81_FR_89810 81 FR 89572 - Notice of Buy America Public Interest Waiver for Hurricane Sandy Emergency Relief Work Performed for the World Trade Center

81 FR 89572 - Notice of Buy America Public Interest Waiver for Hurricane Sandy Emergency Relief Work Performed for the World Trade Center

DEPARTMENT OF TRANSPORTATION
Federal Transit Administration

Federal Register Volume 81, Issue 238 (December 12, 2016)

Page Range89572-89573
FR Document2016-29686

The Federal Transit Administration (FTA) received a request from the Port Authority of New York and New Jersey (PANYNJ) for a Buy America public interest waiver for the procurement of equipment to replace what was damaged at the World Trade Center Transportation Hub (WTC Hub) project during Hurricane Sandy. A public interest waiver is needed because Hurricane Sandy damaged an existing construction site that receives federal funds but is not subject to FTA's Buy America requirements and the only option PANYNJ had to implement Sandy recovery work was to replace the damaged equipment with the same equipment. 49 U.S.C. 5323(j)(2)(A) and 49 CFR 661.7(b). In accordance with 49 U.S.C. 5323(j)(3)(A), FTA provided notice of the public interest waiver request and sought comment on whether to grant the request. FTA received one comment in support of the waiver, and no comments objecting to the waiver. Therefore, FTA is issuing a general public interest waiver for two PANYNJ Hurricane Sandy grants, NY-44-X005 and NY-44-X014. This public interest waiver is limited to the Hurricane Sandy recovery projects at the WTC Hub only and does not apply to separately funded resiliency projects.

Federal Register, Volume 81 Issue 238 (Monday, December 12, 2016)
[Federal Register Volume 81, Number 238 (Monday, December 12, 2016)]
[Notices]
[Pages 89572-89573]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29686]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-2016-0035]


Notice of Buy America Public Interest Waiver for Hurricane Sandy 
Emergency Relief Work Performed for the World Trade Center

AGENCY: Federal Transit Administration, DOT.

ACTION: Notice Buy America waiver.

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

SUMMARY: The Federal Transit Administration (FTA) received a request 
from the Port Authority of New York and New Jersey (PANYNJ) for a Buy 
America public interest waiver for the procurement of equipment to 
replace what was damaged at the World Trade Center Transportation Hub 
(WTC Hub) project during Hurricane Sandy. A public interest waiver is 
needed because Hurricane Sandy damaged an existing construction site 
that receives federal funds but is not subject to FTA's Buy America 
requirements and the only option PANYNJ had to implement Sandy recovery 
work was to replace the damaged equipment with the same equipment. 49 
U.S.C. 5323(j)(2)(A) and 49 CFR 661.7(b). In accordance with 49 U.S.C. 
5323(j)(3)(A), FTA provided notice of the public interest waiver 
request and sought comment on whether to grant the request. FTA 
received one comment in support of the waiver, and no comments 
objecting to the waiver. Therefore, FTA is issuing a general public 
interest waiver for two PANYNJ Hurricane Sandy grants, NY-44-X005 and 
NY-44-X014. This public interest waiver is limited to the Hurricane 
Sandy recovery projects at the WTC Hub only and does not apply to 
separately funded resiliency projects.

DATES: This waiver is effective immediately.

FOR FURTHER INFORMATION CONTACT: Cecelia Comito, FTA Assistant Chief 
Counsel, (202)366-2217 or [email protected].

SUPPLEMENTARY INFORMATION: The purpose of this notice is to announce 
that FTA is granting a public interest waiver to the Port Authority of 
New York and New Jersey (PANYNJ) for the procurement of replacement 
equipment damaged by Hurricane Sandy at the World Trade Center 
Transportation Hub (WTC Hub) project.
    With certain exceptions, FTA's Buy America requirements prevent FTA 
from obligating an amount that may be appropriated to carry out its 
program for a project unless ``the steel, iron, and manufactured goods 
used in the project are produced in the United States.'' 49 U.S.C. 
5323(j)(1). If, however, FTA finds that the application of this 
requirement would be inconsistent with the public interest, it may 
waive this requirement. 49 U.S.C. 5323 (j)(2)(A). In determining 
whether the conditions exist to grant a public interest waiver, FTA 
will consider all appropriate factors on a case-by-case basis, unless a 
general exception is specifically set out in this part. 49 U.S.C. 
5323(j)(2)(A); 49 CFR 661.7(b).
    On May 13, 2015, PANYNJ requested a Buy America waiver for the 
replacement or repair of equipment damaged by Hurricane Sandy at the 
WTC Hub because the WTC Hub project is being constructed pursuant to a 
grant awarded in 2003, it is not feasible to replace the damaged 
equipment with equipment that is different than that used in the 
original project and it is in the public's interest to repair the 
damage at the WTC Hub as quickly as possible. 49 U.S.C. 5323(j)(2)(A); 
49 CFR 661.7(b). Additionally, the underlying project is not subject to 
FTA's Buy America requirements.
    The September 11, 2001 terrorist attacks on the World Trade Center 
resulted in extensive damage to the WTC Hub. In August 2002, the 
Federal Emergency Management Agency (FEMA) entered into a memorandum of 
agreement with the U.S. Department of Transportation under which FEMA 
agreed to provide $2.75 billion to cover expenses incurred in repairing 
or rebuilding public transportation facilities and systems damaged by 
the September 11, 2001 terrorist attacks. Under the agreement, FTA 
would serve as the lead agency to oversee the grant and the 
construction of the project. In December 2003, FTA entered into a grant 
agreement with PANYNJ to

[[Page 89573]]

rebuild the WTC Hub. Because the WTC Hub project was funded with FEMA 
grant funds, FTA's Buy America requirements did not apply to the 
project.
    In October 2012, the WTC Hub project was an active construction 
site, with an estimated project completion date of December 2015. 
Hurricane Sandy caused extensive damage to the construction site, 
resulting in more than $214 million in damage to the construction site. 
FTA awarded PANYNJ two grants--NY-44-X005 for $54.24 million and NY-44-
X014 for $159.72 million--in Hurricane Sandy recovery funds to be used 
for recovery and emergency repair work for the WTC Hub project. Because 
the repair work was for an ongoing construction project, PANYNJ was 
required to use existing contracts that were originally procured in 
accordance with the requirements for the FEMA-funded WTC Hub project. 
To apply FTA's Buy America requirements to replace or repair equipment 
installed on an ongoing construction project would result in 
significant delay to completion of the project, impact contracts 
awarded under the FEMA funds, and potentially impact previously 
provided warranties. Moreover, a public interest waiver would maintain 
overall consistency of administration, oversight and implementation of 
both the ongoing WTC Hub project and the WTC Hurricane Sandy recovery 
work.
    On November 4, 2016, and in accordance with 49 U.S.C. 
5323(j)(3)(A), FTA published a notice in the Federal Register 
announcing PANYNJ's Buy America waiver request (81 FR 76999) seeking 
public comment. The comment period closed on November 14, 2016, and FTA 
received one comment. The comment was provided by a private citizen who 
supports granting the waiver. The commenter noted that the WTC Hub is a 
critical connection for Lower Manhattan employers and New Jersey 
employees. The commenter also noted while projects that abide to the 
Buy America requirements promote domestic industry and the livelihoods 
or hard-working Americans, that occurrences like Hurricane Sandy 
demonstrate the need for flexibility to waive Buy America under certain 
circumstances.
    Accordingly, because the original project was funded by FEMA and 
therefore, not subject to FTA's Buy America regulations, and the lack 
of any comments opposing the waiver, FTA is granting a general public 
interest waiver of FTA's Buy America requirements for the two grants, 
NY-44-X005 for $54.24 million and NY-44-X014 for $159.72 million--
awarded to PANYNJ. This public interest waiver is limited to the 
Hurricane Sandy recovery projects at the WTC Hub only, and does not 
apply to separately funded resiliency projects.

Ellen Partridge,
Chief Counsel.
[FR Doc. 2016-29686 Filed 12-9-16; 8:45 am]
 BILLING CODE P



                                                  89572                      Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Notices

                                                  steel, iron, and goods produced in the                  comment from all interested parties,                       This waiver is effective
                                                                                                                                                                DATES:
                                                  United States are not produced in a                     including potential vendors and                       immediately.
                                                  sufficient and reasonably available                     suppliers. The comment period closed                  FOR FURTHER INFORMATION CONTACT:
                                                  amount or are not of a satisfactory                     on November 15, 2016, and no                          Cecelia Comito, FTA Assistant Chief
                                                  quality,’’ then FTA may issue a non-                    comments were received.                               Counsel, (202)366–2217 or
                                                  availability waiver. 49 U.S.C.                            Therefore, based on the information                 Cecelia.comito@dot.gov.
                                                  5323(j)(2)(B); 49 CFR 661.7(c). ‘‘It will               supplied in support of GDRTA’s request                SUPPLEMENTARY INFORMATION: The
                                                  be presumed that the conditions exist to                for a Buy America waiver for the radio                purpose of this notice is to announce
                                                  grant this non-availability waiver if no                consoles, FTA hereby waives its Buy                   that FTA is granting a public interest
                                                  responsive and responsible bid is                       America requirements for the radio                    waiver to the Port Authority of New
                                                  received offering an item produced in                   consoles on the grounds that the                      York and New Jersey (PANYNJ) for the
                                                  the United States.’’ 49 CFR 661.7(c)(1).                manufactured product is not available
                                                     In January 2014, GDRTA conducted a                                                                         procurement of replacement equipment
                                                                                                          in the U.S. This waiver is limited to a               damaged by Hurricane Sandy at the
                                                  technology scope development project                    single procurement for the radio
                                                  to determine how technology                                                                                   World Trade Center Transportation Hub
                                                                                                          consoles by GDRTA.                                    (WTC Hub) project.
                                                  enhancements could improve its
                                                  operational efficiency; this included a                 Ellen Partridge,                                         With certain exceptions, FTA’s Buy
                                                  voice and data communication                            Chief Counsel.                                        America requirements prevent FTA
                                                  alternatives analysis. GDRTA                            [FR Doc. 2016–29685 Filed 12–9–16; 8:45 am]           from obligating an amount that may be
                                                  comprehensively examined various                        BILLING CODE 4910–57–P
                                                                                                                                                                appropriated to carry out its program for
                                                  technologies available for its voice and                                                                      a project unless ‘‘the steel, iron, and
                                                  data communication needs. GDRTA                                                                               manufactured goods used in the project
                                                  compared and evaluated the differences                  DEPARTMENT OF TRANSPORTATION                          are produced in the United States.’’ 49
                                                  between radio and cellular-based                                                                              U.S.C. 5323(j)(1). If, however, FTA finds
                                                  communication, including a cost                         Federal Transit Administration                        that the application of this requirement
                                                  analysis, reliability assessment, and                                                                         would be inconsistent with the public
                                                                                                          [Docket No. FTA–2016–0035]
                                                  long-range maintenance and operational                                                                        interest, it may waive this requirement.
                                                  differences. On August 5, 2014, the                     Notice of Buy America Public Interest                 49 U.S.C. 5323 (j)(2)(A). In determining
                                                  GDRTA Board approved the adopted of                     Waiver for Hurricane Sandy                            whether the conditions exist to grant a
                                                  a mixed communication system for the                    Emergency Relief Work Performed for                   public interest waiver, FTA will
                                                  agency, which would employ both voice                   the World Trade Center                                consider all appropriate factors on a
                                                  and cellular data systems. GDRTA                                                                              case-by-case basis, unless a general
                                                  would join Montgomery County’s 800                      AGENCY:    Federal Transit Administration,            exception is specifically set out in this
                                                  MHz analog trunked system, instead of                   DOT.                                                  part. 49 U.S.C. 5323(j)(2)(A); 49 CFR
                                                  continuing to own a 450 MHz radio                       ACTION:   Notice Buy America waiver.                  661.7(b).
                                                  system.                                                                                                          On May 13, 2015, PANYNJ requested
                                                     Montgomery County’s analog system                    SUMMARY:   The Federal Transit                        a Buy America waiver for the
                                                  uses proprietary Motorola                               Administration (FTA) received a request               replacement or repair of equipment
                                                  SmartNetTrunking, and all equipment                     from the Port Authority of New York                   damaged by Hurricane Sandy at the
                                                  must be original equipment                              and New Jersey (PANYNJ) for a Buy                     WTC Hub because the WTC Hub project
                                                  manufacturer (OEM) Motorola devices.                    America public interest waiver for the                is being constructed pursuant to a grant
                                                  All equipment also must be                              procurement of equipment to replace                   awarded in 2003, it is not feasible to
                                                  programmed to use the County’s 800                      what was damaged at the World Trade                   replace the damaged equipment with
                                                  MHz analog system and have the ability                  Center Transportation Hub (WTC Hub)                   equipment that is different than that
                                                  to work on the MARCS 800 MHz digital                    project during Hurricane Sandy. A                     used in the original project and it is in
                                                  system without any additional                           public interest waiver is needed because              the public’s interest to repair the
                                                  hardware. In November 2014, GDRTA                       Hurricane Sandy damaged an existing                   damage at the WTC Hub as quickly as
                                                  purchased Motorola mobile and                           construction site that receives federal               possible. 49 U.S.C. 5323(j)(2)(A); 49 CFR
                                                  portable radios for its supervisors and                 funds but is not subject to FTA’s Buy                 661.7(b). Additionally, the underlying
                                                  its diesel, trolly, paratransit,                        America requirements and the only                     project is not subject to FTA’s Buy
                                                  maintenance, and support vehicles. The                  option PANYNJ had to implement                        America requirements.
                                                  procurement and installation of the                     Sandy recovery work was to replace the                   The September 11, 2001 terrorist
                                                  radio consoles is the final step to move                damaged equipment with the same                       attacks on the World Trade Center
                                                  GDRTA’s communication system to                         equipment. 49 U.S.C. 5323(j)(2)(A) and                resulted in extensive damage to the
                                                  Montgomery County’s system.                             49 CFR 661.7(b). In accordance with 49                WTC Hub. In August 2002, the Federal
                                                     Motorola manufactures equipment                      U.S.C. 5323(j)(3)(A), FTA provided                    Emergency Management Agency
                                                  both domestically and overseas. While                   notice of the public interest waiver                  (FEMA) entered into a memorandum of
                                                  the voice processing module portion of                  request and sought comment on                         agreement with the U.S. Department of
                                                  the radio consoles currently are                        whether to grant the request. FTA                     Transportation under which FEMA
                                                  manufactured in Illinois, the other                     received one comment in support of the                agreed to provide $2.75 billion to cover
                                                  components are manufactured in                          waiver, and no comments objecting to                  expenses incurred in repairing or
                                                  Mexico. Thus, GDRTA submitted a                         the waiver. Therefore, FTA is issuing a               rebuilding public transportation
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                                                  waiver request based on non-availability                general public interest waiver for two                facilities and systems damaged by the
                                                  under 49 CFR 661.7(c)(1).                               PANYNJ Hurricane Sandy grants, NY–                    September 11, 2001 terrorist attacks.
                                                     On Tuesday November 1, 2016, and in                  44–X005 and NY–44–X014. This public                   Under the agreement, FTA would serve
                                                  accordance with 49 U.S.C. 5323(j)(3)(A),                interest waiver is limited to the                     as the lead agency to oversee the grant
                                                  FTA published a notice in the Federal                   Hurricane Sandy recovery projects at                  and the construction of the project. In
                                                  Register announcing the Buy America                     the WTC Hub only and does not apply                   December 2003, FTA entered into a
                                                  waiver request (81 FR 211) seeking                      to separately funded resiliency projects.             grant agreement with PANYNJ to


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                                                                             Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Notices                                           89573

                                                  rebuild the WTC Hub. Because the WTC                    million—awarded to PANYNJ. This                       take place in the United States; and (2)
                                                  Hub project was funded with FEMA                        public interest waiver is limited to the              all of the components of the product are
                                                  grant funds, FTA’s Buy America                          Hurricane Sandy recovery projects at                  of U.S. origin. A component is
                                                  requirements did not apply to the                       the WTC Hub only, and does not apply                  considered of U.S. origin if it is
                                                  project.                                                to separately funded resiliency projects.             manufactured in the United States,
                                                     In October 2012, the WTC Hub project                                                                       regardless of the origin of its
                                                                                                          Ellen Partridge,
                                                  was an active construction site, with an                                                                      subcomponents. 49 CFR 661.5(d). If,
                                                  estimated project completion date of                    Chief Counsel.
                                                                                                                                                                however, FTA determines that ‘‘the
                                                  December 2015. Hurricane Sandy                          [FR Doc. 2016–29686 Filed 12–9–16; 8:45 am]           steel, iron, and goods produced in the
                                                  caused extensive damage to the                          BILLING CODE P                                        United States are not produced in a
                                                  construction site, resulting in more than                                                                     sufficient and reasonably available
                                                  $214 million in damage to the                                                                                 amount or are not of a satisfactory
                                                  construction site. FTA awarded                          DEPARTMENT OF TRANSPORTATION                          quality,’’ then FTA may issue a non-
                                                  PANYNJ two grants—NY–44–X005 for                                                                              availability waiver. 49 U.S.C.
                                                                                                          Federal Transit Administration
                                                  $54.24 million and NY–44–X014 for                                                                             5323(j)(2)(B); 49 CFR 661.7(c). ‘‘It will
                                                  $159.72 million—in Hurricane Sandy                      [Docket No. FTA–2016–0037]                            be presumed that the conditions exist to
                                                  recovery funds to be used for recovery                                                                        grant this non-availability waiver if no
                                                  and emergency repair work for the WTC                   Notice of Buy America Waiver for                      responsive and responsible bid is
                                                  Hub project. Because the repair work                    Ultrastraight Rail                                    received offering an item produced in
                                                  was for an ongoing construction project,                AGENCY:    Federal Transit Administration,            the United States.’’ 49 CFR 661.7(c)(1).
                                                  PANYNJ was required to use existing                     DOT.                                                     Sound Transit’s Northgate Link
                                                  contracts that were originally procured                 ACTION:   Notice of Buy America waiver.               extension is a $1.9 billion rail project
                                                  in accordance with the requirements for                                                                       that consists of 4.3 miles and 3 new
                                                  the FEMA-funded WTC Hub project. To                     SUMMARY:   The Federal Transit                        stations, and runs through residential
                                                  apply FTA’s Buy America requirements                    Administration (FTA) received a request               and employment areas, including the
                                                  to replace or repair equipment installed                from the Central Puget Sound Transit                  University of Washington.
                                                  on an ongoing construction project                      Authority (Sound Transit) for a Buy                   Approximately 15,100 feet of that
                                                  would result in significant delay to                    America non-availability waiver for the               extension will run under the University
                                                  completion of the project, impact                       procurement of ultrastraight rail. Sound              of Washington’s Health Sciences and
                                                  contracts awarded under the FEMA                        Transit seeks to procure approximately                Physics-Astronomy buildings, which
                                                  funds, and potentially impact                           15,100 feet ultrastraight rail for a                  house precision-measurement
                                                  previously provided warranties.                         portion of its Northgate Link light rail              laboratories and experiments conducted
                                                  Moreover, a public interest waiver                      extension to avoid exceedance of                      by Nobel Prize winning faculty. The
                                                  would maintain overall consistency of                   contractually-mandated vibration                      project’s potential impact on the
                                                  administration, oversight and                           thresholds. The FTA hereby waives its                 University’s buildings was considered
                                                  implementation of both the ongoing                      Buy America requirements, finding that                as part of the environmental review
                                                  WTC Hub project and the WTC                             the materials for which the waiver is                 process required by the National
                                                  Hurricane Sandy recovery work.                          requested are not produced in the                     Environmental Policy Act (NEPA). In
                                                     On November 4, 2016, and in                          United States in sufficient and                       2006, FTA issued a final Record of
                                                  accordance with 49 U.S.C. 5323(j)(3)(A),                reasonably available quantities and of                Decision (ROD) for the project, and
                                                  FTA published a notice in the Federal                   satisfactory quality. This waiver is                  required implementation of mitigation
                                                  Register announcing PANYNJ’s Buy                        limited to a single procurement by                    measures, including a measure that
                                                  America waiver request (81 FR 76999)                    Sound Transit.                                        would minimize vibration under the
                                                  seeking public comment. The comment                     DATES: The waiver is effective                        University buildings. Sound Transit
                                                  period closed on November 14, 2016,                     immediately.                                          then executed a 2007 agreement with
                                                  and FTA received one comment. The                                                                             the University of Washington in which
                                                  comment was provided by a private                       FOR FURTHER INFORMATION CONTACT:                      Sound Transit agreed to not exceed
                                                  citizen who supports granting the                       Cecelia Comito, Assistant Chief                       specified vibration thresholds, which
                                                  waiver. The commenter noted that the                    Counsel, at (202) 366–2217 or                         could be met through use of
                                                  WTC Hub is a critical connection for                    cecelia.comito@dot.gov.                               ultrastraight rail, with parameters for
                                                  Lower Manhattan employers and New                       SUPPLEMENTARY INFORMATION: The                        that ultrastraight rail based on American
                                                  Jersey employees. The commenter also                    purpose of this notice is to announce                 Railway Engineers Maintenance-of-Way
                                                  noted while projects that abide to the                  that FTA has granted a Buy America                    Association (‘‘AREMA’’) standards.
                                                  Buy America requirements promote                        non-availability waiver for Sound                        Sound Transit contacted domestic rail
                                                  domestic industry and the livelihoods                   Transit for the procurement of                        manufacturers regarding their ability to
                                                  or hard-working Americans, that                         approximately 15,100 feet of                          produce ultrastraight rail within the
                                                  occurrences like Hurricane Sandy                        ultrastraight rail pursuant to 49 U.S.C.              agreed upon AREMA specifications for
                                                  demonstrate the need for flexibility to                 5323(j)(2)(B) and 49 CFR 661.7(c).                    the rail. Two leading manufacturers,
                                                  waive Buy America under certain                           With certain exceptions, FTA’s Buy                  Steel Dynamics, Inc. (SDI) and EVRAZ
                                                  circumstances.                                          America requirements prevent FTA                      North America (EVRAZ), stated
                                                     Accordingly, because the original                    from obligating an amount that may be                 unequivocally that they are unable to
                                                  project was funded by FEMA and                          appropriated to carry out its program for             fabricate rail that meets the
mstockstill on DSK3G9T082PROD with NOTICES




                                                  therefore, not subject to FTA’s Buy                     a project unless ‘‘the steel, iron, and               specification. Sound Transit
                                                  America regulations, and the lack of any                manufactured goods used in the project                subsequently explored using
                                                  comments opposing the waiver, FTA is                    are produced in the United States.’’ 49               domestically-sourced, milled rail.
                                                  granting a general public interest waiver               U.S.C. 5323(j)(1). A manufactured                     However, testing of the as-installed
                                                  of FTA’s Buy America requirements for                   product is considered produced in the                 milled rail found that the rail failed to
                                                  the two grants, NY–44–X005 for $54.24                   United States if: (1) All of the                      meet the applicable vibration
                                                  million and NY–44–X014 for $159.72                      manufacturing processes for the product               thresholds. Due to its unsuccessful


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Document Created: 2018-02-14 09:05:50
Document Modified: 2018-02-14 09:05:50
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 Buy America waiver.
DatesThis waiver is effective immediately.
ContactCecelia Comito, FTA Assistant Chief Counsel, (202)366-2217 or [email protected]
FR Citation81 FR 89572 

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