Document MG5D0L1dE6EGG9xpB5pBKbxJ9

DECISION MEMORANDUM FES 18 US oss ms. of waf f o SUBJECT; FROM; Short Term National Product Waiver for Stainless. Steel Nuts .and Bolts used in Pipe Couplings, Restraints, Joints, Flanges, and Saddles for State Revolving Fund Projects * ' , "Ee moth l Kopocis i::;/ Dc puty Assistant Administrator The U.S. Knvrnnmentai Protection Agency is hereby granting a national product waiver pursuant to the '`American Iron and Steel" provisions o f the Clean Water Act and Public Law ! 13-235. the "i onsulidated and Further Continuing Appropriations Act. 2015.'"' The waiver permits the use oi nun-domestically produced stainless steel nuts and bolts in boiling-type pipe couplings, restraints, joints, llanges and repair saddles in iron and steel products for projects funded by a Clean Water or Drinking Water State Revolving Fund that may otherwise be prohibited absent this waiver. This national product waiver is short-term, applying to the covered products if those products are purchased up until one year after the waiver's signature date. The waiver is retroactive and also applies to products purchased before the signature date. Covered products purchased prior to the waiver's signature date or within the one-year period may he used subsequent u* the waiver expiration date. t 'i'Aemge' 11'c specific product categories covered by this waiver include bolted expansion joints, bolnat dionunding oints, bolted pipe couplings, boiled pipe restraints, bolted pipe tl.nges. boded flange adapters, bolted pipe repair or service saddles, bolted mechanical joints, and pipe hungers and supports Non-domestic stainless steel nuts and bolts may be incorporated into them specific pu ducts, however, all other iron and steel components in these products, unless subject to a waiver, must still meet the AIS requirements. In other words, this waiver does not exempt the whole product, or any of the main iron or steel components <vch as the ring, sleeve, body, flange spool or mechanical joint, from the AIS recuuvments just because stainless steel nuts and bolts are used. Any project that receives funds from flu* i'W SR F or DWSRF since the enactment o f P.L, 113-76, the "Consolidated Appropriations Act, .2014," is required to comply with the AIS provisions. 1Absent a waiver, all iroutnient works and drinking water facilities that are constructed, in whole orn park with funds from the CWSR.F or the DWSRF. must use. American made iron and steel. EP Is allowed under certain circumstances to provide waivers of tins requirement. fam tf WA; ax* rom , <W m sw re e m ssay Rsei!C:'W;Rasya:OU:ia *Aaatea witR Vegetarte Oit OssiaS sa;, as IdO'A aw sas satas;'. W-satan. Cftatsaa Sas;; RaaycOa Sasa; Sierra Club v. EPA 18cv3472 NDCA Tier 7 ED 002061 00099969-00001 Rationale: The AIS provisions require CWSRF and DWSRE assistance recipients lo use specific domestic iron and steel products that are produced in the United States if the project is funded through an SRF assistance agreement unless the Agency determines that it is necessary to waive this requirement. UFA has authority to issue waivers in accordance with Section 608(c)(2) of the Clean Water Act and the AIS provisions extended by P.L. 113-235, the "Consolidated and Further Continuing Appropriations A ct 20152' under the authority o f Section 424(b)(2). The provision states In part: "[the requirements] shall not apply in any case or category o f cases in which the Administrator o f the Environmental Protection Agency... finds that iron and steel products are not produced in the United States in sufficient and reasonably available quantities and o f a satisfactory quality." Product manufacturers and suppliers informed EPA of concerns about insufficient availability o f appropriate domestically produced rainless steel nuts and holts for use in their bolting-type products. The> noted concerns about both deliver)' (up to six-month delays) and pricing (as much, as ten-fold increases per fastener piece }. EPA conducted extensive research and outreach into the market supply o f the required parts and determined that, at the time o f this waiver, the current manufacturers and suppliers o f domestic stainless steel nuts and bolts used In the products identified above are not able to deliver sufficient and reasonably available quantities and sizes .of stainless steel nuts and bolts for the products needed. Although special-order stainless steel, nuts and bolts might be obtainable for select requests, the lag-time for delivery o f these products does not meet the requirements o f most projects or suppliers. However, one supplier informed EPA that it is in tire process o f increasing its supply o f domestic nuts and bolts and expects to fee providing increased supply within several months. Hence, EPA is providing a national product waiver for one year, Prior to the expiration, o f the waiver, EPA intends to reassess the market and supply for stainless steel nuts and bolts for the products of interest and will reassess the need for reissuing this waiver. Public Comments. EPA received comments generally in favor o f issuing a waiver. Several commenters requested that EPA include additional types-of stainless steel bolts and rods within purview o f this waiver, as follows: threaded 11-bolts used as a part o f a pipe saddle; the restraint rod In bolted pipe restraints; joint harness tie bolts; threaded hook rods in adjustable beam dam ps; and pipe hanger rods, EPA is declining lo include these products In this w aiter. The pipe hanger rods and threaded hook rods are not integral to the coupling products covered by this waiver. Additionally, market research shows that the requested additional rods/U-boltsdiamess tie bolts integrated within the couplings covered by this waiver are all domestically available. Their availability is in sufficient quantity to differentiate them from the covered stainless steel bolts and nuts covered herein, Some commenters requested that EPA make the waiver a permanent action. EPA has decided to issue the waiver for a one-year term. Prior to the expiration, o f the waiver, EPA will reassess the product market for any changes In domestic availability. As noted above, EPA learned that at least ore domestic manufacturer has expressed interest in producing AIS compliant products that would nmw the need addressed, by this waiver. Hence, EPA has determined that It wall not issue a permanent new er at this time. 0 Sierra Club v. EPA 18cv3472 NDCA Tier 7 ED 002061 00099969-00002 Other commenter* requited that EPA clarify the coverage o f this waiver for past and future products, in other words explain whether products purchased prior to enactment o f this waiver would be coveted. As noted above, the waiter is retroactive. Recipients thus may use products covered by this wanes that wore purchased wrier to the signature date. Finally, one commcntur suggested that all fasteners (regardless o f whether >r not they are stainless steel) he excluded iron) Ihe A1S requirement. FPA declines to act on thri recommendation. While FPA understands "hot lor some manufacturers there is significant burden to track, obtain, store and manage separate stocks of domestic and foreign fasteners within their product lines, it doe< not consider this w arier to ;v die .qmrnorinte means ve address this issue, UFA understands that dormmie fastener menuCcturers cam protide most o f the Apes and s i/e s o f non-sfainless sled fasteners needed for coscred projects and therefore ERA will not include, all fasteners. Legal Authority: Legal authority for the A1S requirements for CWSRF projects is included under Sec, 608(c)(3) of the Clean Whiter Act and previously under P.L. 1 13-76, the "Consolidated Appropriations Act. 2014," under the authority o f Section 436(h)(2), Legal authority for the AIS requirements for DWSRF projects is included under P.L. 113-235, the "Consolidated and Further Continuing Appropriations Act, 2015," under the authority of Section 42 C og A and also previously under P.L. 113-76. This waiver will continue hi force for DWSRF projects under any continuing resolutions or statutes that use similar language as >n Section 42.4 o f the "Consolidated and Further Continuing Appropriations Act, 2015." If you have questions concerning the contents of this memomndum. please weOuet 1imothy Connor, Chemical Engineer, Municipal Support Dhariori. at canrmor.rimothy iCepa.gov o r >202) 366-1059 or Kiri Anderer, Environmental Engineer, Drinking Water Protection DAistoo. at anderer,k?rstetSsepa.gov or (202) 564-3134, Sierra Club v. EPA 18cv3472 NDCA Tier 7 ED 002061 00099969-00003