Federal Register / Vol. 89, No. 211 / Thursday, October 31, 2024 / Rules and Regulations 86723 

TABLE 1 TO PARAGRAPH (c)—AFFECTED P/NS—Continued 

P/N Affected part Ship date range 

77450 .............................................................................. Connecting Rod Assembly ............................................. 01/30/2009–02/14/2017 

LW–13422 ....................................................................... Connecting Rod Assembly ............................................. 01/30/2009–02/14/2017 

LW–13937 ....................................................................... Connecting Rod Assembly ............................................. 01/30/2009–02/14/2017 

LW–15288 ....................................................................... Connecting Rod Assembly ............................................. 01/30/2009–02/14/2017 

Note 1 to paragraph (c): The affected parts 

are known to be installed on Lycoming 

Model AEIO–320 series, AEIO–360 series, 

AEIO–390 series, AEIO–540 series, AEIO– 

580–B1A, AIO–320 series, AIO–360 series, 

HIO–360 series, HIO–390–A1A, HIO–540– 

A1A, HO–360 series, IO–320 series, IO–360 

series, IO–390 series, IO–540 series, IVO– 

360–A1A, IVO–540–A1A, LHIO–360 series, 

LIO–320 series, LIO–360 series, LO–360 

series, LTIO–540 series, LTO–360 series, O– 

233–A1, O–235 series, O–320 series, O–340 

series, O–360 series, O–435 series, O–540 

series, SO–580 series, TEO–540 series, TIGO– 

541 series, TIO–360 series, TIO–540 series, 

TIO–541 series, TIVO–540–A2A, TO–360 

series, TVO–435 series, TVO–540–A1A, VO– 

360 series, VO–435 series, VO–540 series, 

and VSO–580–A1A engines. 

(d) Subject 

Joint Aircraft System Component (JASC) 

Code 8500, Engine (Reciprocating). 

(e) Unsafe Condition 

This AD was prompted by several reports 

of connecting rod failures resulting in 

uncontained engine failure and in-flight 

shutdowns (IFSDs). The FAA is issuing this 

AD to prevent connecting rod failure. The 

unsafe condition, if not addressed, could 

result in engine failure, an IFSD, and loss of 

control of the aircraft. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Required Actions 

(1) At the next oil change or within 4 

months after the effective date of this AD, 

whichever occurs first, and thereafter at 

every oil change until the bushing 

replacement required by either paragraph 

(g)(3) or (4) of this AD is done, perform a 

visual inspection of the engine oil filter, oil 

pressure screen, and oil suction screen 

(depending on the engine configuration) for 

bronze metal particulates. The actions 

required by this paragraph may be performed 

by the owner/operator (pilot) holding at least 

a private pilot certificate and must be entered 

into the aircraft records showing compliance 

with this AD in accordance with 14 CFR 

43.9(a) and 91.417(a)(2)(v). The record must 

be maintained as required by 14 CFR 91.417, 

121.380, or 135.439. 

Note 2 to paragraph (g)(1): Guidance for 

engine oil filter, oil pressure screen, and oil 

suction screen inspection instructions and 

identification of metallic solids may be found 

in Lycoming Mandatory Service Bulletin No. 

(MSB) 480F, dated May 25, 2017 (Lycoming 

MSB 480F). 

(2) If, during any inspection required by 

paragraph (g)(1) of this AD, any bronze metal 

particulates are found and the source is 

identified as the connecting rod bushings, 

before further flight, inspect all affected 

connecting rod bushings for damage (e.g. 

deterioration, missing metal), proper fit, 

movement, and wear in accordance with 

‘‘Connecting Rod Bushing Inspection,’’ of 

Lycoming MSB 630A, dated June 13, 2017. 

Note 3 to paragraph (g)(2): Guidance for 

identifying the source of metallic 

contamination may be found in Table 3 of 

Lycoming MSB 480F. 

(3) If the connecting rod bushings fail any 

inspection required by paragraph (g)(2) of 

this AD, before further flight, replace the 

connecting rod bushings with parts eligible 

for installation. This terminates the repetitive 

inspection required by paragraph (g)(1) of 

this AD. 

(4) At the next engine overhaul, replace the 

connecting rod bushings with parts eligible 

for installation. This terminates the repetitive 

inspection required by paragraph (g)(1) of 

this AD. 

(h) Definition 

For the purpose of this AD, a ‘‘part eligible 

for installation’’ is any connecting rod 

bushing having P/N 01K28983. 

(i) Credit for Previous Actions 

You may take credit for the actions 

required by paragraph (g)(1) of this AD if you 

performed those actions before the effective 

date of this AD using Lycoming MSB 480F. 

(j) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, East Certification Branch, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. In accordance with 

14 CFR 39.19, send your request to your 

principal inspector or local Flight Standards 

District Office, as appropriate. If sending 

information directly to the manager of the 

branch office, send it to the attention of the 

person identified in paragraph (k)(1) of this 

AD and email to: 9-avs-nyaco-cos@faa.gov. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/ 

certificate holding district office. 

(k) Additional Information 

(1) For more information about this AD, 

contact James Delisio, Aviation Safety 

Engineer, FAA, 1701 Columbia Avenue, 

College Park, GA 30337; phone: (516) 228– 

7321; email: james.delisio@faa.gov. 

(2) Service information identified in this 

AD that is not incorporated by reference is 

available at the address specified in 

paragraph (l)(3) of this AD. 

(l) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the material listed in this paragraph 

under 5 U.S.C. 552(a) and 1 CFR part 51. 

(2) You must use this material as 

applicable to do the actions required by this 

AD, unless the AD specifies otherwise. 

(i) Lycoming Engines Mandatory Service 

Bulletin No. 630A, dated June 13, 2017. 

(ii) [Reserved] 

(3) For Lycoming Engines material 

identified in this AD, contact Lycoming 

Engines, 652 Oliver Street, Williamsport, PA 

17701; phone: (800) 258–3279; website: 

lycoming.com/contact/knowledge-base/ 

publications. 

(4) You may view this material at the FAA, 

Airworthiness Products Section, Operational 

Safety Branch, 1200 District Avenue, 

Burlington, MA 01803. For information on 

the availability of this material at the FAA, 

call (817) 222–5110. 

(5) You may view this material at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, 

visit www.archives.gov/federal-register/cfr/ 

ibr-locations or email fr.inspection@nara.gov. 

Issued on October 28, 2024. 

Victor Wicklund, 

Deputy Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2024–25365 Filed 10–30–24; 8:45 am] 

BILLING CODE 4910–13–P 

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. 

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 


lotter on DSK11XQN23PROD with RULES1
86724 Federal Register / Vol. 89, No. 211 / Thursday, October 31, 2024 / Rules and Regulations 

1See Sec. 102 of Public Law 107–295 (November 

25, 2002), codified as 46 United States Code 

(U.S.C.) 70105. 

2See Sec. 104 of Public Law 109–347 (October 13, 

2006). 

3See 46 U.S.C. 70105(k)(3). 

4See Sec. 102 of Public Law 107–295 (November 

25, 2002) (Maritime transportation security plans). 

5 71 FR 29395. 

6 72 FR 3491. 

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 Jeffrey.M.Bender@uscg.mil. 

For general information and press 

inquiries, contact Chief Warrant Officer 

Brittany Panetta, U.S. Coast Guard; 

telephone 202–372–4449 email 

Brittany.P.Panetta@uscg.mil. 

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 ‘‘TWICReader 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 

§ 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

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. 

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 


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Federal Register / Vol. 89, No. 211 / Thursday, October 31, 2024 / Rules and Regulations 86725 

7 74 FR 13360. 

8 78 FR 17782. 

9 81 FR 57652). 

10Public Law 114–278, 130 Stat. 1410. 

11See docket number USCG–2017–0447, 

available at https://www.regulations.gov (last 

visited 04/28/2023). 

12 83 FR 29067. 

13See section 2 of Public Law 115–230, 132 Stat. 

1631. 

14Public Law 114–278, 130 Stat. 1410. The report 

was submitted in August 2019. 

15 85 FR 13943. 

16While 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. 17Public Law 117–263, 136 Stat. 2395. 

Credential (TWIC)-Reader 

Requirements.’’ 7 The ANPRM discussed 

dividing vessels and facilities into three 

‘‘risk groups’’—Risk Group A for highrisk 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. 

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. 

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), §§ 104.263, 105.253, 

and 106.258. 

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. 

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

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. 

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

On March 9, 2020, the Coast Guard 

published a final rule titled ‘‘TWICReader 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. 

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-tofacility interface, do not transfer it from 

or to the vessel. These three categories 


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86726 Federal Register / Vol. 89, No. 211 / Thursday, October 31, 2024 / Rules and Regulations 

18 87 FR 74563 (Dec. 6, 2022). 

19 88 FR 23349. 

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. 

23A 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. 

24 88 FR 23349. 

25 87 FR 74563. 

are identical to the facilities identified 

in 33 CFR 105.253(a)(2) through (4). 

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 § 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. 

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. 

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

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. 

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

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. 

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 


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Federal Register / Vol. 89, No. 211 / Thursday, October 31, 2024 / Rules and Regulations 86727 

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. 

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 ‘‘PreConforming Amendment’’ (‘‘Pre-CA’’) 

baseline and a ‘‘No Action’’ baseline. 

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. 


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Illustration 1: Visual Depiction of Pre-CA and No Action Baselines 

2020 

TWICFR 

Period of Analvsis (Pre-CA and No-Action) 

Period of Impact: Pre-CA Baseline 

Period oflmoact: No-Action Baseline 

2023 Conforming Amendment 2023 TWIC Reader Delay Rule 

2022 2025 
86728 Federal Register / Vol. 89, No. 211 / Thursday, October 31, 2024 / Rules and Regulations 

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 PreCA 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, benefits ........................................................................ None. RA. 

Unquantifiable Benefits ................................................................................................................. For facilities with a delayed 

compliance, this final rule will 

postpone the benefits of electronic TWIC inspection. 

RA. 

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, Millions) ............................................................................ ($4.36) 7% RA. 

Annualized monetized costs (Dollars, Millions) ............................................................................ ($3.14) 3% RA. 

Annualized quantified, but unmonetized, costs ............................................................................ None. RA. 

Qualitative (un-quantified) cost savings ........................................................................................ This final rule delays the cost to 

retrieve or replace lost personal identification numbers 

(PINs) to use with TWICs for 

facilities with delayed implementation. 

RA. 

Transfers 

Annualized monetized transfers: ‘‘on budget’’ .............................................................................. Not calculated. RA. 

From whom to whom? .................................................................................................................. RA. 

Annualized monetized transfers: ‘‘off-budget’’ .............................................................................. None. 

From whom to whom? .................................................................................................................. None. 

Miscellaneous Analyses/Category 

Effects on Tribal, State, and/or local governments ....................................................................... None. 

Effects on small businesses .......................................................................................................... This final rule does not have a 

significant economic impact 

on a substantial number of 

small entities. 

RA. 

Effects on wages ........................................................................................................................... None. 

Effects on growth .......................................................................................................................... No determination. 


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I 

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I 
Federal Register / Vol. 89, No. 211 / Thursday, October 31, 2024 / Rules and Regulations 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, benefits ........................................................................ None. RA. 

Unquantifiable Benefits ................................................................................................................. For facilities with a delayed 

compliance, this final rule will 

postpone the benefits of electronic TWIC inspection. 

RA. 

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, Millions) ............................................................................ ($10.49) 7% RA. 

Annualized monetized costs (Dollars, Millions) ............................................................................ ($7.55) 3% RA. 

Annualized quantified, but unmonetized, costs ............................................................................ None. RA. 

Qualitative (un-quantified) cost savings ........................................................................................ This final rule delays the cost to 

retrieve or replace lost personal identification numbers 

(PINs) to use with TWICs for 

facilities with delayed implementation. 

RA. 

Transfers 

Annualized monetized transfers: ‘‘on budget’’ .............................................................................. Not calculated. RA. 

From whom to whom? .................................................................................................................. RA. 

Annualized monetized transfers: ‘‘off-budget’’ .............................................................................. None. 

From whom to whom? .................................................................................................................. None. 

Miscellaneous Analyses/Category 

Effects on Tribal, State, and/or local governments ....................................................................... None. 

Effects on small businesses .......................................................................................................... This final rule does not have a 

significant economic impact 

on a substantial number of 

small entities. 

RA. 

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 


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86730 Federal Register / Vol. 89, No. 211 / Thursday, October 31, 2024 / Rules and Regulations 

27The 2016 TWIC Reader final rule’s RA is 

available in the docket; docket number USCG– 

2007–28915–0231. 

28See 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). 

29 87 FR 74563. 

30For 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). 

bulk CDC, but, during that vessel-tofacility 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

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-tofacility 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. 

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. 

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] 

Category 2020 TWIC Reader Delay final rule 2023 Conforming Amendment 2023 TWIC Reader Delay rule 

(X) (Y) (Z) 

Period of Impact & Analysis.Costs begin to be incurred by entities in 2022, and the analysis is 

from 2022–2034 Discounted costs 

diverge from the 2020 TWIC 

Reader Delay final rule due to 

modification of discounting schedule. Total costs differ due to extended period of analysis.

Costs begin to be incurred by entities in 2025, and the analysis is 

from 2022–2034.

Represents an additional delay of 3 

years, effective post 2023 Conforming Amendment. Costs begin 

to be incurred by entities in 2028, 

and the analysis is from 2022– 

2034. 


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Federal Register / Vol. 89, No. 211 / Thursday, October 31, 2024 / Rules and Regulations 86731 

TABLE 2A—SUMMARY OF RULES—Continued 

[2023 Dollars] 

Category 2020 TWIC Reader Delay final rule 2023 Conforming Amendment 2023 TWIC Reader Delay rule 

(X) (Y) (Z) 

Affected Population .......... 370 facilities that handle bulk CDC, 

but do not transfer it from or to a 

vessel, and that handle bulk CDC 

and do transfer such cargoes from 

or to a vessel (to comply by May 

8, 2023). The rule also applies to 

facilities that receive vessels carrying bulk CDC, but, during that 

vessel-to-facility interface, do not 

transfer bulk CDC from or to the 

vessel.

370 facilities that handle bulk CDC, 

but do not transfer it from or to a 

vessel, and that handle bulk CDC 

and do transfer such cargoes from 

or to a vessel (to comply by May 

8, 2026). The rule also applies to 

facilities that receive vessels carrying bulk CDC, but, during that 

vessel-to-facility interface, do not 

transfer bulk CDC from or to the 

vessel.

370 facilities that handle bulk CDC, 

but do not transfer it from or to a 

vessel, and that handle bulk CDC 

and do transfer such cargoes from 

or to a vessel (to comply by May 

8, 2029). The rule also applies to 

facilities that receive vessels carrying bulk CDC, but, during that 

vessel-to-facility interface, do not 

transfer bulk CDC from 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 (Dollars, 

millions, 7% discount 

rate). Annualized.

Industry: $23.05 (annualized) ............

Government: $0.008 (annualized) .....

Both: $23.06 (annualized) .................

Industry: $16.92 (annualized) ............

Government: $0.008 (annualized) .....

Both: $16.93 (annualized) .................

Industry: $12.56 (annualized). 

Government: $0.006 (annualized). 

Both: $12.57 (annualized). 

Costs to Industry and 

Government (Dollars, 

millions, 7% discount 

rate). Over 13-year 

analysis period.

Industry: $192.63 (13-year) ...............

Government: $0.078 (13-year) ..........

Both: $192.71 (13-year) ....................

Industry: $141.42 (13-year) ...............

Government: $0.063 (13-year) ..........

Both: $141.48 (13-year) ....................

Industry: $104.98 (13-year). 

Government: $0.052 (13-year). 

Both: $105.03 (13-year). 

Costs (Qualitative) ........... Time to retrieve or replace lost PINs 

for use with TWICs.

Delayed enhanced access control 

and security for the facilities with 

delayed implementation.

Delays enhanced access control and 

security for the facilities with delayed implementation. 

Benefits (Qualitative) ....... Enhanced access control and security at U.S. maritime facilities and 

on board U.S.-flagged vessels.

Time to retrieve or replace lost PINs 

for use with TWICs.

This final rule delays the cost to retrieve or replace lost PINs for use 

with TWICs for facilities with delayed implementation. 

Reduction of human error when 

checking identification and manning access points.

Reduction of human error when 

checking identification and manning access points.

Delays the reduction of human error 

when checking 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 dollars, millions) 

No Action baseline 

= Z ¥ Y 

Pre-CA baseline 

= Z ¥ X 

Annualized (7% discount rate) ........ Industry: ($4.36) (annualized) 

Government: ($0.001) (annualized) ..........................

Total: ($4.36) (annualized) ........................................

Industry: ($10.49) (annualized). 

Government: ($0.003) (annualized). 

Total: ($10.49) (annualized). 

13-Year (7% discount rate) ............. Industry: ($36.44) (13-year) 

Government: ($0.01) (13-year) ..................................

Total: ($36.45) (13-year) ...........................................

Industry: ($87.66) (13-year). 

Government: ($0.02) (13-year). 

Total: ($87.68) (13-year). 

Annualized (3% discount rate) ........ Industry: ($3.14) (annualized) 

Government: ($0.001) (annualized) ..........................

Total: ($3.14) (annualized) ........................................

Industry: ($7.55) (annualized). 

Government: ($0.001) (annualized). 

Total: ($7.55) (annualized). 

13-Year (3% discount rate) ............. Industry: ($33.41) (13-year) 

Government: ($0.01) (13-year) ..................................

Total: ($33.41) (13-year) ...........................................

Industry: ($80.31) (13-year). 

Government: ($0.01) (13-year). 

Total: ($80.32) (13-year). 

Note: Totals may not sum due to rounding. 


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86732 Federal Register / Vol. 89, No. 211 / Thursday, October 31, 2024 / Rules and Regulations 

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) × 

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 

new facilities 

complying 

Total number 

of facilities 

Capital 

costs 

Maintenance 

costs 

Operational 

costs 

Undiscounted 

total 

(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 


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TABLE 3—TOTAL COST FOR FACILITIES UNDER 2023 TWIC READER DELAY RULE 2023 CONFORMING AMENDMENT, AND

2020 TWIC READER DELAY FINAL RULE—Continued 

[Millions, 2023 dollars] 

Year 

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 

new facilities 

complying 

Total number 

of facilities 

Capital 

costs 

Maintenance 

costs 

Operational 

costs 

Undiscounted 

total 

(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 

new facilities 

complying 

Total number 

of facilities 

Capital 

costs 

Maintenance 

costs 

Operational 

costs 

Undiscounted 

total 

(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. 


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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 

costs 

Undiscounted 7% 3% 

(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 

costs * 

Undiscounted 7% 3% 

(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 

costs 

Undiscounted 7% 3% 

(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. 


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∼ 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] 

Year Undiscounted 

(= 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] 

Year Undiscounted 

(= 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) 


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31Because 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 5B—TOTAL CHANGE TO INDUSTRY COSTS FROM THE 2023 TWIC READER DELAY RULE—Continued 

[Pre-CA baseline] 

[Millions, 2023 dollars] 

Year Undiscounted 

(= C1¥C3) 7% 3% 

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-tofacility 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 × 4 hours per review × 

185 plans), which would result from not 

extending the delay of the 2020 TWIC 

Reader delay final rule. 

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] 

Year 

2023 TWIC Reader Delay rule 

(A) 

2023 Conforming Amendment 

(B) 

2020 TWIC Reader Delay final rule * 

(C) 

Total 

undiscounted 

(A1) 

7% 3% 

Total 

undiscounted 

(B1) 

7% 3% 

Total 

undiscounted 

(C1) 

7% 3% 

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. 


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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] 

Year 

No Action baseline Pre-CA baseline 

Change in total 

undiscounted 

(= A1¥B1) 

7% 3% 

Change in total 

undiscounted 

(= A1¥C1) 

7% 3% 

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 vesselto-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 


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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-forprofit 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 


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Federal Register / Vol. 89, No. 211 / Thursday, October 31, 2024 / Rules and Regulations 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 

■ 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. 

■ 2. In § 105.253, revise paragraphs 

(a)(2) through (4) to read as follows: 

§ 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 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2024–0967] 

RIN 1625–AA00 

Safety Zone; Corpus Christi Ship 

Channel, Corpus Christi, TX 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone for 

certain navigable waters of the La 

Quinta Ship Channel. The safety zone is 

needed to protect personnel, vessels, 

and the marine environment from 

potential hazards created by module 

loadout operations at Kiewit Offshore 

Services, between the Jewell Fulton 

Channel and La Quinta Channel Day 

Beacon 13. Entry of vessels or persons 

into this zone is prohibited unless 

specifically authorized by the Captain of 

the Port, Sector Corpus Christi, or a 

designated representative. 

DATES: For the purposes of enforcement, 

actual notice will be used from 5 a.m. 

on October 28, 2024, through October 

31, 2024. This rule is effective without 

actual notice from October 31, 2024 

through 8 p.m. on November 4, 2024. 

The rule will be subject to 

enforcement on only one day during the 

period, depending on weather, from 5 

a.m. to 8 p.m. that day. 

ADDRESSES: To view documents 

mentioned in this preamble as being 

available in the docket, go to https://

www.regulations.gov, type USCG–2024– 

0967 in the ‘‘SEARCH’’ box and click 

‘‘SEARCH.’’ Click on Open Docket 

Folder on the line associated with this 

rule. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions about this rule, call 

or email Lieutenant Timothy Cardenas, 

Sector Corpus Christi Waterways 

Management Division, U.S. Coast 

Guard; telephone 361–939–5130, email 

Timothy.J.Cardenas@uscg.mil. 

SUPPLEMENTARY INFORMATION: 

I. Table of Abbreviations 

CFR Code of Federal Regulations 

COTP Captain of the Port, Sector Corpus 

Christi 

DHS Department of Homeland Security 

FR Federal Register 

NPRM Notice of proposed rulemaking 

§ Section 

U.S.C. United States Code 


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