[Federal Register Volume 77, Number 58 (Monday, March 26, 2012)]
[Notices]
[Pages 17566-17567]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7186]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2012-0006]
Notice of Proposed Buy America Waivers
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice of proposed Buy America waiver and request for comment.
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SUMMARY: The purpose of this notice is to solicit comment a request
from Allison Transmission, Inc. to renew a waiver for its hybrid
electric propulsion system, Energy Storage Unit subsystem H 49.40
EPSystem, until December 31, 2013 so they may complete their ongoing
process to secure a domestic supplier of Lithium Ion batteries. FTA
seeks public comment before deciding whether to grant Allison's
request.
DATES: Comments must be received by April 2, 2012. Late filed comments
will be considered to the extent practicable.
ADDRESSES: Please submit your comments by only one of the following
means, identifying your submissions by docket number FTA-2012-0006. All
electronic submissions must be made to the U.S. Government electronic
site at www.regulations.gov. Commenters should follow the instructions
below for mailed and hand delivered comments.
(1) Web site: www.regulations.gov. Follow the instructions for
submitting comments on the U.S. Government electronic docket site;
(2) Fax: (202) 493-2251;
(3) Mail: U.S. Department of Transportation, 1200 New Jersey Avenue
SE, Docket Operations, M-30, Room W12-140, Washington, DC 20590-0001.
(4) Hand Delivery: Room W12-140 on the first floor of the West
Building, 1200 New Jersey Avenue SE, Washington, DC 20590, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
Instructions: All submissions must make reference to the ``Federal
Transit Administration'' and include docket number FTA-2012-0006. Due
to security procedures in effect since October 2001, mail received
through the U.S. Postal Service may be subject to delays. Parties
making submissions responsive to this notice should consider using an
express mail firm to ensure the prompt filing of any submissions not
filed electronically or by hand. Note that all submissions received,
including any personal information therein, will be posted without
change or alteration to www.regulations.gov. For More information, you
may review DOT's complete Privacy Act Statement in the Federal Register
published on April 11, 2000 (65 FR 19477), or visit
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Jayme L. Blakesley at (202) 366-0304
or [email protected].
SUPPLEMENTARY INFORMATION: The purpose of this notice is to seek public
comment on whether the Federal Transit Administration (FTA) should
waive its Buy America requirements of 49 U.S.C. 5323(j), as implemented
at 49 CFR Part 661, until December 31, 2013, for an Energy Storage Unit
(ESU) manufactured by Allison Transmission, Inc. (Allison). The purpose
of the waiver is to allow Allison until December 2013 to complete its
ongoing process to secure and qualify a domestic supplier of Lithium
Ion batteries.
The ESU is one of five subsystems of Allison's hybrid-electric
propulsion system known as the H 40/50 EP System. The ESU supplies and
stores energy for the H 40/50 EP System during normal motor-generator
operation and during regenerative braking. The ESU is a packaged
subsystem comprised of proprietary batteries, a battery management
system, thermal management equipment and containment. It is
manufactured to Allison's specifications and is functionally critical
and specific to the H 40/50 EP System. The company currently procures
the ESU completely assembled from a supplier that cannot comply with
FTA's Buy America requirements.
With few exceptions, FTA's Buy America rules require that all
steel, iron and manufactured goods used in FTA-funded projects be
produced in the United States. One exception to Buy America is non-
availability--that in some instances certain steel, iron, and
manufactured goods are not produced in the United States in sufficient
and reasonably available quantities or are not of a satisfactory
quality. When this is the case, FTA may waive its Buy America
requirements and allow the use of foreign-produced goods in an FTA-
funded project.
On April 3, 2009, FTA granted a limited non-availability waiver to
Allison. The waiver allowed Allison to produce its ESU outside the
United States. While the waiver was in effect, FTA instructed Allison
to identify and qualify a domestic manufacturer capable of producing
ESUs for Allison's H 40/50 EP System. The waiver expired and, despite
its best efforts, Allison has not identified and qualified a U.S.
manufacturer.
Allison asked FTA to renew and extend the waiver until December 31,
2013, to allow it to complete the qualification process. According to
Allison, since the issuance of the 2009 waiver, Allison has utilized
competitive assessments, technical reviews, and independent market
studies with U.S. based Lithium Ion suppliers. The company compared its
current Nickel Metal Hydride (NiMH) batteries with Lithium Ion and
determined Lithium Ion was appropriate for transit bus applications. In
addition, Allison is changing from NiMH to Lithium Ion because no NiMH
supplier is producing within the U.S. to meet Allison's requirements
(design, reliability, quality, pricing, etc). Most domestic suppliers
who expressed interest in starting production of the ESU subsystem
quoted Lithium Ion technologies. Five companies have started or are
starting cell production in the United States. Five additional
companies are starting pack production in the Unites States.
After contacting and surveying a number of potential suppliers,
Allison has chosen a domestic supplier. The selection and approval of
this supplier
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and its product is subject to the guidelines and requirements of
Allison's structured product development and approval process known as
the Process of Concurrent Engineering (POCE). This process applies to
all products developed, manufactured and sold by Allison, including
components and/or subcomponents that are purchased by Allison and
provided as part of Allison's system or product that are delivered to
its customers. The POCE process consists of four activity areas of
focus with each having durations of approximately three months to one
year. Allison is currently in the Concept Validation (CV) phase,
evaluating/validating the possibility of utilizing a current U.S.
hybrid ESS supplier who is working with Allison through an ARRA grant
awarded in fiscal year 2009 (DOE Gran DE-EE00002025). Beyond the CV
phase, additional joint work has been planned for Design Validation,
OEM vehicle testing, and Production Validation phases that are needed
to assure an appropriate Start of Production launch.
FTA proposes to grant Allison a waiver through December 31, 2013.
Unlike other requests for non-availability waivers, the granting of
which would enable otherwise non-compliant materials to be utilized
until a U.S. producers comes forward, this waiver would allow Allison
to maintain its position in the market while continuing the process of
securing a domestic manufacturer for its ESU subsystems. Without a
waiver extension, Allison faces a potential loss of volume, market
share, and revenue, and a potential loss of U.S. Jobs. In addition,
Allison's bus manufacturing customers would be limited in their ability
to offer buses utilizing hybrid propulsion technology, without
furthering the goals of Buy America.
Before deciding whether to grant Allison's request, FTA seeks
comment from all interested parties. In the interest of transparency,
FTA has published copies of Allison's request to the docket. Interested
parties may access these materials by visiting the docket comments by
April 2, 2012. Late-filed comments will be considered to the extent
practicable.
Issued this 16th day of March 2012.
Dorval R. Carter, Jr.,
Chief Counsel.
[FR Doc. 2012-7186 Filed 3-23-12; 8:45 am]
BILLING CODE 4910-57-P