Federal Register / Vol. 90, No. 12 / Tuesday, January 21, 2025 / Notices 7241 

Manufacturing Extension Partnership 

(NIST MEP) to search for domestic 

manufacturers of 1A meter swivels, 

nuts, and washers. At the conclusion of 

the process, NIST MEP identified 

several companies who stated they had 

the capability to manufacture these 

products. However, these companies 

declined to do so because it would be 

cost prohibitive for them to begin 

domestic manufacture of these products 

in the quantities that City Utilities needs 

to purchase for its NGDISM project. 

Accordingly, supplier scouting did not 

result in identification of any sources 

that could or would manufacture these 

products domestically. 

On these bases, PHMSA has 

determined that locator markers; meter 

stops with insulated unions; magnesium 

anodes; 1A meter swivels, nuts, and 

washers; and direct bury lugs are not 

manufactured in the United States in 

sufficient and reasonably available 

quantities. 

Discussion of Public Comments 

PHMSA has reviewed the single 

supportive comment received in the 

initial 15-day comment period during 

our consideration of the proposed 

waiver, as required by Section 

70914(c)(2) of the IIJA. The public 

comment regarding the City Utilities 

project specific NGDISM waiver was 

received by October 15, 2024. The 

commenter noted its potential need for 

the same products and they ‘‘fully 

support the granting of this waiver to 

City Utilities of Springfield, MO.’’ 

Summary of Changes in the Final 

Waiver 

There are no changes to the proposed 

waiver. As there was a single public 

comment in support of this waiver, 

there are no public comments that 

require changes to the proposed waiver. 

Final Waiver 

Based on its review of the waiver 

request, and in consideration of 

supportive comment received on the 

proposed waiver, PHMSA is waiving the 

requirements of BABA for the above 

listed products for City Utilities’ 

‘‘Legacy Plastic Pipe Replacement’’ 

project funded by NGDISM grant funds. 

The waiver is applicable only to City 

Utilities’ project; it is not applicable to 

any other NGDISM grant recipient’s 

projects. The waiver is effective from 

the date of the final waiver through the 

period of performance and closeout of 

PHMSA’s financial assistance for the 

project, which is estimated to be June 

30, 2029. 

Issued in Washington, DC, on January 15, 

2025, under authority delegated in 49 CFR 

1.97. 

Tristan H. Brown, 

Deputy Administrator. 

[FR Doc. 2025–01356 Filed 1–17–25; 8:45 am] 

BILLING CODE 4910–60–P 

DEPARTMENT OF TRANSPORTATION 

Pipeline and Hazardous Materials 

Safety Administration 

[Docket No. PHMSA–2024–0131] 

Pipeline Safety: Waiver of the Build 

America, Buy America Act 

Requirements for Gas Service Risers, 

Gas Service Regulators, and Gas 

Meters Under the Natural Gas 

Distribution Infrastructure Safety and 

Modernization Program 

AGENCY: Pipeline and Hazardous 

Materials Safety Administration 

(PHMSA), Department of Transportation 

(DOT). 

ACTION: Notice. 

SUMMARY: The Pipeline and Hazardous 

Materials Safety Administration 

(PHMSA) is waiving the Build America, 

Buy America (BABA) Act’s domestic 

preference requirements for certain 

products widely used in natural gas 

distribution systems on the basis of 

nonavailability. The waiver will apply 

to awards obligated on or after the 

effective date of the final waiver for 

recipients of funding under the Natural 

Gas Distribution Infrastructure Safety 

and Modernization (NGDISM) Grant 

Program and, in the case of awards 

obligated prior to the effective date, all 

expenditures for covered products 

incurred after the effective date. The 

waiver will expire after three years after 

the effective date of the final waiver. 

DATES: The effective date of the waiver 

is January 22, 2025. The waiver will 

expire on January 21, 2028. 

FOR FURTHER INFORMATION CONTACT: For 

questions about this notice, please 

contact Ms. Shakira Mack, Office of 

Pipeline Safety, by phone at 202–366– 

5090, or by email at Shakira.Mack@

dot.gov. Office hours for PHMSA are 

from 8:30 a.m. to 5:00 p.m. EST, 

Monday through Friday, except federal 

holidays. 

SUPPLEMENTARY INFORMATION: 

Electronic Access and Filing 

A copy of this Notice and all 

background material, along with 

electronic retrieval help and guidelines, 

may be viewed online at https://

www.regulations.gov using the docket 

number listed above. An electronic copy 

of this document also may be 

downloaded from the Office of the 

Federal Register’s website at 

www.FederalRegister.gov and the 

Government Publishing Office’s website 

at www.GovInfo.gov. 

Background 

The NGDISM program was authorized 

by the Infrastructure Investment and 

Jobs Act (IIJA) (Pub. L. 117–58). The 

program provides federal funding to 

municipal- or community-owned 

natural gas utilities (not including forprofit entities) to repair, rehabilitate, or 

replace their natural gas distribution 

pipeline systems or portions thereof, or 

to acquire equipment to (1) reduce 

incidents and fatalities and (2) avoid 

economic losses. The IIJA appropriates 

$200 million per year for each of fiscal 

years (FY) 2022 through 2026 for the 

NGDISM program ($1 billion in total). 

The IIJA provides that two percent of 

this amount shall be used to pay the 

administrative expenses of the NGDISM 

program. Accordingly, the total amount 

expected to be awarded as grant funding 

over the five-year period is 

approximately $980,000,000. In FY22, 

PHMSA awarded approximately $196 

million to 37 municipal- and 

community-owned natural gas utilities 

across the nation to fund pipeline 

replacement projects and the purchase 

of leak-detection equipment. In FY23, 

PHMSA awarded $391 million to 65 

applicants; and in FY24 PHMSA 

awarded another $196 million to 56 

applicants. This brings current overall 

program totals to $784 million granted 

to 158 applicants, where funds are 

rehabilitating the natural gas system or 

acquiring equipment to improve public 

safety and reduce economic losses. 

PHMSA expects that a very small 

portion of NGDISM funding (less than 

about $1.9 million) would be spent each 

year on the products waived from BABA 

requirements. 

In the same legislation, Congress also 

enacted the BABA Act, which provides 

that ‘‘none of the funds made available 

for a Federal financial assistance 

program for infrastructure . . . may be 

obligated for a project unless all of the 

iron, steel, manufactured products, and 

construction materials used in the 

project are produced in the United 

States.’’ See IIJA, Public Law 117–58, 

sec. 70914(a). Under IIJA Section 

70914(b), PHMSA has authority to 

waive the requirements of BABA (1) if 

a domestic product is unavailable; (2) if 

using a domestic product would present 

an unreasonable cost; or (3) if 

application of BABA would not be in 

the public interest. 


ddrumheller on DSK120RN23PROD with NOTICES1
7242 Federal Register / Vol. 90, No. 12 / Tuesday, January 21, 2025 / Notices 

1 Global Market Insights. North America Gas 

Meter Market Size—By Type (Diaphragm Meters, 

Rotary Meters, Turbine Meters, Ultrasonic Meters, 

Coriolis Meters), By Technology (Smart, 

Conventional), By End Use, By Distribution 

Channel & Forecast, 2024–2032.Global Market 

Insights. September 2024. https://

www.gminsights.com/industry-analysis/northamerica-gas-meter-market. 

2FactMR. Gas Pressure Regulators Market 

Outlook (2024 to 2034). Fact MR. October 2024. 

https://www.factmr.com/report/gas-pressureregulator-market. 

On August 13, 2024, PHMSA issued 

a Notice of Proposed Nonavailability 

Waiver of Buy America Requirements 

for certain products, on the basis of 

nonavailability, and in accordance with 

Section 70914(c) of BABA, PHMSA 

sought public comments on the 

proposed waiver. The products 

proposed to be waived included gas 

service risers and gas meters. The notice 

also sought comment on the availability 

of compliant gas service regulators. 

PHMSA considers these products to be 

either ‘‘iron or steel products’’ or 

‘‘manufactured products’’ under BABA 

depending on the cost of the iron and 

steel components incorporated in each 

product. See 2 CFR 184.3. A more 

detailed description of each product is 

provided below: 

• Gas Service Risers: Service risers 

are sections of pipe that provide a 90- 

degree connection between 

underground gas service lines and 

aboveground meter assemblies. Risers 

are made primarily of steel but typically 

also include polyethylene components 

and may include a protective sleeve 

over the polyethylene components. 

Service risers are manufactured in a 

variety of sizes and may be rigid or 

flexible. 

• Gas Meters: Gas meters are placed 

outside of a residence or business that 

utilizes natural gas and allows the 

utility operator to track how much gas 

is being used by the residence or 

business. Gas meters incorporate a 

variety of components made of different 

materials. 

• Gas Service Regulators: Gas service 

regulators are devices incorporated into 

a meter assembly designed to allow gas 

from a higher-pressure service line to 

enter a residence’s or business’s gas 

lines at a lower pressure ideal for 

everyday use. 

During its initial market research, 

PHMSA identified a single company 

that currently produces BABAcompliant service regulators. 

Accordingly, PHMSA did not include 

gas service regulators in the proposed 

waiver it published on August 13, 2024, 

as the market research did not support 

a clear finding of nonavailability. 

However, some NGDISM recipients 

expressed concerns about whether a 

single company would be able to supply 

the volume of regulators needed by all 

NGDISM award recipients. As it is 

difficult to know exactly the anticipated 

demand for gas service regulators during 

the life of the NGDISM program, it is 

also difficult to determine if one 

company can supply all regulators 

needed. PHMSA engaged with the 

company to determine its production 

capacity for gas service regulators, but 

PHMSA lacked information on the 

anticipated demand during the life of 

the NGDISM program. As gas service 

regulators are a critical safety 

component of gas distribution systems, 

a lack of sufficient supply could unduly 

delay the safety-critical construction 

projects funded by the NGDISM 

program. As a result, PHMSA 

specifically requested comments from 

industry on the demand for gas service 

regulators purchased through the 

NGDISM program to inform its future 

consideration of any potential waivers 

of BABA requirements for service 

regulators. 

Discussion of Public Comments 

PHMSA has considered all comments 

received in the initial 15-day comment 

period during its consideration of the 

proposed waiver, as required by section 

70914(c)(2) of the IIJA. Public comments 

regarding the NGDISM programmatic 

waiver were received through August 

28, 2024. PHMSA received a total of 

seven comments on the proposed 

waiver. The majority of the commenters 

noted PHMSA’s lack of coverage for 

certain products in the waiver and 

provided information on the insufficient 

quantities of certain items that were 

available and met domestic content 

requirements. Commenters also noted 

the significant lag time between order 

placement and delivery, and limited 

production capacity, which results in 

limited or no availability of the product. 

The ensuing lack of availability would 

impede or possibly halt any ongoing 

natural gas system construction. Some 

of the comments noted supply delays 

ranging from months to possibly two 

years and result in significant overall 

project construction delays. Public 

comments also specifically requested a 

broadened scope to expand the range of 

gas service anodeless risers, gas meters, 

gas service regulators, and additional 

materials, and to extend the waiver 

duration from three years to five years. 

One commenter stated that ‘‘PHMSA 

should require the use of domestically 

produced aluminum extrusions in the 

production of gas meters,’’ opining that 

PHMSA should mandate aluminum 

extrusions be used for gas meter 

manufacture. This proposal is beyond 

the scope and consideration of ‘‘Buy 

America Preferences for Infrastructure 

Projects,’’ 2 CFR 184 (Oct. 1, 2024). This 

should be addressed on a broader range 

and scale, along with various technical 

studies, analyses, and congressional 

mandates that consider broad industry 

requirements for aluminum extrusion in 

the gas meter manufacturing industry. 

These concerns cannot be addressed 

within the programmatic waiver for the 

NGDISM Grants program, which is 

limited to the program grantees and 

beyond the scope and purpose of this 

grant program. 

Also, the market share relative to 

industry is negligible. The 2023 North 

American Gas Meter Market size was 

$3.7 billion.1 With current NGDISM 

program awards of approximately 6,000 

meters per year, proposed NGDISM 

spending on gas meters would be 

approximately $1.2 million per year. 

The resulting potential market share of 

0.04 percent would not provide 

significant support to BABA 

compliance. 

In response to PHMSA’s specific 

request for information about demand 

for gas service regulators through the 

NGDISM grant program, commenters 

representing eligible NDGISM grantees 

provided an estimated total quantity of 

40,911 gas service regulators (both 

current and projected) during the fiscal 

year program period (FY 2022 thru FY 

2026) and across 30 systems. The 

average annual market size would be 

$1.2 million for anticipated NGDISM 

projects. This would equate to a 0.2 

percent market share of a 2024 gas 

pressure regulator estimated market 

value of $552.8 million dollars.2 Given 

this small gas service regulator market 

share, the waiver would have a 

negligible effect on both industry and 

BABA compliance and create 

impediments to grantees’ efforts to 

enhance safety and reduce economic 

loss as a result of constricted 

availability. 

The remaining commenters, all 

potential NGDISM recipients, noted 

similar concerns. Specifically, their 

concerns focused on the timely 

availability and limited scope of gas 

service anodeless risers, gas meters, and 

gas service regulators. This is due to a 

single sole provider that may not be able 

to timely meet the concurrent demand 

from all the various grant projects. This 

singular provider would be responsible 

for the influx for various models and 

quantities; varying geographical 

delivery locations and delivery dates to 

meet operator schedules; and most 

importantly, maintaining continued 

public safety. Any delays or inability by 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 90, No. 12 / Tuesday, January 21, 2025 / Notices 7243 

the single provider could result in 

noncompliance, loss of use of a basic 

utility, and public exposure to safety 

risks from failing equipment. In 

addition, the limited selection could 

force various operators to install risers 

or regulators that are unfamiliar to their 

technicians or not compatible with their 

existing operating equipment. This 

would increase the grantee’s costs by 

requiring the purchase of new 

associated compatible equipment and 

additional training, and increase the risk 

of operator error on new and unfamiliar 

equipment. 

One commenter noted concerns 

regarding the domestic availability of 

additional products (transition fittings, 

electro-fusion tapping tees, lockwing 

valves, magnesium anodes, service 

adapters, curb valves, caps, couplings, 

and stiffeners) and suggested increasing 

the waiver duration from three to five 

years. Additional materials may be 

considered in future waivers. 

The proposed waiver facilitated a 

broad range of interest and input from 

the public and other stakeholders, and 

PHMSA greatly appreciates the robust 

feedback from members of the public. 

The comments are available on the 

docket at https://www.regulations.gov, 

Docket (PHMSA–2024–0131). 

Summary of Changes in the Final 

Waiver 

PHMSA is making two changes from 

the proposed waiver in response to the 

information received during the public 

comment period. First, PHMSA is 

clarifying that all types of risers are 

included in the waiver. This directly 

addresses concerns regarding the 

availability of BABA compliant gas 

service risers. Secondly, PHMSA is 

including gas service regulators in this 

waiver. Based on responses to questions 

that PHMSA posed regarding the 

availability of sufficient quantities of 

compliant gas service regulators, 

PHMSA finds that the availability and 

appropriate selection of gas service 

regulators that are BABA compliant are 

not available in timely and sufficient 

quantities to meet NGDISM grantees’ 

operating conditions and project 

schedule requirements. Therefore, 

PHMSA has added gas service 

regulators. The waiver for meters is 

unchanged from the proposed waiver. 

Public comments to the proposed 

waiver supported including meters and 

no changes for meters have been made 

in the final waiver. 

Final Waiver 

Based on its review of the waiver 

request, and in consideration of 

comments received on the proposed 

waiver, PHMSA has determined that gas 

service risers, gas meters, and gas 

service regulators are not manufactured 

in the United States in sufficient and 

reasonably available quantities. PHMSA 

is waiving BABA requirements for gas 

service risers, gas meters, and gas 

service regulators. The waiver will 

apply to obligations made on or after the 

effective date of the final waiver for 

recipients of funding under the 

NGDISM Grant Program and, in the case 

of awards obligated prior to the effective 

date, all expenditures for covered 

products incurred after the effective 

date and will expire after three years. 

Issued in Washington, DC, under authority 

delegated in 49 CFR 1.97. 

Tristan H. Brown, 

Deputy Administrator. 

[FR Doc. 2025–01320 Filed 1–17–25; 8:45 am] 

BILLING CODE 4910–60–P 

DEPARTMENT OF TRANSPORTATION 

Pipeline and Hazardous Materials 

Safety Administration 

[Docket No. PHMSA–2024–0152] 

Pipeline Safety: Project-Specific 

Waiver of the Build America, Buy 

America Act Requirements for Certain 

Products Used by Philadelphia Gas 

Works Under the Natural Gas 

Distribution Infrastructure Safety and 

Modernization Grant Program 

AGENCY: Pipeline and Hazardous 

Materials Safety Administration 

(PHMSA), Department of Transportation 

(DOT). 

ACTION: Notice. 

SUMMARY: The Pipeline and Hazardous 

Materials Safety Administration 

(PHMSA) is waiving the Build America, 

Buy America (BABA) Act’s domestic 

preference requirements for certain 

products that Philadelphia Gas Works 

(PGW) needs for its Natural Gas 

Distribution Infrastructure Safety and 

Modernization (NGDISM) grant project 

due to lack of availability, unreasonable 

cost, or public good. The waiver would 

exempt the following products used in 

PGW’s project from BABA requirements 

on the basis of nonavailability: electrofusion tapping tees, anodeless risers, 

transition fittings, lockwing valves, 

magnesium anodes, service adapters, 

curb valves, caps, couplings, and 

stiffeners. 

DATES: The effective date of the waiver 

is January 22, 2025. 

FOR FURTHER INFORMATION CONTACT: For 

questions about this notice, please 

contact Mr. Louis Cardenas, Office of 

Pipeline Safety, by phone at 832–208– 

0132 or by email at Louis.Cardenas@

dot.gov. 

SUPPLEMENTARY INFORMATION: 

Electronic Access and Filing 

A copy of this notice and all 

background material may be viewed 

online at https://www.regulations.gov 

using the docket number listed above. 

Electronic retrieval help and guidelines 

are also available at https://

www.regulations.gov. An electronic 

copy of this document also may be 

downloaded from the Office of the 

Federal Register’s website at 

www.FederalRegister.gov or the 

Government Publishing Office’s website 

at www.GovInfo.gov. 

Background 

The NGDISM grant program was 

authorized by the Infrastructure 

Investment and Jobs Act (‘‘IIJA’’) (Pub. 

L. 117–58). The program provides 

federal funding to municipal- or 

community-owned natural gas utilities 

(not including for-profit entities) to 

repair, rehabilitate, or replace their 

natural gas distribution pipeline 

systems or portions thereof, or to 

acquire equipment to (1) reduce 

incidents and fatalities, and (2) avoid 

economic losses. The IIJA appropriates 

$200 million per year for each of Fiscal 

Years (‘‘FY’’) 2022 through 2026 for the 

NGDISM grant program ($1 billion in 

total). The IIJA provides that two 

percent of this amount shall be used to 

pay the administrative expenses of the 

NGDISM grant program. Accordingly, 

the total amount expected to be awarded 

as grant funding over the five-year 

period is $980,000,000. 

Congress also enacted the BABA Act, 

providing that ‘‘none of the funds made 

available for a Federal financial 

assistance program for infrastructure 

. . . may be obligated for a project 

unless all of the iron, steel, 

manufactured products, and 

construction materials used in the 

project are produced in the United 

States.’’ IIJA, Public Law 117–58, sec. 

70914(a). Under IIJA section 70914(b), 

PHMSA has authority to waive the 

requirements of BABA (1) if a domestic 

product is unavailable; (2) if using a 

domestic product would present an 

unreasonable cost; or (3) if application 

of BABA would not be in the public 

interest. 

Across three fiscal years (FY2022, 

FY2023, and FY2024) PGW has been 

awarded $125 million in NGDISM grant 

funding to help fund the replacement of 

‘‘at-risk’’ natural gas cast iron pipe 

within the city of Philadelphia as part 


ddrumheller on DSK120RN23PROD with NOTICES1