[Federal Register Volume 81, Number 38 (Friday, February 26, 2016)]
[Notices]
[Pages 9933-9935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04211]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2016-0010]


Notice of Buy America Waiver

AGENCY: National Highway Traffic Safety Administration (NHTSA), 
Department of Transportation (DOT).

ACTION: Notice of Buy America Waiver.

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SUMMARY: This notice provides NHTSA's finding with respect to a request 
from the Michigan Office of Highway Safety Planning (OHSP) to waive the 
requirements of Buy America. NHTSA finds that a non-availability waiver 
is appropriate for OHSP to purchase twenty foreign-made motorcycles 
using Federal grant funds because there are no suitable motorcycles 
produced in the United States for motorcyclist safety training 
purposes.

DATES: The effective date of this waiver is March 14, 2016. Written 
comments regarding this notice may be submitted to NHTSA and must be 
received on or before: March 14, 2016.

ADDRESSES: Written comments may be submitted using any one of the 
following methods:
     Mail: Docket Management Facility, M-30, U.S. Department of 
Transportation, West Building, Ground Floor, Rm. W12-140, 1200 New 
Jersey Avenue SE., Washington, DC 20590.
     Fax: Written comments may be faxed to (202) 493-2251.
     Internet: To submit comments electronically, go to the 
Federal regulations Web site at http://www.regulations.gov. Follow the 
online instructions for submitting comments.
     Hand Delivery: West Building Ground Floor, Room W12-140, 
1200 New Jersey Avenue SE., between 9 a.m. and 5 p.m. Eastern Time, 
Monday through Friday, except Federal holidays.
    Instructions: All comments submitted in relation to this waiver 
must include the agency name and docket number. Please note that all 
comments received will be posted without change to http://www.regulations.gov, including any personal information provided. You

[[Page 9934]]

may also call the Docket at 202-366-9324.

FOR FURTHER INFORMATION CONTACT: For program issues, contact Barbara 
Sauers, Office of Regional Operations and Program Delivery, NHTSA 
(phone: 202-366-0144). For legal issues, contact Andrew DiMarsico, 
Office of Chief Counsel, NHTSA (phone: 202-366-5263). You may send mail 
to these officials at the National Highway Traffic Safety 
Administration, 1200 New Jersey Avenue SE., Washington, DC 20590.

SUPPLEMENTARY INFORMATION: This notice provides NHTSA's finding that a 
waiver of the Buy America requirements, 23 U.S.C. 313, is appropriate 
for Michigan's OHSP to purchase twenty motorcycles for motorcyclist 
safety training using grant funds authorized under 23 U.S.C. 402 and 
405(f). Section 402 funds are available for use by state highway safety 
programs that, among other things, reduce or prevent injuries and 
deaths resulting from speeding motor vehicles, driving while impaired 
by alcohol and or drugs, motorcycle accidents, school bus accidents, 
and unsafe driving behavior. 23 U.S.C. 402(a). Section 405(f) funds are 
available for use by state highway safety programs to implement 
effective programs to reduce the number of single and multi-vehicle 
crashes involving motorcyclists that, among other things, include 
supporting training of motorcyclists and the purchase of motorcycles. 
23 U.S.C. 405(f)(1) & (4).
    Buy America provides that NHTSA ``shall not obligate any funds 
authorized to be appropriated to carry out the Surface Transportation 
Assistance Act of 1982 (96 Stat. 2097) or [Title 23] and administered 
by the Department of Transportation, unless steel, iron, and 
manufactured products used in such project are produced in the United 
States.'' 23 U.S.C. 313. However, NHTSA may waive those requirements 
if: ``(1) Their application would be inconsistent with the public 
interest; (2) such materials and products are not produced in the 
United States in sufficient and reasonably available quantities and of 
a satisfactory quality; or (3) the inclusion of domestic material will 
increase the cost of the overall project contract by more than 25 
percent.'' 23 U.S.C. 313(b); 49 CFR 1.95(f).
    Recently, NHTSA published its finding that a public interest waiver 
of the Buy America requirements is appropriate for a manufactured 
product whose purchase price is $5,000 or less, excluding a motor 
vehicle, when such product is purchased using Federal grant funds 
administered under Chapter 4 of Title 23 of the United States Code. See 
80 FR 37359 (June 30, 2015). Under this public interest waiver, 
therefore, states are no longer required to submit a waiver of Buy 
America to NHTSA for items costing $5,000 or less, except for motor 
vehicles, when they purchase the item with Federal grant funds.
    Michigan's OHSP seeks both a non-availability waiver--that the 
product is not produced in the United States in sufficient quantities--
and a cost waiver--that the purchase of comparable domestic made 
motorcycles are 25 percent greater than the cost of foreign made 
motorcycles--to purchase twenty motorcycles for motorcyclist training 
purposes. It seeks to purchase a combination of the following make, 
model and model year motorcycles and unit price: 2016 Suzuki TU250X 
($4,399); 2015 Yamaha V-Star 250 ($4,340); 2016 Yamaha TW200 ($4,590); 
2015 Honda Grom ($3,199); and 2016 Honda Rebel 250 ($4,190). Michigan 
asserts that a diverse training motorcycle fleet makes it easier to 
match novice riders to training motorcycles they can ride safely and 
comfortably during the training sessions. It notes that the Motorcycle 
Safety Foundation's (MSF) level one classroom curriculum includes a 
discussion of motorcycle types and styles, and how to choose a 
motorcycle that matches a rider's body type and riding experience. 
Michigan adds that the two outdoor sessions of its training program are 
5 hours each, which is long enough that the student's comfort on the 
motorcycle becomes a significant aspect of their training experience. 
The total purchase price for all twenty motorcycles ranges from 
$63,980-$91,800. This training program is designed to improve traffic 
safety by assuring that individuals seeking to obtain a Michigan 
motorcycle operator's license are properly trained in basic motorcycle 
operation and safety.
    OHSP requires that its training motorcycles meet certain 
specifications. The engine displacement must be no more than 250 cubic 
centimeters (CC). Michigan, however, is unable to identify any 
motorcycles with this specification that meet the Buy America 
requirements. OHSP researched motorcycle models made by several 
American motorcycle manufacturers: Harley-Davidson, Inc., Victory 
Motorcycles, Indian Motorcycles, ATK Motorcycles and Cleveland 
CycleWerks. Harley-Davidson produces a 500 CC motorcycle called the 
Street 500, with a MSRP of $6,849. Victory Motorcycles and Indian 
Motorcycles produce motorcycles with a much heavier and larger engine 
displacement than 500 CC, with the lowest MSRP of $12,499 for the 
Victory Vegas 8-ball motorcycle and the lowest MSRP of $10,999 for the 
Indian Scout. OHSP reached out to ATK Motorcycles, a domestic 
manufacturer located in Utah, and determined that ATK Motorcycles are 
not currently produced or available for sale. OHSP also found that 
Cleveland CycleWerks manufactures motorcycles in China, with minimal 
assemblage in the United States.
    Michigan states that its fleet of training motorcycles consists of 
motorcycles with less than 500 CC engine displacement and states that 
its practice is to use motorcycles with 250 CC engine displacement or 
less to enhance safety and minimize risk to participants of the 
training course. OHSP was unable to find a motorcycle that meets its 
requirements for training motorcycles that also meets the Buy America 
requirements. OHSP seeks to use the aforementioned motorcycles for its 
2016 motorcycle safety training program because they are smaller 
motorcycles with smaller engine displacement (250 CC). These 
motorcycles have universal applicability to all rider characteristics. 
For example, tall and short individuals can train with these smaller 
motorcycles; whereas, shorter individuals would have difficulty riding 
taller motorcycles, which, in general, have larger engine displacement. 
Moreover, motorcycles with smaller engine displacement are lighter and 
have less engine power that permit novice riders, or those with smaller 
physical stature, the ability to maneuver the motorcycles with limited 
risk of the motorcycle overpowering the riders causing injury. While 
some larger motorcycles (500 CC) are suitable for some motorcycle 
riders to train on, these motorcycles may overwhelm novice riders with 
their engine power and weight. Motorcycles with larger engine 
displacements do not have the universal applicability of the 250 CC 
motorcycles and would limit the effectiveness of Michigan's training 
courses. The smaller motorcycles will enable Michigan to continue to 
have effective motorcycle safety training courses that further the goal 
of section 402 and 405 to reduce motorcycle crashes and develop 
effective motorcyclist training for all its constituents.
    NHTSA is unaware of any other domestic motorcycle manufacturers 
than Harley-Davidson, Victory, and Indian. As these manufacturers do 
not sell a motorcycle that meets the requirements for Michigan's 
motorcycle safety training purposes, a Buy America

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waiver is appropriate. NHTSA invites public comment on this conclusion.
    In light of the above discussion, and pursuant to 23 U.S.C. 
313(b)(3), NHTSA finds that it is appropriate to grant a waiver from 
the Buy America requirements to Michigan to purchase twenty motorcycles 
for training purposes. Michigan seeks both a non-availability waiver--
where the product is not produced in the United States in sufficient 
quantities--and a cost basis waiver--where the purchase of a comparable 
domestic made motorcycle is 25 percent greater than the cost of foreign 
a made motorcycle. We have construed this as a non-availability waiver 
request because a cost basis waiver is not appropriate when there is no 
comparable domestic product against which to compare the price of the 
foreign product. Here, no domestic manufacturer produces a motorcycle 
with 250 CC engine displacement. As smaller engine displacement is 
common for training purposes and no American manufacturer produces 
motorcycles with this specification, a non-availability waiver is 
appropriate.
    This waiver applies to Michigan and all other States seeking to use 
section 402 and 405 funds to purchase the make and model motorcycles 
above and for the purposes mentioned herein. This waiver will continue 
through fiscal year 2016 and will allow the purchase of these items as 
required for Michigan's OHSP and its motorcyclist training programs. 
Accordingly, this waiver will expire at the conclusion of fiscal year 
2016 (September 30, 2016). In accordance with the provisions of Section 
117 of the Safe, Accountable, Flexible, Efficient Transportation Equity 
Act: A Legacy of Users Technical Corrections Act of 2008 (Pub. L. 110-
244, 122 Stat. 1572), NHTSA is providing this notice as its finding 
that a waiver of the Buy America requirements is appropriate for 
certain Suzuki, Yamaha and Honda motorcycles.
    Written comments on this finding may be submitted through any of 
the methods discussed above. NHTSA may reconsider these findings, if 
through comment, it learns of and can confirm the existence of a 
comparable domestically made product to the items granted a waiver.
    This finding should not be construed as an endorsement or approval 
of any products by NHTSA or the U.S. Department of Transportation. The 
United States Government does not endorse products or manufacturers.

    Authority: 23 U.S.C. 313; Pub. L. 110-161.

    Issued in Washington, DC, on February 22, 2016 under authority 
delegated in 49 CFR part 1.95.
Paul A. Hemmersbaugh,
Chief Counsel.
[FR Doc. 2016-04211 Filed 2-25-16; 8:45 am]
BILLING CODE 4910-59-P