Notice of Granted Buy America Waiver (July 2002)

Printer Friendly Number 67 FR 47885

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[Federal Register:  July 22, 2002  (Volume 67, Number 140)]
[Page 47885-47886]
From the Federal Register Online via GPO Access []
Federal Transit Administration
Notice of Granted Buy America Waiver
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice of granted Buy America waiver.
SUMMARY: This waiver was granted to Webasto Thermosystems, Inc., 
Teleflex Thermal Technology, and Espar Products for the manufacture of 
an auxiliary heater to be used in bus heating systems and will allow 
vehicle manufacturers to count the auxiliary heater as domestic when 
calculating domestic content. This notice shall ensure that the public, 
particularly potential manufacturers, is aware of this waiver. FTA 
requests that the public notify it of any relevant changes in the 
domestic market of auxiliary heaters.
[[Page 47886]]
Counsel, Room 9316, (202) 366-1936 (telephone) or (202) 366-3809 (fax).
SUPPLEMENTARY INFORMATION: The above referenced waiver is as follows:
May 15, 2002
Mr. Patrick Lock, Transit OEM Account Manager, Webasto Theromsystems 
Inc., 3333 John Conley Dr., Lapeer, Michigan 48446.
Mr. Scott Winton, Sales & Marketing Manager, Thermal Division, 
Teleflex Thermal Technology, 3831 No. 6 Road, Richmond, BC, Canada 
V6V 1P6.
Mr. John Dennehy, Vice President of Marketing and Communications, 
Espar Products, Inc., 6435 Kestrel Road, Mississauga, Ontario, 
Canada L5T128.
    Dear Messrs. Lock, Winton, and Dennehy: This is in response to 
Mr. Lock's letters of March 5, 2002, and April 1, 2002, in which he 
requested a Buy America component waiver. The request is based on 
the domestic non-availability of auxiliary heaters used in bus 
heating systems. For the reasons below, I have determined that a 
waiver is appropriate here.
    We received a similar request from Teleflex on July 28, 2001, 
which was ultimately denied. The reason for that denial was 
discussed in our September 28, 2001, letter. We considered the fact 
that the auxiliary heaters comprised a small percentage of the 
overall material content of the vehicle and FTA's unwillingness to 
create a competitive advantage where there might be more than [sic] 
one foreign manufacturer. In that case, no further information was 
provided concerning the market or other manufacturers, and 
therefore, we were not presented with enough information on which to 
base a waiver.
    However, the request by Webasto contained the information needed 
to grant this waiver; specifically, we were given information about 
all known auxiliary heater manufacturers. We then verified this 
information with many vehicle manufacturers and were told that the 
three companies listed here were, in fact, the only known 
manufacturers of such auxiliary heaters and that all three companies 
supply foreign products. We are now confident that no domestic 
manufacturer of this product currently exists.
    The Federal Transit Administration's (FTA) requirements 
concerning domestic preference for federally funded transit projects 
are set forth in 49 U.S.C. 5323(j). Section 5323(j)(2)(C) contains 
the general requirements for the procurement of rolling stock. This 
section provides that when rolling stock is procured with FTA funds, 
the cost of the components and subcomponents produced in the United 
States must be at least 60 percent of the cost of the components of 
the rolling stock, and the vehicle must undergo final assembly in 
the U.S. See also, 49 CFR 661.11. Section 5323(j)(2)(B) states that 
those requirements shall not apply if the item is not produced in 
sufficient and reasonably available amounts in the U.S. See also, 49 
CFR 661.7(c). The implementing regulation allows a bidder or 
supplier to request a non-availability waiver for a component or 
subcomponent of rolling stock. 49 CFR 661.7(f) and 661.9(d).
    Based on the above-referenced information, I have determined 
that the grounds for a ``non-availability'' waiver do exist for 
Webasto, Teleflex, and Espar. Therefore, pursuant to the provisions 
of 49 U.S.C. 5323(j)(2)(B), the waiver is hereby granted for all 
contracts for auxiliary heaters entered into within two years of the 
date of this letter, or until such time as a domestic source for 
this type of product becomes available, whichever occurs first. In 
order to ensure that the public is aware of this waiver, 
particularly potential manufacturers, it will be published in the 
Federal Register.
    If you have any questions, please contact Meghan G. Ludtke at 
(202) 366-1936.
      Very truly yours,
Gregory B. McBride,
Deputy Chief Counsel.
    Dated: Issued July 16, 2002.
Jennifer L. Dorn,
[FR Doc. 02-18347 Filed 7-19-02; 8:45 am]