81 FR 19701 - Buy America Waiver Notification

DEPARTMENT OF TRANSPORTATION
Federal Highway Administration

Federal Register Volume 81, Issue 65 (April 5, 2016)

Page Range		19701-19702
FR Document		2016-07800

This notice provides information regarding FHWA's finding that a Buy America waiver is appropriate for the obligation of Federal-aid funds for 48 State projects involving the acquisition of vehicles and equipment on the condition that they be assembled in the U.S.

Federal Register, Volume 81 Issue 65 (Tuesday, April 5, 2016)

[Federal Register Volume 81, Number 65 (Tuesday, April 5, 2016)]
[Notices]
[Pages 19701-19702]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-07800]


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DEPARTMENT OF TRANSPORTATION

Federal Highway Administration


Buy America Waiver Notification

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

ACTION: Notice.

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SUMMARY: This notice provides information regarding FHWA's finding that 
a Buy America waiver is appropriate for the obligation of Federal-aid 
funds for 48 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 April 6, 2016.

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 [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.

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 Publishing 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 48 State projects involving the acquisition of vehicles 
(including sedans, vans, pickups, trucks, buses, and street sweepers) 
and equipment (such as trail grooming equipment) on the condition that 
they be assembled in the U.S. The waiver would apply to approximately 
393 vehicles and equipment acquisitions. The requests for the third 
quarter of calendar year 2015, available at http://www.fhwa.dot.gov/construction/contracts/cmaq160105.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 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 (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

[[Page 19702]]

Further Continuing Appropriations Act, 2015'' (Pub. 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=117 on 
January 5, 2016. The FHWA received five comments in response to the 
publication. Four commenters suggested that preference should be given 
to American products in support of American workers and a waiver should 
only be granted if there are no domestic products available. These 
commenters did not provide a recommendation for domestic products that 
fully comply with FHWA's Buy America requirements. The fifth commenter 
supports granting a waiver and agreed that domestic assembly for the 
vehicles seems to be the only course to follow.
    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 48 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: March 29, 2016.
Gregory G. Nadeau,
Administrator, Federal Highway Administration.
[FR Doc. 2016-07800 Filed 4-4-16; 8:45 am]
BILLING CODE 4910-22-P

19702 Federal Register / Vol. 81, No. 65 / Tuesday, April 5, 2016 / Notices

Further Continuing Appropriations Act, 244), FHWA is providing this notice of • Federal eRulemaking Portal:
2015’’ (Pub. L. 113–235), FHWA its finding that a public interest waiver www.regulations.gov. Follow the online
published a notice of intent to issue a of Buy America requirements is instructions for submitting comments.
waiver on its Web site at http:// appropriate on the condition that the • Mail: Docket Management Facility,
www.fhwa.dot.gov/construction/ vehicles and equipment identified in U.S. Department of Transportation, 1200
contracts/waivers.cfm?id=117 on the notice be assembled in the U.S. The New Jersey Avenue SE., West Building,
January 5, 2016. The FHWA received FHWA invites public comment on this Ground Floor, Room W12–140,
five comments in response to the finding for an additional 15 days Washington, DC 20590–0001.
publication. Four commenters suggested following the effective date of the • Hand Delivery or Courier: West
that preference should be given to finding. Comments may be submitted to Building, Ground Floor, Room W12–
American products in support of FHWA’s Web site via the link provided 140, 1200 New Jersey Avenue SE.,
American workers and a waiver should to the waiver page noted above. between 9 a.m. and 5 p.m., Monday
only be granted if there are no domestic Authority: 23 U.S.C. 313; Pub. L. 110–161, through Friday, except Federal holidays.
products available. These commenters 23 CFR 635.410. • Fax: 1–202–493–2251.
did not provide a recommendation for Each submission must include the
domestic products that fully comply Issued on: March 29, 2016.
Agency name and the docket number for
with FHWA’s Buy America Gregory G. Nadeau, this notice. Note that DOT posts all
requirements. The fifth commenter Administrator, Federal Highway comments received without change to
supports granting a waiver and agreed Administration. www.regulations.gov, including any
that domestic assembly for the vehicles [FR Doc. 2016–07800 Filed 4–4–16; 8:45 am] personal information included in a
seems to be the only course to follow. BILLING CODE 4910–22–P comment. Please see the Privacy Act
Based on FHWA’s conclusion that heading below.
there are no domestic manufacturers Docket: For access to the docket to
that can produce the vehicles and DEPARTMENT OF TRANSPORTATION read background documents or
equipment identified in this notice in comments, go to www.regulations.gov at
such a way that steel and iron materials Federal Motor Carrier Safety
Administration any time or visit Room W12–140 on the
are manufactured domestically, and ground level of the West Building, 1200
after consideration of the comments [Docket No. FMCSA–2012–0032] New Jersey Avenue SE., Washington,
received, FHWA finds that application DC, between 9 a.m. and 5 p.m., ET,
of FHWA’s Buy America requirements Commercial Driver’s License Monday through Friday, except Federal
to these products is inconsistent with Standards: Application for Exemption; holidays. The on-line FDMS is available
the public interest (23 U.S.C. 313(b)(1) Daimler Trucks North America 24 hours each day, 365 days each year.
and 23 CFR 635.410(c)(2)(i)). However, (Daimler) Privacy Act: In accordance with 5
FHWA believes that it is in the public U.S.C. 553(c), DOT solicits comments
interest and consistent with the Buy AGENCY: Federal Motor Carrier Safety
Administration (FMCSA), DOT. from the public to better inform its
America requirements to impose the rulemaking process. DOT posts these
condition that the vehicles and the ACTION: Notice of application for
exemption; request for comments. comments, without edit, including any
vehicle components be assembled in the personal information the commenter
U.S. Requiring final assembly to be SUMMARY: FMCSA announces that provides, to www.regulations.gov, as
performed in the U.S. is consistent with Daimler Trucks North America described in the system of records
past guidance to FHWA Division Offices (Daimler) has requested an exemption notice (DOT/ALL–14 FDMS), which can
on manufactured products (see for one commercial motor vehicle be reviewed at www.dot.gov/privacy.
Memorandum on Buy America Policy (CMV) driver from the Federal
Response, Dec. 22, 1997, http:// FOR FURTHER INFORMATION CONTACT: For
requirement to hold a U.S. commercial information concerning this notice,
www.fhwa.dot.gov/programadmin/
driver’s license (CDL). Daimler requests contact Ms. Pearlie Robinson, FMCSA
contracts/122297.cfm). A waiver of the
a five-year exemption for Ms. Melanie Driver and Carrier Operations Division;
Buy America requirement without any
Baumann, executive assistant to the Office of Carrier, Driver and Vehicle
regard to where the vehicle is assembled
head of the Daimler Trucks and Bus Safety Standards; Telephone: 202–366–
would diminish the purpose of the Buy
Division. Ms. Baumann holds a valid 4325. Email: MCPSD@dot.gov. If you
America requirement. Moreover, in
German commercial license and wants have questions on viewing or submitting
today’s economic environment, the Buy
to test drive Daimler vehicles on U.S. material to the docket, contact Docket
America requirement is especially
roads to better understand product Services, telephone (202) 366–9826.
significant in that it will ensure that
Federal Highway Trust Fund dollars are requirements in ‘‘real world’’ SUPPLEMENTARY INFORMATION:
used to support and create jobs in the environments, and verify results.
Daimler believes the requirements for a I. Public Participation and Request for
U.S. This approach is similar to the
German commercial license ensure that Comments
conditional waivers previously given for
various vehicle projects. Thus, so long operation under the exemption will FMCSA encourages you to participate
as the final assembly of the 48 State likely achieve a level of safety by submitting comments and related
projects occurs in the U.S., applicants to equivalent to or greater than the level materials.
that would be obtained in the absence
asabaliauskas on DSK3SPTVN1PROD with NOTICES

this waiver request may proceed to
of the exemption. Submitting Comments
purchase these vehicles and equipment
consistent with the Buy America DATES: Comments must be received on If you submit a comment, please
requirement. or before May 5, 2016. include the docket number for this
In accordance with the provisions of ADDRESSES: You may submit comments notice (FMCSA–2012–0032), indicate
section 117 of the ‘‘Safe, Accountable, bearing the Federal Docket Management the specific section of this document to
Flexible, Efficient Transportation Equity System (FDMS) Docket ID FMCSA– which the comment applies, and
Act: A Legacy for Users, Technical 2012–0032 using any of the following provide a reason for suggestions or
Corrections Act of 2008’’ (Pub. L. 110– methods: recommendations. You may submit

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Document Created: 2018-02-07 13:53:59
Document Modified: 2018-02-07 13:53:59

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 April 6, 2016.
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		81 FR 19701

81 FR 19701 - Buy America Waiver Notification

DEPARTMENT OF TRANSPORTATIONFederal Highway Administration

Federal Register Volume 81, Issue 65 (April 5, 2016)

DEPARTMENT OF TRANSPORTATION
Federal Highway Administration