[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 <a href="/cdn-cgi/l/email-protection#4228233b2f276c202e232927312e273b02262d366c252d34"><span class="__cf_email__" data-cfemail="95fff4ecf8f0bbf7f9f4fef0e6f9f0ecd5f1fae1bbf2fae3">[email protected]</span></a>.

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

[[Page 17567]]

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


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