[Federal Register Volume 87, Number 213 (Friday, November 4, 2022)]
[Notices]
[Pages 66721-66723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24101]


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DEPARTMENT OF HOMELAND SECURITY

Transportation Security Administration

[Docket No. TSA-2004-19605]


Hazardous Materials Endorsement (HME) Threat Assessment Program 
and Transportation Worker Identification Credential (TWIC[supreg]) 
Program Fees

AGENCY: Transportation Security Administration, DHS.

ACTION: Notice.

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SUMMARY: The Transportation Security Administration (TSA) administers 
the Hazardous Materials Endorsement (HME) and Transportation Worker 
Identification Credential (TWIC[supreg]) vetting programs. TSA conducts 
security threat assessments (STAs) of applicants to these programs, and 
in accordance with statutory requirements, collects fees from the 
applicants to recover TSA's costs to conduct the vetting and 
credentialing. In this Notice, TSA announces changes to the existing 
fee structure and fees for the HME and TWIC Programs to include initial 
in-person applications, in-person renewals, comparable STAs, and new 
online renewal fees. These updates will allow TSA to continue to 
improve the HME and TWIC enrollment experience, mitigate potential 
security risks, and ensure that the programs remain fully funded. TSA 
maintains a current listing of the overall fees for all HME enrollment 
options at https://www.tsa.gov/for-industry/hazmat-endorsement and for 
all TWIC enrollment options at https://www.tsa.gov/for-industry/twic.

DATES: The fee changes in this notice are effective November 3, 2022.

FOR FURTHER INFORMATION CONTACT: Stephanie Hamilton, Transportation 
Security Administration, 6595 Springfield Center Drive, Springfield, VA 
20598-6047; 571-227-2851; or email at [email protected] and 
[email protected].

SUPPLEMENTARY INFORMATION: You can find an electronic copy of 
rulemaking documents relevant to this action by searching the 
electronic FDMS web page at https://www.regulations.gov or at https://www.federalregister.gov. In addition, copies are available by writing 
or calling the individual in the FOR FURTHER INFORMATION CONTACT 
section.

Abbreviations and Terms Used in This Document

CDL--Commercial Driver's License
CHRC--Criminal History Records Check
FBI--Federal Bureau of Investigation
FAST--Free and Secure Trade
HME--Hazardous Materials Endorsement
MTSA--Maritime Transportation Security Act
STA--Security Threat Assessment
TWIC--Transportation Worker Identification Credential
UES--Universal Enrollment Services
USCG--U.S. Coast Guard

I. TWIC Program

A. Background

    The Maritime Transportation Security Act (MTSA) of 2002 requires 
the Secretary of the Department of Homeland Security to issue a 
biometric transportation security card to an individual requiring 
unescorted access to MTSA-regulated entities after determining that the 
individual does not pose a security risk.\1\ The TWIC Program is 
administered jointly by TSA and the U.S. Coast Guard (USCG). TSA 
conducts the STA and issues the credential, and USCG enforces the use 
of the TWIC at MTSA-regulated facilities and vessels.\2\
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    \1\ See Maritime Transportation Security Act of 2002, Public Law 
107-295, 116 Stat. 2064 (November 25, 2002).
    \2\ See 46 U.S.C. 70105.
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    Under TSA's regulations in 49 CFR part 1572, applicants for TWIC 
pay a fee to cover (1) the costs of performing and

[[Page 66722]]

adjudicating STAs, appeals, and waivers; (2) the costs of enrolling and 
transmitting biometric (fingerprints) and biographic applicant 
information; and (3) the Federal Bureau of Investigation (FBI) fee to 
process a criminal history records check (CHRC). The STA and physical 
TWIC card expire five years after the STA is approved by TSA, provided 
the individual continues to meet the eligibility standards. Individuals 
who require unescorted access to secure areas of MTSA-regulated 
entities must re-apply and undergo a new STA when their STA expires to 
maintain TWIC eligibility.\3\
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    \3\ See 49 CFR part 1572 for STA standards and TWIC expiration.
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    In August 2022, TSA implemented a new online renewal capability for 
certain TWIC applicants who maintain or previously maintained an active 
TWIC STA.\4\ Approximately 54 percent of active TWIC cardholders enroll 
for a new TWIC after their STA expires five years from the date of 
issuance. Online TWIC renewals will reduce the applicant's cost and 
time burdens by permitting eligible applicants to obtain a new TWIC 
without enrolling in-person at a TSA enrollment center. Additionally, 
TSA mitigates certain security risks associated with online renewals by 
enrolling current TWIC cardholders in recurrent vetting services, such 
as the FBI's Rap Back Services.
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    \4\ See 30-Day notice, 86 FR 11323 (February 24, 2021), for OMB 
Control Number 1652-0047 and related Supporting Statement.
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    The current application and renewal fee for the TWIC Program is 
$125.25. The current reduced application fee for applicants who possess 
a comparable STA, such as an HME, is $105.25. The current replacement 
card fee for lost, stolen, or damaged TWICs is $60.00.

B. TWIC Fee Changes

    TSA is revising the existing fee structure and fees for the TWIC 
program. Fees are impacted by several factors such as changes in 
contractual services. TSA uses contract services for enrollment 
services, vetting and adjudication support, credentialing services, 
information technology development, technology operations and 
maintenance, and customer service support. When the pertinent contracts 
for services are amended or renegotiated, the fees may be affected. 
Also, cost variations, such as changes in the number of applicants and 
FBI fee impact the STA fees. TSA reviews vetting fees once every two 
years.\5\ Upon review, if TSA finds that the fees collected exceed the 
total cost to provide the services, or do not cover the total cost for 
services, TSA must adjust the fee.
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    \5\ See 31 U.S.C. 3512 (the Chief Financial Officers Act of 1990 
(Pub. L. 101-576, 104 Stat. 2838, Nov. 15, 1990)).
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    In August 2022, TSA implemented a new online renewal process for 
certain TWIC applicants. This new capability permits eligible 
applicants to renew their TWIC without visiting a TSA enrollment 
center. With the implementation of this capability, TSA is updating the 
TWIC fee structure to include two renewal types: (1) in-person renewal 
at the enrollment center; and (2) online renewal using a desktop or 
mobile device to complete the enrollment transaction. Most individuals 
with an active TWIC will be able to renew online. Some individuals may 
need to visit an enrollment center for renewal for TSA to verify 
immigration status or update certain biometric or biographic 
information. Also, individuals eligible for online renewal may choose 
to visit a center in-person for renewal based on individual needs.
    The implementation of TWIC online renewals will result in a fee 
change for eligible applicants who renew within 12 months of their 
current STA expiration date. Operational efficiencies with the renewal 
process, such as limited or no in-person interaction with enrollment 
agents, will reduce the enrollment and vetting transaction costs for 
applicants and TSA. Also, TSA will use the applicant's biometric 
(fingerprint and photograph) information provided during the 
applicant's initial enrollment for renewals. With this notice, TSA is 
announcing that the new fee for an online renewal is $117.25. The fee 
for TWIC in-person enrollments and for in-person renewals at a 
Universal Enrollment Service (UES) enrollment center will remain the 
same at $125.25.
    TSA also analyzed the costs associated with the use of a comparable 
STA \6\. TSA is announcing that the revised fee for an eligible 
reduced-fee enrollment is decreasing from $105.25 to $93.00. The TSA 
fee for a replacement card remains the same at $60.00. Future changes 
to TWIC services and fees will be published as a Notice in the Federal 
Register and on the TSA website at https://www.tsa.gov/for-industry/twic.
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    \6\ Comparable STAs include HME and FAST
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II. HME Program

A. Background

    TSA conducts an STA for any driver seeking to obtain, renew, or 
transfer an HME on a State issued commercial driver's license (CDL) for 
the TSA HME Program. Under 49 U.S.C. 5103a, a State is prohibited from 
issuing or renewing a CDL unless TSA has first determined that the 
driver does not pose a security threat warranting denial of the HME. 
Currently, the HME program regulations in 49 CFR part 1572 permit 
States to collect and transmit the fingerprints and applicant 
information of drivers who apply to renew or obtain an HME; or to have 
a TSA agent collect and transmit the fingerprints and applicant 
information of such drivers.\7\
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    \7\ See 49 CFR 1572.13.
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    Applicants for an HME pay a fee to cover (1) the costs of 
performing and adjudicating STAs, appeals, and waivers; (2) the costs 
of enrolling and transmitting fingerprints and applicant information; 
and (3) the FBI fee charged to process a CHRC.\8\ States that choose to 
collect applicant information and submit it to TSA may charge 
applicants a State fee for that service, and TSA has no authority to 
establish, determine, or limit the amount of that fee. The HME STA 
expires five years after the STA is approved by TSA, provided the 
individual continues to meet the eligibility standards. Individuals who 
require an HME must re-apply and undergo a new STA when their STA 
expires to maintain eligibility for the HME.
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    \8\ See 70 FR 2542 (Jan. 13, 2005).
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B. HME Fee Changes

    The fees will remain the same for new HME enrollments and renewals. 
However, TSA is revising the fees that apply when using a comparable 
STA to obtain an HME. Fees are impacted by several factors, including 
changes in contractual services. Similar to the TWIC Program, TSA uses 
contract services for enrollment, vetting, adjudication support, 
information technology development, technology operations and 
maintenance, and customer service. When the pertinent contracts for 
services are amended or renegotiated, the fees may be affected. Also, 
cost variations, such as changes in the number of applicants, and FBI 
fee impacts the STA fees.
    TSA reviews vetting fees once every two years.\9\ Upon review, if 
TSA finds that the fees collected exceed the total cost to provide the 
services or do not cover the total costs for services, TSA must adjust 
the fee. TSA analyzed the costs associated with the use of a comparable 
STA for an HME, and found that the fees for these enrollments could

[[Page 66723]]

be lowered from $67.00 to $41.00. The fee for a new and renewal HME 
enrollment at a UES enrollment center will remain the same at $86.50.
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    \9\ See 31 U.S.C. 3512 (the Chief Financial Officers Act of 1990 
(Pub. L. 101-576, 104 Stat. 2838, Nov. 15, 1990)).
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    Future changes to HME services and fees will be published as Notice 
in the Federal Register and on the TSA website at https://www.tsa.gov/for-industry/hazmat-endorsement.

III. Authority To Collect and Methodology To Calculate Fee Changes

    Congress directed TSA to collect user fees to cover the costs of 
its transportation vetting and credentialing programs.\10\ TSA must 
collect fees to pay for conducting all portions of an STA; reviewing 
and adjudicating requests for correction of records, appeals, and 
waivers; information technology costs; personnel costs; and any other 
costs related to conducting the STA, providing a credential, or 
providing states the driver's eligibility determination.
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    \10\ See 6 U.S.C. 469(a).
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    The statute requires that any fee collected must be available only 
to pay for the costs incurred in providing services in connection with 
performing the STA. The funds generated by the fee do not have a 
limited period of time in which they must be used; as fee revenue and 
service costs do not always match perfectly for a given period, a 
program may need to carry over funding from one fiscal year to the next 
to ensure that sufficient funds are available to continue normal 
program operations. TSA complies with applicable requirements, such as 
the Chief Financial Officers Act of 1990 \11\ and Office of Management 
and Budget Circular A-25,\12\ and regularly reviews the fees to ensure 
they recover, but do not exceed the full cost of services.
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    \11\ See 31 U.S.C. 501 et seq.
    \12\ See http://www.whitehouse.gov/omb/circulars_a025.
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    TSA established the methodology for calculating the vetting fees 
for the TWIC and HME programs through notice and comment rulemaking, 
and stated that any fee changes using that same methodology would be 
published in a Notice.\13\ TSA uses that same methodology to evaluate 
the current fees and in establishing new fee amounts.
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    \13\ See 72 FR 55043 (September 28, 2007), 70 FR 2542 (Jan. 13, 
2005).
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    In 2013, TSA revised the TWIC and HME regulations to remove 
references to specific fee amounts and provide TSA with flexibility to 
modify fees, as necessary, to ensure that STA, enrollment, and 
credentialing fees reflect their associated costs and the programs 
could continue to operate if the costs exceeded regulatory caps.\14\ As 
a result of this rulemaking, TSA may change the fees as appropriate and 
provide Notice in the Federal Register to inform affected stakeholders 
of the revised fees and the basis for the changes.\15\
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    \14\ See Final Rule, Provisions for Fees Related to Hazardous 
Materials Endorsements and Transportation Worker Identification 
Credentials, 78 FR 45353 (April 16, 2013).
    \15\ See 49 CFR 1572.403(a) (State collection of HME fees), 
1572.405(a) (TSA collection of HME fees), and 1572.501(g) 
(imposition of TWIC fees).
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IV. Fee Announcements

    The vetting fees for the TWIC and HME programs are set forth below:

                  Table 1--Comparison of Current and New TWIC and HME Fees and Enrollment Type
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                                                         TWIC Program Fees               HME Program Fees
                 Enrollment type                 ---------------------------------------------------------------
                                                      Current           New           Current           New
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New Enrollment..................................         $125.25         $125.25          $86.50          $86.50
Renewal (In-Person).............................          125.25          125.25           86.50           86.50
Renewal (Online)................................             N/A          117.25             N/A             N/A
Comparable STA..................................          105.25           93.00           67.00           41.00
Replacement Card................................           60.00           60.00             N/A             N/A
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    In addition to a notice published in the Federal Register, TSA will 
publish these fees on the TSA website: https://www.tsa.gov/for-industry/hazmat-endorsement and https://www.tsa.gov/for-industry/twic, 
as applicable.
    Note that applicants may choose the respective program's enrollment 
option that best meets their needs based on the convenience of 
enrollment center locations and their eligibility for in-person or 
online renewal options. Drivers who require an HME in a state that does 
not use TSA's enrollment agent are subject to fees established by the 
state, not TSA.

    Dated: November 1, 2022.
Austin Gould,
Acting Executive Assistant Administrator, Operations Support.
[FR Doc. 2022-24101 Filed 11-3-22; 8:45 am]
BILLING CODE 9110-05-P