Buy America Waiver Notification |
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Gregory G. Nadeau
Federal Highway Administration
June 11, 2014
[Federal Register Volume 79, Number 112 (Wednesday, June 11, 2014)]
[Notices]
[Pages 33633-33634]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-13606]
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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 73 State projects involving the purchase or retrofit of
vehicles or vehicle components on the condition that they be assembled
in the U.S.
DATES: The effective date of the waiver is June 12, 2014.
FOR FURTHER INFORMATION CONTACT: For questions about this notice,
please contact Mr. Gerald Yakowenko, FHWA Office of Program
Administration, 202-366-1562, or via email at gerald.yakowenko@dot.gov.
For legal questions, please contact Mr. Jomar Maldonado, FHWA Office of
the Chief Counsel, 202-366-1373, or via email at
jomar.maldonado@dot.gov. Office hours for the FHWA are from 8:00 a.m.
to 4:30 p.m., e.t., Monday through Friday, except Federal holidays.
SUPPLEMENTARY INFORMATION:
Electronic Access
An electronic copy of this document may be downloaded from the
Federal Register's home page at http://www.archives.gov and the
Government Printing Office's database at http://www.access.gpo.gov/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 73 State projects involving the purchase or retrofit of
vehicles (including sedans, vans, pickups, SUVs, trucks, buses, street
sweepers) or vehicle components (such as exhaust controls and auxiliary
power units) on the condition that they be assembled in the U.S. The
waiver would apply to approximately 810 vehicles. The requests,
available at http://www.fhwa.dot.gov/construction/contracts/cmaq140211.cfm, are incorporated by reference into this notice. The
purposes of these projects include the improvement of air quality
(Congestion Mitigation and Air Quality Improvement Program projects),
implementation of the National Bridge and Tunnel Inventory and
Inspection Program, and the implementation of the FHWA's Recreational
Trails Program.
Title 23, Code of Federal Regulations, section 635.410 requires
that any 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, the 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 title 49, United States Code, section 5323(j)(2)(C) (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 all 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 all the steel and iron be
manufactured domestically. Vehicles were not the types of products that
were initially envisioned to meet FHWA Buy America requirements. 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
[[Page 33634]]
on the market that meets the 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 A, section 122 of the Consolidated and
Further Continuing Appropriations Act of 2012 (Public Law (Pub. L.)
112-284), 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=95) on March 3. The FHWA received 16 comments in
response to the publication. Eight commenters supported granting a
waiver. Two supported the waiver only when certain conditions are met:
One suggested that a maximum 15 percent of the components should be
allowed and the other stated that at least 60 percent of the contents
should be domestic. Two other commenters provided general statements
that U.S. tax dollars should go toward domestic labor and materials
that help create jobs. Four commenters objected to the waiver.
Based on FHWA's conclusion that there are no domestic manufacturers
that can produce the vehicles and vehicle components identified in this
notice in such a way that all its steel and iron elements are
manufactured domestically, and after consideration of the comments
received, FHWA finds that application of the 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 the 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 partial waivers previously given for various vehicle
projects. Thus, so long as the final assembly of the 73 vehicle
projects (including sedans, vans, pickups, SUVs, trucks, buses, street
sweepers, and tractors) and vehicle components (such as exhaust
controls and auxiliary power units) 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 vehicle components 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.
Dated: June 3, 2014.
Gregory G. Nadeau,
Deputy Administrator, Federal Highway Administration.
[FR Doc. 2014-13606 Filed 6-10-14; 8:45 am]
BILLING CODE 4910-22-P