Notice of Intent to Grant a Buy America Waiver to the National Railroad Passenger Corporation (Amtrak) for the Use of Eight (8) Non-Domestic Components in Tier III High-Speed Rail Trainsets, 70074-70077 [2015-28708]
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Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices
certifies that Mr. Watson understands
diabetes management and monitoring,
has stable control of his diabetes using
insulin, and is able to drive a CMV
safely. Mr. Watson meets the
requirements of the vision standard at
49 CFR 391.41(b)(10). His optometrist
examined him in 2015 and certified that
he does not have diabetic retinopathy.
He holds an operator’s license from New
York.
William T. White
Mr. White, 47, has had ITDM since
2012. His endocrinologist examined him
in 2015 and certified that he has had no
severe hypoglycemic reactions resulting
in loss of consciousness, requiring the
assistance of another person, or
resulting in impaired cognitive function
that occurred without warning in the
past 12 months and no recurrent (2 or
more) severe hypoglycemic episodes in
the last 5 years. His endocrinologist
certifies that Mr. White understands
diabetes management and monitoring,
has stable control of his diabetes using
insulin, and is able to drive a CMV
safely. Mr. White meets the
requirements of the vision standard at
49 CFR 391.41(b)(10). His optometrist
examined him in 2015 and certified that
he does not have diabetic retinopathy.
He holds a Class A CDL from
Washington.
mstockstill on DSK4VPTVN1PROD with NOTICES
J. Ryan Wolf
Mr. Wolf, 39, has had ITDM since
2015. His endocrinologist examined him
in 2015 and certified that he has had no
severe hypoglycemic reactions resulting
in loss of consciousness, requiring the
assistance of another person, or
resulting in impaired cognitive function
that occurred without warning in the
past 12 months and no recurrent (2 or
more) severe hypoglycemic episodes in
the last 5 years. His endocrinologist
certifies that Mr. Wolf understands
diabetes management and monitoring,
has stable control of his diabetes using
insulin, and is able to drive a CMV
safely. Mr. Wolf meets the requirements
of the vision standard at 49 CFR
391.41(b)(10). His ophthalmologist
examined him in 2015 and certified that
he does not have diabetic retinopathy.
He holds an operator’s license from
Indiana.
III. Request for Comments
In accordance with 49 U.S.C. 31136(e)
and 31315, FMCSA requests public
comment from all interested persons on
the exemption petitions described in
this notice. We will consider all
comments received before the close of
business on the closing date indicated
in the date section of the notice.
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FMCSA notes that section 4129 of the
Safe, Accountable, Flexible and
Efficient Transportation Equity Act: A
Legacy for Users requires the Secretary
to revise its diabetes exemption program
established on September 3, 2003 (68 FR
52441).1 The revision must provide for
individual assessment of drivers with
diabetes mellitus, and be consistent
with the criteria described in section
4018 of the Transportation Equity Act
for the 21st Century (49 U.S.C. 31305).
Section 4129 requires: (1) Elimination
of the requirement for 3 years of
experience operating CMVs while being
treated with insulin; and (2)
establishment of a specified minimum
period of insulin use to demonstrate
stable control of diabetes before being
allowed to operate a CMV.
In response to section 4129, FMCSA
made immediate revisions to the
diabetes exemption program established
by the September 3, 2003 notice.
FMCSA discontinued use of the 3-year
driving experience and fulfilled the
requirements of section 4129 while
continuing to ensure that operation of
CMVs by drivers with ITDM will
achieve the requisite level of safety
required of all exemptions granted
under 49 U.S.C. 31136 (e).
Section 4129(d) also directed FMCSA
to ensure that drivers of CMVs with
ITDM are not held to a higher standard
than other drivers, with the exception of
limited operating, monitoring and
medical requirements that are deemed
medically necessary.
The FMCSA concluded that all of the
operating, monitoring and medical
requirements set out in the September 3,
2003 notice, except as modified, were in
compliance with section 4129(d).
Therefore, all of the requirements set
out in the September 3, 2003 notice,
except as modified by the notice in the
Federal Register on November 8, 2005
(70 FR 67777), remain in effect.
IV. Submitting Comments
You may submit your comments and
material online or by fax, mail, or hand
delivery, but please use only one of
these means. FMCSA recommends that
you include your name and a mailing
address, an email address, or a phone
number in the body of your document
so that FMCSA can contact you if there
are questions regarding your
submission.
To submit your comment online, go to
https://www.regulations.gov and in the
search box insert the docket number
1 Section 4129(a) refers to the 2003 notice as a
‘‘final rule.’’ However, the 2003 notice did not issue
a ‘‘final rule’’ but did establish the procedures and
standards for issuing exemptions for drivers with
ITDM.
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FMCSA–2015–0336 and click the search
button. When the new screen appears,
click on the blue ‘‘Comment Now!’’
button on the right hand side of the
page. On the new page, enter
information required including the
specific section of this document to
which each comment applies, and
provide a reason for each suggestion or
recommendation. If you submit your
comments by mail or hand delivery,
submit them in an unbound format, no
larger than 81⁄2 by 11 inches, suitable for
copying and electronic filing. If you
submit comments by mail and would
like to know that they reached the
facility, please enclose a stamped, selfaddressed postcard or envelope.
We will consider all comments and
material received during the comment
period and may change this proposed
rule based on your comments. FMCSA
may issue a final rule at any time after
the close of the comment period.
V. Viewing Comments and Documents
To view comments, as well as any
documents mentioned in this preamble,
To submit your comment online, go to
https://www.regulations.gov and in the
search box insert the docket number
FMCSA–2015–0336 and click ‘‘Search.’’
Next, click ‘‘Open Docket Folder’’ and
you will find all documents and
comments related to the proposed
rulemaking.
Dated: November 5, 2015.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2015–28740 Filed 11–10–15; 8:45 am]
BILLING CODE 4910–EX–P
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
[Docket No. FRA–2012–0033]
Notice of Intent to Grant a Buy America
Waiver to the National Railroad
Passenger Corporation (Amtrak) for
the Use of Eight (8) Non-Domestic
Components in Tier III High-Speed Rail
Trainsets
Federal Railroad
Administration (FRA), United States
Department of Transportation (DOT).
ACTION: Notice of intent to grant Buy
America waiver.
AGENCY:
: FRA is issuing this notice to
advise the public that it intends to grant
Amtrak a waiver from FRA’s Buy
America policy for the use of eight
components of Tier III high-speed rail
(HSR) trainsets.
DATES: Written comments on FRA’s
determination to grant Amtrak’s Buy
SUMMARY:
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Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices
America waiver request should be
provided to the FRA on or before
November 27, 2015.
ADDRESSES: Please submit your
comments by one of the following
means, identifying your submissions by
docket number FRA–2012–0033. All
electronic submissions must be made to
the U.S. Government electronic site at
https://www.regulations.gov.
Commenters should follow the
instructions below for mailed and handdelivered comments:
(1) Web site: https://
www.regulations.gov. Follow the
instructions for submitting comments
on the U.S. Government electronic
docket site;
(2) Fax: (202) 493–2251;
(3) Mail: U.S. Department of
Transportation, 1200 New Jersey
Avenue SE., Docket Operations, M–30,
Room W12–140, Washington, DC
20590–0001; or
(4) Hand Delivery: Room W12–140 on
the first floor of the West Building, 1200
New Jersey Avenue SE., Washington,
DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal
holidays.
Instructions: All submissions must
reference the ‘‘Federal Railroad
Administration’’ and include docket
number FRA–2012–0033. Due to
security procedures in effect since
October 2001, mail received through the
U.S. Postal Service may be subject to
delays. Parties making submissions
responsive to this notice should
consider using an express mail firm to
ensure the prompt filing of any
submissions not filed electronically or
by hand. Note that all submissions
received, including any personal
information therein, will be posted
without change or alteration to https://
www.regulations.gov. For more
information, you may review DOT’s
complete Privacy Act Statement in the
Federal Register published on April 11,
2000 (65 FR 19477), or visit https://
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Mr.
John Johnson, Attorney-Advisor, FRA
Office of Chief Counsel, 1200 New
Jersey Avenue SE., Mail Stop 25,
Washington, DC 20590, (202) 493–0078,
John.Johnson@dot.gov.
SUPPLEMENTARY INFORMATION: FRA is
issuing this notice to advise the public
that it intends to grant Amtrak a waiver
from FRA’s Buy America policy for the
use of the following eight components
of Tier III high-speed rail (HSR)
trainsets: (1) Aluminum car body shells
(shell structure/frame-end, floor, roof,
side); (2) Integrated cab/CEM structure;
(3) vehicle paint; (4) brake control unit;
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(5) disc brake equipment; (6) tread brake
equipment/tread cleaners; (7) brake
valves, and (8) parking brake units
(collectively ‘‘Components’’). The total
estimated cost of the Components under
this waiver is $108.3 million, or 6.8
percent of the estimated $1.6 billion
cost for the 28 HSR trainsets and spare
Components Amtrak will purchase.
Amtrak is seeking a loan under FRA’s
Railroad Rehabilitation & Improvement
Financing (RRIF) loan program to
finance its HSR trainset procurement.
FRA believes a waiver is appropriate
because domestically-produced HSR
Components are not currently available
in the United States, and even if they
could be produced in the United States,
they would not be delivered within a
reasonable time. Although FRA is
granting Amtrak’s request for these
Components, Amtrak’s HSR trainset
supplier must assemble the HSR
trainsets (other than two (2) prototypes
under a previous FRA waiver) in the
United States using Components and
the other 126 HSR components the
supplier or its contractors will
manufacture in United States.
The letter granting Amtrak’s request is
quoted below:
Bernard F. Reynolds, Vice President—
Procurement & Logistics, National
Railroad Passenger Corporation, 60
Massachusetts Ave NE., Washington, DC
20002.
Re: Request for Waiver of Buy America
Requirement for Components of
Next Generation Trainsets
Dear Mr. Reynolds:
This letter is in response to your
request dated November 3, 2014, that
the Federal Railroad Administration
(FRA) grant the National Railroad
Passenger Corporation (Amtrak), a
waiver from FRA’s Buy America policy
applicable to FRA’s Railroad
Rehabilitation & Improvement
Financing (RRIF) loan program, which
follows the requirements of 49 U.S.C.
24405(a). FRA’s Buy America
requirement for rolling stock, including
HSR trainsets, requires domestic final
assembly of the trainsets and that all the
components be manufactured in the
United States.
FRA may waive the Buy America
requirements if FRA finds that: (A)
Applying the requirements would be
inconsistent with the public interest; (B)
the steel, iron, and goods manufactured
in the United States are not produced in
sufficient and reasonably available
amounts or are not of a satisfactory
quality; (C) rolling stock or power train
equipment cannot be bought or
delivered to the United States within a
reasonable time; or (D) including
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70075
domestic material will increase the cost
of the overall project by more than 25
percent.
Amtrak seeks a waiver for the
following components of Tier III highspeed rail (HSR) trainsets: (1)
Aluminum car body shells (shell
structure/frame-end, floor, roof, side);
(2) Integrated cab/CEM structure; (3)
vehicle paint; (4) brake control unit; (5)
disc brake equipment; (6) tread brake
equipment/tread cleaners; (7) brake
valves, and (8) parking brake units
(Components). For the reasons
contained in this letter, FRA is granting
Amtrak’s request.
Although FRA is granting Amtrak’s
request for these eight (8) Components,
Amtrak’s HSR supplier or its contractors
will manufacture the other 126 HSR
components, or 94 percent of all
components, in the United States.
Amtrak estimates the total cost of the
Components under this waiver request
is approximately 6.8 percent of the
estimated $1.6 billion cost for the 28
HSR trainsets and spare Components
Amtrak will purchase. The cost by
component per trainset is:
Component
(1) Aluminum car body shells
(shell structure/frame-end,
roof, side) ..........................
(2) Integrated cab/CEM
structure ............................
(3) Vehicle paint ...................
(4) Brake control unit; (5)
disc brake equipment; (6)
tread brake equipment/
tread cleaners; (7) brake
valves, and (8) parking
brake units ........................
Total per Trainset ..........
Estimated cost
per trainset
$2,960,000
$71,000
$78,000
$659,000
$3,768,000
In July 2014, Amtrak issued a Request
for Proposal for its procurement of HSR
trainsets. In October 2014, Amtrak
received technical proposals from
manufacturers in response to its Request
for Proposals. After reviewing the
proposals, Amtrak determined there
were seven (7) Components of the
trainsets’ 134 components that each
manufacturer indicated it could not
source domestically. On November 3,
2014, Amtrak requested from the FRA a
Buy America waiver for these seven (7)
components and the HSR trainset paint
(discussed in more detail below).
Coordinating with FRA, in February
2015 Amtrak engaged the Department of
Commerce’s National Institute of
Standards and Technology’s Hollings
Manufacturing Extension Partnership
(NIST–MEP) to scout for domestic
manufacturers of the Components. In its
April 2015 report, NIST–MEP did not
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Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices
identify any suppliers making the exact
Components. NIST–MEP did identify a
total of 23 potential suppliers that either
make products similar to the
Components or claim to have the
capability to manufacture the
Components. FRA asked Amtrak to
investigate whether any of the potential
suppliers could manufacture the
Components. After analyzing the NIST–
MEP report and Amtrak’s report
regarding follow-up discussions with
the potential suppliers, FRA finds that
none of the potential suppliers currently
manufacture the Components.
FRA supports Amtrak’s required
procurement timeline because the
timeline addresses current capacity
constraints on the Northeast Corridor
and increasing demand for passenger
rail. Further Amtrak’s timeline meets
FRA’s goal of establishing Tier III HSR 1
in the United States as soon as possible.
Amtrak wants the HSR trainsets to be in
revenue service by 2018. To meet this
date, the first body shell deliveries must
arrive approximately seventeen (17)
months after notice to proceed, which is
scheduled for February 2016. Final
assembly and 126 of the 134 trainsets’
components will be manufactured in the
United States. FRA believes that
operational Tier III HSR in the United
States will increase the attractiveness
Number of
potential
suppliers
Component
FRA findings
(1) Car body Shell ....................................
12
(2) Integrated cab/CEM structure .............
5
(3) Paint ....................................................
3
Brake System—(4) Brake Control Unit;
(5) Disc Brake Equipment; (6) Tread
Brake Equipment/Tread Cleaners; (7)
Brake Valves, and (8) Parking Brake
Units.
mstockstill on DSK4VPTVN1PROD with NOTICES
for manufacturers to establish more HSR
factories in the United States, strengthen
the business case for a new domestic
HSR trainset industry to develop,
stimulate the domestic supply chain,
and bring new high quality jobs to the
United States. As a result, FRA
concludes that none of the NIST–MEP
identified suppliers could design, test,
manufacture, and deliver the
Components to meet Amtrak’s FRAsupported timeline, which means they
cannot deliver the Components within a
reasonable time.
Here is a summary of FRA’s analysis
based on Amtrak’s and NIST–MEP’s
outreach efforts:
6
• None of the 12 potential suppliers currently manufacture aluminum car body
shells for passenger/HSR trains.
• After learning more about the requirements of the project, 6 of 12 potential suppliers expressed that they are not interested in the opportunity.
• For the remaining 6 potential suppliers, FRA found at least one of the following
applied to each manufacturer.
Æ inexperience working with aluminum.
Æ no experience building passenger/HSR aluminum car bodies.
Æ no relevant experience manufacturing aluminum car bodies; and/or.
Æ have no equipment to manufacture larger extrusions necessary for HSR car
body shell.
• FRA estimates that it could take car body shell manufacturers a minimum of 18
to 24 months to establish the required facilities and techniques. As a result, FRA
finds the remaining 6 potential suppliers not capable of manufacturing the car
body shell within a reasonable time.
• None of the 5 potential suppliers currently manufacture CEM structures.
• 3 of 5 potential suppliers were not interested in the opportunity after learning
more about it.
• For the remaining 2 potential suppliers, FRA found at least one of the following
applied to each manufacturer.
Æ no relevant experience manufacturing CEM structures; and/or
Æ no experience building passenger/HSR CEM structures or similar relevant experience fabricating aluminum CEM structures.
FRA estimates it could take CEM structure manufacturers a minimum of 18 to 24
months to establish the required facilities and techniques. As a result, FRA finds
the remaining 2 potential suppliers not capable of manufacturing the CEM structure shell within a reasonable time.
• As applied to all 3 potential suppliers.
Æ Paint must be applied where car body shells are manufactured to protect against
corrosion and oxidation while in transit to the U.S.
Æ The requirements, including foreign environmental standards, for the trainsets’
paint would involve at least one year to develop the paint, have it tested and
qualified for this particular use, and then exported.
As a result, FRA finds that paint cannot be manufactured and delivered in a reasonable time.
• For safety critical items such as the brake system, FRA believes the brake system and its components must be supplied by a single, service-proven supplier.
• None of the 6 potential suppliers currently manufacture brake systems for HSR
trains.
• 5 of 6 potential suppliers have no experience manufacturing rail brake systems.
Æ FRA finds that these 5 potential suppliers cannot supply the brake system.
• 1 potential supplier is a major domestic brake system supplier that has experience manufacturing other types of non-HSR passenger rail brake systems.
Æ FRA estimates it would take at least two years to deliver a HSR brake system.
1 Tier III HSR trainsets are capable of traveling
220 miles per hour.
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Number of
potential
suppliers
Component
70077
FRA findings
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Æ FRA finds that the time to design, test, and manufacture a HSR brake system
precludes this manufacturer from delivering the system in a reasonable time.
On November 20, 2014, FRA
published on its Web site public notice
of Amtrak’s waiver request. FRA
received thirteen (13) online comments
to this notice. Only one of the
commenters identified a domestic
source for any of the Components. The
commenter asserted that the potential
supplier identified in the table above is
a major domestic brake system supplier
and is capable of providing the brake
systems. However, as described above,
FRA has determined that brake systems
are not domestically available for HSR
trainsets nor can the one potential
supplier deliver a brake system within
a reasonable time. Of the thirteen (13)
comments, ten (10) commenters were in
favor of granting the waiver and three
were against granting the waiver.
Several of the ten (10) commenters in
favor of granting the waiver cited safety
as their reason. Many commenters also
asserted that granting the waiver would
be necessary to establish HSR in the
United States and would lay a
foundation for future domestic HSR
manufacturing.
The three commenters opposing the
waiver argued that granting a waiver
will lead to more waivers and that
manufacturers could produce the HSR
trainset components in the United
States. Though domestic production of
the HSR trainset components for which
a waiver has been requested is
theoretically possible, FRA believes
significant safety, capacity, and
technology transfer problems would
result. Moreover, the delays to overcome
these issues would negatively impact
the schedules proposed by Amtrak.
FRA believes a waiver is appropriate
because the Components are not
manufactured in the United States and
because domestically-produced
Components meeting the specific safety/
service-proven, technical, design, and
schedule needs of Amtrak cannot be
delivered within a reasonable time. FRA
bases its determination on the
following:
• All of Amtrak’s bidders
independently indicated in their
responses to Amtrak’s Request for
Proposal that the Components, other
than vehicle paint, could not be sourced
domestically. As noted above, the paint
may be able to be manufactured
domestically but cannot be produced
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and exported in time to for use on the
car shell components.
• The National Institute of Standards
and Technology’s Hollings
Manufacturing Extension Partnership
(NIST–MEP) did not identify any
domestic manufacturer currently
producing the Components.
• Amtrak conducted extensive
outreach with manufacturers NIST–MEP
identified as potential future
manufacturers for the non-available
components. FRA agrees with Amtrak’s
assertion that even if any of the
identified manufacturers would attempt
to produce the Components
domestically, the Components could not
be bought or produced in the United
States within a reasonable time.
Pursuant to 49 U.S.C. 24405(a)(4),
FRA is publishing notice of its decision
to grant Amtrak’s waiver request in the
Federal Register to provide notice of
such finding and an opportunity for
public comment after which this waiver
will become effective. This waiver
applies only to the HSR trainset
Components, including spares, for
Amtrak’s HSR trainset procurement as
identified in its November 3, 2014
waiver request. Moreover, excluding
assembly of prototype trainsets, which
have been addressed in a separate
waiver, the trainsets must be finally
assembled in the United States, and all
other components that are not described
in this waiver must have been produced
in the United States or be the subject of
a future waiver.
Questions about this letter can be
directed to, John Johnson, AttorneyAdvisor, at john.johnson@dot.gov or
202–493–0078.
Sincerely,
Sarah Feinberg
Administrator
Sarah L. Inderbitzin,
Acting Chief Counsel.
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
[Docket No. DOT–OST–2015–0194]
Fast Track Generic Clearance for the
Collection of Qualitative Feedback on
Agency Service Delivery
Office of the Secretary (OST),
Department of Transportation (DOT).
ACTION: Notice and request for
comments.
AGENCY:
In accordance with the
Paperwork Reduction Act of 1995, the
Department of Transportation’s (DOT)
Office of the Secretary (OST) announces
its plan to submit the Information
Collection Request (ICR) described
below to the Office of Management and
Budget (OMB) for its review and
approval and invites public comment.
Executive Order 12862 directs Federal
agencies to provide service to the public
that matches or exceeds the best service
available in the private sector. In order
to work continuously to ensure that our
programs are effective and meet our
customers’ needs, the Department of
Transportation (DOT) seeks to obtain
OMB approval of a generic clearance to
collect feedback on our service delivery.
DATES: Comments on this notice must be
received by January 11, 2016.
ADDRESSES: Your comments should be
identified by Docket No. DOT–OST–
2015–0194 and may be submitted
through one of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the online
instructions for submitting comments.
• Fax: 1–202–493–2251.
• Mail or Hand Delivery: Docket
Management Facility, U.S. Department
of Transportation, 1200 New Jersey
Avenue SE., West Building, Room W12–
140, Washington, DC 20590, between 9
a.m. and 5 p.m., Monday through
Friday, except on Federal holidays.
All written comments will be
available for public inspection on
Regulations.gov.
SUMMARY:
[FR Doc. 2015–28708 Filed 11–10–15; 8:45 am]
FOR FURTHER INFORMATION CONTACT:
BILLING CODE 4910–06–P
Habib Azarsina, Office of the Chief
Information Officer, Office of the
Secretary, U.S. Department of
Transportation, 1200 New Jersey
Avenue SE., Washington, DC 20590,
202–366–1965 (Voice), 202–366–7870
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]]>Agencies
[Federal Register Volume 80, Number 218 (Thursday, November 12, 2015)]
[Notices]
[Pages 70074-70077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28708]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
[Docket No. FRA-2012-0033]
Notice of Intent to Grant a Buy America Waiver to the National
Railroad Passenger Corporation (Amtrak) for the Use of Eight (8) Non-
Domestic Components in Tier III High-Speed Rail Trainsets
AGENCY: Federal Railroad Administration (FRA), United States Department
of Transportation (DOT).
ACTION: Notice of intent to grant Buy America waiver.
-----------------------------------------------------------------------
SUMMARY: : FRA is issuing this notice to advise the public that it
intends to grant Amtrak a waiver from FRA's Buy America policy for the
use of eight components of Tier III high-speed rail (HSR) trainsets.
DATES: Written comments on FRA's determination to grant Amtrak's Buy
[[Page 70075]]
America waiver request should be provided to the FRA on or before
November 27, 2015.
ADDRESSES: Please submit your comments by one of the following means,
identifying your submissions by docket number FRA-2012-0033. All
electronic submissions must be made to the U.S. Government electronic
site at https://www.regulations.gov. Commenters should follow the
instructions below for mailed and hand-delivered comments:
(1) Web site: https://www.regulations.gov. Follow the instructions
for submitting comments on the U.S. Government electronic docket site;
(2) Fax: (202) 493-2251;
(3) Mail: U.S. Department of Transportation, 1200 New Jersey Avenue
SE., Docket Operations, M-30, Room W12-140, Washington, DC 20590-0001;
or
(4) Hand Delivery: Room W12-140 on the first floor of the West
Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
Instructions: All submissions must reference the ``Federal Railroad
Administration'' and include docket number FRA-2012-0033. Due to
security procedures in effect since October 2001, mail received through
the U.S. Postal Service may be subject to delays. Parties making
submissions responsive to this notice should consider using an express
mail firm to ensure the prompt filing of any submissions not filed
electronically or by hand. Note that all submissions received,
including any personal information therein, will be posted without
change or alteration to https://www.regulations.gov. For more
information, you may review DOT's complete Privacy Act Statement in the
Federal Register published on April 11, 2000 (65 FR 19477), or visit
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Mr. John Johnson, Attorney-Advisor,
FRA Office of Chief Counsel, 1200 New Jersey Avenue SE., Mail Stop 25,
Washington, DC 20590, (202) 493-0078, John.Johnson@dot.gov.
SUPPLEMENTARY INFORMATION: FRA is issuing this notice to advise the
public that it intends to grant Amtrak a waiver from FRA's Buy America
policy for the use of the following eight components of Tier III high-
speed rail (HSR) trainsets: (1) Aluminum car body shells (shell
structure/frame-end, floor, roof, side); (2) Integrated cab/CEM
structure; (3) vehicle paint; (4) brake control unit; (5) disc brake
equipment; (6) tread brake equipment/tread cleaners; (7) brake valves,
and (8) parking brake units (collectively ``Components''). The total
estimated cost of the Components under this waiver is $108.3 million,
or 6.8 percent of the estimated $1.6 billion cost for the 28 HSR
trainsets and spare Components Amtrak will purchase. Amtrak is seeking
a loan under FRA's Railroad Rehabilitation & Improvement Financing
(RRIF) loan program to finance its HSR trainset procurement. FRA
believes a waiver is appropriate because domestically-produced HSR
Components are not currently available in the United States, and even
if they could be produced in the United States, they would not be
delivered within a reasonable time. Although FRA is granting Amtrak's
request for these Components, Amtrak's HSR trainset supplier must
assemble the HSR trainsets (other than two (2) prototypes under a
previous FRA waiver) in the United States using Components and the
other 126 HSR components the supplier or its contractors will
manufacture in United States.
The letter granting Amtrak's request is quoted below:
Bernard F. Reynolds, Vice President--Procurement & Logistics, National
Railroad Passenger Corporation, 60 Massachusetts Ave NE., Washington,
DC 20002.
Re: Request for Waiver of Buy America Requirement for Components of
Next Generation Trainsets
Dear Mr. Reynolds:
This letter is in response to your request dated November 3, 2014,
that the Federal Railroad Administration (FRA) grant the National
Railroad Passenger Corporation (Amtrak), a waiver from FRA's Buy
America policy applicable to FRA's Railroad Rehabilitation &
Improvement Financing (RRIF) loan program, which follows the
requirements of 49 U.S.C. 24405(a). FRA's Buy America requirement for
rolling stock, including HSR trainsets, requires domestic final
assembly of the trainsets and that all the components be manufactured
in the United States.
FRA may waive the Buy America requirements if FRA finds that: (A)
Applying the requirements would be inconsistent with the public
interest; (B) the steel, iron, and goods manufactured in the United
States are not produced in sufficient and reasonably available amounts
or are not of a satisfactory quality; (C) rolling stock or power train
equipment cannot be bought or delivered to 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.
Amtrak seeks a waiver for the following components of Tier III
high-speed rail (HSR) trainsets: (1) Aluminum car body shells (shell
structure/frame-end, floor, roof, side); (2) Integrated cab/CEM
structure; (3) vehicle paint; (4) brake control unit; (5) disc brake
equipment; (6) tread brake equipment/tread cleaners; (7) brake valves,
and (8) parking brake units (Components). For the reasons contained in
this letter, FRA is granting Amtrak's request.
Although FRA is granting Amtrak's request for these eight (8)
Components, Amtrak's HSR supplier or its contractors will manufacture
the other 126 HSR components, or 94 percent of all components, in the
United States. Amtrak estimates the total cost of the Components under
this waiver request is approximately 6.8 percent of the estimated $1.6
billion cost for the 28 HSR trainsets and spare Components Amtrak will
purchase. The cost by component per trainset is:
------------------------------------------------------------------------
Estimated cost
Component per trainset
------------------------------------------------------------------------
(1) Aluminum car body shells (shell structure/frame-end, $2,960,000
roof, side)............................................
(2) Integrated cab/CEM structure........................ $71,000
(3) Vehicle paint....................................... $78,000
(4) Brake control unit; (5) disc brake equipment; (6) $659,000
tread brake equipment/tread cleaners; (7) brake valves,
and (8) parking brake units............................
------------------------------------------------------------------------
Total per Trainset.................................. $3,768,000
------------------------------------------------------------------------
In July 2014, Amtrak issued a Request for Proposal for its
procurement of HSR trainsets. In October 2014, Amtrak received
technical proposals from manufacturers in response to its Request for
Proposals. After reviewing the proposals, Amtrak determined there were
seven (7) Components of the trainsets' 134 components that each
manufacturer indicated it could not source domestically. On November 3,
2014, Amtrak requested from the FRA a Buy America waiver for these
seven (7) components and the HSR trainset paint (discussed in more
detail below).
Coordinating with FRA, in February 2015 Amtrak engaged the
Department of Commerce's National Institute of Standards and
Technology's Hollings Manufacturing Extension Partnership (NIST-MEP) to
scout for domestic manufacturers of the Components. In its April 2015
report, NIST-MEP did not
[[Page 70076]]
identify any suppliers making the exact Components. NIST-MEP did
identify a total of 23 potential suppliers that either make products
similar to the Components or claim to have the capability to
manufacture the Components. FRA asked Amtrak to investigate whether any
of the potential suppliers could manufacture the Components. After
analyzing the NIST-MEP report and Amtrak's report regarding follow-up
discussions with the potential suppliers, FRA finds that none of the
potential suppliers currently manufacture the Components.
FRA supports Amtrak's required procurement timeline because the
timeline addresses current capacity constraints on the Northeast
Corridor and increasing demand for passenger rail. Further Amtrak's
timeline meets FRA's goal of establishing Tier III HSR \1\ in the
United States as soon as possible. Amtrak wants the HSR trainsets to be
in revenue service by 2018. To meet this date, the first body shell
deliveries must arrive approximately seventeen (17) months after notice
to proceed, which is scheduled for February 2016. Final assembly and
126 of the 134 trainsets' components will be manufactured in the United
States. FRA believes that operational Tier III HSR in the United States
will increase the attractiveness for manufacturers to establish more
HSR factories in the United States, strengthen the business case for a
new domestic HSR trainset industry to develop, stimulate the domestic
supply chain, and bring new high quality jobs to the United States. As
a result, FRA concludes that none of the NIST-MEP identified suppliers
could design, test, manufacture, and deliver the Components to meet
Amtrak's FRA-supported timeline, which means they cannot deliver the
Components within a reasonable time.
---------------------------------------------------------------------------
\1\ Tier III HSR trainsets are capable of traveling 220 miles
per hour.
---------------------------------------------------------------------------
Here is a summary of FRA's analysis based on Amtrak's and NIST-
MEP's outreach efforts:
------------------------------------------------------------------------
Number of
Component potential FRA findings
suppliers
------------------------------------------------------------------------
(1) Car body Shell............. 12 None of the 12
potential suppliers
currently manufacture
aluminum car body
shells for passenger/
HSR trains.
After learning
more about the
requirements of the
project, 6 of 12
potential suppliers
expressed that they
are not interested in
the opportunity.
For the
remaining 6 potential
suppliers, FRA found
at least one of the
following applied to
each manufacturer.
[cir] inexperience
working with aluminum.
[cir] no experience
building passenger/HSR
aluminum car bodies.
[cir] no relevant
experience
manufacturing aluminum
car bodies; and/or.
[cir] have no equipment
to manufacture larger
extrusions necessary
for HSR car body
shell.
FRA estimates
that it could take car
body shell
manufacturers a
minimum of 18 to 24
months to establish
the required
facilities and
techniques. As a
result, FRA finds the
remaining 6 potential
suppliers not capable
of manufacturing the
car body shell within
a reasonable time.
(2) Integrated cab/CEM 5 None of the 5
structure. potential suppliers
currently manufacture
CEM structures.
3 of 5
potential suppliers
were not interested in
the opportunity after
learning more about
it.
For the
remaining 2 potential
suppliers, FRA found
at least one of the
following applied to
each manufacturer.
[cir] no relevant
experience
manufacturing CEM
structures; and/or
[cir] no experience
building passenger/HSR
CEM structures or
similar relevant
experience fabricating
aluminum CEM
structures.
FRA estimates it could
take CEM structure
manufacturers a
minimum of 18 to 24
months to establish
the required
facilities and
techniques. As a
result, FRA finds the
remaining 2 potential
suppliers not capable
of manufacturing the
CEM structure shell
within a reasonable
time.
(3) Paint...................... 3 As applied to
all 3 potential
suppliers.
[cir] Paint must be
applied where car body
shells are
manufactured to
protect against
corrosion and
oxidation while in
transit to the U.S.
[cir] The requirements,
including foreign
environmental
standards, for the
trainsets' paint would
involve at least one
year to develop the
paint, have it tested
and qualified for this
particular use, and
then exported.
As a result, FRA finds
that paint cannot be
manufactured and
delivered in a
reasonable time.
Brake System--(4) Brake Control 6 For safety
Unit; (5) Disc Brake critical items such as
Equipment; (6) Tread Brake the brake system, FRA
Equipment/Tread Cleaners; (7) believes the brake
Brake Valves, and (8) Parking system and its
Brake Units. components must be
supplied by a single,
service-proven
supplier.
None of the 6
potential suppliers
currently manufacture
brake systems for HSR
trains.
5 of 6
potential suppliers
have no experience
manufacturing rail
brake systems.
[cir] FRA finds that
these 5 potential
suppliers cannot
supply the brake
system.
1 potential
supplier is a major
domestic brake system
supplier that has
experience
manufacturing other
types of non-HSR
passenger rail brake
systems.
[cir] FRA estimates it
would take at least
two years to deliver a
HSR brake system.
[[Page 70077]]
[cir] FRA finds that
the time to design,
test, and manufacture
a HSR brake system
precludes this
manufacturer from
delivering the system
in a reasonable time.
------------------------------------------------------------------------
On November 20, 2014, FRA published on its Web site public notice
of Amtrak's waiver request. FRA received thirteen (13) online comments
to this notice. Only one of the commenters identified a domestic source
for any of the Components. The commenter asserted that the potential
supplier identified in the table above is a major domestic brake system
supplier and is capable of providing the brake systems. However, as
described above, FRA has determined that brake systems are not
domestically available for HSR trainsets nor can the one potential
supplier deliver a brake system within a reasonable time. Of the
thirteen (13) comments, ten (10) commenters were in favor of granting
the waiver and three were against granting the waiver. Several of the
ten (10) commenters in favor of granting the waiver cited safety as
their reason. Many commenters also asserted that granting the waiver
would be necessary to establish HSR in the United States and would lay
a foundation for future domestic HSR manufacturing.
The three commenters opposing the waiver argued that granting a
waiver will lead to more waivers and that manufacturers could produce
the HSR trainset components in the United States. Though domestic
production of the HSR trainset components for which a waiver has been
requested is theoretically possible, FRA believes significant safety,
capacity, and technology transfer problems would result. Moreover, the
delays to overcome these issues would negatively impact the schedules
proposed by Amtrak.
FRA believes a waiver is appropriate because the Components are not
manufactured in the United States and because domestically-produced
Components meeting the specific safety/service-proven, technical,
design, and schedule needs of Amtrak cannot be delivered within a
reasonable time. FRA bases its determination on the following:
All of Amtrak's bidders independently indicated in their
responses to Amtrak's Request for Proposal that the Components, other
than vehicle paint, could not be sourced domestically. As noted above,
the paint may be able to be manufactured domestically but cannot be
produced and exported in time to for use on the car shell components.
The National Institute of Standards and Technology's
Hollings Manufacturing Extension Partnership (NIST-MEP) did not
identify any domestic manufacturer currently producing the Components.
Amtrak conducted extensive outreach with manufacturers
NIST-MEP identified as potential future manufacturers for the non-
available components. FRA agrees with Amtrak's assertion that even if
any of the identified manufacturers would attempt to produce the
Components domestically, the Components could not be bought or produced
in the United States within a reasonable time.
Pursuant to 49 U.S.C. 24405(a)(4), FRA is publishing notice of its
decision to grant Amtrak's waiver request in the Federal Register to
provide notice of such finding and an opportunity for public comment
after which this waiver will become effective. This waiver applies only
to the HSR trainset Components, including spares, for Amtrak's HSR
trainset procurement as identified in its November 3, 2014 waiver
request. Moreover, excluding assembly of prototype trainsets, which
have been addressed in a separate waiver, the trainsets must be finally
assembled in the United States, and all other components that are not
described in this waiver must have been produced in the United States
or be the subject of a future waiver.
Questions about this letter can be directed to, John Johnson,
Attorney-Advisor, at john.johnson@dot.gov or 202-493-0078.
Sincerely,
Sarah Feinberg
Administrator
Sarah L. Inderbitzin,
Acting Chief Counsel.
[FR Doc. 2015-28708 Filed 11-10-15; 8:45 am]
BILLING CODE 4910-06-P
