§22905 Grant conditions

Summary

Federal grant money can only pay for a project if the steel, iron, and manufactured goods used are made in the United States. The Secretary of Transportation can waive that rule if using U.S. materials would hurt the public interest, there aren’t enough U.S. goods or they are not good enough, needed rolling stock or power-train equipment can’t be bought and delivered in the U.S. in a reasonable time, or using U.S. materials would raise the project cost by more than 25 percent. Labor for final assembly is not counted when figuring component costs. Before a waiver takes effect, the Secretary must publish a written reason in the Federal Register and allow public comment for up to 15 days. The Secretary had to report any waivers to two Congressional committees by December 31, 2012. The Secretary may not waive the rule for goods from a foreign country if, after consulting the U.S. Trade Representative, that country has an agreement and has broken it by discriminating against U.S. goods. A person who knowingly labels foreign-made goods as “Made in America” or falsely says they were made in the U.S. cannot get contracts. States may set stricter rules. A supplier may fix a clerical error in a certification after bids open (but not a missing signature) if they swear under penalty of perjury that it was an honest mistake. A person harmed by an agency action can seek review under section 702 of title 5. These buy-American rules apply only to projects that cost more than $100,000. Anyone who runs trains over rail built or improved with these grants is treated as a rail carrier under federal law for programs like Railroad Retirement, the Railway Labor Act, and Railroad Unemployment. Grants for projects that use railroad rights-of-way must include a written agreement between the project applicant and the railroad about payment, assurance that the track can handle current and future freight and passenger service, a promise that the railroad’s collective bargaining agreements stay in effect for work the railroad does, and appropriate liability protection. The applicant must follow construction standards as they were on September 1, 2003, and provide protective arrangements for affected employees similar to existing law. If a new provider replaces Amtrak on a grant-funded route, the new provider must bargain with the unions for affected employees. The agreement must give qualified predecessor employees hiring priority by seniority for up to 3 years, provide notice and application procedures, and set pay and working conditions. The replacing provider must give at least 90 days’ written notice. Negotiations start within 5 days, last up to 30 days, and unresolved issues go to arbitration. If the parties cannot pick an arbitrator within 5 days, the National Mediation Board helps provide a list; the arbitrator must hold a hearing and decide within 45 days, and the decision is final. If the replacement happens within 3 years after the new provider began service, the parties have 60 days to agree, then arbitration with a hearing and decision schedule of 20 days. Exemptions include commuter rail run by certain state or local authorities, the Alaska Railroad, and Amtrak’s access rights. No grants under this chapter go to commuter rail passenger transportation as defined in the law.