[Federal Register Volume 76, Number 4 (Thursday, January 6, 2011)]
[Notices]
[Pages 785-787]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-19]
=======================================================================
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
[FRL-9249-1]
Notice of Nationwide Waiver of Section 1605 (Buy American
Requirement) of the American Recovery and Reinvestment Act of 2009
(ARRA) for the Use of Small Horsepower Vertical Hollow Shaft Electric
Motors (Less Than 40 Horsepower) for Projects Financed Through the
Clean or Drinking Water State Revolving Funds Using Assistance Provided
Under ARRA
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The EPA is hereby granting a nationwide waiver of the Buy
American requirements of ARRA Section 1605 under the authority of
Section 1605(b)(2) [manufactured goods are not produced in the United
States in sufficient and reasonably available quantities and of a
satisfactory quality] for small-horsepower (HP) vertical hollow shaft
(VHS) electric motors (less than 40 HP). This nationwide waiver applies
to the use of the specified products and is applicable only for their
purchase and installation for one-year subsequent to the effective date
of the waiver. Based upon information gathered from multiple waiver
request submittals and further research by its contractor, EPA has
determined that
[[Page 786]]
domestically manufactured small-HP VHS electric motors (less than 40
HP) are not reasonably available. The Assistant Administrator for the
Office of Water is making this determination based on the review and
recommendations of the Office of Ground Water and Drinking Water and
the Office of Wastewater Management. The Assistant Administrator of the
Office of Administration and Resources Management has concurred on this
decision to make an exception to Section 1605 of ARRA. This action
permits the nationwide purchase and installation of non-domestic VHS
electric motors less than 40 HP up to one-year subsequent to the
effective date of the waiver. EPA reserves the right to withdraw or
amend this nationwide waiver based on new developments or changes in
the domestic manufacturing capacity for these items.
DATES: Effective Date: December 29, 2010.
FOR FURTHER INFORMATION CONTACT: Timothy Connor, Chemical Engineer,
(202) 566-1059, Office of Wastewater Management (OWM) or Kirsten
Kroner, Civil Engineer, (202) 564-3134, Office of Ground Water and
Drinking Water (OGWDW), U.S. Environmental Protection Agency, 1200
Pennsylvania Avenue, NW., Washington, DC 20460.
SUPPLEMENTARY INFORMATION: In accordance with ARRA Section 1605(c), the
EPA hereby provides notice that it is granting a nationwide waiver of
the requirements of Section 1605(a) of Public Law 111-5, Buy American
requirements, for the purchase and installation of non-domestic
vertical hollow shaft electric motors less than 40 horsepower for one-
year subsequent to the effective date for projects financed through the
Clean or Drinking Water State Revolving Funds (SRF) using assistance
provided under ARRA.
Section 1605 of the ARRA requires that none of the appropriated
funds may be used for the construction, alteration, maintenance, or
repair of a public building or a public works project unless all of the
iron, steel, and manufactured goods used in the project is produced in
the United States, or unless a waiver is provided to the assistance
recipient by the head of the appropriate agency, here the EPA. A waiver
may be provided if EPA determines that (1) applying these requirements
would be inconsistent with the public interest; (2) iron, steel, and
the relevant manufactured goods are not produced in the United States
in sufficient and reasonably available quantities and of a satisfactory
quality; or (3) inclusion of iron, steel, and the relevant manufactured
goods produced in the United States will increase the cost of the
overall project by more than 25 percent.
As part of the implementation of the Buy American requirements of
the ARRA, EPA reserved the right to issue national waivers that apply
to particular categories of manufactured goods. A national categorical
waiver may be developed based on the need to issue a waiver as
discerned by the number of project specific waiver requests for a
particular item that have been submitted by assistance recipients to
one or more EPA region(s), and the detailed justifications for such
requests. National waivers may be issued by EPA based on a
determination that a particular item is not produced domestically in
reasonably available quantities or of a sufficient quality. To date, no
nationwide waivers for a particular category of manufactured goods have
been issued by EPA.
During August through October 2010, seven applications have been
presented to five Regions (3, 5, 6, 7, and 10) requesting waivers for
small-horsepower vertical hollow shaft (VHS) electric motors. The
specific VHS electric motors included in the waiver requests range in
size from 15 HP to 30 HP. Detailed justifications provided by the
applicants (and verified by EPA and its contractor, as described below)
reveal that there are no VHS electric motors less than 40 HP that are
produced domestically in reasonably available quantities. As a result
of these waiver requests, EPA and its contractor reviewed current
technical knowledge regarding availability and location of
manufacturers of VHS electric motors less than 40 HP.
EPA found that currently, there are no known domestic manufacturers
of VHS electric motors less than 40 HP. Waiver applicants and EPA's
contractor identified and evaluated more than twenty electric motor
manufacturers in the search for domestic sources. The waiver applicants
and EPA's contractor conducted independent research and manufacturer
outreach in order to possibly identify a domestic manufacturer of small
VHS electric motors. EPA further contacted the Water and Wastewater
Equipment Manufacturers Association (WWEMA), a national association. At
least four foreign manufacturers produce and sell VHS electric motors
less than 40 HP. Much of the current manufacturing capability for the
VHS electric motor technology appears to be located in China with
additional manufacturing capability located in Mexico and Taiwan.
Currently, there are no known manufacturers planning and/or considering
offering VHS electric motors less than 40 HP that are/will be
manufactured in the U.S. The only VHS electric motor manufacturer with
manufacturing capability in the U.S., who does not manufacture nor
intend to manufacture VHS electric motors less than 40 horsepower,
estimates that a 1 year minimum timeframe would be required to set up
manufacturing capability in their domestic manufacturing facility for
small (i.e., less than 40 HP) VHS electric motors. Those companies
contacted with VHS electric motor manufacturing capability located
overseas estimate that it would require between 2 and 3 years to
construct and commission new production facilities in the U.S. to
manufacture VHS electric motors in sizes less than 40 HP. While EPA did
learn from the manufacturer's association that one-time, special-order
VHS motors may be available from a domestic source, EPA's research
revealed that current manufacturing capacity and availability do not
exist and special orders could cause delay and displace the ``shovel
ready'' status of projects.. Based on the time constraints and current
lack of manufacturing capacity, one-time special-order small VHS motors
do not meet the standard of being produced in the U.S. in sufficient
and reasonably available quantity.
It is critical to move forward with a national categorical waiver
for these products because there is clearly domestic unavailability,
and lack of a waiver is currently impeding the progress of several
Recovery Act projects funded by both the Clean Water and Drinking Water
State Revolving Funds. The April 28, 2009 EPA HQ Memorandum,
``Implementation of Buy American provisions of Public Law 111-5, the
`American Recovery and Reinvestment Act of 2009' '' (``Memorandum''),
defines reasonably available quantity as ``the quantity of iron, steel,
or relevant manufactured good is available or will be available at the
time needed and place needed, and in the proper form or specification
as specified in the project plans and design.''. To curtail the speed
with which construction is completed by requiring that assistance
recipients place one-time special orders or request individual waivers,
when it is known that domestic products are simply not reasonably
available, would directly conflict with a fundamental economic purpose
of ARRA, which is to create or retain jobs.
EPA has conducted a thorough review of the domestic manufacturing
practices for small-HP VHS electric motors and
[[Page 787]]
has determined that domestically manufactured goods are not currently
available. The information provided is sufficient to meet the following
criteria listed under Section 1605(b) of the ARRA and in the April 28,
2009 Memorandum: Iron, steel, and the manufactured goods are not
produced in the United States in sufficient and reasonably available
quantities and of a satisfactory quality. Therefore, EPA has determined
that a nationwide categorical waiver for this product is appropriate.
This waiver expires one year from the day it takes effect.
Furthermore, EPA reserves the right to withdraw or amend this
nationwide waiver based on new developments or changes in the domestic
manufacturing capacity for these items.
Authority: Pub. L. 111-5, section 1605.
Dated: December 29, 2010.
Michael H. Shapiro,
Acting Assistant Administrator for Water.
[FR Doc. 2011-19 Filed 1-5-11; 8:45 am]
BILLING CODE 6560-50-P