Notice2025-01365
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
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 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.
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 7243-7244]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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 <a href="/cdn-cgi/l/email-protection#367a59435f451875574452535857457652594218515940"><span class="__cf_email__" data-cfemail="8dc1e2f8e4fea3ceecffe9e8e3ecfecde9e2f9a3eae2fb">[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.
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:
<bullet> 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)
<bullet> 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)
<bullet> 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)
<bullet> 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)
<bullet> Magnesium anodes: Magnesium anodes are blocks of magnesium
that are attached to steel pipe in order to protect against corrosion
damage. (NAICS: 335999)
<bullet> 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)
<bullet> 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)
<bullet> 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)
<bullet> 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)
<bullet> 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
</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.