81_FR_64034 81 FR 63854 - Buy America Waiver Notification

81 FR 63854 - Buy America Waiver Notification

DEPARTMENT OF TRANSPORTATION
Federal Highway Administration

Federal Register Volume 81, Issue 180 (September 16, 2016)

Page Range63854-63855
FR Document2016-22301

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

Federal Register, Volume 81 Issue 180 (Friday, September 16, 2016)
[Federal Register Volume 81, Number 180 (Friday, September 16, 2016)]
[Notices]
[Pages 63854-63855]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-22301]


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

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration


Buy America Waiver Notification

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

ACTION: Notice.

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

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

DATES: The effective date of the waiver is September 19, 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. William Winne, FHWA Office of 
the Chief Counsel, 202-366-1397, 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 Printing Office's database at http://www.access.thefederalregister.org/nara.

Background

    This notice provides information regarding FHWA's finding that a 
Buy America waiver is appropriate for the obligation of Federal-aid 
funds for 21 State projects involving the acquisition of vehicles 
(including sedans, vans, pickups, trucks, buses, and street sweepers) 
and equipment (such as trail grooming equipment) on the condition that 
they be assembled in the U.S. The waiver would apply to approximately 
796 vehicles and equipment acquisitions. The requests for the second 
quarter of calendar year 2016, available at http://www.fhwa.dot.gov/construction/contracts/cmaq160713.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

[[Page 63855]]

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 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=131 on 
July 13th. The FHWA received five comments in response to the 
publication. Two commenters are in favor of the waiver. One commenter 
suggested that amendments should be made to use American made vehicles 
if possible. The other two commenters opposed the waiver without 
suggestions regarding domestic availability of the proposed vehicles 
and equipment project.
    Based on FHWA's conclusion that there are no domestic manufacturers 
that can produce the vehicles and equipment identified in this notice 
in such a way that steel and iron materials are manufactured 
domestically, and after consideration of the comments received, FHWA 
finds that application of FHWA's Buy America requirements to these 
products is inconsistent with the public interest (23 U.S.C. 313(b)(1) 
and 23 CFR 635.410(c)(2)(i)). However, FHWA believes that it is in the 
public interest and consistent with the Buy America requirements to 
impose the condition that the vehicles and the vehicle components be 
assembled in the U.S. Requiring final assembly to be performed in the 
U.S. is consistent with past guidance to FHWA Division Offices on 
manufactured products (see Memorandum on Buy America Policy Response, 
Dec. 22, 1997, http://www.fhwa.dot.gov/programadmin/contracts/122297.cfm). A waiver of the Buy America requirement without any regard 
to where the vehicle is assembled would diminish the purpose of the Buy 
America requirement. Moreover, in today's economic environment, the Buy 
America requirement is especially significant in that it will ensure 
that Federal Highway Trust Fund dollars are used to support and create 
jobs in the U.S. This approach is similar to the conditional waivers 
previously given for various vehicle projects. Thus, so long as the 
final assembly of the 21 State projects occurs in the U.S., applicants 
to this waiver request may proceed to purchase these vehicles and 
equipment consistent with the Buy America requirement.
    In accordance with the provisions of section 117 of the ``Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 
for Users, Technical Corrections Act of 2008'' (Pub. L. 110-244), FHWA 
is providing this notice of its finding that a public interest waiver 
of Buy America requirements is appropriate on the condition that the 
vehicles and equipment identified in the notice be assembled in the 
U.S. The FHWA invites public comment on this finding for an additional 
15 days following the effective date of the finding. Comments may be 
submitted to FHWA's Web site via the link provided to the waiver page 
noted above.

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

    Issued on: August 29, 2016.
Gregory G. Nadeau,
Administrator, Federal Highway Administration.
[FR Doc. 2016-22301 Filed 9-15-16; 8:45 am]
BILLING CODE 4910-22-P



                                                  63854                       Federal Register / Vol. 81, No. 180 / Friday, September 16, 2016 / Notices

                                                  maximum power (50 kw), voltage range                    (165 ADC) that meets the grant                        Background
                                                  (200–500 VDC), and current output (165                  requirements.                                            This notice provides information
                                                  ADC) in the State of Massachusetts.                        In accordance with the provisions of               regarding FHWA’s finding that a Buy
                                                  DATES: The effective date of the waiver                 section 117 of the SAFETEA–LU                         America waiver is appropriate for the
                                                  is September 19, 2016.                                  Technical Corrections Act of 2008 (Pub.               obligation of Federal-aid funds for 21
                                                                                                          L. 110–244, 122 Stat. 1572), FHWA is                  State projects involving the acquisition
                                                  FOR FURTHER INFORMATION CONTACT: For                    providing this notice as its finding that
                                                  questions about this notice, please                                                                           of vehicles (including sedans, vans,
                                                                                                          a waiver of Buy America requirements                  pickups, trucks, buses, and street
                                                  contact Mr. Gerald Yakowenko, FHWA                      is appropriate. The FHWA invites
                                                  Office of Program Administration, (202)                                                                       sweepers) and equipment (such as trail
                                                                                                          public comment on this finding for an                 grooming equipment) on the condition
                                                  366–1562, or via email at                               additional 15 days following the
                                                  gerald.yakowenko@dot.gov. For legal                                                                           that they be assembled in the U.S. The
                                                                                                          effective date of the finding. Comments               waiver would apply to approximately
                                                  questions, please contact Mr. William                   may be submitted to FHWA’s Web site
                                                  Winne, FHWA Office of the Chief                                                                               796 vehicles and equipment
                                                                                                          via the link provided to the waiver page              acquisitions. The requests for the
                                                  Counsel, 202–366–1397, or via email at                  noted above.
                                                  William.Winne@dot.gov. Office hours                                                                           second quarter of calendar year 2016,
                                                  for the FHWA are from 8:00 a.m. to 4:30                 (Authority: 23 U.S.C. 313; Pub. L. 110–161,           available at http://www.fhwa.dot.gov/
                                                                                                          23 CFR 635.410)                                       construction/contracts/
                                                  p.m., E.T., Monday through Friday,
                                                  except Federal holidays.                                  Issued on: August 29, 2016.                         cmaq160713.cfm, are incorporated by
                                                                                                          Gregory G. Nadeau,                                    reference into this notice. These projects
                                                  SUPPLEMENTARY INFORMATION:                                                                                    are being undertaken to implement air
                                                                                                          Administrator, Federal Highway
                                                  Electronic Access                                       Administration.                                       quality improvement, safety, and
                                                                                                          [FR Doc. 2016–22305 Filed 9–15–16; 8:45 am]
                                                                                                                                                                mobility goals under FHWA’s
                                                    An electronic copy of this document                                                                         Congestion Mitigation and Air Quality
                                                  may be downloaded from the Federal                      BILLING CODE 4910–22–P
                                                                                                                                                                Improvement Program and the
                                                  Register’s home page at: http://                                                                              Recreational Trails Program.
                                                  www.archives.gov and the Government                                                                              Title 23, Code of Federal Regulations,
                                                  Printing Office’s database at: http://                  DEPARTMENT OF TRANSPORTATION
                                                                                                                                                                section 635.410 requires that steel or
                                                  www.access.gpo.gov/nara.                                Federal Highway Administration                        iron materials (including protective
                                                  Background                                                                                                    coatings) that will be permanently
                                                                                                          Buy America Waiver Notification                       incorporated in a Federal-aid project
                                                     The FHWA’s Buy America policy in                                                                           must be manufactured in the U.S. For
                                                  23 CFR 635.410 requires a domestic                      AGENCY: Federal Highway                               FHWA, this means that all the processes
                                                  manufacturing process for any steel or                  Administration (FHWA), Department of                  that modified the chemical content,
                                                  iron products (including protective                     Transportation (DOT).                                 physical shape or size, or final finish of
                                                  coatings) that are permanently                          ACTION: Notice.                                       the material (from initial melting and
                                                  incorporated in a Federal-aid                                                                                 mixing, continuing through the bending
                                                  construction project. The regulation also               SUMMARY:    This notice provides
                                                                                                                                                                and coating) occurred in the U.S. The
                                                  provides for a waiver of the Buy                        information regarding FHWA’s finding
                                                                                                                                                                statute and regulations create a process
                                                  America requirements when the                           that a Buy America waiver is
                                                                                                                                                                for granting waivers from the Buy
                                                  application would be inconsistent with                  appropriate for the obligation of
                                                                                                                                                                America requirements when its
                                                  the public interest or when satisfactory                Federal-aid funds for 21 State projects
                                                                                                                                                                application would be inconsistent with
                                                  quality domestic steel and iron products                involving the acquisition of vehicles
                                                                                                                                                                the public interest or when satisfactory
                                                  are not sufficiently available. This                    and equipment on the condition that
                                                                                                                                                                quality domestic steel and iron products
                                                  notice provides information regarding                   they be assembled in the U.S.
                                                                                                                                                                are not sufficiently available. In 1983,
                                                  FHWA’s finding that a Buy America                       DATES: The effective date of the waiver               FHWA determined that it was both in
                                                  waiver is appropriate for use of non-                   is September 19, 2016.                                the public interest and consistent with
                                                  domestic iron and steel components of                   FOR FURTHER INFORMATION CONTACT: For                  the legislative intent to waive Buy
                                                  electric vehicle DC fast charging stations              questions about this notice, please                   America for manufactured products
                                                  with maximum power (50 kw), voltage                     contact Mr. Gerald Yakowenko, FHWA                    other than steel manufactured products.
                                                  range (200–500 VDC) and current output                  Office of Program Administration, 202–                However, FHWA’s national waiver for
                                                  (165 ADC) in the State of Massachusetts.                366–1562, or via email at                             manufactured products does not apply
                                                     In accordance with Division K,                       gerald.yakowenko@dot.gov. For legal                   to the requests in this notice because
                                                  section 122 of the ‘‘Consolidated and                   questions, please contact Mr. William                 they involve predominately steel and
                                                  Further Continuing Appropriations Act,                  Winne, FHWA Office of the Chief                       iron manufactured products. The
                                                  2015’’ (Pub. L. 113–235), FHWA                          Counsel, 202–366–1397, or via email at                FHWA’s Buy America requirements do
                                                  published a notice of intent to issue a                 William.Winne@dot.gov. Office hours                   not have special provisions for applying
                                                  waiver on its Web site: http://                         for the FHWA are from 8:00 a.m. to 4:30               Buy America to ‘‘rolling stock’’ such as
                                                  www.fhwa.dot.gov/construction/                          p.m., e.t., Monday through Friday,                    vehicles or vehicle components (see 49
                                                  contracts/waivers.cfm?id=129 on June                    except Federal holidays.                              U.S.C. 5323(j)(2)(C), 49 CFR 661.11, and
                                                  16th. The FHWA received no comments                     SUPPLEMENTARY INFORMATION:                            49 U.S.C. 24405(a)(2)(C) for examples of
                                                  in response to the publication. Based on                                                                      Buy America rolling stock provisions for
mstockstill on DSK3G9T082PROD with NOTICES




                                                  all the information available to the                    Electronic Access
                                                                                                                                                                other DOT agencies).
                                                  agency, FHWA concludes that there are                     An electronic copy of this document                    Based on all the information available
                                                  no domestic manufacturers of iron and                   may be downloaded from the Federal                    to the agency, FHWA concludes that
                                                  steel components compatible with                        Register’s home page at http://                       there are no domestic manufacturers
                                                  electric vehicle DC fast charging stations              www.archives.gov and the Government                   that produce the vehicles and vehicle
                                                  with maximum power (50 kw), voltage                     Printing Office’s database at http://                 components identified in this notice in
                                                  range (200–500 VDC) and current output                  www.access.gpo.gov/nara.                              such a way that their steel and iron


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                                                                              Federal Register / Vol. 81, No. 180 / Friday, September 16, 2016 / Notices                                        63855

                                                  elements are manufactured                               U.S. Requiring final assembly to be                         Notice and request for
                                                                                                                                                                ACTION:
                                                  domestically. The FHWA’s Buy America                    performed in the U.S. is consistent with              comments.
                                                  requirements were tailored to the types                 past guidance to FHWA Division Offices
                                                  of products that are typically used in                  on manufactured products (see                         SUMMARY:    In accordance with the
                                                  highway construction, which generally                   Memorandum on Buy America Policy                      Paperwork Reduction Act of 1995, (44
                                                  meet the requirement that steel and iron                Response, Dec. 22, 1997, http://                      U.S.C. 3501 et seq.), this notice
                                                  materials be manufactured domestically.                 www.fhwa.dot.gov/programadmin/                        announces the U.S. Department of
                                                  In today’s global industry, vehicles are                contracts/122297.cfm). A waiver of the                Transportation’s (DOT) intention to
                                                  assembled with iron and steel                           Buy America requirement without any                   request the Office of Management and
                                                  components that are manufactured all                    regard to where the vehicle is assembled              Budget’s (OMB) approval for the
                                                  over the world. The FHWA is not aware                   would diminish the purpose of the Buy                 utilization of the Individual Complaint
                                                  of any domestically produced vehicle                                                                          of Employment Discrimination form
                                                                                                          America requirement. Moreover, in
                                                  on the market that meets FHWA’s Buy                                                                           when processing Equal Employment
                                                                                                          today’s economic environment, the Buy
                                                  America requirement to have all its iron                                                                      Opportunity (EEO) discrimination
                                                                                                          America requirement is especially
                                                  and steel be manufactured exclusively                                                                         complaints filed by applicants for
                                                                                                          significant in that it will ensure that
                                                  in the U.S. For example, the Chevrolet                                                                        employment with DOT. The OMB
                                                                                                          Federal Highway Trust Fund dollars are
                                                  Volt, which was identified by many                                                                            approved the form in 2009 with its
                                                                                                          used to support and create jobs in the
                                                  commenters in a November 21, 2011,                                                                            renewal required by September 30,
                                                                                                          U.S. This approach is similar to the
                                                  Federal Register Notice (76 FR 72027)                                                                         2012. Subsequently, DOT was given
                                                                                                          conditional waivers previously given for
                                                  as a car that is made in the U.S., is                                                                         approval of the form until August 31,
                                                                                                          various vehicle projects. Thus, so long
                                                  comprised of only 45 percent of U.S.                                                                          2014. The renewal period then lapsed;
                                                                                                          as the final assembly of the 21 State                 therefore, the form expired. The OMB
                                                  and Canadian content according to the                   projects occurs in the U.S., applicants to
                                                  National Highway Traffic Safety                                                                               approved the form in 2015 with its
                                                                                                          this waiver request may proceed to                    renewal required by December 31, 2016.
                                                  Administration’s Part 583 American                      purchase these vehicles and equipment
                                                  Automobile Labeling Act Report Web                                                                            DATES: Comments on this notice must be
                                                                                                          consistent with the Buy America
                                                  page (http://www.nhtsa.gov/                             requirement.                                          received by November 15, 2016.
                                                  Laws+&+Regulations/                                                                                           ADDRESSES: You may submit comments
                                                                                                             In accordance with the provisions of
                                                  Part+583+American+Automobile                            section 117 of the ‘‘Safe, Accountable,               [identified by Docket No. DOT–OST–
                                                  +Labeling+Act+(AALA)+Reports).                          Flexible, Efficient Transportation Equity             2016–0171] by any of the following
                                                  Moreover, there is no indication of how                 Act: A Legacy for Users, Technical                    methods:
                                                  much of this 45 percent content is U.S.-                                                                         • Fax: 202–493–2064.
                                                                                                          Corrections Act of 2008’’ (Pub. L. 110–
                                                  manufactured (from initial melting and                                                                           • Mail: Docket Management Facility,
                                                                                                          244), FHWA is providing this notice of
                                                  mixing) iron and steel content.                                                                               U.S. Department of Transportation, 1200
                                                                                                          its finding that a public interest waiver
                                                     In accordance with Division K,                                                                             New Jersey Avenue SE., West Building,
                                                                                                          of Buy America requirements is
                                                  section 122 of the ‘‘Consolidated and                                                                         Room W12–140, Washington, DC 20590.
                                                                                                          appropriate on the condition that the                    • Hand Delivery: Docket Management
                                                  Further Continuing Appropriations Act,
                                                                                                          vehicles and equipment identified in                  Facility, U.S. Department of
                                                  2015’’ (Pub. L. 113–235), FHWA
                                                                                                          the notice be assembled in the U.S. The               Transportation, 1200 New Jersey
                                                  published a notice of intent to issue a
                                                                                                          FHWA invites public comment on this                   Avenue SE., West Building, Room W12–
                                                  waiver on its Web site at http://
                                                                                                          finding for an additional 15 days                     140, Washington, DC 20590, between 9
                                                  www.fhwa.dot.gov/construction/
                                                                                                          following the effective date of the                   a.m. and 5 p.m., Monday through
                                                  contracts/waivers.cfm?id=131 on July
                                                                                                          finding. Comments may be submitted to                 Friday, except on Federal holidays.
                                                  13th. The FHWA received five
                                                  comments in response to the                             FHWA’s Web site via the link provided                    • Federal eRulemaking Portal: http://
                                                  publication. Two commenters are in                      to the waiver page noted above.                       www.regulations.gov. Follow the online
                                                  favor of the waiver. One commenter                        Authority: 23 U.S.C. 313; P.L. 110–161, 23          instructions for submitting comments.
                                                  suggested that amendments should be                     CFR 635.410.                                             Instructions: All submissions must
                                                  made to use American made vehicles if                     Issued on: August 29, 2016.                         include the Agency name (Office of the
                                                  possible. The other two commenters                      Gregory G. Nadeau,                                    Secretary, DOT) and docket number for
                                                  opposed the waiver without suggestions                                                                        this rulemaking. You should provide
                                                                                                          Administrator, Federal Highway
                                                  regarding domestic availability of the                  Administration.                                       two copies of your comments if you
                                                  proposed vehicles and equipment                                                                               submit them by mail or hand delivery.
                                                                                                          [FR Doc. 2016–22301 Filed 9–15–16; 8:45 am]
                                                  project.                                                                                                      Note that all comments received will be
                                                                                                          BILLING CODE 4910–22–P
                                                     Based on FHWA’s conclusion that                                                                            posted without change to
                                                  there are no domestic manufacturers                                                                           www.regulations.gov, including any
                                                  that can produce the vehicles and                       DEPARTMENT OF TRANSPORTATION                          personal information provided, and will
                                                  equipment identified in this notice in                                                                        be available to Internet users. You may
                                                  such a way that steel and iron materials                Office of the Secretary                               review DOT’s complete Privacy Act
                                                  are manufactured domestically, and                                                                            Statement in the Federal Register
                                                  after consideration of the comments                                                                           published on April 11, 2000 (65 FR
                                                                                                          [Docket No. DOT–OST–2016–0171]
                                                  received, FHWA finds that application                                                                         19477) or you may visit htttp://
                                                  of FHWA’s Buy America requirements                      Agency Information Collection                         DocketsInfo.dot.gov.
                                                  to these products is inconsistent with                                                                           Docket: For Internet access to the
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                          Activities: Request for Comments;
                                                  the public interest (23 U.S.C. 313(b)(1)                Renewal of an Information                             docket to read background documents
                                                  and 23 CFR 635.410(c)(2)(i)). However,                  Collection(s): U.S. Department of                     and comments received, go to
                                                  FHWA believes that it is in the public                  Transportation, Individual Complaint of               www.regulations.gov. Background
                                                  interest and consistent with the Buy                    Employment Discrimination Form                        documents and comments received may
                                                  America requirements to impose the                                                                            also be viewed at DOT, 1200 New Jersey
                                                  condition that the vehicles and the                     AGENCY:Office of the Secretary, U.S.                  Avenue SE., Docket Operations, West
                                                  vehicle components be assembled in the                  Department of Transportation.                         Building, Room W12–140, Washington,


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Document Created: 2016-09-16 00:25:25
Document Modified: 2016-09-16 00:25:25
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.
DatesThe effective date of the waiver is September 19, 2016.
ContactFor 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. William Winne, FHWA Office of the Chief Counsel, 202-366-1397, 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 Citation81 FR 63854 

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