Notice2025-01356
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
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
January 21, 2025
Effective
January 22, 2025
Issuing agencies
Transportation DepartmentPipeline and Hazardous Materials Safety Administration
Abstract
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.
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 12 (Tuesday, January 21, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 12 (Tuesday, January 21, 2025)]
[Notices]
[Pages 7240-7241]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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 <a href="/cdn-cgi/l/email-protection#6b27041e021845280a190f0e050a182b0f041f450c041d"><span class="__cf_email__" data-cfemail="81cdeef4e8f2afc2e0f3e5e4efe0f2c1e5eef5afe6eef7">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Electronic Access and Filing
A copy of this notice and all background material may be viewed
online at <a href="https://www.regulations.gov">https://www.regulations.gov</a> using the docket number listed
above. Electronic retrieval help and guidelines are also available at
<a href="https://www.regulations.gov">https://www.regulations.gov</a>. An electronic copy of this document also
may be downloaded from the Office of the Federal Register's website at
<a href="http://www.FederalRegister.gov">www.FederalRegister.gov</a> or the Government Publishing Office's website
at <a href="http://www.GovInfo.gov">www.GovInfo.gov</a>.
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:
<bullet> 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)
<bullet> 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)
<bullet> Magnesium Anodes: Magnesium anodes are blocks of magnesium
that are attached to steel pipe to protect against corrosion damage.
(NAICS: 335999)
<bullet> 1A Meter Swivels, Nuts, and Washers: Meter swivels, nuts,
and washers are fasteners used to secure a gas meter assembly. (NAICS:
33251/332722)
<bullet> 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
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on January 21, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.