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Statement of Need: The Transportation Security Administration (TSA) is issuing a final rule to establish security requirements for freight railroad carriers; intercity, commuter, and short-haul passenger train service providers; rail transit systems; and rail operations at certain fixed-site facilities that ship or receive specified hazardous materials by rail. This rule codifies the scope of TSA’s existing inspection program and requires regulated parties to allow TSA and Department of Homeland Security (DHS) officials to enter, inspect, and test property, facilities, and records relevant to rail security. This rule also requires that regulated parties designate rail security coordinators and report significant security concerns to DHS. This final rule focuses on shipments of certain hazardous materials, establishing chain of custody and control procedures, reporting of location and shipping information to TSA upon request, and other measures for rail cars that pose the greatest security vulnerabilities. TSA also clarifies and amends the sensitive security information (SSI) protections to cover certain information associated with rail transportation.

Summary of the Legal Basis: TSA has the responsibility for enhancing security in all modes of transportation. Under ATSA, and delegated authority from the Secretary of Homeland Security, TSA has broad responsibility and authority for "security in all modes of transportation * * * including security responsibilities" over modes of transportation that are exercised by the Department of Transportation. TSA's authority with respect to transportation security is comprehensive and supported with specific powers related to the development and enforcement of regulations, security directives, security plans, and other requirements. Accordingly, under this authority, TSA may assess a security risk for any mode of transportation, develop security measures for dealing with that risk, and enforce compliance with those measures.

Anticipated Costs and Benefits: The primary estimate of the total ten-year cost of the final rule discounted at 7% is from $153 million to $174 million. The main costs are from the chain of custody and location reporting requirements. The final rule will enhance rail transportation security by imposing national requirements to appoint rail security coordinators, report significant security concerns, and implement location reporting and chain of custody requirements. In addition, the broad inspection authorities codified in the final rule may help identify vulnerabilities in rail transportation that should be addressed in future rulemakings or through other mechanisms. Finally, changes to the SSI provisions will allow access to information by State, local, and tribal authorities that may assist them in addressing security threats.