2024-24780. TWIC-Reader Requirements; Second Delay of Effective Date

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.

( print page 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 ( print page 86730) bulk CDC, but, during that vessel-to-facility 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-to-facility 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.
( print page 86731)
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.

( print page 86732)

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
( print page 86733)
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. ( print page 86734)

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. ( print page 86735)
~ 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)
( print page 86736)
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-to-facility 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.

( print page 86737)

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.