[Federal Register Volume 80, Number 107 (Thursday, June 4, 2015)]
[Rules and Regulations]
[Pages 31850-31857]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-13506]


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DEPARTMENT OF HOMELAND SECURITY

Transportation Security Administration

49 CFR Part 1510

[Docket No. TSA-2001-11120; Amendment No. 1510-5]
RIN 1652-AA68


Adjustment of Passenger Civil Aviation Security Service Fee

AGENCY: Transportation Security Administration, DHS.

ACTION: Interim final rule; request for comments.

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SUMMARY: The Transportation Security Administration (TSA) is issuing 
this interim final rule (IFR) to address a statutory change affecting 
the IFR published on June 20, 2014 (2014 IFR), which implemented the 
passenger civil aviation security service fee (security service fee) 
increase mandated by the Bipartisan Budget Act of 2013. This IFR 
conforms TSA's regulations to statutory amendments enacted since 
publication of the 2014 IFR. These amendments impose a round-trip 
limitation on the security service fee. All other aspects of the 
regulations, including those made by the 2014 IFR and provisions 
unchanged by this rule, remain in effect. TSA is also requesting 
comments on added definitions related to imposition of a round-trip 
limitation. TSA is not soliciting comments with respect to any other 
issues concerning the 2014 IFR, except to the extent affected by this 
rule, as the deadline for such comments has expired.

DATES: 
    Effective date: June 4, 2015, except for the definition of ``co-
terminal'' in Sec.  1510.3, which is effective July 6, 2015.
    Comment date: Comments must be received by August 3, 2015.
    Applicability date: Direct air carriers and foreign air carriers in 
air transportation, foreign air transportation, and intrastate air 
transportation originating at airports in the United States (air 
carriers) will be held responsible for applying the round-trip 
limitation to all relevant air transportation sold on or after 12 a.m. 
(Eastern Standard Time) on December 19, 2014.

ADDRESSES: You may submit comments, identified by the TSA docket number 
to this rulemaking, to the Federal Docket Management System (FDMS), a 
government-wide, electronic docket management system, using any one of 
the following methods:
    Electronically: You may submit comments through the Federal 
eRulemaking portal at http://www.regulations.gov. Follow the online 
instructions for submitting comments.
    Mail, In Person, or Fax: Address, hand-deliver, or fax your written 
comments to the Docket Management Facility, U.S. Department of 
Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor, 
Room W12-140, Washington, DC 20590-0001; fax (202) 493-2251. The 
Department of Transportation (DOT), which maintains and processes TSA's 
official regulatory dockets, will scan the submission and post it to 
FDMS.
    See SUPPLEMENTARY INFORMATION for format and other information 
about comment submissions.

FOR FURTHER INFORMATION CONTACT: Michael Gambone, Office of Revenue, 
TSA-14, Transportation Security Administration, 701 South 12th Street, 
Arlington, VA 20598-6014; telephone (571) 227-2323; email: [email protected].

SUPPLEMENTARY INFORMATION: 

Retroactive Application

    This IFR conforms TSA's regulations to recently enacted amendments 
to 49 U.S.C. 44940(c) that require a limitation for round-trip air 
transportation.\1\ As the law stipulates that the statutory amendment 
shall apply ``to a trip in air transportation or intrastate air 
transportation that is purchased on or after the date of the enactment 
of this Act,'' \2\ the statutory amendments became effective on 
December 19, 2014. Therefore, direct air carriers and foreign air 
carriers in air transportation, foreign air transportation, and 
intrastate air transportation originating at airports in the United 
States (air carriers) will be held responsible for applying the round-
trip limitation to all relevant air transportation sold on or after 12 
a.m. (Eastern Standard Time) on December 19, 2014.
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    \1\ Public Law 113-294 (Dec. 19, 2014; 128 Stat. 4009).
    \2\ Id. at sec. 1(b).
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Comments Invited

    TSA is requesting public comment on this IFR. TSA invites 
interested persons to participate in this rulemaking by submitting 
written comments, data, or views. Comments must be limited to the 
issues raised in this IFR as the comment period for the 2014 IFR has 
closed. See ADDRESSES above for information on where to submit 
comments.
    With each comment, please identify the docket number at the 
beginning of your comments. TSA encourages commenters to provide their 
names and addresses. The most helpful comments reference a specific 
portion of the rulemaking, explain the reason for any recommended 
change, and include supporting data. You may submit comments and 
material electronically, in person, by mail, or fax as provided under 
ADDRESSES, but please submit your comments and material by only one 
means. If you submit comments by mail or delivery, submit them in an 
unbound format, no larger than 8.5 by 11 inches, suitable for copying 
and electronic filing.
    If you would like TSA to acknowledge receipt of comments submitted 
by mail, include with your comments a self-addressed, stamped postcard 
on which the docket number appears. We will stamp the date on the 
postcard and mail it to you.
    TSA will file all comments to our docket address, as well as items 
sent to the address or email under FOR FURTHER INFORMATION CONTACT, in 
the public docket, except for comments containing confidential 
information and sensitive security information (SSI). Should you wish 
your personally identifiable information redacted prior to filing in 
the docket, please so state. TSA will consider all comments that are in 
the docket on or before the closing date for comments and will consider 
comments filed late to the extent practicable. The docket is available 
for public inspection before and after the comment closing date.

Handling of Confidential or Proprietary Information and Sensitive 
Security Information (SSI) Submitted in Public Comments

    Do not submit comments that include trade secrets, confidential 
commercial or financial information, or SSI to the public regulatory 
docket. Please submit such comments separately from other comments on 
the rulemaking. Comments containing this type of information should be 
appropriately marked as containing such information and submitted by 
mail to the address listed in FOR FURTHER INFORMATION CONTACT section.
    TSA will not place comments containing SSI in the public docket and 
will handle them in accordance with

[[Page 31851]]

applicable safeguards and restrictions on access. TSA will hold 
documents containing SSI, confidential business information, or trade 
secrets in a separate file to which the public does not have access, 
and place a note in the public docket explaining that commenters have 
submitted such documents. TSA may include a redacted version of the 
comment in the public docket. If an individual requests to examine or 
copy information that is not in the public docket, TSA will treat it as 
any other request under the Freedom of Information Act (FOIA) (5 U.S.C. 
552) and the Department of Homeland Security's (DHS') FOIA regulation 
found in 6 CFR part 5.

Reviewing Comments in the Docket

    Please be aware that anyone is able to search the electronic form 
of all comments in any of our dockets by the name of the individual who 
submitted the comment (or signed the comment, if an association, 
business, labor union, etc., submitted the comment). You may review the 
applicable Privacy Act Statement published in the Federal Register on 
April 11, 2000 (65 FR 19477) and modified on January 17, 2008 (73 FR 
3316).
    You may review TSA's electronic public docket on the Internet at 
http://www.regulations.gov. In addition, DOT's Docket Management 
Facility provides a physical facility, staff, equipment, and assistance 
to the public. To obtain assistance or to review comments in TSA's 
public docket, you may visit this facility between 9 a.m. and 5 p.m., 
Monday through Friday, excluding legal holidays, or call (202) 366-
9826. This docket operations facility is located in the West Building 
Ground Floor, Room W12-140 at 1200 New Jersey Avenue SE., Washington, 
DC 20590.

Availability of Rulemaking Document

    You may obtain an electronic copy of this document 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 of 1996 
(SBREFA) 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 FOR FURTHER 
INFORMATION CONTACT. 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.

Background

    The security service fee was initially authorized under the 
Aviation and Transportation Security Act (ATSA), enacted in 2001 
following the events of September 11, 2001 and the government's 
assumption of civil aviation services previously provided by air 
carriers.\3\ As enacted under ATSA, the fee was limited by statute to 
no more than $2.50 per enplanement or $5.00 per one-way trip.\4\ The 
ATSA provision was implemented through an IFR published in December 
2001 (2001 IFR).\5\ In the 2001 IFR, the passenger fee was set at $2.50 
per enplanement. The regulation further limited application of the 
passenger fee to no more than two (2) enplanements per one-way trip or 
four (4) enplanements per round trip. As enacted by ATSA, the law 
provided that the fee ``may not exceed'' [emphasis added] $2.50 per 
enplanement or $5.00 per one-way trip, thus vesting TSA with discretion 
to cap fees at a lower amount, such as by including a cap on 
enplanements charged per round trip.\6\
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    \3\ Public Law 107-71 (115 Stat. 597; Nov. 19, 2001) (codified 
in relevant portions at 49 U.S.C. 44940).
    \4\ See 49 U.S.C. 44940(c) (2002).
    \5\ 66 FR 67698 (Dec. 31, 2001), codified at 49 CFR part 1510.
    \6\ 49 U.S.C. 44940(c) (2002).
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    In December of 2013, Congress amended 49 U.S.C. 44940(c) as part of 
the Bipartisan Budget Act of 2013 (Budget Act of 2013).\7\ The Budget 
Act of 2013 amended 49 U.S.C. 44940 to restructure the basis and amount 
of the fee. As amended, 49 U.S.C. 44940(c) stated that the fee ``shall 
be $5.60 per one-way trip. . . .'' TSA implemented the Budget Act of 
2013's amendments through an IFR published on June 20, 2014 (2014 
IFR),\8\ which took effect July 21, 2014.
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    \7\ Public Law 113-67 (127 Stat. 1165; Dec. 26, 2013).
    \8\ 79 FR 35461 (June 20, 2014).
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    Since publication of the 2014 IFR, sec. 44940(c) was further 
amended by Congress in December 2014 to include a round-trip 
limitation.\9\ The section now reads (amendment in italics):
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    \9\ Public Law 113-294.

    ``. . . Fees imposed under subsection (a)(1) shall be $5.60 per 
one-way trip in air transportation or intrastate air transportation 
that originates at an airport in the United States, except that the 
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fee imposed per round trip shall not exceed $11.20.

    The amendment also added a definition of round trip:

    ``. . . In this subsection, the term ``round trip'' means a trip 
on an air travel itinerary that terminates or has a stopover at the 
origin point (or co-terminal).

Finally, the law specified that the changes ``shall apply with respect 
to a trip in air transportation or intrastate air transportation that 
is purchased on or after the date of the enactment of this Act.'' As a 
result, the round-trip limitation became effective for all tickets sold 
after 12:00 a.m. (EST) on December 19, 2014 (the day the legislation 
was signed by the President).

Good Cause for Adoption Without Prior Notice and Comment

    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 sec. 44940 
from the procedural rulemaking notice and comment procedures set forth 
in 5 U.S.C. 553 of the Administrative Procedure Act (APA).
    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.'' \10\ 
Public Law 113-294 took effect on December 19, 2014, creating a 
discrepancy between TSA's regulations and what is statutorily required. 
Because the requirement is in effect without this rulemaking, TSA finds 
that good cause exists under 5 U.S.C. 553(b) for making this an IFR 
without advance notice and comment. In addition, as the statute has 
already taken effect and passengers and industry may seek

[[Page 31852]]

confirmation from TSA with respect to proper implementation of the 
statute, TSA believes that further delays associated with notice and 
comment procedures would be impracticable and contrary to the public 
interest.
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    \10\ See 5 U.S.C. 553(b).
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    This IFR only includes a delayed effective date for the co-terminal 
definition (including the approved list of co-terminals referenced in 
that definition), which has not been previously included in TSA's 
regulations--although it has been consistently applied throughout the 
history of implementing the security service fee. The APA allows an 
agency to implement a rule immediately, rather than requiring a 30-day 
delayed effective date, if the agency finds good cause.\11\ This 
regulation is necessary to make TSA's regulations consistent with 
adjustments to the security service fee that took effect on December 
19, 2014. Publication of this IFR does not modify the effective date of 
the statutory requirement contained in Public Law 113-294; air carriers 
are required to apply a round-trip limitation to the security service 
fee for air transportation sold on or after December 19, 2014. 
Therefore, TSA finds good cause to implement these conforming 
regulations immediately, as the statutory requirements are already in 
effect, and thus a delayed effective date is unnecessary.
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    \11\ See 5 U.S.C. 553(d)(3).
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    Although this action is exempt from notice and comment 
requirements, TSA has chosen to issue this rulemaking as an IFR to 
provide an opportunity for comments before the 2014 IFR is finalized. 
TSA will accept comments on this rulemaking supplement to the 2014 IFR 
until August 3, 2015. TSA is not soliciting comments with respect to 
any other issues concerning the 2014 IFR, except to the extent affected 
by this rule, as the deadline for such comments has expired. See DATES 
and SUPPLEMENTARY INFORMATION for guidance on the schedule and method 
for submitting comments. TSA will address the comments received on this 
IFR in a subsequent final rule.

Issuance of Interim Final Rule

    In light of amendments to the relevant statutory provision while 
TSA is in the rulemaking process to implement previous amendments to 
the same provision, TSA is issuing an IFR to conform its regulations 
consistent with the statute (i.e., 49 U.S.C. 44940(c) as amended by 
Pub. L. 113-294). This IFR, like the 2014 IFR, implements the 
requirements of 49 U.S.C. 44940 in TSA regulations and allows TSA to 
ensure consistent implementation of the statute as it affects 
passengers in air transportation until such time as a final rule is 
published.

Changes to the 2014 Interim Final Rule

    The amendments made by Public Law 113-294 provide that the fee 
imposed per round trip shall not exceed $11.20 and define ``round 
trip'' to mean a trip on an air travel itinerary that terminates or has 
a stopover at the origin point (or co-terminal). Therefore, 49 CFR 
1510.5 is amended by this IFR to add that passengers may not be charged 
more than $11.20 per round trip, conforming the regulation to the 
amendments made by Public Law 113-294. The definition of a ``round 
trip'' stipulated in Public Law 133-294 is being added to 49 CFR 
1510.3. As previously noted, a ``round trip'' is defined in 49 U.S.C. 
44940(c)(2) \12\ as ``a trip on an air travel itinerary that terminates 
or has a stopover at the origin point (or co-terminal).'' \13\ This 
definition is the same definition in use before the 2014 IFR for 
purposes of determining with a round-trip limitation applied. 
Consistent with previous practice, TSA notes that just as it is 
possible for there to be multiple one-way trips on an itinerary, there 
can also be multiple round trips on an itinerary.\14\ In addition to 
including the definition of ``round trip'' provided in the statute, 
which is consistent with TSA's use of this term in the past for 
implementing the fee,\15\ this IFR also includes definitions for other 
terms used in the statutory definition of ``round trip.'' These terms 
include ``co-terminal,'' ``origin point,'' and ``terminates.'' The term 
``stopover,'' which is also used in the statute, was previously defined 
in the 2014 IFR.
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    \12\ As amended by Public Law 113-294.
    \13\ See 49 U.S.C. 44940(c)(2) as the provision is amended by 
Public Law 113-294.
    \14\ See U.S. DHS/TSA Letter re: Rule-Fees-ATA Docket Response 
and Clarification Letter TSA 06-11-07 (dated October 24, 2006) (TSA 
2006 Letter). This document is available at www.regulations.gov, 
under docket number TSA-2001-11120-0075.
    \15\ Id.
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    Consistent with the statute and previous practice before July 21, 
2014, a trip on an air travel itinerary that terminates or has a 
stopover at either the origin point, or a co-terminal of the origin 
point, is subject to the round-trip limitation. A ``co-terminal'' is 
defined to incorporate situations where multiple airports provide 
service to the same geographic area.\16\ Co-terminal relationships are 
used by some air carriers for fare construction or routing, such as 
standby and flight changes.
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    \16\ Although TSA has not previously defined ``co-terminal'' for 
these purposes, TSA provides a definition here to foster 
transparency and consistent application of the fee across airlines 
and reservation systems. TSA anticipates that the definition is 
consistent with the historic practice of airlines in this context.
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    The docket for this rulemaking includes a comprehensive list of co-
terminal airports (both domestic and foreign airports) which TSA has 
approved for determining application of the security service fee. TSA 
has based its list of approved co-terminals on consistent use of these 
designations by the industry for purposes of fare construction and 
routing and by TSA for compliance reviews associated with the security 
service fee. Through this IFR, TSA invites comments on the co-terminal 
designations. TSA will publish a notice in the Federal Register should 
the list of approved co-terminals be revised in the future.
    The terms ``origin point'' and ``terminates'' are added solely for 
the purpose of determining whether the round-trip limitation applies. 
In other words, the ``origin point'' of an itinerary is considered for 
purposes of determining whether the round-trip limitation applies; the 
definition has no bearing on the determination whether a trip is in 
``air transportation . . . that originates at an airport in the United 
States.'' \17\ The security service fee applies to any one-way trip in 
air transportation that departs from an airport in the United States, 
including certain domestic flights that are part of air travel to or 
from a foreign country.\18\
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    \17\ 49 U.S.C. 44940(c) (2014); see also 49 U.S.C. 44940(a) (the 
TSA Administrator ``shall impose a uniform fee, on passengers of air 
carriers and foreign air carriers in air transportation and 
intrastate air transportation originating at airports in the United 
States'').
    \18\ See 79 FR at 35465.
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    TSA welcomes comment on each of these changes.
    In Table 1 of the 2014 IFR, TSA provided an analysis comparing 
itinerary examples showing the difference in fee imposition between the 
2001 IFR and the 2014 IFR. In Table 1 of this IFR, TSA updates that 
analysis to reflect a comparison between fee imposition under the 2014 
IFR and imposition as a result of Pub. L. 113-294.\19\ Consistent with 
past practice under the regulatory round-trip limitation that existed 
until July 2014, the only itinerary example in this analysis affected 
by the round-trip limitation is the trip that begins in Newark, 
sequential stopovers in

[[Page 31853]]

Chicago, Denver, Las Vegas, and Chicago, then returns to Newark (the 
penultimate itinerary in Table 1).
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    \19\ TSA has removed examples intended to demonstrate 
differences in the definition of ``stopover,'' as they are not 
relevant to this rulemaking.

 Table 1--Comparison of Current Fee Imposition (Under 49 CFR Part 1510)
 (Effective July 21, 2014) and Fee Imposition Resulting From Public Law
                  113-294 (Effective December 19, 2014)
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       Itinerary examples          49 CFR Part 1510   Public Law 113-294
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Washington Dulles to Chicago      $11.20; 2 one-way   $11.20; 1 round
 (stopover), Chicago to            trips.              trip with 2
 Washington Dulles.                                    chargeable one-
                                                       way trips.
Washington Dulles to Chicago,     $5.60; 1 one-way    $5.60; 1 round
 Chicago to Washington Dulles      trip.               trip with 1
 \20\.                                                 chargeable one-
                                                       way trip.
Washington Dulles to Chicago,     $11.20; 2 one-way   $11.20; 1 round
 Chicago to Los Angeles            trips.              trip with 2
 (stopover), Los Angeles to                            chargeable one-
 Chicago, Chicago to Washington                        way trips.
 Dulles.
Washington Dulles to Chicago,     $11.20; 2 one-way   $11.20; 1 round
 Chicago to Los Angeles, Los       trips.              trip with 2
 Angeles to Seattle (stopover),                        chargeable one-
 Seattle to Los Angeles, Los                           way trips.
 Angeles to Chicago, Chicago to
 Washington Dulles.
Washington Dulles to Chicago,     $11.20; 2 one-way   $11.20; 2 one-way
 Chicago to Los Angeles, Los       trips.              trips.
 Angeles to Seattle (stopover),
 Seattle to Los Angeles.
Paris to New York, New York to    $5.60; 1 one-way    $5.60. 1 one-way
 Chicago.                          trip.               trip.
Chicago to New York (stopover),   $16.80; 3 one-way   $16.80; 3 one-way
 New York to Frankfurt             trips.              trips.
 (stopover), Frankfurt to
 Chicago, Chicago to Minneapolis.
Newark to Chicago (stopover),     $28.00; 5 one-way   $28.00; 5 one-way
 Chicago to Denver (stopover),     trips.              trips.
 Denver to Las Vegas (stopover),
 Las Vegas to Chicago
 (stopover), Chicago to San
 Francisco.
Newark to Chicago (stopover),     $28.00; 5 one-way   $11.20; 1 round
 Chicago to Denver (stopover),     trips.              trip with 2
 Denver to Las Vegas (stopover),                       chargeable one-
 Las Vegas to Chicago                                  way trips.
 (stopover), Chicago to Newark.
Orlando to Pittsburgh             $33.60; 6 one-way   $33.60; 3 round
 (stopover), Pittsburgh to         trips.              trips with 6
 Orlando (stopover), Orlando to                        chargeable one-
 Pittsburgh (stopover),                                way trips (2
 Pittsburgh to Orlando                                 chargeable one-
 (stopover), Orlando to                                way trips per
 Pittsburgh (stopover),                                round trip).
 Pittsburgh to Orlando.
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Regulatory Impact Analyses

    Executive Orders (E.O.s) 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.
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    \20\ This itinerary example is being added in response to 
questions received to clarify that application of the fee to this 
itinerary is unchanged from how it has been charged since the 
security service fee was first collected in 2002.
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    This IFR consists of an administrative revision necessary to 
conform TSA regulations to a self-executing amendment to 49 U.S.C. 
44940(c), which took effect on the date of enactment--December 19, 
2014.\21\ This rulemaking is significant under E.O. 12866 and, 
therefore, OMB has reviewed this IFR. TSA has prepared an analysis of 
its estimated costs and benefits, presented in the following paragraphs 
using the current 2014 IFR as a baseline. Table 2 presents the OMB 
Circular A-4 Accounting Statement for this IFR.
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    \21\ Public Law 113-294.

                  Table 2--OMB A-4 Accounting Statement
                  [Fiscal Year 2015--Fiscal Year 2023]
------------------------------------------------------------------------
           Category                             Estimate
------------------------------------------------------------------------
                                Benefits
------------------------------------------------------------------------
Annualized monetized benefits                      --
------------------------------------------------------------------------
Annualized quantified, but                         --
 unmonetized, benefits.
------------------------------------------------------------------------
Qualitative (un-quantified)    Provides a regulatory efficiency by
 benefits.                      aligning current regulations with
                                Legislation.
                              ------------------------------------------
                                                   --
                              ------------------------------------------
                               Allow TSA to continue providing security
                                functions made possible by the
                                collection of fees.
------------------------------------------------------------------------

[[Page 31854]]

 
                                  Costs
------------------------------------------------------------------------
Annualized monetized costs...                      --
------------------------------------------------------------------------
Annualized quantified, but                         --
 unmonetized, costs.
------------------------------------------------------------------------
Qualitative (un-quantified)    Direct air carriers and foreign air
 costs.                         carriers may incur costs to update their
                                computer and ticket sales systems to
                                reflect the new fee structure.
------------------------------------------------------------------------
                                Transfers
------------------------------------------------------------------------
Annualized monetized                         $85,917,221 7%
 transfers.
                              ------------------------------------------
                                             $86,699,144 3%
------------------------------------------------------------------------
From whom to whom?...........  From the government to air passengers.
------------------------------------------------------------------------

Costs

    As previously noted, this IFR consists of an administrative 
revision to make TSA's regulations consistent with an amendment to 49 
U.S.C. 44940(c), which requires air carriers to apply a round-trip 
limitation of $11.20 to the security service fee for air transportation 
sold on or after December 19, 2014.\22\ As this limitation was not 
included in the Budget Act of 2013, it was not considered for the 
analysis of the 2014 IFR. As such, to estimate the impact of this IFR, 
TSA compares the impact of the fee structure imposed by the Budget Act 
of 2013 (considered as baseline) and the fee structure with a round-
trip limitation as imposed by Public Law 113-294.
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    \22\ Public Law 113-294.
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    Under the Budget Act of 2013, TSA was required to deposit a 
specified amount of revenue per year from 2014-2023 to the general fund 
of the Treasury, with the remaining receipts offsetting TSA 
appropriations. Table 3 below shows this breakdown, as it was presented 
in the 2014 IFR.

                              Table 3--Fee Allocation Under the Budget Act of 2013
                                           [No round-trip limitation]
----------------------------------------------------------------------------------------------------------------
                                                                              Fees allocated       Total fees
                      Fiscal year                        Fee allocated for   for the general    collected--$5.60
                                                         security services         fund         per one-way trip
----------------------------------------------------------------------------------------------------------------
FY14 Q4................................................       $560,070,072       $390,000,000       $950,070,072
FY15...................................................      2,453,125,839      1,190,000,000      3,643,125,839
FY16...................................................      2,465,988,356      1,250,000,000      3,715,988,356
FY17...................................................      2,510,308,123      1,280,000,000      3,790,308,123
FY18...................................................      2,546,114,285      1,320,000,000      3,866,114,285
FY19...................................................      2,583,436,571      1,360,000,000      3,943,436,571
FY20...................................................      2,622,305,302      1,400,000,000      4,022,305,302
FY21...................................................      2,662,751,408      1,440,000,000      4,102,751,408
FY22...................................................      2,704,806,437      1,480,000,000      4,184,806,437
FY23...................................................      2,748,502,565      1,520,000,000      4,268,502,565
                                                        --------------------------------------------------------
    Total..............................................     23,857,408,958     12,630,000,000     36,487,408,958
----------------------------------------------------------------------------------------------------------------

    The estimated fees collected, as presented in Table 3, do not 
include a round-trip limitation. As described in the Background section 
of this preamble, the Budget Act of 2013 amended 49 U.S.C. to 
restructure the basis and amount of the security service fee and also 
removed TSA's ability to provide for a round-trip limitation in its 
regulations. TSA implemented the Budget Act of 2013's amendments 
through the 2014 IFR.
    A round-trip limitation is now being imposed as a result of the 
amendment to 49 U.S.C. 44940(c) made by Public Law 113-294. To estimate 
the fee collection with the $11.20 limitation on round trips, TSA first 
determined the number of round-trip itineraries using data from the 
Bureau of Transportation Statistics (BTS).\23\ According to BTS data, 
approximately 66 percent of all tickets are considered round-trip 
tickets. Using the number of round-trip versus not-round-trip tickets, 
TSA estimates

[[Page 31855]]

that approximately 79 percent \24\ of total one-way trips are part of a 
round-trip itinerary. Table 4 presents the breakdown of trips. As 
required by Public Law 113-294, imposition of a round-trip limitation 
took effect at 12:00 a.m. on December 19, 2014. As such, TSA only 
accounts for 285 days in FY15 in order to estimate the impact of the 
statutory amendment upon implementation.
---------------------------------------------------------------------------

    \23\ TSA uses the Airline Origin and Destination Survey (DB1B) 
showing the Number of Passengers by Market Coupons for 2012. 
According to the BTS, a coupon is defined as a piece of paper or 
series of papers indicating the itinerary of a passenger. Each 
segment, or trip, on an itinerary has one coupon.
    \24\ TSA estimated that 79 percent of total trips are part of a 
round trip itinerary by dividing (c) by (a) on Table 4.

                              Table 4--Breakdown of One-Way Trips by Itinerary Type
----------------------------------------------------------------------------------------------------------------
                                                          One-way trips as
                                                           part of round-
                      Fiscal year                          trip itinerary     One-way trips       Total trips
                                                                \25\
                                                                       (a)                (b)                (c)
----------------------------------------------------------------------------------------------------------------
FY15...................................................        403,606,577        104,363,513        507,970,090
FY16...................................................        527,237,644        136,331,705        663,569,349
FY17...................................................        537,782,397        139,058,339        676,840,736
FY18...................................................        548,538,045        141,839,506        690,377,551
FY19...................................................        559,508,806        144,676,296        704,185,102
FY20...................................................        570,698,982        147,569,822        718,268,804
FY21...................................................        582,112,962        150,521,218        732,634,180
FY22...................................................        593,755,221        153,531,643        747,286,864
FY23...................................................        605,630,326        156,602,275        762,232,601
                                                        --------------------------------------------------------
    Total..............................................      4,928,870,961      1,274,494,316      6,203,365,277
----------------------------------------------------------------------------------------------------------------

    The imposition of a fee limitation for round trips results in a 
decrease in fees assessed from air passengers for those one-way trips 
that are part of a round-trip itinerary. To establish this difference, 
TSA again used BTS data to determine the average number of segments per 
each round-trip flight. Based on the BTS data of round-trip itineraries 
with more than two flight-coupons,\26\ TSA estimates that the average 
round-trip itinerary has 3.1 coupons. TSA uses the number of coupons to 
represent the number of one-way trips on a single itinerary. The fee 
limitation allows TSA to collect security service fees for two segments 
of an average round-trip itinerary. As a result, on average, TSA 
estimates the round-trip limitation will result in not collecting 1.1 
security service fees for each itinerary with more than two 
segments.\27\ Table 5 provides TSA's estimates of the count and amount 
of revenue collected with a round-trip limitation. The total fees 
collected over the period of analysis would be $33.95 billion 
undiscounted, or $24.19 billion and $29.17 billion, discounted at 7 and 
3 percent, respectively.
---------------------------------------------------------------------------

    \25\ The number of one-way trips as part of a round trip 
itinerary is calculated by multiplying the total number of trips by 
79 percent.
    \26\ Each coupon represents a distinct trip, or travel segment, 
of the itinerary. As such, the number of coupons on an itinerary 
equals the number of one-way trips that could potentially require a 
security service fee.
    \27\ This estimate is based on data from the BTS DB1B ticket 
query. To calculate the average number of coupons, TSA divided the 
total number of coupons for round trip itineraries with more than 
two coupons by the itinerary count. On average, an itinerary with 
more than two coupons has 3.1 coupons. (3,500,928/1,126,565=3.1). If 
collections are limited to two one-way trips per itinerary, TSA will 
be forfeiting the collection of 1.1 security service fees (3.1-2).

                                              Table 5--Estimated Fees Collected With Estimated Round Trips
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Total count of
                  Fiscal year                      round trip fees      Count of one-way      Fees collected    Fees collected one-       Total fees
                                                         \28\                 fees              round trip              way               collected
                                                                 (A)                  (B)      (C = round trip  (D = one-way fees x      (F) = (C) + (D)
                                                                                                fees x $11.20)               $5.60)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY15...........................................          196,059,350          104,363,513       $2,195,864,720         $584,435,673       $2,780,300,393
FY16...........................................          256,115,425          136,331,705        2,868,492,755          763,457,547        3,631,950,302
FY17...........................................          261,237,733          139,058,339        2,925,862,610          778,726,698        3,704,589,308
FY18...........................................          266,462,488          141,839,506        2,984,379,863          794,301,232        3,778,681,095
FY19...........................................          271,791,737          144,676,296        3,044,067,460          810,187,257        3,854,254,716
FY20...........................................          277,227,572          147,569,822        3,104,948,809          826,391,002        3,931,339,811
FY21...........................................          282,772,124          150,521,218        3,167,047,785          842,918,822        4,009,966,607
FY22...........................................          288,427,566          153,531,643        3,230,388,741          859,777,198        4,090,165,939
FY23...........................................          294,196,117          156,602,275        3,294,996,516          876,972,742        4,171,969,258
                                                --------------------------------------------------------------------------------------------------------
    Total......................................        2,394,290,112        1,274,494,316       26,816,049,258        7,137,168,171       33,953,217,429
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Comparing the fee structure, with and without a round-trip 
limitation, results in an estimated decrease in revenue collected from 
passengers of $785.63 million over the period of analysis.\29\ Table 6 
compares the estimated revenue as analyzed in the 2014 IFR to the 
estimated revenue as a result of the amendments made by Public Law 213-
294.
---------------------------------------------------------------------------

    \28\ To estimate the number of round trip fees, TSA subtracts 
the number of fees not collected from the number of one-way trips as 
part of a round-trip itinerary and divides by two. Fees not 
collected is calculated by multiplying the number of round trips 
with more than two coupons by 1.1 coupons not considered for 
collection, which is then subtracted from the total number of trips 
to estimate the total number of trips with fees collected. This is 
then subtracted from the total number of fees to estimate the fees 
not collected.
    \29\ To compare the 2014 IFR to this rule, TSA uses a period of 
analysis that includes the remaining portion of FY15 through the end 
of FY23, as that is the remaining period for which allocated funds 
to the general fund of the Treasury are specified.

[[Page 31856]]



                  Table 6--Comparing Estimated Revenue From 2014 IFR With Imposition of Round-Trip Limitation Under Public Law 113-294
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             Difference (lost       Lost revenue         Lost revenue
                  Fiscal year                          2014 IFR        Public Law 113-294        revenue)        (discounted at 7%)   (discounted at 3%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY15...........................................       $2,844,632,504       $2,780,300,393        ($64,332,112)        ($60,123,469)        ($62,458,361)
FY16...........................................        3,715,988,356        3,631,950,302         (84,038,053)         (73,402,090)        ($79,213,925)
FY17...........................................        3,790,308,123        3,704,589,308         (85,718,814)         (69,972,086)        ($78,444,858)
FY18...........................................        3,866,114,285        3,778,681,095         (87,433,191)         (66,702,363)        ($77,683,258)
FY19...........................................        3,943,436,571        3,854,254,716         (89,181,855)         (63,585,430)        ($76,929,051)
FY20...........................................        4,022,305,302        3,931,339,811         (90,965,492)         (60,614,148)        ($76,182,167)
FY21...........................................        4,102,751,408        4,009,966,607         (92,784,801)         (57,781,711)        ($75,442,534)
FY22...........................................        4,184,806,437        4,090,165,939         (94,640,497)         (55,081,631)        ($74,710,083)
FY23...........................................        4,268,502,565        4,171,969,258         (96,533,307)         (52,507,723)        ($73,984,742)
                                                --------------------------------------------------------------------------------------------------------
    Total......................................       34,738,845,552       33,953,217,429        (785,628,123)        (559,770,652)        (675,048,979)
                                                --------------------------------------------------------------------------------------------------------
        Annualized.............................  ...................  ...................  ...................         (85,917,221)         (86,699,144)
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Because these changes affect information provided in the 2014 IFR, 
Table 7 provides a revised analysis of the revenue to be collected from 
the security service fee in terms of the allocations available to 
offset TSA's appropriations for providing civil aviation security.

                                       Table 7--Revised Revenue Allocation
----------------------------------------------------------------------------------------------------------------
                                                    Fee allocated for    Fees allocated for       Total fees
                   Fiscal year                      security services     the general fund        collected
----------------------------------------------------------------------------------------------------------------
FY15 \30\........................................       $1,590,300,393       $1,190,000,000       $2,780,300,393
FY16.............................................        2,381,950,302        1,250,000,000        3,631,950,302
FY17.............................................        2,424,589,308        1,280,000,000        3,704,589,308
FY18.............................................        2,458,681,095        1,320,000,000        3,778,681,095
FY19.............................................        2,494,254,716        1,360,000,000        3,854,254,716
FY20.............................................        2,531,339,811        1,400,000,000        3,931,339,811
FY21.............................................        2,569,966,607        1,440,000,000        4,009,966,607
FY22.............................................        2,610,165,939        1,480,000,000        4,090,165,939
FY23.............................................        2,651,969,258        1,520,000,000        4,171,969,258
                                                  --------------------------------------------------------------
    Total........................................       21,713,217,429       12,240,000,000       33,953,217,429
----------------------------------------------------------------------------------------------------------------

    From the $33.95 billion collected over the period of analysis, 
$12.24 billion will be credited as offsetting receipts and deposited in 
the general funds of the Treasury, as specified in the Budget Act of 
2013. As such, TSA will see a $785.63 million reduction in fees 
collected from air passengers for security services over the period of 
analysis, as compared to the 2014 IFR.\31\
---------------------------------------------------------------------------

    \30\ For Table 7, TSA presents fees allocated for security 
services and total fees collected based on 285 days in FY15, but 
includes the total FY15 allocation for the General Fund as mandated 
in the Budget Act of 2013.
    \31\ Under the 2014 IFR, TSA would collect $23.30 billion for 
security services, whereas under this rule, TSA would collect $21.71 
billion for the period of analysis.
---------------------------------------------------------------------------

    TSA anticipates that there might be costs associated with each 
direct and foreign air carrier updating their current computer and 
ticket sales systems to reflect the new fee structure. Such costs are 
associated with the changes required by the statute that took effect on 
December 19, 2014.

Alternatives Discussion

    As this IFR is simply conforming TSA's regulations to changes in 
the statute, TSA has limited discretion when formulating this rule. 
Because of the unambiguous nature of the legislative language, there 
are no feasible alternatives for TSA to explore with this rulemaking 
that were not discussed in the 2014 IFR.

Regulatory Flexibility Act Assessment

    The Regulatory Flexibility Act (RFA) of 1980 requires that agencies 
perform a review to determine whether a proposed or final rule will 
have a significant economic impact on a substantial number of small 
entities. If the determination is that it will, the agency must prepare 
a regulatory flexibility analysis as described in the RFA. For purposes 
of the RFA, 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 
discussed in the preamble, this IFR is exempt from the procedural 
rulemaking requirements of 5 U.S.C. 553.

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 sec. 3507(d), obtain approval from the Office of 
Management and Budget (OMB) for each collection of information it 
conducts, sponsors, or requires through regulations.
    Information collection requirements associated with the security 
service fee requirements of 49 CFR part 1510 have been approved by the 
OMB through August 31, 2015, under the PRA

[[Page 31857]]

provisions, and assigned OMB Control Number 1652-0001. There are no 
changes to the information collection resulting from this rulemaking.

International Trade Impact Assessment

    The Trade Agreements Act of 1979 \32\ 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 it does not 
impose significant barriers to international trade.
---------------------------------------------------------------------------

    \32\ Public Law 96-39 (93 Stat. 144; July 26, 1979).
---------------------------------------------------------------------------

Unfunded Mandates Assessment

    The Unfunded Mandates Reform Act of 1995 \33\ (UMRA), is intended, 
among other things, to curb the practice of imposing unfunded Federal 
mandates on State, local, and tribal governments. Title II of UMRA 
requires each Federal agency to prepare a written statement assessing 
the effects of any Federal mandate in a proposed or final 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.'' Before TSA promulgates a rule for 
which a written statement is needed, sec. 205 of UMRA generally 
requires TSA to identify and consider a reasonable number of regulatory 
alternatives and adopt the least costly, most cost effective, or least 
burdensome alternative that achieves the objectives of the rule. The 
provisions of sec. 205 do not apply when they are inconsistent with 
applicable law. In addition, the requirements of Title II of UMRA do 
not apply when rulemaking actions are taken without the issuance of a 
notice of proposed rulemaking. Accordingly, TSA has not prepared a 
written statement.
---------------------------------------------------------------------------

    \33\ Public Law 104-4 (109 Stat. 66; March 22, 1995).
---------------------------------------------------------------------------

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 April 25 and 30, 
2007, encourages consultation between the charging authority and 
affected carriers.
    As the change to the security service fee has been set by Congress 
and there are no additional changes to how the program is implemented 
by TSA, no additional consultations by TSA are required.

Executive Order 13132, Federalism

    TSA has analyzed this IFR under the principles and criteria of E.O. 
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 \34\ (NEPA) 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.
---------------------------------------------------------------------------

    \34\ 42 U.S.C. 4321 et seq.
---------------------------------------------------------------------------

Energy Impact Analysis

    The energy impact of the action has been assessed in accordance 
with the Energy Policy and Conservation Act \35\ (EPCA). We have 
determined that this rulemaking is not a major regulatory action under 
the provisions of the EPCA.
---------------------------------------------------------------------------

    \35\ Public Law 94-163 (89 Stat. 871; Dec. 22, 1975), as amended 
(42 U.S.C. 6362).
---------------------------------------------------------------------------

List of Subjects in 49 CFR Part 1510

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

The Amendments

    For the reasons set forth in the preamble, the Transportation 
Security Administration amends part 1510 of Chapter XII of Title 49, 
Code of Federal Regulations as follows:

PART 1510--PASSENGER CIVIL AVIATION SECURITY SERVICE FEES

0
1. The authority citation for part 1510 continues to read as follows:

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


0
2. In Sec.  1510.3, add definitions for ``co-terminal,'' ``origin 
point,'' ``round trip,'' and ``terminates'' in alphabetical order to 
read as follows:


Sec.  1510.3  Definitions.

* * * * *
    Co-terminal means an airport serving a multi-airport city or 
metropolitan area that has been approved by TSA to be used as the same 
point for purposes of determining application of the security service 
fee imposed under Sec.  1510.5 of this part. Copies of the approved 
list are available on TSA's Web site at www.tsa.gov or by contacting 
[email protected].
* * * * *
    Origin point means the location at which a trip on a complete air 
travel itinerary begins.
* * * * *
    Round trip means a trip on an air travel itinerary that terminates 
or has a stopover at the origin point (or co-terminal).
* * * * *
    Terminates means the location at which a trip on a complete air 
travel itinerary ends.

0
3. In Sec.  1510.5, revise paragraph (a) to read as follows:


Sec.  1510.5  Imposition of security service fees.

    (a) Each direct air carrier and foreign air carrier described in 
Sec.  1510.9(a) shall impose a security service fee of $5.60 per one-
way trip for air transportation originating at an airport in the United 
States. Passengers may not be charged more than $5.60 per one-way trip 
or $11.20 per round trip.
* * * * *

    Issued in Arlington, Virginia, on May 29, 2015.
Mark Hatfield,
Acting Deputy Administrator.
[FR Doc. 2015-13506 Filed 6-3-15; 8:45 am]
 BILLING CODE 9110-05-P