[Federal Register Volume 79, Number 171 (Thursday, September 4, 2014)]
[Notices]
[Pages 52798-52799]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-21022]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration


Buy America Waiver Notification

AGENCY: Federal Highway Administration (FHWA), Department of 
Transportation (DOT).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice provides information regarding FHWA's finding that 
a Buy America waiver is appropriate for the obligation of Federal-aid 
funds for 50 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 September 5, 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 50 State projects involving the purchase or retrofit of 
vehicles (including sedans, vans, pickups, Sports Utility Vehicles 
(SUV), 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 820 
vehicles. The requests, available at http://www.fhwa.dot.gov/construction/contracts/cmaq140722.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 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,

[[Page 52799]]

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 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 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 steel and iron materials 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 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 (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=98) on 
July 23. The FHWA received three comments in response to the 
publication. All three commenters supported granting a 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 steel and iron materials 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 50 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.

    Issued on: August 27, 2014.
Gregory G. Nadeau,
Acting Administrator, Federal Highway Administration.
[FR Doc. 2014-21022 Filed 9-3-14; 8:45 am]
BILLING CODE 4910-22-P