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[Federal Register Volume 77, Number 67 (Friday, April 6, 2012)]
[Notices]
[Pages 20806-20807]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-8329]

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DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

Nationwide Categorical Waivers Under the American Recovery and 
Reinvestment Act of 2009 (Recovery Act)

AGENCY: Office of Energy Efficiency and Renewable Energy, U.S. 
Department of Energy (DOE).

ACTION: Notice of Limited Waivers.

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SUMMARY: The U.S. Department of Energy (DOE) is hereby granting a 
nationwide limited waiver of the Buy American requirements of section 
1605 of the Recovery Act under the authority of Section 1605(b)(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), with respect to Recovery Act projects 
funded by EERE for pre-insulated district heating pipe system 
consisting of thin wall thickness steel pipe meeting the EN13941 
standard, bonded to polyurethane foam insulation, bonded to an HDPE 
jacket, such that all the components operate as a single pipe 
(including two 1.5 mm squared area copper wires embedded in the 
insulation for leak detection and location); pre-insulated steel 
fittings with the same characteristics as the pre-insulated pipe; and 
pre-insulated maintenance free ball valves with an all welded valve 
body and a stainless steel valve ball in a spring loaded teflon seat, 
having the same insulation and jacket characteristics as the pipe.

DATES: Effective Date: 03/27/2012.

FOR FURTHER INFORMATION CONTACT: Christine Platt-Patrick, Office of 
Energy Efficiency and Renewable Energy (EERE), (202) 287-1553, 
Department of Energy, 1000 Independence Avenue SW., Mailstop EE-2K, 
Washington, DC 20585.

SUPPLEMENTARY INFORMATION: Under the authority of American Recovery and 
Reinvestment Act of 2009 (Recovery Act), Public Law 111-5, section 
1605(b)(2), the head of a Federal department or agency may issue a 
``determination of inapplicability'' (a waiver of the Buy American 
provision) if the iron, steel, or relevant manufactured good is not 
produced or manufactured in the United States in sufficient and 
reasonably available quantities and of a satisfactory quality 
(``nonavailability''). The authority of the Secretary of Energy to make 
all inapplicability determinations was re-delegated to the Assistant 
Secretary for Energy Efficiency and Renewable Energy (EERE), for EERE 
projects under the Recovery Act, in Redelegation Order No. 00-002.01E, 
dated April 25, 2011. Pursuant to this delegation the Acting Assistant 
Secretary, EERE, has concluded that: Pre-insulated district heating 
pipe system consisting of thin wall thickness steel pipe meeting the 
EN13941 standard, bonded to polyurethane foam insulation, bonded to an 
HDPE jacket, such that all the components operate as a single pipe 
(including two 1.5 mm squared area copper wires embedded in the 
insulation for leak detection and location); pre-insulated steel 
fittings with the same characteristics as the pre-insulated pipe; and 
pre-insulated maintenance free ball valves with an all welded valve 
body and a stainless steel valve ball in a spring loaded teflon seat, 
having the same insulation and jacket characteristics as the pipe, is 
not produced or manufactured in the United States in sufficient and 
reasonably available quantities and of a satisfactory quality. The 
above item, when used on eligible EERE Recovery Act-funded projects, 
qualifies for the ``nonavailability'' waiver determination.
    EERE has developed a robust process to ascertain in a systematic 
and expedient manner whether or not there is domestic manufacturing 
capacity for the items submitted for a waiver of the Recovery Act Buy 
American provision. This process involves a close collaboration with 
the United States Department of Commerce National Institute of 
Standards and Technology (NIST) Manufacturing Extension Partnership 
(MEP), in order to scour the domestic manufacturing landscape in search 
of producers before making any nonavailability determinations.
    The MEP has 59 regional centers with substantial knowledge of, and 
connections to, the domestic manufacturing sector. MEP uses their 
regional centers to `scout' for current or potential manufacturers of 
the product(s) submitted in a waiver request. In the course of this 
interagency collaboration, MEP has been able to find exact or partial 
matches for manufactured goods that EERE grantees had been unable to 
locate. As a result,

[[Page 20807]]

in those cases, EERE was able to work with the grantees to procure 
American-made products rather than granting a waiver.
    Upon receipt of completed waiver requests for the product in this 
current waiver, EERE reviewed the information provided and submitted 
the relevant technical information to the MEP. The MEP then used their 
network of nationwide centers to scout for domestic manufacturers. The 
MEP reported that their scouting process did not locate any domestic 
manufacturers for these exact or equivalent items.
    In addition to the MEP collaboration outlined above, the EERE Buy 
American Coordinator worked with other manufacturing stakeholders to 
scout for domestic manufacturing capacity or an equivalent product for 
each item contained in this waiver. EERE also conducted significant 
amounts of independent research to supplement MEP's scouting efforts, 
including utilizing the solar experts employed by the Department of 
Energy's National Renewable Energy Laboratory. EERE's research efforts 
confirmed the MEP findings that the good included in this waiver is not 
produced in the United States in sufficient and reasonably available 
quantities and of a satisfactory quality.
    The nonavailability determination is also informed by the inquiries 
and petitions to EERE from recipients of EERE Recovery Act funds, and 
from suppliers, distributors, retailers and trade associations--all 
stating that their individual efforts to locate domestic manufacturers 
for the item have been unsuccessful.
    Specific technical information for the manufactured goods included 
in this non-availability determination is detailed below:
    Pre-insulated district heating pipe system consisting of thin wall 
thickness steel pipe meeting the EN13941 standard, bonded to 
polyurethane foam insulation, bonded to an HDPE jacket, such that all 
the components operate as a single pipe (including two 1.5 mm squared 
area copper wires embedded in the insulation for leak detection and 
location); pre-insulated steel fittings with the same characteristics 
as the pre-insulated pipe; and pre-insulated maintenance free ball 
valves with an all welded valve body and a stainless steel valve ball 
in a spring loaded teflon seat, having the same insulation and jacket 
characteristics as the pipe.
    Pre-insulated hot water district energy piping manufactured as a 
system to meet quality standards (EN Standards, ISO 9001, and ISO 
14001) that test all aspects of the individual components (insulation 
cell structure/water absorption/compression resistance) plus ensure 
compliance of the finished system to five rigorous tests: axial and 
tangential shear strength, aged shear strength, creep and impact 
resistance. This degree of diligence is not imposed on thermal 
distribution piping manufactured as individual parts, and as a result 
products produced as a system to meet the above referenced standards 
better predict overall long term behavior of the system under sustained 
high temperature, resulting in lower life cycle cost and greater system 
efficiency. Because there is not a US manufacturer who makes a complete 
system, the components (pre-insulated valves, fittings, bends, etc.) of 
a hot water district energy system, have not been tested together to 
ensure that the entire system behaves in the same manner.
    In light of the foregoing, and under the authority of section 
1605(b)(2) of Public Law 111-5 and Redelegation Order 00-002-01E, with 
respect to Recovery Act projects funded by EERE, I hereby issue a 
``determination of inapplicability'' (a waiver under the Recovery Act 
Buy American provision) for: Pre-insulated district heating pipe system 
consisting of thin wall thickness steel pipe meeting the EN13941 
standard, bonded to polyurethane foam insulation, bonded to an HDPE 
jacket, such that all the components operate as a single pipe 
(including two 1.5 mm squared area copper wires embedded in the 
insulation for leak detection and location); pre-insulated steel 
fittings with the same characteristics as the pre-insulated pipe; and 
pre-insulated maintenance free ball valves with an all welded valve 
body and a stainless steel valve ball in a spring loaded teflon seat, 
having the same insulation and jacket characteristics as the pipe.
    Having established a proper justification based on domestic 
nonavailability, EERE hereby provides notice that on March 27, 2012, 
one (1) nationwide categorical waiver of section 1605 of the Recovery 
Act were issued as detailed supra. This notice constitutes the detailed 
written justification required by Section 1605(c) for waivers based on 
a finding under subsection (b).
    This waiver determination is pursuant to the delegation of 
authority by the Secretary of Energy to the Assistant Secretary for 
Energy Efficiency and Renewable Energy with respect to expenditures 
within the purview of his responsibility. Consequently, this waiver 
applies to all EERE projects carried out under the Recovery Act.

    Authority: Pub. L. 111-5, section 1605.

    Issued in Washington, DC, on March 27, 2012.
Henry Kelly,
Acting Assistant Secretary, Energy Efficiency and Renewable Energy, 
U.S. Department of Energy.
[FR Doc. 2012-8329 Filed 4-5-12; 8:45 am]
BILLING CODE 6450-01-P
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