Pipeline Safety: Proposed Project-Specific Waiver of the Build America, Buy America Act Requirements for City Utilities of Springfield, Missouri for Certain Products, 79362-79364 [2024-22118]
Download as PDF
<![CDATA[
lotter on DSK11XQN23PROD with NOTICES1
79362
Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices
that only $856,941 of the total project
budget will be spent on materials. Out
of this amount, PGW anticipates that
only about $140,201 would be spent on
the products proposed to be waived
herein—or 16 percent of PGW’s
materials costs. This $140,201 is further
split across ten different products.
By contrast, the proposed waiver
would have a significant impact on
PGW’s ability to successfully complete
its NGDISM projects. Absent the
proposed waiver, PGW will not be able
to comply with BABA requirements for
the above listed products, either because
PGW’s market research was not able to
identify any domestic sources, or it is
not feasible for PGW to utilize the
domestic source it did identify due to
the extreme construction delays that
would result.
While PGW did find a domestic
source for caps, couplings, and
stiffeners, the manufacturer indicated
that it would need a lead time of 14- to
16-weeks from the date of order before
it could supply BABA-compliant
versions of these products to PGW. To
ensure the safety of the public, PGW
would first need to order a sample of the
new products to conduct quality control
testing, which PGW indicated could
take up to 4 weeks. If the new products
pass quality control testing, PGW would
then need to place a full order for the
new products, resulting in another 14to 16-week lead time to receive them.
The entire process, from initial ordering
of sample products to receipt and
acceptance of the full order, could result
in a construction delay of up to 36
weeks. Distribution gas construction
cannot proceed without these primary
components and the alternative
extended lead time prolongs the time of
exposure to potential leaks and threats
to life and property. A delayed
construction schedule could result in
safety impacts for PGW’s customers,
especially those located in five USDOTdesignated historically disadvantaged
neighborhoods within the project area.
PGW estimates that such a delay would
push its projected FY2025 project
completion to the summer of FY2026,
subjecting these customers to an
additional winter season with sag
service by cast iron pipes—a time when
gas leaks are more likely to occur due
to frost heave and other winter ground
movement. Combined with the age of
PGW’s cast iron pipelines in these
neighborhoods, this would create an
appreciably increased risk to residents
in these neighborhoods.
Under OMB Memorandum M–24–02,
agencies are expected to assess
‘‘whether a significant portion of any
cost advantage of a foreign-sourced
VerDate Sep<11>2014
17:09 Sep 26, 2024
Jkt 262001
product is the result of the use of
dumped steel, iron, or manufactured
products or the use of injuriously
subsidized steel, iron, or manufactured
products’’ as appropriate before granting
a public interest waiver. PHMSA’s
analysis has concluded that this
assessment is not applicable to this
waiver, as it is being proposed on the
basis of nonavailability, rather than
public interest or unreasonable cost.
PHMSA will consider all comments
received in the initial 15-day comment
period during our consideration of the
proposed waiver, as required by section
70914(c)(2) of the IIJA. Comments
received after this period, but before
notice of our finding is published in the
Federal Register, will be considered to
the extent practicable.
Issued in Washington, DC, on September
23, 2024, under authority delegated in 49
CFR 1.97.
Tristan H. Brown,
Deputy Administrator.
[FR Doc. 2024–22120 Filed 9–26–24; 8:45 am]
BILLING CODE 4910–60–P
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials
Safety Administration
[Docket No. PHMSA–2024–0151]
Pipeline Safety: Proposed ProjectSpecific Waiver of the Build America,
Buy America Act Requirements for
City Utilities of Springfield, Missouri
for Certain Products
Pipeline and Hazardous
Materials Safety Administration
(PHMSA), Department of Transportation
(DOT).
ACTION: Notice; request for comments.
AGENCY:
The Pipeline and Hazardous
Materials Safety Administration
(PHMSA) proposes to waive the Build
America, Buy America (BABA) Act’s
domestic preference requirements for
certain products that City Utilities of
Springfield (City Utilities) will use in its
Natural Gas Distribution Infrastructure
Safety and Modernization (NGDISM)
grant project. The proposed waiver
would exempt the following products
used in City Utilities’ project from
BABA requirements on the basis of
nonavailability: locator markers; meter
stops with insulated unions; magnesium
anodes; 1A meter swivels, nuts, and
washers; and direct bury lugs. In
accordance with section 70914(c) of
BABA, PHMSA is seeking public
comments on the proposed waiver.
DATES: Comments must be received by
October 15, 2024.
SUMMARY:
PO 00000
Frm 00137
Fmt 4703
Sfmt 4703
Please submit your
comments to the Federal eRulemaking
Portal at https://www.regulations.gov,
Docket No. PHMSA–2024–0151, and
follow the online instructions for
submitting comments.
Instructions: You must include the
agency name and docket number at the
beginning of your comments. Except as
described below under the heading
‘‘Confidential Business Information,’’ all
submissions received, including any
personal information provided, will be
posted without change or alteration to
https://www.regulations.gov. For more
information, you may review the U.S.
Department of Transportation’s
complete Privacy Act Statement
published in the Federal Register on
April 11, 2000, (65 FR 19477).
FOR FURTHER INFORMATION CONTACT: For
questions about this notice, please
contact Mr. Brandon Hollingshead,
PHMSA Office of the Chief Counsel,
202–366–4400, or via email at
brandon.hollingshead@dot.gov. Office
hours for PHMSA are from 8:30 a.m. to
5 p.m., E.T., Monday through Friday,
except Federal holidays.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
Electronic Access and Filing
A copy of this Notice, all comments
received on this Notice, and all
background material may be viewed
online at https://www.regulations.gov
using the docket number listed above.
Electronic retrieval help and guidelines
are also available at https://
www.regulations.gov. An electronic
copy of this document also may be
downloaded from the Office of the
Federal Register’s website at:
www.FederalRegister.gov and the
Government Publishing Office’s website
at: www.GovInfo.gov.
Confidential Business Information
Confidential Business Information
(CBI) is commercial or financial
information that is both customarily and
actually treated as private by its owner.
Under the Freedom of Information Act
(FOIA) (5 U.S.C. 552), CBI is exempt
from public disclosure. If your
comments responsive to this notice
contain commercial or financial
information that is customarily treated
as private, that you actually treat as
private, and that is relevant or
responsive to this notice, it is important
that you clearly designate the submitted
comments as CBI. You may ask PHMSA
to give confidential treatment to
information you give to the agency by
taking the following steps: (1) mark each
page of the original document
submission containing CBI as
E:\FR\FM\27SEN1.SGM
27SEN1
Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices
‘‘Confidential’’; (2) send PHMSA, along
with the original document, a second
copy of the original document with the
CBI deleted; and (3) explain why the
information you are submitting is CBI.
Unless you are notified otherwise,
PHMSA will treat such marked
submissions as confidential under the
FOIA, and they will not be placed in the
public docket of this Notice.
Submissions containing CBI should be
sent to: Mr. Brandon Hollingshead,
PHMSA, 1200 New Jersey Avenue SE,
E26–316, Washington, DC 20590. Any
comment submissions that PHMSA
receives that are not specifically
designated as CBI will be placed in the
public docket for this matter.
lotter on DSK11XQN23PROD with NOTICES1
Background and Justification for
Waiver
The NGDISM program was authorized
by the Infrastructure Investment and
Jobs Act (IIJA) (Pub. L. 117–58). The
program provides Federal funding to
municipal- or community-owned
natural gas utilities (not including forprofit entities) to repair, rehabilitate, or
replace their natural gas distribution
pipeline systems or portions thereof, or
to acquire equipment to (1) reduce
incidents and fatalities and (2) avoid
economic losses. The IIJA appropriates
$200 million per year for each of Fiscal
Years (FY) 2022 through 2026 for the
NGDISM program ($1 billion in total).
The IIJA provides that 2 percent of this
amount shall be used to pay the
administrative expenses of the NGDISM
program. Accordingly, the total amount
expected to be awarded as grant funding
over the five-year period is
$980,000,000. In FY2022, PHMSA
awarded approximately $196 million to
37 municipal- and community-owned
natural gas utilities across the nation to
fund pipeline replacement projects and
the purchase of leak-detection
equipment.
Congress also enacted the Build
America, Buy America Act (BABA),
providing that ‘‘none of the funds made
available for a Federal financial
assistance program for infrastructure
. . . may be obligated for a project
unless all of the iron, steel,
manufactured products, and
construction materials used in the
project are produced in the United
States.’’ IIJA, Public Law 117–58,
section 70914(a). Under IIJA section
70914(b), PHMSA has authority to
waive the requirements of BABA (1) if
a domestic product is unavailable, (2) if
using a domestic product would present
an unreasonable cost, or (3) if
application of BABA would not be in
the public interest.
VerDate Sep<11>2014
17:09 Sep 26, 2024
Jkt 262001
In FY2022, City Utilities was awarded
$10 million in NGDISM grant funding to
help fund its ‘‘Legacy Plastic Pipe
Replacement Project,’’ which it initiated
in 2010. City Utilities operates
approximately 500 miles of ‘‘Aldyl A’’
plastic distribution pipeline within
disadvantaged areas of Springfield,
Missouri. Aldyl A is a type of plastic
commonly used in gas pipelines in the
1960s and 1970s. Aldyl A has since
been found to be susceptible to
premature brittle-like failures when
subjected to stress intensification,
presenting a high risk of leakage and
associated safety hazards. Additionally,
the Aldyl A pipe operated by City
Utilities lacks continuous tracer wire,
which is used to locate underground
pipelines prior to excavation to avoid
damaging the pipelines in the course of
excavation. The $10 million awarded
would allow City Utilities to speed up
its Legacy Plastic Pipe Replacement
Project by funding the replacement of
approximately 13.7 miles of legacy
Aldyl A pipe and approximately 1,409
legacy plastic gas services with modern,
industry-standard polyethylene pipe.
City Utilities will also use the grant
funds to install a locator system on the
new pipeline, allowing the pipe to be
located during subsequent excavations
near the pipeline, thereby ensuring the
pipe is not damaged.
On December 13, 2023, City Utilities
issued an Invitation for Bids (IFB)
seeking, among other products, locator
markers; meter stops with insulated
union; magnesium anodes; 1A meter
swivels, nuts, and washers; and direct
bury lugs. A more detailed description
of each of these products is provided
below:
• Locator Markers: Locator markers
are small devices placed on buried pipe
and valves designed to help operators
locate the infrastructure before
excavation to help prevent damage to
the pipe from excavation equipment.
(NAICS: 325211)
• Meter Stops with Insulated Union:
Meter Stops are valves that are installed
above a natural gas riser upstream of the
meter to serve as a shut-off valve to
control the flow of gas into the meter
and subsequently into the building’s gas
system. They are crucial for
maintenance, emergencies, or when the
gas service needs to be shut off.
Insulated Unions are fittings attached to
the above ground portion of a natural
gas utility riser in order to electrically
insulate (i.e., isolate) a structure from
the pipeline system to prevent
corrosion. (NAICS: 332919)
• Magnesium Anodes: Magnesium
anodes are blocks of magnesium that are
attached to steel pipe in order to protect
PO 00000
Frm 00138
Fmt 4703
Sfmt 4703
79363
against corrosion damage. (NAICS:
335999)
• 1A Meter Swivels, Nuts, and
Washers: Meter swivels, nuts, and
washers are fasteners used to secure a
gas meter assembly. (NAICS: 33251/
332722)
• Direct Bury Lugs: Direct Bury Lugs
are waterproof connectors used for
splicing low-voltage wires, like those
used in tracer wire, without cutting the
main line wire. They simplify
installation and increase the longevity
of the connection with pre-filled
silicone sealant for waterproofing.
(NAICS: 332999)
The IFB remained open for more than
a month, between December 13, 2023,
and January 15, 2024. In response to the
IFB, City Utilities received seven
responsive bids. However, each of the
respondents to the IFB represented that
they would not be able to certify
compliance with BABA requirements
for the above listed products.
Additionally, prior to City Utilities
requesting this waiver, PHMSA
independently engaged the supplier
scouting services of the National
Institute of Standards and Technology
Manufacturing Extension Partnership
(NIST MEP) to search for domestic
manufacturers of 1A meter swivels,
nuts, and washers. At the conclusion of
the process, NIST MEP identified
several companies who stated they had
the capability to manufacture these
products. However, these companies
declined to do so because it would be
cost prohibitive for them to begin
domestic manufacture of these products
in the quantities that City Utilities needs
to purchase for its NGDISM project.
Accordingly, supplier scouting did not
result in identification of any sources
that could or would manufacture these
products domestically.
On these bases, PHMSA has
determined that locator markers, meter
stops with insulated unions, magnesium
anodes, 1A meter swivels, nuts, and
washers, and direct bury lugs are not
manufactured in the United States in
sufficient and reasonably available
quantities or of a satisfactory quality.
Proposed Waiver and Request for
Comments
PHMSA proposes to waive the
requirements of BABA for the above
listed products for City Utilities’ Legacy
Plastic Pipe Replacement Project funded
by NGDISM grant funds. The waiver
would be applicable only to City
Utilities’ project; it would not be
applicable to any other NGDISM grant
recipient’s projects. The proposed
waiver would be effective from the
effective date of the final waiver through
E:\FR\FM\27SEN1.SGM
27SEN1
lotter on DSK11XQN23PROD with NOTICES1
79364
Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices
the period of performance and closeout
of PHMSA financial assistance for the
project, estimated to be February 21,
2028. If the sources of Federal financial
assistance applied to the project are
changed, PHMSA will consider whether
the waiver continues to be warranted,
taking into account the project’s
development status at that time and any
changes in market conditions for the
products subject to the waiver.
Although City Utilities was awarded
$10 million in NGDISM grant funding in
FY2022, the majority of funding in
NGDISM projects typically goes towards
labor costs rather than materials costs.
City Utilities estimates that for its
FY2022 project the total cost of the
products proposed to be waived equals
approximately $72,000, divided across
five types of products. NIST MEP
identified several companies who have
the capability to manufacture 1A meter
swivels, nuts, and washers, yet declined
to do so after engagement with City
Utilities on the grounds that it would be
cost prohibitive to manufacture these
products at the relatively small scale
needed by City Utilities.
By contrast, the proposed waiver
would have a large impact on City
Utilities’ ability to successfully
complete its NGDISM project and
deliver meaningful safety benefits to
disadvantaged areas of Springfield, MO.
All of the products listed herein are
essential to the proper construction of a
natural gas distribution pipeline. If this
waiver is not approved, City Utilities’
project will not be completed
successfully. Additionally, City Utilities
estimates that its total materials costs for
the project will equal approximately
$800,000. The cost of the products
proposed to be waived therefore equates
to 9 percent of City Utilities’ total
materials costs, which is above the five
percent threshold applicable to DOT’s
Waiver of Buy America Requirements
for De Minimis Costs and Small Grants
(88 FR 55817).
Under OMB Memorandum M–24–02,
agencies are expected to assess
‘‘whether a significant portion of any
cost advantage of a foreign-sourced
product is the result of the use of
dumped steel, iron, or manufactured
products or the use of injuriously
subsidized steel, iron, or manufactured
products’’ as appropriate before granting
a public interest waiver. PHMSA’s
analysis has concluded that this
assessment is not applicable to this
waiver, as it is being proposed on the
basis of nonavailability, rather than
public interest or unreasonable cost.
PHMSA will consider all comments
received in the initial 15-day comment
period during our consideration of the
VerDate Sep<11>2014
17:09 Sep 26, 2024
Jkt 262001
proposed waiver, as required by Section
70914(c)(2) of the IIJA. Comments
received after this period, but before
notice of our finding is published in the
Federal Register, will be considered to
the extent practicable.
Issued in Washington, DC, on September
23, 2024, under authority delegated in 49
CFR 1.97.
Tristan H. Brown,
Deputy Administrator.
[FR Doc. 2024–22118 Filed 9–26–24; 8:45 am]
BILLING CODE 4910–60–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
Agency Information Collection
Activities: Information Collection
Renewal; Submission for OMB Review;
Supervisory Guidance on Stress
Testing for Banking Organizations
With Total Consolidated Assets of
More Than $10 Billion
Office of the Comptroller of the
Currency (OCC), Treasury.
ACTION: Notice and request for comment.
AGENCY:
The OCC, as part of its
continuing effort to reduce paperwork
and respondent burden, invites
comment on a continuing information
collection, as required by the Paperwork
Reduction Act of 1995 (PRA). In
accordance with the requirements of the
PRA, the OCC may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number. The OCC is
soliciting comment concerning the
renewal of its information collection
titled, ‘‘Supervisory Guidance on Stress
Testing for Banking Organizations with
Total Consolidated Assets of More Than
$10 Billion.’’ The OCC also is giving
notice that it has sent the collection to
OMB for review.
DATES: Comments must be submitted on
or before October 28, 2024.
ADDRESSES: Commenters are encouraged
to submit comments by email, if
possible. You may submit comments by
any of the following methods:
• Email: prainfo@occ.treas.gov.
• Mail: Chief Counsel’s Office,
Attention: Comment Processing, Office
of the Comptroller of the Currency,
Attention: 1557–0312, 400 7th Street
SW, Suite 3E–218, Washington, DC
20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
SUMMARY:
PO 00000
Frm 00139
Fmt 4703
Sfmt 4703
• Fax: (571) 293–4835.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘1557–
0312’’ in your comment. In general, the
OCC will publish comments on
www.reginfo.gov without change,
including any business or personal
information provided, such as name and
address information, email addresses, or
phone numbers. Comments received,
including attachments and other
supporting materials, are part of the
public record and subject to public
disclosure. Do not include any
information in your comment or
supporting materials that you consider
confidential or inappropriate for public
disclosure.
Written comments and
recommendations for the proposed
information collection should also be
sent within 30 days of publication of
this notice to www.reginfo.gov/public/
do/PRAMain. You can find this
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
You may review comments and other
related materials that pertain to this
information collection following the
close of the 30-day comment period for
this notice by the method set forth in
the next bullet.
• Viewing Comments Electronically:
Go to www.reginfo.gov. Hover over the
‘‘Information Collection Review’’ tab
and click on ‘‘Information Collection
Review’’ from the drop-down menu.
From the ‘‘Currently under Review’’
drop-down menu, select ‘‘Department of
Treasury’’ and then click ‘‘submit.’’ This
information collection can be located by
searching by OMB control number
‘‘1557–0312’’ or ‘‘Supervisory Guidance
on Stress Testing for Banking
Organizations with Total Consolidated
Assets of More Than $10 Billion.’’ Upon
finding the appropriate information
collection, click on the related ‘‘ICR
Reference Number.’’ On the next screen,
select ‘‘View Supporting Statement and
Other Documents’’ and then click on the
link to any comment listed at the bottom
of the screen.
• For assistance in navigating
www.reginfo.gov, please contact the
Regulatory Information Service Center
at (202) 482–7340.
FOR FURTHER INFORMATION CONTACT:
Shaquita Merritt, Clearance Officer,
(202) 649–5490, Chief Counsel’s Office,
Office of the Comptroller of the
Currency, 400 7th Street SW,
Washington, DC 20219. If you are deaf,
hard of hearing, or have a speech
disability, please dial 7–1–1 to access
telecommunications relay services.
E:\FR\FM\27SEN1.SGM
27SEN1
]]>Agencies
[Federal Register Volume 89, Number 188 (Friday, September 27, 2024)]
[Notices]
[Pages 79362-79364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-22118]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
[Docket No. PHMSA-2024-0151]
Pipeline Safety: Proposed Project-Specific Waiver of the Build
America, Buy America Act Requirements for City Utilities of
Springfield, Missouri for Certain Products
AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
Department of Transportation (DOT).
ACTION: Notice; request for comments.
-----------------------------------------------------------------------
SUMMARY: The Pipeline and Hazardous Materials Safety Administration
(PHMSA) proposes to waive the Build America, Buy America (BABA) Act's
domestic preference requirements for certain products that City
Utilities of Springfield (City Utilities) will use in its Natural Gas
Distribution Infrastructure Safety and Modernization (NGDISM) grant
project. The proposed waiver would exempt the following products used
in City Utilities' project from BABA requirements on the basis of
nonavailability: locator markers; meter stops with insulated unions;
magnesium anodes; 1A meter swivels, nuts, and washers; and direct bury
lugs. In accordance with section 70914(c) of BABA, PHMSA is seeking
public comments on the proposed waiver.
DATES: Comments must be received by October 15, 2024.
ADDRESSES: Please submit your comments to the Federal eRulemaking
Portal at https://www.regulations.gov, Docket No. PHMSA-2024-0151, and
follow the online instructions for submitting comments.
Instructions: You must include the agency name and docket number at
the beginning of your comments. Except as described below under the
heading ``Confidential Business Information,'' all submissions
received, including any personal information provided, will be posted
without change or alteration to https://www.regulations.gov. For more
information, you may review the U.S. Department of Transportation's
complete Privacy Act Statement published in the Federal Register on
April 11, 2000, (65 FR 19477).
FOR FURTHER INFORMATION CONTACT: For questions about this notice,
please contact Mr. Brandon Hollingshead, PHMSA Office of the Chief
Counsel, 202-366-4400, or via email at [email protected].
Office hours for PHMSA are from 8:30 a.m. to 5 p.m., E.T., Monday
through Friday, except Federal holidays.
SUPPLEMENTARY INFORMATION:
Electronic Access and Filing
A copy of this Notice, all comments received on this Notice, and
all background material may be viewed online at https://www.regulations.gov using the docket number listed above. Electronic
retrieval help and guidelines are also available at https://www.regulations.gov. An electronic copy of this document also may be
downloaded from the Office of the Federal Register's website at:
www.FederalRegister.gov and the Government Publishing Office's website
at: www.GovInfo.gov.
Confidential Business Information
Confidential Business Information (CBI) is commercial or financial
information that is both customarily and actually treated as private by
its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552),
CBI is exempt from public disclosure. If your comments responsive to
this notice contain commercial or financial information that is
customarily treated as private, that you actually treat as private, and
that is relevant or responsive to this notice, it is important that you
clearly designate the submitted comments as CBI. You may ask PHMSA to
give confidential treatment to information you give to the agency by
taking the following steps: (1) mark each page of the original document
submission containing CBI as
[[Page 79363]]
``Confidential''; (2) send PHMSA, along with the original document, a
second copy of the original document with the CBI deleted; and (3)
explain why the information you are submitting is CBI. Unless you are
notified otherwise, PHMSA will treat such marked submissions as
confidential under the FOIA, and they will not be placed in the public
docket of this Notice. Submissions containing CBI should be sent to:
Mr. Brandon Hollingshead, PHMSA, 1200 New Jersey Avenue SE, E26-316,
Washington, DC 20590. Any comment submissions that PHMSA receives that
are not specifically designated as CBI will be placed in the public
docket for this matter.
Background and Justification for Waiver
The NGDISM program was authorized by the Infrastructure Investment
and Jobs Act (IIJA) (Pub. L. 117-58). The program provides Federal
funding to municipal- or community-owned natural gas utilities (not
including for-profit entities) to repair, rehabilitate, or replace
their natural gas distribution pipeline systems or portions thereof, or
to acquire equipment to (1) reduce incidents and fatalities and (2)
avoid economic losses. The IIJA appropriates $200 million per year for
each of Fiscal Years (FY) 2022 through 2026 for the NGDISM program ($1
billion in total). The IIJA provides that 2 percent of this amount
shall be used to pay the administrative expenses of the NGDISM program.
Accordingly, the total amount expected to be awarded as grant funding
over the five-year period is $980,000,000. In FY2022, PHMSA awarded
approximately $196 million to 37 municipal- and community-owned natural
gas utilities across the nation to fund pipeline replacement projects
and the purchase of leak-detection equipment.
Congress also enacted the Build America, Buy America Act (BABA),
providing that ``none of the funds made available for a Federal
financial assistance program for infrastructure . . . may be obligated
for a project unless all of the iron, steel, manufactured products, and
construction materials used in the project are produced in the United
States.'' IIJA, Public Law 117-58, section 70914(a). Under IIJA section
70914(b), PHMSA has authority to waive the requirements of BABA (1) if
a domestic product is unavailable, (2) if using a domestic product
would present an unreasonable cost, or (3) if application of BABA would
not be in the public interest.
In FY2022, City Utilities was awarded $10 million in NGDISM grant
funding to help fund its ``Legacy Plastic Pipe Replacement Project,''
which it initiated in 2010. City Utilities operates approximately 500
miles of ``Aldyl A'' plastic distribution pipeline within disadvantaged
areas of Springfield, Missouri. Aldyl A is a type of plastic commonly
used in gas pipelines in the 1960s and 1970s. Aldyl A has since been
found to be susceptible to premature brittle-like failures when
subjected to stress intensification, presenting a high risk of leakage
and associated safety hazards. Additionally, the Aldyl A pipe operated
by City Utilities lacks continuous tracer wire, which is used to locate
underground pipelines prior to excavation to avoid damaging the
pipelines in the course of excavation. The $10 million awarded would
allow City Utilities to speed up its Legacy Plastic Pipe Replacement
Project by funding the replacement of approximately 13.7 miles of
legacy Aldyl A pipe and approximately 1,409 legacy plastic gas services
with modern, industry-standard polyethylene pipe. City Utilities will
also use the grant funds to install a locator system on the new
pipeline, allowing the pipe to be located during subsequent excavations
near the pipeline, thereby ensuring the pipe is not damaged.
On December 13, 2023, City Utilities issued an Invitation for Bids
(IFB) seeking, among other products, locator markers; meter stops with
insulated union; magnesium anodes; 1A meter swivels, nuts, and washers;
and direct bury lugs. A more detailed description of each of these
products is provided below:
Locator Markers: Locator markers are small devices placed
on buried pipe and valves designed to help operators locate the
infrastructure before excavation to help prevent damage to the pipe
from excavation equipment. (NAICS: 325211)
Meter Stops with Insulated Union: Meter Stops are valves
that are installed above a natural gas riser upstream of the meter to
serve as a shut-off valve to control the flow of gas into the meter and
subsequently into the building's gas system. They are crucial for
maintenance, emergencies, or when the gas service needs to be shut off.
Insulated Unions are fittings attached to the above ground portion of a
natural gas utility riser in order to electrically insulate (i.e.,
isolate) a structure from the pipeline system to prevent corrosion.
(NAICS: 332919)
Magnesium Anodes: Magnesium anodes are blocks of magnesium
that are attached to steel pipe in order to protect against corrosion
damage. (NAICS: 335999)
1A Meter Swivels, Nuts, and Washers: Meter swivels, nuts,
and washers are fasteners used to secure a gas meter assembly. (NAICS:
33251/332722)
Direct Bury Lugs: Direct Bury Lugs are waterproof
connectors used for splicing low-voltage wires, like those used in
tracer wire, without cutting the main line wire. They simplify
installation and increase the longevity of the connection with pre-
filled silicone sealant for waterproofing. (NAICS: 332999)
The IFB remained open for more than a month, between December 13,
2023, and January 15, 2024. In response to the IFB, City Utilities
received seven responsive bids. However, each of the respondents to the
IFB represented that they would not be able to certify compliance with
BABA requirements for the above listed products.
Additionally, prior to City Utilities requesting this waiver, PHMSA
independently engaged the supplier scouting services of the National
Institute of Standards and Technology Manufacturing Extension
Partnership (NIST MEP) to search for domestic manufacturers of 1A meter
swivels, nuts, and washers. At the conclusion of the process, NIST MEP
identified several companies who stated they had the capability to
manufacture these products. However, these companies declined to do so
because it would be cost prohibitive for them to begin domestic
manufacture of these products in the quantities that City Utilities
needs to purchase for its NGDISM project. Accordingly, supplier
scouting did not result in identification of any sources that could or
would manufacture these products domestically.
On these bases, PHMSA has determined that locator markers, meter
stops with insulated unions, magnesium anodes, 1A meter swivels, nuts,
and washers, and direct bury lugs are not manufactured in the United
States in sufficient and reasonably available quantities or of a
satisfactory quality.
Proposed Waiver and Request for Comments
PHMSA proposes to waive the requirements of BABA for the above
listed products for City Utilities' Legacy Plastic Pipe Replacement
Project funded by NGDISM grant funds. The waiver would be applicable
only to City Utilities' project; it would not be applicable to any
other NGDISM grant recipient's projects. The proposed waiver would be
effective from the effective date of the final waiver through
[[Page 79364]]
the period of performance and closeout of PHMSA financial assistance
for the project, estimated to be February 21, 2028. If the sources of
Federal financial assistance applied to the project are changed, PHMSA
will consider whether the waiver continues to be warranted, taking into
account the project's development status at that time and any changes
in market conditions for the products subject to the waiver.
Although City Utilities was awarded $10 million in NGDISM grant
funding in FY2022, the majority of funding in NGDISM projects typically
goes towards labor costs rather than materials costs. City Utilities
estimates that for its FY2022 project the total cost of the products
proposed to be waived equals approximately $72,000, divided across five
types of products. NIST MEP identified several companies who have the
capability to manufacture 1A meter swivels, nuts, and washers, yet
declined to do so after engagement with City Utilities on the grounds
that it would be cost prohibitive to manufacture these products at the
relatively small scale needed by City Utilities.
By contrast, the proposed waiver would have a large impact on City
Utilities' ability to successfully complete its NGDISM project and
deliver meaningful safety benefits to disadvantaged areas of
Springfield, MO. All of the products listed herein are essential to the
proper construction of a natural gas distribution pipeline. If this
waiver is not approved, City Utilities' project will not be completed
successfully. Additionally, City Utilities estimates that its total
materials costs for the project will equal approximately $800,000. The
cost of the products proposed to be waived therefore equates to 9
percent of City Utilities' total materials costs, which is above the
five percent threshold applicable to DOT's Waiver of Buy America
Requirements for De Minimis Costs and Small Grants (88 FR 55817).
Under OMB Memorandum M-24-02, agencies are expected to assess
``whether a significant portion of any cost advantage of a foreign-
sourced product is the result of the use of dumped steel, iron, or
manufactured products or the use of injuriously subsidized steel, iron,
or manufactured products'' as appropriate before granting a public
interest waiver. PHMSA's analysis has concluded that this assessment is
not applicable to this waiver, as it is being proposed on the basis of
nonavailability, rather than public interest or unreasonable cost.
PHMSA will consider all comments received in the initial 15-day
comment period during our consideration of the proposed waiver, as
required by Section 70914(c)(2) of the IIJA. Comments received after
this period, but before notice of our finding is published in the
Federal Register, will be considered to the extent practicable.
Issued in Washington, DC, on September 23, 2024, under authority
delegated in 49 CFR 1.97.
Tristan H. Brown,
Deputy Administrator.
[FR Doc. 2024-22118 Filed 9-26-24; 8:45 am]
BILLING CODE 4910-60-P
