[Federal Register Volume 79, Number 112 (Wednesday, June 11, 2014)]
[Notices]
[Pages 33633-33634]
From the Federal Register Online via the Government Publishing 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 [email protected]. 
For legal questions, please contact Mr. Jomar Maldonado, FHWA Office of 
the Chief Counsel, 202-366-1373, or via email at 
[email protected]. 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