[Federal Register Volume 86, Number 101 (Thursday, May 27, 2021)]
[Notices]
[Pages 28673-28675]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11269]


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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket No. FRA-2012-0033]


Notice of Intent To Grant a Buy America Waiver to the California 
Department of Transportation (Caltrans) and the Illinois Department of 
Transportation (IDOT) To Purchase Up to 615 Workstation Tables

AGENCY: Federal Railroad Administration (FRA), Department of 
Transportation (DOT).

ACTION: Notice of intent to grant FRA Buy America Waiver.

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SUMMARY: FRA is issuing this notice to advise the public that it 
intends to grant Caltrans' and IDOT's request for a waiver from FRA's 
Buy America requirement, so that Siemens USA, the design, 
manufacturing, and delivery contractor, may purchase and install up to 
615 non-domestic workstation tables that comply with certain design and 
safety standards for their single-level passenger railcars replacement 
project. Meeting these standards is required under the Passenger Rail 
Investment and Improvement Act of 2008 (PRIIA), and FRA's grant 
agreement with Caltrans and IDOT.

DATES: Written comments on FRA's determination to grant a Buy America 
waiver to Caltrans and IDOT should be provided to FRA on or before June 
1, 2021.

ADDRESSES: Please submit your comments to the U.S. Government 
electronic docket site at http://www.regulations.gov, in docket number: 
FRA-2012-0033.
    Note: All submissions received, including any personal information 
therein, will be posted without change or alteration to http://www.regulations.gov. For more information, you may review DOT's 
complete Privacy Act Statement published in the Federal Register on 
April 11, 2000 (65 FR 19477).

FOR FURTHER INFORMATION CONTACT: Faris Mohammed, Attorney-Advisor, 
Office of Chief Counsel, telephone: (202) 493-7064, email: 
[email protected].

SUPPLEMENTARY INFORMATION: The purpose of this notice is to provide the 
public with information related to FRA's intent to grant a waiver to 
Caltrans and IDOT from FRA's Buy America requirement, pursuant to 49 
U.S.C. 22905(a)(2), to allow the use of up to 615 non-domestic 
workstation tables.

Background

    Caltrans and IDOT were awarded five separate grants from FRA to 
purchase rolling stock, including single-level passenger railcars, for 
use in intercity passenger rail service (Project). Caltrans and IDOT 
entered into a contract with Sumitomo Corporation of Americas (SCOA) to 
produce and deliver the railcars; SCOA entered into a subcontract with 
Siemens USA to manufacture the railcars. Siemens contracted with Baker 
Bellfield, a company headquartered in the United Kingdom (UK), to 
manufacture in the United States 615 workstation tables for the 
Project.
    Like other European suppliers that Siemens has brought to the U.S. 
rail market, Baker Bellfield has committed to locate its production 
facility near the Siemens manufacturing facility in Sacramento, 
California. Baker Bellfield has already signed a lease for a property. 
Following localization, tables manufactured by Baker Bellfield at its 
facility in Sacramento would comply with FRA's Buy America requirements 
and would be installed in the FRA-funded passenger railcars.
    Baker Bellfield intended to begin manufacturing the tables at its 
planned U.S. facility the week of March 9, 2020. However, due to 
complications relating to the coronavirus disease 2019 (COVID-19) 
pandemic (e.g., travel restrictions and restrictions on operating non-
essential businesses), Baker Bellfield has been unable to open its 
Sacramento manufacturing facility on schedule. To meet contractual 
delivery schedules, Siemens proposes purchasing up to 615 tables made 
by Baker Bellfield in its UK-based facility, which do not comply with 
FRA's Buy America requirements. Once COVID-19 restrictions are lifted, 
Baker Bellfield intends to complete localization.
    On July 23, 2020, Caltrans and IDOT requested a waiver \1\ from 
FRA's Buy America requirement for up to 238 workstation tables. Due to 
delays related to the continuing pandemic, Caltrans and IDOT increased 
the request to 615. For the reasons stated below, FRA grants a non-
availability waiver to Caltrans and IDOT.
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    \1\ The Caltrans and IDOT waiver request is available at: 
https://railroads.dot.gov/elibrary/calidot-workstation-table-buy-america-waiver-request.
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Buy America Requirement

    With certain exceptions, FRA's Buy America Act requires that ``the 
steel, iron, and manufactured goods used in the project are produced in 
the United States.'' 49 U.S.C. 22905(a)(1). FRA's requirements apply 
without regard to the source of funds.
    If Caltrans and IDOT do not receive a waiver, they may not acquire 
goods for use in the Project that are not consistent with Section 
22905(a)(1), even if they do not propose to use Federal funds. However, 
FRA may waive this requirement if it determines:

    (A) Applying [FRA's Buy America requirements] would be 
inconsistent with the public interest; (B) 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; (C) rolling stock or power train equipment cannot be bought 
and delivered in the United States within a reasonable time; or (D) 
including domestic material will increase the cost of the overall 
project by more than 25 percent.

    In addition to the Buy America statute, FRA's action is subject to 
Executive Order 14005 Ensuring the Future is Made in All of America by 
All of America's Workers, 86 FR 7475 (January 28, 2021). Consistent 
with Executive Order 14005, FRA evaluated the waiver request, and 
sought input from the public, to determine whether Caltrans and IDOT 
had sought to maximize the use of goods, products, and materials 
produced in the United States.

[[Page 28674]]

Findings

    In a letter to FRA, dated July 23, 2020, Caltrans and IDOT 
described the need for workstation tables, the steps taken to identify 
domestically sourced tables, and the harm that would result in the 
absence of a waiver. FRA evaluated the information provided and made 
the following findings.

A. COVID-19 Pandemic

    As described in the request, the non-availability giving rise to 
the need for a waiver is due to effects from the COVID-19 pandemic. 
Prior to March 2020, Siemens entered into a contract with Baker 
Bellfield, a U.K.-based manufacturer, to establish a manufacturing 
facility in Sacramento, California so that Baker Bellfield could 
manufacture Buy-America-compliant workstation tables for the Project. 
However, due to restrictions relating to the COVID-19 pandemic, Baker 
Bellfield is not able to localize in time to meet the Project's 
production schedule. Thus, Siemens increased its initial request from 
238 to 615 workstation tables from Baker Bellfield's facility in the 
U.K. to meet the production schedule. These tables would not be 
compliant with FRA's Buy America requirement and would require a 
waiver.

B. There is No Domestic Source of Workstation Tables That Meet the 
PRIIA Specification

    In accordance with the Passenger Rail Investment and Improvement 
Act of 2008, and the FRA grant agreement, the single-level railcars 
must comply with the 305-003 Rev A Single Level Passenger Car Technical 
Specification (PRIIA Specification).
    SCOA and Siemens conducted an intensive search of domestic 
suppliers who could either meet the PRIIA Specification with an 
existing design or develop a completely new table. However, they could 
not find a domestic table supplier with the proven passenger rail 
interior component modeling and structural simulation expertise and who 
could produce a workstation table that met the PRIIA Specification. 
While Siemens initially identified a domestic source for workstation 
tables, which were previously installed in railcars for another 
project, after testing and modeling, Siemens determined the tables 
could not be configured to meet the required safety and design 
standards. Ultimately, Baker Bellfield's workstation tables are the 
only workstation tables that demonstrated passing simulated results and 
are expected to comply with the PRIIA Specification when configured for 
use in the Siemens railcar. Therefore, Siemens developed a plan to 
locate a Baker Bellfield facility in Sacramento, California, to produce 
the workstation tables. The workstation tables manufactured at the 
Baker Bellfield facility in Sacramento would have complied with FRA's 
Buy America requirement.
    However, due to the COVID-19 pandemic, Baker Bellfield's 
localization efforts have been delayed. To address the current non-
availability of compliant workstation tables, and to avoid potential 
further delays in the railcar delivery, Siemens proposes to purchase up 
to 615 tables from Baker Bellfield's facility in the UK to meet 
production and delivery schedules.
    To keep production lines running, Caltrans and IDOT accepted 
delivery of incomplete railcars. The incomplete cars cannot enter 
revenue service because they do not have workstation tables. Currently, 
the incomplete cars are being stored by Caltrans or IDOT, as 
applicable, until PRIIA-compliant workstation tables are available. As 
a result, Caltrans and IDOT have incurred costs to store the railcars 
and may incur additional costs, such as extending the lease of the 
existing fleet. However, if the waiver is granted, Siemens can quickly 
install the Baker Bellfield tables and the cars can enter revenue 
service.
    As soon as it is able, Baker Bellfield will complete localization 
of its facility in Sacramento, California, which will create a new 
domestic supply of workstation tables for use in future projects.

C. Harm Would Result if a Waiver Is Not Granted

    According to Caltrans and IDOT, if a waiver is not granted, the 
vehicles now being manufactured could not be used for revenue service 
and would need to be stored at Caltrans and IDOT commissioning sites, 
waiting for the availability of new tables. The cost of storage is 
variable, becoming higher as the number of cars needing storage 
increases and the remaining storage spaces decrease. For IDOT, costs 
are estimated to be $39,000 (subject to site selection and owner's 
confirmation) for storage of up to 40 IDOT Venture cars per year. At 
the ACE facility in Stockton, California, the San Joaquin Regional Rail 
Commission will charge Siemens $250 per day per railcar for storage of 
cars not in revenue service. These costs do not include the costs for 
delayed manufacturing, retrofitting existing cars, delays to revenue 
service, and lost warranty time. If Caltrans and IDOT are unable to 
store the railcars, Siemens would stop production of the railcars as it 
does not have capacity to store the railcars onsite. If FRA denied the 
request, Siemens would not be able to deliver single-level cars that 
meet the required specifications until after the pandemic-related 
restrictions are removed, significantly delaying the Project. Caltrans 
and IDOT would also incur significant costs related to the delay and 
storage of the railcars.
    Approving the waiver would help mitigate the negative effects of 
the COVID-19 pandemic by quickly installing workstation tables in 
railcars that can be put into revenue operations, which will maximize 
passenger safety, minimize implementation impacts and overall costs, 
and mitigate schedule issues for delivery and revenue service 
availability. In addition, allowing the use of the Baker Bellfield 
tables would allow the Caltrans and IDOT procurement to maintain its 
priority position in Siemens' production schedule, and allow the 
Project to remain on schedule. Caltrans and IDOT provided additional 
information to FRA that domestically-sourced subcomponents were used in 
the Project. Generally, FRA does not require the use of domestic 
subcomponents, and the use of domestic subcomponents increases the 
overall amount of domestic material used in the Project. On the basis 
of this information, FRA concludes this action is consistent with the 
policy in Executive Order 14005 to maximize ``the use of goods, 
products, and materials produced in, and services offered in, the 
United States.'' FRA further concludes that denying the requested 
waiver would not increase the use of goods, products, and materials 
produced in the United States.

Determination

    FRA has determined a ``non-availability'' waiver is appropriate 
under 49 U.S.C. 22905(a)(2)(B) for up to 615 workstation tables, 
because workstation tables meeting the PRIIA Specification are not 
currently ``produced in a sufficient and reasonably available amount or 
are not of a satisfactory quality.'' FRA bases this determination on 
the following:
     There is currently no domestic source of workstation 
tables that meet the PRIIA Specification when configured for the 
Caltrans and IDOT railcars and domestic tables cannot be delivered 
within a reasonable time.
     But for the COVID-19 pandemic, Siemens would have used 
workstation tables that complied with FRA's Buy America requirement.

[[Page 28675]]

     On December 31, 2020, FRA provided public notice of the 
Caltrans and IDOT waiver request and a 15-day opportunity for comment. 
FRA also emailed the notice to over 6,000 recipients that requested Buy 
America notices through ``GovDelivery.'' FRA did not receive any 
comments.
    This waiver only applies to Siemens's acquisition and installation 
of up to 615 workstation tables for use in the Project.
    FRA is providing notice of such finding and an opportunity for 
public comment after which this waiver will become effective.

    Issued in Washington, DC.
Amitabha Bose,
Deputy Administrator.
[FR Doc. 2021-11269 Filed 5-26-21; 8:45 am]
BILLING CODE 4910-06-P