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Statement of Need: This rulemaking is needed to incorporate Coast Guard Policy Advisory Council (PAC) decisions on the interpretation of regulations, guidance provided in response to questions to the Maritime Transportation Security Act of 2002 (MTSA) hotline, and to implement various requirements found in the Security and Accountability for Every Port Act of 2006 and the Coast Guard and Maritime Transportation Act of 2006. In addition, this rulemaking is needed to incorporate recommendations from the Merchant Marine Personnel Advisory Committee. It also incorporates various U.S. Maritime Administration and International Maritime Organization voluntary consensus standards related to maritime security training.

Summary of the Legal Basis: The fundamental legal basis for subchapter H remains the Maritime Transportation Security Act of 2002 as amended by the Security and Accountability for Every Port Act of 2006 and the Coast Guard and Maritime Transportation Act of 2006.

Alternatives: The Coast Guard is currently evaluating a number of alternatives based on applicability and risk (threat, vulnerability, and consequence). However, an overall update to make necessary changes to subchapter H and address improvements resulting from our experience since 2003 is prudent.

Anticipated Costs and Benefits: The Coast Guard is currently estimating the costs associated with this rulemaking. Industry would incur additional costs as a result of provisions for standardized training requirements, updates to security plans and other documentation, and full-scale exercises requirements for high-risk facilities. The potential benefit from these provisions is reduction in risk of security incidents. This rulemaking expands and improves competencies associated with Maritime Domain Awareness (MDA). MDA is the effective understanding of anything associated with the global maritime domain that could impact the United States’ security, safety, economy, or environment. The proposed rule would improve MDA through training, exercise, and security plan enhancements. As a result, the primary benefit of the proposed rule would result from reducing the risk of a Transportation Security Incident (TSI) and therefore averting or mitigating the economic and environmental consequences of a TSI.

Risks: With this rulemaking, the Coast Guard seeks to maintain the risk reduction goals established with the promulgation of the original MTSA regulations and further reduce risks by incorporating provisions related to more recent legislation and warranted by our experience with subchapter H since 2003.