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A ‘Buy America’ Waiver for CHSRA?

(Rendering Courtesy of CHSRA)
(Rendering Courtesy of CHSRA)

The Federal Railroad Administration (FRA) is seeking comments on whether to grant a waiver of its Buy America requirements to the California High-Speed Rail Authority (CHSRA or Authority) so it can use certain non-U.S.-manufactured products on its 171-mile project between Merced and Bakersfield, Calif. Since FRA has awarded $3.073 billion to the project under the Federal-State Partnership for Intercity Passenger Rail Program, its Buy America requirements apply. Comments are due Oct. 7.

(CHSRA Image)

“FRA’s Buy America requirements include both FRA’s statutory requirements, which require 100% of the manufactured products and steel and iron used in an FRA-funded project to be produced in the United States, and the Build America, Buy America Act (BABA), which requires that all construction materials used in the FRA-funded project be produced in the United States,” FRA reported in the Federal Register’s Sept. 20 edition (download below). “FRA is not proposing to waive the applicable BABA requirements for construction materials used in the Project. The proposed waiver would apply to the aluminum car shells, signal systems, high-speed rail turnouts and fire alarm systems based on the domestic nonavailability of such products, as identified by the Authority. The Authority estimates that over 98% of the total direct dollar expenditures for the Project would be spent on domestically sourced products and labor, including 100% of the civil infrastructure costs.”

In August 2023, the Authority issued a Request for Qualifications to procure six trainsets that could meet FRA’s Passenger Equipment Safety Standards governing Tier III equipment, which “establishes safety standards for high-speed rail equipment and operations that travel at speeds above 125 mph,” reported FRA, which noted that the two responding Original Equipment Manufacturers (OEMs) did not indicate they would be able to supply a fully Buy America-compliant trainset and both said they would need a waiver for the aluminum car shells (shell, structure, and vehicle paintwork), as the shells are not produced in the United States. In April 2024, the Authority issued a Request for Proposals for the six trainsets to the two pre-qualified, shortlisted OEMs: Alstom Transportation Inc. and Siemens Mobility Inc. According to FRA, in addition to trainsets, the Authority identified additional products that are not produced domestically, which would also require a waiver. It is expected to complete the procurement process for trainsets and other contracts later this year.

(Rendering Courtesy of Brightline West)

FRA reported in the Federal Register that it recently conducted a similar analysis for these high-speed rail products in its final nonavailability waiver for the 218-mile, $12 billion Brightline West high-speed rail project connecting Las Vegas and Southern California, based on a request from the Nevada Department of Transportation and Brightline West, the private project sponsor. “Brightline West conducted market research for these same products and coordinated with potential suppliers and the NIST MEP to locate domestic suppliers,” FRA said. “In the final waiver [released in May 2024], FRA concluded that the high-speed rail products, which are the same items for which the Authority seeks a waiver, are not produced in the United States based on Brightline West’s market research and coordination with potential suppliers. In developing its waiver request, the Authority noted that it closely coordinated with Brightline West to identify products that are not currently produced in the United States.” (Brightline West has since designated Siemens Mobility preferred bidder to supply 10 seven-car “American Pioneer 220” (AP 220) electric trainsets, and Siemens Mobility has announced that it would build a new plant in Horseheads, N.Y. to manufacture those trainsets.)

(Brightline West Image)

Similar to the Brightline West project, the Authority proposes to use the European Rail Traffic Management System (ERTMS) “to ensure safety of the high-speed rail system and expects to conform to FRA’s Tier III Rule, “which allows for service-proven high-speed rail technologies from around the world (in this case, Europe) to be introduced to the United States with minimal modification,” according to FRA.

Although the Authority’s procurement process for the signal system is ongoing, FRA continued, the Authority requested a waiver “for eurobalises and euroloops that can be used in the ERTMS for the Project, as these products will be required for the ERTMS regardless of the selected supplier.” FRA noted that it previously considered the availability of eurobalises and euroloops in the Brightline West waiver and concluded these products are not produced in the United States.

Additionally, and similar to the Brightline West waiver, the Authority’s project will require the use of specialty high-speed rail turnouts; it will also use fire alarm panels and devices in stations, garages, and maintenance facilities, which the Authority and FRA found are not produced in the United States.

Based on FRA’s review of the waiver request, the Authority’s domestic sourcing and workforce plan, and FRA’s previous findings in the Brightline West Waiver, the federal agency said it proposes to waive its Buy America requirements for only the products listed above.

FRA added that it expects the Authority to make its trainset procurement decision based on the needs for the project and to select products that meet its specifications. “If, based on the final procurement, there are changes to the items described in the final waiver, the Authority may need to request additional waivers from the FRA,” the federal agency said.