[Federal Register Volume 89, Number 211 (Thursday, October 31, 2024)]
[Rules and Regulations]
[Pages 86723-86739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24780]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 105

[Docket No. USCG-2022-0052]
RIN 1625-AC80


TWIC--Reader Requirements; Second Delay of Effective Date

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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SUMMARY: The Coast Guard is further delaying the effective date for 
certain facilities affected by the final rule entitled ``Transportation 
Worker Identification Credential (TWIC)--Reader Requirements,'' 
published in the

[[Page 86724]]

Federal Register on August 23, 2016. On March 9, 2020, the Coast Guard 
published a rule, delaying the implementation date to May 8, 2023. In 
December 2022, Congress statutorily extended the earliest 
implementation to no sooner than May 8, 2026. With this final rule, we 
are delaying the implementation date for certain facilities to May 8, 
2029. This rule will not affect facilities receiving vessels 
certificated to carry more than 1,000 passengers.

DATES: This final rule is effective December 2, 2024.

ADDRESSES: To view documents mentioned in this preamble as being 
available in the docket, go to www.regulations.gov, type USCG-2022-0052 
in the search box and click ``Search.'' Next, in the Document Type 
column, select ``Supporting & Related Material.''

FOR FURTHER INFORMATION CONTACT: For information about this document, 
or for technical inquiries, call or email Lieutenant Commander Jeffrey 
Bender, U.S. Coast Guard; telephone 202-372-1114, email 
<a href="/cdn-cgi/l/email-protection#1e547b78786c7b673053305c7b707a7b6c5e6b6d7d7930737772"><span class="__cf_email__" data-cfemail="a4eec1c2c2d6c1dd8ae98ae6c1cac0c1d6e4d1d7c7c38ac9cdc8">[email protected]</span></a>. For general information and press inquiries, 
contact Chief Warrant Officer Brittany Panetta, U.S. Coast Guard; 
telephone 202-372-4449 email <a href="/cdn-cgi/l/email-protection#6e2c1c071a1a0f0017403e403e0f000b1a1a0f2e1b1d0d0940030702"><span class="__cf_email__" data-cfemail="b0f2c2d9c4c4d1dec99ee09ee0d1ded5c4c4d1f0c5c3d3d79eddd9dc">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Abbreviations
II. Basis, Purpose, and Regulatory History
III. Background
IV. Discussion of Comments
V. Discussion of the Rule To Delay the Effective Date
VI. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments
    K. Energy Effects
    L. Technical Standards
    M. Environment

I. Abbreviations

2006 NPRM ``Transportation Worker Identification Credential (TWIC) 
Implementation in the Maritime Sector; Hazardous Materials 
Endorsement for a Commercial Driver's License'' notice of proposed 
rulemaking published May 22, 2006
2007 final rule ``Transportation Worker Identification Credential 
(TWIC) Implementation in the Maritime Sector; Hazardous Materials 
Endorsement for a Commercial Driver's License'' final rule published 
January 25, 2007
2016 TWIC Reader final rule ``Transportation Worker Identification 
Credential (TWIC)-Reader Requirements'' final rule published August 
23, 2016
2020 TWIC Reader Delay final rule ``TWIC-Reader Requirements; Delay 
of Effective Date'' final rule published March 9, 2020
2022 Second Reader Delay NPRM ``Transportation Worker Identification 
Credential (TWIC)-Reader Requirements; Second Delay of Effective 
Date'' notice of proposed rulemaking, published Dec. 6, 2022
2023 Authorization Act James M. Inhofe National Defense 
Authorization Act for Fiscal Year 2023
2023 Conforming Amendment ``Transportation Worker Identification 
Credential--Facility Reader Requirement; Conforming Amendment'' 
final rule, conforming amendments published April 17, 2023
2023 TWIC Reader Delay rule ``TWIC--Reader Requirements; Second 
Delay of Effective Date'' final rule published October 31, 2024.
ANPRM Advance notice of proposed rulemaking
BEA U.S. Bureau of Economic Analysis
BLS Bureau of Labor Statistics
CAP Corrective Action Plan
CDC Certain dangerous cargoes
CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
GDP Gross Domestic Product
HSOAC Homeland Security Operational Analysis Center
MSRAM Maritime Security Risk Analysis Model
MTSA Maritime Transportation Security Act of 2002
NIPA National Income and Product Accounts
NPRM Notice of proposed rulemaking
OMB Office of Management and Budget
PIN Personal identification number
Pre-CA Pre-Conforming Amendment
RA Regulatory Analysis
SAFE Port Act Security and Accountability for Every Port Act of 2006
Sec.  Section
TSA Transportation Security Administration
TSI Transportation security incident
TWIC Transportation Worker Identification Credential
U.S.C. United States Code

II. Basis, Purpose, and Regulatory History

    Pursuant to the Maritime Transportation Security Act of 2002 
(MTSA),\1\ and in accordance with the Security and Accountability for 
Every Port Act of 2006 (SAFE Port Act),\2\ the electronic inspection of 
Transportation Worker Identification Credentials (TWICs) is required 
inside secure areas on certain vessels and facilities in the United 
States. Specifically, the SAFE Port Act requires that the Secretary put 
into effect regulations that require the deployment of electronic 
transportation security card readers.\3\ To implement this requirement 
in an effective manner, the Coast Guard initiated a series of 
regulatory actions, updating its facility and vessel plan requirements 
based on 46 U.S.C. 70103, to implement electronic TWIC inspections at 
certain high-risk vessels and facilities regulated under MTSA.\4\
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    \1\ See Sec. 102 of Public Law 107-295 (November 25, 2002), 
codified as 46 United States Code (U.S.C.) 70105.
    \2\ See Sec. 104 of Public Law 109-347 (October 13, 2006).
    \3\ See 46 U.S.C. 70105(k)(3).
    \4\ See Sec. 102 of Public Law 107-295 (November 25, 2002) 
(Maritime transportation security plans).
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    On May 22, 2006, the Coast Guard and the Transportation Security 
Administration (TSA) jointly published a notice of proposed rulemaking 
(NPRM) titled ``Transportation Worker Identification Credential (TWIC) 
Implementation in the Maritime Sector; Hazardous Materials Endorsement 
for a Commercial Driver's License'' (``2006 NPRM'').\5\ After 
considering comments on the 2006 NPRM, the Coast Guard and TSA 
published the final rule on January 25, 2007, also titled 
``Transportation Worker Identification Credential (TWIC) Implementation 
in the Maritime Sector; Hazardous Materials Endorsement for a 
Commercial Driver's License'' (``2007 final rule'').\6\ The 2007 final 
rule mandated that all persons allowed unescorted access to secure 
areas in MTSA-regulated vessels and facilities were required to possess 
a TWIC card. The rule did not mandate that a TWIC card be read with an 
electronic reader. The card could be verified by visual inspection 
alone, without making use of the electronic security features built 
into the card.
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    \5\ 71 FR 29395.
    \6\ 72 FR 3491.
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    Although the 2006 NPRM proposed certain TWIC reader requirements, 
after reviewing the public comments, the Coast Guard and TSA decided 
not to include those proposed requirements in the 2007 final rule. 
Instead, we addressed them in a separate rulemaking, discussed below, 
and conducted a pilot program to address the feasibility of reader 
requirements before issuing another final rule. For a detailed 
discussion of the public comments to the 2006 NPRM, and our responses 
to them, please refer to the 2007 final rule.
    On March 27, 2009, the Coast Guard published an advance notice of 
proposed rulemaking (ANPRM) on the topic of TWIC reader requirements, 
``Transportation Worker Identification

[[Page 86725]]

Credential (TWIC)-Reader Requirements.'' \7\ The ANPRM discussed 
dividing vessels and facilities into three ``risk groups''--Risk Group 
A for high-risk vessels and facilities, Risk Group B for medium-risk 
vessels and facilities, and Risk Group C for low-risk vessels and 
facilities. The ANPRM also considered different electronic inspection 
requirements for Risk Groups A and B, and no electronic inspection 
requirements for Risk Group C.
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    \7\ 74 FR 13360.
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    On March 22, 2013, we published an NPRM, ``Transportation Worker 
Identification Credential (TWIC)-Reader Requirements'' \8\ that 
proposed the three risk groups (A, B, and C), but limited the proposed 
electronic TWIC inspection requirements to Risk Group A vessels and 
facilities only.
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    \8\ 78 FR 17782.
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    On August 23, 2016, we published a final rule titled 
``Transportation Worker Identification Credential (TWIC)--Reader 
Requirements'' \9\ (``2016 TWIC Reader final rule'') that eliminated 
the three risk group structure and required that high-risk vessels and 
facilities (still referred to as Risk Group A) conduct electronic TWIC 
inspections for all personnel seeking unescorted access to secure areas 
of the vessel or facility. Risk Group A vessels and facilities are 
defined in title 33 of the Code of Federal Regulations (CFR), 
Sec. Sec.  104.263, 105.253, and 106.258.
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    \9\ 81 FR 57652).
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    Congress also passed several laws that impacted implementation of 
the TWIC reader program. On December 16, 2016, the President signed the 
bill titled ``Transportation Security Card Program Assessment.'' \10\ 
This law required the Secretary of the Department of Homeland Security 
(DHS) to commission a report reviewing the security value of the TWIC 
program by (1) evaluating the extent to which the TWIC program 
addresses known or likely security risks in the maritime and port 
environments; (2) evaluating the potential for a non-biometric 
credential alternative; (3) identifying the technology, business 
process, and operational impact of the TWIC card and readers in 
maritime and port environments; (4) assessing the costs and benefits of 
the TWIC program, as implemented; and (5) evaluating the extent to 
which DHS has addressed the deficiencies of the TWIC program previously 
identified by the Government Accountability Office and the DHS Office 
of the Inspector General.
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    \10\ Public Law 114-278, 130 Stat. 1410.
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    On May 15, 2017, the Coast Guard received a petition for rulemaking 
requesting that it revise the 2016 TWIC Reader final rule and impose 
electronic TWIC inspection requirements on only those vessels and 
facilities that engage in the maritime transfer of certain dangerous 
cargoes (CDC).\11\
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    \11\ See docket number USCG-2017-0447, available at https://www.regulations.gov (last visited 04/28/2023).
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    On June 22, 2018, we published a second NPRM, ``TWIC-Reader 
Requirements; Delay of Effective Date'',\12\ which proposed delaying 
the implementation of the 2016 TWIC Reader final rule until August 23, 
2021, for two categories of facilities: (1) facilities that handle CDC 
in bulk, but do not transfer these cargoes from or to a vessel; and (2) 
facilities that receive vessels carrying CDC in bulk, but do not, 
during that vessel-to-facility interface, transfer these bulk cargoes 
from or to those vessels.
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    \12\ 83 FR 29067.
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    On August 2, 2018, the President signed the ``Transportation Worker 
Identification Credential Accountability Act of 2018,'' \13\ which 
prohibited the Coast Guard from implementing the 2016 TWIC Reader final 
rule until at least 60 days after the Coast Guard submits the report on 
the security value of the TWIC program to Congress, as required by the 
2016 bill, ``Transportation Security Card Program Assessment.'' \14\
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    \13\ See section 2 of Public Law 115-230, 132 Stat. 1631.
    \14\ Public Law 114-278, 130 Stat. 1410. The report was 
submitted in August 2019.
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    On March 9, 2020, the Coast Guard published a final rule titled 
``TWIC-Reader Requirements; Delay of Effective Date'' \15\ (``2020 TWIC 
Reader Delay final rule''). The 2020 TWIC Reader Delay final rule 
extended the effective date of the 2016 TWIC Reader final rule, only 
for Risk Group A facilities that handle CDC in bulk, until May 8, 
2023.\16\ The implementation date for facilities designated as Risk 
Group A, because they receive vessels certificated to carry more than 
1,000 passengers, remained unchanged. The 2016 TWIC Reader final rule 
was implemented on June 8, 2020. However, the Coast Guard delayed 
enforcing this regulation until January 1, 2022, because of the global 
COVID-19 pandemic.
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    \15\ 85 FR 13943.
    \16\ While the NPRM proposed limiting the delay only to those 
facilities that handle CDC in bulk, but do not transfer it from or 
to a vessel, and facilities that receive vessels that carry bulk CDC 
but do not transfer bulk CDC from or to the vessel, after 
consideration of public comments, the 2020 TWIC Reader Delay final 
rule delayed implementation for all facilities that handle bulk CDC 
and facilities that receive vessels carrying CDC, including 
facilities that transfer bulk CDC from or to a vessel.
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    In 2020, the Coast Guard commissioned the Homeland Security 
Operational Analysis Center (HSOAC)--operated by the RAND Corporation--
to conduct an analysis. The purpose of the analysis was to (1) identify 
the population of facilities handling CDC impacted by the 2016 TWIC 
Reader final rule; (2) develop a risk-consequence analysis for these 
facilities; and (3) conduct a benefit-cost analysis based on the 
information collected and analyzed during this subsequent study. The 
Coast Guard received the RAND Corporation's analysis on July 29, 2022, 
and is currently evaluating the options for implementing the 2016 TWIC 
Reader final rule. The 2022 RAND Corporation's analysis is included in 
the docket. For instructions on locating the docket, see the ADDRESSES 
section of this preamble.
    While we evaluate the HSOAC analysis, the Coast Guard is continuing 
to delay the original rule's implementation with this final rule to 
avoid the 2016 TWIC Reader final rule going into effect. We are 
delaying that rule's implementation for three categories of facilities: 
(1) facilities that handle CDC in bulk but do not transfer those 
cargoes from or to a vessel; (2) facilities that handle CDC in bulk and 
do transfer those cargoes from or to a vessel; and (3) facilities that 
receive vessels carrying CDC in bulk, but do not, during that vessel-
to-facility interface, transfer those bulk cargoes from or to those 
vessels--to May 8, 2029, to avoid creating confusion and conflicts 
between the 2016 TWIC Reader final rule's original requirements and the 
potential outcomes of the study. The 2016 TWIC Reader final rule 
remains in effect for facilities receiving vessels certificated to 
carry more than 1,000 passengers. This final rule does not affect those 
facilities.
    On December 23, 2022, Congress enacted the James M. Inhofe National 
Defense Authorization Act for Fiscal Year 2023 (``2023 Authorization 
Act'').\17\ Section 11804 of the 2023 Authorization Act directs the 
Secretary of Homeland Security to not implement TWIC reader regulations 
for ``covered facilities'' before May 8, 2026. The 2023 Authorization 
Act identifies covered facilities as facilities that (1) handle CDC in 
bulk and transfer such cargoes from or to a vessel; (2) handle CDC in 
bulk but do not transfer it from or to a vessel; and (3) receive 
vessels carrying CDC in bulk but, during the vessel-to-facility 
interface, do not transfer it from or to the vessel. These three 
categories

[[Page 86726]]

are identical to the facilities identified in 33 CFR 105.253(a)(2) 
through (4).
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    \17\ Public Law 117-263, 136 Stat. 2395.
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    Two weeks before the 2023 Authorization Act was enacted, the Coast 
Guard published an NPRM titled ``Transportation Worker Identification 
Credential (TWIC)-Reader Requirements; Second Delay of Effective 
Date.'' (``2022 Second Reader Delay NPRM'') \18\ In it, we proposed to 
change the implementation dates for the categories in Sec.  
105.253(a)(2) through (4) to May 8, 2026, and requested comments on 
whether we should extend the date as late as May 8, 2029.
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    \18\ 87 FR 74563 (Dec. 6, 2022).
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    On April 17, 2023, consistent with the 2023 Authorization Act, the 
Coast Guard published the ``Transportation Worker Identification 
Credential--Facility Reader Requirement; Conforming Amendment'' (``2023 
Conforming Amendment''), which changed the implementation dates in 33 
CFR 105.253(a)(2) through (4) from May 8, 2023, to May 8, 2026.\19\ The 
2023 Conforming Amendment aligned Coast Guard regulations with the 
Congressionally mandated minimum delay for implementation of TWIC 
readers for the covered facilities.
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    \19\ 88 FR 23349.
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III. Background

    The 2016 TWIC Reader final rule established electronic TWIC reader 
regulations for certain high-risk vessels and MTSA-regulated 
facilities. Shortly after the 2016 TWIC Reader final rule was 
published, the chemical industry expressed concern that the final rule 
significantly expanded the scope of the 2013 NPRM for that rulemaking 
\20\ and requested that the Coast Guard narrow the classes of chemical 
facilities that would be subject to the enhanced security requirements. 
An industry association representing terminal companies nationwide then 
sued DHS in 2017, claiming that the 2016 TWIC Reader final rule 
violated the Administrative Procedure Act.\21\ The court dismissed the 
action, holding that the issue was not ripe for adjudication, because 
Congress passed legislation delaying the implementation of the final 
rule, and there was a likelihood that Congress or the Coast Guard might 
amend or replace the regulation.\22\
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    \20\ 78 FR 17781.
    \21\ Int'l Liquid Terminals Ass'n v. U.S. Dep't of Homeland 
Sec., No. 1:18-cv-00467, 2018 WL 8667001, at *1 (E.D. Va., Sept. 17, 
2018).
    \22\ Id. at *2.
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    In June 2020, DHS published the Coast Guard's corrective action 
plan (CAP) titled ``Corrective Action Plan from the Assessment of the 
Risk Mitigation Value of the Transportation Worker Identification 
Credential.'' \23\ The CAP identified the need to conduct a risk 
analysis over the next 3 years to identify all facilities handling CDC 
and to analyze the need for TWIC readers.
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    \23\ A copy of the study is available in the docket for this 
final rule. Corrective Action Plan from the Assessment of the Risk 
Mitigation Value of the Transportation Worker Identification 
Credential; Report to Congress, June 2020.
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    In September 2020, the Coast Guard commissioned the HSOAC, operated 
by the RAND Corporation, to conduct an analysis to identify the 
population of facilities handling CDC impacted by the 2016 TWIC Reader 
final rule, develop a risk-consequence analysis for these facilities, 
and conduct a benefit-cost analysis.
    In response to the 2023 Authorization Act mandate discussed 
previously, the Coast Guard published the 2023 Conforming Amendment on 
April 17, 2023, which changed the implementation dates in 33 CFR 
105.253(a)(2) through (4) from May 8, 2023, to May 8, 2026.\24\
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    \24\ 88 FR 23349.
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IV. Discussion of Comments

    In response to the 2022 Second Reader Delay NPRM, which proposed a 
delay of 3, 4, 5, or 6 years, the Coast Guard received five public 
comments, two of which were duplicate submissions.\25\ All commenters 
supported the Coast Guard's proposal to delay the implementation of the 
TWIC reader rule. Additionally, all commenters generally supported a 
delay of 6 years.
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    \25\ 87 FR 74563.
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    All comments the Coast Guard received mentioned the 2022 RAND 
Corporation's HSOAC analysis, titled ``Risk-Informed Analysis of 
Transportation Worker Identification Credential (TWIC) Reader 
Requirements,'' and either raised concerns or agreed with the 
conclusions found in the analysis.
    The Coast Guard acknowledges receipt of the HSOAC analysis and 
appreciates the work that was performed to assemble the report. 
However, at present, we are not able to comment on the analysis, as we 
continue to evaluate its findings and recommendations.
    While all commenters generally supported a delay of up to 6 years, 
one commenter thought the current 3-year delay could potentially be 
sufficient for the Coast Guard to review the RAND study, receive 
additional stakeholder input, and promulgate a new TWIC rule consistent 
with the new data. That commenter raised concerns about the uncertainty 
that a lengthy delay may cause for industry, particularly for vendors 
involved in the production and maintenance of TWIC readers. Two 
commenters also suggested areas for further study, including on the 
potential costs of implementing TWIC readers, and proposed several ways 
of amending the 2016 TWIC Reader final rule in light of the RAND study 
findings. While we recognize the industry's need for regulatory 
certainty and clarity, we believe that the delay to May 8, 2029, 
although potentially lengthening a period of uncertainty, is for the 
valid purpose of providing time to determine the best course of action 
with regard to the 2016 TWIC Reader final rule.

V. Discussion of the Rule To Delay the Effective Date

    In this final rule (also referred to as the ``2023 TWIC Reader 
Delay rule''), we delay the effective date for certain facilities to 
May 8, 2029. The 2016 TWIC Reader final rule remains in effect for 
facilities receiving vessels certificated to carry more than 1,000 
passengers, as this final rule does not affect those facilities.
    This final rule delays implementing TWIC readers for (1) facilities 
that handle CDC in bulk but do not transfer those cargoes from or to a 
vessel; (2) facilities that handle CDC in bulk and do transfer those 
cargoes from or to a vessel; and (3) facilities that receive vessels 
carrying CDC in bulk, but do not, during that vessel-to-facility 
interface, transfer those bulk cargoes from or to those vessels. This 
delay allows the Coast Guard to accurately determine the affected 
population through the 2022 RAND Corporation's HSOAC analysis and have 
further time to analyze the potential effectiveness of the TWIC reader 
requirement for these facilities. The HSOAC analysis assesses potential 
risks of CDC, including the types of CDC, population density within a 
certain distance of the facility, and other risk and consequence 
aspects.
    After the Coast Guard completes its review of the HSOAC analysis, 
its conclusions, and its recommendations, we will determine whether any 
future rulemaking regarding the effective date of the 2016 TWIC Reader 
final rule is necessary. If such a rulemaking begins, industry will be 
able to provide further input through notice and comment rulemaking.

VI. Regulatory Analyses

    This final rule further delays the effective date for three types 
of facilities affected by the 2016 TWIC Reader final rule. 
Specifically, these are (1) facilities that handle CDC in bulk, but do 
not transfer those cargoes from or to a

[[Page 86727]]

vessel; (2) facilities that handle CDC in bulk and do transfer those 
cargoes from or to a vessel; and (3) facilities that receive vessels 
carrying CDC in bulk, but do not, during that vessel-to-facility 
interface, transfer those bulk cargoes from or to those vessels. 
Currently, the effective date for these facilities is May 8, 2026.
    Below, we provide an updated regulatory analysis of the 2020 TWIC 
Reader Delay final rule that presents the impacts of delaying the 
effective date of the final rule for the three types of Risk Group A 
facilities defined in the preceding paragraph. For this updated 
analysis, we estimated the costs of this 2023 final rule, the costs of 
the 2023 Conforming Amendment, and the 2020 TWIC Reader Delay final 
rule, utilizing a 13-year analysis period in order to compare them to 
derive the cost savings for our baselines.

A. Regulatory Planning and Review

    Executive Orders 12866 (Regulatory Planning and Review), as amended 
by Executive Order 14094 (Modernizing Regulatory Review), and affirmed 
by Executive Order 13563 (Improving Regulation and Regulatory Review) 
direct agencies to assess the costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasizes the importance 
of quantifying costs and benefits, reducing costs, harmonizing rules, 
and promoting flexibility.
    This final rule is a significant regulatory action under section 
3(f) of Executive Order 12866, as amended by Executive Order 14094, but 
it is not significant under section 3(f)(1). Accordingly, the Office of 
Management and Budget (OMB) has reviewed this final rule. A Regulatory 
Analysis (RA) follows.
    On the 17th of April 2023, the Coast Guard published the 2023 
Conforming Amendment, altering the implementation date for TWIC readers 
in certain risk group A facilities from May 8, 2023, to May 8, 
2026.\26\ This final rule replaces the 2023 Conforming Amendment, which 
is currently in effect, and thus delays implementation until May 8, 
2029. In order to provide a comprehensive estimate of the impacts of 
this rulemaking, the Coast Guard utilizes two baselines, a ``Pre-
Conforming Amendment'' (``Pre-CA'') baseline and a ``No Action'' 
baseline.
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    \26\ Document Citation: 88 FR 23349; Page: 23349-23350 (2 
pages); CFR: 33 CFR 105; Agency/Docket No. USCG-2023-0265 Document 
Number: 2023-08040; Federal Register: Transportation Worker 
Identification Credential-Facility Reader Requirement; Conforming 
Amendment.
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    The No Action baseline represents the current state without this 
rulemaking in other words a world in which the requirements would go 
into effect in 2025. Quantifying costs against the No Action baseline 
includes only costs directly attributable to this rule and excludes any 
costs derived from the 2023 Conforming Amendment. The period of impact 
for costs for the No Action baseline is 2025 to 2034, and any change in 
cost or cost savings can be attributed to the difference between the 
expiration of the 2023 Conforming Amendment and this final rule.
    The Pre-CA baseline captures costs across two different time 
horizons. First, it provides transparency regarding cost savings 
realized from 2022 to 2025 due to the 2023 Conforming Amendment. 
Second, it captures new cost savings between 2025 to 2034 that stem 
from this final rule. The entire period of impact for the Pre-CA 
baseline is 2022 to 2034. We compare the costs attributed to this 
baseline to the costs under the 2020 TWIC Reader Delay final rule, 
resulting in the outlined cost savings. We use an aligned period of 
analysis across both the No Action and Pre-CA baselines to provide a 
consistent comparison for our estimates. Therefore, the period of 
analysis for each baseline in our RA is 2022 to 2034. See Illustration 
1 for a depiction of our baselines, periods of impact, and period of 
analysis.
[GRAPHIC] [TIFF OMITTED] TR31OC24.000


[[Page 86728]]


    In accordance with OMB Circular A-4, we have prepared an accounting 
statement for each baseline showing the classification of impacts 
associated with both the Pre-CA and the No Action baselines. We have 
updated our dollar year to 2023. The No Action baseline can be seen in 
table 1A, while the Pre-CA baseline can be seen in table 1B.

        Table 1A--OMB A-4 Accounting Statement Period of Analysis 2022-2034, 2023 TWIC Reader Delay Rule
                                              [No Action baseline]
                                                 [2023 Dollars]
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
                                                      Primary estimate                       Source
----------------------------------------------------------------------------------------------------------------
                                                    Benefits
----------------------------------------------------------------------------------------------------------------
Annualized monetized benefits................  ..............              7%  RA.
                                               ..............              3%
                                              --------------------------------
Annualized quantified, but unmonetized,                     None.              RA.
 benefits.
                                              --------------------------------
Unquantifiable Benefits......................   For facilities with a delayed  RA.
                                                 compliance, this final rule
                                                will postpone the benefits of
                                                 electronic TWIC inspection.
----------------------------------------------------------------------------------------------------------------
                                                      Costs
----------------------------------------------------------------------------------------------------------------
Annualized, monetized........................  ..............              7%  RA.
Costs (Dollars, Millions)....................  ..............              3%  RA.
                                              --------------------------------
Annualized quantified, but unmonetized, costs               None.              RA.
                                              --------------------------------
Qualitative (un-quantified) cost savings.....               None.              RA.
----------------------------------------------------------------------------------------------------------------
                                                  Cost Savings
----------------------------------------------------------------------------------------------------------------
Annualized monetized costs (Dollars,                  ($4.36)              7%  RA.
 Millions).
Annualized monetized costs (Dollars,                  ($3.14)              3%  RA.
 Millions).
                                              --------------------------------
Annualized quantified, but unmonetized, costs               None.              RA.
                                              --------------------------------
Qualitative (un-quantified) cost savings.....    This final rule delays the    RA.
                                                 cost to retrieve or replace
                                                lost personal identification
                                                 numbers (PINs) to use with
                                                  TWICs for facilities with
                                                   delayed implementation.
----------------------------------------------------------------------------------------------------------------
                                                    Transfers
----------------------------------------------------------------------------------------------------------------
Annualized monetized transfers: ``on budget''          Not calculated.         RA.
                                              --------------------------------
From whom to whom?...........................                                  RA.
                                              --------------------------------
Annualized monetized transfers: ``off-                      None.              .................................
 budget''.
                                              --------------------------------
From whom to whom?...........................               None.              .................................
----------------------------------------------------------------------------------------------------------------
                                         Miscellaneous Analyses/Category
----------------------------------------------------------------------------------------------------------------
Effects on Tribal, State, and/or local                      None.              .................................
 governments.
                                              --------------------------------
Effects on small businesses..................   This final rule does not have  RA.
                                                a significant economic impact
                                                 on a substantial number of
                                                       small entities.
                                              --------------------------------
Effects on wages.............................               None.              .................................
                                              --------------------------------
Effects on growth............................         No determination.        .................................
----------------------------------------------------------------------------------------------------------------


[[Page 86729]]


        Table 1B--OMB A-4 Accounting Statement Period of Analysis 2022-2034, 2023 TWIC Reader Delay Rule
                                                [Pre-CA baseline]
                                                 [2023 Dollars]
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
                                                      Primary estimate                       Source
----------------------------------------------------------------------------------------------------------------
                                                    Benefits
----------------------------------------------------------------------------------------------------------------
Annualized monetized benefits................  ..............              7%  RA.
                                               ..............              3%
                                              --------------------------------
Annualized quantified, but unmonetized,                     None.              RA.
 benefits.
                                              --------------------------------
Unquantifiable Benefits......................   For facilities with a delayed  RA.
                                                 compliance, this final rule
                                                will postpone the benefits of
                                                 electronic TWIC inspection.
----------------------------------------------------------------------------------------------------------------
                                                      Costs
----------------------------------------------------------------------------------------------------------------
Annualized, monetized........................  ..............              7%  RA.
Costs (Dollars, Millions)....................  ..............              3%  RA.
                                              --------------------------------
Annualized quantified, but unmonetized, costs               None.              RA.
                                              --------------------------------
Qualitative (un-quantified) cost savings.....               None.              RA.
----------------------------------------------------------------------------------------------------------------
                                                  Cost Savings
----------------------------------------------------------------------------------------------------------------
Annualized monetized costs (Dollars,                 ($10.49)              7%  RA.
 Millions).
Annualized monetized costs (Dollars,                  ($7.55)              3%  RA.
 Millions).
                                              --------------------------------
Annualized quantified, but unmonetized, costs               None.              RA.
                                              --------------------------------
Qualitative (un-quantified) cost savings.....    This final rule delays the    RA.
                                                 cost to retrieve or replace
                                                lost personal identification
                                                 numbers (PINs) to use with
                                                  TWICs for facilities with
                                                   delayed implementation.
----------------------------------------------------------------------------------------------------------------
                                                    Transfers
----------------------------------------------------------------------------------------------------------------
Annualized monetized transfers: ``on budget''          Not calculated.         RA.
                                              --------------------------------
From whom to whom?...........................                                  RA.
                                              --------------------------------
Annualized monetized transfers: ``off-                      None.              .................................
 budget''.
                                              --------------------------------
From whom to whom?...........................               None.              .................................
----------------------------------------------------------------------------------------------------------------
                                         Miscellaneous Analyses/Category
----------------------------------------------------------------------------------------------------------------
Effects on Tribal, State, and/or local                      None.              .................................
 governments.
                                              --------------------------------
Effects on small businesses..................   This final rule does not have  RA.
                                                a significant economic impact
                                                 on a substantial number of
                                                       small entities.
                                              --------------------------------
Effects on wages.............................               None.              .................................
                                              --------------------------------
Effects on growth............................         No determination.        .................................
----------------------------------------------------------------------------------------------------------------

    This final rule further delays the effective date for certain 
facilities--that is, all facilities that handle CDC in bulk--affected 
by the 2016 TWIC Reader final rule. The current effective date of the 
2016 TWIC Reader final rule for these facilities is May 8, 2026. This 
was established by the 2023 Conforming Amendment (88 FR 23349), which 
changed the implementation dates in 33 CFR 105.253(a)(2) through (4) 
from May 8, 2023 to May 8, 2026. With this final rule, the 2023 TWIC 
Reader Delay rule, we are delaying the effective date for these 
facilities for 3 years, from the 2023 Conforming Amendment expiration 
date of May 8, 2026, to May 8, 2029.
    This final rule delays the effective date of the 2020 TWIC Reader 
Delay final rule by an additional 3 years (until May 8, 2029) for (1) 
facilities that handle CDC in bulk but do not transfer it from or to a 
vessel; (2) facilities that handle CDC in bulk and do transfer those 
cargoes from or to a vessel; and (3) facilities that receive vessels 
carrying

[[Page 86730]]

bulk CDC, but, during that vessel-to-facility interface, do not 
transfer bulk CDC from or to those vessels. This final rule does not 
modify any of the regulatory requirements under the 2016 TWIC Reader 
final rule. We did not revise our fundamental methodologies for the 
calculation of the costs and cost savings from a delay in the final 
rule's effective date for certain facilities. Nor did we revise key 
assumptions from the 2016 TWIC Reader final rule's RA, as there were no 
comments from the public regarding the methodology during the NPRM for 
that rule.\27\
---------------------------------------------------------------------------

    \27\ The 2016 TWIC Reader final rule's RA is available in the 
docket; docket number USCG-2007-28915-0231.
---------------------------------------------------------------------------

    In the 2016 TWIC Reader final rule's RA, we estimated that 525 
facilities and 1 vessel out of the MTSA-regulated entities (13,825 
vessels and more than 3,270 facilities) would have to comply with that 
final rule's electronic TWIC inspection requirements, using the 
Maritime Security Risk Analysis Model's (MSRAM's) risk-based tiered 
approach.\28\ Using data from MSRAM, we estimate that this final rule 
delays the implementation of the 2016 TWIC Reader final rule for 370 of 
the 525 affected Risk Group A facilities by 3 years, while the 
remaining 155 facilities and 1 vessel were required to implement the 
2016 TWIC Reader final rule requirements by June 8, 2020. While the 
rule was implemented June 8, 2020, the Coast Guard delayed the 
enforcement of requirements until January 1, 2022, due to the global 
COVID-19 pandemic. These 370 facilities are those that (1) handle bulk 
CDC, but do not transfer it from or to a vessel; (2) handle CDC in bulk 
and do transfer those cargoes from or to a vessel; and (3) receive 
vessels carrying bulk CDC but, during the vessel-to-facility interface, 
do not transfer the bulk CDC from or to those vessels. We did not 
include these facilities in our MSRAM risk analysis for the 2016 TWIC 
Reader final rule or in its RA, because we could not determine the 
number of those facilities at the time.
---------------------------------------------------------------------------

    \28\ See table 2.8 on page 26 of the 2016 TWIC Reader final 
rule's regulatory analysis for the estimate of 525 facilities, and 
table 2.1 on page 23 for the estimate of 1 vessel (In the docket, 
number USCG-2007-28915-0231).
---------------------------------------------------------------------------

    Varying estimates of the number of facilities that meet the 
criteria, and that fall into the covered population category, have been 
provided to the Coast Guard by the 2022 RAND Corporation's HSOAC 
analysis to improve the risk methodology and determine the new risk 
groups. The population numbers are currently under internal review 
while we assess an accurate final count of the population for future 
regulatory action. The final count of facilities will most likely be 
similar, but not identical to the cited 370 statistic. Therefore, the 
Coast Guard is using its discretion to delay the implementation of the 
2016 TWIC Reader final rule on those facilities, pending a final 
facility count. Future regulatory analyses will update these estimates, 
once the Coast Guard has assessed which CDC facilities fall within the 
level or risk that is deemed appropriate to require a TWIC reader. If 
such a rulemaking is begun, industry will be able to provide further 
input through notice and comment rulemaking.
    We updated our final rule cost estimates in the NPRM preceding this 
final rule,\29\ from 2012 to 2023, based on Gross Domestic Product 
(GDP) deflator data from the U.S. Bureau of Economic Analysis 
(BEA).\30\ The GDP deflator is a measure of the change in price of 
domestic goods and services purchased by consumers, businesses, and the 
Government.
---------------------------------------------------------------------------

    \29\ 87 FR 74563.
    \30\ For consistency across regulatory analyses, we are using 
the annual Implicit Price Deflators for Gross Domestic Product (the 
BEA's National Income and Product Accounts (NIPA) Table 1.1.9) 
values using 2023, accessed by the Coast Guard through the BEA's 
publicly available data sets. The NIPA tables can be found at 
https://apps.bea.gov/iTable/index_nipa.cfm (last visited 04/28/
2024).
---------------------------------------------------------------------------

    We do not anticipate any new costs to industry when this final rule 
is implemented, because this final rule does not change the 
applicability of the 2020 TWIC Reader Delay final rule or any 
subsequent amendments thereof. This final rule results in no other 
changes to the 2020 TWIC Reader Delay final rule. There is no impact to 
the 1 previously affected vessel and 155 MTSA facilities that complied 
with the 2020 TWIC Reader Delay final rule as of June 8, 2020. Total 
cost figures for each prior rule can be found in table 2A, which 
summarizes the costs of the 2020 TWIC Reader Delay final rule, the 2023 
Conforming Amendment, and this final rule.

                                           Table 2A--Summary of Rules
                                                 [2023 Dollars]
----------------------------------------------------------------------------------------------------------------
                                        2020 TWIC Reader Delay      2023 Conforming       2023 TWIC Reader Delay
               Category                       final rule               Amendment                   rule
----------------------------------------------------------------------------------------------------------------
                                       (X)....................  (Y)....................  (Z)
----------------------------------------------------------------------------------------------------------------
Period of Impact & Analysis..........  Costs begin to be        Costs begin to be        Represents an
                                        incurred by entities     incurred by entities     additional delay of 3
                                        in 2022, and the         in 2025, and the         years, effective post
                                        analysis is from 2022-   analysis is from 2022-   2023 Conforming
                                        2034 Discounted costs    2034.                    Amendment. Costs begin
                                        diverge from the 2020                             to be incurred by
                                        TWIC Reader Delay                                 entities in 2028, and
                                        final rule due to                                 the analysis is from
                                        modification of                                   2022-2034.
                                        discounting schedule.
                                        Total costs differ due
                                        to extended period of
                                        analysis.

[[Page 86731]]

 
Affected Population..................  370 facilities that      370 facilities that      370 facilities that
                                        handle bulk CDC, but     handle bulk CDC, but     handle bulk CDC, but
                                        do not transfer it       do not transfer it       do not transfer it
                                        from or to a vessel,     from or to a vessel,     from or to a vessel,
                                        and that handle bulk     and that handle bulk     and that handle bulk
                                        CDC and do transfer      CDC and do transfer      CDC and do transfer
                                        such cargoes from or     such cargoes from or     such cargoes from or
                                        to a vessel (to comply   to a vessel (to comply   to a vessel (to comply
                                        by May 8, 2023). The     by May 8, 2026). The     by May 8, 2029). The
                                        rule also applies to     rule also applies to     rule also applies to
                                        facilities that          facilities that          facilities that
                                        receive vessels          receive vessels          receive vessels
                                        carrying bulk CDC,       carrying bulk CDC,       carrying bulk CDC,
                                        but, during that         but, during that         but, during that
                                        vessel-to-facility       vessel-to-facility       vessel-to-facility
                                        interface, do not        interface, do not        interface, do not
                                        transfer bulk CDC from   transfer bulk CDC from   transfer bulk CDC from
                                        or to the vessel.        or to the vessel.        or to the vessel.
                                                                                          However, the number of
                                                                                          these facilities
                                                                                          cannot be determined
                                                                                          at this time. The
                                                                                          number of these
                                                                                          facilities is
                                                                                          currently under review
                                                                                          by the Coast Guard
                                                                                          and, if warranted,
                                                                                          will be published in a
                                                                                          future NPRM, which
                                                                                          would revise risk
                                                                                          groups to comply by
                                                                                          May 8, 2029.
Costs to Industry and Government       Industry: $23.05         Industry: $16.92         Industry: $12.56
 (Dollars, millions, 7% discount        (annualized).            (annualized).            (annualized).
 rate). Annualized.                    Government: $0.008       Government: $0.008       Government: $0.006
                                        (annualized).            (annualized).            (annualized).
                                       Both: $23.06             Both: $16.93             Both: $12.57
                                        (annualized).            (annualized).            (annualized).
Costs to Industry and Government       Industry: $192.63 (13-   Industry: $141.42 (13-   Industry: $104.98 (13-
 (Dollars, millions, 7% discount        year).                   year).                   year).
 rate). Over 13-year analysis period.  Government: $0.078 (13-  Government: $0.063 (13-  Government: $0.052 (13-
                                        year).                   year).                   year).
                                       Both: $192.71 (13-year)  Both: $141.48 (13-year)  Both: $105.03 (13-
                                                                                          year).
Costs (Qualitative)..................  Time to retrieve or      Delayed enhanced access  Delays enhanced access
                                        replace lost PINs for    control and security     control and security
                                        use with TWICs.          for the facilities       for the facilities
                                                                 with delayed             with delayed
                                                                 implementation.          implementation.
Benefits (Qualitative)...............  Enhanced access control  Time to retrieve or      This final rule delays
                                        and security at U.S.     replace lost PINs for    the cost to retrieve
                                        maritime facilities      use with TWICs.          or replace lost PINs
                                        and on board U.S.-                                for use with TWICs for
                                        flagged vessels.                                  facilities with
                                                                                          delayed
                                                                                          implementation.
                                       Reduction of human       Reduction of human       Delays the reduction of
                                        error when checking      error when checking      human error when
                                        identification and       identification and       checking
                                        manning access points.   manning access points.   identification and
                                                                                          manning access points
                                                                                          for the facilities
                                                                                          with delayed
                                                                                          implementation.
----------------------------------------------------------------------------------------------------------------

    This final rule results in cumulative cost savings to industry and 
to the Government of $36.45 million (discounted at 7 percent) over a 
13-year period of analysis ($105.03 million-$141.48 million). At a 7-
percent discount rate, we estimate the total annualized cost savings to 
be $4.36 million ($12.57 million-$16.93 million). These numbers can be 
seen under the column for the No Action baseline in table 2B. 
Similarly, when accounting for both the savings of the 2023 Conforming 
Amendment and this final rule, the total cost savings can be seen in 
the Pre-CA baseline in table 2B.

  2B--Summary of Costs (Cost Savings) for No Action and Pre-CA Baseline
------------------------------------------------------------------------
    Total cost savings  (2023     No Action baseline  Pre-CA baseline  =
       dollars, millions)               = Z - Y              Z - X
------------------------------------------------------------------------
Annualized (7% discount rate)...  Industry: ($4.36)   Industry: ($10.49)
                                   (annualized)        (annualized).
                                  Government:         Government:
                                   ($0.001)            ($0.003)
                                   (annualized).       (annualized).
                                  Total: ($4.36)      Total: ($10.49)
                                   (annualized).       (annualized).
13-Year (7% discount rate)......  Industry: ($36.44)  Industry: ($87.66)
                                   (13-year)           (13-year).
                                  Government:         Government:
                                   ($0.01) (13-year).  ($0.02) (13-
                                  Total: ($36.45)      year).
                                   (13-year).         Total: ($87.68)
                                                       (13-year).
Annualized (3% discount rate)...  Industry: ($3.14)   Industry: ($7.55)
                                   (annualized)        (annualized).
                                  Government:         Government:
                                   ($0.001)            ($0.001)
                                   (annualized).       (annualized).
                                  Total: ($3.14)      Total: ($7.55)
                                   (annualized).       (annualized).
13-Year (3% discount rate)......  Industry: ($33.41)  Industry: ($80.31)
                                   (13-year)           (13-year).
                                  Government:         Government:
                                   ($0.01) (13-year).  ($0.01) (13-
                                  Total: ($33.41)      year).
                                   (13-year).         Total: ($80.32)
                                                       (13-year).
------------------------------------------------------------------------
Note: Totals may not sum due to rounding.


[[Page 86732]]

Methodology
Final Rule Costs Inflated to 2023 Dollars and Adjusted for Discounting
    Although we have updated our analysis from the 2016 NPRM for this 
rulemaking to reflect newer inflation and population figures, we did 
not modify the methodology of our primary regulatory analyses.
    We used an inflation factor from the annual GDP deflator data. We 
calculated the inflation factor of 1.312 by modifying the deflator base 
year to 2023 (GDP deflator = 100 at 2023 prices) and dividing the 
annual 2023 index number (100) by the annual 2012 index number (76.2). 
We then applied this inflation factor to the costs for vessels and 
additional costs, which include additional delay costs, travel costs, 
and the cost to replace TWIC readers that fail.
    For facilities, we applied this inflation factor to the total cost-
by-cost component, because this final rule applies to only some of 
these cost elements. Facility costs include capital costs, maintenance 
costs, and operational costs. Capital costs consist of the cost to 
purchase and install TWIC readers, as well as the cost to fully replace 
TWIC readers 5 years after the original installation. Maintenance costs 
account for the costs to maintain TWIC readers every year after the 
original installation. Operational costs include costs that occur only 
at the time of the TWIC reader installation, such as those for amending 
security plans, creating a recordkeeping system, and initial training. 
Operational costs also include ongoing costs, administrative duties, 
including downloading the canceled card list, and ongoing annual 
training.
    For wages, we have updated rates used in the calculations of costs 
to the most recent available data for the labor category and industry. 
We obtained wages from the Bureau of Labor Statistics (BLS) 
Occupational Employment and Wage Estimates, and then we calculated 
burdened wages (a wage's total cost to the employer) by utilizing the 
BLS Employer Costs of Employee Compensation multipliers relevant to the 
job type and industry.
    Due to the extended timeframe of analysis, the total undiscounted 
costs for the 2023 TWIC Reader Delay rule have increased over those 
presented in the original publication. We have updated the discounting 
methodology for this rule, changing our base year for discounting to 
2023; thus, the discounted totals presented for the 2020 TWIC Reader 
Delay final rule also diverge from the original publication.
Final Rule Costs
    This final rule delays the effective date of the 2020 TWIC Reader 
delay final rule by an additional 3 years (until May 8, 2029) for 370 
facilities that (1) handle bulk CDC but do not transfer it from or to a 
vessel; (2) facilities that handle CDC in bulk, and do transfer those 
cargoes from or to a vessel; and (3) an undetermined number of 
facilities that receive vessels carrying bulk CDC, but do not transfer 
it from or to the vessel during that vessel-to-facility interface. To 
allow for a consistent comparison between the baseline estimates and 
the costs of this rule, we maintain the assumption from the RA in the 
2016 TWIC Reader final rule that 50 percent of facilities will comply 
for each of the 2 final years preceding the final implementation date. 
Therefore, for this final rule, we assume that 50 percent of facilities 
with a 3-year implementation delay will comply in May of Year 2028, and 
50 percent of facilities with a 6-year implementation delay will comply 
in Year 2029. We maintain this assumption to provide a consistent 
comparison between the baseline cost estimates presented in the 2016 
TWIC Reader final rule, and the costs of this final rule.
    The costs are separated into three categories (undiscounted 2023 
dollars): (1) capital costs of which the initial average capital cost 
per facility will be $322,410; (2) maintenance costs, of which the 
average annual cost incurred per facility for the first full year of 
operation following TWIC implementation, will be $4,970; and (3) 
operational costs, which on average per facility is $6,450 for the 
first year and, will be $2,173 reoccurring from the second year on. The 
total undiscounted costs for the first year of operation, on average, 
per facility, will be the sum of the capital costs and operational 
costs totaling $328,950. Ongoing annual costs for maintenance and 
operations will be $7,143 ($4,970 + $2,173).
    After the initial 5-year period of use, TWIC readers may need to be 
replaced. Our assumption is that all readers will need to be replaced 
at 5-year intervals, although it is likely that this will not be the 
case, and that only a percentage of readers will need replacement. The 
average cost per facility to replace its TWIC readers is $5,248.
    To estimate the capital costs in a given year, we multiplied the 
total input capital costs for all facilities by the percentage of 
facilities incurring costs each year. We estimated operational costs 
for periods after the first year in a similar manner, multiplying total 
operational costs by the percentage of facilities complying in a given 
year. Because maintenance costs are not incurred until the year after 
the TWIC readers are installed, we calculated the final rule 
maintenance costs each year by multiplying the total input costs for 
all facilities by the percentage of facilities complying in the 
previous year. For example, the first year of implementation costs 
(Year 2028 in table 3) are capital costs plus operational costs 
(($322,410 + $6,540) x 185) = $60,855,928 (2023 dollars). Table 3 
presents the total cost to facilities under this final rule, and the 
preceding rules.

          Table 3--Total Cost for Facilities Under 2023 TWIC Reader Delay Rule 2023 Conforming Amendment, and 2020 TWIC Reader Delay Final Rule
                                                                [Millions, 2023 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2023 TWIC Reader Delay Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year                                                           Number of    Total number         Capital     Maintenance     Operational    Undiscounted
                                                          new facilities   of facilities           costs           costs           costs           total
                                                               complying                                                                            (A1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022.................................................                  0               0           $0.00           $0.00           $0.00           $0.00
2023.................................................                  0               0            0.00            0.00            0.00            0.00
2024.................................................                  0               0            0.00            0.00            0.00            0.00
2025.................................................                  0               0            0.00            0.00            0.00            0.00
2026.................................................                  0               0            0.00            0.00            0.00            0.00
2027.................................................                  0               0            0.00            0.00            0.00            0.00
2028.................................................                185             185           59.65            0.00            1.21           60.86

[[Page 86733]]

 
2029.................................................                185             370           59.65            0.92            1.61           62.18
2030.................................................                  0             370            0.00            1.84            0.80            2.64
2031.................................................                  0             370            0.00            1.84            0.80            2.64
2032.................................................                  0             370            0.00            1.84            0.80            2.64
2033.................................................                  0             370            9.19            1.84            0.80           11.84
2034.................................................                  0             370            9.19            1.84            0.80           11.84
                                                      --------------------------------------------------------------------------------------------------
    Total............................................  .................  ..............          137.68           10.11            6.84          154.64
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                2023 Conforming Amendment
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year                                                           Number of    Total number         Capital     Maintenance     Operational    Undiscounted
                                                          new facilities   of facilities           costs           costs           costs           total
                                                               complying                                                                            (A2)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022.................................................                  0               0           $0.00           $0.00           $0.00           $0.00
2023.................................................                  0               0            0.00            0.00            0.00            0.00
2024.................................................                  0               0            0.00            0.00            0.00            0.00
2025.................................................                185             185           59.65            0.00            1.21           60.86
2026.................................................                185             370           59.65            0.92            1.61           62.18
2027.................................................                  0             370            0.00            1.84            0.80            2.64
2028.................................................                  0             370            0.00            1.84            0.80            2.64
2029.................................................                  0             370            0.00            1.84            0.80            2.64
2030.................................................                  0             370            9.19            1.84            0.80           11.84
2031.................................................                  0             370            9.19            1.84            0.80           11.84
2032.................................................                  0             370            0.00            1.84            0.80            2.64
2033.................................................                  0             370            0.00            1.84            0.80            2.64
2034.................................................                  0             370            0.00            1.84            0.80            2.64
                                                      --------------------------------------------------------------------------------------------------
    Total............................................  .................  ..............          137.68           15.63            9.25          162.57
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           2020 TWIC Reader Delay Final Rule *
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year                                                           Number of    Total number         Capital     Maintenance     Operational    Undiscounted
                                                          new facilities   of facilities           costs           costs           costs           total
                                                               complying                                                                            (A3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022.................................................                185             185           59.65            0.00            1.21           60.86
2023.................................................                185             370           59.65            0.92            1.61           62.18
2024.................................................                  0             370            0.00            1.84            0.80            2.64
2025.................................................                  0             370            0.00            1.84            0.80            2.64
2026.................................................                  0             370            0.00            1.84            0.80            2.64
2027.................................................                  0             370            9.19            1.84            0.80           11.84
2028.................................................                  0             370            9.19            1.84            0.80           11.84
2029.................................................                  0             370            0.00            1.84            0.80            2.64
2030.................................................                  0             370            0.00            1.84            0.80            2.64
2031.................................................                  0             370            0.00            1.84            0.80            2.64
2032.................................................                  0             370            9.19            1.84            0.80           11.84
2033.................................................                  0             370            9.19            1.84            0.80           11.84
2034.................................................                  0             370            0.00            1.84            0.80            2.64
                                                      --------------------------------------------------------------------------------------------------
    Total............................................  .................  ..............          156.07           21.15           11.67          188.88
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.
* Discounted costs and cost savings totals of 2020 TWIC Reader delay final rule presented here diverge from numbers published in rule, due to
  discounting schedule change and analysis timeframe.

    Table 4 summarizes the total costs to industry of this final rule 
in 2023 dollars. This final rule does not impact the compliance 
schedule for vessels; therefore, these costs remain unchanged. We 
calculated the additional costs by multiplying the totals in table 3 by 
the percentage of facilities complying within a given year and phasing 
them in over 2 years. We estimate the total costs to industry in this 
final rule to be $104.98 million over 13 years, and for the annualized 
cost to industry to be $12.56 million at a 7-perent discount rate.

[[Page 86734]]



             Table 4--Total Industry Cost for 2023 TWIC Reader Delay Rule, 2023 Conforming Amendment, and 2020 TWIC Reader Delay Final Rule
                                                                [Millions, 2023 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year                                                          Facility          Vessel      Additional      Undiscounted              7%              3%
                                                                                                 costs
                                                                  (A1)                          ~ (B1)    C1 = (A1 + B1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2023 TWIC Reader Delay Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022..................................................           $0.00           $0.00           $0.00             $0.00           $0.00           $0.00
2023..................................................            0.00            0.00            0.00              0.00            0.00            0.00
2024..................................................            0.00            0.00            0.00              0.00            0.00            0.00
2025..................................................            0.00            0.00            0.00              0.00            0.00            0.00
2026..................................................            0.00            0.00            0.00              0.00            0.00            0.00
2027..................................................            0.00            0.00            0.00              0.00            0.00            0.00
2028..................................................           60.86            0.00            2.78             63.63           39.63           51.74
2029..................................................           62.18            0.00            5.56             67.73           39.42           53.47
2030..................................................            2.64            0.00            5.56              8.20            4.46            6.28
2031..................................................            2.64            0.00            5.56              8.20            4.17            6.10
2032..................................................            2.64            0.00            5.56              8.20            3.90            5.92
2033..................................................           11.84            0.00            3.77             15.61            6.93           10.95
2034..................................................           11.84            0.00            3.77             15.61            6.48           10.63
                                                       -------------------------------------------------------------------------------------------------
    Total.............................................          154.64            0.00           32.54            187.18          104.98          145.09
                                                       -------------------------------------------------------------------------------------------------
        Annualized....................................  ..............  ..............  ..............             14.40           12.56           13.64
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                2023 Conforming Amendment
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year                                                          Facility          Vessel      Additional      Undiscounted              7%              3%
                                                                                               costs *
                                                                  (A2)                            (B2)    C2 = (A2 + B2)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022..................................................           $0.00           $0.00           $0.00             $0.00           $0.00           $0.00
2023..................................................            0.00            0.00            0.00              0.00            0.00           $0.00
2024..................................................            0.00            0.00            0.00              0.00            0.00            0.00
2025..................................................           60.86            0.00            2.78             63.63           48.55           56.54
2026..................................................           62.18            0.00            5.56             67.73           48.29           58.43
2027..................................................            2.64            0.00            5.56              8.20            5.46            6.87
2028..................................................            2.64            0.00            5.56              8.20            5.11            6.67
2029..................................................            2.64            0.00            5.56              8.20            4.77            6.47
2030..................................................           11.84            0.00            5.56             17.39            9.46           13.33
2031..................................................           11.84            0.00            5.56             17.39            8.84           12.94
2032..................................................            2.64            0.00            5.56              8.20            3.90            5.92
2033..................................................            2.64            0.00            5.56              8.20            3.64            5.75
2034..................................................            2.64            0.00            5.56              8.20            3.40            5.58
                                                       -------------------------------------------------------------------------------------------------
    Total.............................................          162.57            0.00           52.78            215.35          141.42          178.50
                                                       -------------------------------------------------------------------------------------------------
        Annualized....................................  ..............  ..............  ..............             16.57           16.92           16.78
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           2020 TWIC Reader Delay Final Rule *
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year                                                          Facility          Vessel      Additional      Undiscounted              7%              3%
                                                                                                 costs
                                                                  (A3)                           ~(B3)    C3 = (A3 + B3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022..................................................          $60.86           $0.00           $2.78            $63.63          $59.47          $61.78
2023..................................................           62.18            0.00            5.56             67.73           59.16           63.85
2024..................................................            2.64            0.00            5.56              8.20            6.69            7.50
2025..................................................            2.64            0.00            5.56              8.20            6.25            7.28
2026..................................................            2.64            0.00            5.56              8.20            5.85            7.07
2027..................................................           11.84            0.00            5.56             17.39           11.59           14.57
2028..................................................           11.84            0.00            5.56             17.39           10.83           14.14
2029..................................................            2.64            0.00            5.56              8.20            4.77            6.47
2030..................................................            2.64            0.00            5.56              8.20            4.46            6.28
2031..................................................            2.64            0.00            5.56              8.20            4.17            6.10
2032..................................................           11.84            0.00            5.56             17.39            8.26           12.57
2033..................................................           11.84            0.00            5.56             17.39            7.72           12.20
2034..................................................            2.64            0.00            5.56              8.20            3.40            5.58
                                                       -------------------------------------------------------------------------------------------------
    Total.............................................          188.88            0.00           69.45            258.33          192.63          225.40
                                                       -------------------------------------------------------------------------------------------------
        Annualized....................................  ..............  ..............  ..............             19.87           23.05           21.19
--------------------------------------------------------------------------------------------------------------------------------------------------------
* These costs include additional delay, travel, and TWIC replacement costs due to TWIC failures.

[[Page 86735]]

 
~ Discounted costs and cost savings totals of 2020 TWIC Reader delay final rule presented here diverge from numbers published in rule, due to
  discounting schedule change and analysis timeframe.
Note: Totals may not sum due to rounding.

    Table 5A presents the estimated change in total costs to industry 
from this final rule further delaying the implementation of the 2020 
TWIC Reader delay final rule by an additional 3 years (until May 8, 
2029) for (1) facilities that handle bulk CDC but do not transfer it 
from or to a vessel; (2) facilities that handle CDC in bulk and do 
transfer those cargoes from or to a vessel; and (3) facilities that 
receive vessels carrying bulk CDC, but do not transfer it from or to 
the vessel during that vessel-to-facility interface. The costs of this 
final rule have been compared to the costs displayed in tables 3 and 4 
for the 2023 Conforming Amendment. The resulting difference is what 
this final rule estimates as the cost savings to industry from this 
final rule's promulgation, represented by our No Action baseline. We 
estimate, at a 7-percent discount rate, that the annualized cost 
savings to industry to be $4.36 million, and the total cost savings to 
be $36.44 million over 13 years for our No Action baseline.

                  Table 5A--Total Change to Industry Costs From the 2023 TWIC Reader Delay Rule
                                              [No Action baseline]
                                            [Millions, 2023 dollars]
----------------------------------------------------------------------------------------------------------------
                                                          Undiscounted (=
                          Year                                 C1-C2)               7%                 3%
----------------------------------------------------------------------------------------------------------------
                                      Change in Costs (No Action Baseline)
----------------------------------------------------------------------------------------------------------------
2022...................................................              $0.00              $0.00              $0.00
2023...................................................               0.00               0.00               0.00
2024...................................................               0.00               0.00               0.00
2025...................................................            (63.63)            (48.55)            (56.54)
2026...................................................            (67.73)            (48.29)            (58.43)
2027...................................................             (8.20)             (5.46)             (6.87)
2028...................................................              55.44              34.52              45.07
2029...................................................              59.53              34.65              47.00
2030...................................................             (9.19)             (5.00)             (7.05)
2031...................................................             (9.19)             (4.67)             (6.84)
2032...................................................               0.00               0.00               0.00
2033...................................................               7.41               3.29               5.20
2034...................................................               7.41               3.07               5.04
                                                        --------------------------------------------------------
    Total..............................................            (28.17)            (36.44)            (33.41)
                                                        --------------------------------------------------------
        Annualized.....................................  .................             (4.36)             (3.14)
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

    Table 5B presents the estimated change in total costs to industry 
between this final rule and the 2020 TWIC Reader Delay final rule, in 
addition to the already existing 3-year extension from the 2023 
Conforming Amendment, for a total delay of 6 years. The costs of this 
final rule have been compared to the updated values for the 2020 TWIC 
Reader Delay final rule, and the resulting difference is the cost 
saving estimates to industry from this final rule's promulgation. From 
the cumulative impacts of the 2023 Conforming Amendment and this final 
rule, we estimate an annualized cost savings to industry of $10.49 
million, for over 13 years at a 7-percent discount rate, for a total 
cost savings of $87.66 million for our Pre-CA baseline.

                  Table 5B--Total Change to Industry Costs From the 2023 TWIC Reader Delay Rule
                                                [Pre-CA baseline]
                                            [Millions, 2023 dollars]
----------------------------------------------------------------------------------------------------------------
                                                          Undiscounted (=
                          Year                                 C1-C3)               7%                 3%
----------------------------------------------------------------------------------------------------------------
                                        Change in Costs (Pre-CA Baseline)
----------------------------------------------------------------------------------------------------------------
2022...................................................           ($63.63)           ($59.47)           ($61.78)
2023...................................................            (67.73)            (59.16)            (63.85)
2024...................................................             (8.20)             (6.69)             (7.50)
2025...................................................             (8.20)             (6.25)             (7.28)
2026...................................................             (8.20)             (5.85)             (7.07)
2027...................................................            (17.39)            (11.59)            (14.57)
2028...................................................              46.24              28.80              37.60
2029...................................................              59.53              34.65              47.00
2030...................................................               0.00               0.00               0.00
2031...................................................               0.00               0.00               0.00
2032...................................................             (9.19)             (4.37)             (6.64)
2033...................................................             (1.79)             (0.79)             (1.25)

[[Page 86736]]

 
2034...................................................               7.41               3.07               5.04
                                                        --------------------------------------------------------
    Total..............................................            (71.15)            (87.66)            (80.31)
                                                        --------------------------------------------------------
        Annualized.....................................  .................            (10.49)             (7.55)
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Qualitative Costs
    We have provided a brief description of the qualitative costs in 
table 2A. This final rule delays the cost to retrieve or replace lost 
PINs for use with TWICs for the facilities with delayed implementation.
Government Costs
    We expect that this final rule will generate a cost savings to the 
Government from delaying the review of the revised security plans for 
370 Risk Group A facilities that (1) handle bulk CDC, but do not 
transfer it from or to a vessel; (2) handle CDC in bulk and do transfer 
those cargoes from or to a vessel; and (3) receive vessels carrying 
bulk CDC but, during the vessel-to-facility interface, do not transfer 
the bulk CDC from or to those vessels. There is no change in cost to 
the Government resulting from TWIC inspections, because inspections are 
already required under MTSA, and the TWIC reader requirements do not 
modify these requirements. As such, there is no additional cost to the 
Government.
    To estimate the cost to the Government, we followed the same 
approach as the industry cost analysis and adjusted the cost estimate 
presented in the 2016 TWIC Reader final rule's RA from 2012 dollars to 
2023 dollars for non-wage inputs. For the Government analysis, we used 
the 2022 hourly standard in Government wage rate for an E-5 level staff 
member, $58 per hour, from Commandant Instruction 7310.1W: Reimbursable 
Standard Rates, in place of the 2012 wage of $49 per hour; these are 
the most current values that the Coast Guard has been cleared to use 
for the RA.\31\ Due to the change in wage rates, we have included the 
changed values to the Government's cost schedules for all following 
tables. We followed the calculations outlined in the 2016 TWIC Reader 
final rule's RA to estimate an undiscounted cost to the Government of 
$42,920 in years 2028 and 2029 ($58 x 4 hours per review x 185 plans), 
which would result from not extending the delay of the 2020 TWIC Reader 
delay final rule.
---------------------------------------------------------------------------

    \31\ Because the Coast Guard is not delaying the implementation 
schedule for vessels, this final rule has no impact on the costs 
associated with vessel security plans (having already gone into 
effect and not included in this population); therefore, we did not 
include those costs in this RA.
---------------------------------------------------------------------------

    Table 6 presents the cost schedule under this final rule, the 
previous 2023 Conforming Amendment, and the 2020 TWIC Reader delay 
final rule. We estimated the annualized Government cost to be $6,187 at 
a 7-percent discount rate, for a total of $51,708 over 13 years, which 
can be seen under column group A. For each of these rules, costs 
accumulate over a 2-year period for an undiscounted cost of $42,920, 
and, in the case of this final rule, occur for the years of 2028 and 
2029. The undiscounted costs among all three estimates are the same, 
only differing in their discounting. To estimate Government costs in 
Year 2028 and Year 2029, we used the same approach as the above cost 
estimates.

Table 6--Total Government Cost Under the 2023 TWIC Reader Delay Rule, 2023 Conforming Amendment, and 2020 TWIC Reader Delay Final Rule, for Risk Group A
                                                                     [2023 Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                      2023 TWIC Reader Delay rule (A)          2023 Conforming Amendment (B)        2020 TWIC Reader Delay final rule *
                                 --------------------------------------------------------------------------------                   (C)
                                                                                                                 ---------------------------------------
              Year                     Total                                   Total                                   Total
                                   undiscounted       7%          3%       undiscounted       7%          3%       undiscounted       7%          3%
                                       (A1)                                    (B1)                                    (C1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022............................              $0          $0          $0              $0          $0          $0         $42,920     $40,112     $41,670
2023............................               0           0           0               0           0           0          42,920      37,488      40,456
2024............................               0           0           0               0           0           0               0           0           0
2025............................               0           0           0          42,920      32,743      38,134               0           0           0
2026............................               0           0           0          42,920      30,601      37,023               0           0           0
2027............................               0           0           0               0           0           0               0           0           0
2028............................          42,920      26,728      34,898               0           0           0               0           0           0
2029............................          42,920      24,980      33,881               0           0           0               0           0           0
2030............................               0           0           0               0           0           0               0           0           0
2031............................               0           0           0               0           0           0               0           0           0
2032............................               0           0           0               0           0           0               0           0           0
2033............................               0           0           0               0           0           0               0           0           0
2034............................               0           0           0               0           0           0               0           0           0
                                 -----------------------------------------------------------------------------------------------------------------------
    Total.......................          85,840      51,708      68,779          85,840      63,345      75,157          85,840      77,600      82,126
                                 -----------------------------------------------------------------------------------------------------------------------
        Annualized..............  ..............       6,187       6,467  ..............       7,579       7,067  ..............       9,285       7,722
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Discounted costs and cost savings totals of 2020 TWIC Reader Delay final rule presented here diverge from numbers published previously in final rule,
  due to discounting schedule change and analysis timeframe.
Note: Totals may not sum due to rounding.


[[Page 86737]]

    Table 7 presents the estimated change in costs to the Government 
from delaying the implementation of the 2020 TWIC Reader Delay final 
rule by an additional 3 years (until May 8, 2029); this applies to (1) 
facilities that handle bulk CDC but do not transfer it from or to a 
vessel; (2) facilities that handle CDC in bulk and do transfer those 
cargoes from or to a vessel; and (3) facilities that receive vessels 
carrying bulk CDC but do not transfer it from or to the vessel during 
that vessel-to-facility interface. The costs of this final rule have 
been compared to the costs under the 2023 Conforming Amendment. The 
resulting difference is what we estimated as the cost savings to the 
Government from this final rule's promulgation. We estimated an 
annualized cost savings to the Government of $1,392 and total cost 
savings of $11,637, in 2023 dollars, at a 7-percent discount rate for 
our No Action baseline.

                              Table 7--Total Change (Cost Savings) to Government Cost From the 2023 TWIC Reader Delay Rule
                                                                     [2023 Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             No Action baseline                            Pre-CA baseline
                                                               -----------------------------------------------------------------------------------------
                             Year                                Change in total                              Change in total
                                                                 undiscounted (=        7%           3%       undiscounted (=        7%           3%
                                                                      A1-B1)                                       A1-C1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       2023 TWIC Reader Delay Rule Change in Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022..........................................................                 $0           $0           $0          ($42,920)    ($40,112)    ($41,670)
2023..........................................................                  0            0            0           (42,920)     (37,488)     (40,456)
2024..........................................................                  0            0            0                  0            0            0
2025..........................................................           (42,920)     (32,743)     (38,134)                  0            0            0
2026..........................................................           (42,920)     (30,601)     (37,023)                  0            0            0
2027..........................................................                  0            0            0                  0            0            0
2028..........................................................             42,920       26,728       34,898             42,920       26,728       34,898
2029..........................................................             42,920       24,980       33,881             42,920       24,980       33,881
2030..........................................................                  0            0            0                  0            0            0
2031..........................................................                  0            0            0                  0            0            0
2032..........................................................                  0            0            0                  0            0            0
2033..........................................................                  0            0            0                  0            0            0
2034..........................................................                  0            0            0                  0            0            0
                                                               -----------------------------------------------------------------------------------------
    Total.....................................................                  0     (11,637)      (6,378)                  0     (25,892)     (13,347)
                                                               -----------------------------------------------------------------------------------------
        Annualized............................................  .................      (1,392)        (600)  .................      (3,098)      (1,255)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Change in Benefits
    As noted, this final rule delays the effective date of the 2016 
TWIC Reader final rule requirement for three categories of facilities: 
(1) facilities that handle bulk CDC but do not transfer it from or to a 
vessel; (2) facilities that handle CDC and do transfer such cargoes 
from or to a vessel; and (3) facilities that receive vessels carrying 
bulk CDC but do not transfer bulk CDC from or to the vessel during that 
vessel-to-facility interface.
    Facilities for which this final rule applies will not realize the 
enhanced benefits of electronic inspection, such as the increased 
protection against individuals who do not hold valid TWICs being 
granted unescorted access, enhanced verification of personal identity, 
and a reduction in potential vulnerabilities, until May 8, 2029.
    In addition, this final rule delays the cost to retrieve or replace 
lost PINs for use with TWICs for the facilities with delayed 
implementation. This is an unquantified cost savings which would accrue 
to individual mariners and the Coast Guard.
Alternatives
    (1) Status quo. One regulatory alternative to this final rule is 
for the Coast Guard to take no action. Taking no further action would 
result in the implementation on May 8, 2026, of the 2020 TWIC Reader 
delay final rule, since the 2023 Authorization Act's mandate and the 
2023 Conforming Amendment have extended the compliance deadline. These 
entities would be required to implement the requirements for the 
electronic inspection of TWICs and would incur the costs we estimated 
in our 2016 TWIC Reader final rule's RA, unless the Coast Guard granted 
a waiver.
    (2) Waiver approach. Another alternative the Coast Guard considered 
was a waiver approach. However, because we currently lack a 
comprehensive risk analysis on the level of individualized facilities, 
we do not believe this approach maximizes benefits. In the interim 
period before the Coast Guard's final assessment of the 2022 RAND 
Corporation's HSOAC analysis' comprehensive risk assessment, the Coast 
Guard might issue blanket waivers that include facilities that may, 
indeed, warrant the additional security of electronic inspection. For 
example, consider two facilities with a 5,000-gallon tank of CDC each. 
The tank in the first facility is placed near enough to the perimeter 
fence in a populated area that, if the tank explodes, would kill enough 
people to cause a transportation security incident (TSI) and, 
therefore, should require electronic TWIC inspection. That same tank at 
the other facility is located away from the water in an isolated area 
within the MTSA footprint (not near a population). If this tank 
explodes, it would not cause a TSI and, therefore, the facility should 
not need to conduct electronic TWIC inspection. If the Coast Guard 
issued a blanket waiver for those facilities with a storage tank of CDC 
with 5,000 gallons or less, then we would not be properly implementing 
these requirements to mitigate the risks as intended, as we are 
currently unable to determine which facilities would pose valid risks 
of a TSI. Extending the implementation deadline to 2029 will give the 
Coast Guard sufficient time to analyze the risks these facilities 
represent, and, if sufficient risks are identified, whether the benefit 
of electronic TWIC

[[Page 86738]]

inspection warrants the cost of implementation.
    We rejected both alternatives (``status quo'' and ``waiver 
approach'') because they do not address our need to conduct a 
comprehensive risk analysis at the individual facility level to analyze 
the reader requirement at these facilities. These alternatives also do 
not address our need to develop a consistent methodology that would 
form the rationale for the Coast Guard when issuing waivers for these 
facilities. Additionally, implementing a waiver system will cause 
facilities to incur additional expenses during the application and 
renewal process, and it will impose costs on the Coast Guard for 
reviewing and issuing those waivers. Issuing this final rule will not 
impose those costs on industry or Government, but will achieve the same 
functional result.

B. Small Entities

    Under the Regulatory Flexibility Act, 5 United States Code (U.S.C.) 
601-612, we have considered whether this rule would have a significant 
economic impact on a substantial number of small entities. The term 
``small entities'' comprises small businesses, not-for-profit 
organizations that are independently owned and operated and are not 
dominant in their fields, and governmental jurisdictions with 
populations of less than 50,000.
    The Coast Guard is delaying the effective date of the 2016 TWIC 
Reader final rule from May 8, 2026, which was the implementation date 
at the start of this rulemaking, until May 8, 2029, for facilities that 
handle CDC in bulk. We estimate that, consistent with past and present 
analyses, 370 facilities will experience cost savings under our No 
Action baseline. We estimate that these facilities will experience an 
annualized cost savings of approximately $11,784 (with a 7-percent 
discount rate), and that, on average, each entity owns two facilities 
and will save approximately $23,567 under our No Action baseline. We 
calculate that approximately 2 percent of the small entities impacted 
by this final rule will have a cost savings that is greater than 1 
percent but less than 3 percent of their annual revenue. The other 98 
percent will have a cost savings that is less than 1 percent of their 
annual revenue.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
this final rule will not have a significant economic impact on a 
substantial number of small entities.

C. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996, Public Law 104-121, we offer to assist small 
entities in understanding this final rule so that they can better 
evaluate its effects on them and participate in the rulemaking. The 
Coast Guard will not retaliate against small entities that question or 
complain about this rule or any policy or action of the Coast Guard.
    Small businesses may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247).

D. Collection of Information

    This rule calls for no new or revised collection of information 
under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520.

E. Federalism

    A rule has implications for federalism under Executive Order 13132 
(Federalism) if it has a substantial direct effect on States, on the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. We have analyzed this final rule under Executive Order 
13132 and have determined that it is consistent with the fundamental 
federalism principles and preemption requirements described in 
Executive Order 13132. Our analysis follows.
    This final rule delays the implementation of existing regulations 
that create a risk-based set of security measures for MTSA-regulated 
facilities. Based on this analysis, each facility is classified 
according to its risk level, which then determines whether the facility 
will be required to conduct electronic TWIC inspection. As this final 
rule does not impose any new requirements, but simply delays the 
implementation of existing requirements, it does not have a preemptive 
impact. Please refer to the Coast Guard's federalism analysis in the 
2016 TWIC Reader final rule (81 FR 57652, 57706, August 23, 2016) for 
additional information.
    While it is well settled that States may not regulate in categories 
in which Congress intended the Coast Guard to be the sole source of a 
vessel's obligations, States and local governments have traditionally 
shared certain regulatory jurisdiction over waterfront facilities. MTSA 
standards contained in 33 CFR part 105 (Maritime security: Facilities) 
are not preemptive of State or local law or regulations that do not 
conflict with them (that is, they would either conflict or would 
frustrate an overriding Federal need for uniformity).
    The Coast Guard recognizes the key role that State and local 
governments may have in making regulatory determinations. Additionally, 
for rules with federalism implications and preemptive effect, Executive 
Order 13132 specifically directs agencies to consult with State and 
local governments during the rulemaking process. If you believe this 
Final Rule has implications for federalism under Executive Order 13132, 
please contact the person listed in the FOR FURTHER INFORMATION CONTACT 
section of this preamble.

F. Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538, 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government, in 
the aggregate, or by the private sector of $100,000,000 (adjusted for 
inflation) or more in any one year. Although this final rule will not 
result in such expenditure, we do discuss the effects of this final 
rule elsewhere in this preamble.

G. Taking of Private Property

    This final rule will not cause a taking of private property or 
otherwise have taking implications under Executive Order 12630 
(Governmental Actions and Interference with Constitutionally Protected 
Property Rights).

H. Civil Justice Reform

    This final rule meets applicable standards in sections 3(a) and 
3(b)(2) of Executive Order 12988 (Civil Justice Reform) to minimize 
litigation, eliminate ambiguity, and reduce burden.

I. Protection of Children

    We have analyzed this final rule under Executive Order 13045 
(Protection of Children from Environmental Health Risks and Safety 
Risks). This final rule is not an economically significant rule and 
will not create an environmental risk to

[[Page 86739]]

health or risk to safety that might disproportionately affect children.

J. Indian Tribal Governments

    This final rule does not have tribal implications under Executive 
Order 13175 (Consultation and Coordination with Indian Tribal 
Governments), because it will not have a substantial direct effect on 
one or more Indian tribes, on the relationship between the Federal 
Government and Indian tribes, or on the distribution of power and 
responsibilities between the Federal Government and Indian tribes.

K. Energy Effects

    We have analyzed this final rule under Executive Order 13211 
(Actions Concerning Regulations That Significantly Affect Energy 
Supply, Distribution, or Use). We have determined that it is not a 
``significant energy action'' under Executive Order 13211, because 
although it is a ``significant regulatory action'' under Executive 
Order 12866, it is not likely to have a significant adverse effect on 
the supply, distribution, or use of energy, and the Administrator of 
OMB's Office of Information and Regulatory Affairs has not designated 
it as a significant energy action.

L. Technical Standards

    The National Technology Transfer and Advancement Act, codified as a 
note to 15 U.S.C. 272, directs agencies to use voluntary consensus 
standards in their regulatory activities unless the agency provides 
Congress, through OMB, with an explanation of why using these standards 
would be inconsistent with applicable law or otherwise impractical. 
Voluntary consensus standards are technical standards (e.g., 
specifications of materials, performance, design, or operation; test 
methods; sampling procedures; and related management systems practices) 
that are developed or adopted by voluntary consensus standards bodies.
    This final rule does not use technical standards. Therefore, we did 
not consider the use of voluntary consensus standards.

M. Environment

    We have analyzed this final rule under DHS Management Directive 
023-01, Rev. 1, associated implementing instructions, and Environmental 
Planning COMDTINST 5090.1 (series), which guide the Coast Guard in 
complying with the National Environmental Policy Act of 1969 (42 U.S.C. 
4321-4370f), and have made a determination that this action is one of a 
category of actions that do not individually or cumulatively have a 
significant effect on the human environment. A Record of Environmental 
Consideration supporting this determination is available in the docket. 
For instructions on locating the docket, see the ADDRESSES section of 
this preamble. This final rule is categorically excluded under 
paragraph L54 of Appendix A, Table 1 of DHS Instruction Manual 023-
01(series). Paragraph L54 pertains to regulations that are editorial or 
procedural.

List of Subjects in 33 CFR Part 105

    Maritime security, Navigation (water), Reporting and recordkeeping 
requirements, Security measures, Waterways.

    For the reasons listed in the preamble, the Coast Guard amends 33 
CFR part 105 as follows:

PART 105--MARITIME SECURITY: FACILITIES

0
1. The authority citation for part 105 is revised to read as follows:

    Authority: 46 U.S.C. 70034, 70103, 70116; sec. 811, Pub. L. 111-
281, 124 Stat. 2905 (46 U.S.C. 70103 note); 33 CFR 1.05-1, 6.04-11, 
6.14, 6.16, and 6.19; DHS Delegation No. 00170.1, Revision No. 01.4.


0
2. In Sec.  105.253, revise paragraphs (a)(2) through (4) to read as 
follows:


Sec.  105.253   Risk Group classifications for facilities.

    (a) * * *
    (2) Beginning May 8, 2029: Facilities that handle Certain Dangerous 
Cargoes (CDC) in bulk and transfer such cargoes from or to a vessel.
    (3) Beginning May 8, 2029: Facilities that handle CDC in bulk, but 
do not transfer it from or to a vessel.
    (4) Beginning May 8, 2029: Facilities that receive vessels carrying 
CDC in bulk but, during the vessel-to-facility interface, do not 
transfer it from or to the vessel.
* * * * *

    Dated: October 17, 2024.
Linda L. Fagan,
Admiral, U.S. Coast Guard, Commandant.
[FR Doc. 2024-24780 Filed 10-30-24; 8:45 am]
BILLING CODE 9110-04-P


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