Government Can't Tell Where Old Trains Come From, Buys Anyway
Published Date: 1/13/2025
Notice
Summary
The Federal Railroad Administration wants to make it easier to buy used locomotives for upgrading into cleaner, greener trains by temporarily waiving some Buy America rules. This change helps speed up projects that cut pollution and create jobs, but only for certain old locomotives, not new parts or materials. People have until January 28, 2025, to share their thoughts on this plan.
Analyzed Economic Effects
6 provisions identified: 5 benefits, 1 costs, 0 mixed.
Waiver lets grantees buy old locomotives
The FRA proposes a public-interest waiver of its Buy America rules so FRA-funded projects can purchase used Tier 0, Tier 1, and non-tiered locomotives to convert them into all-electric, renewable diesel, battery-powered, or other renewable-energy locomotives. This waiver is intended to make it easier for grant recipients to acquire old locomotives that are hard to verify for U.S.-only components.
Waiver excludes new parts and materials
The proposed waiver does not apply to any other manufactured products, steel, iron, or construction materials used in FRA-funded projects, and it does not apply to new items necessary for the project such as the battery system and its components. The FRA is not proposing to waive applicable Build America, Buy America Act (BABA) requirements.
Goal: cut emissions and create jobs
The FRA says the waiver would help remove highly polluting locomotives, reduce overall emissions, address environmental burdens on nearby communities, and create domestic jobs. The waiver is framed as a way to speed projects that convert older locomotives to cleaner technology.
Which locomotives qualify for the waiver
The proposed waiver would apply only to used locomotives that: (1) have been in continuous service in the United States from their date of manufacture; (2) were not purchased outside the United States; (3) were manufactured prior to 2004 (line haul or switch); and (4) will be used in an FRA-funded project that results in a significant reduction in emissions. These are the explicit eligibility conditions named in the notice.
Waiver would last five years
If finalized, the proposed waiver would be effective for five years from the date the final waiver is issued and would apply to awards obligated within that five-year period. Projects awarded within that time could rely on the waiver for eligible used locomotive purchases.
FRA may consider waivers for battery/charging parts
FRA is seeking comment on whether it should consider issuing waivers for other products required to manufacture locomotive batteries or charging stations and equipment due to domestic nonavailability. FRA may propose additional nonavailability waivers if it obtains information supporting them.
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