U.S. Department 

of Transportation 

Federal Railroad 

Administration 

JUH 4 2015 

Mr. Gregory Taylor 

Administrator 

AlA, Supervising Architect I Project Manager 

City of Sacramento, Department of Public Works 

915 I Street 

Room2000 

Sacramento, CA 95814-2604 

Re: Request for Waiver of Buy America Requirement 

Dear Mr. Taylor: 

1200 New Jersey Avenue, SE 

Washington, DC 20590 

As you are aware, on November 24, 2014, the City of Sacramento, California, Department 

of Public Works (Sacramento) requested a waiver from the Federal Railroad 

Administration's (FRA) Buy America requirement (49 U.S.C. § 24405(a)) to purchase a 

variable refrigerant flow (VRF) heating, ventilation, and air conditioning (HV AC) system 

for use in the Sacramento Valley Station (SVS) Phase II intermodal project. 1 

The SVS Phase II intermodal project is the rehabilitation of the historic 68,000 square foot 

train station in downtown Sacramento, California. The $30 million project is partially 

funded with a $15 million 2012 Transportation Infrastructure Generating Economic 

Recovery (TIGER) grant. The U.S. Department of Transportation (DOT) selected each 

project for 2012 TIGER Grant funding based on whether it would, among other things, 

promote a more environmentally sustainable transportation system. 77 FR 4863, 4867 

(January 31, 2012). After rehabilitation, the SVS will include Amtrak station facilities, 

commercial retail and office space. 

FRA is granting Sacramento's waiver request. FRA concludes a waiver is appropriate 

under 49 U.S.C. § 24405(a)(2)(B) for the VRF system because domestically-produced 

HV AC systems meeting the specific needs of Sacramento for this application (i.e., energy 

efficiency and historic preservation) are not currently "produced in sufficient and 

reasonably available amount or are not of a satisfactory quality." 49 U.S.C. § 

24405(a)(2)(B). 

1 Sacramento also requested a waiver for Marmoleum flooring. However, FRA has chosen 

to bifurcate the waiver requests since the VRF waiver is more advanced in terms of 

processing and in urgent need by Sacramento. FRA is still deciding whether a waiver for 

the flooring is warranted. 
With respect to historic building preservation and energy efficiency, FRA concludes that 

the VRF system is the only choice for the rehabilitation of the SVS for the following 

reasons: 

• The VRF system has small distribution pipes instead of larger ductwork that would 

create problematic penetrations in the existing older structures. 

• The VRF system has smaller equipment in the conditioned allowable space. 

• The VRF system does not require heavy, large air handling units that would 

overburden an historic building's capacity. 

• The VRF system has zone-to-zone heat recovery and high efficiency heating and 

cooling. 

In addition to concluding that VRF is the only system meeting the project's needs, FRA 

also conducted due diligence with regard to determining the availability of domestic 

manufacturers of the VRF system. FRA concludes that no company manufactures VRF 

systems domestically. FRA bases this determination on the following facts: 

• In 2010, the U.S. Department of Energy (DOE) issued a blanket non-availability 

waiver for VRF HV AC systems procured with American Reinvestment and 

Recovery Act funding. See 75 FR 35447, June 22, 2010. 

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• In 2014, the Federal Transit Administration (FTA) granted two non-availability 

waivers for VRF systems. See St. Louis' MetroLink, 79 FR 34653, June 17, 2014, 

and San Bernardino Associated Governments, 79 FR 61129, October 9, 2014. FTA 

is currently reviewing another non-availability waiver for a VRF system. 

• On December 9, 2014, FRA provided public notice of this waiver request and a 15-

day opportunity for comment on its website. FRA also emailed notice to over 6,000 

persons who have signed up for Buy America notices through "GovDelivery." See 

http://www.fra.dot.gov/Page/P0719. FRA received one comment. The commenter 

supported granting the waiver and stated, "The efficiency of the VRF system cannot 

be matched by other types of conventional systems." 

• In February 2015, FTA engaged National Institute of Standards and Technology's 

Hollings Manufacturing Extension Partnership (NIST -MEP) to scout for Buy 

America-compliant VRF systems. NIST-MEP did not locate any domestic VRF 

systems. In fact, Carrier Corporation responded to NIST-MEP's scouting efforts, 

stating "VRF system is a new technology ... there are no current domestic 

manufacturers of VRF systems." 

Pursuant to 49 U.S.C. § 24405(a)(4), FRA will publish this letter granting Sacramento's 

request in the Federal Register and provide notice of such finding and an opportunity for 

public comment after which this waiver will become effective. 
Question about this letter can be directed to, John Johnson, Attorney-Advisor, at 

John.Johnson@dot.gov or (202) 493-0078. 

Sincerely, 

Sarah Feinberg 

Acting Administrator 

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