Notice of Buy America Waiver |
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Paul A. Hemmersbaugh
National Highway Traffic Safety Administration
26 February 2016
[Federal Register Volume 81, Number 38 (Friday, February 26, 2016)]
[Notices]
[Pages 9933-9935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04211]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
[Docket No. NHTSA-2016-0010]
Notice of Buy America Waiver
AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation (DOT).
ACTION: Notice of Buy America Waiver.
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SUMMARY: This notice provides NHTSA's finding with respect to a request
from the Michigan Office of Highway Safety Planning (OHSP) to waive the
requirements of Buy America. NHTSA finds that a non-availability waiver
is appropriate for OHSP to purchase twenty foreign-made motorcycles
using Federal grant funds because there are no suitable motorcycles
produced in the United States for motorcyclist safety training
purposes.
DATES: The effective date of this waiver is March 14, 2016. Written
comments regarding this notice may be submitted to NHTSA and must be
received on or before: March 14, 2016.
ADDRESSES: Written comments may be submitted using any one of the
following methods:
Mail: Docket Management Facility, M-30, U.S. Department of
Transportation, West Building, Ground Floor, Rm. W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590.
Fax: Written comments may be faxed to (202) 493-2251.
Internet: To submit comments electronically, go to the
Federal regulations Web site at http://www.regulations.gov. Follow the
online instructions for submitting comments.
Hand Delivery: West Building Ground Floor, Room W12-140,
1200 New Jersey Avenue SE., between 9 a.m. and 5 p.m. Eastern Time,
Monday through Friday, except Federal holidays.
Instructions: All comments submitted in relation to this waiver
must include the agency name and docket number. Please note that all
comments received will be posted without change to http://www.regulations.gov, including any personal information provided. You
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may also call the Docket at 202-366-9324.
FOR FURTHER INFORMATION CONTACT: For program issues, contact Barbara
Sauers, Office of Regional Operations and Program Delivery, NHTSA
(phone: 202-366-0144). For legal issues, contact Andrew DiMarsico,
Office of Chief Counsel, NHTSA (phone: 202-366-5263). You may send mail
to these officials at the National Highway Traffic Safety
Administration, 1200 New Jersey Avenue SE., Washington, DC 20590.
SUPPLEMENTARY INFORMATION: This notice provides NHTSA's finding that a
waiver of the Buy America requirements, 23 U.S.C. 313, is appropriate
for Michigan's OHSP to purchase twenty motorcycles for motorcyclist
safety training using grant funds authorized under 23 U.S.C. 402 and
405(f). Section 402 funds are available for use by state highway safety
programs that, among other things, reduce or prevent injuries and
deaths resulting from speeding motor vehicles, driving while impaired
by alcohol and or drugs, motorcycle accidents, school bus accidents,
and unsafe driving behavior. 23 U.S.C. 402(a). Section 405(f) funds are
available for use by state highway safety programs to implement
effective programs to reduce the number of single and multi-vehicle
crashes involving motorcyclists that, among other things, include
supporting training of motorcyclists and the purchase of motorcycles.
23 U.S.C. 405(f)(1) & (4).
Buy America provides that NHTSA ``shall not obligate any funds
authorized to be appropriated to carry out the Surface Transportation
Assistance Act of 1982 (96 Stat. 2097) or [Title 23] and administered
by the Department of Transportation, unless steel, iron, and
manufactured products used in such project are produced in the United
States.'' 23 U.S.C. 313. However, NHTSA may waive those requirements
if: ``(1) Their application would be inconsistent with the public
interest; (2) such materials and products are not produced in the
United States in sufficient and reasonably available quantities and of
a satisfactory quality; or (3) the inclusion of domestic material will
increase the cost of the overall project contract by more than 25
percent.'' 23 U.S.C. 313(b); 49 CFR 1.95(f).
Recently, NHTSA published its finding that a public interest waiver
of the Buy America requirements is appropriate for a manufactured
product whose purchase price is $5,000 or less, excluding a motor
vehicle, when such product is purchased using Federal grant funds
administered under Chapter 4 of Title 23 of the United States Code. See
80 FR 37359 (June 30, 2015). Under this public interest waiver,
therefore, states are no longer required to submit a waiver of Buy
America to NHTSA for items costing $5,000 or less, except for motor
vehicles, when they purchase the item with Federal grant funds.
Michigan's OHSP seeks both a non-availability waiver--that the
product is not produced in the United States in sufficient quantities--
and a cost waiver--that the purchase of comparable domestic made
motorcycles are 25 percent greater than the cost of foreign made
motorcycles--to purchase twenty motorcycles for motorcyclist training
purposes. It seeks to purchase a combination of the following make,
model and model year motorcycles and unit price: 2016 Suzuki TU250X
($4,399); 2015 Yamaha V-Star 250 ($4,340); 2016 Yamaha TW200 ($4,590);
2015 Honda Grom ($3,199); and 2016 Honda Rebel 250 ($4,190). Michigan
asserts that a diverse training motorcycle fleet makes it easier to
match novice riders to training motorcycles they can ride safely and
comfortably during the training sessions. It notes that the Motorcycle
Safety Foundation's (MSF) level one classroom curriculum includes a
discussion of motorcycle types and styles, and how to choose a
motorcycle that matches a rider's body type and riding experience.
Michigan adds that the two outdoor sessions of its training program are
5 hours each, which is long enough that the student's comfort on the
motorcycle becomes a significant aspect of their training experience.
The total purchase price for all twenty motorcycles ranges from
$63,980-$91,800. This training program is designed to improve traffic
safety by assuring that individuals seeking to obtain a Michigan
motorcycle operator's license are properly trained in basic motorcycle
operation and safety.
OHSP requires that its training motorcycles meet certain
specifications. The engine displacement must be no more than 250 cubic
centimeters (CC). Michigan, however, is unable to identify any
motorcycles with this specification that meet the Buy America
requirements. OHSP researched motorcycle models made by several
American motorcycle manufacturers: Harley-Davidson, Inc., Victory
Motorcycles, Indian Motorcycles, ATK Motorcycles and Cleveland
CycleWerks. Harley-Davidson produces a 500 CC motorcycle called the
Street 500, with a MSRP of $6,849. Victory Motorcycles and Indian
Motorcycles produce motorcycles with a much heavier and larger engine
displacement than 500 CC, with the lowest MSRP of $12,499 for the
Victory Vegas 8-ball motorcycle and the lowest MSRP of $10,999 for the
Indian Scout. OHSP reached out to ATK Motorcycles, a domestic
manufacturer located in Utah, and determined that ATK Motorcycles are
not currently produced or available for sale. OHSP also found that
Cleveland CycleWerks manufactures motorcycles in China, with minimal
assemblage in the United States.
Michigan states that its fleet of training motorcycles consists of
motorcycles with less than 500 CC engine displacement and states that
its practice is to use motorcycles with 250 CC engine displacement or
less to enhance safety and minimize risk to participants of the
training course. OHSP was unable to find a motorcycle that meets its
requirements for training motorcycles that also meets the Buy America
requirements. OHSP seeks to use the aforementioned motorcycles for its
2016 motorcycle safety training program because they are smaller
motorcycles with smaller engine displacement (250 CC). These
motorcycles have universal applicability to all rider characteristics.
For example, tall and short individuals can train with these smaller
motorcycles; whereas, shorter individuals would have difficulty riding
taller motorcycles, which, in general, have larger engine displacement.
Moreover, motorcycles with smaller engine displacement are lighter and
have less engine power that permit novice riders, or those with smaller
physical stature, the ability to maneuver the motorcycles with limited
risk of the motorcycle overpowering the riders causing injury. While
some larger motorcycles (500 CC) are suitable for some motorcycle
riders to train on, these motorcycles may overwhelm novice riders with
their engine power and weight. Motorcycles with larger engine
displacements do not have the universal applicability of the 250 CC
motorcycles and would limit the effectiveness of Michigan's training
courses. The smaller motorcycles will enable Michigan to continue to
have effective motorcycle safety training courses that further the goal
of section 402 and 405 to reduce motorcycle crashes and develop
effective motorcyclist training for all its constituents.
NHTSA is unaware of any other domestic motorcycle manufacturers
than Harley-Davidson, Victory, and Indian. As these manufacturers do
not sell a motorcycle that meets the requirements for Michigan's
motorcycle safety training purposes, a Buy America
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waiver is appropriate. NHTSA invites public comment on this conclusion.
In light of the above discussion, and pursuant to 23 U.S.C.
313(b)(3), NHTSA finds that it is appropriate to grant a waiver from
the Buy America requirements to Michigan to purchase twenty motorcycles
for training purposes. Michigan seeks both a non-availability waiver--
where the product is not produced in the United States in sufficient
quantities--and a cost basis waiver--where the purchase of a comparable
domestic made motorcycle is 25 percent greater than the cost of foreign
a made motorcycle. We have construed this as a non-availability waiver
request because a cost basis waiver is not appropriate when there is no
comparable domestic product against which to compare the price of the
foreign product. Here, no domestic manufacturer produces a motorcycle
with 250 CC engine displacement. As smaller engine displacement is
common for training purposes and no American manufacturer produces
motorcycles with this specification, a non-availability waiver is
appropriate.
This waiver applies to Michigan and all other States seeking to use
section 402 and 405 funds to purchase the make and model motorcycles
above and for the purposes mentioned herein. This waiver will continue
through fiscal year 2016 and will allow the purchase of these items as
required for Michigan's OHSP and its motorcyclist training programs.
Accordingly, this waiver will expire at the conclusion of fiscal year
2016 (September 30, 2016). In accordance with the provisions of Section
117 of the Safe, Accountable, Flexible, Efficient Transportation Equity
Act: A Legacy of Users Technical Corrections Act of 2008 (Pub. L. 110-
244, 122 Stat. 1572), NHTSA is providing this notice as its finding
that a waiver of the Buy America requirements is appropriate for
certain Suzuki, Yamaha and Honda motorcycles.
Written comments on this finding may be submitted through any of
the methods discussed above. NHTSA may reconsider these findings, if
through comment, it learns of and can confirm the existence of a
comparable domestically made product to the items granted a waiver.
This finding should not be construed as an endorsement or approval
of any products by NHTSA or the U.S. Department of Transportation. The
United States Government does not endorse products or manufacturers.
Authority: 23 U.S.C. 313; Pub. L. 110-161.
Issued in Washington, DC, on February 22, 2016 under authority
delegated in 49 CFR part 1.95.
Paul A. Hemmersbaugh,
Chief Counsel.
[FR Doc. 2016-04211 Filed 2-25-16; 8:45 am]
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