Notice of Proposed Buy America Waiver for Ductless Mini-Split System Air Conditioning Systems, 15409-15410 [2016-06416]

Agencies

• Federal Transit Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 81, Number 55 (Tuesday, March 22, 2016)]
[Notices]
[Pages 15409-15410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-06416]



[[Page 15409]]

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-2016-0004]


Notice of Proposed Buy America Waiver for Ductless Mini-Split 
System Air Conditioning Systems

AGENCY: Federal Transit Administration, DOT.

ACTION: Notice of Proposed Buy America waiver and request for comment.

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SUMMARY: The Federal Transit Administration (FTA) received requests 
from the Indianapolis Public Transportation Corporation (IPTC) for a 
Buy America non-availability waiver for the procurement of an Enviroair 
inverter-driven ductless mini-split system air conditioner, from the 
York Adams Transportation Authority (YATA) for ductless split system 
air conditioning units, from Key West Transit (KWT) for a ductless 
mini-split mechanical system for the City of Key West Public 
Transportation Facility, and from the Springfield Redevelopment 
Authority (SRA) for ductless mini-split air conditioners for the Union 
Station Regional Intermodal Transportation Center in Springfield, 
Massachusetts. IPTC is constructing its Downtown Transit Center which 
is expected to be Leadership in Energy and Environmental Design (LEED) 
certified and will incorporate many sustainable and energy efficient 
elements. The Enviroair inverter-driven ductless mini-split system air 
conditioner will contribute to the building's efficiency and is 
essential to achieving silver LEED certification. YATA is currently 
constructing a new Operations and Maintenance Facility in York, 
Pennsylvania and seeks to install several ductless air conditioning 
units at the facility. KWT is finishing construction on the bus transit 
operation and maintenance facility, which is a U.S. Green Building 
Council LEED project. The building contains many sustainable and 
efficient elements, including a variant refrigerant flow (VRF) heating, 
ventilation, and air conditioning (HVAC) system. KWT seeks a waiver for 
this VRF ductless mini-split mechanical system because there is no 
domestic manufacturer. The SRA seeks a waiver for ductless mini-split 
air conditioners as part of the renovation of the existing Terminal 
Building and the construction of a six story garage at the Union 
Station Regional Intermodal Transportation Center, because there is no 
domestic manufacturer. IPIC, YATA, KWT, and SRA seek waivers for these 
air conditioner systems because there are no domestic manufacturers. 49 
U.S.C. 5323(j)(2) and 49 CFR 661.7(c)(2). In accordance with 49 U.S.C. 
5323(j)(3)(A), FTA is providing notice of the non-availability waiver 
requests and seeks public comment before deciding whether to grant the 
requests. If granted, the waivers would apply to one-time procurements 
only for the specific air conditioning systems identified in the waiver 
request.

DATES: Comments must be received by March 29, 2016. Late-filed comments 
will be considered to the extent practicable.

ADDRESSES: Please submit your comments by one of the following means, 
identifying your submissions by docket number FTA-2016-0004:
    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, West Building, Ground Floor, Room W12-
140, Washington, DC 20590-0001.
    4. Hand Delivery: U.S. Department of Transportation, 1200 New 
Jersey Avenue SE., Docket Operations, M-30, West Building, Ground 
Floor, Room W12-140, Washington, DC 20590-0001 between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays.
    Instructions: All submissions must make reference to the ``Federal 
Transit Administration'' and include docket number FTA-2016-0004. Due 
to the security procedures in effect since October 2011, 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 April 11, 2000 (65 FR 19477), or you may 
visit https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Laura Ames, FTA Attorney-Advisor, at 
(202) 366-2743 or Laura.Ames@dot.gov.

SUPPLEMENTARY INFORMATION: The purpose of this notice is to provide 
notice and seek public comment on whether the FTA should grant non-
availability waivers to the Indianapolis Public Transportation 
Corporation (IPTC) for the procurement of an Enviroair inverter-driven 
ductless mini-split system air conditioner, to the York Adams 
Transportation Authority (YATA) for the procurement of ductless split 
system air conditioning units which are needed at the new Operations 
and Maintenance Facility, to Key West Transit (KWT) for the procurement 
of a variable refrigerant flow (VRF) ductless mini-split mechanical 
system, and to the Springfield Redevelopment Authority (SRA) in 
Springfield, Massachusetts for the procurement of nine ductless mini-
split air conditioners for the Union Station Regional Intermodal 
Transportation Center. IPTC, YATA, KWT, and SRA requested Buy America 
non-availability waivers on May 5, 2015, July 26, 2015, December 2, 
2015, and on March 9, 2016, respectfully. All seek non-availability 
waivers since none of these air conditioning systems are produced in 
the United States in sufficient and reasonably available quantities or 
of satisfactory qualities. 49 U.S.C. 5323(j)(2)(A); 49 CFR 661.7(c).
    By way of background, IPTC is constructing its Downtown Transit 
Center and the contractor and subcontractor hired for the project, 
Weddle Bros. Building Group, LLC and Commercial Air Inc., previously 
certified Buy America compliance. After awarding the contract, 
Commercial Air became aware that the inverter-driven ductless mini 
split system air conditioner selected for the center, was non-
compliant. Enviroair manufactures this air conditioning system in 
China, although certain equipment is stocked and shipped from Utica, 
New York. IPTC selected the Enviroair system, which will be installed 
in the transit center's information technology room, because it will 
keep the room constantly cool and is the only way to cool the room in 
the space provided. IPTC also hopes to receive Silver LEED 
certification for the transit center and the Enviroair system is 
critical for achieving this certification. IPTC identified six other 
ductless mini-split air condition system manufacturers, all of which 
are manufactured abroad.
    YATA seeks to install multiple ductless split system air 
conditioning units in its Operations and Maintenance Facility. These 
units will regulate environmental conditions in areas with specific 
temperature and/or humidity requirements, such as in server rooms or 
elevator machine rooms, or in rooms where conventional ductwork is not 
possible. YATA's successful bidder certified Buy America compliance, 
although later learned that the units

[[Page 15410]]

from ECR international-EMI-USA of Utica, New York, are in fact 
manufactured abroad. YATA identified one ductless split system unit 
that is manufactured in the U.S. by Modine, however, this unit has a 
larger capacity than YATA's project requirements for the Operations and 
Maintenance Facility. Use of this unit would result in constant 
compressor cycling and a limited lifespan. Moreover, YATA states that 
it cannot use a standard split system unit as an alternative to the 
ductless split system, because a standard system is incapable of 
treating ventilation air and the required ductwork cannot be installed 
in locations that need environmental control. Therefore, no domestic 
manufacturer exists that would satisfy YATA's project needs.
    KWT is completing construction of its City of Key West Public 
Transportation Facility, which is a U.S. Green Building Council LEED 
project and includes many sustainable and efficient elements, including 
that of the HVAC system. The project consists of an 18,300 square foot 
bus operations and maintenance building, a 2,100 square foot bus wash 
building, fueling station, and parking facilities. The facility will 
serve as the City's transportation operations center and will provide 
maintenance, repair, cleaning, and bus parking facilities. The front 
portion of the main building includes offices for administration and 
operations, while the rear portion provides space for bus maintenance, 
repairs and cleaning, parts storage and technician amenities.
    According to KWT's waiver request, the HVAC system is Buy America-
compliant, with the exception of the VRF mechanical system which will 
be placed in three of the electrical, mechanical, and server rooms in 
the new facility. KWT states that these rooms must be able to function 
separately from the main operations building. KWT also is building this 
facility to be LEED silver certified and the energy-efficient VRF 
system will help KWT attain this certification. The VRF system sought 
will also better accommodate spatial constraints since the new facility 
is surrounded by a landfill, school bus parking lot, and other 
construction projects. It is also located in a highly-trafficked area, 
which limits the footprint of the project. Unlike other HVAC systems, 
the ductless mini-split system will be able to fit into the available 
space.
    KWT is installing a Carrier ductless mini-split system in the 
facility. Before selecting this system, KWT conducted extensive 
research and reached out to domestic manufacturers, however, KWT was 
unable to find a domestically manufactured mini split air conditioning 
system. In fact, KWT states that it contacted the remaining America 
manufacturer of VRF HVAC systems and this manufacturer ceased 
production two years ago. As a result, KWT procured the Carrier 
ductless mini-split air conditioning equipment for the facility as no 
domestic manufacturer was available.
    SRA is constructing the Union Station Regional Intermodal 
Transportation Center, which includes renovation of the existing 
Terminal Building and the construction of a six story parking garage. 
SRA is seeking to procure nine ductless mini-split air conditioners for 
the construction project. Each building within the transportation 
center will have its own HVAC system. SRA states that it is necessary 
to install ductless mini-split air conditioners in each individual room 
in order to maintain environs in each room. The air conditioners will 
be independent of other heating and cooling systems and will be backed 
up by a generator. Initially, SRA's contractor thought that Trane's 
product was Buy America-compliant. Subsequently, however, Trane 
notified SRA that its product was mislabeled and is actually foreign-
made. SRA also contacted 8 other companies who manufacture ductless 
mini-split air conditioners, although none of these companies 
manufacturer the product domestically. As a result, SRA is seeking a 
non-availability waiver for the ductless mini-split air conditioners as 
there is no domestic manufacturer.
    FTA also conducted a scouting search for ductless air conditioning 
systems through its Interagency Agreement with the U.S. Department of 
Commerce's National Institute of Standards and Technology (NIST). The 
scouting search identified two domestic manufacturers as potential 
matches for this opportunity: Kentuckiana Curb Company/KCC 
International in Louisville, Kentucky and Climate Conditioning Company, 
Inc./Liebert also in Louisville, Kentucky. The manufacturers identified 
either produce similar products to the ductless air conditioning 
systems, possess the capabilities to produce ductless air conditioning 
systems, have produced an item similar to ductless air conditioning 
systems in the past, or have expressed a business interest in producing 
ductless air conditioning systems. Upon request from FTA, IPTC and YATA 
reached out to these potential domestic suppliers. However, neither 
company manufactures the specific mini-split air conditioning systems 
sought and as described in this Notice. As such, IPTC and YATA are 
pursuing their non-availability waiver applications. FTA did not reach 
out to KWT or SRA as they submitted their waiver requests after 
scouting was complete.
    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 take 
place in the United States; and (2) all of the components of the 
product are 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).
    The purpose of this Notice is to publish IPTC's, YATA's, KWT's, and 
SRA's requests and to seek public comment from all interested parties 
in accordance with 49 U.S.C. 5323(j)(3)(A). Comments will help FTA 
understand completely the facts surrounding the requests, including the 
merits of the requests. A full copy of the request has been placed in 
docket number FTA-2016-0004.

    Issued on March 16, 2016.
Dana Nifosi,
Deputy Chief Counsel.
[FR Doc. 2016-06416 Filed 3-21-16; 8:45 am]
BILLING CODE 4910-57-P