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[Federal Register Volume 90, Number 12 (Tuesday, January 21, 2025)]
[Notices]
[Pages 7240-7241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01356]

[[Page 7240]]

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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-2024-0151]

Pipeline Safety: Project-Specific Waiver of the Build America, 
Buy America Act Requirements for City Utilities of Springfield, 
Missouri for Certain Products Under the Natural Gas Distribution 
Infrastructure Safety and Modernization Grant Program

AGENCY: Pipeline and Hazardous Materials Transportation, Department of 
Transportation (DOT).

ACTION: Notice.

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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 City Utilities of 
Springfield, Missouri, (City Utilities) will use in its Natural Gas 
Distribution Infrastructure Safety and Modernization (NGDISM) grant 
project, due to unavailability, project cost, or public good. The 
waiver would exempt the following products used in City Utilities' 
project from BABA requirements on the basis of nonavailability: locator 
markers; meter stops with insulated unions; magnesium anodes; 1A meter 
swivels, nuts, and washers; and direct bury lugs.

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 [email protected].

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.
    In FY2022, City Utilities was awarded $10 million in NGDISM grant 
funding to help fund its ``Legacy Plastic Pipe Replacement Project,'' 
which it initiated in 2010. Of the $10 million awarded for this project 
the materials covered by the waiver only represent an estimated 0.72% 
or $72,000. City Utilities operates approximately 500 miles of ``Aldyl 
A'' plastic distribution pipeline within disadvantaged areas of 
Springfield, Missouri. The $10 million awarded would allow City 
Utilities to speed up its ``Legacy Plastic Pipe Replacement Project'' 
by funding the replacement of approximately 13.7 miles of legacy Aldyl 
A pipe and approximately 1,409 legacy plastic gas services with modern, 
industry-standard polyethylene pipe. City Utilities will also use the 
grant funds to install a locator system on the new pipeline, allowing 
the pipe to be located during future excavation activities that may 
occur near the pipeline, thereby preventing damage to the pipeline and 
improving pipeline safety.

Proposed Waiver and Request for Comments

    On September 27, 2024, PHMSA published a Notice of Proposed 
Project-Specific Waiver of the Build America, Buy America Act 
Requirements for City Utilities of Springfield, Missouri for Certain 
Products and Request for Comment (89 FR 79362) for certain products on 
the basis of nonavailability. The specific essential products City 
Utilities sought a waiver for are listed below:
     Locator Markers: Locator markers are small devices placed 
on buried pipe and valves designed to help operators locate the 
facilities to help prevent damage to the pipe from excavation 
equipment. (NAICS: 325211)
     Meter Stops with Insulated Union: Meter Stops are valves 
that are installed on a natural gas riser upstream of the meter to 
serve as a shut-off valve to control the flow of gas into the meter and 
subsequently into the building's gas system. They are crucial for 
maintenance and emergencies, or when the gas service needs to be shut 
off. Insulated Unions are fittings attached to the above ground portion 
of a natural gas utility riser to electrically insulate (i.e., isolate) 
a structure from the pipeline system to prevent corrosion. (NAICS: 
332919)
     Magnesium Anodes: Magnesium anodes are blocks of magnesium 
that are attached to steel pipe to protect against corrosion damage. 
(NAICS: 335999)
     1A Meter Swivels, Nuts, and Washers: Meter swivels, nuts, 
and washers are fasteners used to secure a gas meter assembly. (NAICS: 
33251/332722)
     Direct Bury Lugs: Direct Bury Lugs are waterproof 
connectors used for splicing low-voltage wires, like those used in 
tracer wire, without cutting the main line wire. They simplify 
installation and increase the longevity of the connection with pre-
filled silicone sealant for waterproofing. (NAICS: 332999)
    On December 13, 2023, City Utilities issued an Invitation for Bids 
(``IFB'') seeking, among other products, locator markers; meter stops 
with insulated union; magnesium anodes; 1A meter swivels, nuts, and 
washers; and direct bury lugs. The IFB remained open for more than a 
month, between December 13, 2023, and January 15, 2024. In response to 
the IFB, City Utilities received seven responsive bids. However, each 
of the respondents to the IFB represented that they would not be able 
to certify compliance with BABA requirements for the above listed 
products.
    Additionally, prior to City Utilities requesting this waiver, PHMSA 
independently engaged the supplier scouting services of the National 
Institute of Standards and Technology

[[Page 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
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