers currently manufacture CEM structures.
                                                                                                                                      • 3 of 5 potential suppliers were not interested in the opportunity after learning
                                                                                                                                        more about it.
                                                                                                                                      • For the remaining 2 potential suppliers, FRA found at least one of the following
                                                                                                                                        applied to each manufacturer.
                                                                                                                                      Æ no relevant experience manufacturing CEM structures; and/or
                                                                                                                                      Æ no experience building passenger/HSR CEM structures or similar relevant expe-
                                                                                                                                        rience fabricating aluminum CEM structures.
                                                                                                                                      FRA estimates it could take CEM structure manufacturers a minimum of 18 to 24
                                                                                                                                        months to establish the required facilities and techniques. As a result, FRA finds
                                                                                                                                        the remaining 2 potential suppliers not capable of manufacturing the CEM struc-
                                                                                                                                        ture shell within a reasonable time.
                                                  (3) Paint ....................................................                  3   • As applied to all 3 potential suppliers.
                                                                                                                                      Æ Paint must be applied where car body shells are manufactured to protect against
                                                                                                                                        corrosion and oxidation while in transit to the U.S.
                                                                                                                                      Æ The requirements, including foreign environmental standards, for the trainsets’
                                                                                                                                        paint would involve at least one year to develop the paint, have it tested and
                                                                                                                                        qualified for this particular use, and then exported.
                                                                                                                                      As a result, FRA finds that paint cannot be manufactured and delivered in a rea-
                                                                                                                                        sonable time.
                                                  Brake System—(4) Brake Control Unit;                                            6   • For safety critical items such as the brake system, FRA believes the brake sys-
                                                    (5) Disc Brake Equipment; (6) Tread                                                 tem and its components must be supplied by a single, service-proven supplier.
                                                    Brake Equipment/Tread Cleaners; (7)
                                                    Brake Valves, and (8) Parking Brake
                                                    Units.
                                                                                                                                      • None of the 6 potential suppliers currently manufacture brake systems for HSR
                                                                                                                                        trains.
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                                                                                                                                      • 5 of 6 potential suppliers have no experience manufacturing rail brake systems.
                                                                                                                                      Æ FRA finds that these 5 potential suppliers cannot supply the brake system.
                                                                                                                                      • 1 potential supplier is a major domestic brake system supplier that has experi-
                                                                                                                                        ence manufacturing other types of non-HSR passenger rail brake systems.
                                                                                                                                      Æ FRA estimates it would take at least two years to deliver a HSR brake system.


                                                    1 Tier III HSR trainsets are capable of traveling

                                                  220 miles per hour.


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                                                                            Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices                                          70077

                                                                                                       Number of
                                                                   Component                            potential                                             FRA findings
                                                                                                       suppliers

                                                                                                                       Æ FRA finds that the time to design, test, and manufacture a HSR brake system
                                                                                                                         precludes this manufacturer from delivering the system in a reasonable time.



                                                     On November 20, 2014, FRA                            and exported in time to for use on the                DEPARTMENT OF TRANSPORTATION
                                                  published on its Web site public notice                 car shell components.
                                                  of Amtrak’s waiver request. FRA                                                                               Office of the Secretary
                                                                                                             • The National Institute of Standards
                                                  received thirteen (13) online comments                  and Technology’s Hollings                             [Docket No. DOT–OST–2015–0194]
                                                  to this notice. Only one of the                         Manufacturing Extension Partnership
                                                  commenters identified a domestic                                                                              Fast Track Generic Clearance for the
                                                                                                          (NIST–MEP) did not identify any
                                                  source for any of the Components. The                                                                         Collection of Qualitative Feedback on
                                                                                                          domestic manufacturer currently
                                                  commenter asserted that the potential                                                                         Agency Service Delivery
                                                  supplier identified in the table above is               producing the Components.
                                                  a major domestic brake system supplier                     • Amtrak conducted extensive                       AGENCY: Office of the Secretary (OST),
                                                  and is capable of providing the brake                   outreach with manufacturers NIST–MEP                  Department of Transportation (DOT).
                                                  systems. However, as described above,                   identified as potential future                        ACTION: Notice and request for
                                                  FRA has determined that brake systems                   manufacturers for the non-available                   comments.
                                                  are not domestically available for HSR                  components. FRA agrees with Amtrak’s
                                                  trainsets nor can the one potential                     assertion that even if any of the                     SUMMARY:    In accordance with the
                                                  supplier deliver a brake system within                  identified manufacturers would attempt                Paperwork Reduction Act of 1995, the
                                                  a reasonable time. Of the thirteen (13)                                                                       Department of Transportation’s (DOT)
                                                                                                          to produce the Components
                                                  comments, ten (10) commenters were in                                                                         Office of the Secretary (OST) announces
                                                                                                          domestically, the Components could not
                                                  favor of granting the waiver and three                                                                        its plan to submit the Information
                                                                                                          be bought or produced in the United                   Collection Request (ICR) described
                                                  were against granting the waiver.                       States within a reasonable time.
                                                  Several of the ten (10) commenters in                                                                         below to the Office of Management and
                                                  favor of granting the waiver cited safety                  Pursuant to 49 U.S.C. 24405(a)(4),                 Budget (OMB) for its review and
                                                  as their reason. Many commenters also                   FRA is publishing notice of its decision              approval and invites public comment.
                                                  asserted that granting the waiver would                 to grant Amtrak’s waiver request in the               Executive Order 12862 directs Federal
                                                  be necessary to establish HSR in the                    Federal Register to provide notice of                 agencies to provide service to the public
                                                  United States and would lay a                           such finding and an opportunity for                   that matches or exceeds the best service
                                                  foundation for future domestic HSR                      public comment after which this waiver                available in the private sector. In order
                                                  manufacturing.                                          will become effective. This waiver                    to work continuously to ensure that our
                                                                                                          applies only to the HSR trainset                      programs are effective and meet our
                                                     The three commenters opposing the
                                                                                                          Components, including spares, for                     customers’ needs, the Department of
                                                  waiver argued that granting a waiver
                                                                                                          Amtrak’s HSR trainset procurement as                  Transportation (DOT) seeks to obtain
                                                  will lead to more waivers and that
                                                                                                          identified in its November 3, 2014                    OMB approval of a generic clearance to
                                                  manufacturers could produce the HSR
                                                                                                          waiver request. Moreover, excluding                   collect feedback on our service delivery.
                                                  trainset components in the United
                                                  States. Though domestic production of                   assembly of prototype trainsets, which                DATES: Comments on this notice must be
                                                  the HSR trainset components for which                   have been addressed in a separate                     received by January 11, 2016.
                                                  a waiver has been requested is                          waiver, the trainsets must be finally                 ADDRESSES: Your comments should be
                                                  theoretically possible, FRA believes                    assembled in the United States, and all               identified by Docket No. DOT–OST–
                                                  significant safety, capacity, and                       other components that are not described               2015–0194 and may be submitted
                                                  technology transfer problems would                      in this waiver must have been produced                through one of the following methods:
                                                  result. Moreover, the delays to overcome                in the United States or be the subject of                • Federal eRulemaking Portal: http://
                                                  these issues would negatively impact                    a future waiver.                                      www.regulations.gov. Follow the online
                                                  the schedules proposed by Amtrak.                                                                             instructions for submitting comments.
                                                                                                             Questions about this letter can be                    • Fax: 1–202–493–2251.
                                                     FRA believes a waiver is appropriate                 directed to, John Johnson, Attorney-
                                                  because the Components are not                                                                                   • Mail or Hand Delivery: Docket
                                                                                                          Advisor, at john.johnson@dot.gov or                   Management Facility, U.S. Department
                                                  manufactured in the United States and
                                                                                                          202–493–0078.                                         of Transportation, 1200 New Jersey
                                                  because domestically-produced
                                                  Components meeting the specific safety/                 Sincerely,                                            Avenue SE., West Building, Room W12–
                                                  service-proven, technical, design, and                                                                        140, Washington, DC 20590, between 9
                                                                                                          Sarah Feinberg                                        a.m. and 5 p.m., Monday through
                                                  schedule needs of Amtrak cannot be
                                                  delivered within a reasonable time. FRA                 Administrator                                         Friday, except on Federal holidays.
                                                  bases its determination on the                                                                                   All written comments will be
                                                                                                          Sarah L. Inderbitzin,                                 available for public inspection on
                                                  following:
                                                                                                          Acting Chief Counsel.                                 Regulations.gov.
                                                     • All of Amtrak’s bidders
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                                                                                                          [FR Doc. 2015–28708 Filed 11–10–15; 8:45 am]
                                                  independently indicated in their                                                                              FOR FURTHER INFORMATION CONTACT:
                                                  responses to Amtrak’s Request for                       BILLING CODE 4910–06–P                                Habib Azarsina, Office of the Chief
                                                  Proposal that the Components, other                                                                           Information Officer, Office of the
                                                  than vehicle paint, could not be sourced                                                                      Secretary, U.S. Department of
                                                  domestically. As noted above, the paint                                                                       Transportation, 1200 New Jersey
                                                  may be able to be manufactured                                                                                Avenue SE., Washington, DC 20590,
                                                  domestically but cannot be produced                                                                           202–366–1965 (Voice), 202–366–7870


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Document Created: 2015-12-14 14:53:48
Document Modified: 2015-12-14 14:53:48
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of intent to grant Buy America waiver.
DatesWritten comments on FRA's determination to grant Amtrak's Buy America waiver request should be provided to the FRA on or before November 27, 2015.
ContactMr. John Johnson, Attorney-Advisor, FRA Office of Chief Counsel, 1200 New Jersey Avenue SE., Mail Stop 25, Washington, DC 20590, (202) 493-0078, [email protected]
FR Citation80 FR 70074 

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