the annualized cost of this rulemaking would increase from $21.9
million to $26.0 million, at a 7 percent discount rate. The discounted
10-year costs would go from $153.8 million to $182.6 million. The
inclusion of container facilities would also potentially have adverse
environmental impacts due to increased air emissions due to longer wait
(``queuing'') times and congestion at facilities.
    We considered this alternative because of the risk associated with
container facilities due to the transfer risk associated with
containers. As discussed in the preamble of the NPRM, many of the high-
risk threat scenarios at container facilities would not be mitigated by
electronic TWIC inspection. The costs for electronic TWIC inspection at
container facilities would not be justified by the amount of potential
risk reduction at these facilities from such a measure. While container
facilities pose a higher transfer risk (i.e., there is a greater risk
of a threat coming through a container facility and inflicting harm or
damage elsewhere than with any other facility type), such threats are
not mitigated by the use of TWIC readers.
    Furthermore, the use of TWIC readers, or other access control
features, would not mitigate the threat associated with the contents of
a container. The electronic TWIC inspection serves as an additional
access control measure, but would not improve screening of cargoes for
dangerous substances or devices.
    Alternative 4--Adding certain high consequence facilities to Risk
Group A (these additional facilities to include petroleum refineries,
non-CDC bulk hazardous materials facilities, and petroleum storage
facilities):
    For this alternative, we moved three facility categories--petroleum
refineries, non-CDC bulk hazardous materials facilities, and petroleum
storage facilities--into Risk Group A from Risk Group B based on the
average maximum consequence for these facility types. This alternative
would increase the burden on industry by increasing the affected
population from 525 facilities to 1,174 facilities. Under this
scenario, the annualized cost of this rulemaking would increase from
$21.9 million to $44.1 million, at a 7 percent discount rate. The
discounted 10-year costs would go from $153.8 million to $309.5
million.
    We considered this alternative based on the high MSRAM consequences

associated with these three facility types, as well as due to the
perception that petroleum facilities pose a greater security risk than
other facility types. Despite the high MSRAM consequences for these
facility types, the overall risk as determined in the AHP were not as
high as those in the current Risk Group A, and therefore, we rejected
this alternative and maintained the AHP-based risk groupings.
    Alternative 5--Risk Group A and Risk Group B Facilities and Risk
Group A Vessels with More than 14 Crewmembers:
    Alternative 5 would require electronic TWIC inspection to be used
at all Risk Group A and Risk Group B facilities, and Risk Group A
vessels with greater than 14 TWIC-holding crewmembers. This alternative
would increase the burden on industry and small entities by increasing
the affected population from 525 facilities to 2,173 facilities. This
increase in facilities would extend the affected population to
facilities that fall under the second risk tier. Under this
alternative, annualized cost of this rulemaking would increase from
$21.9 million to $78.1 million, at a 7 percent discount rate. The
discounted 10-year costs would go from $153.8 million to $548.9
million. Based on a recent study by the Homeland Security Institute, as
discussed in the preamble to the NPRM, the difference in risk between
facilities in Risk Groups A and B is clearly defined, indicating that
the two Risk Groups do not require the same level of TWIC requirements.
Further, as discussed in the benefits section of this analysis, the
break-even point, or the amount of risk that would need to be reduced
for costs to equal benefits, for this alternative is much higher than
that of the final rule alternative. For these reasons, we rejected this
alternative.
    The provisions in this final rule are taken in order to meet
requirements set forth in MTSA and the SAFE Port Act. The final rule,
as presented, represents the lowest cost alternative, as discussed
above. We have focused this rulemaking on the highest risk population
so as to reduce the impacts of this rule as much as possible. Also, we
have created a performance standard that allows the affected population
to implement the requirements in a manner most conducive to their own
business practices.
    Furthermore, by allowing for flexibilities, such as the use of
fixed or portable TWIC readers, and removing vessels with 20 or fewer
TWIC-holding crewmembers from the requirements, we have reduced
potential burden on all entities, including small entities.
Furthermore, we believe that providing any additional relief for small
entities would conflict with the purpose of this rulemaking, as the
objective is to enhance access control and reduce risk of a TSI.
Providing relief of the proposed requirements based on entity size
would contradict that stated purpose and leave small entities, which
may possess as great a risk as entities that exceed the Small Business
Administration (SBA) size standards, more vulnerable to a TSI.
B. Small Entities
    Under the Regulatory Flexibility Act, 5 U.S.C. 601-612, we have
considered whether this rule would have a significant economic impact
on a substantial number of small entities. The term ``small entities''
comprises small businesses, not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of less than 50,000. A
Final Regulatory Flexibility Analysis discussing the impact of this
final rule on small entities is available in the docket, and a summary
follows.
    For this final rule, we estimated costs for mandatory electronic
TWIC inspection for approximately 1 vessel and 525 facilities based on
the risk assessment hierarchy and current data from the Coast Guard's
MISLE database. Of these 525 facilities that would be affected by the
electronic TWIC inspection requirements, we found 306 unique owners.
Among these 306 unique owners, there were 31 government-owned entities,
114 companies that exceeded SBA small business size standards, 88
companies considered small by SBA size standards, and 73 companies for
which no information was available. For the purposes of this analysis,
we consider all entities for which information was not available to be
small. There were no not-for-profit entities in our affected
population. Of the 31 government jurisdictions that would be affected
by this final rule, 24 exceed the 50,000 population threshold as
defined by the Regulatory Flexibility Act to be considered small, and
the remaining 7 have government revenue levels such that there would
not be an impact greater than 1 percent of government revenue.\74\
---------------------------------------------------------------------------

    \74\ ``Government revenues'' used for this analysis include tax
revenues, and in some cases, operating revenues for government owned
waterfront facilities.
---------------------------------------------------------------------------

    We were able to find revenue information for 64 of the 88
businesses deemed small by SBA size standards.\75\ We then determined
the impacts of the final rule on these companies by comparing the cost
of the final rule to the average per facility cost of this rulemaking.
To determine the average per facility cost, we average the per facility
cost for all facility types using the same cost per facility type
breakdown as used to assess the costs of this proposal. We then found
what percent impact on revenue the final rule will have based on
implementation costs (including capital costs) and annual recurring
costs (including updates of the list of cancelled TWICs, recordkeeping,
and training). We estimate these costs to be, on average $195,715 per
entity during the implementation period and $12,612 per entity in
annual recurring cost.\76\ The actual cost faced by a specific facility
will vary based on a number of factors, such as the number of access
points. Smaller facilities should in general incur lower costs, but the
Coast Guard is unable to distinguish cost estimates on a facility-by-
facility basis. We note that in some cases owners and operators might
be able to finance the equipment costs as needed and such financing
scenario could further decrease the impact on the facility owner and
operators. We base our impact analysis on average cost to regulated
entities due to the flexibility afforded by this final rule to
individual facilities to determine how best to implement electronic
TWIC inspection requirements.\77\ Table 16 shows the potential revenue
impacts for small businesses impacted by this final rule.
---------------------------------------------------------------------------

    \75\ SBA small business standards are based on either company
revenue or number of employees. Many companies in our sample have
employee numbers determining them small, but we were unable to find
annual revenue data to pair with the employee data.
    \76\ These are weighted averages, based on the per facility cost
displayed in Table 4 and the number of facilities by type.
    \77\ We do not know how a specific facility will comply with
this rulemaking in regards to type and number of readers installed,
number of personnel requiring training at a given facility, etc.

                       Table 16--Revenue Impacts on Affected Small Businesses--Facilities
----------------------------------------------------------------------------------------------------------------
                                                    Impacts from implementation    Impacts from recurring annual
                                                               costs                           costs
              Revenue impact range               ---------------------------------------------------------------
                                                     Number of      Percent of       Number of      Percent of
                                                     entities        entities        entities        entities
----------------------------------------------------------------------------------------------------------------
0% < Impact <= 1%...............................              33              52              57              89
1% < Impact <= 3%...............................               4               6               6               9
3% < Impact <= 5%...............................               5               8               0               0
5% < Impact <= 10%..............................               8              13               1               2
Above 10%.......................................              14              22               0               0
                                                 ---------------------------------------------------------------
    Total.......................................              64             100              64             100
----------------------------------------------------------------------------------------------------------------

    The greatest impact is expected to occur during the implementation
phase when 48 percent of small businesses that we were able to find
revenue data on will experience an impact of greater than 1 percent,
and 22 percent of small businesses that we were able to find revenue
data on will experience an impact greater than 10 percent. After
implementation, the impacts decrease and 89 percent of affected small
businesses will see an impact less than 1 percent. We expect the
revenue impacts for years with equipment replacement to be between
those for implementation and annual impacts. During those years with
equipment replacement, we estimate that approximately 3 percent of
businesses would see an impact greater than 1 percent, and 0 percent
would see an impact greater than 10 percent.\78\
---------------------------------------------------------------------------

    \78\ We estimate an average cost per facility in years with
equipment replacement to be $48,110.
---------------------------------------------------------------------------

    For vessels, we found that for the 1 vessel that will be affected
by this final rule, there is 1 unique owner that did not qualify as
small business by SBA size standards. Therefore, we do not provide a
revenue impact analysis for affected small business as we provided
above for affected facilities.
C. Assistance for Small Entities
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996, Public Law 104-121, we offered to assist small
entities in understanding this rule so that they could 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 a collection of information under the Paperwork
Reduction Act of 1995, 44 U.S.C. 3501-3520. You are not required to
respond to a collection of information unless it displays a currently
valid OMB control number. As required by 44 U.S.C. 3507(d), we
submitted a copy of the final rule to the OMB for its review of the
collection of information. As defined in 5 CFR 1320.3(c), ``collection
of information'' comprises reporting, recordkeeping, monitoring,
posting, labeling, and other similar actions. The title and description
of the information collection, a description of those who must collect
the information, and an estimate of the total annual burden follow. The
estimate covers the time for reviewing instructions, searching existing
sources of data, gathering and maintaining the data needed, and
completing and reviewing the collection.
    Under the provisions of the final rule, the affected facilities and
vessel will be required to update their FSPs and VSPs, as well as
create and maintain a system of recordkeeping within 2 years of
promulgation of the final rule. This requirement will be added to an
existing collection with OMB control number 1625-0077.
    Title: Security Plans for Ports, Vessels, Facilities, Outer
Continental Shelf Facilities and Other Security-Related Requirements.
    OMB Control Number: 1625-0077.
    Summary of the Collection of Information: This information
collection is associated with the maritime security requirements
mandated by MTSA. Security assessments, security plans, and other
security-related requirements are found in 33 CFR Chapter I, subchapter
H. The final rule will require certain vessel and facilities to use
electronic readers designed to work with the TWIC as an access control
measure. Affected owners and operators will also face requirements
associated with electronic TWIC inspection, including recordkeeping
requirements for those owners and operators required to use an
electronic TWIC reader, and security plan amendments to incorporate
TWIC requirements.
    Need for Information: The information is necessary to show evidence
that affected vessels and facilities are complying with the electronic
TWIC inspection requirements.
    Proposed Use of Information: We will use this information to ensure
that facilities and vessels are properly implementing and utilizing
electronic TWIC inspection programs.
    Description of the Respondents: The respondents are owners and
operators of certain vessel and facilities regulated by the Coast Guard
under 33 CFR Chapter I, subchapter H.
    Number of Respondents: The number of respondents is the 525
facilities that are considered ``high-risk'' and would be required to
modify their existing FSPs, and 1 vessel that would be required to
modify its VSP to account for the electronic TWIC inspection
requirements. These same populations will be required to create and
maintain recordkeeping systems as well.
    Frequency of Response: The FSP and VSP would need to be amended
within 2 years of promulgation to include TWIC reader-related
procedures. Recordkeeping requirements will need to be met along a
similar timeline.
    Burden of Response: The estimated burden for facilities would be
17,063 hours in the first year, 17,063 hours in the second year and
3,150 hours in the third year and all subsequent years. The burden for
vessels would be 65 burden

hours in year one, and 6 burden hours for all subsequent years. This
includes an estimated 25 burden hours to amend the FSP or VSP, along
with an implementation period burden of 40 hours and an annual burden
of 6 hours for designing and maintaining a system of records for each
facility or vessel, to include recordkeeping related to the list of
cancelled TWICs.
Estimate of Total Annual Burden
    Facilities: The estimated burden over the 2-year implementation
period for facilities is 25 hours per FSP amendment. Since there are
currently 525 facilities that will need to amend their FSPs, the total
burden on facilities would be 13,125 hours (525 FSPs x 25 hours per
amendment) during the 2-year implementation period, or 6,563 hours each
of the first 2 years. Facilities would also face a recordkeeping burden
of 21,000 hours during the 2-year implementation period (525 facilities
x 40 hours per recordkeeping system), or 10,500 hours each year over
the first 2 years. There would also be an annual recordkeeping burden
of 3,150 hours (525 facilities x 6 hours per year), starting in the
third year. In the second year, the 262 facilities that implemented in
the first year would incur the 6 hours of annual recordkeeping, at a
burden of 1,572 (262 facilities x 6 hours). The total burden for
facilities is estimated at 17,063 (6,563 + 10,500) in Year 1, 17,063 in
Year 2 (6,563 + 10,500), and 3,150 in Year 3.
    Vessels: For the 1 vessel, the burden in the first year would be 25
hours (1 VSP x 25 hour per amendment). Vessels would also face a
recordkeeping burden of 40 hours during the 1-year implementation
period (1 vessel x 40 hours per recordkeeping system). There would also
be an annual recordkeeping burden of 6 hours, starting in Year 2, (1
vessel x 6 hours per year). The total burden for vessels is estimated
at 65 (25 + 40) in Year 1 and 6 hours in Years 2 and 3.
    Total: The total additional burden due to the electronic TWIC
inspection rule is estimated at 17,128 (65 for vessels and 17,063 for
facilities) in Year 1, 17,069 (6 for vessel and 17,063 for facilities)
in Year 2, and 3,156 (6 for vessels and 3,150 for facilities) in Year
3. The current annual burden listed in this collection of information
is 1,108,043. The new burden, as a result of this final rule, in Year 1
is 1,125,171 (1,108,043 + 17,128). In Year 2, the new burden, as a
result of this final rule, is 1,125,171 (1,108,043 + 17,128) and in
Year 3 it is 1,111,199 (1,108,043 + 3,156). The average annual
additional burden across the 3 years is 12,425.
    As required by the Paperwork Reduction Act of 1995 (44 U.S.C.
3507(d)), we have submitted a copy of this final rule to OMB for its
review of the collection of information.

E. Federalism

    A rule has implications for Federalism under E.O. 13132,
Federalism, if it has a substantial direct effect on the 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. This final rule has been analyzed in accordance with the
principles and criteria in E.O. 13132, and it has been determined that
this final rule does have Federalism implications or a substantial
direct effect on the States.
    This final rule would update existing regulations by creating a
risk-based analysis of MTSA-regulated vessels and facilities. Based on
this analysis, each vessel or facility is classified according to its
risk level, which then determines whether the vessel or facility will
be required to use TWIC readers. Additionally, this final rule will
amend recordkeeping requirements and add requirements to amend security
plans in order to ensure compliance.
    It is well-settled that States may not regulate in categories
reserved for regulation by the Coast Guard. It is also well-settled,
now, that all of the categories covered in 46 U.S.C. 3306, 3703, 7101,
and 8101 (design, construction, alteration, repair, maintenance,
operation, equipping, personnel qualification, and manning of vessels),
as well as the reporting of casualties and any other category in which
Congress intended the Coast Guard to be the sole source of a vessel's
obligations, are within fields foreclosed from regulation by the States
or local governments. (See the decision of the Supreme Court in the
consolidated cases of United States v. Locke and Intertanko v. Locke,
529 U.S. 89, 120 S.Ct. 1135 (March 6, 2000)).
    The Coast Guard believes the Federalism principles articulated in
Locke apply to this final rule since it will require certain MTSA-
regulated vessels to carry TWIC readers or a PACS that can conduct
electronic TWIC inspection (i.e., required equipment), and to conform
to recordkeeping and security plan requirements. In enacting MTSA,
Congress articulated a need to address nationwide port security threats
while preserving the free flow of interstate and international maritime
commerce. Congress identified enhancing global maritime security
through implementing international security instruments as furthering
this statutory purpose. MTSA's comprehensive and uniform maritime
security regime, founded on the purpose of facilitating interstate and
international maritime commerce, indicates that States and local
governments are generally foreclosed from regulating within this field.
As discussed above, vessel equipping and operation are traditionally
fields foreclosed from State and local regulation. However, States and
local governments have traditionally shared certain regulatory
jurisdiction over waterfront facilities. Therefore, 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 (i.e., they would either actually 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,
Sections 4 and 6 of E.O. 13132 require that for any rules with
preemptive effect, the Coast Guard provide elected officials of
affected State and local governments and their representative national
organizations the notice and opportunity for appropriate participation
in any rulemaking proceedings, and consult with such officials early in
the rulemaking process. Therefore, we invited affected State and local
governments and their representative national organizations to indicate
their desire for participation and consultation in this rulemaking
process by submitting comments to the NPRM.
    Numerous State and local governments responded to the Coast Guard's
invitation by actively participating in this rulemaking process. State
and local government interests participated by submitting written
comments and by attending and presenting their views in person at four
public meetings we held across the country to solicit comments on this
rulemaking. All comments have been posted to the docket for this
rulemaking. Participating State and local government interests
included: Alaska Marine Highway System; American Association of Port
Authorities; Broward County, Florida Port Everglades Department;
Calhoun Port Authority; King County, Washington Department of
Transportation; New York City Department of Transportation; Port
Authority of New York and New Jersey; Port of Galveston; Port of
Houston Authority; Port of Seattle; Port of Stockton; Port of Tacoma;
and

Washington State Department of Transportation. We considered this State
and local government input in the promulgation of this final rule, and
multiple changes to the final rule are attributable to these comments.
Based on these consultations and the content of the final rule, we can
ensure that the final rule is consistent with the fundamental
federalism principles and preemption requirements described in E.O.
13132.

F. Unfunded Mandates Reform Act

    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. Though this rule will not result in
such an expenditure, we do discuss the effects of this rule elsewhere
in this preamble.

G. Taking of Private Property

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

H. Civil Justice Reform

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

I. Protection of Children

    We have analyzed this rule under E.O. 13045 (``Protection of
Children from Environmental Health Risks and Safety Risks''). Though
this rule is a ``significant regulatory action'' under E.O. 12866, it
does not create an environmental risk to health or risk to safety that
might disproportionately affect children.

J. Indian Tribal Governments

    This rule does not have tribal implications under E.O. 13175
(``Consultation and Coordination with Indian Tribal Governments''),
because it would 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 rule under E.O. 13211 (``Actions Concerning
Regulations That Significantly Affect Energy Supply, Distribution, or
Use''). We have determined that it is not a ``significant energy
action'' under E.O. 13211, because although it is a ``significant
regulatory action'' under E.O. 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 (NTTAA),
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.
    The Federal government is constantly working on improving
electronic TWIC inspection standards. Under NTTAA and OMB Circular A-
119, NIST is tasked with the role of encouraging and coordinating
Federal agency use of voluntary consensus standards and participation
in the development of relevant standards, as well as promoting
coordination between the public and private sectors in the development
of standards and in conformity assessment activities. NIST and TSA have
established the QTL and the associated standards for identity and
privilege credential products, to be managed by TSA. NIST continues to
assist TSA with the development of testing suites for qualifying
products in conformity to specified standards and TSA specifications.

M. Environment

    We have analyzed this rule under Department of Homeland Security
Management Directive 023-01 and Commandant Instruction M16475.lD, which
guide the Coast Guard in complying with the National Environmental
Policy Act of 1969, 42 U.S.C. 4321-4370f, and have concluded that this
action is not likely to have a significant effect on the human
environment. A Final Programmatic Environmental Assessment and a final
Finding of No Significant Impact are available in the docket for this
rulemaking. Our analysis indicates that electronic TWIC inspection
operations will have insignificant direct, indirect or cumulative
impacts on environmental resources, with special attention to potential
air quality issues.

List of Subjects

33 CFR Parts 101 and 103

    Harbors, Incorporation by reference, Maritime security, Reporting
and recordkeeping requirements, Security measures, Vessels, Waterways.

33 CFR Part 104

    Maritime security, Reporting and recordkeeping requirements,
Security measures, Vessels.

33 CFR Part 105

    Maritime security, Reporting and recordkeeping requirements,
Security measures.

33 CFR Part 106

    Continental shelf, Maritime security, Reporting and recordkeeping
requirements, Security measures.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR parts 101, 103, 104, 105, and 106 as follows:

PART 101--MARITIME SECURITY: GENERAL

0
1. The authority citation for part 101 continues to read as follows:

    Authority:  33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50
U.S.C. 191, 192; Executive Order 12656, 3 CFR 1988 Comp., p. 585; 33
CFR 1.05-1, 6.04-11, 6.14, 6.16, and 6.19; Department of Homeland
Security Delegation No. 0170.1.

0
2. Amend Sec.  101.105 as follows:
0
a. Add the definitions, in alphabetical order, of ``biometric match'';
``Canceled Card List (CCL)''; ``Card Holder Unique Identifier
(CHUID)''; ``card validity check''; ``Designated Recurring Access Area
(DRAA)''; ``electronic TWIC inspection''; ``identity verification'';
``Mobile Offshore Drilling Unit (MODU)''; ``Non-TWIC visual identity
verification;'' ``Offshore Supply Vessel (OSV)''; ``Physical Access
Control System (PACS)''; ``Qualified Reader''; ``Risk Group'';
``Transparent Reader''; ``TWIC reader''; and ``visual TWIC
inspection''; and

0
b. Revise the definitions of ``bulk or in bulk''; ``recurring
unescorted access''; and ``TWIC Program''.
    The revisions and additions read as follows:

Sec.  101.105  Definitions.

* * * * *
    Biometric match means a confirmation that: One of the two biometric
templates stored in the Transportation Worker Identification Credential
(TWIC) matches the scanned biometric template of the person presenting
the TWIC; or the alternate biometric stored in a Physical Access
Control System (PACS) matches the corresponding biometric of the
person.
* * * * *
    Bulk or in bulk means a commodity that is loaded or carried without
containers or labels, and that is received and handled without mark or
count. This includes cargo transferred using hoses, conveyors, or
vacuum systems.
* * * * *
    Canceled Card List (CCL) is a list of Federal Agency Smart
Credential-Numbers (FASC-Ns) that have been invalidated or revoked
because TSA has determined that the TWIC-holder may pose a security
threat, or the card has been reported lost, stolen, or damaged.
* * * * *
    Card Holder Unique Identifier (CHUID) means the standardized data
object comprised of the FASC-N, globally unique identifier, expiration
date, and certificate used to validate the data integrity of other data
objects on the credential.
    Card validity check means electronic verification that the TWIC has
not been invalidated or revoked by checking the TWIC against the TSA-
supplied list of cancelled TWICs or, for vessels and facilities not in
Risk Group A, by verifying that the expiration date on the face of the
TWIC has not passed.
* * * * *
    Designated Recurring Access Area (DRAA) means an area designated
under Sec.  101.555 where persons are permitted recurring access to a
secure area of a vessel or facility.
* * * * *
    Electronic TWIC inspection means the process by which the TWIC is
authenticated, validated, and the individual presenting the TWIC is
matched to the stored biometric template.
* * * * *
    Identity verification means the process by which an individual
presenting a TWIC is verified as the owner of the TWIC.
* * * * *
    Mobile Offshore Drilling Unit (MODU) means the same as defined in
33 CFR 140.10.
* * * * *
    Non-TWIC visual identity verification means the process by which an
individual who is known to have been granted unescorted access to a
secure area on a vessel or facility is matched to the picture on the
facility's PACS card or a government-issued identification card.
* * * * *
    Offshore Supply Vessel (OSV) means the same as defined in 46 CFR
125.160.
* * * * *
    Physical Access Control System (PACS) means a system that includes
devices, personnel, and policies, that controls access to and within a
facility or vessel.
* * * * *
    Qualified Reader means an electronic device listed on TSA's
Qualified Technology List that is capable of reading a TWIC.
    Recurring unescorted access refers to special access procedures
within a DRAA where a person may enter a secure area without passing an
electronic TWIC inspection prior to each entry into the secure area.
* * * * *
    Risk Group means the risk ranking assigned to a vessel, facility,
or OCS facility according to Sec. Sec.  104.263, 105.253, or 106.258 of
this subchapter, for the purpose of TWIC requirements in this
subchapter.
* * * * *
    Transparent Reader means a device capable of reading the
information from a TWIC or individual seeking access and transmitting
it to a system capable of conducting electronic TWIC inspection.
* * * * *
    TWIC Program means those procedures and systems that a vessel,
facility, or outer continental shelf (OCS) facility must implement in
order to assess and validate TWICs when maintaining access control.
    TWIC reader means a device capable of conducting an electronic TWIC
inspection.
* * * * *
    Visual TWIC inspection means the process by which the TWIC is
authenticated, validated, and the individual presenting the TWIC is
matched to the photograph on the face of the TWIC.
* * * * *

0
3. Add Sec.  101.112 to read as follows:

Sec.  101.112  Federalism.

    (a) The regulations in 33 CFR parts 101, 103, 104, and 106 have
preemptive effect over State or local regulation within the same field.
    (b) The regulations in 33 CFR part 105 have preemptive effect over
State or local regulations insofar as a State or local law or
regulation applicable to the facilities covered by part 105 would
conflict with the regulations in part 105, either by actually
conflicting or by frustrating an overriding Federal need for
uniformity.

Sec.  101.514  [Amended]

0
4. Amend Sec.  101.514 as follows:
0
a. In paragraph (b), remove the word ``federal'' and add, in its place,
the word ``Federal''; and
0
b. In paragraph (d), remove the word ``State,'' and add, in its place,
the word ``State''.

0
5. Amend Sec.  101.515 as follows:
0
a. In paragraph (a), remove the words ``of this part shall be required
to'' and add, in their place, the words ``must'';
0
 b. In paragraph (b)(1), remove the words ``of behalf'' and add, in
their place, the words ``on behalf'';
0
c. In paragraph (c), remove the words ``of this part''; and
0
 d. Revise paragraph (d)(2).
    The revision reads as follows:

Sec.  101.515  TWIC/Personal Identification.

* * * * *
    (d)* * *
    (2) Each person who has been issued or possesses a TWIC must pass
an electronic TWIC inspection, and must submit his or her reference
biometric, such as a fingerprint, and any other required information,
such as a Personal Identification Number, upon a request from TSA, the
Coast Guard, any other authorized DHS representative, or a Federal,
State, or local law enforcement officer.

0
6. Add Sec.  101.520 to subpart E to read as follows:

Sec.  101.520  Electronic TWIC inspection.

    To conduct electronic TWIC inspection, the owner or operator of a
vessel or facility must ensure the following actions are performed.
    (a) Card authentication. The TWIC must be authenticated by
performing a challenge/response protocol using the Certificate for Card
Authentication (CCA) and the associated card authentication private key
stored in the TWIC.
    (b) Card validity check. The TWIC must be checked to ensure the
TWIC has not expired and against TSA's list of cancelled TWICs, and no
match on the list may be found.
    (c) Identity verification. (1) One of the biometric templates
stored in the TWIC must be matched to the TWIC-holder's

live sample biometric or, by matching to the PACS enrolled reference
biometrics linked to the FASC-N of the TWIC; or
    (2) If an individual is unable to provide a valid live sample
biometric, the TWIC-holder must enter a Personal Identification Number
(PIN) and pass a visual TWIC inspection.

0
7. Add Sec.  101.525 to subpart E to read as follows:

Sec.  101.525  TSA list of cancelled TWICs.

    (a) At Maritime Security (MARSEC) Level 1, the card validity check
must be conducted using information from the TSA that is no more than 7
days old.
    (b) At MARSEC Level 2, the card validity check must be conducted
using information from the TSA that is no more than 1 day old.
    (c) At MARSEC Level 3, the card validity check must be conducted
using information from the TSA that is no more than 1 day old.
    (d) The list of cancelled TWICs used to conduct the card validity
check must be updated within 12 hours of any increase in MARSEC level,
no matter when the information was last updated.
    (e) Only the most recently obtained list of cancelled TWICs must be
used to conduct card validity checks.

0
8. Add Sec.  101.530 to subpart E to read as follows:

Sec.  101.530  PACS requirements for Risk Group A.

    This section lays out requirements for a Physical Access Control
System (PACS) that may be used to meet electronic TWIC inspection
requirements.
    (a) A PACS may use a TWIC directly to perform electronic TWIC
inspection;
    (b) Each PACS card issued to an individual must be linked to that
individual's TWIC, and the PACS must contain the following information
from each linked TWIC:
    (1) The name of the TWIC-holder holder as represented in the
Printed Information container of the TWIC.
    (2) The TWIC-signed CHUID (with digital signature and expiration
date).
    (3) The TWIC resident biometric template.
    (4) The TWIC digital facial image.
    (5) The PACS Personal Identification Number (PIN).
    (c) When first linked, a one-time electronic TWIC inspection must
be performed, and the TWIC must be verified as authentic, valid, and
biometrically matched to the individual presenting the TWIC.
    (d) Each time the PACS card is used to gain access to a secure
area, the PACS must--
    (1) Conduct identity verification by:
    (i) Conducting a biometric scan, and match the result with the
biometric template stored in the PACS that is linked to the TWIC, or
    (ii) Having the individual enter a stored PACS PIN and conducting a
Non-TWIC visual identity verification as defined in Sec.  101.105.
    (2) Conduct a card validity check; and
    (3) Maintain records in accordance with Sec. Sec.  104.235(g) or
105.225(g) of this subchapter, as appropriate.

0
9. Add Sec.  101.535 to subpart E to read as follows:

Sec.  101.535  Electronic TWIC inspection requirements for Risk Group
A.

    Owners or operators of vessels or facilities subject to part 104 or
105 of this subchapter, that are assigned to Risk Group A in Sec. Sec.
104.263 or 105.253 of this subchapter, must ensure that a
Transportation Worker Identification Credential (TWIC) Program is
implemented as follows:
    (a) Requirements for Risk Group A vessels. Prior to each boarding
of the vessel, all persons who require access to a secure area of the
vessel must pass an electronic TWIC inspection before being granted
unescorted access to the vessel.
    (b) Requirements for Risk Group A facilities. Prior to each entry
into a secure area of the facility, all persons must pass an electronic
TWIC inspection before being granted unescorted access to secure areas
of the facility.
    (c) A Physical Access Control System that meets the requirements of
Sec.  101.530 may be used to meet the requirements of this section.
    (d) The requirements of this section do not apply under certain
situations described in Sec. Sec.  101.550 or 101.555.
    (e) Emergency access to secure areas, including access by law
enforcement and emergency responders, does not require electronic TWIC
inspection.

0
10. Add Sec.  101.540 to subpart E to read as follows:

Sec.  101.540  Electronic TWIC inspection requirements for vessels,
facilities, and OCS facilities not in Risk Group A.

    A vessel or facility not in Risk Group A may use the electronic
TWIC inspection requirements of Sec.  101.535 in lieu of visual TWIC
inspection. If electronic TWIC inspection is used, the recordkeeping
requirements of Sec. Sec.  104.235(b)(9) and (c) of this subchapter, or
105.225(b)(9) and (c) of this subchapter, as appropriate, apply.

Sec.  101.545  [Added and Reserved]

0
 11. Add reserved Sec.  101.545 to subpart E.

0
 12. Add Sec.  101.550 to subpart E to read as follows:

Sec.  101.550  TWIC inspection requirements in special circumstances.

    Owners or operators of any vessel, facility, or Outer Continental
Shelf (OCS) facility subject to part 104, 105, or 106 of this
subchapter must ensure that a Transportation Worker Identification
Credential (TWIC) Program is implemented as follows:
    (a) Lost, damaged, stolen, or expired TWIC. If an individual cannot
present a TWIC because it has been lost, damaged, stolen, or expired,
and the individual previously has been granted unescorted access to
secure areas and is known to have had a TWIC, the individual may be
granted unescorted access to secure areas for a period of no longer
than 30 consecutive calendar days if--
    (1) The individual provides proof that he or she has reported the
TWIC as lost, damaged, or stolen to the Transportation Security
Administration (TSA) as required in 49 CFR 1572.19(f), or the
individual provides proof that he or she has applied for the renewal of
an expired TWIC;
    (2) The individual can present another identification credential
that meets the requirements of Sec.  101.515; and
    (3) There are no other suspicious circumstances associated with the
individual's claim that the TWIC was lost, damaged, or stolen.
    (b) TWIC on the Canceled Card List. In the event an individual
reports his or her TWIC as lost, damaged, or stolen, and that TWIC is
then placed on the Canceled Card List, the individual may be granted
unescorted access by a Physical Access Control System (PACS) that meets
the requirements of Sec.  101.530 for a period of no longer than 30
days. The individual must be known to have had a TWIC, and known to
have reported the TWIC as lost, damaged, or stolen to TSA.
    (c) Special requirements for Risk Group A vessels and facilities.
If a TWIC reader or a PACS cannot read an individual's biometric
templates due to poor biometric quality or no biometrics enrolled, the
owner or operator may grant the individual unescorted access to secure
areas based on either of the following secondary authentication
procedures:
    (1) The owner or operator must conduct a visual TWIC inspection and
require the individual to correctly submit his or her TWIC Personal
Identification Number.
    (2) [Reserved]
    (d) If an individual cannot present a TWIC for any reason other
than those

outlined in paragraphs (a) or (b) of this section, the vessel or
facility operator may not grant the individual unescorted access to
secure areas. The individual must be under escort at all times while in
the secure area.
    (e) With the exception of individuals granted access according to
paragraphs (a) or (b) of this section, all individuals granted
unescorted access to secure areas of a vessel, facility, or OCS
facility must be able to produce their TWICs upon request from the TSA,
the Coast Guard, another authorized Department of Homeland Security
representative, or a Federal, State, or local law enforcement officer.
    (f) There must be disciplinary measures in place to prevent fraud
and abuse.
    (g) Owners or operators must establish the frequency of the
application of any security measures for access control in their
approved security plans, particularly if these security measures are
applied on a random or occasional basis.
    (h) The vessel, facility, or OCS facility operator should
coordinate the TWIC Program, when practical, with identification and
TWIC access control measures of other entities that interface with the
vessel, facility, or OCS facility.

0
13. Add Sec.  101.555 to subpart E to read as follows:

Sec.  101.555  Recurring Unescorted Access for Risk Group A vessels and
facilities.

    This section describes how designated TWIC-holders may access
certain secure areas on Risk Group A vessels and facilities on a
continual and repeated basis without undergoing repeated electronic
TWIC inspections.
    (a) An individual may enter a secure area on a vessel or facility
without undergoing an electronic TWIC inspection under the following
conditions:
    (1) Access is through a Designated Recurring Access Area (DRAA),
designated under an approved Vessel, Facility, or Joint Vessel-Facility
Security Plan.
    (2) The entire DRAA is continuously monitored by security personnel
at the access points to secure areas used by personnel seeking
Recurring Unescorted Access.
    (3) The individual possesses a valid TWIC.
    (4) The individual has passed an electronic TWIC inspection within
each shift and in the presence of the on-scene security personnel.
    (5) The individual passes an additional electronic TWIC inspection
prior to being granted unescorted access to a secure area if he or she
enters an unsecured area outside the DRAA and then returns.
    (b) The following requirements apply to a DRAA:
    (1) It must consist of an unsecured area where personnel will be
moving into an adjacent secure area repeatedly.
    (2) The entire DRAA must be visible to security personnel.
    (3) During operation as a DRAA, there must be security personnel
present at all times.
    (c) An area may operate as a DRAA at certain times, and during
other times, access to secure areas may be obtained through the
procedures in Sec.  101.535.
    (d) Personnel may enter the secure areas adjacent to a DRAA at any
time using the procedures in Sec.  101.535.

PART 103--MARITIME SECURITY: AREA MARITIME SECURITY

0
 14. The authority citation for part 103 continues to read as follows:

    Authority:  33 U.S.C. 1226, 1231; 46 U.S.C. 70102, 70103, 70104,
70112; 50 U.S.C. 191; 33 CFR 1.05-1, 6.04-11, 6.14, 6.16, and 6.19;
Department of Homeland Security Delegation No. 0170.1.

Sec.  103.505  [Amended]

0
15. Amend Sec.  103.505(f) by removing the words ``(e.g., TWIC)''.

PART 104--MARITIME SECURITY: VESSELS

0
 16. The authority citation for part 104 continues to read as follows:

    Authority:  33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50
U.S.C. 191; 33 CFR 1.05-1, 6.04-11, 6.14, 6.16, and 6.19; Department
of Homeland Security Delegation No. 0170.1.

Sec.  104.105  [Amended]

0
17. Amend Sec.  104.105(d) by removing the words ``this part'' and
adding, in their place, the words ``parts 101 and 104 of this
subchapter''.

0
18. Add Sec.  104.110(c) to read as follows:

Sec.  104.110  Exemptions.

* * * * *
    (c) Vessels with a minimum manning requirement of 20 or fewer TWIC-
holding crewmembers are exempt from the requirements in 33 CFR
101.535(a)(1).

0
 19. Amend Sec.  104.115 as follows:
0
a. Revise paragraph (c); and
0
b. Remove paragraph (d).
    The revision reads as follows:

Sec.  104.115  Compliance.

* * * * *
    (c) By August 23, 2018, owners and operators of vessels subject to
this part must amend their Vessel Security Plans to indicate how they
will implement the TWIC requirements in this subchapter. By August 23,
2018, owners and operators of vessels subject to this part must operate
in accordance with the TWIC provisions found within this subchapter.

Sec.  104.120  [Amended]

0
20. Amend Sec.  104.120(a) introductory text by removing the words ``,
on or before July 1, 2004,''.

Sec.  104.200  [Amended]

0
21. Amend Sec.  104.200 as follows:
0
a. In paragraph (b)(12) introductory text, remove the word ``part'' and
add, in its place, the word ``subchapter''; and
0
 b. In paragraph (b)(14), remove the words ``Sec.  104.265(c) of this
part'' and add, in their place, the words ``Sec.  101.550(a) of this
subchapter''.

Sec.  104.215  [Amended]

0
22. Amend Sec.  104.215 as follows:
0
 a. In paragraph (b)(5), remove the second use of the word ``and'';
0
b. In paragraph (b)(6), remove the symbol ``.'' and add, in its place,
the word ``; and''; and
0
 c. In paragraph (b)(7), after the word ``TWIC'', add the symbol ``.''.

0
23. Amend Sec.  104.235 as follows:
0
 a. In paragraph (b)(7), remove the second use of the word ``and'';
0
b. In paragraph (b)(8), remove the symbol ``.'' and add, in its place,
the word ``; and'';
0
c. Add paragraph (b)(9); and
0
d. Revise paragraph (c).
    The addition and revision read as follows:

Sec.  104.235  Vessel recordkeeping requirements.

* * * * *
    (b) * * *
    (9) Electronic Reader/Physical Access Control System (PACS). For
each individual granted unescorted access to a secure area, the: FASC-
N; date and time that unescorted access was granted; and, if captured,
the individual's name. Additionally, documentation to demonstrate that
the owner or operator has updated the Canceled Card List with the
frequency required in Sec.  101.525 of this subchapter.
    (c) Any records required by this part must be protected from
unauthorized access or disclosure. TWIC reader records and similar
records in a PACS are sensitive security information and must be
protected in accordance with 49 CFR part 1520.

Sec.  104.260  [Amended]

0
24. Amend Sec.  104.260(b) by removing the word ``shall'' wherever it
appears

and adding in its place the word ``must''.

0
 25. Add Sec.  104.263 to read as follows:

Sec.  104.263  Risk Group classifications for vessels.

    (a) For purposes of the Transportation Worker Identification
Credential requirements of this subchapter, the following vessels
subject to this part are in Risk Group A:
    (1) Vessels that carry Certain Dangerous Cargoes in bulk.
    (2) Vessels certificated to carry more than 1,000 passengers.
    (3) Any vessel engaged in towing a vessel subject to paragraph
(a)(1) or (a)(2) of this section.
    (b) Vessels may move from one Risk Group classification to another,
based on the cargo they are carrying or handling at any given time. An
owner or operator expecting a vessel to move between Risk Groups must
explain, in the Vessel Security Plan, the timing of such movements, as
well as how the vessel will move between the requirements of the higher
and lower Risk Groups, with particular attention to the security
measures to be taken moving from a lower Risk Group to a higher Risk
Group.

0
26. Amend Sec.  104.265 as follows:
0
a. Revise paragraph (a)(4);
0
b. Remove paragraphs (c) and (d);
0
 c. Redesignate paragraphs (e) through (h) as (c) through (f),
respectively;
0
 d. Revise newly redesignated paragraph (d)(1);
0
e. In newly redesignated paragraph (e)(6), remove the word ``and'';
0
f. In newly redesignated paragraph (e)(7), remove the symbol ``.'' and
add, in its place, the word ``; or'';
0
g. Add paragraph (e)(8);
0
 h. In newly redesignated paragraph (f)(9), remove the word ``or'';
0
i. In newly redesignated paragraph (f)(10), remove the symbol ``.'' and
add, in its place, the word ``; or''; and
0
j. Add paragraph (f)(11).
    The revisions and additions read as follows:

Sec.  104.265  Security measures for access control.

    (a) * * *
    (4) Prevent an unescorted individual from entering an area of the
vessel that is designated as a secure area unless the individual holds
a duly issued TWIC and is authorized to be in the area. Individuals
seeking unescorted access to a secure area on a vessel in Risk Group A
must pass electronic TWIC inspection and those seeking unescorted
access to a secure area on a vessel not in Risk Group A must pass
either electronic TWIC inspection or visual TWIC inspection.
* * * * *
    (d) * * *
    (1) Implement a TWIC Program as set out in subpart E of part 101 of
this subchapter, as applicable, and in accordance with the vessel's
assigned Risk Group, as set out in Sec.  104.263;
* * * * *
    (e) * * *
    (8) Implementing additional electronic TWIC inspection
requirements, as required by Sec.  104.263, and by subpart E of part
101 of this subchapter, if relevant.
* * * * *
    (f) * * *
    (11) Implementing additional electronic TWIC inspection
requirements, as required by Sec.  104.263, and by subchapter E of part
101 of this subchapter, if relevant.

Sec.  104.267  [Amended]

0
27. Amend Sec.  104.267(a) by removing the last sentence.

Sec.  104.292  [Amended]

0
28. Amend Sec.  104.292 as follows:
0
a. In paragraph (b) introductory text, remove the words ``Sec.
104.265(f)(2), (f)(4), and (f)(9)'' and add, in their place, the words
``Sec.  104.265(d)(2), (d)(4), and (d)(9)'', and remove the symbol
``:'' and add, in its place, the symbol ``--'';
0
b. In paragraph (e)(3), remove the words ``Sec.  104.265(f)(4) and
(g)(1)'' and add, in their place, the words ``Sec.  104.265(d)(4) and
(e)(1)''; and
0
c. In paragraph (f), remove the words ``Sec.  104.265(f)(4) and
(h)(1)'', and add, in their place, the words ``Sec.  104.265(d)(4) and
(f)(1)''.

0
29. Amend Sec.  104.405 as follows:
0
a. Revise paragraph (a)(10); and
0
b. In paragraph (b), remove the last sentence.
    The revision reads as follows:

Sec.  104.405  Format of the Vessel Security Plan (VSP).

    (a) * * *
    (10) Security measures for access control, including the vessel's
TWIC Program, designated passenger access areas and employee access
areas;
* * * * *

Sec.  104.410  [Amended]

0
30. Amend Sec.  104.410 as follows:
0
a. In paragraph (a) introductory text, remove the words ``on or before
December 31, 2003,'', and remove the symbol ``:'' and add, in its
place, the symbol ``--'';
0
b. In paragraph (b), remove the words ``or by December 31, 2003,
whichever is later''; and
0
c. In paragraph (c) introductory text, remove the symbol ``:'' and add,
in its place, the symbol ``--''.

PART 105--MARITIME SECURITY: FACILITIES

0
31. The authority citation for part 105 continues to read as follows:

    Authority:  33 U.S.C. 1226, 1231; 46 U.S.C. 70103; 50 U.S.C.
191; 33 CFR 1.05-1, 6.04-11, 6.14, 6.16, and 6.19; Department of
Homeland Security Delegation No. 0170.1.

0
32. Revise Sec.  105.110 to read as follows:

Sec.  105.110  Exemptions.

    (a) A public access area designated under Sec.  105.106 is exempt
from the requirements for screening of persons, baggage, and personal
effects and identification of persons in subpart E of part 101 of this
subchapter, as applicable, in Sec. Sec.  105.255 and Sec.
105.285(a)(1).
    (b) An owner or operator of any general shipyard facility as
defined in Sec.  101.105 of this subchapter is exempt from the
requirements of this part unless the facility--
    (1) Is subject to parts 126, 127, or 154 of this chapter; or
    (2) Provides any other service to vessels subject to part 104 of
this subchapter not related to construction, repair, rehabilitation,
refurbishment, or rebuilding.
    (c) Public access facility. (1) The COTP may exempt a public access
facility from the requirements of this part, including establishing
conditions for which such an exemption is granted, to ensure that
adequate security is maintained.
    (2) The owner or operator of any public access facility exempted
under this section must--
    (i) Comply with any COTP conditions for the exemption; and
    (ii) Ensure that the cognizant COTP has the appropriate information
for contacting the individual with security responsibilities for the
public access facility at all times.
    (3) The cognizant COTP may withdraw the exemption for a public
access facility at any time the owner or operator fails to comply with
any requirement of the COTP as a condition of the exemption or any
measure ordered by the COTP pursuant to existing COTP authority.
    (d) An owner or operator of a facility is not subject to this part
if the facility receives only vessels to be laid-up, dismantled, or
otherwise placed out of commission provided that the vessels are not
carrying and do not receive cargo or passengers at that facility.

    (e) Barge fleeting facilities without shore side access are exempt
from the requirements in 33 CFR 101.535(b)(1).

0
33. Revise Sec.  105.115 to read as follows:

Sec.  105.115  Compliance dates.

    (a) Facility owners or operators must submit to the cognizant
Captain of the Port (COTP) for each facility--
    (1) The Facility Security Plan (FSP) described in subpart D of this
part for review and approval; or
    (2) If intending to operate under an approved Alternative Security
Program, a letter signed by the facility owner or operator stating
which approved Alternative Security Program the owner or operator
intends to use.
    (b) Facility owners or operators wishing to designate only those
portions of their facility that are directly connected to maritime
transportation or are at risk of being involved in a transportation
security incident as their secure area(s) must do so by submitting an
amendment to their FSP to their cognizant COTP, in accordance with
Sec.  105.415.
    (c) By August 23, 2018, owners and operators of facilities subject
to this part must amend their FSPs to indicate how they will implement
the TWIC requirements in this subchapter. By August 23, 2018, owners
and operators of facilities subject to this part must be operating in
accordance with the TWIC provisions found within this subchapter.

Sec.  105.120  [Amended]

0
34. Amend the introductory text of Sec.  105.120 by removing the words
``, on or before July 1, 2004,''.

Sec.  105.200  [Amended]

0
35. Amend Sec.  105.200 as follows:
0
a. In paragraph (b) introductory text, remove the symbol ``:'' and add,
in its place, the symbol ``--'';
0
b. In paragraph (b)(6), remove the word ``program'' and add, in its
place, the word ``Program'', and remove the word ``part'' and add, in
its place, the word ``subchapter'', and remove the symbol ``:'' and
add, in its place, the symbol ``--'';
0
c. In paragraph (b)(15), remove the words ``section 105.255(c) of this
part'' and add, in their place, the words ``Sec.  101.550 of this
subchapter''; and
0
d. In paragraph (b)(16), remove the words ``of this part''.

0
36. Amend Sec.  105.225 as follows:
0
a. In paragraph (b)(7), remove the second use of the word ``and'';
0
b. In paragraph (b)(8), remove the symbol ``.'' and add, in its place,
the word ``; and'';
0
c. Add paragraph (b)(9); and
0
d. Revise paragraph (c).
    The addition and revision read as follows:

Sec.  105.225  Facility recordkeeping requirements.

* * * * *
    (b) * * *
    (9) TWIC Reader/Physical Access Control System (PACS). For each
individual granted unescorted access to a secure area, the: FASC-N;
date and time that unescorted access was granted; and, if captured, the
individual's name. Additionally, documentation to demonstrate that the
owner or operator has updated the Canceled Card List with the frequency
required in Sec.  101.525 of this subchapter.
    (c) Any record required by this part must be protected from
unauthorized access or disclosure. Electronic reader records and
similar records in a PACS are sensitive security information and must
be protected in accordance with 49 CFR part 1520.

0
37. Add Sec.  105.253 to read as follows:

Sec.  105.253  Risk Group classifications for facilities.

    (a) For purposes of the Transportation Worker Identification
Credential (TWIC) requirements of this subchapter, the following
facilities subject to this part are in Risk Group A:
    (1) Facilities that handle Certain Dangerous Cargoes (CDC) in bulk
or receive vessels carrying CDC in bulk.
    (2) Facilities that receive vessels certificated to carry more than
1,000 passengers.
    (b) Facilities may move from one Risk Group classification to
another, based on the material they handle or the types of vessels they
receive at any given time. An owner or operator of a facility expected
to move between Risk Groups must explain, in the Facility Security
Plan, the timing of such movements, as well as how the facility will
move between the requirements of the higher and lower Risk Groups, with
particular attention to the security measures to be taken when moving
from a lower Risk Group to a higher Risk Group.

0
38. Amend Sec.  105.255 as follows:
0
a. Revise paragraph (a)(4);
0
b. Remove paragraphs (c) and (d);
0
c. Redesignate paragraphs (e) through (h) as (c) through (f),
respectively;
0
d. Revise newly redesignated paragraph (d)(1);
0
e. In newly redesignated paragraph (d)(4) introductory text, remove the
word ``shall'' and add, in its place, the word ``must'';
0
f. In newly redesignated paragraph (d)(4)(vi), remove the words
``paragraph (d) of this section'' and add, in their place, the words
``subpart E of part 101 of this subchapter'';
0
g. In newly redesignated paragraph (e)(6), remove the word ``or'';
0
h. In newly redesignated paragraph (e)(7), remove the symbol ``.'' and
add, in its place, the word ``; or'';
0
i. Add paragraph (e)(8);
0
j. In newly redesignated paragraph (f)(8), remove the word ``or'';
0
k. In newly redesignated paragraph (f)(9), remove the symbol ``.'' and
add, in its place, the word ``; or''; and
0
l. Add paragraph (f)(10).
    The revisions and additions read as follows:

Sec.  105.255  Security measures for access control.

    (a) * * *
    (4) Prevent an unescorted individual from entering an area of the
facility that is designated as a secure area unless the individual
holds a duly issued TWIC and is authorized to be in the area.
Individuals seeking unescorted access to a secure area in a facility in
Risk Group A must pass electronic TWIC inspection and those seeking
unescorted access to a secure area in a facility not in Risk Group A
must pass either electronic TWIC inspection or visual TWIC inspection.
* * * * *
    (d) * * *
    (1) Implement a TWIC Program as set out in subpart E of part 101 of
this subchapter, as applicable, and in accordance with the facility's
assigned Risk Group, as set out in Sec.  105.253.
* * * * *
    (e) * * *
    (8) Implementing additional electronic TWIC inspection
requirements, as required by Sec.  105.253, and by subpart E of part
101 of this subchapter, if relevant.
* * * * *
    (f) * * *
    (10) Implementing additional electronic TWIC inspection
requirements, as required by Sec.  105.253, and by subchapter E of part
101 of this subchapter, if relevant.

Sec.  105.257  [Amended]

0
39. Amend Sec.  105.257(a) by removing the last sentence.

Sec.  105.290  [Amended]

0
40. Amend Sec.  105.290(b) by removing the word ``shall'' and adding,
in its place, the word ``must'', and by removing the words ``this
part'' and adding, in their place, the words ``subpart E of part 101 of
this subchapter''.

Sec.  105.296  [Amended]

0
41. Amend Sec.  105.296(a)(4) by removing the words ``Sec.  105.255 of
this part'' and adding, in their place, the words ``subpart E of part
101 of this subchapter, as applicable, and in accordance with the
facility's assigned Risk Group, as described in Sec.  105.253''.

0
 42. Amend Sec.  105.405 as follows:
0
 a. Revise paragraph (a)(10); and
0
 b. In paragraph (b), remove the last sentence.
    The revision reads as follows:

Sec.  105.405  Format and content of the Facility Security Plan (FSP).

    (a) * * *
    (10) Security measures for access control, including the facility's
TWIC Program and designated public access areas;
* * * * *

Sec.  105.410  [Amended]

0
43. Amend Sec.  105.410 as follows:
0
a. In paragraph (a) introductory text, remove the words ``On or before
December 31, 2003, the'' and add, in their place, the word ``The''; and
0
b. In paragraph (b), remove the words ``or by December 31, 2003,
whichever is later''.

PART 106--MARINE SECURITY: OUTER CONTINENTAL SHELF (OCS) FACILITIES

0
44. The authority citation for part 106 continues to read as follows:

    Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50
U.S.C. 191; 33 CFR 1.05-1, 6.04-11, 6.14, 6.16, and 6.19; Department
Of Homeland Security Delegation No. 0170.1.

0
45. Revise Sec.  106.110 to read as follows:

Sec.  106.110  Compliance dates.

    (a) OCS facility owners or operators must submit to the cognizant
District Commander for each OCS facility--
    (1) The Facility Security Plan described in subpart D of this part
for review and approval; or
    (2) If intending to operate under an approved Alternative Security
Program, a letter signed by the OCS facility owner or operator stating
which approved Alternative Security Program the owner or operator
intends to use.
    (b) OCS facilities built on or after July 1, 2004 must submit a
Facility Security Plan for approval 60 days prior to beginning
operations.

Sec.  106.115  [Amended]

0
46. Amend the introductory text of Sec.  106.115 by removing the words
``before July 1, 2004,''.

Sec.  106.200  [Amended]

0
47. Amend Sec.  106.200 as follows:
0
a. In paragraph (b)(6) introductory text, remove the word ``program''
and add, in its place, the word ``Program'', and remove the word
``part'' and add, in its place, the word ``subchapter'';
0
b. In paragraph (b)(8), remove the word ``Level'' wherever it appears
and add, in each place, the word ``level'';
0
 c. In paragraph (b)(9), after the word ``with'', add the words ``the
requirements in''; and
0
d. In paragraph (b)(12), remove the words ``Sec.  106.260(c) of this
part'' and add, in their place, the words ``Sec.  101.550 of this
subchapter''.

0
48. Add Sec.  106.258 to read as follows:

Sec.  106.258  Risk Group classification for OCS facilities.

    For the purposes of this subchapter, no OCS facilities are
considered Risk Group A.

0
 49. Amend Sec.  106.260 as follows:
0
a. Remove paragraphs (c) and (d);
0
b. Redesignate paragraphs (e) through (h) as (c) through (f),
respectively;
0
c. Revise newly redesignated paragraph (d)(1);
0
 d. In newly redesignated paragraph (e)(3), remove the word ``or'';
0
e. In newly redesignated paragraph (e)(4), remove the symbol ``.'' and
add, in its place, the word ``; or'';
0
 f. Add paragraph (e)(5);
0
 g. In newly redesignated paragraph (f)(7), remove the word ``or'';
0
 h. In newly redesignated paragraph (f)(8), remove the symbol ``.'' and
add, in its place, the word ``; or''; and
0
 i. Add paragraph (f)(9).
    The revisions and additions read as follows:

Sec.  106.260  Security measures for access control.

* * * * *
    (d) * * *
    (1) Implement TWIC as set out in subpart E of part 101 of this
subchapter and in accordance with the OCS facility's assigned Risk
Group, as set out in Sec.  106.258.
* * * * *
    (e) * * *
    (5) Implementing additional electronic TWIC inspection
requirements, as required by Sec.  106.258, and by subpart E of part
101 of this subchapter.
    (f) * * *
    (9) Implementing additional electronic TWIC inspection
requirements, as required by Sec.  106.258, and by subpart E of part
101 of this subchapter.

Sec.  106.262  [Amended]

0
50. Amend Sec.  106.262(a) by removing the last sentence.
0
 51. Amend Sec.  106.405 as follows:

0
a. Revise paragraph (a)(10); and
0
b. In paragraph (b), remove the last sentence.
    The revision reads as follows:

Sec.  106.405  Format and content of the Facility Security Plan (FSP).

    (a) * * *
    (10) Security measures for access control, including the OCS
facility's TWIC Program;
* * * * *

Sec.  106.410  [Amended]

0
52. Amend Sec.  106.410 as follows:
0
a. In paragraph (a) introductory text, remove the words ``On or before
December 31, 2003, the'' and add, in their place, the word ``The'' and
remove the symbol ``:'' and add, in its place, the symbol ``--''; and
0
 b. In paragraph (b), remove the words ``or by December 31, 2003,
whichever is later''.

    Dated: August 8, 2016.
 Paul F. Zukunft,
Admiral, Commandant, U.S. Coast Guard.
[FR Doc. 2016-19383 Filed 8-22-16; 8:45 am]
 BILLING CODE 9110-04-P