Pipeline Safety: Project-Specific Waiver of the Build America, Buy America Act Requirements for City Utilities of Springfield, Missouri for Certain Products Under the Natural Gas Distribution Infrastructure Safety and Modernization Grant Program, 7240-7241 [2025-01356]
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Federal Register / Vol. 90, No. 12 / Tuesday, January 21, 2025 / Notices
Background
funding to municipal- or communityowned 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 grant
program ($1 billion in total). The IIJA
provides that two percent of this
amount shall be used to pay the
administrative expenses of the NGDISM
grant program. Accordingly, the total
amount expected to be awarded as grant
funding over the five-year period is
$980,000,000.
Congress also enacted the BABA Act,
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, sec.
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. Of the $10 million awarded for
this project the materials covered by the
waiver only represent an estimated
0.72% or $72,000. City Utilities operates
approximately 500 miles of ‘‘Aldyl A’’
plastic distribution pipeline within
disadvantaged areas of Springfield,
Missouri. 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 future excavation
activities that may occur near the
pipeline, thereby preventing damage to
the pipeline and improving pipeline
safety.
The NGDISM grant program was
authorized by the Infrastructure
Investment and Jobs Act (IIJA) (Pub. L.
117–58). The program provides federal
Proposed Waiver and Request for
Comments
On September 27, 2024, PHMSA
published a Notice of Proposed Project-
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials
Safety Administration
[Docket No. PHMSA–2024–0151]
Pipeline Safety: Project-Specific
Waiver of the Build America, Buy
America Act Requirements for City
Utilities of Springfield, Missouri for
Certain Products Under the Natural
Gas Distribution Infrastructure Safety
and Modernization Grant Program
Pipeline and Hazardous
Materials Transportation, Department of
Transportation (DOT).
ACTION: Notice.
AGENCY:
The Pipeline and Hazardous
Materials Safety Administration
(PHMSA) is waiving the Build America,
Buy America (BABA) Act’s domestic
preference requirements for certain
products that City Utilities of
Springfield, Missouri, (City Utilities)
will use in its Natural Gas Distribution
Infrastructure Safety and Modernization
(NGDISM) grant project, due to
unavailability, project cost, or public
good. The 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.
DATES: The effective date of the waiver
is January 22, 2025.
FOR FURTHER INFORMATION CONTACT: For
questions about this notice, please
contact Mr. Louis Cardenas, Office of
Pipeline Safety, by phone at 832–208–
0132, or by email at Louis.Cardenas@
dot.gov.
SUMMARY:
SUPPLEMENTARY INFORMATION:
ddrumheller on DSK120RN23PROD with NOTICES1
Electronic Access and Filing
A copy of 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 or the
Government Publishing Office’s website
at www.GovInfo.gov.
VerDate Sep<11>2014
19:56 Jan 18, 2025
Jkt 265001
PO 00000
Frm 00170
Fmt 4703
Sfmt 4703
Specific Waiver of the Build America,
Buy America Act Requirements for City
Utilities of Springfield, Missouri for
Certain Products and Request for
Comment (89 FR 79362) for certain
products on the basis of nonavailability.
The specific essential products City
Utilities sought a waiver for are listed
below:
• Locator Markers: Locator markers
are small devices placed on buried pipe
and valves designed to help operators
locate the facilities to help prevent
damage to the pipe from excavation
equipment. (NAICS: 325211)
• Meter Stops with Insulated Union:
Meter Stops are valves that are installed
on 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 and 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 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 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)
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. 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
E:\FR\FM\21JAN1.SGM
21JAN1
Federal Register / Vol. 90, No. 12 / Tuesday, January 21, 2025 / Notices
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.
Discussion of Public Comments
PHMSA has reviewed the single
supportive comment 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. The public
comment regarding the City Utilities
project specific NGDISM waiver was
received by October 15, 2024. The
commenter noted its potential need for
the same products and they ‘‘fully
support the granting of this waiver to
City Utilities of Springfield, MO.’’
Summary of Changes in the Final
Waiver
There are no changes to the proposed
waiver. As there was a single public
comment in support of this waiver,
there are no public comments that
require changes to the proposed waiver.
ddrumheller on DSK120RN23PROD with NOTICES1
Final Waiver
Based on its review of the waiver
request, and in consideration of
supportive comment received on the
proposed waiver, PHMSA is waiving the
requirements of BABA for the above
listed products for City Utilities’
‘‘Legacy Plastic Pipe Replacement’’
project funded by NGDISM grant funds.
The waiver is applicable only to City
Utilities’ project; it is not applicable to
any other NGDISM grant recipient’s
projects. The waiver is effective from
the date of the final waiver through the
period of performance and closeout of
PHMSA’s financial assistance for the
project, which is estimated to be June
30, 2029.
VerDate Sep<11>2014
19:56 Jan 18, 2025
Jkt 265001
Issued in Washington, DC, on January 15,
2025, under authority delegated in 49 CFR
1.97.
Tristan H. Brown,
Deputy Administrator.
[FR Doc. 2025–01356 Filed 1–17–25; 8:45 am]
BILLING CODE 4910–60–P
Pipeline and Hazardous Materials
Safety Administration
[Docket No. PHMSA–2024–0131]
Pipeline Safety: Waiver of the Build
America, Buy America Act
Requirements for Gas Service Risers,
Gas Service Regulators, and Gas
Meters Under the Natural Gas
Distribution Infrastructure Safety and
Modernization Program
Pipeline and Hazardous
Materials Safety Administration
(PHMSA), Department of Transportation
(DOT).
ACTION: Notice.
AGENCY:
The Pipeline and Hazardous
Materials Safety Administration
(PHMSA) is waiving the Build America,
Buy America (BABA) Act’s domestic
preference requirements for certain
products widely used in natural gas
distribution systems on the basis of
nonavailability. The waiver will apply
to awards obligated on or after the
effective date of the final waiver for
recipients of funding under the Natural
Gas Distribution Infrastructure Safety
and Modernization (NGDISM) Grant
Program and, in the case of awards
obligated prior to the effective date, all
expenditures for covered products
incurred after the effective date. The
waiver will expire after three years after
the effective date of the final waiver.
DATES: The effective date of the waiver
is January 22, 2025. The waiver will
expire on January 21, 2028.
FOR FURTHER INFORMATION CONTACT: For
questions about this notice, please
contact Ms. Shakira Mack, Office of
Pipeline Safety, by phone at 202–366–
5090, or by email at Shakira.Mack@
dot.gov. Office hours for PHMSA are
from 8:30 a.m. to 5:00 p.m. EST,
Monday through Friday, except federal
holidays.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Electronic Access and Filing
A copy of this Notice and all
background material, along with
electronic retrieval help and guidelines,
may be viewed online at https://
www.regulations.gov using the docket
number listed above. An electronic copy
Frm 00171
Fmt 4703
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.
Background
DEPARTMENT OF TRANSPORTATION
PO 00000
7241
Sfmt 4703
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 two 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
approximately $980,000,000. In FY22,
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. In FY23,
PHMSA awarded $391 million to 65
applicants; and in FY24 PHMSA
awarded another $196 million to 56
applicants. This brings current overall
program totals to $784 million granted
to 158 applicants, where funds are
rehabilitating the natural gas system or
acquiring equipment to improve public
safety and reduce economic losses.
PHMSA expects that a very small
portion of NGDISM funding (less than
about $1.9 million) would be spent each
year on the products waived from BABA
requirements.
In the same legislation, Congress also
enacted the BABA Act, which provides
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.’’ See IIJA, Public Law 117–58,
sec. 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.
E:\FR\FM\21JAN1.SGM
21JAN1
]]>Agencies
[Federal Register Volume 90, Number 12 (Tuesday, January 21, 2025)]
[Notices]
[Pages 7240-7241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01356]
[[Page 7240]]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
[Docket No. PHMSA-2024-0151]
Pipeline Safety: Project-Specific Waiver of the Build America,
Buy America Act Requirements for City Utilities of Springfield,
Missouri for Certain Products Under the Natural Gas Distribution
Infrastructure Safety and Modernization Grant Program
AGENCY: Pipeline and Hazardous Materials Transportation, Department of
Transportation (DOT).
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Pipeline and Hazardous Materials Safety Administration
(PHMSA) is waiving the Build America, Buy America (BABA) Act's domestic
preference requirements for certain products that City Utilities of
Springfield, Missouri, (City Utilities) will use in its Natural Gas
Distribution Infrastructure Safety and Modernization (NGDISM) grant
project, due to unavailability, project cost, or public good. The
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.
DATES: The effective date of the waiver is January 22, 2025.
FOR FURTHER INFORMATION CONTACT: For questions about this notice,
please contact Mr. Louis Cardenas, Office of Pipeline Safety, by phone
at 832-208-0132, or by email at [email protected].
SUPPLEMENTARY INFORMATION:
Electronic Access and Filing
A copy of 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 or the Government Publishing Office's website
at www.GovInfo.gov.
Background
The NGDISM grant 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 grant
program ($1 billion in total). The IIJA provides that two percent of
this amount shall be used to pay the administrative expenses of the
NGDISM grant program. Accordingly, the total amount expected to be
awarded as grant funding over the five-year period is $980,000,000.
Congress also enacted the BABA Act, 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, sec. 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. Of the $10 million awarded for this project
the materials covered by the waiver only represent an estimated 0.72%
or $72,000. City Utilities operates approximately 500 miles of ``Aldyl
A'' plastic distribution pipeline within disadvantaged areas of
Springfield, Missouri. 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 future excavation activities that may
occur near the pipeline, thereby preventing damage to the pipeline and
improving pipeline safety.
Proposed Waiver and Request for Comments
On September 27, 2024, PHMSA published a Notice of Proposed
Project-Specific Waiver of the Build America, Buy America Act
Requirements for City Utilities of Springfield, Missouri for Certain
Products and Request for Comment (89 FR 79362) for certain products on
the basis of nonavailability. The specific essential products City
Utilities sought a waiver for are listed below:
Locator Markers: Locator markers are small devices placed
on buried pipe and valves designed to help operators locate the
facilities to help prevent damage to the pipe from excavation
equipment. (NAICS: 325211)
Meter Stops with Insulated Union: Meter Stops are valves
that are installed on 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 and 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 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 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)
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. 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
[[Page 7241]]
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.
Discussion of Public Comments
PHMSA has reviewed the single supportive comment 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. The public
comment regarding the City Utilities project specific NGDISM waiver was
received by October 15, 2024. The commenter noted its potential need
for the same products and they ``fully support the granting of this
waiver to City Utilities of Springfield, MO.''
Summary of Changes in the Final Waiver
There are no changes to the proposed waiver. As there was a single
public comment in support of this waiver, there are no public comments
that require changes to the proposed waiver.
Final Waiver
Based on its review of the waiver request, and in consideration of
supportive comment received on the proposed waiver, PHMSA is waiving
the requirements of BABA for the above listed products for City
Utilities' ``Legacy Plastic Pipe Replacement'' project funded by NGDISM
grant funds. The waiver is applicable only to City Utilities' project;
it is not applicable to any other NGDISM grant recipient's projects.
The waiver is effective from the date of the final waiver through the
period of performance and closeout of PHMSA's financial assistance for
the project, which is estimated to be June 30, 2029.
Issued in Washington, DC, on January 15, 2025, under authority
delegated in 49 CFR 1.97.
Tristan H. Brown,
Deputy Administrator.
[FR Doc. 2025-01356 Filed 1-17-25; 8:45 am]
BILLING CODE 4910-60-P
