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This proposed rule would partially delay the effective date for the final rule entitled "Transportation Worker Identification Credential (TWIC) Reader Requirements," published in the Federal Register on August 23, 2016. Currently, the final rule is scheduled to be implemented after the Department of Homeland Security submits the report to Congress on the effectiveness of the TWIC program, required by the Transportation Worker Identification Credential Security Card Program Improvements and Assessment Act (Pub. L. 114-278). This proposed rule would further delay the effective date for certain facilities that handle certain dangerous cargoes (CDCs) in bulk or receive vessels carrying CDC in bulk.

Statement of Need:

After the publication of the Final Rule, the Coast Guard received inquiries from owners of facilities and vessels concerning the rule's requirements regarding the facilities affected by the final rule and several questions related to how the final rule addressed Certain Dangerous Cargoes. This proposed rule would provide the Coast Guard time to update its security-related databases and consider policy options relating to implementation of TWIC readers while addressing the inquiries.

Summary of the Legal Basis:

Alternatives:

Anticipated Costs and Benefits:

The NPRM estimated annualized cost savings to both industry and government as $1.15 million, using a seven percent discount rate and a 10-year period of analysis. Using a perpetual period of analysis, we estimated total annualized discounted cost savings of the rule would be approximately $0.552 million in 2016 dollars, discounted at 7 percent. The benefits for partially delaying the effective date of the final rule for an additional 3 years are that it would allow the Coast Guard time to conduct additional analysis of the potential effects of the rule.

Risks: