[Federal Register Volume 87, Number 247 (Tuesday, December 27, 2022)]
[Proposed Rules]
[Pages 79264-79272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27778]


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DEPARTMENT OF HOMELAND SECURITY

Transportation Security Administration

49 CFR Part 1548

[Docket No. TSA-2020-0002]
RIN 1652-AA72


Frequency of Renewal Cycle for Indirect Air Carrier Security 
Programs

AGENCY: Transportation Security Administration, DHS.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The Transportation Security Administration (TSA) is proposing 
to modify its regulations to reduce the frequency of renewal 
applications by indirect air carriers (IACs). Rather than requiring 
these entities to submit an application to renew their security program 
each year, TSA is proposing to require renewal once every three years. 
This modification would reduce the burden of compliance without a 
negative impact on security and would support this industry's economic 
recovery from the impacts of the COVID-19 public health crisis.

DATES: Submit comments on or before February 27, 2023.

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. To avoid 
duplication, please use only one of the following methods:
     Electronic Federal eRulemaking Portal: https://www.regulations.gov. Follow the online instructions for submitting 
comments.
     Mail: Docket Management Facility (M-30), U.S. Department 
of Transportation, 1200 New Jersey Avenue SE, West Building Ground 
Floor, Room W12-140, Washington, DC 20590-0001. The Department of 
Transportation (DOT), which maintains and processes TSA's official 
regulatory dockets, will scan the submission and post it to FDMS. 
Comments must be postmarked by the dates indicated above.
     Fax: (202) 493-2251.
    See SUPPLEMENTARY INFORMATION for format and other information 
about comment submissions.

FOR FURTHER INFORMATION CONTACT: Angel Rodriguez, telephone 1-571-227-
2108; email [email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    TSA invites interested persons to participate in this rulemaking by 
submitting written comments, data, or views. You may submit comments, 
identified by the TSA docket number for this rulemaking, to the 
ADDRESSES noted above. With each comment, please include this docket 
number at the beginning of your comments. 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 in person 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. TSA will stamp the date on the 
postcard and mail it to you.
    All comments, except those that include confidential or sensitive 
security information (SSI) \1\ will be posted to https://www.regulations.gov, and will include any personal information you have 
provided. Should you wish your personally identifiable information 
redacted prior to filing in the docket, please clearly indicate this 
request in your submission. 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.
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    \1\ ``Sensitive Security Information'' or ``SSI'' is information 
obtained or developed in the conduct of security activities, the 
disclosure of which would constitute an unwarranted invasion of 
privacy, reveal trade secrets or privileged or confidential 
information, or be detrimental to the security of transportation. 
The protection of SSI is governed by 49 CFR part 1520.
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Handling of Confidential or Proprietary Information and 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. Comments containing this type of information should be 
submitted separately from other comments, appropriately marked as 
containing such information, and submitted by mail to the address 
listed in FOR FURTHER INFORMATION CONTACT section. TSA will take the 
following actions for all submissions containing SSI:
     TSA will not place comments containing SSI in the public 
docket and will handle them in accordance with 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.
     TSA will treat requests to examine or copy information 
that is not in the public docket as any other request under the Freedom 
of Information Act (FOIA) (5 U.S.C. 552) and the Department of Homeland 
Security (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 or signed the comment (e.g., if submitted by an association, 
business, labor union, etc.). For more about privacy and the docket, 
review the Privacy and Security Notice for the

[[Page 79265]]

FDMS at https://www.regulations.gov/privacy-notice, as well as the 
System of Records Notice DOT/ALL 14--Federal Docket Management System 
(73 FR 3316, January 17, 2008) and the System of Records Notice DHS/ALL 
044--eRulemaking (85 FR 14226, March 11, 2020).
    You can review TSA's electronic public docket at https://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 
DOT facility is located in the West Building Ground Floor, Room W12-140 
at 1200 New Jersey Avenue SE, Washington, DC 20590.
    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. Make sure to identify the docket 
number of this NPRM.

Abbreviations and Terms Used in This Document

CCSF--Certified Cargo Screening Facility
CEQ--Council on Environmental Quality
DHS--Department of Homeland Security
DOT--Department of Transportation
E.O.--Executive Order
FOIA--Freedom of Information Act
IAC--Indirect Air Carrier
IACSSP--Indirect Air Carrier Standard Security Program
NEPA--National Environmental Policy Act
OMB--Office of Management and Budget
PRA--Paperwork Reduction Act of 1995
SBREFA--Small Business Regulatory Enforcement Fairness Act of 1996
SSI--Sensitive Security Information
TSA--Transportation Security Administration

I. Executive Summary

A. Purpose of the Regulatory Action

    An IAC, sometimes called a freight forwarder, acts as an 
intermediary between a shipper of air cargo and an air carrier by 
receiving and consolidating cargo from one or more shippers for 
transport on one or more aircraft flights. IACs are a critical 
component of a secure, air cargo supply-chain in the United States, 
helping to ensure the safe, timely, and efficient movement of goods 
every day. Approximately 3,800 IACs are operating in the United States 
and registered with TSA, ranging from sole proprietors working out of 
their homes to large corporations.
    Currently, TSA's regulations require IACs to renew their 
registration each year. TSA is proposing to modify 49 CFR 1548.7 to 
reduce the frequency at which IACs must renew their registration from 
annual to once every three years. This modification will reduce the 
burden of compliance by decreasing the time and effort an IAC must 
devote to renewing their registration, permitting them to focus on 
other operational and business priorities, including meeting supply 
chain demands as the industry recovers from the impact of the COVID-19 
public health crisis.
    TSA has determined this modification reduces the cost of compliance 
without any negative impacts on security. As noted below, TSA estimates 
that over ten years, cost savings aggregate to $7.8 million 
undiscounted, $6.6 million discounted at 3 percent, and $5.4 million 
discounted at 7 percent. The rulemaking would realize an annualized 
$800,000 in cost savings discounted at 7 percent over 10 years.

II. Background

A. Regulation of IACs

    As noted above, IACs play a critical role in ensuring a secure, air 
cargo supply-chain, acting as an intermediary between the shipper and 
the aircraft operator.\2\ To ensure the security of the air cargo 
system, TSA imposes security requirements on IACs in 49 CFR part 1548. 
Through these regulations, TSA ensures ``IACs are held accountable for 
securing the goods entrusted to them throughout those legs of the 
supply chain for which they are responsible.'' \3\
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    \2\ TSA's regulations define an IAC as ``any person or entity 
within the United States not in possession of [a Federal Aviation 
Administration] air carrier operating certificate, that undertakes 
to engage indirectly in air transportation of property, and uses for 
all or any part of such transportation the services of an air 
carrier.'' See 49 CFR 1540.5. The scope includes businesses engaged 
in the indirect transport of cargo on larger commercial aircraft, 
regardless of whether the operation is conducted with a passenger 
aircraft or an all-cargo aircraft.
    \3\ See Proposed Rule, Air Cargo Security Requirements, 69 FR 
65257, 65269 (Nov. 10, 2004).
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    Under 49 CFR 1548.5, each IAC must adopt and carry out the IAC 
Standard Security Program (IACSSP). Persons interested in becoming IACs 
are vetted by TSA and are required to implement security requirements 
in the IACSSP. These requirements are intended to ensure security 
during the period between when a package leaves a shipper and when it 
is presented to the aircraft operators. IACs must also ensure their 
employees understand and are trained to implement their security 
responsibilities.
    TSA uses a web-based, centralized system for businesses to obtain 
IAC approval and to renew this approval. Through this process, TSA 
checks whether an applicant is a legitimate business and determines 
whether the business or its personnel pose a threat to transportation 
security. TSA may withdraw approval of an IAC if individuals or 
companies are found to be security risks during revalidation.

B. Requirement for Annual Renewal

    Current 49 CFR 1548.7(b) presents the processes an IAC must follow 
annually to seek renewed approval from TSA to operate under the IACSSP. 
In general, annual renewal is a continuation of current practices and 
security measures in the IACSSP, including any TSA-approved amendments 
issued under 49 CFR 1548.7(c), (d), and/or (e). IACs must submit the 
renewal request to TSA at least 30 calendar days prior to expiration of 
the IACSSP, as well as other standards for the submission.
    Since 2006, TSA has required IACs to renew their registration each 
year. This requirement was based on the following considerations. 
First, other entities regulated by a TSA security program, such as 
aircraft operators and airports, must obtain annual FAA certification, 
which involves the submission and verification of information relating 
to the entity and its operations. IACs are not required to do so. 
Second, TSA found that the IAC industry has a high degree of turnover. 
The current regulations require the IAC to certify that it has provided 
TSA with its most up-to-date information and to acknowledge that 
intentional falsification of the information may be subject to civil 
and criminal penalties.\4\
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    \4\ See Air Cargo Security Requirements; Final Rule, 71 FR 
30477, 30514 (May 26, 2006).
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    Since the annual renewal requirement was imposed in 2006, TSA has 
determined that it is unnecessary to continue requiring annual renewal 
and that the program could be renewed once every three years without 
having a negative impact on security. As discussed below, this 
determination is based on two key factors: (1) TSA's inspection 
processes and priorities for IACs negate the need for annual renewals, 
and (2) the triennial renewal requirement for other TSA air cargo 
programs that have proven to be effective and secure.

[[Page 79266]]

    First, when the annual renewal requirement was imposed in 2006,\5\ 
TSA expected that the annual cycle of renewals would be the primary 
method to ensure the agency regularly reviewed each IAC and confirmed 
compliance with TSA security requirements.\6\ TSA, however, actually 
ensures compliance with the program through regular inspections of 
IACs. IACs are typically subject to a comprehensive inspection on a 
one, two, or three-year cycle depending on TSA's assessment of the 
relative security risk for each individual IAC. This security risk 
determination reflects vulnerabilities that exist based on the results 
of prior compliance reviews. For example, TSA generally conducts more 
frequent inspections of IACs that have lower compliance rates in order 
to ensure the IACs being inspected are performing all actions necessary 
to provide the required level of security. These reviews include 
targeted and supplemental inspections.
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    \5\ Id. at 30495. See also Proposed Rule, Air Cargo Security 
Requirements, 69 FR 65257, 65269 (Nov. 10, 2004).
    \6\ See supra n. 4.
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    An additional safeguard is provided by 49 CFR 1540.301, which 
allows TSA to withdraw approval of an IAC security program if TSA 
determines continued operation is contrary to security and the public 
interest.\7\ If TSA withdraws approval, an IAC must discontinue 
operation immediately, regardless of the renewal date of its program 
certification. See discussion in Section III.A. of this NPRM.
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    \7\ See 49 CFR 1548.7(f) and 1540.301(b).
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    Second, in addition to recognizing the effectiveness of its regular 
inspections to ensure compliance with the IAC program, TSA also 
considered the requirements for the IAC program compared to other 
aviation security requirements, specifically requirements applicable to 
Certified Cargo Screening Facilities (CCSFs) under 49 CFR part 1549. 
When TSA finalized the rule establishing the Certified Cargo Screening 
Program in 2011,\8\ TSA provided a three-year renewal period for 
CCSFs.\9\ Over more than a decade of implementing the Certified Cargo 
Screening Program validates that the triennial recertification cycle 
does not have a negative impact on security. The proposed rule does not 
change the required actions that IACs must perform to recertify or the 
requirements they must meet to maintain approval to operate as an IAC; 
the proposed rule simply reduces the frequency with which they must 
recertify.
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    \8\ See Final Rule, Air Cargo Screening, 76 FR 51847 (Aug. 18, 
2011).
    \9\ See 49 CFR 1549.7(b).
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C. Benefits of Proposed Modification of Renewal Period

    Consistent with the principles of Executive Order (E.O.) 12866 of 
September 30, 1993 (Regulatory Planning and Review) and E.O. 13563 of 
January 18, 2011 (Improving Regulation and Regulatory Review), TSA is 
committed to ensuring its regulations do not impose more stringent or 
burdensome requirements than are necessary to provide the intended 
security benefits. This action is also consistent with the burden-
reduction principles of E.O. 14058 of December 13, 2021 (Transforming 
Federal Customer Experience and Service Delivery to Rebuild Trust in 
Government). Whether imposing or revising a regulation, TSA is required 
by 49 U.S.C. 114(l)(3) to consider, as one factor in a final 
determination, whether the costs of the regulation are excessive in 
relation to the enhancement of security the regulation will provide.
    TSA has determined that the security benefits of annual 
recertifications do not outweigh the cost of annual renewal 
applications. As noted below, TSA estimates that over ten years the 
cost savings aggregate to $7.8 million undiscounted, $6.6 million 
discounted at 3 percent, and $5.4 million discounted at 7 percent. The 
rule would realize annualized savings of $0.8 million in 2020 dollars 
discounted at 7 percent.
    This change in the renewal requirement would not have a negative 
impact on security as the security enhancements provided by annual 
recertifications are minimal for the following two reasons. First, IACs 
are required to notify TSA within 30 days if there are any changes to 
the information provided in their application. See 49 CFR 1548.7(a)(5). 
This requirement ensures that TSA always has current information 
regarding the IAC. Second, and as previously noted, TSA's existing 
inspection program for IACs ensures that those IACs that might be at 
risk of losing certification are inspected more frequently to ensure 
they are meeting minimal program requirements. TSA would continue to 
perform compliance inspections with the same frequency as the current 
program operation and prioritization. The present inspection schedule, 
the requirements for inspections, and the scope of required inspections 
are not modified by this action.

D. Impact of COVID-19 Public Health Crisis on Air Cargo Supply Chain

    The current COVID-19 public health crisis has disrupted critical 
supply chains globally, including throughout the United States. IACs 
are challenged by the combination of increased demand for air cargo 
shipments and limitations resulting from the impact of COVID-19 on 
personnel. As a result, many IACs are facing logistical, operational, 
and personnel challenges. While the change to the rule may not have a 
significant economic impact, TSA believes it is appropriate to provide 
relief from regulatory requirements during this time, enabling IACs to 
focus their time and effort on the essential tasks of delivering 
essential goods and services.

III. Summary of the Proposed Rule

    TSA is proposing to make limited amendments to the text of 
paragraphs (a) and (b) in 49 CFR 1548.7, to change the periodic renewal 
of all IAC security programs from one year to three years. As noted in 
section I, this modification will reduce the burden of compliance by 
reducing the time and effort an IAC must devote to renewing their 
registration, permitting them to focus on other operational and 
business priorities, including meeting supply chain demands as the 
industry recovers from the COVID-19 public health crisis. The net 
result of these changes is a three-year renewal period for the approval 
to operate as an IAC under the IACSSP.

A. Duration of Program

    Currently, 49 CFR 1548.7(a)(4) states that a program remains 
effective from the time it is approved until the end of the calendar 
month one year after the month it was approved. The proposed rule 
removes the words ``one year after the month it was approved'' in 
paragraph (a)(4) and adds in their place: ``three years after the month 
it was approved, or until the program has been surrendered or 
withdrawn, whichever is earlier''.
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    \10\ See, e.g., text relating to Certified Cargo Screening 
Program renewal periods in 49 CFR 1549.7(a)(6).
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    In addition to the specific change in the renewal period in this 
section, TSA is proposing to add ``or until the program has been 
surrendered or withdrawn, whichever is earlier'', to the duration 
language to ensure greater consistency across TSA's cargo programs.\10\ 
The process for becoming an IAC can be seen as analogous, in some 
respects, to an enforceable contractual relationship between TSA

[[Page 79267]]

and the regulated entity. We grant persons permission to operate as an 
IAC on condition that they agree to comply with TSA's requirements. 
There are three actions that could result in a person no longer being 
able to represent themselves as an IAC: (1) the IAC fails to renew the 
program by the required deadline; \11\ (2) the IAC informs TSA that it 
no longer intends to function as a TSA-approved IAC (i.e., the IAC 
surrenders approval to operate as an IAC, similar to the concept of 
surrender of approval in other TSA programs); or (3) TSA withdraws 
approval consistent with the standards and procedures in TSA's 
regulations.\12\ The implementation of the changes proposed in this 
rule would increase the consistency and clarity of regulatory 
requirements across TSA's air cargo security regulations.\13\ TSA is 
proposing similar changes for paragraph (b)(4), which addresses 
duration of an IAC's program after renewal.
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    \11\ See 49 CFR 1548.7(b).
    \12\ See 49 CFR 1548.7(f) and (g), citing 49 CFR 1540.301.
    \13\ See, e.g., supra n. 10.
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B. Changes in Information

    Paragraph (a)(5) includes the requirement for IACs to notify TSA if 
any of the information relevant to TSA's approval of the program 
changes. In this section, TSA is proposing to make clear that the rule 
covers changes made both after submission of the initial application 
and information submitted as part of the renewal application. This 
additional language would clarify TSA's intent and ensure TSA has 
current information about the IAC's operations that could affect 
security and the IAC's approval to operate under the IACSSP.

C. Conforming Changes

    Under Sec.  1548.7(b)(1), IAC's must submit their application for 
renewal at least 30 calendar days ``prior to the first day of the 
anniversary month of initial approval.'' TSA is proposing to revise 
this language to conform with the proposed three-year duration of the 
program by requiring applications for renewal to be submitted 30 
calendar days prior to the 36th month after the initial approval of its 
security program.

IV. 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 the FOR 
FURTHER INFORMATION CONTACT section. Persons can obtain further 
information regarding SBREFA on the Small Business Administration's web 
page at https://www.sba.gov/category/advocacy-navigation-structure/regulatory-policy/regulatory-flexibility-act/sbrefa.

V. Regulatory Analyses

    TSA considered numerous statutes and Executive orders related to 
rulemaking when developing this rule. The following summarizes TSA's 
analyses of the impact of the rulemaking as directed by these statutes 
or Executive orders.

A. Regulatory Planning and Review

1. Background
    E.O. 12866 of September 30, 1993 (Regulatory Planning and Review), 
and E.O. 13563 of January 18, 2011 (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). E.O. 13563 emphasizes the importance of 
quantifying costs and benefits, reducing costs, harmonizing rules, and 
promoting flexibility.
    In conducting these analyses, TSA provides the following 
conclusions and summary information:
     The Office of Management and Budget (OMB) has determined 
that this rulemaking is not a ``significant regulatory action'' as 
defined in E.O. 12866; and
     TSA has certified that this rulemaking would not have a 
significant impact on a substantial number of small entities.
    The basis for these conclusions is set forth below.
    This proposed rule would reduce regulatory costs by reducing the 
frequency that IACs must renew their security program certifications. 
This rule would reduce the frequency of annual IAC security program 
certifications to once every three years. This rule does not impose any 
incremental costs because regulated entities are already performing all 
actions required to obtain the certification in question. The expected 
outcome will be a minimal impact with positive net benefits.
2. Estimated Cost Savings to Affected Entities
    The cost savings from this rule arise from extending the duration 
of IAC security programs approved by TSA from one year to three years. 
This change aligns the duration of the IAC security program with the 
Certified Cargo Screening Program.\14\ Table 1 summarizes the change 
and impact from this action.
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    \14\ See supra n. 8 and accompanying text.

                                            Table 1--Comparison of Current 49 CFR Part 1548 and Proposed Rule
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               Current                      Proposed rule                       Impact                               Estimated cost savings
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Requires annual renewal of security    Revises to renewal       (1) Aligns part 1548 renewal period     TSA estimates the annualized cost saving to
 program.                               every three years.       with that of the TSA-approved           industry and Federal government to be $800,000
                                                                 Certified Cargo Screening Program,      annualized at a 7 percent discount rate. Cost
                                                                 part 1549.                              savings arise from time saved due to a less
                                                                (2) Provides cost savings to industry    frequent security program renewal cycle.
                                                                 and TSA.
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    To estimate cost savings, TSA calculates the number of instances an 
IAC would resubmit a security program under the current annual 
requirement, and the number of instances that would be avoided under 
the proposed rule's three-year requirement. TSA uses the difference in 
the number of resubmission instances between the current requirement 
and the proposed rule as the basis for the cost savings.
    TSA uses historical data on the number of existing IACs to forecast 
the number of security programs submitted for certification over the 
ten-year period of analysis. TSA assumes that the regulatory change for 
less frequent recertification does not impact the annual number of 
forecasted active IAC certifications. Based on historical program data, 
TSA assumes the

[[Page 79268]]

aggregate population of active and approved IACs under the baseline and 
the proposed rule decreases each year with more dropping out than 
entering. TSA calculates that the aggregate active population decreases 
at an annual rate of 1.61 percent \15\ and compounds this rate to 
estimate the aggregate active IAC population for the next ten years, as 
displayed in column a of Table 2. The aggregate active population of 
IACs (column a) also represents the number of security program 
submissions and resubmissions under the baseline annual renewal 
requirement.
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    \15\ Based on TSA data, there were 4,576 IACs in 2008 and 3,768 
in 2020. TSA calculates a negative compound annual growth rate of 
1.61% = (3,768 / 4,576) (1 / (2020--2008))-1.
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    TSA postulates that the number of newly approved IAC applications 
represents a proportion of the number of aggregate active IACs in the 
same year. This proportion has stabilized over the last five years at 
5.41 percent. TSA applied this percentage to the forecasted aggregate 
number of active IACs during a year to estimate the number of newly 
approved IAC applications during the same year \16\ as displayed in 
column c of Table 2.
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    \16\ The number of aggregate active IACs is estimated using the 
previous year aggregate value and the negative growth rate. For 
instance, the year 0 (2022) aggregate number of active IACs of 3,648 
is estimated applying the negative growth rate to the year -1 (2021) 
aggregate number of 3,707: 3,648 = 3,707 x (1-1.61%). The number of 
new IAC applications in year 0 is estimated at 197 by multiplying 
the estimated number of aggregate IACs in year 0 (3,648) by the 
average proportion of new IAC applications: 197 = 3,648 x 5.41%.
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    The aggregate active population of IACs during a year is composed 
of IAC renewals and newly approved IAC applications. Since TSA 
calculates the number of newly approved IAC applications by assuming 
they are a constant proportion of the number of aggregate active IACs, 
then the number of renewals must be estimated applying the 
complementary proportion to the number of aggregate active IACs, as 
shown in column b of Table 2.\17\
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    \17\ The number of IAC renewals is estimated applying the 
percentage complementary to the proportion of new IAC applications 
(1-5.41%) into the aggregate number of active IACs. For instance, 
the year 0 (2022) number of renewals is estimated multiplying the 
number of aggregate active IACs, or 3,648, by the complementary 
percentage of 94.59% to obtain 3,451 (3,648 x 94.59%). The number of 
IAC renewals can also be estimated subtracting the number of newly 
approved IAC applications from the number of aggregate active IACs.
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    The exit rate of IAC in a given year is based on the subtraction of 
the given year's active IAC population from the preceding year's active 
IAC population, and the removal of the given year's newly approved 
IACs,\18\ as displayed in column d of Table 2. Since the number of IAC 
exits is estimated based on the number of active IACs during the year 
and the number of newly approved IAC applications, an exit rate is 
derived from these two estimates for the purposes of compounding the 
number of exits over time. TSA calculates an IAC exit rate of 6.92 
percent \19\ (i.e., do not resubmit or are not approved) from year to 
year. The exit rate in a specific year is the percentage of IACs that 
do not request their security program renewed \20\ out of the total 
number of IACs that had a security program in place prior to this year.
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    \18\ For example, calculations of Year 0, Year 1 and Year 2 IAC 
Exits are as follows:
    -257 (Year 0 Exits) = 3,648 (Year 0 Active IACs)-3,707 (Year -1 
Active IACs)-197 (Year 0 Newly Approved IACs);
    -253 (Year 1 Exits) = 3,589 (Year 1 Active IACs)-3,648 (Year 0 
Active IACs)-194 (Year 1 Newly Approved IACs);
    -249 (Year 2 Exits) = 3,532 (Year 2 Active IACs)-3,395 (Year 1 
Active IACs)-191 (Year 2 Newly Approved IACs).
    \19\ The exit rate is estimated by dividing the number of IAC 
exits by the aggregate number of active IACs in the previous year. 
For example, TSA estimates there would be 257 exits in year 0 (197 
exits that were replaced by new entrants plus the 60 exits that 
decreased the aggregate population). TSA calculates a 6.92% exit 
rate in year 0 (257 exits / 3,707 aggregate active IACs in year -1). 
This exit rate is the same throughout the ten-year period of 
analysis. The exit rate for future years can also be derived 
mathematically as follows: (Newly Approved IAC Proportion) x (1 + 
Active IAC Growth Rate)-(Active IAC Growth Rate), which numerically 
is equal to: 6.92% = 5.41% (1-1.61%)-(-1.61%).
    \20\ Firms do not get renewals either because a submission was 
not filed or was not approved.
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    TSA estimates the total number of submissions in two blocks: the 
first block includes submissions associated with the current IAC 
population in each year, and the second block includes submissions from 
new applicants. This proposed rule is expected to be implemented in 
2023 (year 1) and the relevant 2022 active IAC population will have, by 
then, a valid security plan; which will have to be renewed following 
the new three-year cycle.\21\ New applicants would also have to follow 
this three-year renewal cycle. In both blocks, there is a share of IAC 
firms that will not renew their security plans during the next renewal 
event, and a share of IAC firms that will renew. The number of IACs 
resubmitting in a given year is estimated by multiplying the number of 
program submissions from three years prior by a factor that results 
from compounding the annual exit rate over three years; this retention 
factor, estimated to be 80.6 percent,\22\ is multiplied by the number 
of program submissions from three years prior to estimate the number of 
renewals in the corresponding year.
---------------------------------------------------------------------------

    \21\ It is assumed that the validity of security plans will be 
extended until year 1 once this action is executed. If an IAC firm 
in the year 0 population wants to remain active over the 10 years of 
analysis it will have to obtain four renewals during this period, in 
years 1, 4, 7, and 10.
    \22\ 80.6% = (100%-6.92% exit rate)\(3 year cycle)\.
---------------------------------------------------------------------------

    Table 2 staggers recertifications under the final rule's three-year 
cycle \23\ in four separate columns for submissions one to four in the 
10-year projection span. For example, TSA estimates that 2,738 of the 
3,395 IAC recertifications in year 1 would resubmit their security 
programs in year 4,\24\ and that 159 of the 197 new entrants in year 1 
would resubmit for the first time in year 4 (see columns e and f 
regarding first and second submissions). In Table 2, TSA takes into 
account four recertification cycles \25\ within the ten-year framework 
(columns e through h) and sums all the recertifications under the 
proposed rule in column i. Finally, TSA calculates the number of 
eliminated recertifications (column j) by subtracting the proposed rule 
recertifications (column i) from the baseline annual recertifications 
(column b).
---------------------------------------------------------------------------

    \23\ A cycle is the period in between renewals (or between the 
first renewal and the initial approval). The three-year cycle means 
that submissions have to be renewed every three years. The current 
submission cycle is annual, one submission every year.
    \24\ Note IACs that were approved by TSA in year -1 (two years 
prior to the start date of this rule) and partially in year 0 (one 
year prior to the publication of this proposed rule) would need to 
resubmit 36 months from their last approval. IACs that were approved 
prior to the publication of the proposed rule (-1 & 0) are included 
in year -1, for the purpose of this analysis. For example: (Year 4 
Second Cycle Resubmissions) = (Year 1 Renewals) x 80.6%
    \25\ The frequency in which an IAC must resubmit their security 
program for review.

[[Page 79269]]



                                                         Table 2-- Number of Proposed Rule Eliminated Security Program Recertifications
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Baseline                                               Recertification cycle \28\                Proposed
                          Year                            Active IACs    recerts      New IACs       IAC exits     ----------------------------------------------------     rule      Eliminated
                                                              \26\         \27\                                         1st          2nd          3rd          4th        recerts      recerts
                                                              a(-1) =   b1 = first     c = an x  dn = (an-a(n-1))-   e1 = b1 en  fn = e(n-3)  gn = f(n-3)  hn = g(n-3)  i = e + f +      j = b-i
                                                          initial pop         year      (5.41%)                 cn   = c(n-3) x    x (0.806)    x (0.806)    x (0.806)        g + h
                                                           a = a(n-1)     renewals                                      (0.806)
                                                          x (1-1.61%)    bn = an x
                                                                         (1-5.41%)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................................        3,589        3,395          194               -253        3,395            0            0            0        3,395            0
2.......................................................        3,532        3,341          191               -249          162            0            0            0          162        3,179
3.......................................................        3,475        3,287          188               -245          159            0            0            0          159        3,128
4.......................................................        3,419        3,234          185               -241          156        2,738            0            0        2,894          340
5.......................................................        3,364        3,182          182               -237          154          130            0            0          284        2,898
6.......................................................        3,310        3,131          179               -233          151          128            0            0          280        2,852
7.......................................................        3,257        3,081          176               -229          149          126        2,207            0        2,483          598
8.......................................................        3,205        3,032          173               -226          147          124          105            0          376        2,656
9.......................................................        3,153        2,983          170               -222          144          122          103            0          370        2,613
10......................................................        3,103        2,935          168               -218          142          120          102        1,780        2,144          791
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Calculations may not be exact due to rounding in the table.

     
---------------------------------------------------------------------------

    \26\ The active IAC population in subsequent years was estimated 
by applying the negative growth rate of 1.61% to the active IAC 
population. The negative growth rate represents the net change in 
the active IAC population accounting for IAC exits and entries. Year 
1's value accounts for three years of negative growth derived from 
3,768 IACs as of the end of fiscal year 2020 based on TSA records.
    \27\ Baseline renewals represent Active IACs minus New IACs.
    \28\ A retention factor of 0.806 is calculated as the exit rate 
of 6.92 percent compounded over three years to account for the 
number of IACs still operating who submitted a security program 
three years prior.
---------------------------------------------------------------------------

    TSA estimates a time burden of four hours for an IAC manager to 
review and resubmit a security program. To calculate the hourly savings 
to industry, TSA multiplies the four-hour burden by the fully loaded 
hourly wage rate for an IAC manager. TSA calculates the wage rate by 
estimating a weighted wage rate for two occupations across two industry 
subgroups.\29\ To calculate the weighted wage rate, TSA multiplies each 
labor category wage rate by its respective number of employees, sums 
the product of these calculations, and then divides the result by the 
total number of employees across all four wage rates. Table 3 
illustrates the weighted average wage calculation.
---------------------------------------------------------------------------

    \29\ Bureau of Labor Statistics (BLS), U.S. Department of Labor, 
May 2020 National Industry Specific Occupation Employment and Wage 
Estimates, First-Line Supervisors of Transportation and Material 
Moving Workers (SOC 53-1040) in Freight Transportation Arrangement 
(NAICS 488510) and Administrative Management and General Management 
Consulting Services (NAICS 541611), and to Transportation, Storage, 
and Distribution Managers (SOC 11-3071) in (NAICS 488510) and (NAICS 
541611). (Accessed May 19, 2021 at https://www.bls.gov/oes/2020/may/naics4_541600.htm and https://www.bls.gov/oes/2020/may/naics4_488500.htm).

                           Table 3--Calculation of Weighted Average Industry Wage Rate
----------------------------------------------------------------------------------------------------------------
                                                                                    Wage  rate       Number of
                                                                                 ----------------    employees
                Industry NAICS                             Occupations                           ---------------
                                                                                         a               b
----------------------------------------------------------------------------------------------------------------
Freight Transportation Arrangement (488510)...  First-Line Supervisors of                 $28.72           3,460
                                                 Transportation and Material
                                                 Moving Workers (53-1040).
                                                Transportation, Storage, and               46.41           4,920
                                                 Distribution Managers (11-3071).
Management, Scientific, and Technical           First-Line Supervisors of                  27.52           3,190
 Consulting Services (541611).                   Transportation and Material
                                                 Moving Workers (53-1040).
                                                Transportation, Storage, and               50.65           2,680
                                                 Distribution Managers (11-3071).
----------------------------------------------------------------------------------------------------------------
Industry Weighted Average Wage Rate = [sum](a x b) / [sum]b                                               $38.68
----------------------------------------------------------------------------------------------------------------
Note: Calculations may not be exact due to rounding in the table.

    Next, TSA adjusts this wage rate to account for employer 
benefits,\30\ which results in an industry compensation rate of $57.90 
per hour. Table 4 illustrates the calculation of the hourly industry 
compensation rate based on these adjustments.
---------------------------------------------------------------------------

    \30\ The average compensation factor is 1.4968. 1.4968 = 
(($31.76 + $30.89 + $30.99 + $30.40) / 4) / (($21.35 + $20.62 + 
$20.61 + $20.29) / 4). The compensation factor is calculated based 
on the average of the quarterly total compensation divided by the 
average of the quarterly total wages. Source: BLS, News Releases, 
2020 Employer Costs for Employee Compensation, Table 4: Employer 
Costs for Employee Compensation for private industry workers by 
occupational and industry group (Transportation and Material Moving 
Occupational Group), as published in June 2020, September 2020, 
December 2020, and March 2021. (Accessed May 19, 2021 at https://www.bls.gov/bls/news-release/ecec.htm).

[[Page 79270]]



           Table 4--Calculation of Industry Compensation Rate
------------------------------------------------------------------------
                                                  Compensation Rate (c =
 Weighted wage rate (a)    Benefits Factor (b)            a x b)
------------------------------------------------------------------------
               $38.68                   1.4968                   $57.90
------------------------------------------------------------------------

    TSA multiplies four hours per resubmission by the $57.90 for an IAC 
manager to calculate a unit cost savings of $232 per 
recertification.\31\
---------------------------------------------------------------------------

    \31\ $231.61 Renewal Unit Cost to Industry = 4-Hour Renewal Time 
Burden x $57.90 Compensation Rate for IAC Managers.
---------------------------------------------------------------------------

    TSA estimates a duration of 2.25 hours for TSA staff to review a 
resubmission. The TSA review staff is composed of two ``I'' pay band 
members \32\ and four ``J'' pay band members. Each submission could be 
reviewed by any one of these staff members. TSA calculates a staff 
compensation rate based on the weighted average of two different TSA 
pay-bands that conduct reviews. To calculate the TSA weighted 
compensation rate, TSA multiplies the respective pay band compensation 
\33\ by the respective number of employees, sums the product of these 
calculations, and then divides by the total number of employees. Table 
5 displays this weighted average calculation.
---------------------------------------------------------------------------

    \32\ TSA uses an SV pay grading system, which is a discrete 
salary system with pay ranges, incorporated into pay bands.
    \33\ TSA, DHS Modular Cost Standards, Washington DC Metropolitan 
Area Locality Pay, I-Band $70.62 = $147,382 annual compensation / 
2,087 hours and J-Band $83.17 = $173,585 annual compensation / 2,087 
hours (Office Personnel Management changed the 2,080 work hours for 
Federal employees to 2,087 by amending 5 U.S.C. 5504(b). Source: 
Consolidated Omnibus Budget Reconciliation Act of 1985, Public Law 
99-272, 100 Stat. 82 (April 7, 1986).

                         Table 5--Calculation of Weighted Average TSA Compensation Rate
----------------------------------------------------------------------------------------------------------------
                                                                                   Compensation      Number of
                                                                                      rate *         employees
                                  TSA pay band                                  --------------------------------
                                                                                        a                b
----------------------------------------------------------------------------------------------------------------
TSA I Band.....................................................................           $70.62               2
TSA J Band.....................................................................            83.17               4
----------------------------------------------------------------------------------------------------------------
Weighted Average TSA Compensation Rate = [sum](a x b) / [sum]b                            $78.99
----------------------------------------------------------------------------------------------------------------
* Compensation Rate includes employer benefits.

    TSA multiplies 2.25 hours by the TSA compensation rate of $78.99 
per hour to obtain a unit cost savings per recertification of $178.\34\
---------------------------------------------------------------------------

    \34\ $177.73 Renewal Unit Cost to TSA = $78.99 I/J Band TSA 
Weighted Compensation Rate x 2.25 Hour Burden for Renewal Review.
---------------------------------------------------------------------------

    To calculate savings, TSA multiplies the number of eliminated 
resubmissions from column j of Table 2, by the respective unit cost 
savings for industry ($232) and TSA ($178). Table 6 displays the 
industry, TSA, and total savings from modifying the security program 
resubmission frequency from one to three years. TSA estimates that over 
ten years cost savings aggregate to $7.8 million undiscounted, $6.6 
million discounted at 3 percent, and $5.4 million discounted at 7 
percent. The proposed rule would realize an annualized $0.8 million 
cost savings discounted at 7 percent over 10 years.

                                                   Table 6--Total Cost Savings From the Proposed Rule
                                                                      [$Thousands]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Eliminated    Industry savings     TSA savings           (Cost savings) d = [sum]b,c
                                                            resubmissions  -----------------------------------------------------------------------------
                           Year                           ----------------- b = a x $231.61 / c = a x $177.73 /                  Discounted   Discounted
                                                                  a               1,000             1,000        Undiscounted      at 3%        at 7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
1........................................................  ...............                $0                $0              $0           $0           $0
2........................................................            3,179               736               565           1,301        1,227        1,137
3........................................................            3,128               725               556           1,280        1,172        1,045
4........................................................              340                79                60             139          124          106
5........................................................            2,898               671               515           1,186        1,023          846
6........................................................            2,852               660               507           1,167          978          778
7........................................................              598               139               106             245          199          153
8........................................................            2,656               615               472           1,087          858          633
9........................................................            2,613               605               464           1,070          820          582
10.......................................................              791               183               141             324          241          165
                                                          ----------------------------------------------------------------------------------------------
    Total................................................           19,056             4,413             3,387           7,800        6,641        5,443
                                                          ----------------------------------------------------------------------------------------------
    Annualized...........................................  ...............  ................  ................  ..............          775          779
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Calculation may not be exact in table due to rounding.


[[Page 79271]]

B. Small Entities

    The Regulatory Flexibility Act \35\ requires agencies to consider 
whether some rules would have a significant economic impact on a 
substantial number of small entities, including small businesses and 
not-for-profit organizations that are independently owned and operated 
and are not dominant in their fields, and governmental jurisdictions 
with populations of less than 50,000. This rule does not place any new 
requirements on the regulated industry or small businesses.
---------------------------------------------------------------------------

    \35\ See Public Law 96-354, 94 Stat. 1164 (Sept. 19, 1980) as 
codified at 5 U.S.C. 601 et seq.
---------------------------------------------------------------------------

C. Collection of Information

    The Paperwork Reduction Act of 1995 (PRA) \36\ requires Federal 
agencies to 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 OMB for each collection 
of information it conducts, sponsors, or requires through regulations. 
As provided by the PRA, 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. 
The collection of information covered by this proposed rule is covered 
by OMB control number 1652-0040.
---------------------------------------------------------------------------

    \36\ See 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------

    This proposed rule impacts the collection of information by 
reducing the frequency that information must be submitted. This 
reduction would decrease the current number of security program 
recertifications submitted from an estimated annual average of 3,700 to 
1,239 responses (a reduction of 2,461). The corresponding burden is 
also reduced from an annual average of 14,800 hours to 4,956 hours (a 
reduction of 9,844 hours). Table 7 displays the annual number of 
responses and burden hour estimates associated with the proposed rule.

                                             Table 7--PRA Information Collection Responses and Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              Responses
                                             ---------------------------------------------------------------------------
             Collection activity                                                                Average     Time burden    Total hours    Average annual
                                                Year 1     Year 2     Year 3       Total        annual     per response                       hours
                                                                                 responses     responses      (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Proposed Rule Recerts.......................     3,395        162        159         3,716         1,239   ............          4,956            1,652
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As required by the PRA (44 U.S.C. 3507(d)), TSA has submitted a 
copy of the proposed rule to the OMB for its review of the collection 
of information.

D. International Trade Impact Assessment

    The Trade Agreements Act of 1979 \37\ prohibits Federal agencies 
from establishing standards or engaging in related activities that 
create unnecessary obstacles to the foreign commerce of the United 
States. Pursuant to these requirements, the establishment of standards 
is not considered an unnecessary obstacle to the foreign commerce of 
the United States, so long as the standard has a legitimate domestic 
objective, such as the protection of safety, and does not operate in a 
manner that excludes imports that meet this objective. The statute also 
requires consideration of international standards and, where 
appropriate, that they be the basis for U.S. standards.
---------------------------------------------------------------------------

    \37\ See Public Law 96-39, 93 Stat. 144 (July 26, 1979) as 
amended by the Uruguay Round Agreements Act, Public Law 103-465, 108 
Stat 4809 (Dec. 8, 1994), codified at 19 U.S.C. 2531-2533.
---------------------------------------------------------------------------

    TSA has assessed the potential effect of the proposed rule and 
determined that it does not impose any new requirements. Therefore, the 
rule will not create any unnecessary obstacles to foreign commerce of 
the United States.

E. Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 \38\ requires 
each Federal agency to prepare a written statement assessing the 
effects of any Federal mandate in a proposed agency rule, or final rule 
for which a proposed rule was published, that may result in an 
expenditure of $100 million or more (in 1995 dollars) in any one year 
by State, local, and tribal governments, in the aggregate, or by the 
private sector. The proposed rule does not contain such a mandate. 
Therefore, the written statement requirements of the Act do not apply.
---------------------------------------------------------------------------

    \38\ See Public Law 104-4, 109 Stat. 48 (Mar. 22, 1995), 
codified at 2 U.S.C. 1501-1538.
---------------------------------------------------------------------------

F. Environment

    TSA reviews proposed actions to determine whether the National 
Environmental Policy Act (NEPA) applies to them, and if so, what degree 
of analysis is required. DHS Directive 023-01 Rev. 01 and Instruction 
Manual 023-01-001-01 Rev. 01 establish the procedures that DHS and its 
components use to comply with NEPA and the Council on Environmental 
Quality (CEQ) regulations for implementing NEPA, 40 CFR parts 1500 
through 1508.
    The CEQ regulations allow Federal agencies to establish, with CEQ 
review and concurrence, categories of actions (categorical exclusions) 
which experience has shown do not individually or cumulatively have a 
significant effect on the human environment and, therefore, do not 
require an Environmental Assessment or Environmental Impact 
Statement.\39\ For an action to be categorically excluded, it must 
satisfy each of the following three conditions: (1) the entire action 
clearly fits within one or more of the categorical exclusions; (2) the 
action is not a piece of a larger action; and (3) no extraordinary 
circumstances exist that create the potential for a significant 
environmental effect.\40\
---------------------------------------------------------------------------

    \39\ 40 CFR 1507.3(b)(2)(ii), 1508.4.
    \40\ See Instruction Manual, section V.B(2)(a)-(c).
---------------------------------------------------------------------------

    This rulemaking has no anticipated environmental effects. 
Specifically, this proposed rule extends the duration of TSA approval 
of IAC security programs for up to three years without modifying 
standards or imposing an additional burden on regulated entities. It 
fits within categorical exclusion A3(d), ``Promulgation of rules . . . 
that interpret or amend an existing regulation without changing its 
environmental effect.'' \41\ Furthermore, the proposed rule is not part 
of a larger action and presents no extraordinary circumstances creating 
the potential for significant environmental impacts. As such, the 
amendment is categorically excluded from further NEPA review.
---------------------------------------------------------------------------

    \41\ See id. at Appendix A, Table 1.

---------------------------------------------------------------------------

[[Page 79272]]

G. International Compatibility and Cooperation

    E.O. 13609 of May 1, 2012 (Promoting International Regulatory 
Cooperation),\42\ promotes international regulatory cooperation to meet 
shared challenges involving health, safety, labor, security, 
environmental, and other issues and to reduce, eliminate, or prevent 
unnecessary differences in regulatory requirements. TSA analyzed this 
action under the policies and agency responsibilities of E.O. 13609, 
and has determined that this action would have no effect on 
international regulatory cooperation. In keeping with U.S. obligations 
under the Convention on International Civil Aviation (also known as the 
``Chicago Convention''), it is TSA policy to comply with International 
Civil Aviation Organization Standards and Recommended Practices to the 
maximum extent practicable. TSA has determined that this regulation has 
no direct relationship to the Chicago Convention.
---------------------------------------------------------------------------

    \42\ Published at 77 FR 26413 (May 4, 2012).
---------------------------------------------------------------------------

H. Executive Order 13132, Federalism

    TSA has analyzed this rulemaking under the principles and criteria 
of E.O. 13132 of August 4, 1999 (Federalism).\43\ TSA has determined 
that this action will not have a substantial direct effect on the 
States, or the relationship between the Federal 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.
---------------------------------------------------------------------------

    \43\ Published at 64 FR 43255 (Aug. 10, 1999).
---------------------------------------------------------------------------

I. Executive Order 13211, Regulations That Significantly Affect Energy 
Supply, Distribution, or Use

    TSA analyzed this rulemaking under E.O. 13211 of May 18, 2001 
(Actions Concerning Regulations that Significantly Affect Energy 
Supply, Distribution, or Use).\44\ TSA has determined that it is not a 
``significant energy action'' under the Executive order and it is not 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy.
---------------------------------------------------------------------------

    \44\ Published at 66 FR 28355 (May 22, 2001).
---------------------------------------------------------------------------

List of Subjects in 49 CFR Part 1548

    Air transportation, Reporting and recordkeeping requirements, 
Security measures.

The Amendment

    For the reasons set forth in the preamble, the Transportation 
Security Administration proposes to amend chapter XII of title 49, Code 
of Federal Regulations, as follows:

SUBCHAPTER C--CIVIL AVIATION SECURITY

PART 1548--INDIRECT AIR CARRIER SECURITY

0
1. The authority citation for part 1548 continues to read as follows:

    Authority: 49 U.S.C. 114, 5103, 40113, 44901-44905, 44913-44914, 
44916-44917, 44932, 44935-44936, 46105.


Sec.  1548.7   [Amended]

0
2. Amend Sec.  1548.7 by:
0
a. In paragraph (a)(4), removing the words ``one year after the month 
it was approved'' and adding in their place ``three years after the 
month it was approved, or until the program has been surrendered or 
withdrawn, whichever is earlier''.
0
b. In paragraph (a)(5) introductory text, adding the words ``or 
renewal'' after the words ``submitted during its initial''.
0
c. In paragraph (b)(1), removing the words ``at least 30 calendar days 
prior to the first day of the anniversary month of initial approval'' 
and adding in their place ``at least 30 calendar days prior to the 36th 
month after the initial approval''.
0
d. In paragraph (b)(4), removing the words ``one year after the month 
it was renewed'' and adding in their place ``three years after the 
month it was renewed, or until the program has been surrendered or 
withdrawn, whichever is earlier''.

    Dated: December 16, 2022.
David P. Pekoske,
Administrator.
[FR Doc. 2022-27778 Filed 12-23-22; 8:45 am]
BILLING CODE 9110-05-P