[Federal Register Volume 79, Number 184 (Tuesday, September 23, 2014)]
[Rules and Regulations]
[Pages 56663-56668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22617]


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DEPARTMENT OF HOMELAND SECURITY

Transportation Security Administration

49 CFR Part 1511

[Docket No. TSA-2002-11334; Amendment No. 1511-3]
RIN 1652-AA01


Cessation of the Aviation Security Infrastructure Fee (ASIF)

AGENCY: Transportation Security Administration, DHS.

ACTION: Final rule.

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SUMMARY: The Transportation Security Administration (TSA) is issuing 
this final rule to conform its regulations to the repeal of the 
authority to impose the Aviation Security Infrastructure Fee (ASIF) on 
air carriers and foreign air carriers in air transportation.

DATES: This rule is effective at 11:59 p.m. (Eastern Daylight Time) on 
September 30, 2014.

FOR FURTHER INFORMATION CONTACT: Michael Gambone, Office of Revenue, 
TSA-14, Transportation Security Administration, 601 South 12th Street, 
Arlington, VA 20598-6014; telephone (571) 227-2323; email: [email protected].

SUPPLEMENTARY INFORMATION: 

Availability of Rulemaking Document

    You may obtain an electronic copy using the Internet by--
    (1) Searching the electronic Federal Docket Management System 
(FDMS) Web page at http://www.regulations.gov;
    (2) Accessing the Government Printing Office's Web page at http://www.gpo.gov/fdsys/browse/collection.action?collectionCode=FR to view 
the daily published Federal Register edition; or accessing the ``Search 
the Federal Register by Citation'' in the ``Related Resources'' column 
on the left, if you need to do a Simple or Advanced search for 
information, such as a type of document that crosses multiple agencies 
or dates; or
    (3) Visiting TSA's Security Regulations Web page at http://www.tsa.gov and accessing the link for ``Stakeholders'' at the top of 
the page, then the link ``Research Center'' in the left column.
    In addition, copies are available by writing or calling the 
individual in the FOR FURTHER INFORMATION CONTACT section. Make sure to 
identify the docket number of this rulemaking.

Small Entity Inquiries

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires TSA to comply with small entity requests for information 
and advice about compliance with statutes and regulations within TSA's 
jurisdiction. Any small entity that has a question regarding this 
document may contact the person listed in the FOR FURTHER INFORMATION 
CONTACT section. Persons can obtain further information regarding 
SBREFA on the Small Business Administration's Web page at http://www.sba.gov/advo/laws/law_lib.html.

Good Cause for Immediate Adoption

    This action is being taken without providing the opportunity for 
notice and comment. Section 44940(d) of title 49, U.S.C., exempts the 
imposition of the civil aviation security fees authorized in section 
44940 from the procedural rulemaking notice and comment procedures set 
forth in 5 U.S.C. 553 of the Administrative Procedure Act (APA).\1\
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    \1\ This provision of the statute reads: ``(d) Imposition of 
Fee.--(1) In general.--Notwithstanding section 9701 of title 31 and 
the procedural requirements of section 553 of title 5, the Under 
Secretary shall impose the fee under subsection (a)(1), and may 
impose a fee under subsection (a)(2), through the publication of 
notice of such fee in the Federal Register and begin collection of 
the fee within 60 days of the date of enactment of this Act, or as 
soon as possible thereafter. * * * (3) Subsequent modification of 
fee.--After imposing a fee in accordance with paragraph (1), the 
Under Secretary may modify, from time to time through publication of 
notice in the Federal Register, the imposition or collection of such 
fee, or both. * * * *''
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    Apart from the statutory exemption discussed above, the APA allows 
an agency to forego notice and comment rulemaking when ``the agency for 
good cause finds . . . that notice and public procedure thereon are 
impracticable, unnecessary, or contrary to the public interest.'' 5 
U.S.C. 553(b). Section 601(a) of the Bipartisan Budget Act of 2013 \2\ 
(Budget Act) repeals TSA's authority to collect the fee beginning 
October 1, 2014. Because collection of the fee will end on that date 
regardless of whether this rulemaking is published, TSA finds that good 
cause exists under 5 U.S.C. 553(b) for making this a final rule without 
notice and comment. As this rulemaking simply conforms TSA's 
regulations to the statute, notice and an opportunity for public 
comment unnecessary.
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    \2\ Public Law 113-67 (Dec. 26, 2013; 127 Stat. 1165).
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I. Purpose of the Regulatory Action

    The purpose of this final rule is to conform TSA's regulations to 
changes in its authorities. In 2001, the Aviation and Transportation 
Security Act (ATSA) authorized TSA to impose a fee to defray the 
government's costs for providing U.S. civil aviation security services. 
One fee was imposed on passengers (49 U.S.C. 44940(a)(1)). To the 
extent the revenue collected from that fee did not defray all of the 
relevant costs, TSA was authorized to impose a second fee on air 
carriers and foreign air carriers in air transportation (collectively 
referred to as ``carriers'').\3\ Implementing regulations to impose the 
ASIF were published in 2002.\4\ The Budget Act restructured the fee 
imposed on passengers (increasing the estimated revenue from this fee) 
\5\ and repealed TSA's authority to impose the fee on carriers, 
effective October 1, 2014.\6\ Therefore, imposition of the ASIF will 
cease based on the statute, regardless of any changes to TSA's 
regulations, but TSA is also issuing this final rule to conform 49 CFR 
part 1511 to its statutory authority.
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    \3\ See 49 U.S.C. 44940(a)(2) (2002).
    \4\ See 67 FR 7926 (Feb. 20, 2002) codified at 49 CFR part 1511.
    \5\ TSA amended its regulations to implement the restructured 
fee through an Interim Final Rule. See 79 FR 35462 (June 20, 2014). 
The Budget Act increased revenue to be collected directly from 
passengers and removed revenue to be collected directly from air 
carriers.
    \6\ See Budget Act at Sec.  601(a).
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II. Background

    As authorized by the Aviation and Transportation Security Act 
(ATSA), regulations of the Transportation Security Administration (TSA) 
require U.S. air carriers and foreign air carriers to pay a fee 
reflecting the costs for screening passengers and property in calendar 
year (CY) 2000 in order to defray the Federal Government's costs for 
assuming these responsibilities. Current 49 CFR part 1511 requires U.S. 
air carriers and foreign air carriers (collectively referred to as 
``carriers'') to pay an ASIF based on their actual passenger and 
property screening costs for calendar year (CY) 2000.\7\ While ATSA 
provides authority for TSA to reapportion the fee across the industry

[[Page 56664]]

based on market share,\8\ the current regulations only apply to 
carriers in operation in CY 2000. Under the Interim Final Rule (IFR), 
published in 2002,\9\ carriers are continuing to remit the same amount 
to TSA based on their CY 2000 passenger and property screening costs. 
To the extent carriers that operated in CY 2000 are no longer 
operating, their portion of the ASIF is uncollected. Similarly, as 
previously noted, carriers that have entered the market since CY 2000 
are not currently subject to the fee.
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    \7\ See 49 CFR part 1511.
    \8\ See 49 U.S.C. 44940(a)(2)(B)(iii) (2013).
    \9\ 67 FR 7926 (Feb. 20, 2002).
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III. Summary of the Final Rule

    Through this Final Rule, TSA is conforming its regulations to 
repeal of the authority to impose the ASIF. No new ASIF liability will 
be incurred after 11:59 p.m. on September 30, 2014. Any ASIF liability 
incurred before 11:59 p.m. on September 30, 2014, must be transmitted 
to TSA consistent with current procedures. To mitigate the possibility 
for any confusion regarding the applicable requirements and procedures 
for ASIF liability incurred before the effective date of this final 
rule and remittance procedures, the relevant provisions of 49 CFR part 
1511 are not being modified (such as sections 1511.5 and 1511.7). TSA 
is removing the requirements for an independent audit and record 
keeping (sec. 1511.9) because they are unnecessary once this final rule 
takes effect. The Paperwork Reduction Act implications of this 
amendment are discussed below.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501. et seq.) 
requires that a Federal agency consider the impact of paperwork and 
other information collection burdens imposed on the public and, under 
the provisions of PRA section 3507(d), obtain approval from the Office 
of Management and Budget (OMB) for each collection of information it 
conducts, sponsors, or requires through regulations. As protection 
provided by the Paperwork Reduction Act, as amended, an agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a currently valid OMB 
control number. TSA currently has an approved information collection 
related to ASIF records retention through March 31, 2016.\10\ With this 
final rule, TSA is discontinuing the information collection request by 
removing the requirement to retain these records. The annual average 
burden associated with this recordkeeping requirement is estimated to 
be $24,031. TSA has submitted to OMB a discontinuation request for the 
currently approved information collection.
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    \10\ See OMB Control No: 1652-0018.
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Regulatory Impact Analyses

    Executive Orders Nos. 12866 (``Regulatory Planning and Review'') 
and 13563 (``Improving Regulation and Regulatory Review'') direct 
agencies to assess the costs and benefits of available regulatory 
alternatives and, if regulation is necessary, to select regulatory 
approaches that maximize net benefits (including potential economic, 
environmental, public health and safety effects, distributive impacts, 
and equity). Executive Order 13563 emphasizes the importance of 
quantifying both costs and benefits, of reducing costs, of harmonizing 
rules, and of promoting flexibility.
    This rulemaking is an ``economically significant regulatory 
action,'' under section 3(f) of Executive Order No. 12866. As further 
required by this Executive Order, OMB has reviewed this final rule and 
TSA has prepared an analysis of its estimated costs and benefits, 
presented in the following paragraphs. Table 1 presents the OMB 
Circular A-4 Accounting Statement for this final rule.
    As a result of the Budget Act, carriers will no longer be required 
to pay the ASIF effective October 1, 2014.\11\ Therefore, TSA is 
issuing this final rule to conform its regulations to its statutory 
authority.\12\ This is not an implementing regulation, as the statute 
clearly implements the cessation of the ASIF absent any action by TSA.
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    \11\ See Budget Act Sec.  601(a).
    \12\ See 49 CFR part 1511.

                  Table 1--OMB A-4 Accounting Statement
                         [Pre-Statute Baseline]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Category                                              Estimate
------------------------------------------------------------------------
                                Benefits
------------------------------------------------------------------------
 
Annualized monetized benefits...  $59,196...........  7% discount rate.
Annualized quantified, but
 unmonetized, benefits.
Qualitative (un-quantified)
 benefits.
------------------------------------------------------------------------
                                  Costs
------------------------------------------------------------------------
Annualized monetized costs......
Annualized quantified, but
 unmonetized, costs
Qualitative (un-quantified)
 costs
------------------------------------------------------------------------
                                Transfers
------------------------------------------------------------------------
Reduction in annualized           -$373,200,000.....  7% discount rate.
 monetized transfers.
------------------------------------------------------------------------
From whom to whom?..............    Reduction in transfer payments from
                                     industry to the Government (as the
                                        Government will no longer be
                                       receiving the transfer of ASIF
                                       payments for security services
                                                 provided).
------------------------------------------------------------------------

    Under the authority granted to TSA under 49 U.S.C. 449040 as 
enacted in 2002, TSA has authority to collect a fee from carriers. The 
amount that TSA could collect under that authority was capped at $420 
million.\13\ The Budget

[[Page 56665]]

Act repeals that authority effective October 1, 2014. Therefore, the 
cessation of the ASIF is the result of a statutory change that takes 
effect on October 1, 2014.
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    \13\ For an opinion upholding this determination, see Southwest 
Airlines Co. v. Transportation Security Administration, 650 F.3d 752 
(D.C. Cir. 2011). A copy of the opinion is available at http://www.tsa.gov/stakeholders/aviation-security-infrastructure-fee-air-
carrier-fee.
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    In response to this amendment to its statutory authority, TSA 
decided to issue this final rule to conform current regulations. 
Although cessation of fee imposition would occur absent any action by 
TSA, we assess the impacts of this final rule from the baseline prior 
to the change in statutory authority, pursuant to OMB Circular A-4, 
which calls for agencies to use a pre-statute baseline in cases where a 
rule, or portions of a rule, simply restates statutory requirements 
that would be self-implementing, even in the absence of the regulatory 
action.\14\
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    \14\ See OMB Circular A-4 (http://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a004/a-4.pdf), pages 15-16: 
``In some cases, substantial portions of a rule may simply restate 
statutory requirements that would be self-implementing, even in the 
absence of the regulatory action. In these cases, you should use a 
pre-statute baseline.''
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    Analyzing this final rule from the pre-statute baseline considers 
the cessation of the ASIF to be an economic impact of this final rule. 
The following analysis considers the cessation of the ASIF as a 
reduction in transfer payments from industry to the Government, as the 
Government will no longer be receiving the transfer of ASIF payments 
for security services provided.

Impact of Cessation of the ASIF

    TSA has identified three impacts of the cessation of the ASIF: The 
Government will no longer collect the transfer payment from industry; 
industry will no longer bear the burden to remit the ASIF to TSA 
monthly; and industry will no longer bear the burden of retaining 
records related to the ASIF. Estimates of these impacts are presented 
below:
     Government Will Stop Imposing Payments on the Industry. To 
estimate the impacts of this reduction in ASIF transfer payments, TSA 
assessed historical ASIF collections to determine the average amount 
transferred over a 10-year period of analysis. Table 2 presents the 
historical ASIF collections.\15\
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    \15\ TSA is not currently collecting the full $420 million 
allowed under ATSA due to changes in the industry since the ASIF was 
established in 2002.
    \16\ TSA data.

                  Table 2--Historical ASIF Collections
                   [Fiscal Year (FY) 2004 to FY 2013]
------------------------------------------------------------------------
                                                               ASIF
                                                            collections
                                                          from  carriers
                       Fiscal year                        \16\  (rounded
                                                           up to nearest
                                                             million)
------------------------------------------------------------------------
2004....................................................    $283,000,000
2005....................................................     307,000,000
2006....................................................     316,000,000
2007....................................................     573,000,000
2008....................................................     413,000,000
2009....................................................     406,000,000
2010....................................................     282,000,000
2011....................................................     400,000,000
2012....................................................     380,000,000
2013....................................................     372,000,000
------------------------------------------------------------------------
Ten Year Average........................................     373,200,000
------------------------------------------------------------------------

    Using the 10-year average ASIF collection for FY 2004 through FY 
2013 of $373,200,000, TSA calculates the 10-year impact of cessation of 
the ASIF as a reduction in transfer payments from industry to 
Government, placing the burden of funding security services now paid 
for by the ASIF on the Government. Table 3 presents the 10-year 
reduction in transfer payments.

                       Table 3--Foregone ASIF Transfer Payment From Industry to Government
----------------------------------------------------------------------------------------------------------------
                                                       Reduction in ASIF   Reduction in ASIF   Reduction in ASIF
                        Year                           transfer payments   transfer payments   transfer payments
                                                        (undiscounted)     (3% discounting)    (7% discounting)
----------------------------------------------------------------------------------------------------------------
1...................................................        $373,200,000        $362,330,097        $348,785,047
2...................................................         373,200,000         351,776,793         325,967,333
3...................................................         373,200,000         341,530,867         304,642,368
4...................................................         373,200,000         331,583,366         284,712,493
5...................................................         373,200,000         321,925,598         266,086,442
6...................................................         373,200,000         312,549,125         248,678,918
7...................................................         373,200,000         303,445,752         232,410,204
8...................................................         373,200,000         294,607,526         217,205,798
9...................................................         373,200,000         286,026,725         202,996,073
10..................................................         373,200,000         277,695,849         189,715,956
                                                     -----------------------------------------------------------
    Total...........................................       3,732,000,000       3,183,471,699       2,621,200,631
                                                     -----------------------------------------------------------
Annualized..........................................         373,200,000         373,200,000         373,200,000
----------------------------------------------------------------------------------------------------------------
Note: Totals may not add due to rounding. The annualized reductions in ASIF transfer payments are estimated
  using OMB guidance (see http://www.whitehouse.gov/sites/default/files/omb/assets/OMB/circulars/a004/a-
  4FAQ.pdf, pages 7-8). These annualized estimates are the same regardless of discounting since TSA uses a
  constant reduction in ASIF transfer payments based on the 10-year average ASIF collection presented in Table
  2.

    For the 10-year analysis period, TSA estimated the total 
undiscounted reduction in transfer payment of approximately $3.7 
billion, and the total discounted reduction in transfer payment of $3.2 
billion using a three percent discount rate, and $2.6 billion using a 
seven percent discount rate. The cessation of ASIF imposition will 
benefit industry as it will no longer be required to make these 
transfer payments to the Government.
     Cost Savings for Stopping Monthly ASIF Transmission to 
TSA. To estimate the cost savings to carriers no longer required to 
remit the ASIF to TSA, we calculated the average local charge for an 
electronic transaction from one bank

[[Page 56666]]

account to another, and applied the monthly cost to each carrier 
currently remitting a fee to TSA. TSA estimates that the average bank 
transaction costs $26.40 per month for an electronic transfer of fees 
to TSA.\17\ Because almost all carriers would transmit monthly ASIF 
payments to TSA electronically, TSA used the $26.40 per month per 
electronic transfer, discussed above, to calculate transmission costs.
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    \17\ This estimate is based on the average of the 10 largest 
U.S. Banks wire transfer fee. http://www.mybanktracker.com/news/2013/09/27/comparing-top-10-bank-wire-transfer-fees-fall-2013.
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    The total number of affected carriers required to pay the ASIF is 
estimated to be 111 (37 air carriers and 74 foreign air carriers) based 
on the number of carriers remitting ASIF payments to TSA in FY 2013. To 
estimate the cost savings to industry, TSA multiplied the monthly bank 
fee of $26.40 by 12 months to obtain an average annual bank fee of 
$316.80 for each carrier currently remitting the ASIF. We then 
multiplied the annual bank fee ($316.80) by the number of carriers 
(111) to obtain the total annual cost savings, which equals $35,165 
($316.80 x 111). Table 4 presents the 10-year cost savings for stopping 
monthly ASIF transmission to TSA.

                 Table 4--Cost Savings to Carriers for Stopping Monthly ASIF Transmission to TSA
----------------------------------------------------------------------------------------------------------------
                                                                                   Cost savings    Cost savings
                              Year                                 Cost savings         (3%             (7%
                                                                  (undiscounted)   discounting)    discounting)
----------------------------------------------------------------------------------------------------------------
1...............................................................         $35,165         $34,141         $32,864
2...............................................................          35,165          33,146          30,714
3...............................................................          35,165          32,181          28,705
4...............................................................          35,165          31,243          26,827
5...............................................................          35,165          30,333          25,072
6...............................................................          35,165          29,450          23,432
7...............................................................          35,165          28,592          21,899
8...............................................................          35,165          27,759          20,466
9...............................................................          35,165          26,951          19,127
10..............................................................          35,165          26,166          17,876
                                                                 -----------------------------------------------
    Total.......................................................         351,648         299,963         246,983
                                                                 -----------------------------------------------
Annualized......................................................          35,165          35,165          35,165
----------------------------------------------------------------------------------------------------------------
Note: Totals may not add due to rounding.

     Cost Savings for Removal of Recordkeeping Requirements. 
When setting the ASIF in 2002, all carriers engaged in air 
transportation, foreign air transportation, and intrastate air 
transportation in 2000 were required to submit their CY 2000 security 
screening costs to TSA.\18\ Carriers were required to use the form in 
Appendix A to 49 CFR part 1511 to itemize their security costs by 
specific cost categories. In this final rule, TSA is removing current 
Sec.  1511.9, requiring recordkeeping of documents related to CY 2000 
costs. TSA estimated the benefit to covered carriers due to the 
elimination of this data and document retention requirement. TSA 
estimated the benefit of no longer maintaining these documents by 
summing the avoided storage retention costs of $71 \19\ and the avoided 
annual labor requirement of $145.50 \20\ to estimate a per-carrier 
savings of $216.50. There are 111 \21\ carriers currently paying these 
fees; the change amounts to an annual savings of $24,031 ($216.50 x 
111). Table 5 summarizes these cost savings.
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    \18\ 49 CFR 1511.5(d).
    \19\ ICR Supporting Statement (OMB control Number 1652-0018) 
cost of records storage ($54.60 in 2000) adjusted for 2013 using GDP 
deflator.
    \20\ To estimate the annual labor requirement, TSA uses the 
Bureau of Labor Statistics (BLS) median hourly wage for all 
management occupations (11-0000) within the Air Transportation 
sector (NAICS 481000), which is $49.33 (http://www.bls.gov/oes/2013/may/naics3_481000.htm#00-0000). TSA applies a load factor of 
1.4747 to this wage, to obtain a loaded hourly wage of $72.75. As 
the ICR Supporting Statement (OMB control Number 1652-0018) states 
that the annual burden would require two labor hours records 
management, TSA multiplies $72.75 by two to get a total labor cost 
savings of $145.50.
    \21\ Number of carriers remitting the ASIF to TSA in FY 2013.

                       Table 5--Cost Savings to Carriers From Elimination of Recordkeeping
----------------------------------------------------------------------------------------------------------------
                                                                                   Total savings   Total savings
                              Year                                 Total savings        (3%             (7%
                                                                  (undiscounted)   discounting)    discounting)
----------------------------------------------------------------------------------------------------------------
1...............................................................         $24,031         $23,331         $22,459
2...............................................................          24,031          22,652          20,990
3...............................................................          24,031          21,992          19,617
4...............................................................          24,031          21,351          18,333
5...............................................................          24,031          20,730          17,134
6...............................................................          24,031          20,126          16,013
7...............................................................          24,031          19,540          14,965
8...............................................................          24,031          18,971          13,986
9...............................................................          24,031          18,418          13,071
10..............................................................          24,031          17,882          12,216
                                                                 -----------------------------------------------
    Total.......................................................         240,313         204,992         168,786
                                                                 -----------------------------------------------

[[Page 56667]]

 
Annualized......................................................          24,031          24,031          24,031
----------------------------------------------------------------------------------------------------------------
Note: Totals may not add due to rounding.

    For the 10-year analysis period, TSA estimated the total 
undiscounted benefits of the rule for elimination of recordkeeping to 
be $240,313, and the total discounted benefits to be $204,992 using a 
three percent discount rate, and $168,786 using a seven percent 
discount rate. The benefits arise from cost savings realized by 
carriers who no longer have to retain data and documents on their costs 
in CY 2000.
    Table 6 show the total savings to the carriers over a 10-year 
period.

                                     Table 6--Total Cost Savings to Carriers
----------------------------------------------------------------------------------------------------------------
                                                                                   Total savings   Total savings
                              Year                                 Total savings        (3%             (7%
                                                                  (undiscounted)   discounting)    discounting)
----------------------------------------------------------------------------------------------------------------
1...............................................................         $59,196         $57,472         $55,323
2...............................................................          59,196          55,798          51,704
3...............................................................          59,196          54,173          48,322
4...............................................................          59,196          52,595          45,160
5...............................................................          59,196          51,063          42,206
6...............................................................          59,196          49,576          39,445
7...............................................................          59,196          48,132          36,864
8...............................................................          59,196          46,730          34,453
9...............................................................          59,196          45,369          32,199
10..............................................................          59,196          44,047          30,092
                                                                 -----------------------------------------------
    Total.......................................................         591,961         504,955         415,768
                                                                 -----------------------------------------------
Annualized......................................................          59,196          59,196          59,196
----------------------------------------------------------------------------------------------------------------
Note: Totals may not add due to rounding.

    For the 10-year analysis period, TSA estimated the total cost 
savings of $591,961 for all carriers, and a total discounted savings of 
$540,955 using a three percent discount rate, and $415,768 using a 
seven percent discount rate.

Alternatives Considered

    For the purposes of this regulatory impact analysis, TSA analyzed 
several alternatives when considering the impact of this final rule. 
The Budget Act repeals 49 U.S.C. 44940(a)(2) and, therefore, removes 
any TSA discretion to impose the ASIF. As of October 1, 2014, TSA no 
longer has statutory authority to impose the ASIF, and regardless of 
any action by TSA, the affected carriers will no longer incur ASIF 
liability after that date. As such, any alternatives considered by TSA 
would have to include cessation of the imposition of the ASIF. Table 7 
below summarizes the regulatory alternatives considered:
     Alternative 1 (Preferred--Cessation of ASIF and 
Recordkeeping Requirements): Alternative 1, the preferred alternative 
is discussed above and would result in an undiscounted 10-year cost 
savings to industry of $591,961.
     Alternative 2 (No Action--No ASIF Rulemaking): As the BBA 
is self-implementing in the absence of any TSA amendments to its 
regulations, this alternative would have the same results as the 
preferred alternative, in other words, the affected carriers will no 
longer incur ASIF liability. In the absence of regulatory action, there 
could be some uncertainty with respect to whether related record 
retention requirements remained in place.
     Alternative 3 (Cessation of ASIF and Maintenance of 
Recordkeeping Requirements): Under this alternative, TSA would cease to 
collect the ASIF from the affected carriers, but TSA would retain the 
recordkeeping requirements for carriers to use the form in Appendix A 
to 49 CFR part 1511 to itemize their security costs by specific cost 
categories. This would reduce the cost savings to affected carriers, 
from an undiscounted 10-year cost savings of $561,961 in the preferred 
alternative to an undiscounted 10-year cost savings of $351,648. TSA 
rejects this alternative because it would fail to maximize savings to 
the affected carriers, without sufficient justification.

                   Table 7--Comparison of Alternatives
------------------------------------------------------------------------
                                                         10-year cost
         Alternatives               Description             savings
                                                        (undiscounted)
------------------------------------------------------------------------
Alternative 1--Preferred       TSA repeals the ASIF             $591,961
 Alternative.                   and all associated
                                requirements.
Alternative 2--No Action.....  TSA does not publish              591,961
                                a rulemaking. ASIF
                                no longer collected
                                due to BBA.
Alternative 3--Maintain        TSA repeals the                   351,648
 Recordkeeping Requirements.    collection of the
                                ASIF, but requires
                                airlines to comply
                                with current
                                recordkeeping
                                requirements.
------------------------------------------------------------------------


[[Page 56668]]

Regulatory Flexibility Act Assessment

    The Regulatory Flexibility Act (RFA) of 1980 \22\ requires agencies 
to consider the impact of their regulatory proposals on small entities, 
to analyze effective alternatives that minimize small entity impacts, 
and to make their analyses available for public comment. Small entities 
include small businesses, not-for-profit organizations, and small 
governmental jurisdictions. Individuals and States are not included in 
the definition of a small entity. When no notice of proposed rulemaking 
has first been published, no such assessment is required for a final 
rule. Furthermore, 5 U.S.C. 553(b)(B) exempts rules from the 
requirements of the RFA when an agency for good cause finds that notice 
and public procedure thereon are impracticable, unnecessary, or 
contrary to the public interest. As previously discussed in the 
preamble, this rule is exempt from the procedural rulemaking 
requirements of 5 U.S.C. 553.
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    \22\ Public Law 96-354 (94 Stat. 1164; Sept. 19, 1980).
---------------------------------------------------------------------------

International Trade Impact Assessment

    The Trade Agreement Act of 1979 \23\ prohibits Federal agencies 
from establishing any standards or engaging in related activities that 
create unnecessary obstacles to the foreign commerce of the United 
States. Legitimate domestic objectives, such as safety, are not 
considered unnecessary obstacles. The statute also requires 
consideration of international standards and, where appropriate, that 
they be the basis for U.S. standards. TSA has assessed the potential 
effect of this rulemaking and as TSA has determined that there are no 
associated industry costs, it does not impose significant barriers to 
international trade.
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    \23\ Public Law 96-39 (93 Stat. 144; July 26, 1979).
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Unfunded Mandates Assessment

    The Unfunded Mandates Reform Act of 1995 is intended, among other 
things, to curb the practice of imposing unfunded Federal mandates on 
State, local, and tribal governments. Title II of the Act requires each 
Federal agency to prepare a written statement assessing the effects of 
any Federal mandate in a proposed or final agency rule that may result 
in a $100 million or more expenditure (adjusted annually for inflation) 
in any one year by State, local, and tribal governments, in the 
aggregate, or by the private sector; such a mandate is deemed to be a 
``significant regulatory action.'' This rule does not contain such a 
mandate. Moreover, the requirements of Title II of UMRA do not apply 
when rulemaking actions are taken without the issuance of a notice of 
proposed rulemaking. For reasons discussed above, no notice of proposed 
rulemaking is required for this regulatory action. The requirements of 
Title II of the Act, therefore, do not apply and TSA has not prepared a 
statement under the Act.

International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is TSA policy to comply with 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. TSA has 
reviewed the corresponding ICAO Standards and Recommended Practices and 
has identified no differences with these regulations.
    The ICAO guidance document on aviation fees and charges, ICAO 
Document 9082 (Ninth Edition--2012), ICAO's Policies on Charges for 
Airports and Air Navigation Services, recommends consultations before 
fees are imposed on carriers. In addition, Article 12 of the Air 
Transport Agreement between the United States of America and the 
European Community and its Member States, signed on 25 and 30 April 
2007, encourages consultation between the charging authority and 
affected carriers.
    As no fees are being imposed as a result of this rulemaking, no 
consultation or additional assessment is required.

Executive Order 13132, Federalism

    TSA has analyzed this final rule under the principles and criteria 
of Executive Order 13132, Federalism. We determined that this action 
will not have a substantial direct effect on the States, or on the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government, and therefore does not have federalism implications.

Environmental Analysis

    TSA has reviewed this action for purposes of the National 
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4347) and has 
determined that this action will not have a significant effect on the 
human environment. This action is covered by categorical exclusion 
(CATEX) number A3(b) in DHS Management Directive 023-01 (formerly 
Management Directive 5100.1), Environmental Planning Program, which 
guides TSA compliance with NEPA.

Energy Impact

    The energy impact of the notice has been assessed in accordance 
with the Energy Policy and Conservation Act (EPCA), Public Law 94-163, 
as amended (42 U.S.C. 6362). We have determined that this rulemaking is 
not a major regulatory action under the provisions of the EPCA.

List of Subjects for 49 CFR Part 1511

    Accounting, Air carriers, Air transportation, Auditing, 
Enforcement, Federal oversight, Foreign air carriers, Reporting and 
recordkeeping requirements, Security measures.

The Amendment

    In consideration of the foregoing, the Transportation Security 
Administration amends part 1511 of Chapter XII of Title 49, Code of 
Federal Regulations, as follows:

Subchapter A--Administrative and Procedural Rules

PART 1511--AVIATION SECURITY INFRASTRUCTURE FEE

0
1. The authority citation for part 1511 continues to read as follows:

    Authority: 49 U.S.C. 114, 40113, 44901, and 44940.


0
2. Remove and reserve Sec.  1511.9.
0
3. Add Sec.  1511.15 to read as follows:


Sec.  1511.15  Cessation of the Aviation Security Infrastructure Fee.

    Notwithstanding 49 CFR 1511.5 and 1511.7, or any other provision of 
this part, beginning 11:59 p.m. (Eastern Daylight Time) on September 
30, 2014, an air carrier or foreign air carrier engaged in air 
transportation will not incur any further obligations to make payments 
to TSA that otherwise would be required under this part. Any unremitted 
Aviation Security Infrastructure Fees incurred by an air carrier or 
foreign air carrier before 11:59 p.m. (Eastern Daylight Time) on 
September 30, 2014, are due by October 31, 2014.

    Dated: September 17, 2014.
Melvin J. Carraway,
Deputy Administrator.
[FR Doc. 2014-22617 Filed 9-22-14; 8:45 am]
BILLING CODE 9105-05-P