[Federal Register Volume 75, Number 88 (Friday, May 7, 2010)]
[Notices]
[Pages 25241-25242]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-10916]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9145-7]


Notice of a Project Waiver of Section 1605 (Buy American 
Requirement) of the American Recovery and Reinvestment Act of 2009 
(ARRA) to the City of Coldwater, MI (Coldwater)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The EPA is hereby granting a project waiver of the Buy 
American requirements of ARRA section 1605 under the authority of 
section 1605(b)(2) [manufactured goods are not produced in the United 
States of a satisfactory quality] to Coldwater, Michigan for the 
purchase of high-speed, high-efficiency magnetic bearing turbo-
compressors that will be used in the city's sludge treatment process. 
This is a project-specific waiver and it only applies to the use of the 
specified product for the ARRA funded project being proposed. Any other 
ARRA project that may wish to use the same product must apply for a 
separate waiver based on project-specific circumstances. These turbo-
compressors, which are supplied by ABS USA of Meriden, Connecticut, are 
manufactured in Sweden, and meet Coldwater's performance specifications 
and requirements. The Acting Regional Administrator is making this 
determination based on the review and recommendations of EPA Region 5's 
Water Division. Coldwater has provided sufficient documentation to 
support its request. The Assistant Administrator of the Office of 
Administration and Resources Management has concurred on this decision 
to make an exception to Section 1605 of ARRA. This action permits the 
purchase of high-speed, high-efficiency magnetic bearing turbo-
compressors for Coldwater's activated sludge project that may otherwise 
be prohibited under Section 1605(a) of the ARRA.

DATES: Effective Date: March 26, 2010.

FOR FURTHER INFORMATION CONTACT: Andrew Lausted, SRF Program Manager 
(312) 886-0189, or Puja Lakhani, Office of Regional Counsel, (312) 353-
3190, U.S. EPA Region 5, 77 W. Jackson Blvd., Chicago, IL 60604.

SUPPLEMENTARY INFORMATION: In accordance with ARRA Section 1605(c) and 
pursuant to Section 1605(b)(2) of Public Law 111-5, Buy American 
requirements, EPA hereby provides notice that it is granting a project 
waiver to Coldwater, Michigan for the acquisition of high-speed, high-
efficiency magnetic bearing turbo-compressors that are manufactured in 
Sweden.
    Section 1605 of the ARRA requires that none of the appropriated 
funds may be used for the construction, alteration, maintenance, or 
repair of a public building or public work unless all of the iron, 
steel, and manufactured goods used in the project are produced in the 
United States, or unless a waiver is provided to the recipient by the 
head of the appropriate agency, here EPA. A waiver may be provided if 
EPA determines that (1) Applying these requirements would be 
inconsistent with the public interest; (2) iron, steel, and the 
relevant manufactured goods are not produced in the United States in 
sufficient and reasonably available quantities and of a satisfactory 
quality; or (3) inclusion of iron, steel, and the relevant manufactured 
goods produced in the United States will increase the cost of the 
overall project by more than 25 percent.
    The ARRA-funded project will provide improved aeration for 
Coldwater's activated sludge treatment process, allowing the Wastewater 
Treatment Plant (WWTP) to meet the stringent ammonia-nitrogen effluent 
discharge limits required for this facility placed into effect in May 
2007. Following a study of the cause for these ammonia-nitrogen 
effluent discharge excursions, it was determined the WWTP's current 
organic treatment process was not capable of handling the maximum day 
and peak ammonia-nitrogen loading occurrences experienced by the 
facility. The existing multistage centrifugal aeration blowers cannot 
be turned down sufficiently to adequately meet the low and average 
aeration requirements on the WWTP. These blowers also have insufficient 
capacity to meet the peak aeration requirements alone, and need 
supplemental aeration blowers to meet these demands. Relative to 
conventional technologies and equipment, the high-speed, high-
efficiency turbocompressors offer more turndown potential and the 
ability for the WWTP to meet the low, average, and peak aeration 
requirements in combination with the existing aeration blowers. The 
selected equipment can operate at 38% of its rated capacity, providing 
exceptional turndown. Coldwater selected the magnetic bearing 
technology because of its ability to avoid overheating and its track 
record of providing long-standing reliable service--key advantages over 
the competing airfoil bearing technology. Further, as Coldwater 
initiated its evaluation of the equipment for selection and design 
phases well before the enactment of ARRA, the decision to do was 
clearly not an attempt to avoid application of the Buy American 
provisions of ARRA. Coldwater's submissions clearly articulated 
functional reasons that justified their technical specifications and 
requirements.
    The April 28, 2009 EPA HQ Memorandum, ``Implementation of Buy 
American provisions of Public Law 111-5, the `American Recovery and 
Reinvestment Act of 2009','' defines reasonably available quantity as 
``the quantity of iron, steel, or relevant manufactured good is 
available or will be available at the time needed and place needed, and 
in the proper form or specification as specified in the project plans 
and design.''
    The applicant met the requirements specified for the availability 
inquiry as appropriate to the circumstances by conducting an extensive 
investigation into all possible sources for high-speed, high-efficiency 
turbo-compressors. Based on the investigation, five companies 
manufacture these machines, but only two (ABS and one other company) 
used magnetic bearings. Moreover, both of the companies that use 
magnetic bearings manufacture their machines overseas. Therefore, 
Coldwater believed that there was no domestic product of satisfactory 
quality available.
    EPA's national contractor prepared a technical assessment report 
dated December 24, 2009, based on the submitted waiver request. The 
report determined that the waiver request submittal was complete, that 
adequate technical information was provided, and that there were no 
significant weaknesses in the justification provided. Therefore, based 
on the information provided to EPA and to the best of our knowledge at 
this time, the high-speed, high-efficiency magnetic bearing turbo-
compressors necessary for this project are not manufactured in the

[[Page 25242]]

United States, and no other U.S. manufactured product can meet 
Coldwater's project performance specifications and requirements.
    The purpose of the ARRA is to stimulate economic recovery in part 
by funding current infrastructure construction, not to delay projects 
that are ``shovel ready'' by requiring communities such as Coldwater to 
revise their standards and specifications and to start the bidding 
process again. The imposition of ARRA Buy American requirements on such 
projects otherwise eligible for ARRA State Revolving Fund assistance 
would result in unreasonable delay and thus displace the ``shovel 
ready'' status for this project. To further delay project 
implementation is in direct conflict with a fundamental economic 
purpose of the ARRA, which is to create or retain jobs.
    The State and Tribal Programs Branch has reviewed this waiver 
request and has determined that the supporting documentation provided 
by Coldwater is sufficient to meet the criteria listed under Section 
1605(b) of the ARRA and in the April 28, 2009, ``Implementation of Buy 
American provisions of Public Law 111-5, the `American Recovery and 
Reinvestment Act of 2009' Memorandum'': Iron, steel, and the 
manufactured goods are not produced in the United States in sufficient 
and reasonably available quantities and of a satisfactory quality. The 
basis for this project waiver is the authorization provided in section 
1605(b)(2) of the ARRA. Due to the lack of production of this item in 
the United States in sufficient and reasonably available quantities and 
of a satisfactory quality in order to meet Coldwater's project 
performance specifications and requirements, a waiver from the Buy 
American requirement is justified.
    The March 31, 2009, Delegation of Authority Memorandum provided 
Regional Administrators with the authority to issue exceptions to 
Section 1605 of the ARRA within the geographic boundaries of their 
respective regions and with respect to requests by individual grant 
recipients. Having established both a proper basis to specify the 
particular good required for this project, and that this manufactured 
good was not available from a producer in the United States, Coldwater 
is hereby granted a waiver from the Buy American requirements of 
Section 1605(a) of Public Law 111-5 for the purchase of high-speed, 
high efficiency magnetic bearing turbo-compressors using ARRA funds as 
specified in the community's request of December 21, 2009. This 
supplementary information constitutes the detailed written 
justification required by Section 1605(c) for waivers ``based on a 
finding under subsection (b).''

    Authority:  Pub. L. 111-5, section 1605.

    Dated: March 26, 2010.
Walter W. Kovalick,
Acting Regional Administrator, Region 5.
[FR Doc. 2010-10916 Filed 5-6-10; 8:45 am]
BILLING CODE 6560-50-P