II 111th CONGRESS 2d Session S. 4034 IN THE SENATE OF THE UNITED STATES December 16, 2010 Mr. Brown of Ohio (for himself and Mr. Merkley) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To support United States manufacturing by providing rules and guidance, waiver notices, and departmental and agency actions applicable to the domestic content standards of Federal grants administered by the Department of Transportation, and for other purposes.

1.

Short title

This Act may be cited as the Strengthening Manufacturing and Rebuilding Transit Act of 2010 or the SMART Act.

2.

Preference in awarding competitive transportation infrastructure grants

(a)

Preference

In awarding grants for projects that include the purchase of transit vehicle rolling stock, rail, and supporting equipment, the Secretary of Transportation shall give preference to a project if the manufactured goods to be purchased have a domestic content percentage that— (1)exceeds otherwise applicable Federal requirements; and (2)in the case of rolling stock, is consistent with industry-recognized standards, if available. (b)

Covered grants

The grants referred to in subsection (a) are discretionary or competitive grants, loans, loan guarantees, and lines of credit— (1)authorized under title 23 or 49, United States Code; (2)used to fund in full or in part projects eligible for Federal assistance under such titles; or (3)for transportation infrastructure projects funded under any Act that appropriates amounts for the Department of Transportation.

3.

Increasing the transparency of domestic content waivers

(a)

Clarity in domestic content regulations

The Secretary of Transportation shall establish a centralized website that provides rules and guidance, waiver notices, and departmental and agency actions applicable to the domestic content standards of the Federal-aid programs within the jurisdiction of the Department of Transportation. (b)

Transparency in waivers

(1)

Buy America

Section 313 of title 23, United States Code, is amended by adding at the end the following: (g)

Other limitations on waivers

(1)

Requests for waivers

Not later than 7 days after a Federal agency receives a written request for a waiver of any requirement under this section, the head of such agency shall— (A)publish the request on a publicly available agency website in an easily identifiable location; and (B)provide the public with a minimum of 30 days for notice and comment before issuing the requested waiver. (2)

Waivers granted

Not later than 30 days after a Federal agency decides to waive any requirement under this section, the head of the agency shall publish the decision and the justification for such decision in the Federal Register and on the publicly available website described in paragraph (1). (3)

Notification of the office of management and budget

Each Federal agency that grants a waiver of any requirement under this section shall submit to the Director of the Office of Management and Budget— (A)a notification of the application of the exception; and (B)a statement describing the procurement and the exception being applied. . (2)

Public transportation assistance

Section 5323(j) of title 49, United States Code, is amended by adding at the end the following: (7)

Limitations on waivers

(A)

Requests for waivers

Not later than 7 days after a Federal agency receives a written request for a waiver of any requirement under this subsection or section 5307(d)(1)(E)(iii), the head of such agency shall— (i)publish the request on a publicly available agency website in an easily identifiable location; and (ii)provide the public with a minimum of 30 days for notice and comment before issuing the requested waiver. (B)

Waivers granted

Not later than 30 days after a Federal agency decides to waive any requirement under this subsection or section 5307(d)(1)(E)(iii), the head of the agency shall publish the decision and the justification for such decision in the Federal Register and on the publicly available website described in subparagraph (A). (C)

Notification of the office of management and budget

Each Federal agency that grants a waiver of any requirement under this subsection or section 5307(d)(1)(E)(iii) shall submit to the Director of the Office of Management and Budget— (i)a notification of the application of the exception; and (ii)a statement describing the procurement and the exception being applied. . (3)

Amtrak

Section 24305(f) of title 49, United States Code, is amended by adding at the end the following: (5)

Limitations on waivers

(A)

Requests for waivers

Not later than 7 days after a Federal agency receives a written request for a waiver of any requirement under this subsection, the head of such agency shall— (i)publish the request on a publicly available agency website in an easily identifiable location; and (ii)provide the public with a minimum of 30 days for notice and comment before issuing the requested waiver. (B)

Waivers granted

Not later than 30 days after a Federal agency decides to waive any requirement under this subsection, the head of the agency shall publish the decision and the justification for such decision in the Federal Register and on the publicly available website described in subparagraph (A). (C)

Notification of the office of management and budget

Each Federal agency that grants a waiver of any requirement under this subsection shall submit to the Director of the Office of Management and Budget— (i)a notification of the application of the exception; and (ii)a statement describing the procurement and the exception being applied. . (4)

Intercity passenger rail service

Section 24405(a) of title 49, United States Code, is amended by adding at the end the following: (12)

Limitations on waivers

(A)

Requests for waivers

Not later than 7 days after a Federal agency receives a written request for a waiver of any requirement under this subsection, the head of such agency shall— (i)publish the request on a publicly available agency website in an easily identifiable location; and (ii)provide the public with a minimum of 30 days for notice and comment before issuing the requested waiver. (B)

Waivers granted

Not later than 30 days after a Federal agency decides to waive any requirement under this subsection, the head of the agency shall publish the decision and the justification for such decision in the Federal Register and on the publicly available website described in subparagraph (A). (C)

Notification of the office of management and budget

Each Federal agency that grants a waiver of any requirement under this subsection shall submit to the Director of the Office of Management and Budget— (i)a notification of the application of the exception; and (ii)a statement describing the procurement and the exception being applied. . (c)

Requirement for annual reporting on exceptions to domestic source requirements for transportation investments

(1)

Report requirement

(A)

In general

Not later than 60 days after the end of a fiscal year, the Inspector General of the Department of Transportation shall submit a report to Congress on the acquisitions supported by Federal transportation infrastructure investments which did not satisfy applicable domestic content standards. (B)

Contents of report

The report submitted under subparagraph (A) shall include, for the fiscal year covered by such report— (i)the number of all domestic content waivers issued for transportation infrastructure, rolling stock, and supporting equipment purchases; (ii)the countries and specifications of the products for which waivers were granted; (iii)an itemized list of all waivers granted with respect to articles, materials, and supplies; (iv)any law that requires procurement of goods from a domestic source; (v)a citation to the treaty, international agreement, or other law under which each waiver was granted, if applicable; (vi)the specific exception under the applicable domestic content standards that was used to purchase such articles, materials, or supplies, if any articles, materials, or supplies were acquired from entities that manufacture articles, materials, or supplies outside of the United States; and (vii)a summary of— (I)the total procurement funds expended on articles, materials, and supplies manufactured inside the United States; and (II)the total procurement funds expended on articles, materials, and supplies manufactured outside of the United States.

4.

Link domestic manufacturers to transportation infrastructure and rolling stock opportunities

The Secretary of Transportation is authorized to work with the Hollings Manufacturing Partnership Program and other manufacturing-related local intermediaries designated by the Secretary to develop a multi-agency comprehensive plan to expand domestic rail and transit vehicle supply chains with involvement from other applicable Federal agencies or industry consortiums— (1)to identify United States manufacturers currently producing, or capable of producing, transit and rail vehicles, supporting equipment, component parts, or similarly performing products; (2)to work with partners to identify and address gaps in domestic supply chains; and (3)to establish and carry out a program to award grants to eligible entities in accordance with this Act.