[Federal Register Volume 79, Number 116 (Tuesday, June 17, 2014)]
[Notices]
[Page 34563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-14087]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-2013-0034]


Notice of Buy America Waiver for a Variable Refrigerant Flow HVAC 
System

AGENCY: Federal Transit Administration, DOT.

ACTION: Notice of Buy America waiver.

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SUMMARY: In response to the Rock Island County Metropolitan Mass 
Transit District's (MetroLINK) request for a Buy America waiver for a 
Variable Refrigerant Flow (VRF) HVAC system, the Federal Transit 
Administration (FTA) hereby waives its Buy America requirements for the 
VRF HVAC system to be installed in MetroLINK's Rock Island Transfer 
Station. This waiver is limited to a single procurement for the VRF 
HVAC system for the Rock Island Transfer Station project, an FTA-funded 
project.

DATES: This waiver is effective immediately.

FOR FURTHER INFORMATION CONTACT: Mary J. Lee, FTA Attorney-Advisor, at 
(202) 366-0985 or [email protected].

SUPPLEMENTARY INFORMATION: The purpose of this notice is to announce 
that FTA has granted a non-availability waiver for MetroLINK's 
procurement of a VRF HVAC system for its Rock Island Transfer Station.
    With certain exceptions, FTA's Buy America requirements prevent FTA 
from obligating an amount that may be appropriated to carry out its 
program for a project unless ``the steel, iron, and manufactured goods 
used in the project are produced in the United States.'' 49 U.S.C. 
5323(j)(1). A manufactured product is considered produced in the United 
States if: (1) All of the manufacturing processes for the product must 
take place in the United States; and (2) All of the components of the 
product must be of U.S. origin. A component is considered of U.S. 
origin if it is manufactured in the United States, regardless of the 
origin of its subcomponents. 49 CFR 661.5(d). If, however, FTA 
determines that ``the steel, iron, and goods produced in the United 
States are not produced in a sufficient and reasonably available amount 
or are not of a satisfactory quality,'' then FTA may issue a waiver 
(non-availability waiver). 49 U.S.C. 5323(j)(2)(B); 49 CFR 661.7(c).
    On February 18, 2014, FTA published a notice in the Federal 
Register requesting comments on MetroLINK's request for a non-
availability waiver for a VRF HVAC system that will be installed into 
its passenger transfer facility in Rock Island, Illinois, the Rock 
Island Transfer Station. 79 FR 9313. FTA selected this project for 
award of fiscal year 2011 funding made available pursuant to the Bus 
and Bus Facilities Program (49 U.S.C. 5309(b)) in support of U.S. 
Department of Transportation's (DOT) Livability Initiative and the 
Partnership for Sustainable Communities between the U.S. DOT, the U.S. 
Department of Housing and Urban Development, and the U.S. Environmental 
Protection Agency (Bus Livability Program). Among other things, FTA 
selected each project for the Bus Livability Program based upon whether 
it would promote a more environmentally sustainable transportation 
system. 76 FR 37393, 37397 (June 27, 2011); see also 76 FR 68813 (Nov. 
7, 2011). More specifically, FTA assessed the project's ability to 
``maintain, protect or enhance the environment, as evidenced by 
environmentally friendly policies and practices utilized in the project 
design, construction, and operation that exceed the requirements of the 
National Environmental Policy Act including items such as whether the 
project uses a [U.S. Green Building Council] Leadership in Energy and 
Environmental Design (LEED)-certified design. . . .'' 76 FR at 37397.
    MetroLINK's Rock Island Transfer Station is expected to be LEED-
certified and will incorporate a number of sustainable and energy 
efficient elements. One such element is a VRF HVAC system that, among 
other things, is space saving, has invertor technology, efficiency, and 
a non-ozone depleting refrigerant that domestic manufacturers of HVAC 
systems do not provide. MetroLINK stated in its request that this VRF 
HVAC system is critical in obtaining the LEED points necessary to 
achieve the Silver certification (or better) that it is seeking. Thus, 
MetroLINK specified the brands ``Daikin AC'' and ``Mitsubishi,'' or 
approved equal, but MetroLINK has been unable to identify a domestic 
manufacturer of the VRF HVAC system that meets its specifications.
    The comment period closed on March 4, 2014, but FTA took into 
consideration the one comment it received from Mitsubishi Electric US, 
Inc. on March 7, 2014. This commenter supports a waiver and reiterated 
the non-availability of this type of HVAC system in the United States 
and the advantages of such a system.
    Based upon MetroLINK's assertions that it is unable to procure a 
U.S.-manufactured VRF HVAC system, which is critical in obtaining the 
LEED points necessary to achieve the Silver certification (or better) 
that it is seeking, and the comment on the advantages of a VRF HVAC 
system, FTA hereby waives its Buy America requirement for manufactured 
products under 49 CFR 661.5(d) for the VRF HVAC system.\1\ This waiver 
is limited to a single procurement for the VRF HVAC system for the Rock 
Island Transfer Station project.
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    \1\ Note that a similar Buy America non-availability waiver was 
issued on June 22, 2010 by the U.S. Department of Energy (DOE) for 
the same VRF HVAC system. 75 FR 35447. According to MetroLINK, the 
U.S. DOE's determination of inapplicability (U.S. DOE's Buy America 
waiver for non-availability) of the American Reinvestment and 
Recovery Act of 2009 to the same VRF HVAC system indicates the 
continued non-availability of this product.

Dana C. Nifosi,
Deputy Chief Counsel.
[FR Doc. 2014-14087 Filed 6-16-14; 8:45 am]
BILLING CODE 4910-57-P