Pipeline Safety: Project-Specific Waiver of the Build America, Buy America Act Requirements for Certain Products Used by Philadelphia Gas Works Under the Natural Gas Distribution Infrastructure Safety and Modernization Grant Program, 7243-7244 [2025-01365]
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Federal Register / Vol. 90, No. 12 / Tuesday, January 21, 2025 / Notices
ddrumheller on DSK120RN23PROD with NOTICES1
the single provider could result in
noncompliance, loss of use of a basic
utility, and public exposure to safety
risks from failing equipment. In
addition, the limited selection could
force various operators to install risers
or regulators that are unfamiliar to their
technicians or not compatible with their
existing operating equipment. This
would increase the grantee’s costs by
requiring the purchase of new
associated compatible equipment and
additional training, and increase the risk
of operator error on new and unfamiliar
equipment.
One commenter noted concerns
regarding the domestic availability of
additional products (transition fittings,
electro-fusion tapping tees, lockwing
valves, magnesium anodes, service
adapters, curb valves, caps, couplings,
and stiffeners) and suggested increasing
the waiver duration from three to five
years. Additional materials may be
considered in future waivers.
The proposed waiver facilitated a
broad range of interest and input from
the public and other stakeholders, and
PHMSA greatly appreciates the robust
feedback from members of the public.
The comments are available on the
docket at https://www.regulations.gov,
Docket (PHMSA–2024–0131).
Summary of Changes in the Final
Waiver
PHMSA is making two changes from
the proposed waiver in response to the
information received during the public
comment period. First, PHMSA is
clarifying that all types of risers are
included in the waiver. This directly
addresses concerns regarding the
availability of BABA compliant gas
service risers. Secondly, PHMSA is
including gas service regulators in this
waiver. Based on responses to questions
that PHMSA posed regarding the
availability of sufficient quantities of
compliant gas service regulators,
PHMSA finds that the availability and
appropriate selection of gas service
regulators that are BABA compliant are
not available in timely and sufficient
quantities to meet NGDISM grantees’
operating conditions and project
schedule requirements. Therefore,
PHMSA has added gas service
regulators. The waiver for meters is
unchanged from the proposed waiver.
Public comments to the proposed
waiver supported including meters and
no changes for meters have been made
in the final waiver.
Final Waiver
Based on its review of the waiver
request, and in consideration of
comments received on the proposed
VerDate Sep<11>2014
19:56 Jan 18, 2025
Jkt 265001
waiver, PHMSA has determined that gas
service risers, gas meters, and gas
service regulators are not manufactured
in the United States in sufficient and
reasonably available quantities. PHMSA
is waiving BABA requirements for gas
service risers, gas meters, and gas
service regulators. The waiver will
apply to obligations made on or after the
effective date of the final waiver for
recipients of funding under the
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 and will expire after three years.
Issued in Washington, DC, under authority
delegated in 49 CFR 1.97.
Tristan H. Brown,
Deputy Administrator.
[FR Doc. 2025–01320 Filed 1–17–25; 8:45 am]
BILLING CODE 4910–60–P
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials
Safety Administration
[Docket No. PHMSA–2024–0152]
Pipeline Safety: Project-Specific
Waiver of the Build America, Buy
America Act Requirements for Certain
Products Used by Philadelphia Gas
Works Under the Natural Gas
Distribution Infrastructure Safety and
Modernization Grant 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 that Philadelphia Gas Works
(PGW) needs for its Natural Gas
Distribution Infrastructure Safety and
Modernization (NGDISM) grant project
due to lack of availability, unreasonable
cost, or public good. The waiver would
exempt the following products used in
PGW’s project from BABA requirements
on the basis of nonavailability: electrofusion tapping tees, anodeless risers,
transition fittings, lockwing valves,
magnesium anodes, service adapters,
curb valves, caps, couplings, and
stiffeners.
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
SUMMARY:
PO 00000
Frm 00173
Fmt 4703
Sfmt 4703
7243
Pipeline Safety, by phone at 832–208–
0132 or by email at Louis.Cardenas@
dot.gov.
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.
Across three fiscal years (FY2022,
FY2023, and FY2024) PGW has been
awarded $125 million in NGDISM grant
funding to help fund the replacement of
‘‘at-risk’’ natural gas cast iron pipe
within the city of Philadelphia as part
E:\FR\FM\21JAN1.SGM
21JAN1
7244
Federal Register / Vol. 90, No. 12 / Tuesday, January 21, 2025 / Notices
of its ‘‘Citywide Neighborhood Safety
and Modernization’’ project. Of the $125
million awarded for this project the
materials covered by the waiver only
represent an estimated 0.11% or
$140,201. The project, which will be
located entirely within Philadelphia’s
historically disadvantaged
neighborhoods, will replace
approximately 67 miles of aging cast
iron, ductile iron, and unprotected steel
pipelines with modern polyethylene
plastic pipe that is less susceptible to
breakage due to earth movement—the
biggest threat to PGW’s existing cast
iron pipelines, especially during the
winter months.
ddrumheller on DSK120RN23PROD with NOTICES1
Proposed Waiver and Request for
Comments
On September 27, 2024, PHMSA
published a Notice of Proposed ProjectSpecific Waiver of the BABA Act
Requirements for Certain Products Used
by Philadelphia Gas Works and Request
for Comment (89 FR 79360) for certain
products on the basis of nonavailability.
The specific essential products PGW
sought a waiver for are listed below:
• Electro-fusion tapping tees: Electrofusion tapping tees are rigid sections of
polyethylene pipe that are fused to the
top of an existing polyethylene pipeline.
They are used to provide a branch outlet
from a gas main to a service line.
(NAICS: 326122)
• Anodeless risers: Anodeless risers
are sections of pipe that provide a 90degree connection between
underground gas service lines and
aboveground meter assemblies. Risers
are typically made of steel but may also
include polyethylene components and
may include a protective sleeve over the
polyethylene components. Anodeless
risers are manufactured in a variety of
sizes and may be rigid or flexible.
(NAICS: 33296)
• Transition fittings: Transition
fittings are adapters that facilitate
below-grade transition from
polyethylene pipe to steel pipe before it
exits the ground. The steel section of the
fitting is epoxy-coated for corrosion
resistance. Transition fittings
incorporate both steel and polyethylene
components. (NAICS: 332919)
• Lockwing valves: Lockwing valves
are installed at the ‘‘head’’ of a service
line, upstream of a meter assembly, and
are used to stop or start the flow of gas.
They are lockable to resist tampering or
accidental opening of the valve. They
are typically made of brass. (NAICS:
332919)
• Magnesium anodes: Magnesium
anodes are blocks of magnesium that are
attached to steel pipe in order to protect
VerDate Sep<11>2014
19:56 Jan 18, 2025
Jkt 265001
against corrosion damage. (NAICS:
335999)
• Service adapters: Service adapters
are threaded fittings used on a meter set
assembly above ground. They are
typically made of steel and are used to
connect two pieces of steel pipe in a
meter assembly. (NAICS: 332919)
• Curb valves: Curb valves are shutoff valves installed in a readily
accessible outside location (such as in
the footway). They are used to control
the gas upstream of a gas meter, but
downstream of the main service tee in
the street. Curb valves can be made of
either polyethylene or steel. PGW
requires the use of polyethylene curb
valves in its system. Accordingly,
PHMSA proposes to waive BABA
requirements for polyethylene curb
valves. (NAICS: 326122)
• Caps: Caps are added to a pipeline
in order to close off sections of the
pipeline or to cap off dead-end lines.
Caps can be made of either polyethylene
or steel, depending on the material of
the pipe capped off. PGW is not able to
find a BABA-compliant source for steel
caps. Accordingly, PHMSA proposes to
waive BABA requirements for steel
caps. (NAICS: 332919)
• Couplings: Couplings can be used
to connect two sections of pipe made
from either polyethylene, steel, ductile
iron, or cast iron. PGW requires the use
of steel couplings on its distribution
system. Accordingly, PHMSA proposes
to waive BABA requirements for
couplings made of steel. (NAICS:
332919)
• Stiffeners: Stiffeners are inserted
into plastic pipe alongside couplings to
support the pipe, mitigate stress, and
provide a long-lasting seal. (NAICS:
326122)
To conduct market research, PGW
initially engaged with its normal
suppliers of gas distribution pipeline
parts. Eight of PGW’s normal suppliers
indicated that they could provide
BABA-compliant products but were not
willing to certify to BABA compliance.
One of PGW’s alternate suppliers
indicated it could provide BABAcompliant caps, couplings, and
stiffeners, albeit at an increased cost and
a long lead time, causing an estimated
36-week delay in PGW’s construction
schedule that is untenable for this
project. PGW also reached out to
neighboring gas utilities to inquire about
their sources but was likewise unable to
locate a domestic source.
On April 10, 2024, in an effort to
locate additional alternative suppliers,
PGW issued a Request for Quotation
(‘‘RFQ’’) titled ‘‘One Time Purchase of
BABA Compliant Alternatives.’’ The
RFQ was publicly posted to PGW’s
PO 00000
Frm 00174
Fmt 4703
Sfmt 9990
Procureware website, and was open
from April 10, 2024, until April 29,
2024. PGW invited 80 suppliers and
manufacturers to submit bids. As a
result of the RFQ, PGW identified
BABA-compliant alternatives for eight
products for which PGW was not
previously able to find domestic
sources. However, PGW still was not
able to find suitable or readily available
alternatives for the 10 products
proposed to be waived herein.
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 PGW project
specific NGDISM waiver was received
by October 15, 2024. The commenter
noted the potential need for the same
products and that the commentor ‘‘fully
support[s] the granting of this waiver to
Philadelphia Gas Works.’’
Summary of Changes in the Proposed
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 in the proposed waiver.
Final Waiver
Based on its review of the waiver
request, and in consideration of the
supportive comment received on the
proposed waiver, PHMSA is waiving the
requirements of BABA for the above
listed products for PGW’s ‘‘Citywide
Neighborhood Safety and
Modernization’’ project funded by
NGDISM grant funds. The waiver is
applicable only to PGW’s 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, under
authority delegated in 49 CFR 1.97.
Tristan H. Brown,
Deputy Administrator.
[FR Doc. 2025–01365 Filed 1–17–25; 8:45 am]
BILLING CODE 4910–60–P
E:\FR\FM\21JAN1.SGM
21JAN1
]]>Agencies
[Federal Register Volume 90, Number 12 (Tuesday, January 21, 2025)]
[Notices]
[Pages 7243-7244]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01365]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
[Docket No. PHMSA-2024-0152]
Pipeline Safety: Project-Specific Waiver of the Build America,
Buy America Act Requirements for Certain Products Used by Philadelphia
Gas Works Under the Natural Gas Distribution Infrastructure Safety and
Modernization Grant Program
AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
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 Philadelphia Gas
Works (PGW) needs for its Natural Gas Distribution Infrastructure
Safety and Modernization (NGDISM) grant project due to lack of
availability, unreasonable cost, or public good. The waiver would
exempt the following products used in PGW's project from BABA
requirements on the basis of nonavailability: electro-fusion tapping
tees, anodeless risers, transition fittings, lockwing valves, magnesium
anodes, service adapters, curb valves, caps, couplings, and stiffeners.
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.
Across three fiscal years (FY2022, FY2023, and FY2024) PGW has been
awarded $125 million in NGDISM grant funding to help fund the
replacement of ``at-risk'' natural gas cast iron pipe within the city
of Philadelphia as part
[[Page 7244]]
of its ``Citywide Neighborhood Safety and Modernization'' project. Of
the $125 million awarded for this project the materials covered by the
waiver only represent an estimated 0.11% or $140,201. The project,
which will be located entirely within Philadelphia's historically
disadvantaged neighborhoods, will replace approximately 67 miles of
aging cast iron, ductile iron, and unprotected steel pipelines with
modern polyethylene plastic pipe that is less susceptible to breakage
due to earth movement--the biggest threat to PGW's existing cast iron
pipelines, especially during the winter months.
Proposed Waiver and Request for Comments
On September 27, 2024, PHMSA published a Notice of Proposed
Project-Specific Waiver of the BABA Act Requirements for Certain
Products Used by Philadelphia Gas Works and Request for Comment (89 FR
79360) for certain products on the basis of nonavailability. The
specific essential products PGW sought a waiver for are listed below:
Electro-fusion tapping tees: Electro-fusion tapping tees
are rigid sections of polyethylene pipe that are fused to the top of an
existing polyethylene pipeline. They are used to provide a branch
outlet from a gas main to a service line. (NAICS: 326122)
Anodeless risers: Anodeless risers are sections of pipe
that provide a 90-degree connection between underground gas service
lines and aboveground meter assemblies. Risers are typically made of
steel but may also include polyethylene components and may include a
protective sleeve over the polyethylene components. Anodeless risers
are manufactured in a variety of sizes and may be rigid or flexible.
(NAICS: 33296)
Transition fittings: Transition fittings are adapters that
facilitate below-grade transition from polyethylene pipe to steel pipe
before it exits the ground. The steel section of the fitting is epoxy-
coated for corrosion resistance. Transition fittings incorporate both
steel and polyethylene components. (NAICS: 332919)
Lockwing valves: Lockwing valves are installed at the
``head'' of a service line, upstream of a meter assembly, and are used
to stop or start the flow of gas. They are lockable to resist tampering
or accidental opening of the valve. They are typically made of brass.
(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)
Service adapters: Service adapters are threaded fittings
used on a meter set assembly above ground. They are typically made of
steel and are used to connect two pieces of steel pipe in a meter
assembly. (NAICS: 332919)
Curb valves: Curb valves are shut-off valves installed in
a readily accessible outside location (such as in the footway). They
are used to control the gas upstream of a gas meter, but downstream of
the main service tee in the street. Curb valves can be made of either
polyethylene or steel. PGW requires the use of polyethylene curb valves
in its system. Accordingly, PHMSA proposes to waive BABA requirements
for polyethylene curb valves. (NAICS: 326122)
Caps: Caps are added to a pipeline in order to close off
sections of the pipeline or to cap off dead-end lines. Caps can be made
of either polyethylene or steel, depending on the material of the pipe
capped off. PGW is not able to find a BABA-compliant source for steel
caps. Accordingly, PHMSA proposes to waive BABA requirements for steel
caps. (NAICS: 332919)
Couplings: Couplings can be used to connect two sections
of pipe made from either polyethylene, steel, ductile iron, or cast
iron. PGW requires the use of steel couplings on its distribution
system. Accordingly, PHMSA proposes to waive BABA requirements for
couplings made of steel. (NAICS: 332919)
Stiffeners: Stiffeners are inserted into plastic pipe
alongside couplings to support the pipe, mitigate stress, and provide a
long-lasting seal. (NAICS: 326122)
To conduct market research, PGW initially engaged with its normal
suppliers of gas distribution pipeline parts. Eight of PGW's normal
suppliers indicated that they could provide BABA-compliant products but
were not willing to certify to BABA compliance. One of PGW's alternate
suppliers indicated it could provide BABA-compliant caps, couplings,
and stiffeners, albeit at an increased cost and a long lead time,
causing an estimated 36-week delay in PGW's construction schedule that
is untenable for this project. PGW also reached out to neighboring gas
utilities to inquire about their sources but was likewise unable to
locate a domestic source.
On April 10, 2024, in an effort to locate additional alternative
suppliers, PGW issued a Request for Quotation (``RFQ'') titled ``One
Time Purchase of BABA Compliant Alternatives.'' The RFQ was publicly
posted to PGW's Procureware website, and was open from April 10, 2024,
until April 29, 2024. PGW invited 80 suppliers and manufacturers to
submit bids. As a result of the RFQ, PGW identified BABA-compliant
alternatives for eight products for which PGW was not previously able
to find domestic sources. However, PGW still was not able to find
suitable or readily available alternatives for the 10 products proposed
to be waived herein.
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 PGW project specific NGDISM waiver was received
by October 15, 2024. The commenter noted the potential need for the
same products and that the commentor ``fully support[s] the granting of
this waiver to Philadelphia Gas Works.''
Summary of Changes in the Proposed 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 in the proposed waiver.
Final Waiver
Based on its review of the waiver request, and in consideration of
the supportive comment received on the proposed waiver, PHMSA is
waiving the requirements of BABA for the above listed products for
PGW's ``Citywide Neighborhood Safety and Modernization'' project funded
by NGDISM grant funds. The waiver is applicable only to PGW's 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, under authority delegated in 49 CFR 1.97.
Tristan H. Brown,
Deputy Administrator.
[FR Doc. 2025-01365 Filed 1-17-25; 8:45 am]
BILLING CODE 4910-60-P
