Notice2024-30448
Notice of Proposed Buy America Waiver for Battery Electric Minibuses and Request for Comment
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 20, 2024
Issuing agencies
Transportation DepartmentFederal Transit Administration
Abstract
The Federal Transit Administration (FTA) has received multiple requests for a Buy America waiver for battery electric minibuses based on the non-availability of Buy America-compliant vehicles. FTA is proposing a general non-availability waiver of limited duration for vehicles in this class that meet certain criteria. FTA seeks public and industry comment on whether FTA should grant the waiver or a modified version of the waiver.
Full Text
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<title>Federal Register, Volume 89 Issue 245 (Friday, December 20, 2024)</title>
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[Federal Register Volume 89, Number 245 (Friday, December 20, 2024)]
[Notices]
[Pages 104285-104286]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-30448]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2024-0018]
Notice of Proposed Buy America Waiver for Battery Electric
Minibuses and Request for Comment
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) has received multiple
requests for a Buy America waiver for battery electric minibuses based
on the non-availability of Buy America-compliant vehicles. FTA is
proposing a general non-availability waiver of limited duration for
vehicles in this class that meet certain criteria. FTA seeks public and
industry comment on whether FTA should grant the waiver or a modified
version of the waiver.
DATES: Comments must be received by January 6, 2025. Late-filed
comments will be considered only to the extent practicable.
ADDRESSES: Please submit all comments electronically to the Federal
eRulemaking Portal. Go to <a href="https://www.regulations.gov">https://www.regulations.gov</a> and follow the
instructions for submitting comments.
Instructions: All submissions must refer to the Federal Transit
Administration and the docket number of this notice. Note that all
submissions received, including any personal information provided, will
be posted without change and will be available to the public on <a href="https://www.regulations.gov">https://www.regulations.gov</a>. You may review DOT's complete Privacy Act
Statement in the Federal Register published April 11, 2000 (65 FR
19477), or at <a href="https://www.transportation.gov/privacy">https://www.transportation.gov/privacy</a>.
FOR FURTHER INFORMATION CONTACT: Jason Pollock, FTA Attorney-Advisor,
at (202) 923-6403 or <a href="/cdn-cgi/l/email-protection#96dcf7e5f9f8b8c6f9fafaf9f5fdd6f2f9e2b8f1f9e0"><span class="__cf_email__" data-cfemail="c882a9bba7a6e698a7a4a4a7aba388aca7bce6afa7be">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The purpose of this notice is to seek public
comment on whether FTA should grant a non-availability waiver for the
procurement of battery electric minibuses.
Background
Under FTA's Buy America statute, FTA may obligate funds for a
project to procure rolling stock only if the cost of components and
subcomponents produced in the United States is more than 70 percent of
the cost of all components of the rolling stock, and final assembly of
the rolling stock occurs in the United States. 49 U.S.C. 5323(j)(2)(C).
A manufacturer of rolling stock must submit to pre-award and post-
delivery audits and independent inspections to verify its compliance
with Buy America. 49 U.S.C. 5323(m).
FTA may waive Buy America for an item, among other reasons, if a
compliant version is not produced in a sufficient and reasonably
available amount or is not of a satisfactory quality. 49 U.S.C.
5323(j)(2)(B) (``non-availability waiver''). FTA cannot deny a request
for a non-availability waiver unless FTA can provide the waiver
applicant with a written certification that asserts the item is
produced in the United States in a sufficient and reasonably available
amount; the item produced in the United States is of a satisfactory
quality; and includes a list of known manufacturers in the United
States from which the item can be obtained. 49 U.S.C. 5323(j)(6).
In 2023, FTA received 3 applications on behalf of 16 transit
operators for non-availability waivers to purchase the Karsan e-Jest
battery electric minibus. The 3 applicants are the Heart of Iowa
Regional Transit Authority on behalf of 10 transit agencies in
California, Iowa, and Washington; the Greater Attleboro Taunton
Regional Transit Authority in Massachusetts on behalf of 5 transit
agencies in Massachusetts; and Alabama A&M University. Combined, the 3
applications seek a minimum order of
[[Page 104286]]
57 and a potential maximum order of 261 vehicles.
After reviewing available electric propulsion minibuses, FTA has
not identified a vehicle that meets all the requesters' specifications
and FTA's Buy America rolling stock standard. Because of the apparent
growing interest in vehicles of this type, as evidenced by these
requests and letters of support from over 150 transit agencies across
the country, and to foster competition and encourage on-shoring of
vehicle manufacturing to the United States, FTA is proposing a general
waiver available to any FTA funding recipient and not constrained to
any particular manufacturer's offering. The proposed waiver builds on
FTA's previous efforts through the Clean Bus Manufacturing Roundtable
to encourage the transition to zero emission vehicles by allowing
federal participation in the purchase of vehicles that provide public
transportation services in areas where full-sized zero emissions buses
are not used due to lower passenger counts. Further, the waiver builds
on FTA's efforts to encourage domestic manufacturing on-shoring by
having a limited duration and phase-in period to give manufacturers
sufficient time to establish domestic sourcing and manufacturing
capabilities that meet FTA's Buy America rolling stock standard in the
smaller bus (aka minibus) market.
Additionally, FTA consulted the National Institute of Standards and
Technology's Manufacturing Extension Partnership to conduct supplier
scouting for any battery electric minibus supplier capable of meeting
FTA's Buy America requirements and the requesters' specifications.
Supplier scouting identified no such suppliers.
Proposed Waiver
FTA proposes issuing a general non-availability waiver of FTA's Buy
America rolling stock requirements for any vehicle with all of the
following characteristics.
<bullet> The vehicle is powered by a battery electric propulsion
system.
<bullet> The vehicle has, or is capable of having, low-floor entry.
<bullet> The vehicle is of unibody or monocoque construction (i.e.,
not body-on-chassis).
<bullet> The vehicle has a gross vehicle weight rating or gross
vehicle weight of less than 11,794 kg (26,001 pounds) and is designed
to transport fewer than 16 seated passengers including the driver.\1\
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\1\ The number of passengers a vehicle is designed to transport
is based on the number of designated seats in the vehicle and does
not include areas suitable, or even designed for, standing
passengers. See 49 CFR 383.5 and Federal Motor Carrier Safety
Administration guidance: <a href="https://www.fmcsa.dot.gov/registration/commercial-drivers-license/one-definition-cmv-vehicle-designed-transport-16-or-more">https://www.fmcsa.dot.gov/registration/commercial-drivers-license/one-definition-cmv-vehicle-designed-transport-16-or-more</a>.
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<bullet> The vehicle is not required to report to the National
Highway Traffic Safety Administration under the American Automobile
Labelling Act. FTA previously issued a partial Buy America waiver for
vehicles subject to AALA reporting (Notice of Partial Buy America
Waiver for Vans and Minivans, 87 FR 64534 (Oct. 25, 2022)), and does
not intend to alter the terms of that current waiver by this proposed
action.
To encourage potential market entrants to build the requisite
domestic supply chains and establish a final assembly facility in the
United States, FTA proposes that the waiver would phase out over time.
For a contract for a vehicle meeting all the above requirements awarded
more than two years after the effective date of the waiver, this waiver
would only apply where vehicle final assembly occurs in the United
States. This waiver would expire three years after it is finalized, or
upon FTA's publication of a Federal Register notice rescinding the
waiver after determining that a fully Buy America-compliant vehicle has
become available, whichever occurs first.
Impacts of the Waiver
The availability of electric minibuses will contribute to the
reduction of greenhouse gas emissions and environmental justice.
Beginning with a 2022 Dear Colleague Letter on Cutaway Rebuild
Useful Life, FTA has acknowledged and made efforts to address supply
constraints and delivery delays of body-on-chassis vehicles experienced
by FTA recipients. One of the requesters for this proposed waiver
reported waiting times of 24-36 months to receive delivery of body-on-
chassis vehicles. This proposed waiver continues FTA's efforts to
relieve delays experienced by transit operators due to limited chassis
availability for transit vehicles by responding to recipients' requests
for vehicles of unibody or monocoque construction. The requesters'
specification for a unibody or monocoque construction and zero-emission
propulsion would make a new vehicle type available for FTA recipients
to provide zero-emission public transportation services on routes or in
operations that are most efficiently served by minibuses due to lower
passenger counts.
Request for Comment
This notice satisfies FTA's requirement to publish any proposed Buy
America waiver in the Federal Register and provide the public with a
reasonable period of time for notice and comment. 49 U.S.C. 5323(j)(3)
and section 70937(b)(1) of Public Law 117-58.
FTA seeks public and industry comment from all interested parties.
In particular, FTA seeks comment regarding whether the waiver should be
approved, and, if so, whether it should be modified from FTA's proposal
and why. Relevant information and comments will help FTA fully
establish the facts surrounding the waiver requests and FTA's proposal
and inform its ultimate decision on whether to grant the waiver.
Veronica Vanterpool,
Deputy Administrator.
[FR Doc. 2024-30448 Filed 12-19-24; 8:45 am]
BILLING CODE 4910-57-P
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