[Federal Register Volume 89, Number 207 (Friday, October 25, 2024)]
[Rules and Regulations]
[Pages 85340-85386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23881]



[[Page 85339]]

Vol. 89

Friday,

No. 207

October 25, 2024

Part III





Department of Homeland Security





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6 CFR Part 37





Minimum Standards for Driver's Licenses and Identification Cards 
Acceptable by Federal Agencies for Official Purposes; Waiver for Mobile 
Driver's Licenses; Final Rule

Federal Register / Vol. 89, No. 207 / Friday, October 25, 2024 / 
Rules and Regulations

[[Page 85340]]


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DEPARTMENT OF HOMELAND SECURITY

6 CFR Part 37

[Docket No. TSA-2023-0002]
RIN 1652-AA76


Minimum Standards for Driver's Licenses and Identification Cards 
Acceptable by Federal Agencies for Official Purposes; Waiver for Mobile 
Driver's Licenses

AGENCY: Transportation Security Administration (TSA), Department of 
Homeland Security (DHS).

ACTION: Final rule.

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SUMMARY: The Department of Homeland Security (DHS) is amending the REAL 
ID regulations to waive, on a temporary and State-by-State basis, the 
regulatory requirement that mobile or digital driver's licenses or 
identification cards (collectively ``mobile driver's licenses'' or 
``mDLs'') must be compliant with REAL ID requirements to be accepted by 
Federal agencies for official purposes, as defined by the REAL ID Act, 
when full enforcement of the REAL ID Act and regulations begins on May 
7, 2025.

DATES: Effective date: This rule is effective November 25, 2024.
    Incorporation by Reference: The incorporation by reference of 
certain material listed in the rule is approved by the Director of the 
Federal Register as of November 25, 2024. The incorporation by 
reference of certain other material listed in the rule was approved by 
the Director of the Federal Register as of January 14, 2016.

FOR FURTHER INFORMATION CONTACT: 
    Technical questions: George Petersen, Senior Program Manager, REAL 
ID Program, Enrollment Services and Vetting Programs, Transportation 
Security Administration; telephone: (571) 227-2215; email: 
[email protected].
    Legal questions: Anurag Maheshwary, Attorney Advisor, Office of 
Chief Counsel, Transportation Security Administration; telephone: (571) 
227-4812; email: [email protected].

SUPPLEMENTARY INFORMATION:

Availability of Rulemaking Document

    You can find an electronic copy of this rulemaking using the 
internet by accessing the Government Publishing Office's web page at 
https://www.govinfo.gov/app/collection/FR/ to view the daily published 
Federal Register edition or accessing the Office of the Federal 
Register's web page at https://www.federalregister.gov. Copies are also 
available by contacting the individual identified for ``Technical 
Questions'' in the FOR FURTHER INFORMATION CONTACT section. Make sure 
to identify the docket number of this rulemaking.

Abbreviations and Terms Used in This Document

AAMVA--American Association of Motor Vehicle Administrators
CA/Browser Forum--Certification Authority Browser Forum
CISA--Cybersecurity and Infrastructure Security Agency
DHS--U.S. Department of Homeland Security
EDL--Enhanced driver's license and identification card
FIPS--Federal Information Processing Standards
HSM--Hardware security module
IBR--Incorporation by reference or Incorporate by reference
IEC--International Electrotechnical Commission
ISO--International Organization for Standardization
IT--Information technology
mDL--Mobile driver's license and mobile identification card
NIST--National Institute for Standards and Technology
NPRM--Notice of proposed rulemaking
OFR--Office of Federal Register
OMB--Office of Management and Budget
PUB--Publication
RFI--Request for information
SP--Special publication
TSA--Transportation Security Administration

Table of Contents

I. Executive Summary
    A. Purpose of this Rulemaking
    B. Summary of the Major Provisions
    C. Need for a Multi-Phased Rulemaking
    D. Costs and Benefits
II. Background
    A. REAL ID Act, Regulations, and Applicability to mDLs
    B. Rulemaking History
    C. mDL Overview
    D. Industry Standards and Government Guidelines for mDLs
III. General Discussion of the Rulemaking
    A. Changes Between NPRM and Final Rule
    B. Summary of Regulatory Provisions
    C. Specific Provisions
    D. Impacted Stakeholders
    E. Use Cases Affected by This Rule
    F. Severability
IV. Discussion of Comments
    A. Waiver Eligibility
    B. Conditions on Federal Agencies Accepting mDLs
    C. Waiver Application Criteria
    D. TSA Waiver Application Guidance
    E. General Concerns About mDLs
    F. Scope of Rulemaking and mDL Acceptance
    G. Privacy
    H. Waiver Validity Period and Renewals
    I. Vendor and Technology ``Lock-in'' Effects
    J. Pseudonymous Validation and On-Device Biometric Matching
    K. Access to Standards
    L. Standards and Standards Development Generally
    M. TSA's Identity Verification Policies
    N. Paperwork Reduction Act
    O. Legal Authority
    P. Economic Impact Analysis
    Q. Communicating Status of Waiver; System Disruptions
    R. Impact of Waiver on States Currently Testing mDLs With TSA
    S. Notice for Changes to State mDL Issuance Processes
    T. Clarification Regarding ``Days''
    U. Audit Requirements
    V. Appendix A to Subpart A: mDL Issuance Requirements
    W. Protection of Sensitive Security Information in Waiver 
Applications
V. Consultation With States and the Department of Transportation
VI. Regulatory Analyses
    A. Economic Impact Analyses
    B. Paperwork Reduction Act
    C. Federalism (E.O. 13132)
    D. Customer Service (E.O. 14058)
    E. Energy Impact Analysis (E.O. 13211)
    F. Environmental Analysis

I. Executive Summary

A. Purpose of This Rulemaking

    This rule is part of an incremental, multi-phased rulemaking that 
will culminate in the promulgation of comprehensive requirements that 
enable States to issue mobile driver's licenses and mobile 
identification cards (collectively ``mDLs'') that comply with the REAL 
ID Act of 2005 (``REAL ID Act'' or ``Act'') and regulations \1\ 
[hereinafter ``REAL ID-Compliant'']. In this first phase, the 
Transportation Security Administration (TSA) is making two changes to 
the current regulations in 6 CFR part 37, ``REAL ID Driver's Licenses 
and Identification Cards.'' First, TSA is adding definitions for, among 
others, mobile driver's licenses and mobile identification cards. These 
definitions provide a precise explanation of those terms as referenced 
in the REAL ID Act, which applies to only State-issued driver's 
licenses and State-issued identification cards.\2\ Any other types of 
identification cards, such

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as those issued by a Federal agency, or commercial, educational, or 
non-profit entity, are beyond the scope of the REAL ID Act and 
regulations, and hence this rulemaking, because they do not meet the 
definition of driver's license or identification card as defined by the 
REAL ID Act. The definition of ``mDL'' as used in this rulemaking is 
limited strictly to the REAL ID Act and regulations and does not 
include ``mDLs'' as defined by other entities.
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    \1\ The REAL ID Act of 2005, Division B Title II of the FY05 
Emergency Supplemental Appropriations Act, as amended, Public Law 
109-13, 119 Stat. 302 (May 11, 2005) (codified at 49 U.S.C. 30301 
note) [hereinafter ``REAL ID Act'']; 6 CFR part 37. Effective May 
22, 2023, authority to administer the REAL ID program was delegated 
from the Secretary of Homeland Security to the Administrator of TSA 
pursuant to DHS Delegation No. 7060.2.1.
    \2\ See sec. 201 of the REAL ID Act (defining a ``driver's 
license'' to include ``driver's licenses stored or accessed via 
electronic means, such as mobile or digital driver's licenses, which 
have been issued in accordance with regulations prescribed by the 
Secretary''; mirroring definition for ``identification card'').
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    Second, TSA is establishing a temporary waiver process that permits 
Federal agencies to accept mDLs for official purposes,\3\ as defined in 
the REAL ID Act and regulations, on an interim basis when full 
enforcement begins on May 7, 2025,\4\ but only if TSA has issued a 
waiver to the State. To qualify for the waiver, this final rule 
requires States to (1) be in full compliance with all applicable REAL 
ID requirements as defined in subpart E of this part, and (2) submit an 
application demonstrating that they meet the requirements specified in 
this rule, which are drawn from 19 industry standards and government 
guidelines. The rulemaking incorporates by reference (IBRs) those 
standards and guidelines, which cover technical areas such as mDL 
communication, digital identity, encryption, cybersecurity, and 
network/information system security and privacy.
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    \3\ The REAL ID Act defines official purposes as including but 
not limited to accessing Federal facilities, boarding Federally 
regulated commercial aircraft, entering nuclear power plants, and 
any other purposes that the Secretary shall determine. See REAL ID 
Act. Notably, because the Secretary has not determined any other 
official purposes, the REAL ID Act and regulations do not apply to 
Federal acceptance of driver's licenses and identification cards for 
other purposes, such as applying for Federal benefits programs, 
submitting immigration documents, or other Federal programs.
    \4\ DHS, Final Rule, Minimum Standards for Driver's Licenses and 
Identification Cards Acceptable by Federal Agencies for Official 
Purposes, 88 FR 14473 (Mar. 9, 2023); DHS Press Release, DHS 
Announces Extension of REAL ID Full Enforcement Deadline (Dec. 5, 
2022), https://www.dhs.gov/news/2022/12/05/dhs-announces-extension-real-id-full-enforcement-deadline (last visited July 17, 2024).
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    As noted above, this final rule is part of an incremental 
rulemaking that temporarily permits Federal agencies to accept mDLs for 
official purposes until TSA issues a subsequent rule that would set 
comprehensive requirements for mDLs. TSA believes it is premature to 
issue such requirements before the May 7, 2025 deadline due to the need 
for emerging industry standards and government guidelines \5\ to be 
finalized.
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    \5\ See TSA, Notice of Proposed Rulemaking, Waiver for Mobile 
Driver's Licenses, 88 FR 60056, 60063-64 (Aug. 30, 2023) 
[hereinafter ``NPRM''].
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    The need for this rulemaking arises from TSA's desire to 
accommodate and foster the rapid pace of mDL innovation, while ensuring 
the intent of the REAL ID Act and regulations are met. Secure driver's 
licenses and identification cards are a vital component of our national 
security framework. In the REAL ID Act, Congress acted to implement the 
9/11 Commission's recommendation that the Federal Government ``set 
standards for the issuance of sources of identification, such as 
driver's licenses.'' Under the REAL ID Act and regulations, a Federal 
agency may not accept for any official purpose a State-issued driver's 
license or identification card, either physical or an mDL, that does 
not meet specified requirements, as detailed in the REAL ID regulations 
(see Part II.A., below, for more discussion on these requirements).
    This final rule will result in the development of mDLs with a 
higher level of security, privacy, and interoperability features 
necessary for Federal acceptance for official purposes. Because the 
current regulatory provisions do not include requirements that would 
enable States to issue REAL ID-compliant mDLs, several States are 
investing significant resources to develop mDLs based on varying and 
often proprietary standards, many of which may lack security and 
privacy safeguards commensurate with REAL ID requirements and the 
privacy needs of users. Without timely regulatory guidance concerning 
potential requirements for developing a REAL ID-compliant mDL, States 
risk investing in mDLs that are not aligned with emerging industry 
standards and government guidelines that may be IBR'd in a future 
rulemaking. States, therefore, may become locked-in to existing 
solutions and could face a substantial burden to redevelop products 
acceptable to Federal agencies under this future rulemaking.
    This final rule addresses these concerns by enabling TSA to grant a 
temporary waiver to States whose mDLs TSA determines provide sufficient 
safeguards for security and privacy, pending finalization of emerging 
standards. Although this rule does not set standards for the issuance 
of REAL ID-compliant mDLs, it does establish minimum requirements that 
States must meet to be granted a waiver so that mDLs can be accepted by 
Federal agencies for official purposes. These minimum standards and 
requirements ensure that States' investments in mDLs provide minimum 
privacy and security safeguards consistent with information currently 
known to the TSA.

B. Summary of the Major Provisions

    As further discussed in Part II.A., below, mDLs cannot be accepted 
by Federal agencies for official purposes when REAL ID full enforcement 
begins on May 7, 2025, unless 6 CFR part 37 is amended to address mDLs. 
This final rule establishes a process for waiving, on a temporary and 
State-by-State basis, the current prohibition on Federal acceptance of 
mDLs for official purposes, and enables Federal agencies to accept mDLs 
on an interim basis while the industry matures to a point sufficient to 
enable TSA to develop more comprehensive mDL regulatory requirements.
    The current regulations prohibit Federal agencies from accepting 
non-compliant driver's licenses and identification cards, including 
both physical cards and mDLs, when REAL ID enforcement begins on May 7, 
2025. Any modification of this regulatory provision must occur through 
rulemaking (or legislation). Until and unless TSA promulgates 
comprehensive mDL regulations that enable States to issue REAL ID-
compliant mDLs, mDLs cannot be developed to comply with REAL ID, and 
Federal agencies therefore cannot accept mDLs for official purposes 
after REAL ID enforcement begins on May 7, 2025. The rule allows the 
Federal government to accept mDLs on an interim basis, but only if TSA 
has issued a waiver to such State based on that State's compliance with 
all applicable REAL ID requirements as defined in subpart E of this 
part, and with the minimum privacy, safety, and interoperability 
requirements in this rulemaking. Please see Part II.A., below, for an 
explanation of the REAL ID requirement that both cards and issuing 
States must be REAL ID compliant.

C. Need for a Multi-Phased Rulemaking

    TSA recognizes both that regulations can influence long-term 
industry research and investment decisions, and that premature 
regulations can distort the choices of technologies, which could harm 
competition and innovation. As noted above, there are clear reasons for 
TSA to issue requirements for mDLs in the context of REAL ID. 
Simultaneously, however, TSA observes that this is a rapidly innovating 
market, with multiple industry and government standards and guidelines 
necessary to ensure mDL privacy and security still in development.\6\ 
Accordingly, TSA has concluded that it is premature to promulgate 
comprehensive requirements for mDLs while key

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standards are being finalized because of the risk of unintended 
consequences, such as chilling innovation and competition in the 
marketplace, and ``locking-in'' stakeholders to certain technologies. 
TSA is therefore establishing a temporary waiver process with clear 
standards and requirements to facilitate the acceptance of mDLs while 
the industry matures and moves to accepted standards.
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    \6\ See NPRM, 88 FR at 60062-66.
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    TSA is proceeding with a multi-phased rulemaking approach. This 
``Phase 1'' rule establishes a temporary waiver process that enables 
continuing Federal acceptance of mDLs for official purposes when REAL 
ID enforcement begins on May 7, 2025, and affords Federal agencies 
additional operational experience and data that would inform 
comprehensive regulations in the upcoming ``Phase 2'' rulemaking. The 
Phase 1 rule is intended to serve as a regulatory bridge until the 
emerging standards are finalized and a comprehensive Phase 2 rulemaking 
is effective.
    TSA anticipates the future Phase 2 rulemaking would repeal the 
temporary waiver provisions established in Phase 1 and establish 
comprehensive requirements enabling States to issue mDLs that comply 
with REAL ID requirements. TSA envisions the Phase 2 rulemaking would 
draw heavily from pertinent parts of the emerging standards (pending 
review of those final, published documents) to set specific 
requirements for security, privacy, and interoperability. In addition, 
the Phase 2 rule would distinguish between existing regulatory 
requirements that apply only to mDLs versus physical cards. As one 
commenter \7\ to a previously-issued Request for Information (RFI) 
urged (discussed in Part II.B., below), DHS is taking ``a slow and 
careful approach'' to regulation in order to fully understand the 
implications of mDLs.
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    \7\ See comment from Electronic Privacy Information Center, 
https://downloads.regulations.gov/DHS-2020-0028-0048/attachment_1.pdf (last visited July 17, 2024); DHS, Request for 
Information, Mobile Driver's Licenses, 86 FR 20320 (Apr. 19, 2021).
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    This multi-phased rulemaking approach supports Executive Order 
(E.O.) 14058 of December 13, 2021 (Transforming Federal Customer 
Experience and Service Delivery to Rebuild Trust in Government), by 
using ``technology to modernize Government and implement services that 
are simple to use, accessible, equitable, protective, transparent, and 
responsive for all people of the United States.'' \8\ As highlighted 
above and discussed in more detail below, allowing acceptance of mDLs 
issued by States that meet the waiver requirements enables the public 
to more immediately realize potential benefits of mDLs, including 
greater convenience, security, and privacy.
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    \8\ See 86 FR 71357 (Dec. 16, 2021).
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D. Costs and Benefits

    TSA estimates the 10-year total cost of the rule to be $829.8 
million undiscounted, $698.1 million discounted at 3 percent ($81.8 
million annualized), and $563.9 million discounted at 7 percent ($80.3 
million annualized). Affected entities include States, TSA, and relying 
parties (Federal agencies that voluntarily choose to accept mDLs for 
official purposes).
    States incur costs to familiarize themselves with the requirements 
of the final rule, purchase access to an industry standard, submit an 
mDL waiver application, submit mDL waiver reapplications, and comply 
with waiver application requirements. TSA estimates that 40 States will 
seek an mDL waiver over the next 10 years at a 10-year State cost of 
$813.1 million undiscounted, $683.7 million discounted at 3 percent, 
and $552.0 million discounted at 7 percent.
    TSA incurs costs associated with purchasing access to industry 
standards, reviewing mDL waiver applications and mDL waiver 
reapplications, acquiring, installing, and operating mDL readers, and 
training transportation security officers. TSA estimates the 10-year 
cost to TSA is $10.13 million undiscounted, $8.87 million discounted at 
3 percent, and $7.56 million discounted at 7 percent.
    Relying parties will incur costs to procure mDL readers should they 
voluntarily choose to accept mDLs for official purposes. TSA estimates 
the 10-year cost to relying parties is $6.57 million undiscounted, 
$5.48 million discounted at 3 percent, and $4.38 million discounted at 
7 percent.
    TSA also identifies other non-quantified costs that affected 
parties may incur. States may incur incremental costs to: monitor and 
study mDL technology as it evolves; resolve underlying issues that 
could lead to a suspension or termination of an mDL waiver; report 
serious threats to security, privacy, or data integrity; report 
material changes to mDL issuance processes; remove conflicts of 
interest with an independent auditor; and request reconsideration of a 
denied mDL waiver application. TSA may incur costs to: investigate 
circumstances that could lead to suspension or termination of a State's 
mDL waiver; provide notice to States, relying parties, and the public 
related to mDL waiver suspensions or terminations; develop an IT 
solution that maintains an up-to-date list of States with valid mDL 
waivers; develop materials related to process changes to adapt to mDL 
systems; and resolve requests for reconsideration of a denied mDL 
waiver application. An mDL user may incur costs with additional 
application requirements to obtain an mDL. States may also pass on mDL 
related costs to the public.\9\ Relying parties may incur costs to 
resolve any security or privacy issue with the mDL reader; report 
serious threats to security, privacy, or data integrity; verify the 
list of States with valid mDL waivers; train personnel to verify mDLs; 
and update the public on identification policies.
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    \9\ TSA does not possess data to quantify how States may 
implement a pass through or recoup costs associated with 
implementation of mDLs.
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    The final rule provides benefits to affected parties which include, 
but are not limited to: promoting higher security, privacy, and 
interoperability safeguards; reducing uncertainty in the mDL technology 
environment by helping to foster a minimum level of security, privacy 
and interoperability; and allowing Federal agencies to continue to 
accept mDLs for official purposes when REAL ID enforcement begins. 
Also, mDLs themselves may provide additional security benefits by 
offering a more secure verification of an individual's identity and 
authentication of an individual's credential compared to usage of 
physical cards.

II. Background

A. REAL ID Act, Regulations, and Applicability to mDLs

    This rulemaking is authorized by the REAL ID Act of 2005 and REAL 
ID Modernization Act. The REAL ID Act authorizes the Secretary of 
Homeland Security, in consultation with the States and the Secretary of 
Transportation, to promulgate regulations to implement the requirements 
under the REAL Act.\10\ The REAL ID Modernization Act amended the 
definitions of ``driver's license'' and ``identification card'' to 
specifically include mDLs that have been issued in accordance with 
regulations prescribed by the Secretary of Homeland Security.\11\
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    \10\ Sec. 205 of the REAL ID Act.
    \11\ Sec. 1001 of the REAL ID Modernization Act, Title X of 
Division U of the Consolidated Appropriations Act, 2021, Public Law 
116-260, 134 Stat. 2304 [hereinafter ``REAL ID Modernization Act''].
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    The REAL ID Act and implementing regulations, 6 CFR part 37, set 
minimum requirements for State-issued driver's licenses and 
identification cards accepted by Federal agencies for official 
purposes, including accessing Federal

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facilities, boarding Federally regulated commercial aircraft, entering 
nuclear power plants, and any other purposes that the Secretary shall 
determine.\12\ The Act defines ``driver's licenses'' and 
``identification cards'' strictly as State-issued documents,\13\ and 
the regulations further refine the definition of ``identification 
card'' as ``a document made or issued by or under the authority of a 
State Department of Motor Vehicles or State office with equivalent 
function.'' \14\ The REAL ID Act and regulations do not apply to 
identification cards that are not made or issued under a State 
authority, such as cards issued by a Federal agency or any commercial, 
educational, or non-profit entity.
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    \12\ REAL ID Act; 6 CFR part 37.
    \13\ Sec. 201 of the REAL ID Act.
    \14\ 6 CFR 37.3.
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    The regulations include a schedule describing when individuals must 
obtain a REAL ID-compliant driver's license or identification card 
intended for use for official purposes, known as ``card-based'' 
enforcement.\15\ Card-based enforcement begins on May 7, 2025.\16\ On 
this date, Federal agencies will be prohibited from accepting a State- 
or territory-issued driver's license or identification card for 
official purposes unless the card is compliant with the REAL ID Act and 
regulations.\17\
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    \15\ See 6 CFR 37.5(b). The regulations also include a schedule 
for State-based compliance, known as ``State-based enforcement.'' 
See 6 CFR 37.51(a).
    \16\ See 6 CFR 37.5(b).
    \17\ See 6 CFR 37.5(b). Additionally, TSA is conducting a 
separate rulemaking that would allow Federal agencies to implement 
the card-based enforcement provisions of the REAL ID regulations 
under a phased approach beginning on the May 7, 2025 enforcement 
deadline. See NPRM, Phased Approach for Card-Based Enforcement, 89 
FR 74137 (Sept. 12, 2024).
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    On December 21, 2020, Congress passed the REAL ID Modernization 
Act,\18\ which amended the REAL ID Act to update the definitions of 
``driver's license'' and ``identification card'' to specifically 
include mDLs that have been issued in accordance with regulations 
prescribed by the Secretary, among other updates.\19\ Accordingly, mDLs 
must be REAL ID-compliant to be accepted by Federal agencies for 
official purposes when card-based enforcement begins on May 7, 2025. 
However, States cannot issue REAL ID-compliant mDLs until the 
regulations are updated to include requirements to ensure that mDLs 
meet equivalent levels of security currently imposed on REAL ID-
compliant physical cards.
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    \18\ REAL ID Modernization Act, 134 Stat. 2304.
    \19\ Sec. 1001 of the REAL ID Modernization Act, 134 Stat. 2304.
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B. Rulemaking History

    In April 2021, DHS issued an RFI announcing DHS's intent to 
commence future rulemaking to set the minimum technical requirements 
and security standards for mDLs to enable Federal agencies to accept 
mDLs for official purposes. The RFI requested comments and information 
to inform DHS's rulemaking.\20\ In response, DHS received 63 comments 
\21\ through a twice-extended comment period of 180 days, which closed 
on October 18, 2021.
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    \20\ 86 FR 20320 (Apr. 19, 2021).
    \21\ The 63 total comments included three duplicates and one 
confidential submission.
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    In August 2023, TSA published a Notice of Proposed Rulemaking 
(NPRM) \22\ drawing on comments to the RFI, which are summarized at 88 
FR 60056, 60071-72. The NPRM comment period closed on October 16, 2023, 
and TSA received 31 comments. NPRM comments are discussed in detail in 
Part IV, below.
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    \22\ 88 FR 60056.
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C. mDL Overview

1. mDLs Generally
    An mDL is generally recognized as the digital representation of an 
individual's identity information contained on a State-issued physical 
driver's license or identification card.\23\ An mDL may be stored on a 
diverse range of portable or mobile electronic devices, such as 
smartphones, smartwatches, and storage devices containing memory. Like 
a physical card, mDL data originates from identity information about an 
individual that is maintained in the database of a State driver's 
licensing agency. An mDL has potential benefits for all stakeholders. 
For Federal agencies, mDLs may provide security and efficiency 
enhancements compared to physical cards, because mDLs rely on digital 
security features that are immune to many vulnerabilities of physical 
security features. For individuals, mDLs may provide a more secure, 
convenient, privacy-enhancing, and ``touchless'' method of identity 
verification compared to physical IDs.
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    \23\ A technical description of mDLs as envisioned by the 
American Association of Motor Vehicle Administrators may be found at 
https://www.aamva.org/Mobile-Drivers-License/ (last visited July 17, 
2024).
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    Unlike physical cards that employ physical security features to 
deter fraud and tampering, mDLs combat fraud through the use of digital 
security features that are not recognizable through human inspection, 
such as asymmetric cryptography/public key infrastructure (PKI). As 
discussed in the NPRM,\24\ asymmetric cryptography generates a pair of 
encryption ``keys'' to encrypt and decrypt protected data. One key, a 
``public key,'' is distributed publicly, while the other key, a 
``private key,'' is held by the State driver's licensing agency (e.g., 
a Department of Motor Vehicles). When the driver's licensing agency 
issues an mDL to an individual, the agency uses its private key to 
digitally ``sign'' the mDL data. A Federal agency accepting an mDL 
validates the integrity of the mDL data by obtaining the State driver's 
licensing agency's public key to verify the digital signature. Private 
keys and digital signatures are elements of data encryption that 
protect against unauthorized access, tampering, and fraud. Generally, 
mDL-based identity verification under REAL ID involves a triad of 
secure communications between a State driver's licensing agency, an mDL 
holder, and a Federal agency. Standardized communication interfaces are 
necessary to enable Federal agencies to exchange information with all 
U.S. States and territories that issue mDLs. Please see the NPRM for a 
more detailed discussion.\25\
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    \24\ 88 FR at 60060.
    \25\ 88 FR at 60060-61.
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    In contrast to physical driver's licenses that are read and 
verified visually through human inspection of physical security 
features, an mDL is read and verified electronically using a device 
known simply as a ``reader. Any Federal agency that accepts mDLs for 
official purposes must use readers to validate an mDL holder's identity 
data from their mobile device and establish trust that the mDL is 
secure by using private-public key data encryption.\26\ An mDL reader 
compliant with this requirement can take multiple forms, such as an app 
installed on a mobile device, or a dedicated device. Although reader 
development is evolving, some companies already offer reader apps for 
free, and TSA therefore expects readers will be offered in a wide range 
capabilities and associated price points.\27\
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    \26\ Non-Federal agencies and other entities who choose to 
accept mDLs for uses beyond the scope of REAL ID should also 
recognize the need for a reader to ensure the validity of the mDL. 
Any verifying entity can validate in the same manner as a Federal 
agency if they implement the standardized communication interface 
requirements specified in this final rule, which would require 
investment to develop the necessary IT infrastructure and related 
processes.
    \27\ Readers for mDLs have specific requirements and at this 
time are not interchangeable with readers for other types of Federal 
cards, such as the Transportation Worker Identification Credential 
(TWIC). Although TSA is evaluating some mDLs at select airport 
security checkpoints, cost estimates for readers used in the 
evaluations are not available because those readers are non-
commercially available prototypes designed specifically for 
integration into TSA-specific IT infrastructure that few, if any, 
other Federal agencies use. In addition, mDL readers are evolving 
and entities who accept mDLs would participate voluntarily. 
Accordingly, associated reader costs are not quantified at this time 
but TSA intends to gain a greater understanding of any costs to 
procure reader equipment as the technology continues to evolve.

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[[Page 85344]]

2. State mDL Issuance and TSA Testing
    As noted above, mDL issuance is proliferating rapidly among States, 
with at least half of all States believed to be preparing for or 
issuing mDLs.\28\ Although detailed mDL adoption statistics are 
unavailable, anecdotal information and media reports indicates that 
mDLs are rapidly gaining public acceptance. For example, Maryland 
commented that it has issued more than 200,000 mDLs to residents 
following a pilot in 2017 and more recent expansion in 2022 and 
2023.\29\ Iowa commented that in the 3 months since it began offering 
its mDL app, it has been downloaded by more than 7,000 users.\30\
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    \28\ See, e.g., AAMVA, Driver and Vehicle Services Data Map, 
https://www.aamva.org/jurisdiction-data-maps#anchorformdlmap (last 
visited July 17, 2024); PYMNTS, States Embrace Mobile Driver's 
Licenses to Fight Fraud Amid Privacy Scrutiny (Apr. 9, 2024), 
https://www.pymnts.com/identity/2024/states-embrace-mobile-drivers-licenses-to-fight-fraud-amid-privacy-scrutiny/ (last visited July 
17, 2024); Government Technology, Digital IDs Are Here, but Where 
Are They Used and Accepted? (Mar. 12, 2024), https://www.govtech.com/biz/data/digital-ids-are-here-but-where-are-they-used-and-accepted (last visited July 17, 2024).
    \29\ Comment by Maryland MVA, https://www.regulations.gov/comment/TSA-2023-0002-0032 (last visited July 17, 2024).
    \30\ Comment by Iowa Department of Transportation, https://www.regulations.gov/comment/TSA-2023-0002-0023 (last visited July 
17, 2024).
---------------------------------------------------------------------------

    TSA understands that States are issuing mDLs using widely varying 
technology solutions, raising concerns whether such technological 
diversity provides the safeguards and interoperability necessary for 
Federal acceptance. Since 2022, TSA has been collaborating with States 
and industry to test the use of mDLs issued by participating States at 
select TSA airport security checkpoints.\31\ As of the date of this 
final rule, TSA is currently testing mDLs issued by 11 States (Arizona, 
California, Colorado, Georgia, Hawaii, Iowa, Louisiana, Maryland, New 
York, Ohio, Utah) at 27 airports.\32\
---------------------------------------------------------------------------

    \31\ See NPRM, 88 FR at 60066-67.
    \32\ See TSA, Facial Recognition and Digital Identity Solutions, 
https://www.tsa.gov/digital-id (last visited Aug. 9, 2024).
---------------------------------------------------------------------------

D. Industry Standards and Government Guidelines for mDLs

    The nascence of mDLs and absence of standardized mDL-specific 
requirements provide an opportunity for industry and government to 
develop standards and guidelines to close this void. TSA is aware of 
multiple such documents, published and under development, from both 
Federal and non-government sources. As discussed in Part III.C.8, 
below, this final rule amends Sec.  37.4 by IBR'g into part 37 19 
standards and guidelines that form the basis of many of the 
requirements in this final rule. TSA understands that these standards 
and guidelines discussed are the most comprehensive and relevant 
references governing mDLs today. TSA also acknowledges that many 
additional standards and guidelines are in development and may provide 
additional standardized mechanisms for mDLs.\33\
---------------------------------------------------------------------------

    \33\ See NPRM, 88 FR at 60063-66, for a discussion of these 
standards.
---------------------------------------------------------------------------

III. General Discussion of the Rulemaking

A. Changes Between NPRM and Final Rule

    After carefully considering all comments received to the NPRM (see 
detailed discussion of comments and TSA's responses in Part IV, below), 
TSA finalizes the NPRM with several revisions in response to public 
comments. Table 1 summarizes the changes made in the final rule 
compared to the NPRM.

     Table 1--Summary of Changes Between the NPRM and the Final Rule
------------------------------------------------------------------------
                                                       Reason for the
           Section                 Final rule              change
------------------------------------------------------------------------
37.3........................  Adds definition for   Technical change to
                               ``Provisioning.''.    add definition of a
                                                     key term to improve
                                                     clarity.
37.4........................  Revises points of     Technical changes to
                               contact for the       improve access to
                               public to contact     IBR materials.
                               TSA; provides
                               additional means to
                               access certain
                               standards that are
                               IBR'd in this rule.
37.4(c)(1)..................  Corrects title of     Technical
                               ``Cybersecurity       correction.
                               Incident &
                               Vulnerability
                               Response
                               Playbooks'' to
                               ``Federal
                               Government
                               Cybersecurity
                               Incident &
                               Vulnerability
                               Response
                               Playbooks.''.
37.4(g)(4)..................  Updates standard      Technical change to
                               NIST FIPS PUB 197     reflect revisions
                               to NIST FIPS PUB      to standard to
                               197-upd1 to reflect   improve public
                               revised version of    access. Revisions
                               standard.             include editorial
                                                     improvements, but
                                                     no technical
                                                     changes to the
                                                     algorithm specified
                                                     in the earlier
                                                     version.
37.4(g)(7)..................  Corrects website      Technical change to
                               address to the        correct a typo.
                               cited standard.
37.7(a).....................  Clarifies conditions  Clarification
                               under which TSA       regarding impact of
                               will issue a waiver.  the waiver.
37.7(b)(3)..................  Deleted.............  Deleted proposed
                                                     language that would
                                                     have made a State
                                                     ineligible to apply
                                                     for a waiver if the
                                                     State issues mDLs
                                                     to individuals with
                                                     non-REAL ID
                                                     compliant physical
                                                     cards (in addition
                                                     to issuing mDLs to
                                                     other individuals
                                                     that have compliant
                                                     physical cards).
37.8(c).....................  Adds paragraph (c)    Clarifies that when
                               to require Federal    REAL ID enforcement
                               agencies accepting    begins, Federal
                               mDLs to confirm,      agencies may accept
                               consistent with the   mDLs from States
                               deadlines set forth   only if the
                               in Sec.   37.5,       underlying physical
                               that the mDL data     card is REAL ID
                               element               compliant.
                               ``DHS_compliance''
                               is encoded ``F,''
                               as required by Sec.
                                Sec.
                               37.10(a)(4)(ii) &
                               (a)(1)(vii).
37.8(d).....................  Renumbers Sec.        Technical changes
                               37.8(c), as           renumber provision
                               proposed in the       from 37.8(c) to
                               NPRM, to Sec.         37.8(d), update
                               37.8(d) in light of   agency name and
                               addition of new       website address,
                               Sec.   37.8(c).       and clarify the
                              Corrects website       mechanics of
                               address from          reporting.
                               dhs.gov to tsa.gov.  Provides that
                              Adds requirement       reports may contain
                               regarding             sensitive security
                               protection of SSI.    information (SSI)
                                                     \34\ and if so,
                                                     would be subject to
                                                     requirements of 49
                                                     CFR part 1520.

[[Page 85345]]

 
37.9(a).....................  Corrects agency name  Technical changes
                               from DHS to TSA.      update agency name
                              Corrects website       and website
                               address from          address.
                               dhs.gov to tsa.gov.
37.9(b).....................  Revises ``days'' to   Clarifies that
                               ``calendar days.''.   ``days'' means
                              Corrects website       calendar days, not
                               address from          business days.
                               dhs.gov to tsa.gov.  Technical change
                                                     updates agency
                                                     website address.
37.9(c).....................  Revises ``days'' to   Clarifies that
                               ``calendar days.''.   ``days'' means
                              Corrects website       calendar days, not
                               address from          business days.
                               dhs.gov to tsa.gov.  Technical change
                                                     updates agency
                                                     website address.
37.9(e)(2)..................  Revises ``days'' to   Clarifies that
                               ``calendar days.''.   ``days'' means
                              Corrects website       calendar days, not
                               address from          business days.
                               dhs.gov to tsa.gov.  Technical change
                              Provides a means for   updates agency
                               States to contact     website address.
                               TSA if the State is  Provides a means for
                               unclear whether       States to resolve
                               certain               potential questions
                               modifications to      regarding reporting
                               its mDL issuance      requirements.
                               processes require
                               reporting.
37.9(e)(4)(ii)..............  Revises ``days'' to   Clarifies that
                               ``calendar days.''.   ``days'' means
                                                     calendar days, not
                                                     business days.
37.9(e)(5)(i)...............  Corrects agency name  Technical change
                               from DHS to TSA.      updates agency
                                                     name.
37.9(e)(5)(ii)..............  Revises ``days'' to   Clarifies that
                               ``calendar days.''.   ``days'' means
                                                     calendar days, not
                                                     business days.
37.9(g).....................  Adds new paragraph    SSI protection.
                               (g), which provides
                               that information
                               submitted in
                               response to
                               requirements to
                               apply for and
                               maintain a waiver
                               may contain SSI,
                               and if so, would be
                               subject to
                               requirements of 49
                               CFR part 1520.
37.10(a)(1)(vii)............  Replaces NPRM         Proposed language
                               requirement that      would have required
                               States must issue     States to issue
                               mDLs only to          mDLs only to
                               residents who have    individuals to whom
                               been issued           that State
                               physical cards that   previously issued a
                               are valid,            physical card that
                               unexpired, and REAL   is valid,
                               ID-compliant with     unexpired, and REAL
                               requirement that      ID-compliant. This
                               States must           would have denied
                               populate the          States the
                               ``DHS_compliance''    discretion to issue
                               data field to         mDLs to holders of
                               correspond to the     non-compliant
                               REAL ID-compliance    physical cards.
                               status of the        Revisions require
                               underlying physical   States to issue
                               driver's license or   mDLs in a manner
                               identification        that reflects the
                               card, or as           REAL ID compliance
                               required by the       status of the
                               AAMVA Guidelines.     underlying physical
                                                     card. This is
                                                     consistent with the
                                                     intent of the NPRM,
                                                     which was to enable
                                                     Federal agencies to
                                                     determine the REAL
                                                     ID-compliance
                                                     status of the
                                                     underlying physical
                                                     card, and accept
                                                     only compliant
                                                     cards when
                                                     enforcement begins.
37.10(a)(4).................  Corrects version      Technical change
                               number of AAMVA       corrects version
                               Mobile Driver's       number of AAMVA
                               License (mDL)         Guidelines.
                               Implementation       Changes reflect
                               Guidelines (Jan.      current version of
                               2023).                NIST FIPS PUB 197
                              Updates NIST FIPS      to ensure
                               PUB 197 to NIST       continuing public
                               FIPS PUB 197-upd1     access. Revisions
                               to reflect revised    to the standard
                               version of standard.  include editorial
                                                     improvements, but
                                                     no technical
                                                     changes to the
                                                     algorithm specified
                                                     in the earlier
                                                     version.
37.10(b)(1).................  Clarifies that        Provides States
                               ``independent         additional options
                               entity'' includes     to select auditors.
                               State employees or    Reduces burdens
                               contractors that      without impact on
                               are independent of    security or
                               the State's           privacy.
                               driver's licensing
                               agency.
37.10(c)....................  Corrects website      Technical changes
                               address from          update agency
                               dhs.gov to tsa.gov.   website address,
                              Clarifies that TSA     and clarify means
                               will publish in the   of notifying and
                               Federal Register a    publishing updates
                               notice advising of    to TSA mDL Waiver
                               the availability of   Application
                               updated TSA mDL       Guidance.
                               Waiver Application
                               Guidance, which
                               itself will be
                               published at
                               www.tsa.gov/mDL/.
Appendix A, Throughout......  Corrections to        Technical
                               titles of:            corrections.
                              CISA Federal
                               Government
                               Cybersecurity
                               Incident &
                               Vulnerability
                               Response Playbooks.
                              DHS National Cyber
                               Incident Response
                               Plan.
                              NIST FIPS PUB 140-3.
                              NIST Framework for
                               Improving Critical
                               Infrastructure
                               Cybersecurity.
Appendix A, paragraph 1.1...  Adds section numbers  Technical changes
                               to certain            clarify which parts
                               references.           of cited reference
                              Deletes requirement    require compliance,
                               to comply with NIST   and remove an
                               SP 800-53B.           unnecessary
                                                     requirement.
Appendix A, paragraph 2.2...  Revises ``privileged  Technical change
                               account or            corrects
                               service'' in NPRM     terminology.
                               to ``trusted
                               role.''.
Appendix A, paragraph 2.13..  Adds section numbers  Technical change
                               to a certain          clarifies which
                               reference.            parts of cited
                                                     reference require
                                                     compliance.
Appendix A, paragraph 5.13..  Reduces requirements  Provides States
                               for minimum number    greater freedom to
                               of personnel to       select products.
                               generate issuing      Does not impact
                               authority             security, privacy,
                               certificate           or
                               authority (IACA)      interoperability.
                               root certificate
                               keys from a minimum
                               of three to two
                               persons, consisting
                               of at least one
                               ceremony
                               administrator and
                               one qualified
                               witness.

[[Page 85346]]

 
Appendix A, paragraph 5.14..  Modifies              Provides States
                               requirements for      greater freedom to
                               minimum number of     select products.
                               personnel to          Does not impact
                               generate document     security, privacy,
                               signer keys. Final    or
                               rule requires         interoperability.
                               either at least one
                               administrator and
                               one qualified
                               witness (other than
                               a person involved
                               in key generation),
                               or at least 2
                               administrators
                               using split
                               knowledge processes.
Appendix A, paragraph 6.3...  Revises ``days'' to   Clarifies that
                               ``calendar days.      ``days'' means
                                                     calendar days, not
                                                     business days.
Appendix A, paragraph 8.6...  Modifies cyber        Clarifies types of
                               incident reporting    incidents that must
                               requirements to       be reported,
                               incidents as          updates agency
                               defined in the TSA    website address,
                               Cybersecurity         and adds SSI
                               Lexicon available     protection.
                               at www.tsa.gov that
                               may harm state
                               certificate systems.
                              Corrects website
                               address from
                               dhs.gov to tsa.gov.
                              Adds SSI protection
                               requirements.
------------------------------------------------------------------------

B. Summary of Regulatory Provisions
---------------------------------------------------------------------------

    \34\ 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.
---------------------------------------------------------------------------

    In addition to revising definitions applicable to the REAL ID Act 
to incorporate mDLs, this rule amends 6 CFR part 37 to enable TSA to 
grant a temporary waiver to States that TSA determines issue mDLs 
consistent with specified requirements concerning security, privacy, 
and interoperability. This rule enables Federal agencies, at their 
discretion, to accept for REAL ID official purposes, mDLs issued by a 
State that has been granted a waiver, provided that the underlying 
physical card upon which the mDL was based is REAL ID-compliant. The 
rule applies only to Federal agency acceptance of State-issued mDLs as 
defined in this final rule for REAL ID official purposes, but not other 
forms of digital identification, physical driver's licenses or physical 
identification cards, or non-REAL ID purposes. Any temporary waiver 
issued by TSA would be valid for a period of 3 years from the date of 
issuance.
    To obtain a waiver, Sec.  37.9(a) requires a State to submit an 
application, supporting data, and other documentation to establish that 
their mDLs meet the criteria specified in Sec. Sec.  37.10(a) and (b) 
(discussed in Part III.C.4., below) concerning security, privacy, and 
interoperability. If TSA determines, upon evaluation of a State's 
application and supporting documents, that a State's mDL could be 
securely accepted under the terms of a waiver, TSA may issue such State 
a certificate of waiver. TSA intends to work with each State applying 
for a waiver on a case-by-case basis to ensure that its mDLs meet the 
minimum requirements necessary to obtain a waiver. This rulemaking 
establishes the full process for a State to apply for and maintain a 
waiver, including: instructions for submitting the application and 
responding to subsequent communications from TSA as necessary; specific 
information and documents that a State must provide with its 
application; requirements concerning timing, issuance of decisions, 
requests for reconsideration; and post-issuance reporting requirements 
and other terms, conditions, and limitations. To assist States that are 
considering applying for a waiver, TSA has developed guidelines, 
entitled, ``Mobile Driver's License Waiver Application Guidance'' 
(hereinafter ``TSA Waiver Guidance'' or ``the Guidance''), which 
provides non-binding recommendations of some ways that States can meet 
the application requirements set forth in this rulemaking.\35\ This 
final rule makes several technical and administrative changes to the 
NPRM, as set forth in Table 1, above. These changes are as follows:
---------------------------------------------------------------------------

    \35\ The specific measures and practices discussed in the TSA 
Waiver Application Guidance are neither mandatory nor necessarily 
the ``preferred solution'' for complying with the requirements in 
this final rule. Rather, they are examples of measures and practices 
that a State issuer of mDLs may choose to consider as part of its 
overall strategy to issue mDLs. States have the ability to choose 
and implement other measures to meet these requirements based on 
factors appropriate to that State, so long as DHS determines that 
the measures implemented provide the levels of security and data 
integrity necessary for Federal acceptance of mDLs for official 
purposes as defined in the REAL ID Act and 6 CFR part 37. As 
provided in Sec.  37.10(c), TSA may periodically update the Guidance 
as necessary to recommend mitigations of evolving threats to 
security, privacy, or data integrity.
---------------------------------------------------------------------------

     Corrections to agency name, website address, points of 
contact for access and compliance with reporting requirements: See 
Sec. Sec.  37.4, 37.8(d), 37.9(a)-(c), (e)(2) & (e)(5)(i), 37.10(c), 
and Appendix A, paragraph 8.6.
     Corrections to inadvertent omissions, typographical 
errors, paragraph numbering, title/version number of publications: See 
Sec. Sec.  37.3, 37.4, 37.4(c)(1), 37.8(d), 37.4(g)(4) & (7), 
37.10(a)(4), Appendix A, paragraphs 1.1, 2.13, 2.2, 8.4, 8.5, 8.8.
     Clarifying that ``days'' means ``calendar days'': See 
Sec. Sec.  37.9(b), 37.9(c), 37.9(e)(2), (4)(i) & (5)(ii), and Appendix 
A, paragraph 6.3.

C. Specific Provisions

    This section describes the final regulatory provisions in this 
rule, including the changes discussed above. Unless otherwise noted, 
these provisions were described in the NPRM.
1. Definitions
    The final rule adds new definitions to subpart A, Sec.  37.3, 
consistent with those proposed in the NPRM. In particular, new 
definitions for ``mobile driver's license'' and ``mobile identification 
card'' are necessary because the current regulations predated the 
emergence of mDL technology and, therefore, do not define these terms. 
Additionally, the definitions reflect changes made by the REAL ID 
Modernization Act, which amended the definitions of ``driver's 
license'' and ``identification card'' to specifically include ``mobile 
or digital driver's licenses'' and ``mobile or digital identification 
cards.'' The definitions in this rule provide a more precise definition 
of ``mobile driver's license'' and ``mobile identification card'' by 
clarifying that those forms of identification require a mobile 
electronic device to store the identification information, as well as 
an electronic device to read that information. The rule also adds a new 
definition of ``mDL'' that collectively refers to mobile versions of 
both State-issued driver's licenses and State-issued identification 
cards as defined in the REAL ID Act.

[[Page 85347]]

    The final rule includes additional definitions to explain terms 
used in the waiver application criteria set forth in Sec. Sec.  
37.10(a)-(b) and Appendix A to subpart A of this part (Appendix A). 
Generally, this rule defines terms that lack a common understanding or 
that are common terms of art for information systems, and that require 
an explanation to enable stakeholders to comply with the rule. The 
definitions were informed by TSA's knowledge and experience, as well as 
a publication by the National Institute of Standards and Technology 
(NIST).\36\ For example, the rule adds definitions for ``digital 
certificates'' and ``certificate systems,'' which are necessary 
elements of risk controls for the IT systems that States use to issue 
mDLs. In addition, this final rule adds a definition for ``certificate 
policy,'' which forms the governance framework for States' certificate 
systems. A State must develop, maintain, and execute a certificate 
policy to comply with the requirements set forth in Appendix A. In 
addition, ``Digital Signatures'' are mathematical algorithms that 
States use to validate the authenticity and integrity of a message. 
Each of these terms is fundamental to understanding the requirements 
set forth in this rule.
---------------------------------------------------------------------------

    \36\ See NIST, Computer Security Resource Center, https://csrc.nist.gov/glossary (last visited July 17, 2024).
---------------------------------------------------------------------------

    The final rule adds a definition for ``provisioning'' which was not 
proposed in the NPRM. See Sec.  37.3. As defined by this final rule, 
``provisioning'' means the process by which a State transmits and 
installs an mDL on an individual's mobile device. Although TSA did not 
receive any comments seeking clarity or requesting the addition of this 
or other definitions, TSA believes provisioning is a critical concept 
that requires a definition in order to facilitate stakeholder 
compliance.
2. TSA Issuance of Temporary Waiver and State Eligibility Criteria
    The final rule adds to subpart A new Sec.  37.7, entitled 
``Temporary waiver for mDLs; State eligibility.'' This waiver framework 
temporarily allows Federal agencies to accept for official purposes 
mDLs (which today are all non-compliant) issued by States with a 
waiver, if the mDL is based on a REAL ID-compliant physical card, when 
REAL ID enforcement begins on May 7, 2025 (see Sec.  37.8, discussed in 
Part III.C.3., below). However, the waiver framework does not apply to 
any other requirements in 6 CFR part 37 or physical cards. Section 
37.7(a) authorizes TSA to issue a temporary certificate of waiver to 
States that meet the waiver application criteria set forth in 
Sec. Sec.  37.10(a) and (b). TSA's determination of whether a State 
satisfies these requirements will be based on TSA's evaluation of the 
information provided by the State in its application (see Part 
III.C.4., below), as well as other information available to TSA. 
Federal agencies are not required to accept mDLs, and retain discretion 
to determine their own policies regarding identity verification.
    Although NPRM Sec.  37.7(a) stated that a waiver would exempt a 
State's mDLs from meeting the card-based compliance requirement of 
Sec.  37.5(b), the final rule deletes this clause because a waiver 
impacts Federal agency acceptance, not State issuance, of non-compliant 
mDLs. Stated differently, a waiver allows Federal agencies to accept 
non-compliant mDLs issued by States to whom TSA has granted a waiver. 
As discussed above in this preamble, the waiver application criteria 
set forth temporary security requirements commensurate with REAL ID 
standards for physical cards, ensuring that mDLs meeting the criteria 
are suitable for Federal acceptance. However, States cannot issue REAL 
ID-compliant mDLs until TSA sets forth such requirements in the 
subsequent Phase 2 rulemaking.
    Section 37.7(b) sets forth criteria that a State must meet to be 
eligible for consideration of a waiver. These criteria require that the 
issuing State: (1) is in full compliance with all applicable REAL ID 
requirements as defined in subpart E of this part, and (2) has 
submitted an application, under Sec. Sec.  37.10(a) and (b) 
demonstrating that the State issues mDLs that provide security, 
privacy, and interoperability necessary for Federal acceptance.\37\ The 
NPRM proposed paragraph (b)(3) of this section, which provided an 
additional waiver eligibility criterion that a State must issue mDLs 
only to individuals who have been issued REAL ID-compliant physical 
cards. However, the final rule does not adopt this proposal given TSA's 
evaluation of public comments (see Part IV.A.) that this provision 
would have made a State ineligible for a waiver if the State issued 
mDLs to both individuals with REAL ID-compliant physical cards and 
individuals with non-compliant physical cards. The final rule similarly 
amends Sec.  37.10(a)(1)(vii), as proposed by the NPRM, to remove a 
provision that would have required States to issue an mDL only to a 
resident who has been issued a valid, unexpired, and REAL ID-compliant 
physical card that underlies the mDL. See Part III.C.4, below.
---------------------------------------------------------------------------

    \37\ Sections 37.7(b)(1) & (2).
---------------------------------------------------------------------------

3. Requirements for Federal Agencies that Accept mDLs
    The final rule adds to subpart A new Sec.  37.8, entitled 
``Requirements for Federal agencies accepting mDLs issued by States 
with temporary waiver.'' This section requires that any Federal agency 
that elects to accept mDLs for REAL ID official purposes must meet four 
requirements in new Sec.  37.8. First, under Sec.  37.8(a), a Federal 
agency must confirm that the State holds a valid certificate of waiver. 
Agencies would make this confirmation by verifying that the State's 
name appears in a list of States to whom TSA has granted a waiver. TSA 
will publish this list on the REAL ID website at www.tsa.gov/real-id/mDL (as provided in Sec.  37.9(b)(1)).
    Second, Sec.  37.8(b) requires Federal agencies to use an mDL 
reader to retrieve mDL data from an individual's mobile device and 
validate that the data is authentic and unchanged following the 
processes required by industry standard ISO/IEC 18013-5:2021(E).\38\
---------------------------------------------------------------------------

    \38\ See NPRM, 88 FR at 60063-64, for a discussion of this 
standard.
---------------------------------------------------------------------------

    Third, under Sec.  37.8(c), Federal agencies may accept, consistent 
with the deadlines set forth in Sec.  37.5, only those mDLs that are 
issued based on an underlying physical card that is REAL ID compliant. 
Agencies would make this determination by confirming that mDL data 
element ``DHS_compliance'' has a value of ``F''. As discussed in Part 
III.C.8.a., below, the data field ``DHS_compliance'' (defined in the 
American Association of Motor Vehicle Administrators Mobile Driver's 
License (mDL) Implementation Guidelines Version 1.2 (Jan. 2023) (AAMVA 
Guidelines)) enables an mDL to convey the REAL ID compliance status of 
the underlying physical card. TSA notes that Sec.  37.8(c) is a new 
provision that was not included in the NPRM. TSA intended, in proposed 
Sec. Sec.  37.7(b)(3) and 37.10(a)(1)(vii) of the NPRM, that Federal 
agencies would accept only mDLs issued by States to whom TSA has issued 
a waiver, and that are based on an underlying physical card that is 
REAL ID-compliant. Final rule Sec.  37.8(c), together with revisions to 
Sec.  37.10(a)(1)(vii) (see discussion in Part III.C.4., below), 
achieves that intent.
    Finally, under Sec.  37.8(d), if a Federal agency discovers that 
acceptance of a State's mDL is likely to cause imminent or serious 
threats to security, privacy, or data integrity, the agency must report 
the threats to TSA at www.tsa.gov/real-id/mDL within 72 hours of such

[[Page 85348]]

discovery. Examples of reportable threats include cyber incidents and 
other events that cause serious harm to a State's mDL issuance system. 
Reports may contain SSI, and if so, would be subject to requirements of 
49 CFR part 1520. Although the NPRM did not propose the SSI protection 
provision, TSA evaluated comments to the NPRM (see Part IV.W., below) 
seeking clarification on SSI protection for other information (State 
waiver applications) and determined that SSI protection is warranted 
for Federal agency reports under this Sec.  37.8(d), which has been 
added in this final rule. TSA will consider whether such information 
warrants suspension of that State's waiver under Sec.  37.9(e)(4)(i)(B) 
(see discussion in Part III.C.6., below). If TSA elects not to issue a 
suspension, Federal agencies would continue to exercise their own 
discretion regarding continuing acceptance of mDLs.
4. Requirements for States Seeking To Apply for a Waiver
    The final rule adds to subpart A new Sec.  37.9, which sets forth a 
process for a State to request a temporary certificate of waiver 
established in new Sec.  37.7. As provided in Sec.  37.9(a), a State 
seeking a waiver must file a complete application as set forth in 
Sec. Sec.  37.10(a) and (b), following instructions available at 
www.tsa.gov/real-id/mDL. Sections 37.10(a) and (b) set forth all 
information, documents, and data that a State must include in its 
application for a waiver. If TSA determines that the means that a State 
implements to comply with the requirements in Sec. Sec.  37.10(a) and 
(b) provide the requisite levels of security, privacy, and data 
integrity for Federal acceptance of mDLs for official purposes, TSA 
would grant such State a waiver. This rule does not, however, prescribe 
specific means (other than the requirements specified in Appendix A, 
which is discussed further in Part III.C.4.iv, below) that a State must 
implement. Instead, States would retain broad discretion to choose and 
implement measures to meet these requirements based on factors 
appropriate to that State.
(i) Application Requirements
    As set forth in Sec. Sec.  37.10(a)(1) through (4), a State is 
required to establish in its application how it issues mDLs under the 
specified criteria for security, privacy, and interoperability suitable 
for acceptance by Federal agencies, as follows:
     Paragraph (a)(1) sets forth requirements for mDL 
provisioning. Specific requirements include:
    [cir] Encryption of mDL data and an mDL holder's Personally 
Identifiable Information,
    [cir] Escalated review of repeated failed provisioning attempts,
    [cir] Authentication of the mDL applicant's mobile device,
    [cir] Mobile device identification keys,
    [cir] User identity verification controls,
    [cir] Applicant presentation controls,
    [cir] Encoding of the ``DHS_compliance'' data field. States must 
populate this data field to correspond to the REAL ID compliance status 
of the underlying physical driver's license or identification card that 
a State has issued to an mDL holder. Specifically, ``DHS_compliance'' 
should be populated with ``F'' if the underlying card is REAL ID 
compliant, or as required by American Association of Motor Vehicle 
Administrator (AAMVA) Mobile Driver's License (mDL) Implementation 
Guidelines v. 1.2, Section 3.2 (IBR'd; see Sec.  37.4), or ``N'' if the 
underlying card is not REAL ID-compliant. Although Sec.  
37.10(a)(1)(vii) of the NPRM proposed requiring that States issue an 
mDL only to a resident who has been issued a valid, unexpired, and REAL 
ID-compliant physical card that underlies the mDL, the final rule does 
not adopt this provision, based on TSA's evaluation of public comments 
(see Part IV.A.), that this provision would have made a State 
ineligible to apply for a waiver if the State issued mDLs to both 
individuals with REAL ID-compliant physical cards and individuals with 
non-compliant physical cards,
    [cir] Data record requirements, and
    [cir] Records retention specifications.
     Paragraph (a)(2) specifies requirements for managing state 
certificate systems, which are set forth in Appendix A.
     Paragraph (a)(3) requires a State to demonstrate how it 
protects personally identifiable information of individuals during the 
mDL provisioning process.
     Paragraph (a)(4) requires a State to explain the means it 
uses to:
    [cir] Issue mDLs that are interoperable with requirements set forth 
in standard ISO/IEC 18013-5:2021(E),
    [cir] Comply with the ``AAMVA mDL data element set'' as defined in 
the AAMVA Guidelines v. 1.2, Section 3.2,\39\ and
---------------------------------------------------------------------------

    \39\ See NPRM, 88 FR at 60062-65, for a discussion of these 
standards.
---------------------------------------------------------------------------

    [cir] Use only those algorithms for encryption,\40\ secure hash 
function,\41\ and digital signatures that are specified in ISO/IEC 
18013-5:2021(E), and in NIST FIPS PUB 180-4, 186-5, 197-upd1, 198-1, 
and 202.
---------------------------------------------------------------------------

    \40\ Encryption refers to the process of cryptographically 
transforming data into a form in a manner that conceals the data's 
original meaning to prevent it from being read. Decryption is the 
process of restoring encrypted data to its original state. IETF RFC 
4949, internet Security Glossary, Version 2, Aug. 2007, https://datatracker.ietf.org/doc/html/rfc4949 (last visited July 17, 2024).
    \41\ A function that processes an input value creating a fixed-
length output value using a method that is not reversible (i.e., 
given the output value of a function it is computationally 
impractical to find the function's corresponding input value).
---------------------------------------------------------------------------

(ii) Audit Requirements
    Section 37.10(b) requires a State to submit an audit report 
prepared by an independent auditor verifying the accuracy of the 
information provided by the State in response to Sec.  37.10(a), as 
follows:
     Paragraph (1) sets forth specific experience, 
qualifications, and accreditations that an auditor must meet.
     Paragraph (2) requires a State to provide information 
demonstrating the absence of a potential conflict of interest of the 
auditing entity.
    The term ``independent'' does not exclude an entity that is 
employed or contracted by a State, so long as that entity is 
independent of (i.e., not an employee or contractor) the State's 
driver's licensing agency. TSA provides this clarification at the 
request of commenters (see Part IV.U., below).
(iii) Waiver Application Guidance
    As set forth in Sec.  37.10(c), TSA has published Mobile Driver's 
License Waiver Application Guidance on the REAL ID website at 
www.tsa.gov/real-id/mDL to assist States in completing their 
applications. The Guidance provides TSA's recommendations for some ways 
that States can meet the requirements in Sec.  37.10(a)(1). The 
Guidance does not establish legally enforceable requirements for States 
applying for a waiver. Instead, the Guidance provides non-binding 
examples of measures and practices that States may choose to consider 
as part of their overall strategy to issue mDLs. States continue to 
exercise discretion to select processes not included in the Guidance. 
Given the rapidly-evolving cyber threat landscape, however, TSA may 
periodically update the Guidance to provide additional information 
regarding newly published standards or other sources, or recommend 
mitigations of newly discovered risks to

[[Page 85349]]

the mDL ecosystem. TSA will publish a notice in the Federal Register 
advising that updated Guidance is available, and TSA will publish the 
updated Guidance on the REAL ID website at www.tsa.gov/real-id/mDL and 
provide a copy to all States that have applied for or been issued a 
certificate of waiver. Updates to the Guidance will not impact issued 
waivers or pending applications. Although the NPRM proposed that TSA 
would publish updated Guidance in the Federal Register, in addition to 
TSA's website, the final rule modifies this requirement to provide that 
the agency will publish in the Federal Register only a notice of 
availability of updated guidance, but the Guidance itself will be 
published on TSA's website. This change will enable TSA to more 
expediently provide updated guidance to the public.
(iv) Appendix A: Requirements for State mDL Issuance Systems
    Appendix A sets forth fundamental requirements to ensure the 
security and integrity of State mDL issuance processes. More 
specifically, these requirements concern the creation, issuance, use, 
revocation, and destruction of the State's certificate systems and 
cryptographic keys. Appendix A consists of requirements in eight 
categories: (1) Certificate Authority Certificate Life Cycle Policy, 
(2) Certificate Authority Access Management, (3) Facility, Management, 
and Operational Controls, (4) Personnel Security Controls, (5) 
Technical Security Controls, (6) Threat Detection, (7) Logging, and (8) 
Incident Response and Recovery Plan. Adherence to these requirements, 
described below, ensures that States issue mDLs in a standardized 
manner with security and integrity to establish the trust necessary for 
Federal acceptance for official purposes.
     Certificate Authority Certificate Life Cycle Policy 
requirements (Appendix A, paragraph 1) ensure that a State issuing an 
mDL creates and manages a formal process which follows standardized 
management and protections of digital certificates. These requirements 
must be implemented in full compliance with the references cited in 
Appendix A: CA/Browser Forum Baseline Requirements for the Issuance and 
Management of Publicly-Trusted Certificates; CA/Browser Forum Network 
and Certificate System Security Requirements; ISO/IEC 18013-5:2021(E), 
Annex B; NIST Framework for Improving Critical Infrastructure 
Cybersecurity; NIST SP 800-53 Rev. 5; and NIST SP 800-57.\42\
---------------------------------------------------------------------------

    \42\ See NPRM, 88 FR at 60062-65, for a discussion of these 
standards.
---------------------------------------------------------------------------

     Certificate Authority Access Management requirements 
(Appendix A, paragraph 2) set forth policies and processes for States 
concerning, for example, restricting access to mDL issuance systems, 
policies for multi-factor authentication, defining the scope and role 
of personnel, and certificate system architecture which separates and 
isolates certificate system functions to defined security zones. These 
requirements must be implemented in full compliance with the references 
cited in Appendix A: CA/Browser Forum Network and Certificate System 
Security Requirements; NIST Framework for Improving Critical 
Infrastructure Cybersecurity; NIST 800-53 Rev. 5; NIST SP 800-63-3; and 
NIST SP 800-63B.\43\
---------------------------------------------------------------------------

    \43\ See NPRM, 88 FR at 60062-65, for a discussion of these 
standards.
---------------------------------------------------------------------------

    Although NPRM Appendix A, paragraph 1.1, proposed requiring States 
to comply with NIST SP 800-53B (among other references) as part of 
States' development of a policy to govern their certificate systems, 
the final rule does not adopt the proposal requiring compliance with 
NIST SP 800-53B. Document NIST SP 800-53B, ``Control Baselines for 
Information Systems and Organizations,'' defines minimum security and 
privacy risk controls for Federal Government agencies to protect 
information security systems. In addition, the publication provides 
guidance, but not requirements, for other entities that implement NIST 
SP 800-53 Rev. 5 in their own organizations. Although TSA did not 
receive any public comments on NIST SP 800-53B, after re-evaluating the 
usefulness of this document, TSA concludes that other provisions in the 
final rule prescribe the necessary security and privacy requirements 
for States issuing mDLs, and NIST SP 800-53B only serves as guidance 
without providing security or privacy enhancements. Accordingly, the 
inclusion of NIST SP 800-53B is unnecessary, and the final rule 
therefore declines to adopt the NPRM's proposal.
     Under the requirements concerning Facility, Management, 
and Operational Controls (Appendix A, paragraph 3), States must provide 
specified controls protecting facilities where certificate systems 
reside from unauthorized access, environmental damage, physical 
breaches, and risks from foreign ownership, control, or influence. 
These requirements must be implemented in full compliance with the 
references cited in Appendix A: NIST SP 800-53 Rev. 5.\44\
---------------------------------------------------------------------------

    \44\ See NPRM, 88 FR at 60065, for a discussion of this 
standard.
---------------------------------------------------------------------------

     Personnel security controls (Appendix A, paragraph 4) 
require States to establish policies to control insider threat risks to 
certificate systems and facilities. Such policies must establish 
screening criteria for personnel who access certificate systems, post-
employment access termination, updates to personnel security policy, 
training, records retention schedules, among other policies. These 
requirements must be implemented in full compliance with the references 
cited in Appendix A: NIST SP 800-53 Rev. 5 and CA/Browser Forum 
Baseline Requirements for the Issuance and Management of 
Publicly[hyphen]Trusted Certificates.\45\
---------------------------------------------------------------------------

    \45\ See NPRM, 88 FR at 60062-63 & 60065, for a discussion of 
these standards.
---------------------------------------------------------------------------

     Technical security controls (Appendix A, paragraph 5) 
specify requirements to protect certificate system networks. In 
addition, States are required to protect private cryptographic keys of 
issuing authority root certificates using dedicated hardware security 
modules (HSMs) of Level 3 or higher and document signer private 
cryptographic keys in hardware security modules of Level 2 and higher. 
Dedicated HSMs are used (1) solely for IACA root private key functions 
and no other functions within the State's certificate system, including 
document signer private key functions, and (2) exclusively to support a 
single State. States are not permitted to share with any other State an 
HSM that physically supports multiple States. Other controls are 
specified regarding certificate system architecture and cryptographic 
key generation processes. These requirements must be implemented in 
full compliance with the references cited in Appendix A: CA/Browser 
Forum Network and certificate system Security Requirements; CA/Browser 
Forum Baseline Requirements for the Issuance and Management of 
Publicly-Trusted Certificates; NIST Framework for Improving Critical 
Infrastructure Cybersecurity; NIST SP 800-53 Rev. 5; NIST SP 800-57; 
and NIST FIPS PUB 140-3.\46\
---------------------------------------------------------------------------

    \46\ See NPRM, 88 FR at 60062-63 & 60065, for a discussion of 
these standards.
---------------------------------------------------------------------------

     Under requirements for threat detection (Appendix A, 
paragraph 6), States must implement controls to monitor and log 
evolving threats to various mDL issuance infrastructure, including 
digital certificate, issuance, and support systems. These requirements 
must be implemented in

[[Page 85350]]

full compliance with the references cited in Appendix A: CA/Browser 
Forum Network and certificate system Security Requirements; NIST 
Framework for Improving Critical Infrastructure Cybersecurity; and NIST 
SP 800-53 Rev. 5.\47\
---------------------------------------------------------------------------

    \47\ See NPRM, 88 FR at 60062-63 & 60065, for a discussion of 
these standards.
---------------------------------------------------------------------------

     Logging controls (Appendix A, paragraph 7) require States 
to record various events concerning certificate systems, including the 
management of cryptographic keys, and digital certificate lifecycle 
events. The controls set forth detailed requirements concerning 
specific types of events that must be logged, as well as timeframes for 
maintaining such logs. These requirements must be implemented in full 
compliance with the references cited in Appendix A: CA/Browser Forum 
Baseline Requirements for the Issuance and Management of 
Publicly[hyphen]Trusted Certificates; NIST Framework for Improving 
Critical Infrastructure Cybersecurity; and NIST SP 800-53 Rev. 5.\48\
---------------------------------------------------------------------------

    \48\ See NPRM, 88 FR at 60062-63 & 60065, for a discussion of 
these standards.
---------------------------------------------------------------------------

     Incident Response and Recovery Plan (Appendix A, paragraph 
8) requires States to implement policies to respond to and recover from 
security incidents. States must act on logged events, issue alerts to 
relevant personnel, respond to alerts within a specified time period, 
perform vulnerability scans, among other things. In particular, States 
must report to TSA at www.tsa.gov/real-id/mDL within 72 hours of 
discovering a reportable cybersecurity incident. In response to 
comments to the NPRM seeking clarity on the reporting requirements (see 
Part IV.V.5.c., below), the final rule adds a provision that reportable 
incidents are those defined in the TSA Cybersecurity Lexicon at 
www.tsa.gov that could compromise the integrity of a certificate 
system. These requirements must be implemented in full compliance with 
the references cited in Appendix A: CA/Browser Forum Network and 
Certificate System Security Requirements; CISA Federal Government 
Cybersecurity Incident & Vulnerability Response Playbooks; \49\ DHS 
National Cyber Incident Response Plan; NIST SP 800-53 Rev. 5; and NIST 
Framework for Improving Critical Infrastructure Cybersecurity.\50\ 
Information submitted in response to this section may contain SSI, and 
if so, would be subject to requirements of 49 CFR part 1520. Although 
the NPRM did not propose the SSI protection provision, TSA evaluated 
comments to the NPRM (see Part IV.W., below) seeking clarification on 
SSI protection for other information (State waiver applications) and 
determined that SSI protection is warranted for State reports under 
this Appendix paragraph 8, which has been added in this final rule.
---------------------------------------------------------------------------

    \49\ The NPRM inadvertently omitted ``Federal Government'' from 
the title of this publication.
    \50\ See NPRM, 88 FR at 60062-63 & 60065, for a discussion of 
these standards.
---------------------------------------------------------------------------

5. Decisions on Applications for Waiver
    Section 37.9(b) establishes a timeline and process for TSA to issue 
decisions on a waiver application. Under this paragraph, TSA endeavors 
to provide States a decision on initial applications within 60 calendar 
days, but not longer than 90 calendar days. TSA will provide three 
types of written notice via email: approved, insufficient, or denied.
    If TSA approves a State's application for a waiver, TSA will issue 
a certificate of waiver to that State, and include the State in a list 
of mDLs approved for Federal use, published by TSA on the REAL ID 
website at www.tsa.gov/real-id/mDL.\51\ A certificate of waiver will 
specify the date that the waiver becomes effective, the expiration 
date, and any other terms and conditions with which a State must 
comply, as provided under Sec.  37.9(d). A State seeking to renew its 
certificate beyond the expiration date must reapply for a waiver, as 
provided in Sec.  37.9(e)(6).
---------------------------------------------------------------------------

    \51\ Section 37.9(b)(1).
---------------------------------------------------------------------------

    If TSA determines that an application is insufficient, did not 
respond to certain information required in Sec. Sec.  37.10(a) or (b), 
or contains other deficiencies, TSA will provide an explanation of such 
deficiencies and allow the State an opportunity address the 
deficiencies within the timeframe specified in Sec.  37.9(b)(2). TSA 
will permit States to submit multiple amended applications if 
necessary, with the intent of working with States individually to 
enable their mDLs to comply with the requirements of Sec. Sec.  
37.10(a) and (b).
    As provided in Sec.  37.9(b)(3), if TSA denies an application, TSA 
will provide the specific grounds for the basis of the denial and 
afford the State an opportunity to submit a new application or to seek 
reconsideration of a denied application. Under Sec.  37.9(c)(1), States 
will have 90 calendar days to file a request for reconsideration, and 
TSA will provide its final determination within 60 calendar days. 
Instructions for seeking reconsideration are provided by TSA on the 
REAL ID website at www.tsa.gov/real-id/mDL. As provided in Sec.  
37.9(c)(2), an adverse decision upon reconsideration would be 
considered a final agency action. However, a State whose request for 
reconsideration has been denied may submit a new application for a 
waiver.
6. Limitations, Suspension, and Termination of Certificate of Waiver
    Section 37.9(e) sets forth various terms regarding a certificate of 
waiver. Specifically, under paragraph (e)(1) of this section, a 
certificate of waiver is valid for a period of three years from the 
date of issuance. This period was selected to align with the frequency 
of States' recertification under Sec.  37.55(b).
    Paragraph (e)(2) requires that a State must report to TSA if, after 
it receives a waiver, it makes significant modifications to its mDL 
issuance processes that differ in a material way from information that 
the State provided in its application. If the State makes such 
modifications, it is required to report such changes, at www.tsa.gov/real-id/mDL, 60 calendar days before implementing the changes. This 
requirement is intended to apply to changes that may undermine the 
bases on which TSA granted a waiver. The reporting requirement is not 
intended to apply to routine, low-level changes, such as systems 
maintenance and software updates and patches. States that are uncertain 
about whether a change would trigger the reporting requirements should 
contact TSA as directed at www.tsa.gov/real-id/mDL. The final rule 
added this provision to contact TSA to provide greater certainty to 
States, following TSA's evaluation of public comments seeking 
clarification about the reporting requirements specified in the NPRM 
(see Part IV.S., below).
    Paragraph (e)(3) requires a State that is issued a waiver to comply 
with all requirements specified in Sec. Sec.  37.51(a) and 37.9(d)(3).
    Paragraph (e)(4) sets forth processes for suspension of 
certificates of waiver. As provided in Sec.  37.9(e)(4)(i)(A), TSA may 
suspend the validity of a certificate of waiver if TSA determines that 
a State:
     fails to comply with any terms and conditions (see Sec.  
37.9(d)(3)) specified in the certificate of waiver;
     fails to comply with reporting requirements (see Sec.  
37.9(e)(2)); or
     issues mDLs in a manner that is not consistent with the 
information the State provided in its application for a waiver under 
Sec. Sec.  37.10(a) and (b).
    Before suspending a waiver for these reasons, TSA will provide such 
State written notice via email that it intends to suspend its waiver, 
along with an explanation of the reasons, information on how the State 
may address the deficiencies, and a timeline for the State to respond 
and for TSA to reply to the

[[Page 85351]]

State, as set forth in Sec.  37.9(e)(4)(ii). TSA may withdraw the 
notice of suspension, request additional information, or issue a final 
suspension. If TSA issues a final suspension of a State's certificate 
of waiver, TSA will temporarily remove the name of that State from the 
list, published at www.tsa.gov/real-id/mDL, of mDLs approved for 
Federal acceptance for official purposes.\52\ TSA intends to work with 
States to resolve the conditions that result in a final suspension, and 
resume validity of that State's waiver. A State receiving a final 
suspension may apply for a new certificate of waiver by submitting a 
new application following the procedures in Sec.  37.9(a).
---------------------------------------------------------------------------

    \52\ Section 37.9(e)(4)(iii).
---------------------------------------------------------------------------

    TSA additionally may suspend a State's waiver at any time upon 
discovery that Federal acceptance of a State's mDL is likely to cause 
imminent or serious threats to the security, privacy, or data integrity 
of any Federal agency, as set forth in Sec.  37.9(e)(4)(i)(B). These 
are more exigent circumstances than those set forth in Sec.  
37.9(e)(4)(i)(A). Examples of such triggering events include cyber-
attacks and other events that cause serious harm to a State's mDL 
issuance systems. If a State discovers a reportable cybersecurity 
incident, as defined in the TSA Cybersecurity Lexicon available at 
www.tsa.gov, that it believes could compromise the integrity of its mDL 
issuance systems, paragraph 8.6 of Appendix A requires States to 
provide written notice to TSA as directed at www.tsa.gov/real-id/mDL, 
of such incident within no more than 72 hours of discovery. If TSA 
determines such suspension is necessary, TSA will provide written 
notice via email to each State whose certificate of waiver is affected, 
as soon as practicable after discovery of the triggering event, 
providing an explanation for the suspension, as well as an estimated 
timeframe for resumption of the validity of the certificate of waiver.
    Under Sec.  37.9(e)(5)(i), TSA may terminate a certificate of 
waiver for serious or egregious violations. More specifically, TSA may 
terminate a waiver if TSA determines that a State:
     does not comply with REAL ID requirements in Sec.  
37.51(a);
     is committing an egregious violation of any terms and 
conditions (see Sec.  37.9(d)(3)) specified in the certificate of 
waiver and is unwilling to cure such violation;
     is committing an egregious violation of reporting 
requirements (see Sec.  37.9(e)(2)) and is unwilling to cure such 
violation; or
     provided false information in its waiver application.
    As required in Sec.  37.9(e)(5)(ii), before terminating a 
certificate of waiver, TSA will provide written notice via email of 
intent to terminate, including findings supporting the termination and 
an opportunity for the State to present information. As specified, a 
State would have 7 calendar days to respond to the notice, and TSA will 
respond via email within 30 calendar days. TSA may withdraw the notice 
of termination, request additional information, or issue a final 
termination. Under Sec.  37.9(e)(5)(iii), if TSA issues a final 
termination of a State's certificate of waiver, TSA will remove the 
name of that State from the list of mDLs approved for Federal 
acceptance for official purposes. A State whose certificate of waiver 
has been terminated may apply for a new certificate of waiver by 
submitting a new application.
    Section 37.9(g) provides that information provided by States in 
response to paragraphs (a), (b)(2), (c), (e)(2), (e)(4)(ii), and 
(e)(5)(ii) of this section, which concern requirements on States to 
apply for and maintain a waiver, may contain SSI and therefore must be 
handled and protected in accordance with 49 CFR part 1520. Although the 
NPRM did not propose Sec.  37.9(g), the final rule adds this provision 
based on TSA's evaluation of comments to the NPRM (see Part IV.W., 
below) seeking clarification on SSI protection for information in State 
waiver applications. TSA determined that a provision concerning SSI 
protection is warranted not only for information in State waiver 
applications, but also for other information provided by States in 
response to Sec. Sec.  37.9(b)(2), (c), (e)(2), (e)(4)(ii), and 
(e)(5)(ii), which has been added in this final rule.
7. Effect of Status of Waiver on REAL ID Compliance
    Section 37.9(f) clarifies that the status of a State's issued 
certificate of waiver, including the status of a pending application 
for a waiver, has no bearing on TSA's determination of that State's 
compliance or non-compliance with any other section of this part. A 
certificate of waiver that TSA has issued to a State is not a 
determination that the State is in compliance with any other section in 
this part. Similarly, an application for a waiver that TSA has deemed 
insufficient or denied, or a certificate of waiver TSA has suspended or 
terminated, or that has expired, is not a determination that the State 
is not in compliance with any other section in this part.
8. Incorporation by Reference
    Sections 37.8(b) and 37.10(a) and Appendix A of this final rule 
provide that States must comply with applicable sections of specified 
industry standards and government guidelines. The Office of Federal 
Register (OFR) has published regulations concerning IBR.\53\ These 
regulations require that, for a final rule, agencies must discuss in 
the preamble to the rule the way in which materials that the agency 
IBRs are reasonably available to interested persons, and how interested 
parties can obtain the materials. Additionally, the preamble to the 
rule must summarize the material.\54\
---------------------------------------------------------------------------

    \53\ 1 CFR part 51.
    \54\ 1 CFR 51.5(b).
---------------------------------------------------------------------------

    The final rule amends subpart A, Sec.  37.4, by revising the 
introductory paragraph and adding new IBR material specified below. TSA 
has worked to ensure that IBR materials are reasonably available to the 
class of persons affected. All materials may be obtained from their 
publisher, as discussed below, and certain materials as noted are 
available in the Federal Docket Management System at https://www.regulations.gov, docket number TSA-2023-0002. In addition, all but 
one of the IBR'd standards (ISO/IEC 18013-5:2021(E), discussed in Part 
II.D., below) are available to the public for free at the hyperlinks 
provided, and all are available for inspection on a read-only basis at 
TSA. Please contact TSA at Transportation Security Administration, 
Attn.: OS/ESVP/REAL ID Program, TSA Mail Stop 6051, 6595 Springfield 
Center Dr., Springfield, VA 20598-6051, (866) 289-9673, or visit 
www.tsa.gov. You may also contact the REAL ID Program Office at [email protected] or visit www.tsa.gov/REAL-ID/mDL.\55\
---------------------------------------------------------------------------

    \55\ The National Archives and Records Administration (NARA) 
maintains the official Federal copy of the IBR'd standards, but does 
not provide or distribute copies. See www.archives.gov/federal-register/cfr/ibr-locations.htm (last visited Sept. 17, 2024).
---------------------------------------------------------------------------

    The rule revises the introductory paragraph proposed in the NPRM to 
clarify availability of IBR materials. Specifically, the final rule 
replaces DHS with TSA as a location where IBR material is available for 
inspection, and provides additional points of contact at TSA. TSA also 
notes that certain material is available in the Federal Docket 
Management System at https://regulations.gov, docket number TSA-2023-
0002. The final rule makes these revisions given TSA's evaluation of 
public comments concerning access to IBR materials (see Part IV.K., 
below).
    The final rule IBRs the following material:

[[Page 85352]]

a. American Association of Motor Vehicle Administrators
    In September 2022, the American Association of Motor Vehicle 
Administrators (AAMVA) published Mobile Driver's License (mDL) 
Implementation Guidelines Version 1.2 (Jan. 2023) (AAMVA Guidelines), 
American Association of Motor Vehicle Administrators, 4401 Wilson 
Boulevard, Suite 700, Arlington, VA 22203, available at https://aamva.org/getmedia/b801da7b-5584-466c-8aeb-f230cef6dda5/mDL-Implementation-Guidelines-Version-1-2_final.pdf (last visited July 17, 
2024). The AAMVA Guidelines are available to the public for free at the 
link provided above. The AAMVA Guidelines adapt industry standard ISO/
IEC 18013-5:2021(E) (discussed in Part II.D.4., below), for State 
driver's licensing agencies through the addition of more qualified 
recommendations, as the ISO/IEC standard has been developed for 
international purposes and may not meet all purposes and needs of 
States and the Federal Government. For example, Part 3.2 of the AAMVA 
Guidelines modify and expand the data elements specified in ISO/IEC 
18013-5:2021(E), in order to enable the mDL to indicate the REAL ID 
compliance status of the underlying physical card, as well as to ensure 
interoperability necessary for Federal acceptance. AAMVA has added mDL 
data fields ``DHS_compliance'' and ``DHS_temporary_lawful_status.'' 
These data fields provide the digital version of the requirements for 
data fields for physical cards defined in 6 CFR 37.17(n) \56\ and 6 CFR 
37.21(e),\57\ respectively. As discussed generally in Part III.C.4, 
below, Sec. Sec.  37.10(a)(1) and (4) of this rule require a State to 
explain, as part of its application for a waiver, how the State issues 
mDLs that are compliant with specified requirements of the AAMVA 
Guidelines.
---------------------------------------------------------------------------

    \56\ Section 37.17(n) provides, ``The card shall bear a DHS-
approved security marking on each driver's license or identification 
card that is issued reflecting the card's level of compliance as set 
forth in Sec.  37.51 of this Rule.''
    \57\ Section 37.21(e) provides, ``Temporary or limited-term 
driver's licenses and identification cards must clearly indicate on 
the face of the license and in the machine readable zone that the 
license or card is a temporary or limited-term driver's license or 
identification card.''
---------------------------------------------------------------------------

b. Certification Authority Browser Forum
    The Certification Authority Browser Forum (CA/Browser Forum) is an 
organization of vendors of hardware and software used in the production 
and use of publicly trusted certificates. These certificates are used 
by forum members, non-member vendors, and governments to establish the 
security and trust mechanisms for public key infrastructure-enabled 
systems. The CA/Browser Forum has published two sets of requirements 
applicable for any implementers of PKI, including States that are 
seeking to deploy certificate systems that must be publicly trusted and 
used by third parties:
     Baseline Requirements for the Issuance and Management of 
Publicly-Trusted Certificates v. 1.8.6 (December 14, 2022), available 
at https://cabforum.org/wp-content/uploads/CA-Browser-Forum-BR-1.8.6.pdf (last visited July 17, 2024), establishes a set of 
fundamental controls for the management of publicly trusted certificate 
authorities, including the controls and processes required for the 
secure generation of digital signing keys; and
     Network and Certificate System Security Requirements v. 
1.7 (April 5, 2021), available at https://cabforum.org/wp-content/uploads/CA-Browser-Forum-Network-Security-Guidelines-v1.7.pdf (last 
visited July 17, 2024), establishes a broad set of security controls 
needed to securely manage a publicly trusted certificate authority and 
key infrastructure management system.
    CA/Browser Forum, 815 Eddy St, San Francisco, CA 94109, (415) 436-
9333. To issue mDLs that can be trusted by Federal agencies, each 
issuing State must establish a certificate system, including a root 
certification authority that is under control of the issuing State. TSA 
believes the CA/Browser Forum requirements for publicly trusted 
certificates have been proven to be an effective model for securing 
online transactions. As discussed generally in Part III.C.4, below, 
Appendix A, paragraphs 1, 2, and 4-8, require compliance with specified 
requirements of the CA/Browser Forum Baseline Requirements and/or 
Network and Certificate System Security Requirements.
c. DHS and Cybersecurity and Infrastructure Security Agency
    DHS protects the nation from multiple threats, including 
cybersecurity, aviation and border security, among others. The 
Cybersecurity and Infrastructure Security Agency (CISA), a component of 
DHS, is the operational lead for Federal cybersecurity and the national 
coordinator for critical infrastructure security and resilience. DHS 
and CISA have published two guidelines which are relevant to the 
operations of States' mDL issuance systems:
     DHS, National Cyber Incident Response Plan (Dec. 2016), 
available at https://www.cisa.gov/uscert/sites/default/files/ncirp/National_Cyber_IncidentResponse_Plan.pdf (last visited July 17, 2024), 
further standardizes the response process for cyber incidents including 
the preparation, detection and analysis, containment, eradication and 
recovery, and post-incident activities. Department of Homeland 
Security, 2707 Martin Luther King Jr. Ave. SE, Washington, DC 20528; 
(202) 282-8000; and
     CISA, Federal Government Cybersecurity Incident & 
Vulnerability Response Playbooks (Nov. 2021),\58\ available at https://www.cisa.gov/sites/default/files/publications/Federal_Government_Cybersecurity_Incident_and_Vulnerability_Response_Playbooks_508C.pdf (last visited July 17, 2024), was developed consistent 
with the direction of Presidential Policy Directive 41 (PPD-41) to 
establish how the U.S. responds to and recovers from significant cyber 
incidents which pose a risk to critical infrastructure, including the 
identity issuance infrastructure operated by U.S. States issuing mDLs.
---------------------------------------------------------------------------

    \58\ The NPRM inadvertently omitted ``Federal Government'' from 
the title of this publication.
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    Cybersecurity and Infrastructure Security Agency, Mail Stop 0380, 
245 Murray Lane, Washington, DC 20528-0380, (888) 282-0870. These 
guidelines, available for free at the links provided above and in the 
Federal Docket Management System at https://www.regulations.gov, docket 
number TSA-2023-0002, provide details on best practices for management 
of systems during a cybersecurity incident, providing recommendations 
on incident and vulnerability response. Management of cybersecurity 
incidents and vulnerabilities is critical to maintenance of a State's 
mDL issuance IT infrastructure. As discussed generally in Part III.C.4, 
below, Appendix A, paragraph 8, requires compliance with specified 
requirements of the DHS National Cyber Incident Response Plan and the 
CISA Federal Government Cybersecurity Incident & Vulnerability Response 
Playbooks.
d. International Organization for Standardization and International 
Electrotechnical Commission
    International standards-setting organizations, the International 
Organization for Standardization (ISO) and the International 
Electrotechnical Commission (IEC),\59\ are jointly drafted

[[Page 85353]]

international standards specific to mDLs.\60\ In September 2021, ISO 
and IEC published ISO/IEC 18013, Part 5, entitled, ``Personal 
identification--ISO-compliant driving licence.'' ISO/IEC 18013-
5:2021(E), Personal identification--ISO-compliant driving licence--Part 
5: Mobile driving licence (mDL) application (Sept. 2021), International 
Organization for Standardization, Chemin de Blandonnet 8, CP 401, 1214 
Vernier, Geneva, Switzerland, +41 22 749 01 11, www.iso.org/contact-iso.html. This standard is available for inspection at TSA as discussed 
above. In addition, TSA is working with the American National Standards 
Institute (ANSI), a private organization not affiliated with DHS, to 
add this standard to the ANSI IBR Standards Portal which provides free, 
read-only access.\61\ TSA has participated in the development of these 
standards as a non-voting member of the United States national body 
member of the Joint Technical Committee.\62\
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    \59\ ISO is an independent, non-governmental international 
organization with a membership of 164 national standards bodies. ISO 
creates documents that provide requirements, specifications, 
guidelines or characteristics that can be used consistently to 
ensure that materials, products, processes and services are fit for 
their purpose. The IEC publishes consensus-based international 
standards and manages conformity assessment systems for electric and 
electronic products, systems and services, collectively known as 
``electrotechnology.'' ISO and IEC standards are voluntary and do 
not include contractual, legal or statutory obligations. ISO and IEC 
standards contain both mandatory requirements and optional 
recommendations, and those who choose to implement the standards 
must adopt the mandatory requirements.
    \60\ ISO defines an International Standard as ``provid[ing] 
rules, guidelines or characteristics for activities or for their 
results, aimed at achieving the optimum degree of order in a given 
context. It can take many forms. Apart from product standards, other 
examples include: test methods, codes of practice, guideline 
standards and management systems standards.'' www.iso.org/deliverables-all.html (last visited July 17, 2024).
    \61\ ANSI, IBR Standards Portal, https://ibr.ansi.org/ (last 
visited July 17, 2024).
    \62\ A member of TSA serves as DHS's representative to the 
Working Group.
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    Standard ISO/IEC 18013-5:2021(E) standardizes communications 
interfaces between an mDL holder and an entity seeking to read an 
individual's mDL for identify verification purposes, and between a 
verifying entity and a State driver's licensing agency. This standard 
also sets full operational and communication requirements for both mDLs 
and mDL readers. Standard ISO/IEC 18013-5:2021(E) applies to 
``attended'' mode verification, in which both the mDL holder and an 
officer or agent of a verifying entity are physically present together 
during the time of identity verification.\63\ TSA believes ISO/IEC 
18013-5:2021(E) is critical to enabling the interoperability, security, 
and privacy necessary for wide acceptance of mDLs by Federal agencies 
for official purposes. Specifically, Sec.  37.8 of this rule requires 
Federal agencies to validate an mDL as required by standard ISO/IEC 
18013-5:2021(E), and Sec.  37.10(a)(4) requires a State to explain, as 
part of its application for a waiver, how the State issues mDLs that 
are interoperable with this standard to provide the security necessary 
for Federal acceptance.
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    \63\ Part 7 of Series ISO/IEC 18013, entitled ``mDL add-on 
function,'' is an upcoming technical specification that will 
standardize interfaces for ``unattended'' mode verification, in 
which the mDL holder and officer/agent of the verifying agency are 
not physically present together, and the identity verification is 
conducted remotely. Unattended identity verification is not 
currently considered a REAL ID use case. ISO defines a ``Technical 
Specification'' as ``address[ing] work still under technical 
development, or where it is believed that there will be a future, 
but not immediate, possibility of agreement on an International 
Standard. A Technical Specification is published for immediate use, 
but it also provides a means to obtain feedback. The aim is that it 
will eventually be transformed and republished as an International 
Standard.'' ISO, Deliverables, www.iso.org/deliverables-all.html 
(last visited July 17, 2024).
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e. National Institute for Standards and Technology
    The National Institute of Standards and Technology (NIST), part of 
the U.S. Department of Commerce, promotes U.S. innovation and 
industrial competitiveness by advancing measurement science, standards, 
and technology in ways that enhance economic security and quality of 
life. As part of this mission, NIST produces measurements and standards 
relied on by the U.S. agencies and industry.
i. Federal Information Processing Standards
    NIST maintains the Federal Information Processing Standards (FIPS) 
which relate to the specific protocols and algorithms necessary to 
securely process data. This suite of standards includes:
     NIST FIPS PUB 140-3, Security Requirements for 
Cryptographic Modules (March 22, 2019), available at https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.140-3.pdf (last visited July 
17, 2024), specifies the security requirements for cryptographic 
modules that are used to secure the keys which are used in digitally 
signing mDLs, and properly securing these keys is essential to creating 
a publicly trusted certificate authority for mDL issuance;
     NIST FIPS PUB 180-4, Secure Hash Standard (SHS) (August 4, 
2015), available at https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.180-4.pdf (last visited July 17, 2024), specifies the secure 
hash standard, a cryptographic algorithm necessary to provide message 
and data element integrity while using the transaction modes specified 
in ISO/IEC 18013-5:2021(E) for mDL data transmission;
     NIST FIPS PUB 186-5, Digital Signature Standard (DSS) 
(February 3, 2023), available at https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.186-5.pdf (last visited July 17, 2024), specifies 
digital signature standards used in ISO/IEC 18013-5:2021(E) standard to 
provide data integrity for mDL data elements issued by states; and
     NIST FIPS PUB 197-upd1, Advanced Encryption Standard (AES) 
(May 9, 2023) available at https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.197-upd1.pdf (last visited July 17, 2024), specifies the 
Advanced Encryption Standard, which is a cryptographic algorithm used 
to securely encrypt data messages used in the transmission of mDL data 
in ISO/IEC 18013-5:2021(E).
    Although the NPRM proposed to IBR the prior (2001) version, NIST 
FIPS PUB 197, the final rule IBRs the current (May 2023) updated 
version, NIST FIPS PUB 197-upd1, which NIST confirms makes editorial 
improvements, but no technical changes to the version specified in the 
NPRM.\64\ TSA has reviewed the updates and confirms they are formatting 
and stylistic clarifications. Although the public had an opportunity to 
comment, no such comments were received. Given the absence of public 
comments, no substantive changes to the updated standard, and to ensure 
continuing public access to this standard, the final rule IBRs the 
updated version, NIST FIPS PUB 197-upd1, which is consistent with the 
NPRM's proposal to IBR the previous version. TSA concludes that the 
compliance impact on stakeholders of both versions of this standard is 
identical.
---------------------------------------------------------------------------

    \64\ See https://csrc.nist.gov/News/2023/nist-updates-fips-197-advanced-encryption-standard (last visited July 17, 2024); https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.197-upd1.pdf (last visited 
July 17, 2024) at 37; https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.197.pdf (last visited July 17, 2024) at 1.
---------------------------------------------------------------------------

     NIST FIPS PUB 198-1, The Keyed-Hash Message Authentication 
Code (HMAC) (July 16, 2008) available at https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.198-1.pdf (last visited July 17, 2024), 
specifies the keyed hash message authentication code which is an 
essential cryptographic algorithm to create a properly interoperable 
mDL using ISO/IEC 18013-5:2021(E); and
     NIST FIPS PUB 202, SHA-3 Standard: Permutation-Based Hash 
and Extendable-Output Functions (August 4, 2015) available at https://

[[Page 85354]]

nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.202.pdf (last visited July 17, 
2024), specifies the secure hash algorithm 3, a cryptographic algorithm 
necessary to provide message and data element integrity in ISO/IEC 
18013-5:2021(E) for mDL data transmission.
    National Institute of Standards and Technology, U.S. Department of 
Commerce, 100 Bureau Drive, Gaithersburg, MD 20899. This suite of FIPS 
standards, available in the Federal Docket Management System at https://www.regulations.gov, docket number TSA-2023-0002, are critical to the 
transactions required for mDLs, and any Federal systems which interact 
with or are used to verify an mDL for REAL ID official purposes will be 
required to use the algorithms and protocols defined. As discussed 
generally in Part III.C.4, below, Sec.  37.10(a)(4) requires compliance 
with specified requirements of NIST FIPS PUB 180-4, 186-5, 197-upd1, 
198-1, and 202, and Appendix A, paragraph 5, requires compliance with 
FIPS PUB 140-3.
ii. Security and Privacy Controls for Information Systems and 
Organizations; Key Management
    NIST has published several guidelines to protect the security and 
privacy of information systems:
     NIST SP 800-53 Rev. 5, Security and Privacy Controls for 
Information Systems and Organizations (September 2020), available at 
https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-53r5.pdf (last visited July 17, 2024), specifies a broad set of 
security and privacy controls which states must use to manage the 
information systems involved in the issuance and management of mDLs;
     NIST SP 800-57 Part 1, Rev. 5, Recommendation for Key 
Management: Part 1--General (May 2020), available at https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-57pt1r5.pdf 
(last visited July 17, 2024), provides general recommendations for 
states managing cryptographic keys that are used to securely issue 
mDLs;
     NIST SP 800-57 Part 2, Rev. 1, Recommendation for Key 
Management: Part 2--Best Practices for Key Management Organizations 
(May 2019), available at https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-57pt2r1.pdf (last visited July 17, 
2024), provides best practices states must follow while managing 
cryptographic keys; and
     NIST SP 800-57 Part 3, Rev. 1, Recommendation for Key 
Management, Part 3: Application-Specific Key Management Guidance 
(January 2015) available at https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-57Pt3r1.pdf (last visited July 17, 
2024), provides for application specific controls for the management of 
cryptographic keys.
    National Institute of Standards and Technology, U.S. Department of 
Commerce, 100 Bureau Drive, Gaithersburg, MD 20899. All of these 
documents are available in the Federal Docket Management System at 
https://www.regulations.gov, docket number TSA-2023-0002.
    All four of these standards relate to the administration of a 
certificate system including: access management; certificate life-cycle 
policies; operational controls for facilities and personnel; technical 
security controls; and vulnerability management such as threat 
detection, incident response, and recovery planning. Due to the 
sensitive nature of State certificate system processes and the 
potential for significant harm to security if confidentiality, 
integrity, or availability of the certificate systems is compromised, 
the minimum risk controls specified in Appendix A require compliance 
with the NIST SP 800-53 Rev. 5 ``high baseline'' as set forth in that 
document, as well as compliance with the specific risk controls 
described in Appendix A. In addition, and as discussed generally in 
Part III.C.4, below: Appendix A, paragraphs 1-8, require compliance 
with NIST SP 800-53 Rev. 5; paragraphs 1 and 5 require compliance with 
NIST SP 800-57 Part 1, Rev. 5; paragraph 1 requires compliance with 
NIST SP 800-57 Part 2 Rev. 1; and paragraph 1 requires compliance with 
NIST SP 800-57 Part 3, Rev. 1.
iii. Digital Identity Guidelines
    NIST has published NIST SP 800-63-3, which covers technical 
requirements for Federal agencies implementing digital identity: NIST 
Special Publication 800-63-3, Digital Identity Guidelines (June 2017), 
National Institute of Standards and Technology, U.S. Department of 
Commerce, 100 Bureau Drive, Gaithersburg, MD 20899, available at 
https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-63-3.pdf (last visited July 17, 2024)and in the Federal Docket Management 
System at https://www.regulations.gov, docket number TSA-2023-0002.
    The Digital Identity Guidelines define technical requirements in 
each of the areas of identity proofing, registration, user 
authentication, and related issues. Because TSA is not aware of a 
common industry standard for mDL provisioning that is appropriate for 
official REAL ID purposes today, TSA views the Digital Identity 
Guidelines as critical to informing waiver application requirements for 
States regarding provisioning. As discussed generally in Part III.C.4, 
below, under Sec.  37.10(a)(2) of the final rule, which requires 
compliance with Appendix A, a State must explain, as part of its 
application for a waiver, how the State issues mDLs that are compliant 
with NIST SP 800-63-3 to provide the security for mDL IT infrastructure 
necessary for Federal acceptance.
    NIST has also published Special Publication 800-63B, Digital 
Identity Guidelines: Authentication and Lifecycle Management (June 
2017), National Institute of Standards and Technology, U.S. Department 
of Commerce, 100 Bureau Drive, Gaithersburg, MD 20899, available at 
https://nvlpubsnist.gov/nistpubs/specialpublications/nist.sp.800-63b.pdf (last visited July 17, 2024) and in the Federal Docket 
Management System at https://www.regulations.gov, docket number TSA-
2023-0002. This document, which is a part of NIST SP 800-63-3, provides 
technical requirements for Federal agencies implementing digital 
identity services. The standard focuses on the authentication of 
subjects interacting with government systems over open networks, 
establishing that a given claimant is a subscriber who has been 
previously authenticated and establishes three authenticator assurance 
levels. As discussed generally in Part III.C.4, below, Sec.  
37.10(a)(2) of this rule requires compliance with Appendix A, which 
requires a State to explain, as part of its application for a waiver, 
how the State manages its mDL issuance infrastructure using 
authenticators at assurance levels provided in NIST SP 800-63B.
iv. Framework for Improving Critical Infrastructure Cybersecurity
    NIST has published Framework for Improving Critical Infrastructure 
Cybersecurity v. 1.1 (April 16, 2018), National Institute of Standards 
and Technology, U.S. Department of Commerce, 100 Bureau Drive, 
Gaithersburg, MD 20899, available at https://nvlpubs.nist.gov/nistpubs/CSWP/NIST.CSWP.04162018.pdf (last visited July 17, 2024). This 
document, available in the Federal Docket Management System at https://www.regulations.gov, docket number TSA-2023-0002, provides relevant 
information for cybersecurity for States issuing mDLs. As discussed 
generally in Part III.C.4, below, certain requirements from the NIST 
Framework for Improving

[[Page 85355]]

Critical Infrastructure Cybersecurity have been adopted in Appendix A, 
paragraphs 1, 2, and 5-8.

D. Impacted Stakeholders

    This final rule applies to State driver's licensing agencies 
issuing mDLs that seek a temporary waiver from TSA for its mDLs. The 
waiver established by this rule enables Federal agencies to accept such 
mDLs for official purposes, defined in the REAL ID Act as accessing 
Federal facilities, entering nuclear power plants, boarding Federally 
regulated commercial aircraft, and any other purposes that the 
Secretary shall determine. Any Federal agency that chooses to accept 
mDLs for official purposes must procure a reader in order to receive an 
individual's identity data.
    This final rule does not apply to:
     States that do not seek a waiver for mDLs;
     Non-State issuers of other forms of digital 
identification; or
     Federal agencies that elect not to accept mDLs.
    A State seeking a waiver for Federal acceptance of its mDLs for 
official purposes is required to file with TSA a complete application 
and supporting documents.\65\ A State must demonstrate how its mDLs 
meet the requirements for a waiver set forth in Sec. Sec.  37.10(a) and 
(b) when completing the application.
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    \65\ Section 37.9(a).
---------------------------------------------------------------------------

E. Use Cases Affected by This Rule

    This final rule applies only to Federal acceptance of mDLs for 
official purposes, defined by the REAL ID regulations as accessing 
Federal facilities, entering nuclear power plants, and boarding 
Federally regulated commercial aircraft. Any other purpose is beyond 
the scope of this rulemaking. For example, a waiver issued under this 
rule does not apply to any of the following:
     mDL acceptance by Federal agencies for non-REAL ID 
official uses (e.g., applying for Federal benefits);
     mDL acceptance by non-Federal agencies (e.g., State 
agencies, businesses, private persons);
     Commercial transactions; or
     Physical driver's licenses or identification cards.
    Nothing in this rule requires Federal agencies to accept mDLs, as 
each Federal agency retains the discretion to determine its 
identification policies. Additionally, nothing in this rule requires a 
State to seek a waiver or issue mDLs.

F. Severability

    TSA notes that these changes impact multiple provisions that are 
not necessarily interrelated and can function independent of one 
another. As such, TSA believes that some of the provisions of each new 
part can function sensibly independent of other provisions. Therefore, 
in the event that any provisions in this rulemaking action as finalized 
are invalidated by a reviewing court, TSA intends remaining provisions 
to remain in effect to the fullest extent possible.

IV. Discussion of Comments

    TSA published the NPRM on August 30, 2023,\66\ and the deadline for 
public comments was October 16, 2023. TSA received 31 comments,\67\ 
including some comments that were submitted shortly after the comment 
period closed. TSA carefully considered every comment received as part 
of the official record, including those that were submitted late. 
Comments and TSA's responses are as summarized by topic below.
---------------------------------------------------------------------------

    \66\ See 88 FR 60056.
    \67\ The 31 total comments include one duplicate, one 
correction, and one confidential submission.
---------------------------------------------------------------------------

A. Waiver Eligibility

    Comments: Several State driver's licensing agencies, an 
association, and some vendors expressed concerns that under Sec. Sec.  
37.7(b)(3) and 37.10(a)(1)(vii) of the NPRM, TSA would issue waivers to 
States that issued mDLs only to holders of REAL ID-compliant physical 
cards, but a State that issues mDLs to two groups of individuals--both 
holders of REAL ID-compliant AND non-compliant physical cards--would be 
ineligible for a waiver because of issuance to the latter group. Stated 
differently, a State's issuance of mDLs to holders of non-compliant 
physical cards alone would remove the State's eligibility to apply for 
a waiver.
    Another commenter requested clarification regarding whether a State 
may still apply for and receive a waiver after enforcement of the REAL 
ID Act and regulations begins on May 7, 2025.
    TSA Response: TSA agrees with commenters and is revising the final 
rule to clarify that a State will not be excluded from eligibility to 
apply for a waiver if a State issues mDLs to both REAL ID compliant and 
non-compliant physical cardholders. The intended purpose of TSA's 
requirement is for States to ensure that an individual's mDL matches 
the compliance status of the underlying physical card, and for States 
to issue an mDL in a manner that enables a verifying Federal agency to 
confirm the underlying physical card's REAL ID compliance status.
    Consistent with that intent, and to address commenters' concerns, 
the final rule makes three changes to the NPRM. First, this final rule 
deletes Sec.  37.7(b)(3), as proposed by the NPRM, which provided as a 
criterion of waiver eligibility that a State must issue mDLs only to 
individuals who have been issued REAL ID-compliant physical cards.
    Second, the final rule deletes a similar requirement from Sec.  
37.10(a)(1)(vii), as proposed by the NPRM, which provided that States 
must issue an mDL only to a resident who has been issued a valid, 
unexpired, and REAL ID-compliant physical card that underlies the mDL. 
The final rule modifies this provision to require States to populate 
this data field to correspond to the REAL ID compliance status of the 
underlying physical driver's license or identification card that a 
State has issued to an mDL holder. Specifically, Sec.  
37.10(a)(1)(vii)(A) requires mDL data element ``DHS_compliance'' to be 
populated with ``F'' if the underlying card is REAL ID-compliant, or as 
required by the AAMVA Guidelines,\68\ Section 3.2. In addition, Sec.  
37.10(a)(1)(vii)(B) requires mDL data element ``DHS_compliance'' to be 
populated ``N'' if the underlying card is not REAL ID-compliant.
---------------------------------------------------------------------------

    \68\ The AAMVA Guidelines require, among other things, that if 
the `EDL_credential' element is present, the `DHS_compliance' 
element shall have a value of ``F.''
---------------------------------------------------------------------------

    Third, the final rule adds new Sec.  37.8(c), which requires 
Federal agencies to confirm that the physical card underlying the mDL 
is REAL ID-compliant, as Federal agencies will only be permitted to 
accept mDLs if the underlying card is REAL ID-compliant. Federal 
agencies would make that determination by reviewing data element 
``DHS_compliance'' and confirming that it has been marked ``F.'' These 
changes ensure--without compromising a State's waiver eligibility--that 
an individual's mDL matches the compliance status of the physical card, 
and that Federal agency will accept only those mDLs that are based on a 
REAL ID-compliant underlying physical card.
    Separately, in response to the commenter's question regarding 
waiver applications after REAL ID enforcement begins on May 7, 2025, 
TSA confirms that a State indeed may apply for and receive a waiver 
after enforcement begins.

B. Conditions on Federal Agencies Accepting mDLs

    Comments: An association requested clarification concerning 
requirements

[[Page 85356]]

on Federal agencies that choose to accept mDLs. Specifically, the 
commenter noted that the preamble provided that one of the ``conditions 
for TSA acceptance'' is that TSA has determined the mDL issuing State 
is REAL ID-compliant. The commenter sought clarification on the timing 
of when this compliance determination is made, specifically, whether 
this is a one-time determination, whether it is made at the time when 
TSA is reviewing a State's application, or if the State's re-
certification schedule is applicable.
    TSA Response: First, TSA notes that this rule does not set 
conditions only for ``TSA Acceptance.'' Instead, the rule sets forth 
requirements for all Federal agencies who choose to accept mDLs for 
official purposes as defined in the REAL ID Act. Second, TSA clarifies 
that determination of a State's REAL ID compliance status is not a 
requirement for other Federal agencies to make. The only conditions on 
Federal agencies who accept mDLs are set forth in Sec.  37.8, which 
requires the agency to: (1) confirm the State holds a valid waiver by 
reviewing the specified TSA website, (2) use an mDL reader to 
communicate with and validate an individual's mDL, (3) confirm that the 
underlying physical card is REAL ID-compliant, and (4) notify TSA 
within 72 hours of the discovery of specified security, privacy, or 
data integrity threats. A State's compliance status is an element of a 
State's eligibility to apply for a waiver, as set forth in Sec.  
37.7(b)(1), and TSA will make this determination when reviewing a 
State's application. However, TSA acknowledges that the preamble to the 
NPRM states that a Federal agency must make this compliance 
determination. TSA has revised the preamble to this final rule to 
reflect the intended requirements.
    In response to comments, TSA also provides further clarification on 
the timing of its determination of a State's compliance status. TSA 
will make an initial determination of State compliance status at the 
time of application, but this is not a one-time determination. States 
have a continuing obligation, under 6 CFR 37.55(b), to maintain their 
compliance status by recertifying compliance every 3 years, an 
obligation which continues throughout the duration of the waiver. If 
recertification occurs after a State is issued a waiver and TSA 
determines the State is no longer in compliance, the waiver may be 
subject to review pursuant to Sec.  37.9(e)(5).

C. Waiver Application Criteria

1. Personally Identifiable Information and Privacy
    Comments: An association remarked that Sec.  37.10(a)(1)(i) 
introduces additional requirements concerning individuals' Personally 
Identifiable Information (PII) that are not related to mDL issuance and 
exceed existing requirements in the regulations. The commenter advised 
that the rule should not expand REAL ID requirements that are unrelated 
to mDLs.
    The association further noted that although privacy is an important 
concept, it applies mostly to the agreement between an issuing State 
and the mDL holder, and that the only applicability to verifying 
Federal agencies is ensuring that the agency receives only the 
information necessary for identity verification. The commenter 
therefore recommended updating Sec.  37.10(a)(3) so that States are 
only required to provision mDLs to digital wallets in a manner that 
will release only the data requested by the verifier. Additional 
privacy requirements, the commenter submitted, while important to 
individuals and States, may not affect verifying agencies.
    TSA Response: Sections 37.10(a)(1)(i) and (a)(3) of this rule 
extend to mDLs PII protections that are analogous to those in the 
existing regulations regarding physical cards. This rule is adding 
mirroring PII provisions because mDLs involve a new data set and 
additional elements that must be protected, which are not addressed in 
the current regulations. Section 37.10(a)(1)(i) requires encryption of 
PII, and Sec.  37.10(a)(3) requires an explanation of the means used to 
protect PII during processing, storage, and destruction of mDL records 
and provisioning records. Nothing in this final rule modifies or 
imposes new requirements regarding physical cards. While TSA concurs 
that there is a privacy interest between individuals and States, 
verifying Federal agencies have an equally important privacy interest 
in trusted mDL transactions.
2. Provisioning
    Comments: An association contended that although the intended goal 
of Sec. Sec.  37.10(a)(1)(iii)-(vi) is the step of ``binding,'' which 
means ensuring that an mDL is provisioned to the correct mDL holder's 
device, binding has no value to verifying Federal agencies, other than 
copy protection, at the time of identity verification. The association 
questions, therefore, the need for these requirements.
    TSA Response: ``Binding,'' a critical step in mDL provisioning, 
refers to the process where the issuing State binds, or pairs, the mDL 
data to a specific device through the generation of the device key and 
signing of the mobile security object. Binding is critically important 
to all stakeholders involved in an mDL transaction, including verifying 
Federal agencies, as they share a strong interest in a secure, trusted 
mDL ecosystem in which identity data is protected during mDL 
provisioning, provided only to the rightful holder of the data, bound 
to that holder's device, and resists cloning to other devices unless 
approved by the issuing State. Section 37.10(a)(1) sets forth 
requirements for provisioning, and the requirements specified in Sec.  
37.10(a)(1)(iii)-(vi) provide the requisite security and privacy 
protections to achieve secure binding. The TSA Waiver Guidance also 
sets forth recommendations for provisioning and binding. To clarify the 
relationship between provisioning and binding, the final rule adds a 
new definition to Sec.  37.3 for ``provisioning.''
3. AAMVA mDL Implementation Guidelines
    Comments: AAMVA noted that Sec.  37.10(a)(4) refers to version 1.1 
of the AAMVA Guidelines, conflicting with Sec.  37.4, which 
incorporates by reference version 1.2 of this document.
    TSA Response: TSA agrees that Sec.  37.10(a)(4) of the NPRM 
inadvertently listed version 1.1, instead of version 1.2, of the AAMVA 
Guidelines. TSA notes that the NPRM correctly cited version 1.2 in all 
other instances \69\ where it referenced the AAMVA Guidelines, and only 
made a typographical error to version ``1.1'' in a single instance, in 
Sec.  37.10(a)(4). TSA did not receive any comments to the contrary. 
Accordingly, the final rule has made a technical correction in Sec.  
37.10(a)(4) to address this typographical error and correctly refer to 
version 1.2.
---------------------------------------------------------------------------

    \69\ See 88 FR 60056, 60062, 60068, 60071, 60085, & 60087 (Aug. 
30, 2023).
---------------------------------------------------------------------------

4. Resident Address Data Element
    Comments: AAMVA submitted that Sec.  37.10(a)(4)(i) of the NPRM 
characterizes the ``resident_address'' data element as ``optional,'' 
despite that the AAMVA Guidelines define this data element as 
mandatory.
    TSA Response: TSA clarifies that the ``resident_address'' data 
element required in Sec.  37.10(a)(4)(i) refers to the data element as 
defined in the ISO/IEC 18013-5:2021(E) standard namespace 
``org.iso.18013.5.1,'' not any data

[[Page 85357]]

elements defined in the AAMVA Guidelines. The use of the term 
``optional'' in Sec.  37.10(a)(4)(i) reflects ISO/IEC's designation of 
that data element as defined in ISO/IEC 18013-5:2021(E). For 
clarification, despite ISO/IEC's designation of ``resident_address'' as 
an ``optional'' data field in ISO/IEC 18013-5:2021(E), Sec.  
37.10(a)(4)(i) of this final rule mandates inclusion of that data 
field.

D. TSA Waiver Application Guidance

    Comments: An association recommended that the TSA Waiver Guidance 
should include references to the corresponding sections of the rule. 
The association further recommended that the documents incorporated by 
reference in Sec.  37.4 should be moved to the Guidance to facilitate 
efficient updates as new standards are published. A State noted that 
the Guidance was not available at the website specified in Sec.  
37.10(c).
    TSA Response: TSA agrees that the Guidance would be more helpful if 
it references the applicable provisions in the final rule to which the 
Guidance applies. The Guidance has been revised to specifically include 
the corresponding regulatory provisions where possible. TSA appreciates 
the commenter's perspective and this opportunity to provide clarity to 
the public and stakeholders.
    Regarding the recommendation to move the standards from Sec.  37.4 
to the Guidance to reflect updated or newly-published standards, TSA 
notes that the Guidance is non-binding and does not establish any 
legally enforceable requirements. All security measures, practices, and 
metrics set forth are simply illustrative, non-exclusive examples for 
States to consider as part of their overall strategy to address the 
requirements under Sec.  37.10(a). Any legally enforceable requirements 
must be set forth in regulatory text. Moreover, as provided in Sec.  
37.10(c), TSA may update this Guidance as necessary to provide 
additional information or address evolving threats to security, 
privacy, or data integrity.
    TSA also clarifies that the Guidance was available during the 
comment period at the public rulemaking docket at www.regulations.gov, 
and continues to be available. The website specified in Sec.  37.10(c), 
and throughout the rule, was under development at the time of the NPRM 
but is now live.

E. General Concerns About mDLs

    Comments: Some public interest organizations posited that public 
demand for mDLs is ``non-existent'' and ``conjectural.'' However, some 
States disagreed. One State commented that it has issued more than 
200,000 mDLs to residents following a pilot in 2017 and more recent 
expansion in 2022 and 2023. Another State commented that in the 3 
months since it began offering its mDL app, it has been downloaded more 
than 7,000 times. Other commenters questioned the claimed mDL benefits 
concerning security, privacy, consumer protection, contact-free 
hygiene, among others, with one commenter opining that any such 
benefits would be realized only by those with the financial and 
technical means to purchase mobile devices that meet the specifications 
in the proposed rule. Some commenters further noted that mDLs would 
increase the vulnerability of driver's licensing agency databases to 
cyberattacks.
    However, other commenters believe mDLs provide potential security 
and privacy benefits. One industry vendor commented that the rule would 
strengthen mDL integrity and security, which the commenter believes is 
critical to mDL holders and verifying entities. The commenter 
specifically noted that unlike physical cards, which require an 
agency's verifying officer to have specialized knowledge of potentially 
``hundreds'' of different card designs of 56 issuing jurisdictions, the 
electronic safeguards built into mDLs obviate the need for such 
knowledge. The commenter further opined that mDLs provide privacy 
protections by empowering the mDL holder to control precisely what 
information is shared and with whom.
    TSA Response: TSA disagrees that public demand for mDLs is weak. As 
discussed in Part II.C.2., above, TSA understands that more than half 
of all 56 issuing jurisdictions are considering or issuing mDLs, and 
this number continues to increase. Indeed, TSA notes that some States 
submitted comments disagreeing about the purported lack of demand for 
mDLs.
    Regarding potential benefits of mDLs, TSA continues to believe that 
mDLs provide potential benefits, including security, privacy, 
efficiency, and contact-free hygiene, as discussed further in the 
NPRM.\70\ TSA has directly observed some of these benefits through its 
ongoing mDL testing at airport checkpoints (discussed in Part II.C.2, 
above). In addition, as discussed above, some commenters agreed with 
TSA's view that mDLs provide potential security and privacy benefits.
---------------------------------------------------------------------------

    \70\ See 88 FR at 60062.
---------------------------------------------------------------------------

    TSA disagrees that the rule effectively requires the purchase of 
smartphones that are costly or technologically complex, which 
commenters contend would limit potential mDL benefits only to those 
with financial and technical means. The potential benefits of mDLs can 
be realized using nearly any smartphone available today. The only 
technical requirements for such devices, as a result of this final 
rule, are a smartphone that employs Bluetooth Low Energy and has secure 
hardware capability to protect the device key associated with the mDL. 
These technologies are widely available on most smartphones.
    With respect to concerns that mDLs introduce new cyber 
vulnerabilities, TSA continues to believe that the minimum security 
requirements set forth in this rule would minimize the potential for 
harm resulting from such threats. As discussed in Part III.C.4.iii 
above, cyber threats are diverse and evolving, and TSA intends to 
address them by updating its Waiver Application Guidance as necessary. 
Some commenters agreed that this rulemaking would improve mDL security 
and the ability to resist cyber threats. An advocacy group shared that 
some States and industry today are using non-standardized technological 
approaches with wide substantive variances in security methodologies, 
thereby making some mDLs susceptible to fraud and privacy intrusions. 
The commenter noted that the proposed rule would overcome those 
concerns by providing standardized approaches to protect security and 
privacy.

F. Scope of Rulemaking and mDL Acceptance

    Comments: An association opined that mDLs could provide benefits to 
Federal agencies beyond the uses discussed in the proposed rule. 
Specifically, the association noted that the Departments of State and 
Transportation could accept mDLs to improve issuance of passports and 
commercial driver's licenses, respectively. The commenter also sought 
clarification on how mDL acceptance, and REAL ID broadly, will be 
operationalized at TSA, both today and when enforcement of the REAL ID 
Act begins.
    One State recommended that the definition of mDLs in the proposed 
rule be expanded to include Enhanced Driver's Licenses and Enhanced 
Identification Cards (collectively ``Enhanced Driver's Licenses'' or 
``EDLs'').
    TSA Response: TSA reiterates that the final rule applies only to 
Federal acceptance of mDLs for official purposes, defined by the REAL 
ID Act regulations as accessing Federal facilities, entering nuclear 
power plants,

[[Page 85358]]

and boarding Federally regulated commercial aircraft. Any other purpose 
is beyond the scope of this rulemaking.
    TSA further notes that each Federal agency that chooses to accept 
mDLs for official purposes must build its infrastructure, train its 
workforce, and operationalize mDL acceptance. Each Federal agency has 
the discretion to determine its own policies concerning acceptable IDs 
for access to their facilities, and for communicating this information 
to the public. TSA advises that questions concerning individual Federal 
agency identification policies and operational details should be 
directed to the appropriate program offices of individual agencies.
    Regarding EDLs, the definition of ``mDL'' does not require 
modification because EDLs comply with REAL ID standards (despite that 
they are not governed by the REAL ID Act).\71\ For that reason, this 
rule makes clear that mDLs issued based on EDLs will be accepted by 
Federal agencies under the waiver process. Indeed, the AAMVA Guidelines 
(incorporated by reference; see Sec.  37.4) similarly treat EDLs as 
synonymous with REAL ID-compliant driver's licenses, requiring that 
States encode EDL-based mDLs as REAL ID-compliant. To confirm that 
States properly encode an EDL as REAL ID-compliant, Sec.  
37.10(a)(1)(vii)(A) of this final rule requires States to populate the 
``DHS_compliance'' data element with ``F,'' indicating REAL ID-
compliant, as required by the AAMVA Guidelines (see Part IV.A., above). 
This ensures that a Federal officer verifying an EDL-based mDL will 
correctly identify the REAL ID compliance status of the underlying EDL. 
TSA appreciates the commenter's perspective and this opportunity to 
provide clarity to stakeholders.
---------------------------------------------------------------------------

    \71\ EDLs are governed by the Western Hemisphere Travel 
Initiative. As explained in the 2008 Final Rule, DHS worked closely 
with States to ensure that EDLs would comply with REAL ID standards. 
73 FR 5272, 5276 (Jan. 29, 2008). Some States mark EDLs as REAL ID 
compliant on the front of the card.
---------------------------------------------------------------------------

G. Privacy

    Comments: Several public interest organizations expressed concerns 
that this rulemaking would establish a national digital ID that Federal 
agencies could use in wide ranging circumstances and purposes. They 
suggested that this type of ID could lead to sharing of data between 
State driver's licensing agencies and Federal agencies, producing 
serious harms to privacy and security, particularly for immigrant 
communities. Immigrants, the commenters argue, could suffer because 
many States are issuing non-compliant cards to them, and this rule 
could influence States to share with Federal agencies information 
provided in immigrant applications, potentially resulting in 
deportation.
    Other public interest organizations noted that the proposed rule 
would facilitate tracking and surveillance because the rule requires 
``installation of a government app on a mobile device of a certain 
type.'' An organization further suggested that it be allowed to view 
source code for these apps in order to learn their true intent. 
Commenters recommended that the rule should not go forward without 
additional privacy safeguards, noting that standard ISO/IEC 18013-
5:2021(E) is not sufficient.
    TSA Response: In the REAL ID Act, Congress established minimum 
standards for the issuance of State-issued driver's licenses and 
identification cards acceptable for official Federal purposes. Neither 
the Act nor implementing regulations, 6 CFR part 37, contemplate the 
creation of a sole national identification card or Federal database of 
driver's license information. Under the statute, the official purposes 
for Federal agency acceptance of mDLs relate to identity verification, 
and Congress neither created nor authorized a national identification 
card. Each individual licensing jurisdiction continues to issue its own 
unique licenses, maintain its own records, and control access to those 
records and the circumstances under which access may be provided. In 
addition, States continue to have full discretion to issue driver's 
licenses that are non-REAL ID compliant, or to issue dual classes of 
compliant and non-compliant cards, which some States are doing. States 
also have full discretion to choose not to issue mDLs at all. The REAL 
ID Act does not prevent compliant States from issuing driver's licenses 
and identification cards where the identity of the applicant cannot be 
assured or for whom lawful presence is not determined. This rule does 
not intend to interfere with existing State laws that are designed to 
protect driver's licensing agency data from being shared and used to 
enforce Federal immigration laws.
    Nothing in this final rule requires a Federal agency to accept 
mDLs. Agencies that choose to do so will receive mDL user information 
only with the individual's consent, and individuals will control access 
and use of the mDL in their mobile devices. For example, in TSA mDL 
testing at airport security checkpoints, passengers present their mDLs 
to TSA, which uses an mDL reader to establish a secure communications 
channel with the passenger's mobile device to receive the passenger's 
mDL data. TSA's mDL readers are programmed to request access only to 
the relevant data needed for identity verification, which TSA cannot 
receive unless the passenger provides consent. Upon consent, the 
passenger's mobile device releases the mDL data to TSA, which 
automatically validates the authenticity of the information by 
confirming the digital signature of the issuing State driver's 
licensing agency (see discussion in Part II.C.1., above). TSA 
emphasizes that it receives passenger data only from the passenger's 
mobile device, and not from the issuing State driver's licensing 
agency. Although TSA does communicate with a driver's licensing agency, 
this is solely to receive the agency's private key for data validation 
purposes--not identity verification. TSA further emphasizes that it 
never communicates with driver's licensing agencies information 
regarding the locations or instances of passengers' mDL use. The 
passenger's PII is used in the same manner that biographic information 
from physical IDs is used. The PII that is collected from the mDL, 
along with the live photo taken by TSA, is overwritten when the next 
passenger scan occurs or when TSA switches off its ID scanner, 
whichever occurs first.
    An mDL offers additional privacy and security benefits over 
physical IDs. An mDL transmits only the necessary information requested 
by TSA, rather than sharing all data elements found on a physical ID, 
and requires user's consent. All mDL data is encrypted at rest, during 
transfer, and during all transactions through secure channels. Nothing 
in this rule mandates that individuals must install a ``government'' 
app or any type of app at all. Nothing in this rule requires 
individuals to use a mobile device of any type, or to choose to receive 
an mDL at all. TSA appreciates the opportunity to provide a detailed 
explanation of the privacy protections conferred by mDLs. Additional 
information can be found in DHS's Privacy Impact Assessment \72\ 
concerning privacy risks in the use of digital IDs in the identity 
verification process at TSA airport security checkpoints.
---------------------------------------------------------------------------

    \72\ See DHS, Privacy Impact Assessment for the Travel Document 
Checker Automation--Digital Identity Technology Pilots, www.dhs.gov/sites/default/files/2022-01/privacy-pia-tsa051-digitalidentitytechnologypilots-january2022_0.pdf (last visited July 
17, 2024).
---------------------------------------------------------------------------

H. Waiver Validity Period and Renewals

    Comments: An industry vendor sought clarification on whether a 
waiver is valid until revoked or for a defined period. An association 
urged that the

[[Page 85359]]

validity period of a waiver should be long enough such that States are 
not frequently submitting applications for renewals and awaiting 
determinations, and that the period should cover both waiver 
applications and State re-certifications. The association further 
submitted that TSA should consider a grace period to allow a waiver to 
remain valid for some period after the Phase 2 rule is effective. A 
State sought clarification of requirements for renewing a waiver if the 
subsequent Phase 2 rulemaking does not commence within 3 years of 
publication of this final rule in order to assess the resources 
required to prepare the renewal application. A vendor sought 
clarification regarding whether a new audit report is required for 
renewal applications if a State uses the same issuance vendors for both 
the initial and renewal applications.
    TSA Response: Under Sec.  37.9(e)(1), a waiver will be valid for 
three years from date of issuance unless suspended or terminated under 
Sec. Sec.  37.9(e)(4) or (5). As discussed in Part III.C.6., above, 
this rule specifies a three-year waiver validity period because it 
aligns with the frequency for States to re-certify compliance with 
Sec.  37.55(b). TSA believes this period is sufficient given the 
expedient timeframes specified in Sec.  37.9(b) for TSA to respond to 
applications. As set forth therein, TSA will provide: an initial 
decision on applications within 60-90 calendar days, replies to States 
responses to notices of insufficiency within 30 calendar days, and 
determinations on petitions for reconsideration within 60 calendar 
days. These timeframes resist the commenter's concern about potentially 
being trapped in an enduring cycle of submitting renewal applications 
and waiting extensive period for TSA responses. Moreover, the three-
year waiver validity period equals the three-year frequency of States 
to recertify compliance required by Sec.  37.55(b), as the commenter 
notes.
    Regarding the timing of the Phase 2 rulemaking and the need for a 
grace period, Sec.  37.9(e)(6) specifies requirements for States that 
seek to renew waivers beyond the validity period. Renewal provides a 
mechanism for waivers to persist independent of the timing of future 
rulemakings, which obviates the need for a grace period.
    With respect to audit reports for renewal applications, TSA 
confirms that States must submit an audit report for renewals, 
regardless of a State's mDL issuance vendors or system changes. 
Regarding the resources required for renewal applications, TSA assumes 
such audit costs for subsequent waiver applications will remain the 
same as the audit for the initial application, but TSA does estimate a 
25 percent to 70 percent reduction in the renewal application cost 
because the State would have gained experience and collected evidence 
from the previously approved waiver application.\73\ The processes to 
renew a waiver are identical to those set forth in Sec.  37.9 for 
initial applications.
---------------------------------------------------------------------------

    \73\ States with an established mDL program will incur a 45-hour 
time burden to complete an mDL waiver reapplication, down from a 60-
hour time burden for the initial mDL waiver application (25 percent 
reduction). States without an established program may experience a 
70 percent reduction in the time to complete a waiver reapplication 
compared to the initial mDL waiver application (from 140 hours to 45 
hours). See Sec.  2.4.1 of the Regulatory Impact Analysis.
---------------------------------------------------------------------------

I. Vendor and Technology ``Lock-in'' Effects

    Comments: Some public interest organizations commented that the 
NPRM would promote a ``lock-in'' effect, in which certain technologies 
and vendors would gain a durable competitive advantage that would be 
difficult for competitors to overcome. In particular, the commenters 
expressed concern that markets for digital wallets and mDL readers are 
likely to be harmed because of the rule's reliance on standards such as 
ISO/IEC 18013-5:2021(E), which the commenters believe create security, 
privacy, and interoperability risks. According to the commenters, 
digital wallets and other necessary mDL technology should be based on 
open standards.
    TSA Response: TSA is currently testing mDLs issued by seven States 
who are partnering with multiple providers of digital wallets. One 
provider, SpruceID, is based on an open-source toolkit for developing 
decentralized IDs.\74\ Additional digital wallet providers are expected 
to enter the market in the near-term, and States are expected to 
partner with them and seek to test their mDLs with TSA. The rule 
provides States broad discretion to select technology vendors of their 
choice, and does not prescribe any specific type of technology. This 
absence of prescriptive requirements is intentional, as it accommodates 
innovation and organic demand from consumers to facilitate 
technological diversity.
---------------------------------------------------------------------------

    \74\ See generally SpruceID, https://spruceid.com/products/issuing-digital-ids (last visited July 17, 2024).
---------------------------------------------------------------------------

    The final rule resists technology lock-in by providing minimum 
standards for security, privacy, and interoperability, while remaining 
technology-agnostic. The ISO/IEC 18013-5:2021(E) standard enables the 
required interoperability for REAL ID use cases where mDL holders 
present their mDLs in person to an mDL reader. Adhering to this 
standard for interoperability does not harm the developers of digital 
wallets or readers because the standard does not prohibit other 
standards or technologies from working alongside the ISO/IEC 18013-
5:2021(E) standard. Indeed, California is pursuing this approach with 
SpruceID. The California mDL digital wallet, built on the open-source 
SpruceID toolkit, supports both ISO/IEC 18013-5:2021(E) requirements 
and an alternative technology, known as TruAge[supreg], which allows 
the mDL to be used in broader transactions, such as age-verified 
purchases.\75\ TSA recognizes that in a broad sense, there may be a 
false ``lock-in'' effect of certain types of mDLs, namely, those that 
meet the waiver application criteria set forth in the rule. However, 
this is not a true lock-in in the traditional sense of economic path 
dependence, in which barriers prevent innovation and deployment of 
equal or potentially superior alternatives. The rule requires States to 
demonstrate that they issue mDLs that provide security, privacy, and 
interoperability necessary for Federal acceptance for official 
purposes, but also allows States and industry wide latitude to innovate 
as necessary to meet the regulatory requirements.
---------------------------------------------------------------------------

    \75\ See State of California Department of Motor Vehicles, 
TruAge Age-Verified Purchasing, https://www.dmv.ca.gov/portal/ca-dmv-wallet/truage/ (last visited July 17, 2024).
---------------------------------------------------------------------------

    As structured, this rule does not create dependencies on specific 
vendors, systems, or technologies. Instead, the rule facilitates 
development of more secure, privacy enhancing, and interoperable mDLs 
using technology-agnostic solutions. Accordingly, this rule resists the 
risk of true technology lock-in that otherwise may have occurred if 
market participants select technologies, developed by first-movers, 
that lack the protections necessary for Federal acceptance for official 
purposes.

J. Pseudonymous Validation and On-Device Biometric Matching

    Comments: An individual urged that it is critical to support 
``pseudonymous validation'' under standard ETSI TR 119 476. In 
addition, the commenter argued that mDL transactions should support 
biometric matching on the mobile device itself to avoid sharing 
biometric data. The commenter claimed these recommendations are 
necessary to avoid becoming ``an autocratic state.''
    TSA Response: ``Pseudonymous validation'' is the concept of using a 
pseudonym or alias to identify an

[[Page 85360]]

individual without revealing that person's true identity. Although this 
may provide valuable privacy protection in some uses, it also enables 
an individual to operate under a consistent--but false--identity. This 
is contrary to the REAL ID Act and regulations' purpose of improving 
the security of State-issued identity cards.
    On-device biometric sharing is the subject of standards ISO/IEC 
23220-5 and ISO/IEC 23220-6, which are currently in development. TSA is 
not aware of any currently published standards enabling the 
establishment of trusted on-device biometric matching in the mDL 
ecosystem, which makes it premature to require such functionality in 
the final rule.

K. Access to Standards

    Comments: A public interest organization contended that the NPRM 
failed to provide adequate access to the 19 standards incorporated by 
reference in the proposed rule. Specifically, the commenter noted that 
under the NPRM, ``the only way'' for the public to gain access was to 
email a request to the address specified in the rule. The commenter 
noted that it sent multiple emails to this address, but never received 
a response. The commenter also noted that the NPRM directed individuals 
to visit ``DHS headquarters in Washington DC'' but did not provide a 
specific address.
    Other public interest organizations asserted that NPRM failed to 
provide reasonable access to ISO/IEC 18013-5:2021(E) without a 
substantial fee. A commenter noted that the ANSI link providing free 
access to the standard was not helpful, and that attempts ``to even 
load the standards on a modern computer failed completely.'' Further, 
the commenter stated that ANSI required ``an unnecessarily onerous 
process,'' which required signing up for an account and completing an 
online license agreement form, and that access was on a view-only 
basis.
    TSA Response: TSA regrets that the commenter's multiple emails 
seeking access were not answered. However, TSA notes that the NPRM 
specified multiple mechanisms for the public to access the standards, 
consistent with IBR requirements specified by the OFR.\76\ All but one 
of the 19 standards incorporated by reference in Sec.  37.4 are 
available to the public for free download, and the NPRM provided the 
website addresses to access each of these documents. In addition, the 
NPRM provided detailed information for the publisher of each of these 
standards, including most, if not all, of the following: publisher 
name, address, phone, email, and website. For the sole standard that is 
not publicly available for free, ISO/IEC 18013-5:2021(E), the NPRM 
facilitated free access via ANSI, a private organization with whom TSA 
has no affiliation. The NPRM specifically noted that ANSI's policy 
required individuals to complete an online license agreement form 
asking for only name, professional affiliation, and email address. The 
NPRM also stated that access would be available on a view-only basis, 
and provided publisher information for individuals who sought a greater 
level of access. TSA received many comments discussing the 19 
standards, demonstrating that the NPRM provided sufficient notice 
regarding access to these standards.
---------------------------------------------------------------------------

    \76\ See 1 CFR 51.5(a); Office of Federal Register, 
Incorporation by Reference Handbook (June 2023, rev'd Aug. 28, 
2023), http://www.archives.gov/federal-register/write/handbook/ibr/ 
(last visited July 17, 2024) [hereinafter ``IBR Handbook''].
---------------------------------------------------------------------------

    Although the NPRM provided sufficient notice to access the 
standards, the final rule modifies access instructions in existing 
Sec.  37.4 to clarify and provide additional means for access. 
Specifically, the final rule replaces DHS with TSA as a location where 
IBR material is available for inspection and provides additional points 
of contact at TSA. The final rule also specifies that certain IBR 
material is available in the Federal Docket Management System at 
https://www.regulations.gov, docket number TSA-2023-0002.

L. Standards and Standards Development Generally

    Comments: Several commenters sought clarification on how TSA would 
update the final rule to reflect evolving industry standards and 
government guidelines. Commenters suggested that instead of 
incorporating by reference a specific version of a document, the rule 
should require compliance with the ``most recent version.'' Some 
commenters requested specificity regarding the process and timeframes 
given to States to conform to any updated standards.
    Other commenters questioned the validity of the standards-
development processes followed by ISO/IEC, AAMVA, and others. 
Commenters asserted that these bodies are secretive, unaccountable to 
the public, have onerous membership criteria, are influenced by foreign 
authoritarian governments, among other deficiencies.
    Some commenters asserted that the documents incorporated by 
reference in Sec.  37.4 of the proposed rule were insufficient because 
they provided only partial requirements to address security and 
operational issues. Commenters also criticized some of the references 
for their absence of protections to address: emerging threats from 
quantum computing, evolving risks from digital identification, outdated 
encryption algorithms, and digital wallet design, user experience, 
among other deficiencies.
    TSA Response: Under applicable legal requirements, Federal agencies 
must seek approval from the OFR for a specific version, edition, or 
date of a publication that an agency seeks to IBR in a final rule.\77\ 
Revisions or updates to a publication already IBR'd in a final rule 
require re-approval from the OFR, and rules therefore do not update 
``dynamically'' to reflect future versions.\78\ Therefore, the rule 
cannot exclude publication version or date information, or update 
dynamically to reflect future versions. States will be expected to 
comply with the standards as published in the final rule. TSA actively 
monitors evolving standards and guidelines, and may consider whether to 
IBR those publications (pending review of the final documents) through 
subsequent rulemaking.
---------------------------------------------------------------------------

    \77\ See 1 CFR 51.5(b) & 51.9; IBR Handbook, http://www.archives.gov/federal-register/write/handbook/ibr/.
    \78\ See IBR Handbook, http://www.archives.gov/federal-register/write/handbook/ibr/.
---------------------------------------------------------------------------

    Regarding criticisms of standards-development bodies and their 
deliberations generally, the standards development process for 
international technology standards, particularly those intended to be 
interoperable globally, is developed by membership-based bodies 
comprised of interested parties representing participants from 
international governmental entities, educational organizations, 
research groups, non-profit organizations, commercial entities, and the 
public at large. Each standards-development organization sets its own 
criteria for membership, fees, standards development processes, and 
publication structure.
    With respect to the criticism that the chosen standards and 
guidelines provide insufficient protections and lack future-proofing to 
address unknown threats, TSA notes that due to the nature of innovation 
and evolving technology, and legal constraints of Federal rulemaking, 
it is not possible to develop ``future-proofed'' regulations. TSA 
acknowledged in the NPRM that this is a nascent market experiencing 
rapid innovation, and that many key standards and guidelines are 
currently being developed. Although imperfect, the chosen standards 
reflect industry

[[Page 85361]]

state-of-the-art ahead of publication of emerging standards that likely 
will support the subsequent Phase 2 rulemaking. TSA made a risk-based 
determination that the 19 standards provide the key security, privacy, 
and interoperability requirements necessary for trusted Federal 
acceptance, and are commensurate with existing REAL ID standards for 
physical cards. The two-phased rulemaking approach is intended to 
address the near-term need for established security, privacy, and 
interoperability requirements, while accommodating the medium-term 
evolution of technology and standardization.
    With respect to comments regarding specific deficiencies in some of 
the chosen standards, TSA offers the following responses. TSA 
acknowledges that ISO/IEC 18013-5:2021(E) was developed broadly for 
international consumption and does not fully address the needs for REAL 
ID use cases in the U.S. The waiver application criteria set forth in 
Sec.  37.10(a), therefore, adapt ISO/IEC 18013-5:2021(E) for REAL ID 
use cases by supplementing this standard with requirements from other 
references as set forth in this rule. For example, Sec. Sec.  
37.10(a)(1) and (a)(3) address the provisioning and privacy 
requirements not covered by ISO/IEC 18013-5:2021(E). Other issues 
relevant to mDL transactions that are not addressed in ISO/IEC 18013-
5:2021(E), such as device user experience and digital wallet design are 
beyond the scope of this rule and intentionally omitted.

M. TSA's Identity Verification Policies

    Comments: A public interest organization raised questions regarding 
TSA's identity verification policies at the screening checkpoint.
    TSA Response: This rulemaking is focused on allowing Federal 
agencies to accept mDLs for Federal official purposes as defined by the 
REAL ID Act. Issues regarding TSA's identify verification processes 
unrelated to mDLs are beyond the scope of this rulemaking.:

N. Paperwork Reduction Act

    Comments: A public interest organization argued that every mDL 
transaction with a Federal agency is a collection of information 
subject to the Paperwork Reduction Act (PRA), and that no exemptions 
apply. The organization further contended that because neither TSA nor 
any other Federal agency has sought approval from the Office of 
Management and Budget (OMB) for these collections, any use of mDLs 
violates the PRA. Without an approved information collection, the 
commenter noted that it is not able to determine the costs or purposes 
of this information collection.
    TSA Response: TSA disagrees with the commenter's assertion that 
every mDL transaction with a Federal agency is a collection of 
information subject to the PRA because a request for identify 
verification is not the ``soliciting . . . of facts or opinions . . . 
calling for . . . answers to identical questions.'' 44 U.S.C. 3502(3) 
(defining ``collection of information''); cf. 5 CFR 1320.3(h)(1) 
(excepting from the definition information affirmations or 
certifications that ``entail no burden other than that necessary to 
identify the respondent''). This final rule establishes a process for 
States to apply to TSA for a temporary waiver that enables Federal 
agencies to accept mDLs issued by those States when REAL ID enforcement 
begins on May 7, 2025. This rule does not, however, require any mDL 
transactions with a Federal agency or set requirements for the use of 
mDL information. Therefore, this comment is beyond the scope of this 
rulemaking.

O. Legal Authority

    Comments: A public interest organization questioned the legality of 
DHS's delegation of authority to TSA to administer the REAL ID program 
because the public was deprived of an opportunity to comment on it. The 
commenter further argued that it is improper for TSA, a transportation-
focused agency, to regulate use of mDLs by other Federal agencies for 
non-transportation uses.
    Other public interest organizations posited that neither the REAL 
ID Act, nor subsequent amendments in the REAL ID Modernization Act, 
authorize issuance of the waiver as set forth in the NPRM. The 
commenters argued that DHS is statutorily authorized only to prescribe 
standards, certify State compliance, and extend time to facilitate 
compliance, and the implementing regulations prevent DHS from waiving 
any mandatory minimum standards.
    TSA Response: Generally, Federal agencies' delegations of duties 
and authority are exempt from notice-and-comment requirements of the 
Administrative Procedure Act because they are matters of ``agency 
management'' and ``rules of agency organization, procedure or 
practice.'' \79\ Matters involving internal agency organization, 
procedure, practice, and delegations of duties and authority are 
directed primarily towards improving the efficiency and effectiveness 
of agency operations, and therefore are not required to be posted for 
public comment. DHS's delegation of authority to TSA to administer the 
REAL ID program falls within this exemption, obviating the need for 
public comment.
---------------------------------------------------------------------------

    \79\ 5 U.S.C. 553(a)(2), (b)(A).
---------------------------------------------------------------------------

    TSA further clarifies that the REAL ID Act, as amended, authorizes 
the Secretary to promulgate regulations to implement the requirements 
under the REAL ID Act.\80\ And the REAL ID Modernization Act amended 
the definitions of ``driver's license'' and ``identification card'' to 
specifically include mDLs that have been issued in accordance with 
regulations prescribed by the Secretary of Homeland Security.\81\ TSA 
is adopting the waiver process established in this final rule pursuant 
to its authority to implement the requirements of the REAL ID Act as 
amended, and the final rule is consistent with all statutory 
requirements.'' The waiver application criteria specify issuance-
related security and privacy requirements that are commensurate with 
requirements for physical cards. The final rule further provides that 
these are temporary requirements that will be superseded by a 
subsequent rulemaking setting forth more comprehensive requirements 
after emerging industry standards are published over the next few 
years.
---------------------------------------------------------------------------

    \80\ Sec. 205 of the REAL ID Act.
    \81\ Sec. 1001 of the REAL ID Modernization Act, 134 Stat. 2304.
---------------------------------------------------------------------------

P. Economic Impact Analysis

1. Alternatives
    Comments: Several commenters, including a State, associations, and 
an individual, commented on various aspects of the assessment regarding 
the costs and benefits of available regulatory alternatives.\82\ Some 
commenters recommended that TSA should accept Alternatives 1, 3, or 4 
compared to the proposed rule. The commenter recommending acceptance of 
Alternative 1 stated the proposed rule does not address the market 
failures associated with a lack of common standards, such as increased 
complexity of mDL use across States, and may result in larger costs in 
the long run when formal mDL standards are finalized. The commenter 
supporting Alternative 3 recommended that TSA promulgate comprehensive 
mDL regulations that enable States to develop and issue REAL ID-
compliant mDLs, as well as a process for Federal agencies to accept 
them. The commenter recommending acceptance of Alternative 4 stated it 
would eliminate the time and expense required to

[[Page 85362]]

prepare and submit a waiver application and audit report, and another 
commenter sought clarification on how the scope of Alternative 4 
differs from the proposed rule.
---------------------------------------------------------------------------

    \82\ See NPRM, 88 FR at 60079-80.
---------------------------------------------------------------------------

    TSA Response: Regarding Alternative 1, TSA reiterates that this 
rule establishes requirements for States to issue mDLs that provide 
specified levels of security, privacy, and interoperability, which 
provides guidance and direction for State mDL issuance systems and 
reduces the complexity of mDL use across different jurisdictions. The 
mDL waiver application criteria would likely form the foundation of the 
more comprehensive requirements in the Phase 2 rulemaking. While States 
may have to incur cost to alter their mDL programs when more 
comprehensive requirements are issued, they are less likely to have to 
make significant changes and incur larger costs under this rule than 
under Alternative 1.
    The final rule provides benefits to States and mDL users. The 
waiver process will allow the continued use of mDLs for official 
purposes when REAL ID enforcement begins on May 7, 2025. An mDL is more 
secure than a physical card, affords users privacy controls over the 
information transmitted to the relying party, and enables contact-free 
transactions. TSA does not believe the waiver process delays 
development of industry standards and Federal guidelines. Many such 
standards and guidelines are in development that would inform 
requirements in the Phase 2 rulemaking, and this final rule will 
facilitate, not impede, this process. For these reasons, TSA recommends 
the final rule over Alternative 1.
    Regarding Alternative 3, TSA believes it is premature to promulgate 
comprehensive mDL regulations, given that several important industry 
standards and Federal guidelines are in development and would likely 
inform future requirements in the Phase 2 rulemaking, such as 
requirements related to mDL provisioning. Until the subsequent 
rulemaking is published, this final rule sets requirements based on 
current, available industry standards and guidelines that serve as a 
basis for, and bridge towards, more comprehensive requirements.
    Alternative 4 would establish interim minimum requirements, similar 
to the waiver application criteria, for States to issue REAL ID 
compliant mDLs instead of a wavier process that enables Federal 
agencies to accept mDLs from States that meet the waiver criteria. TSA 
clarifies that Alternative 4 would largely convert the waiver 
application criteria to requirements for the issuance of REAL ID-
compliant mDLs. If States could meet those requirements, under 
Alternative 4, States' mDLs would be deemed REAL ID compliant. In 
contrast, the final rule, through the waiver process, enables Federal 
agencies to accept for official purposes States' mDLs that meet the 
waiver criteria.
    As discussed further in Part VI.A.4., below, TSA rejects this 
alternative because it effectively would codify standards that may 
become obsolete in the near future, thereby implying a degree of 
certainty that TSA believes is premature given emerging standards that 
are still in development. Although Alternative 4 eliminates the waiver 
process, TSA would continue to require a mechanism to validate that a 
State's mDLs complies with the established standards under Alternative 
4. Thus, States would still need to provide information to TSA similar 
to the waiver process, including audit reports, to demonstrate 
compliance with the requirements. TSA believes the time and expense to 
provide such information under Alternative 4 would be similar to the 
waiver process under the final rule, and a waiver process provides more 
flexibility and allows States and TSA to gain insight and experience in 
the mDL environment.
2. Familiarization and Training Costs
    Comments: A vendor recommended inclusion in Table 2 of the NPRM 
(Total Costs of the Rule to States) of States' Familiarization Cost in 
years 2-5 to reflect evolving standards, and a similar inclusion in 
Table 3 (Total Cost of the Rule to DHS) for DHS, but did not provide 
any cost estimates.\83\ The vendor further recommended inclusion of 
States' training or continuing education costs in Table 2, which the 
vendor believes should be similar to DHS's training costs set forth in 
Table 3 ($5 million over 10 years). The commenter also requested 
clarification of the definition of training costs in Table 3, and 
whether it includes State training related to certificate systems and 
record maintenance.
---------------------------------------------------------------------------

    \83\ See NPRM, 88 FR at 60074-76.
---------------------------------------------------------------------------

    An association posited that the economic analysis did not address 
TSA's costs, training requirements, and process changes to adapt to an 
mDL system.
    TSA Response: TSA does not believe a State's familiarization or 
training cost estimates require modification. The familiarization cost 
estimate represents the cost and time burden for States to review the 
final rule. All State driver's licensing agencies would incur this cost 
in the first year after the publication of the rule. Although 
familiarization costs do not include time spent reviewing new 
standards, the NPRM does discuss, qualitatively, potential State costs 
to monitor and study mDL technology as it evolves including standards 
development and other relevant factors. TSA did not receive any cost 
estimates related to reviewing new standards.
    The training costs in Table 3 relate to costs TSA would incur to 
train Transportation Security Officers (TSOs) to verify mDLs for 
identification purposes at airport security checkpoints. As such, 
States would not incur similar costs of roughly $5 million for such 
training. TSA is unclear as to the type of or specific training or 
continuing education the commenter refers and what may be needed in the 
future. However, for clarification, any such training and 
certifications have been added to the qualitative discussion of 
potential additional State costs (section 3.1.5 of the RIA).
    TSA believes the costs related to training and process changes to 
adapt to an mDL system are accounted for and quantified where 
available. TSA quantifies the costs for TSOs to undertake training to 
verify mDLs for identification purposes at the security checkpoint, and 
for additional clarity, TSA has also added the cost to TSA to provide 
such training for TSOs. TSA also quantifies the costs related to the 
equipment that must be acquired to integrate the use of mDLs for 
identity verification in section 2.6 of the RIA. In addition, TSA added 
a qualitative discussion in the economic analysis (section 3.2.5) 
regarding costs TSA may incur related to process changes to adapt to an 
mDL system, such as changes to standard operating procedures and 
informational campaigns.
3. Estimated Time To Complete Waiver Applications; Estimated Costs for 
mDL Readers
    Comments: An industry vendor recommended increasing the estimated 
time to complete waiver applications from 20 hours, as set forth in the 
NPRM, to 80 hours, and increasing the estimated cost for mDL readers by 
35 percent, for both DHS and other Relying Parties.
    TSA Response: TSA clarifies that the total time burden to complete 
a waiver application does not require modification because the estimate 
includes two components: (1) the time to complete the application and 
provide the information required under Sec.  37.10(a), and (2) the time 
to gather all supporting documentation. TSA estimates completing the 
application

[[Page 85363]]

will require an average of 20 hours. Separately, the time burden 
estimate for gathering supporting documentation can range from 40 to 
120 hours. TSA estimates States with existing mDL solutions (15 States) 
will require a total of 40 hours, while States considering mDLs but 
lacking mDL solutions (25 States) will require a total 120 hours for 
their initial waiver application submission. Thus, TSA estimates an 
average time burden of 110 hours to complete a waiver application, by 
adding the time to complete application materials (20 hours) and a 
weighted average time to gather supporting documentation (90 
hours).\84\ TSA also estimates States will incur an average time burden 
of 47.5 hours to complete a waiver resubmission, which is separate from 
the initial waiver application. See Section 2.4 of the Regulatory 
Impact Analysis (RIA) for additional details.
---------------------------------------------------------------------------

    \84\ Weighted average time to gathering supporting documentation 
of 90 hours = ((15 States x 40 hours) + (25 States x 120 hours)) / 
(15 States + 25 States).
---------------------------------------------------------------------------

    The cost of mDL readers is uncertain given evolving technology, and 
could vary up or down by 35 percent compared to TSA's current estimate. 
For example, within TSA specifically, TSA may integrate mDL readers in 
existing infrastructure, and TSA's costs are different than other 
relying parties (other Federal agencies that choose to accept mDLs for 
official purposes). For TSA mDL reader costs, TSA structures its 
estimate around internal data on actual procurement to quantify the 
cost of its mDL reader equipment, which also includes the cost of 
quarterly updates. Given the uncertainty of mDL reader costs, the final 
rule expands the range of possible reader costs for relying parties up 
and down by the comment suggested 35 percent of the TSA internal 
estimate which results in a range of about $260 to $540 with a midpoint 
of $400. While TSA does not change its primary estimate based on the 
estimated cost of a smartphone which is assumed to be used in 
combination with an application to serve as the mDL reader, it does 
recognize that such costs could range from $2.1 million to $4.4 million 
over 10 years.\85\
---------------------------------------------------------------------------

    \85\ DHS multiplies the total number of mDL readers relying 
parties will procure over 10 years of 8,174.9 (Table 2-11: Relying 
Party mDL Reader Procurement in the Final Regulatory Impact 
Analysis) by a low mDL reader cost of $261.30 and high mDL reader 
cost of $542.70.
---------------------------------------------------------------------------

4. Cost-Benefit Analysis Generally
    Comments: A public interest organization suggested that the cost-
benefit analysis was hastily prepared and speculative.
    TSA Response: TSA recognizes mDLs are an emerging market with 
uncertain costs and benefits. Nonetheless, TSA quantifies costs where 
it is able to with the best available data along with assumptions, 
proxies, and subject matter expert estimates, and TSA discusses 
potential additional costs qualitatively where TSA was unable to 
quantify the costs. TSA observes that the commenter did not offer 
specific recommendations to improve estimates of future costs, urging 
only that TSA should delay this rulemaking in light of the uncertainty. 
However, TSA believes there may be additional costs to stakeholders by 
delaying the rule. For example, mDL users would not be able to use mDLs 
for official purposes when full enforcement of REAL ID begins on May 7, 
2025, which would delay or deny realization of the security, privacy, 
convenience, and contact-free hygiene benefits mDLs. States and 
industry would risk continued investments based on non-standardized 
processes that lack the security, privacy, and interoperability 
necessary for Federal acceptance for official purposes. Federal 
agencies would be delayed in realizing the security and privacy 
benefits conferred by mDLs compared to physical cards. In addition, 
through continued and increased mDL usage enabled by this final rule, 
TSA will gain insight and data that could better inform costs and 
benefits of the Phase 2 rulemaking.

Q. Communicating Status of Waiver; System Disruptions

    Comments: Some commenters sought clarification on how the status of 
a waiver, specifically, suspensions and terminations, would be 
communicated to Federal agencies. Another commenter asked whether TSA 
would provide support mechanisms to communicate information about 
system disruptions that could impact mDL acceptance by Federal 
agencies.
    TSA Response: As provided in Sec. Sec.  37.9(b)(1), (e)(4)(iii), 
and (e)(5)(iii), TSA will publish, at www.tsa.gov/real-id/mDL, a list 
of States that hold valid waivers, including updates to note any final 
suspensions and terminations. As required by Sec.  37.8, any Federal 
agency that elects to accept, for REAL ID official purposes, mDLs 
issued by States with a waiver must regularly review the specified 
website to confirm that a State holds a valid waiver. Suspensions and 
terminations will occur only for the violations specified in Sec.  
37.9(e), which TSA anticipates will be rare instances.
    Regarding support mechanisms for system outages and other 
disruptions to mDL acceptance, each Federal agency that elects to 
accept mDLs for official purposes will be responsible for maintaining 
and supporting its mDL acceptance infrastructure. With respect to 
Federal agency access to the State mDL waiver list at www.tsa.gov/real-id/mDL, DHS and TSA IT systems already provide the necessary level of 
support to reduce the risk of widespread impacts from a temporary 
system outage. To further reduce risk of potential disruptions, TSA 
strongly encourages all mDL holders to carry their physical REAL ID 
cards in addition to their mDLs.

R. Impact of Waiver on States Currently Testing mDLs With TSA

    Comments: A State that is currently testing mDLs with TSA sought 
clarification regarding the extent to which the waiver application 
criteria align with or differ from terms in the TSA-State testing 
agreement. The State sought this comparison to assess the amount of 
additional resources that the State may require to meet the waiver 
criteria.
    TSA Response: Due to confidentiality provisions in TSA's contracts 
with States, TSA cannot publicly disclose the terms of such agreements 
or compare any differences with the waiver application criteria. 
However, to assist any States who have entered into such agreements 
with TSA, the agency encourages such States to contact TSA for further 
discussions. All States are subject to the requirements of this rule to 
obtain a waiver, and TSA intends to work with States that are testing 
mDLs with TSA to help ensure a smooth transition.
    Regarding concerns about the time and resources necessary to 
successfully apply for a waiver, TSA estimates the 10-year cost to all 
States seeking a waiver is approximately $814 million. On a per-State 
basis, TSA estimates the average cost to complete a waiver application 
is approximately $40,000 (this includes the cost to complete the 
initial application and resubmission; see Table 2-8 in the RIA), and 
the average cost to comply with the application criteria $3.13 million 
in the initial year of a State's application (as discussed in Section 
2.5 of the RIA).

S. Notice for Changes to mDL Issuance Processes

    Comments: A State requested clarification regarding whether Sec.  
37.9(e)(2) requires States to provide 60 calendar days' advance notice 
before adding a new digital wallet provider.
    TSA Response: In some circumstances, the addition of a new digital 
wallet provider may trigger the

[[Page 85364]]

requirement under Sec.  37.9(e)(2) to provide notice to TSA, depending 
on the extent of the changes required to the State's mDL issuance 
processes. This is especially true as more standards are developed in 
the area of mDL provisioning. Although States are responsible for 
assessing if any changes are significant and trigger the reporting 
requirements, TSA recognizes that it is not possible to define precise 
circumstances that require, or do not require, reporting. To assist 
States in determining whether changes in their specific circumstances 
warrant notification under Sec.  37.9(e)(2), the final rule revises 
this section by adding the following sentence at the end: ``If a State 
is uncertain whether its particular changes require reporting, the 
State should contact TSA as directed at www.tsa.gov/real-id/mDL.'' TSA 
will collaborate with States to facilitate a determination of whether 
reporting is required. TSA appreciates this opportunity to provide 
clarity and reduce potential burdens on the entities directly regulated 
by this final rule.

T. Clarification Regarding ``Days''

    Comments: A vendor requested clarification whether Sec.  37.9(b) of 
the NPRM, under which TSA would provide decisions on waiver 
applications ``within 60 days'' and ``in no event longer than 90 
days,'' means ``calendar days'' or ``business days.''
    TSA Response: TSA clarifies that all references in this rulemaking 
to ``days'' means calendar days, not business days. The final rule 
revises the following NPRM provisions to implement this clarification: 
Sec. Sec.  37.9(b), (c) & (e), and Appendix A, paragraph 6.3.

U. Audit Requirements

    1. Questionable Necessity; Excessive Costs; Alternatives to 
Independent Auditor
    Comments: An association recommended that the requirement for an 
independent, third-party audit was unnecessary and should be optional, 
not mandatory, and further suggested that an audit could be a 
substantiating element together with any self-certification that a 
State already presents to TSA under REAL ID requirements. Another 
commenter posited that an audit (and the waiver application process) is 
extraneous for States that have invested in mDLs and entered into 
testing agreements with TSA. Several States and an association 
expressed concerns about the costs of, and need for, an independent 
evaluator, noting the timing of budgetary requests and varying ability 
among States to afford the costs.
    Some commenters recommended alternatives to independent auditors, 
including internal State-conducted audits, an audit conducted in 
conformity with the AAMVA Digital Trust Service (DTS), and processes in 
lieu of audits entirely. Another commenter recommended specifying 
detailed criteria, based on a set of established industry requirements 
and/or guidelines, along with relevant Root Program or industry 
policies, against which auditors would perform an assessment.
    TSA Response: TSA clarifies that the term ``independent entity'' in 
Sec.  37.10(b)(1) is intended to include entities that are employed or 
contracted by a State and independent of the State's driver's licensing 
agency. This final rule revises the proposed Sec.  37.10(b)(1) to 
include this clarification.
    TSA disagrees that an independent audit is unnecessary or of 
questionable importance. The purpose of the audit is to validate the 
accuracy of the information that a State provides to TSA in support of 
its application for a waiver. This validation ensures TSA has correct 
information to efficiently evaluate the sufficiency of a State's 
application. TSA believes an independent auditor that meets the 
requirements of Sec.  37.10(b) can provide a defensible level of 
accuracy that cannot be achieved via other means, such as a self-
certification.
    TSA also disagrees that costs for independent audits will be 
excessive. As discussed in section 2.4.1 of the RIA, TSA estimates the 
audit cost range is between $5,000 and $60,000 on a per-State basis.
    TSA disagrees that an audit conducted in conformity with 
requirements for a State to participate in AAMVA's DTS is an acceptable 
alternative to the audit requirements specified in this rule. The 
requirements imposed on States to participate in the AAMVA DTS are not 
identical to the requirements imposed in this rule. In particular, the 
AAMVA DTS requirements lack the specific cybersecurity risk control 
requirements addressed in Sec.  37.10(a)(2) to establish public trust 
in States' mDL issuance systems. Finally, establishing specific audit 
criteria may be the subject of the upcoming Phase 2 rulemaking that 
will set forth detailed requirements that would enable States to issue 
mDLs that comply with the REAL ID Act.
2. Auditor Qualifications
    Comments: One association recommended that the rule should allow an 
auditor with credentials that are more closely aligned to certification 
of systems management, ethics, and business practice. Alternatively, 
the commenter recommended that instead of requiring any specific 
license, the rule should only require that the name of the auditor be 
listed.
    TSA Response: Regarding auditor qualifications, the requirement in 
Sec.  37.10(b) that auditor must hold a Certified Public Accountant 
(CPA) license provides the necessary duty of care to report accurately 
and truthfully in the State in which the audit occurs, and TSA has not 
identified any suitable alternatives. TSA understands that auditors 
experienced in certification of systems management, ethics, and 
business practice are not an equivalent substitute to auditors who are 
CPAs, who possess additional qualifications as specified through their 
Certified Information Technology Professional credential. Similarly, 
merely listing the name of the auditor is not sufficient. The 
certification requirements in Sec.  37.10(b) are common in auditing 
technical and information systems and provide proof of expertise.

V. Appendix A to Subpart A: mDL Issuance Requirements

1. Compliance With Full Reference or Specific Provisions
    Comments: An association noted that some Appendix A provisions 
require full compliance with the cited references instead of specific 
parts of those references. For illustration, the association provided 
some non-exhaustive examples, including the CA/Browser Forum's Baseline 
Requirements for the Issuance and Management of Publicly-Trusted 
Certificates and Network and Certificate System Security Requirements. 
The association and another commenter requested specifying pertinent 
parts of the cited references that are applicable to compliance with 
requirements in this rule.
    TSA Response: TSA agrees that the agency can provide paragraph or 
section numbers for some of the references cited in Appendix A to aid 
in understanding which parts of the references require compliance. TSA 
made the following technical corrections in the final rule:
     In Appendix A, paragraph 1.1, the CA/Browser Forum 
Baseline Requirements for the Issuance and Management of Publicly-
Trusted Certificates were qualified with the addition of the following 
identifiers: sections 2, 4.3, 4.9, 5, and 6. TSA also qualified ISO/IEC 
18013-5:2021(E) with the addition of Annex B to provide guidance on 
requirements for a certificate policy and to clarify its

[[Page 85365]]

applicability. Compliance with ISO/IEC 18013-5:2021(E) Annex B is 
already required by Sec.  37.10(a)(4), and inclusion here reduces 
burden by providing States greater specificity on certificate profiles 
to include in their mDL certificate policy. For NIST SP 800-57, Part 1, 
Rev. 5, the final rule adds qualifications for sections 3 and 5-8. For 
NIST SP 800-57, Part 3, Rev. 1, the final rule adds qualifications for 
sections 2-4 and 8-9.
     In Appendix A, paragraph 2.13, the final rule adds a 
qualification to section 4.2 of NIST SP 800-63B to provide further 
clarity on the specific requirements for AAL2 authenticators.
    Regarding the CA/Browser Forum Network and Certificate System 
Security Requirements document, the final rule requires full compliance 
with this document because these requirements define a minimum set of 
security controls to establish publicly trusted certificate systems. 
This model has proven successful as the basis for securing the 
certificate systems used to secure the global internet.
2. Paragraph 2.2: Changing Authentication Keys and Passwords
    Comments: An association commented that the terms ``privileged 
account'' and ``service account'' in this paragraph are undefined.
    TSA Response: The terms ``privileged account'' and ``service 
account'' fall under the definition of ``trusted role'' in Sec.  37.3. 
Accordingly, the final rule has revised proposed Appendix A, paragraph 
2.2, to replace ``privileged account'' and ``service account'' with 
``trusted role.'' TSA appreciates the feedback and the opportunity to 
provide this clarification.
3. Paragraphs 2.11-2.14: Multifactor Authentication
    Comments: An association requested clarification as to whether the 
Multifactor Authentication (MFA) required by paragraphs 2.11-2.14 of 
Appendix A is PKI-based or crypto-based phishing-resistant MFA.
    TSA Response: Appendix A, paragraphs 2.11-2.14, do not require PKI-
based or crypto-based phishing resistant MFA. While phishing resistant 
cryptographic authenticators are a best practice to achieve the highest 
level of assurance for multi-factor authentication, for the purposes of 
demonstrating compliance with Appendix A requirements in paragraphs 
2.11-2.14, MFA is achievable through a combination of technologies and 
methods covered by NIST SP 800-63B section 4.2. TSA believes this 
approach optimally balances mitigation of risks associated with access 
to certificate systems with costs of implementation.
4. Paragraph 3: Facility, Management, and Operational Controls
    Comments: An industry vendor questioned whether the requirements in 
paragraph 3 of Appendix A mean that only U.S. citizens or lawful 
permanent residents are qualified to be authorized personnel who can 
access such systems. The commenter sought further clarification on 
whether the specified controls apply to ``as a service'' offerings on 
www.GovCloud.com.
    TSA Response: TSA clarifies that Appendix A, paragraph 3.3, does 
not require that only U.S. citizens or lawful permanent residents can 
serve as personnel authorized to access state certificate systems. This 
provision requires States to specify the controls for employees, 
contractors, and delegated third parties, including any cloud service 
providers, necessary to prevent risks posed by foreign ownership, 
control, or influence. Regarding applicability to other cloud-based 
services, this provision also requires States to specify the security 
controls for all ``as-a-service'' providers, who are considered to be 
delegated third parties.
5. Paragraph 4: Personnel Security
a. Background Checks
    Comments: A commenter sought clarification regarding whether this 
section requires a Federal fingerprint background check, State 
fingerprint background check, or other non-fingerprint based background 
check.
    TSA Response: Appendix A, paragraph 4, does not specify any 
particular types of screening procedures. Instead, States are 
responsible for specifying screening procedures for employees, 
contractors, and delegated third parties in trusted roles. Title 6 CFR 
37.45 specifies requirements for background checks and applies to 
covered employees, and this final rule does not alter those 
requirements.
b. Paragraph 4.1: Coordination Among States; Applicable Laws
    Comments: A commenter sought clarification regarding how 
``coordination among State entities'' applies to a policy to control 
security risks from insider threats. The commenter sought further 
clarification of the requirement in this paragraph that a State's 
policy must comply with ``all applicable laws, executive orders, 
directives, regulations, policies, standards, and guidelines.''
    TSA Response: TSA clarifies that under Appendix A, paragraph 4.1, 
the term ``State entities'' refers to the agencies and offices that 
comprise the State's governmental operations. Coordination among State 
entities is intrastate for the purposes of State-run insider threat 
programs, not interstate coordination among different States. TSA 
believes that States are likely familiar, from decades of experience 
issuing physical driver's licenses under the requirements of Sec.  
37.45, as well as familiarity with other State-specific information and 
security laws, with the applicable legal requirements governing 
policies to address risks from insider threats, many of which are 
State-specific.
c. Timeframe To Disable System Access; Cybersecurity Incident Reporting
    Comments: A State commented that Appendix A, paragraph 4.5, which 
requires a State to disable an employee's system access within 4 hours 
of the employee's termination, conflicts with Appendix A, paragraph 
8.6, which requires States to provide notice to TSA within 72 hours 
after discovery of a cyber incident. The State recommends that time 
periods in both sections be amended to 24 hours, urging that disabling 
an employee's system access within 4 hours of termination is overly 
aggressive in situations where termination is amicable, such as 
retirements or transfers.
    TSA Response: TSA maintains that a 4-hour requirement to disable 
system access, as set forth in Appendix A, paragraph 4.5, is essential 
in all termination situations. A coordinated and prompt surrender of 
logical and physical access for all departing employees is a critical 
component of a program to address insider threats. It is highly 
unlikely that a State would allow employees to have physical access to 
buildings or other infrastructure after termination. Disabling access 
to logical systems is as critical as requiring the surrender of keys 
and media providing physical access. When an employee is terminated for 
misconduct or other exigent circumstances that could compromise 
security, timely denial of system access is critical. Although amicable 
termination situations may present fewer security risks, States have 
sufficient time, in these circumstances, to pre-plan for the prompt 
disabling of system access before the employee's final day, similar to 
how States pre-plan the recovery of any physical keys or key cards for 
building access.
    TSA further maintains that the proposed requirement for States to 
report cybersecurity incidents within 72

[[Page 85366]]

hours of discovery, as set forth in Appendix A, paragraph 8.6, is 
appropriate, and TSA therefore declines the recommendation to shorten 
the timeframe to 24 hours. While TSA has established in other contexts 
outside of this rulemaking a shorter timeframe for reporting by certain 
transportation owners or operators, that timeframe reflects the 
potential impact of cybersecurity incidents that could jeopardize the 
safety of individuals and property. In that context, early reporting is 
critical to ensure the ongoing availability of critical operational 
capabilities. Here, in contrast, the requirement for reports to be made 
within no more than 72 hours is appropriate given TSA's assessment of 
the operational impact of a cybersecurity incident on a State's mDL 
issuance infrastructure. In addition, the 72-hour requirement is 
consistent with the timeframe required for the rulemaking by CISA under 
the Cyber Incident Reporting for Critical Infrastructure Act of 
2022.\86\ The 72-hour reporting requirement supports the policy 
objective of regulatory harmonization, to the greatest extent possible.
---------------------------------------------------------------------------

    \86\ Public Law 117-103, Div. Y (2022) (as codified at 6 U.S.C. 
681-681g).
---------------------------------------------------------------------------

    In light of the comments, TSA also seeks to provide greater clarity 
regarding the types of incidents that must be reported, and the 
mechanics of reporting. Accordingly, this final rule makes several 
clarifying edits to Appendix A, paragraph 8.6. First, the final rule 
modifies the requirement for reporting ``a significant cyber incident 
or breach'' to ``any reportable cybersecurity incident, as defined in 
the TSA Cybersecurity Lexicon available at www.tsa.gov.'' This 
modification provides greater certainty and assurance regarding events 
that would trigger reporting. Second, the final rule modifies the 
requirement for reporting ``within 72 hours'' to ``within no more than 
72 hours'' to encourage more timely reporting, as recommended by a 
commenter. Third, the final rule modifies the requirement that 
regulated entities ``provide written notice to TSA'' at the specified 
website, to requiring that ``[r]eports must be made as directed'' at 
that website, which clarifies that the website will include information 
concerning the format or content of the report. Finally, the final rule 
adds a provision that reports may contain SSI, and if so, would be 
subject to requirements of 49 CFR part 1520. TSA made similar edits to 
a requirement concerning Federal agency reporting, Sec.  37.8(d), to 
add that reports must be made to TSA ``as directed'' at the specified 
website, and that reports may be subject to the requirements of 49 CFR 
part 1520 if they contain SSI. The SSI protection provisions were not 
proposed in the NPRM and were added in response to public comments, 
discussed below in Part IV.W., below.
d. Paragraph 4.7: Training for Personnel Performing Certificate Systems 
Duties
    Comments: A commenter sought clarification on whether training item 
2 in paragraph 4.7 of Appendix A, which concerns authentication and 
vetting, applies to States that issue certificates to other entities as 
described in the CA/Browser Forum Baseline Requirements for the 
Issuance and Management of Publicly-Trusted Certificates. The commenter 
believes that this training is not applicable because in the mDL 
context, States do not issue document signer certificates to anyone 
beyond the State.
    TSA Response: TSA appreciates the commenter's perspective, but 
notes that the training required under Appendix A, paragraph 4.7, is 
essential for State personnel in executing their duties regarding 
certificate systems. Although it is correct that States do not issue 
document signer certificates to other States, States issue document 
signer certificates to support their own mDLs, namely, to sign and 
establish public trust. In particular, training on authentication and 
vetting processes for employees, contractors, and other delegated third 
parties is a critical component of a well-developed insider threat 
program because each employee will be aware of the processes for 
employment and will be aided in identifying potential suspicious 
activity.
6. Paragraph 5.4: Hardware Security Modules (HSMs)
    Comments: A commenter sought clarification as to whether the term 
``dedicated hardware security modules'' in paragraph 5.4 of Appendix A 
requires HSMs to be dedicated to root certificate private keys and/or 
dedicated only to the issuing State. The commenter also asked whether 
this requirement excludes the use of an HSM that physically supports 
multiple States, but is partitioned into segments controlled by 
individual States.
    TSA Response: Under Appendix A, paragraph 5.4, the term 
``dedicated'' means that a State must use one HSM solely for IACA root 
private key functions and no other functions within the State's 
certificate system. TSA clarifies that Appendix A, paragraph 5.6, 
requires a State to use a separate HSM for document signer private key 
functions, but this HSM does not have to be ``dedicated'' solely to 
that function and may be used to support additional functions within 
the State's certificate system. TSA further clarifies that Appendix A, 
paragraphs 5.4 and 5.6, require ``sole control'' (as defined in Sec.  
37.3) of an HSM, which does not permit multiple States to share a 
single HSM, but States are permitted to use multi-tenant cloud-based 
HSMs, where each tenant-State is separated with logical and physical 
controls.
    In an effort to further enable the availability of cloud HSMs, TSA 
is revising related NPRM Appendix A, paragraphs 5.13 and 5.14, which 
are related to Appendix A, paragraphs 5.4 and 5.6. Paragraphs 5.13 and 
5.14 set forth requirements to generate IACA root certificate key 
pairs, and document signer key pairs, respectively. NPRM Appendix A, 
paragraph 5.13 proposed requiring two administrators (hereinafter 
``multi-administrator split knowledge key generation'') and one witness 
to perform this function, and paragraph 5.14 proposed requiring at 
least two administrators. However, TSA understands that although States 
have strong competitive procurement options for local HSMs that support 
multi-administrator split knowledge key generation, suitable options 
for multi-tenant cloud HSMs may not exist for many States. States that 
are unable to procure such devices potentially would have been forced 
by the NPRM requirement to purchase local HSMs, which are not only 
costlier than cloud HSMs, but potentially less secure for States that 
lack HSM management capabilities. TSA understands that generally, 
security provided by cloud HSM services exceeds the capabilities that 
most States can afford to provide for local HSMs. After carefully 
considering a number of factors, including potential security and 
privacy risks, TSA believes that proposed Appendix A, paragraphs 5.13 
and 5.14, imposed unnecessarily restrictive requirements concerning the 
minimum personnel required to perform multi-administrator split 
knowledge key generation. Accordingly, the final rule declines to adopt 
those proposals, and revises the requirement in the proposed Appendix 
A, paragraph 5.13, to reduce the number of administrators required to 
generate IACA root key pairs from two to one. The final rule similarly 
revises the proposed Appendix A, paragraph 5.14, to allow for the 
generation of document signer key pairs using one administrator and one 
witness as an alternate to using two administrators with split 
knowledge key

[[Page 85367]]

generation. TSA believes this reduction in personnel maximizes States' 
competitive procurement options, reflects current industry state-of-
the-art, reduces burdens on regulated stakeholders, and does not 
compromise security, privacy, or interoperability.
7. Certificate Policies and Practices
    Comments: A vendor noted that standard ISO/IEC 18013-5:2021(E) 
defines profiles for online certificate status protocol (OCSP) and 
certificate revocation list (CRL), but the standard does not mandate 
their implementation. The vendor recommended that the rule should 
specify which of the methods is required, including implementation 
requirements for certificate type. According to the vendor, it is 
important to immediately revoke a certificate when the issuing State's 
private key shows signs of compromise.
    The vendor also recommended that the rule should require States to 
maintain a Certificate Practice Statement (CPS), in addition to the 
requirement in the NPRM to maintain a certificate policy. A CPS, the 
vendor explained, should follow a format specified by standard IETF RFC 
3647 format, which covers certificate issuance, revocation, and 
renewal.
    TSA Response: Although both OCSP and CRL are methods for validating 
the revocation status of a certificate, OCSP is out-of-scope for the 
IACA root and document signer certificates for mDLs, as that protocol 
is not part of a certificate validation process because mDLs must work 
in an offline environment. In addition, standard ISO/IEC 18013-
5:2021(E) specifies that CRL is mandatory, not optional, and the 
standard fully defines the profiles and implementation requirements. 
Section 37.10(a)(2) of this rule requires States to explain the means 
used for revocation of their certificate systems in compliance with 
applicable requirements of Appendix A. Paragraphs 1, 5, and 8 of the 
Appendix set forth requirements applicable to certificate revocation. 
As discussed in Part IV.V.1, above, the final rule revised Appendix A, 
paragraph 1.1, as proposed in the NPRM, by adding specific provisions 
of the cited references with which States must comply. This addition 
provides greater clarity to States regarding requirements for a 
certificate policy.
    Regarding the recommendation to require States to maintain a CPS 
following standard IETF RFC 3647,\87\ paragraph 1.1 of Appendix A of 
this final rule already specifies that requirement. The provision 
requires a State to adopt certificate policies that meet the 
requirements in CA/Browser Forum Baseline Requirements for the Issuance 
and Management of Publicly[hyphen]Trusted Certificates section 2. In 
addition, the provision requires a State to develop a CPS based on 
requirements set forth in standard IETF RFC 3647.
---------------------------------------------------------------------------

    \87\ Internet Engineering Task Force, Internet X.509 Public Key 
Infrastructure Certificate Policy and Certification Practices 
Framework, Nov. 2003, www.rfc-editor.org/rfc/rfc3647.html (last 
visited July 17, 2024).
---------------------------------------------------------------------------

8. mDL Lifecycle Management
    Comments: A commenter recommended that the rule implement 
requirements on States to manage the lifecycle of issued mDLs. Examples 
of such lifecycle management practices include validity periods, 
refresh periods, push-based updates, harmonized expiration dates of mDL 
and physical cards, and limitations on the numbers of devices to which 
a given mDL can be provisioned.
    TSA Response: Because mDL issuance and Federal agency experience 
are still in their infancies, together with an absence of standardized 
mechanisms to implement certain lifecycle management tasks and minimal 
data to support specific requirements, TSA believes it is premature to 
prescribe requirements that the commenter recommends. Imposing such 
requirements now, while technologies are unsettled and evolving, risks 
upsetting this rule's equilibrium between security and privacy on the 
one hand, and innovation on the other. TSA also notes that mDL 
lifecycle management is addressed in the AAMVA mDL Implementation 
Guidelines.

W. Protection of Sensitive Security Information in Waiver Applications

    Comments: A commenter sought clarification on procedures for 
protecting any SSI that may be included in waiver applications.
    TSA Response: TSA has comprehensively re-evaluated the need to 
protect SSI that may be included in response to requirements throughout 
this rule. TSA believes that SSI protection is warranted not only for 
information included in waiver applications, but also in response to 
other requirements in this rule (Sec. Sec.  37.9(b)(2), (c), (e)(2), 
(e)(4)(ii) & (e)(5)(ii), and Appendix A, paragraph 8.6). Accordingly, 
this final rule revises NPRM Sec.  37.9 to add new paragraph (g), which 
provides that information provided in response to Sec. Sec.  37.9(a), 
(b)(2), (c), (e)(2), (e)(4)(ii), and (e)(5)(ii), and Appendix A, 
paragraph 8.6, may contain SSI and therefore must be handled and 
protected in accordance with 49 CFR part 1520.

V. Consultation With States and the Department of Transportation

    Under section 205 of the REAL ID Act, issuance of REAL ID 
regulations must be done in consultation with the Secretary of 
Transportation and the States. During the development of this final 
rule, DHS and TSA consulted with the Department of Transportation and 
other Federal agencies with an interest in this rulemaking via regular 
meetings. DHS and TSA also consulted with State officials through 
meetings with their representatives to AAMVA.

VI. Regulatory Analyses

A. Economic Impact Analyses

1. Regulatory Impact Analysis Summary
    Changes to Federal regulations must undergo several economic 
analyses. First, E.O. 12866 (Regulatory Planning and Review),\88\ as 
affirmed by E.O. 13563 (Improving Regulation and Regulatory 
Review),\89\ and as amended by E.O. 14094 (Modernizing Regulatory 
Review),\90\ directs Federal agencies to propose or adopt a regulation 
only upon a reasoned determination that the benefits of the intended 
regulation justify its costs. Second, the Regulatory Flexibility Act of 
1980 (RFA) \91\ requires agencies to consider the economic impact of 
regulatory changes on small entities. Third, the Trade Agreement Act of 
1979 \92\ prohibits agencies from setting standards that create 
unnecessary obstacles to the foreign commerce of the United States. 
Fourth, the Unfunded Mandates Reform Act of 1995 \93\ (UMRA) requires 
agencies to prepare a written assessment of the costs, benefits, and 
other effects of proposed or final rules that include a Federal mandate 
likely to result in the expenditure by State, local, or tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more (adjusted for inflation) in any one year.
---------------------------------------------------------------------------

    \88\ 58 FR 51735 (Oct. 4, 1993).
    \89\ 76 FR 3821 (Jan. 21, 2011).
    \90\ 88 FR 21879 (Apr. 11, 2023).
    \91\ Public Law 96-354, 94 Stat. 1164 (Sept. 19, 1980) (codified 
at 5 U.S.C. 601 et seq., as amended by the Small Business Regulatory 
Enforcement Fairness Act of 1996 (SBREFA)).
    \92\ Public Law 96-39, 93 Stat. 144 (July 26, 1979) (codified at 
19 U.S.C. 2531-2533).
    \93\ Public Law 104-4, 109 Stat. 66 (Mar. 22, 1995) (codified at 
2 U.S.C. 1181-1538).
---------------------------------------------------------------------------

2. Assessments Required by E.O. 12866 and E.O. 13563
    Executive Order 12866 (Regulatory Planning and Review), as affirmed 
by Executive Order 13563 (Improving Regulation and Regulatory Review) 
and

[[Page 85368]]

amended by Executive Order 14094 (Modernizing Regulatory Review), 
directs 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 costs and benefits, reducing costs, harmonizing rules, 
and promoting flexibility.
    The OMB has designated this rule a ``significant regulatory 
action'' as defined under section 3(f) of E.O. 12866, as amended by 
Executive Order 14094. Accordingly, OMB has reviewed this rule.
    In conducting these analyses, TSA has made the following 
determinations:
    (a) While TSA attempts to quantify costs where available, TSA 
primarily discusses the costs and benefits of this rulemaking in 
qualitative terms. At present, mDLs are part of an emerging and 
evolving industry with an elevated level of uncertainty surrounding 
costs and benefits. Nonetheless, TSA anticipates the final rule will 
not result in an effect on the economy of $200 million or more in any 
year of the analysis. The rulemaking will not adversely affect the 
economy, interfere with actions taken or planned by other agencies, or 
generally alter the budgetary impact of any entitlements.
    (b) In accordance with the RFA, and pursuant to 5 U.S.C. 605(b), 
TSA certifies that the rule will not have a significant economic impact 
on a substantial number of small entities, including small governmental 
jurisdictions. The rule will only directly regulate the 50 States, the 
District of Columbia, and the five U.S. territories who voluntarily 
participate in the mDL waiver process, who under the RFA are not 
considered small entities.
    (c) TSA has determined that the final rule imposes no significant 
barriers to international trade as defined by the Trade Agreement Act 
of 1979; and
    (d) TSA has determined that the final rule does not impose an 
unfunded mandate on State, local, or tribal governments, such that a 
written statement will be required under the UMRA, as its annual effect 
on the economy does not exceed the $100 million threshold (adjusted for 
inflation) in any year of the analysis.
    TSA has prepared an analysis of its estimated costs and benefits, 
summarized in the following paragraphs, and in the OMB Circular A-4 
Accounting Statement. When estimating the cost of a rulemaking, 
agencies typically estimate future expected costs imposed by a 
regulation over a period of analysis. For this final rule's period of 
analysis, TSA uses a 10-year period of analysis to estimate costs.
    This final rule establishes a temporary waiver process that permits 
Federal agencies to accept mDLs, on an interim basis, for official 
purposes, as defined in the REAL ID Act, when full enforcement of the 
REAL ID Act and regulations begins on May 7, 2025. Federal agencies 
that opt to accept mDLs for official purposes must also procure an mDL 
reader in order to validate the identity of the mDL holder. As part of 
the application process for the mDL waiver, States are required to 
submit to TSA an application, including supporting data, and other 
documentation necessary to establish that their mDLs meet specified 
criteria concerning security, privacy, and interoperability. When REAL 
ID Act and regulations enforcement begins on May 7, 2025, Federal 
agencies will be prohibited from accepting non-compliant driver's 
licenses and identification cards, including both physical cards and 
mDLs, for official purposes.
    In the following paragraph TSA summarizes the estimated costs of 
the rule on the affected parties: States, TSA, mDL users, and relying 
parties (Federal agencies that voluntarily choose to accept mDLs for 
official purposes). TSA has also identified other non-quantified 
impacts to affected parties. As Table 2 displays, TSA estimates the 10-
year total cost of the rule to be $829.8 million undiscounted, $698.1 
million discounted at 3 percent, and $563.9 million discounted at 7 
percent. The total cost to States comprises approximately 98 percent of 
the total quantified costs of the rule.

                                                        Table 2--Total Cost of the Rule by Entity
                                                                      [$ Thousands]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           States  cost      TSA  cost     Relying party                 Total rule  cost
                                                         --------------------------------      cost      -----------------------------------------------
                                                                                         ----------------                  d = a + b + c
                          Year                                                                           -----------------------------------------------
                                                                 a               b               c                         Discounted at   Discounted at
                                                                                                           Undiscounted         3%              7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................................         $42,876          $1,595             $79         $44,551         $43,253         $41,636
2.......................................................          62,791           1,715             919          65,424          61,669          57,144
3.......................................................          71,352           1,209             537          73,098          66,895          59,670
4.......................................................          83,182           1,102             381          84,665          75,224          64,591
5.......................................................          94,460             864             375          95,699          82,551          68,232
6.......................................................          91,467             695           1,160          93,323          78,156          62,185
7.......................................................          91,881             727             742          93,351          75,903          58,134
8.......................................................          91,743             730             558          93,031          73,440          54,145
9.......................................................          91,467             719             531          92,717          71,060          50,432
10......................................................          91,881             774           1,289          93,944          69,903          47,757
                                                         -----------------------------------------------------------------------------------------------
  Total.................................................         813,102          10,128           6,573         829,803         698,054         563,925
                                                         -----------------------------------------------------------------------------------------------
  Annualized............................................  ..............  ..............  ..............  ..............          81,833          80,290
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not add due to rounding.

    States incur costs to familiarize themselves with the requirements 
of the rule, purchase access to an industry standard, submit their mDL 
waiver application, submit an mDL waiver reapplication, and comply with 
waiver application criteria requirements. As displayed in Table 3, the 
10-year cost to States is $813.1 million undiscounted,

[[Page 85369]]

$683.7 million discounted at 3 percent, and $552.0 million discounted 
at 7 percent.

                                                                            Table 3--Total Cost of the Rule to States
                                                                                          [$ Thousands]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Familiarization   Standards       Waiver       Reapplication   Escalated   Infrastructure               Total cost to states
                                                             cost           cost       application        cost       review cost   security cost -----------------------------------------------
                                                      ------------------------------      cost      ---------------------------------------------            g = a + b + c + d + e + f
                         Year                                                       ----------------                                             -----------------------------------------------
                                                              a              b                              d             e              f                         Discounted at   Discounted at
                                                                                            c                                                      Undiscounted         3%              7%
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1....................................................            $63.3         $1.9          $592.1              $0         $7.2         $42,212         $42,876         $41,628         $40,071
2....................................................                0          1.3           394.7               0         12.0          62,383          62,791          59,186          54,844
3....................................................                0          0.6           197.4               0         14.4          71,140          71,352          65,297          58,244
4....................................................                0          0.6           197.4           413.9         16.8          82,553          83,182          73,906          63,459
5....................................................                0          0.6           197.4           275.9         19.2          93,967          94,460          81,482          67,349
6....................................................                0            0               0           138.0         19.2          91,310          91,467          76,603          60,949
7....................................................                0            0               0           551.8         19.2          91,310          91,881          74,708          57,219
8....................................................                0            0               0           413.9         19.2          91,310          91,743          72,423          53,395
9....................................................                0            0               0           138.0         19.2          91,310          91,467          70,102          49,752
10...................................................                0            0               0           551.8         19.2          91,310          91,881          68,368          46,708
                                                      ------------------------------------------------------------------------------------------------------------------------------------------
  Total..............................................             63.3          5.0         1,578.9         2,483.2        165.2         808,807         813,102         683,704         551,991
                                                      ------------------------------------------------------------------------------------------------------------------------------------------
  Annualized.........................................  ...............  ...........  ..............  ..............  ...........  ..............  ..............          80,151          78,591
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not add due to rounding.

    TSA incurs costs associated with reviewing mDL waiver applications 
and mDL waiver renewals, purchasing access to industry standards, 
procuring mDL readers, and mDL training. As displayed in Table 4, the 
10-year cost to TSA is $0.131 million undiscounted, $8.87 million 
discounted at 3 percent, and $7.56 million discounted at 7 percent.

                                                                      Table 4--Total Cost of the Rule to TSA ($ Thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Standards      Application    Reapplication    mDL reader     mDL training                  Total cost to TSA
                                                                       cost         review cost     review cost        cost            cost      -----------------------------------------------
                                                                 --------------------------------------------------------------------------------              f = a + b + c + d + e
                              Year                                                                                                               -----------------------------------------------
                                                                         a               b               c               d               e                         Discounted at   Discounted at
                                                                                                                                                   Undiscounted         3%              7%
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1...............................................................            $0.4           $74.3              $0        $1,418.8          $101.5        $1,595.0        $1,548.5        $1,490.6
2...............................................................               0            49.5               0           699.8           965.4         1,714.7         1,616.3         1,497.7
3...............................................................               0            24.8               0           547.9           636.2         1,208.9         1,106.4           986.9
4...............................................................               0            24.8            39.9           440.6           596.4         1,101.8           978.9           840.5
5...............................................................               0            24.8            26.6           240.6           571.7           863.7           745.0           615.8
6...............................................................               0             0.0            13.3           199.4           482.0           694.7           581.8           462.9
7...............................................................               0             0.0            53.2           200.9           473.3           727.5           591.5           453.0
8...............................................................               0             0.0            39.9           202.3           487.4           729.7           576.0           424.7
9...............................................................               0             0.0            13.3           203.8           501.4           718.5           550.7           390.8
10..............................................................               0             0.0            53.2           205.2           515.5           773.9           575.9           393.4
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
    Total.......................................................             0.4           198.2           239.6         4,359.4         5,330.8        10,128.4         8,870.9         7,556.4
                                                                 -------------------------------------------------------------------------------------------------------------------------------
        Annualized..............................................  ..............  ..............  ..............  ..............  ..............  ..............         1,039.9         1,075.9
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not add due to rounding.

    Relying parties represent Federal agencies that elect to accept 
mDLs for official purposes. Per the final rule, relying parties are 
required to use an mDL reader to retrieve and validate mDL data. As a 
result, relying parties will incur costs to procure mDL readers should 
they voluntarily choose to accept mDLs for official purposes. TSA is 
also considered a relying party, but due to the particular impact to 
TSA related to the requirement for REAL ID related to boarding 
Federally regulated commercial aircraft, those impacts are discussed 
separately. As displayed in Table 5, the 10-year cost to relying 
parties is $6.58 million undiscounted, $5.48 million discounted at 3 
percent, and $4.38 million discounted at 7 percent.

                        Table 5--Total Cost of the Rule to Relying Parties ($ Thousands)
----------------------------------------------------------------------------------------------------------------
                                                    mDL reader             Total cost to relying parties
                                                       cost      -----------------------------------------------
                                                 ----------------                      b = a
                     79Year                                      -----------------------------------------------
                                                         a                         Discounted at   Discounted at
                                                                   Undiscounted         3%              7%
----------------------------------------------------------------------------------------------------------------
1...............................................           $79.3           $79.3           $76.9           $74.1
2...............................................           918.8           918.8           866.0           802.5

[[Page 85370]]

 
3...............................................           537.4           537.4           491.8           438.7
4...............................................           381.3           381.3           338.8           290.9
5...............................................           375.0           375.0           323.5           267.4
6...............................................         1,160.4         1,160.4           971.9           773.3
7...............................................           741.8           741.8           603.1           461.9
8...............................................           558.3           558.3           440.7           324.9
9...............................................           531.2           531.2           407.1           288.9
10..............................................         1,289.1         1,289.1           959.2           655.3
                                                 ---------------------------------------------------------------
    Total.......................................         6,572.6         6,572.6         5,479.1         4,377.9
                                                 ---------------------------------------------------------------
        Annualized..............................  ..............  ..............           642.3           623.3
----------------------------------------------------------------------------------------------------------------
Note: Totals may not add due to rounding.

    TSA has also identified other non-quantified impacts to the 
affected entities. States may incur costs to: monitor and study mDL 
technology as it evolves; resolve the underlying issues that could lead 
to a suspension or termination of an mDL waiver; report serious threats 
to security, privacy, or data integrity; report material changes to mDL 
issuance processes; remove conflicts of interest with independent 
auditor; and request reconsideration of a denied mDL waiver 
application. TSA may incur costs to: investigate circumstances that 
could lead to suspension or termination of a State's mDL waiver; 
provide notice to States, relying parties, and the public related to 
mDL waiver suspensions or terminations; develop an information 
technology (IT) solution that maintains an up-to-date list of States 
with valid mDL waivers; develop materials related to the process 
changes to adapt to mDL systems; and resolve a request for 
reconsideration of a denied mDL waiver application. mDL users may incur 
costs with additional application requirements to obtain an mDL. 
Relying parties may incur costs to resolve any security or privacy 
issue with the mDL reader; report serious threats to security, privacy, 
or data integrity; verifying the list of States with valid mDL waivers; 
train personnel to verify mDLs; and update the public on identification 
policies.
    TSA believes that States implementing an mDL, absent the 
rulemaking, would still comply with the AAMVA Guidelines. Many of the 
requirements of the waiver application criteria are already contained 
within the AAMVA Guidelines. This includes waiver application criteria 
concerning: data encryption; authentication; device identification 
keys; user identity verification; applicant presentation; REAL ID 
compliant physical card; data record; records retention; privacy; and 
interoperability. Only the waiver application criteria related to 
escalated review and infrastructure security/issuance are not contained 
with the AAMVA Guidelines. Operating under the assumption that States 
interested in mDLs would comply with the AAMVA Guidelines, TSA assumes 
the application criteria that overlap with the AAMVA Guidelines would 
otherwise be incurred and thus not included as a cost of the rule.
    This final rule establishes waiver application criteria that serves 
as interim requirements regarding security, privacy, and 
interoperability for those States choosing to issue mDLs that can be 
accepted for official purposes. The waiver application criteria may 
help guide States in their development of mDL technologies which will 
provide a shared standard that could potentially improve efficiency 
while also promoting higher security, privacy, and interoperability 
safeguards.
    The application criteria set requirements establishing security and 
privacy protections to safeguard an mDL holder's identity data. They 
also set interoperability requirements to ensure secure transactions 
with Federal agencies. States, via their mDL waiver application, must 
establish that their mDLs meet the application criteria thus helping to 
ensure adequate security and privacy protections are in place. Absent 
the rule, individual States may choose insufficient security and 
privacy safeguards for mDL technologies that fail to meet the intended 
security purposes of REAL ID and the privacy needs of users.
    An mDL may provide additional security benefits by offering a more 
secure verification of an individual's identity and authentication of 
an individual's credential compared to physical cards. In general, mDLs 
use a cryptographic protocol that ensures the mDL was obtained through 
a trusted authority, such as a State's Department of Motor 
Vehicles.\94\ This same protocol may prevent the alteration of mDLs and 
reduce the threat of counterfeit credentials.\95\ An mDL also offers 
increased protection of personal identifiers by preventing over-
collection of information. An mDL may enable the ability to share only 
those attributes necessary to validate the user identity with the 
relying party.\96\ When using a physical card, the user has no ability 
to limit the information that is shared, regardless of the amount of 
information required for verification.
---------------------------------------------------------------------------

    \94\ Global News Wire, Secure Technology Alliance's Mobile 
Driver's License Workshop Showcases mDLs Role in the Future of 
Identification, Dec. 14, 2021, https://www.globenewswire.com/en/news-release/2021/12/14/2351757/22743/en/Secure-Technology-Alliance-s-Mobile-Driver-s-License-Workshop-Showcases-mDLs-Role-in-The-Future-of-Identification.html (last visited July 17, 2024).
    \95\ Id.
    \96\ Biometric Update, Mobile ID can bring both convenience and 
citizen privacy, July 15, 2021, https://www.biometricupdate.com/202107/mobile-id-can-bring-both-convenience-and-citizen-privacy 
(last visited July 17, 2024).
---------------------------------------------------------------------------

    The waiver application criteria can help guide State development 
and investment in mDLs. The waiver application criteria will foster a 
level of standardization that would potentially reduce complexity by 
limiting individual State nuances while also ensuring interoperability 
across States and with the Federal Government. This increased 
interoperability reduces implementation costs by limiting the need for 
different protocols or

[[Page 85371]]

mechanisms to accept mDLs from individual States.
    Identification of waiver application criteria that can be used 
across States will result in efficiency gains through multiple States 
pursuing similar objectives, goals, and solutions. Establishing 
application criteria early in the technology development process has 
the potential to align development activities across disparate efforts. 
Early guidance might also reduce re-work or modifications required in 
future regulations thus saving time and resources redesigning systems 
and functionality to adhere to subsequent Federal guidelines.
    Furthermore, the waiver application criteria may potentially 
encourage investment in mDLs and the pooling of resources to develop 
mDL technology capabilities across States and address common concerns 
or issues. Such collaboration, or unity of effort, can help spread 
research and development risk and reduce inefficiencies that may arise 
from States working independently. Greater clarity over mDL 
regulations, with the rule part of an incremental, multi-phased 
rulemaking approach, may spur new entrants (States and technology 
companies) into the mDL ecosystem.
    The rule allows Federal agencies to continue to accept mDLs for 
official purposes when REAL ID enforcement begins. This will avoid the 
sudden halting of mDL acceptance when REAL ID enforcement begins which 
will reverse trends in providing for a more customer-friendly screening 
experience. The experience and insight learned through the mDL waiver 
process could also be used to inform future standards and rulemaking.
3. OMB A-4 Statement
    The OMB A-4 Accounting Statement presents annualized costs and 
qualitative benefits of the rule.

                                                          Table 6--OMB A-4 Accounting Statement
                                                               [$ Millions, 2022 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Estimates                                         Units
                                   ------------------------------------------------------------------------------------------------
             Category                   Primary                                                      Discount rate                          Notes
                                       estimate      Low estimate    High estimate    Year dollar          %        Period covered
--------------------------------------------------------------------------------------------------------------------------------------------------------
Benefits:
    Annualized Monetized ($                    N/A             N/A             N/A             N/A               7             N/A  Not quantified.
     millions/year).
                                               N/A             N/A             N/A             N/A               3             N/A
    Annualized Quantified.........             N/A             N/A             N/A             N/A               7             N/A  Not quantified.
                                               N/A             N/A             N/A             N/A               3             N/A
                                   ---------------------------------------------------------------------------------------------------------------------
    Qualitative...................     The rule will produce benefits by reducing uncertainty in the mDL technology environment by helping to foster a
                                        minimum level of security, privacy and interoperability, and reduce potential costs through the alignment of
                                                                      development activities across disparate efforts.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Costs:
    Annualized Monetized ($                 $80.29             N/A             N/A            2022               7        10 years  NPRM Regulatory
     millions/year).                                                                                                                 Impact Analysis
                                                                                                                                     (RIA).
                                            $81.83             N/A             N/A            2022               3        10 years
    Annualized Quantified.........             N/A             N/A             N/A             N/A               7             N/A  Not quantified.
                                               N/A             N/A             N/A             N/A               3             N/A
                                   ---------------------------------------------------------------------------------------------------------------------
    Qualitative...................  States may incur incremental costs to: monitor and study mDL technology as it evolves; resolve the underlying issues
                                      that could lead to a suspension or termination of an mDL waiver; report serious threats to security, privacy, or
                                     data integrity; report material changes to mDL issuance processes; remove conflicts of interest with an independent
                                        auditor; and request reconsideration of a denied mDL waiver application. TSA may incur costs to: investigate
                                        circumstances that could lead to suspension or termination of a State's mDL waiver; provide notice to States,
                                       relying parties, and the public related to mDL waiver suspensions or terminations; develop an IT solution that
                                     maintains an up-to-date list of States with valid mDL waivers; develop materials related to the process changes to
                                     adapt to mDL systems; and resolve a request for reconsideration of a denied mDL waiver application. An mDL user may
                                      incur costs with additional application requirements to obtain an mDL. Relying parties may incur costs to resolve
                                     any security or privacy issue with the mDL reader; report serious threats to security, privacy, or data integrity;
                                        verifying the list of States with valid mDL waivers; train personnel to verify mDLs; and update the public on
                                                                                  identification policies.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Transfers:
--------------------------------------------------------------------------------------------------------------------------------------------------------
    From/To.......................           From:                N/A                          To:                N/A
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       States may pass on costs associated with mDLs and the final rule to the public.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Effects On:
    State, Local, and/or Tribal
     Government: The final rule
     will result in States
     incurring 552.0 million
     discounted at 7 percent.
    Small Business: None..........            NPRM
                                        Regulatory
                                       Flexibility
                                          Analysis
                                            (RFA).
    Wages: None...................
    Growth: Not measured..........
--------------------------------------------------------------------------------------------------------------------------------------------------------

4. Alternatives Considered
    In addition to the rule, or the ``preferred alternative,'' TSA also 
considered four alternative regulatory options.
    The first alternative (Alternative 1) represents the status quo, or 
no change relative to the creation of an mDL waiver. This represents a 
scenario without a rulemaking or a waiver process to enable mDL 
acceptance for official Federal purposes. Under this alternative, 
States would continue to develop mDLs in a less structured manner while 
waiting for relevant guiding standards to be published which would 
likely result in dissimilar

[[Page 85372]]

mDL implementation and technology characteristics. This alternative was 
not selected because it does not address the market failures associated 
with a lack of common standards, such as increased complexity of mDL 
use across States, and may result in larger costs in the long run when 
formal mDL standards are finalized.
    The second alternative (Alternative 2) features the same 
requirements of the rule, including an mDL waiver process, but would 
allow Federal agencies to accept mDLs issued by certain States whose 
mDLs TSA has deemed to be ``low-risk,'' and therefore presumptively 
eligible to be granted a waiver. TSA would identify mDLs from States 
who have fulfilled the rule's minimum requirements prior to applying 
for the waiver and have sufficiently demonstrated (e.g., via TSA 
initiative or recent evaluation by a trusted party) to TSA that their 
mDL systems present adequate interoperability and low security and 
privacy risk. The presumptive eligibility provision would allow Federal 
agencies to immediately (or conditionally) accept those ``low-risk'' 
mDLs for official purposes pending final approval of the respective 
State mDL waiver applications. However, TSA rejects this alternative 
because TSA believes the emerging technology underlying mDLs is 
insufficiently established to accept the security, privacy, and 
interoperability of States' mDL systems without an evaluation by TSA or 
another trusted party. In addition, a similar presumptive eligibility 
process is not available for other aspects of REAL ID and such an 
action would not reduce the burden on States to comply with any 
framework TSA develops.
    Under the third alternative (Alternative 3), TSA would establish 
more comprehensive requirements than those in the rule to ensure mDLs 
comply with the REAL ID Act. States would be required to adopt the more 
comprehensive requirements to issue valid mDLs that can be accepted for 
official purposes. These technical requirements could include specific 
standards related to mDL issuance, provisioning, verification, readers, 
privacy, and other security measures. TSA rejects this alternative 
because promulgating more comprehensive requirements for mDLs is 
premature, as both industry standards and technology used by States are 
still evolving. Restrictive requirements could stifle innovation by 
forcing all stakeholders to pivot toward compliance. This could impede 
TSA from identifying and implementing a more efficient regulatory 
approach in the future.
    Finally, under the fourth alternative (Alternative 4), instead of a 
waiver process, TSA would first establish minimum requirements for 
issuing REAL ID compliant mDLs before TSA later sets more comprehensive 
requirements as additional guidance and standards become available in 
the mid- and long-term. The interim minimum requirements would consist 
of similar requirements for security, privacy, and interoperability, 
based on 19 industry and government standards and guidelines, described 
in the rule regarding waiver applications. Alternative 4 effectively 
would codify standards that may become obsolete in the near future, as 
existing standards are revised, emerging standards publish, and new 
cyber threats proliferate. TSA rejects this alternative because 
establishing minimum requirements that may become obsolete in the near 
future may limit the ability for TSA to revise standards quickly and 
would increase the security and privacy risks of accepting mDLs. In 
addition, this alternative implies a degree of certainty that TSA 
believes is premature given emerging standards that are still in 
development. Also, costs under Alternative 4 would roughly be similar 
to costs under the rule, as both options would require audits and other 
compliance costs.
5. Regulatory Flexibility Act Assessment
    The Regulatory Flexibility Act (RFA) of 1980, as amended,\97\ was 
enacted by Congress to ensure that small entities (small businesses, 
small not-for-profit organizations, and small governmental 
jurisdictions) will not be unnecessarily or disproportionately burdened 
by Federal regulations. Section 605 of the RFA allows an agency to 
certify a rule in lieu of preparing an analysis if the regulations are 
not expected to have a significant economic impact on a substantial 
number of small entities.
---------------------------------------------------------------------------

    \97\ Public Law 96-354, 94 Stat. 1164 (Sept. 19, 1980) (codified 
at 5 U.S.C. 601 et seq., as amended by the Small Business Regulatory 
Enforcement Fairness Act of 1996 (SBREFA)).
---------------------------------------------------------------------------

    In accordance with the RFA, pursuant to 5 U.S.C. 605(b), TSA 
certifies that the rule will not have a significant economic impact on 
a substantial number of small entities. The rule will directly impact 
States that voluntarily choose to apply for a waiver that will permit 
mDLs issued by those States to be accepted for official Federal 
purposes.
6. International Trade Impact Assessment
    The Trade Agreement Act of 1979 prohibits Federal agencies from 
establishing any standards or engaging in related activities that 
create unnecessary obstacles to the foreign commerce of the United 
States. The Trade Agreement Act does not consider legitimate domestic 
objectives, such as essential security, as unnecessary obstacles. The 
statute also requires that international standards be considered and, 
where appropriate, that they be the basis for U.S. standards. TSA has 
assessed the potential effect of this rule and has determined this rule 
will not have an adverse impact on international trade.
7. Unfunded Mandates Reform Act Assessment
    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, TSA 
generally must prepare a written Statement, including a cost-benefit 
analysis, for and final rules with ``Federal mandates'' that may result 
in expenditures by State, local, and tribal governments in the 
aggregate or by the private sector of $100 million or more (adjusted 
for inflation) in any one year.
    Before TSA promulgates a rule for which a written statement is 
required, section 205 of the 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 rulemaking. The provisions of 
section 205 do not apply when they are inconsistent with applicable 
law. Moreover, section 205 allows TSA to adopt an alternative other 
than the least costly, most cost-effective, or least burdensome 
alternative if the final rule provides an explanation why that 
alternative was not adopted. Before TSA establishes any regulatory 
requirements that may significantly or uniquely affect small 
governments, including tribal governments, it must develop under 
section 203 of the UMRA a small government agency plan. The plan must 
provide for notifying potentially affected small governments, enabling 
officials of affected small governments to have meaningful and timely 
input in the development of TSA regulatory proposals with significant 
Federal intergovernmental mandates, and informing, educating, and 
advising small governments on compliance with the regulatory 
requirements.
    When adjusted for inflation, the threshold for expenditures becomes 
$177.1 million in 2022 dollars. TSA has

[[Page 85373]]

determined that this rule does not contain a Federal mandate as it is 
voluntary. Furthermore, estimated expenditures for State, local, and 
tribal governments do not exceed that amount in the aggregate in any 
one year.

B. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501 et seq.) 
requires that TSA consider the impact of paperwork and other 
information collection burdens imposed on the public. Under the 
provisions of PRA section 3507(d), TSA must obtain approval from the 
Office of Management and Budget (OMB) for each collection of 
information it conducts, sponsors, or requires through regulations. 
This rule calls for a collection of information under the PRA. 
Accordingly, TSA has submitted to OMB for review the information 
collections that follow below and is pending approval. See 5 CFR 
1320.11(a). TSA has published a separate notice in the Federal Register 
soliciting comment on the PRA collection included in this final rule. 
As defined in 5 CFR 1320.3(c), ``collection of information'' includes 
reporting, recordkeeping, monitoring, posting, labeling, and other 
similar actions. This section provides the description of the 
information collection and of those who must collect the information as 
well as an estimate of the total annual time burden. TSA cannot request 
submission of waiver applications under this rule until OMB has 
approved the information collection.
    The rule establishes a process for States to apply to TSA for a 
temporary waiver. Such a request is voluntary but will require the 
submission of an mDL waiver application, resubmission of an mDL waiver 
application deemed insufficient or denied, and reapplication for an mDL 
waiver when the term of the mDL waiver expires. All of these items are 
considered new information collections.
    TSA uses the current State of mDL implementation to inform its 
estimate on how many State entities will request an mDL waiver during 
the period of analysis.\98\ All 50 States, the District of Columbia, 
and five territories (collectively referred to as ``States'' hereafter) 
are eligible to apply for an mDL waiver as discussed in the rule. 
However, TSA assumes that not all States will apply for the mDL waiver. 
TSA assumes 15 States will apply for an mDL waiver in Year 1 of the 
analysis, 10 States in Year 2, and five States in Year 3.\99\
---------------------------------------------------------------------------

    \98\ As of December 2023, 10 States currently provide mDLs. 
Roughly 18 States have taken steps towards mDL implementation, 
including six States participating in the TSA mDL testing without a 
current mDL solution.
    \99\ Each State would submit one mDL waiver application.
---------------------------------------------------------------------------

    Following the State submission of its mDL waiver application, TSA 
determines if the application is approved, insufficient, or denied. 
States are allowed to amend an insufficient or denied mDL waiver 
application and resubmit to TSA review.
    TSA assumes that all submissions will initially be deemed 
insufficient due to the mDL waiver criteria being new and with mDLs an 
emerging technology. Nonetheless, TSA intends to work individually with 
interested States to meet the mDL criteria to maximize the likelihood 
of receiving a waiver. Based on these assumptions, TSA estimates all 
initial mDL waiver applications will be deemed insufficient and that 90 
percent of States will resubmit their mDL waiver applications.\100\
---------------------------------------------------------------------------

    \100\ DHS assumes that 10 percent of applications deemed 
insufficient would no longer pursue an mDL waiver due to the level 
of effort involved to become sufficient and wait until the mDL 
environment is more fully developed.
---------------------------------------------------------------------------

    A State's mDL waivers will be valid for three years. Therefore, 
States granted an mDL waiver in Year 1 will need to reapply in Year 4 
which is beyond the scope of this particular information collection.
    TSA technology subject matter experts estimate that the mDL waiver 
application will take, on average, 20 hours to complete. TSA also 
estimates that mDL waiver resubmissions will take 25 percent of the 
initial mDL waiver application time which equates to 5 hours.\101\ 
Finally, TSA estimates that mDL waiver reapplications will take 75 
percent of the initial mDL waiver application time which equates to 15 
hours. \102\
---------------------------------------------------------------------------

    \101\ mDL Waiver Resubmission burden = 20 hours [initial mDL 
waiver application burden] x 0.25 = 5 hours.
    \102\ mDL Waiver Renewal burden = 20 hours [initial mDL waiver 
application burden] x (1-0.25) = 15 hours.
---------------------------------------------------------------------------

    These hour burden estimates are combined with the number of 
collection activities to calculate the total and average time burden 
associated with the rule. TSA estimates the rule's total three-year 
burden for mDL waiver applications, mDL waiver resubmissions, and mDL 
waiver reapplications is 57 responses and 735 hours. TSA estimates an 
average yearly burden of 19 responses and 245 hours. Details of the 
calculation can be found in Table 7.

                                             Table 7--PRA Information Collection Responses and Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    Number of responses
                                  ---------------------------------------------------------------------------------------
       Collection activity                                                                                   Time per       Total hours   Average annual
                                      Year 1       Year 2       Year 3         Total      Average annual     response                          hours
                                                                             responses       responses        (hours)
                                                                           d = a + b + c         e = d/3               f       g = d * f         h = g/3
--------------------------------------------------------------------------------------------------------------------------------------------------------
mDL Waiver Application...........         15.0         10.0          5.0            30.0            10.0              20             600             200
mDL Waiver Resubmission..........         13.5          9.0          4.5            27.0             9.0               5             135              45
mDL Waiver Reapplication.........            0            0            0               0               0              15               0               0
                                  ----------------------------------------------------------------------------------------------------------------------
    Total........................         28.5         19.0          9.5            57.0            19.0  ..............             735             245
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 85374]]

    In addition, States will incur costs associated with audits of 
their mDL infrastructure. TSA estimates an average cost of $26,974 per 
submission. States will incur this cost for the initial mDL waiver 
application and mDL waiver reapplication. As there are no 
reapplications anticipated for this information collection request, TSA 
multiplies the annual average number of mDL waiver applications from 
Table 7 above (10) and the audit cost of $26,974 for a total mDL waiver 
application cost of $269,742.

C. Federalism (E.O. 13132)

    A rule has implications for federalism under E.O. 13132 of August 
6, 1999 (Federalism) if it has a substantial direct effect on State or 
local governments and would either preempt State law or impose a 
substantial direct cost of compliance on them. TSA analyzed this rule 
under this order and determined that although this rule affects the 
States, it does not preempt State law or impose substantial direct 
compliance costs.
    This final rule establishes a process for States to request a 
temporary waiver that enables Federal agencies to accept mDLs issued by 
those States when REAL ID enforcement begins on May 7, 2025. The rule 
does not, however, require States to apply for a waiver, and does not 
impact States who elect not to do so.
    States that elect to apply for a waiver under this rule must submit 
an application, supporting data, and other documentation to establish 
that its mDLs meet the specified criteria concerning security, privacy, 
and interoperability. TSA intends to work with each State a case-by-
case basis to ensure that its mDLs meet the minimum requirements 
necessary to obtain a waiver. This rule does not impact the broad 
policymaking discretion that States currently exercise regarding other 
aspects of driver's license issuance.
    DHS recognizes that States seeking a waiver will incur compliance 
costs for which Federal funds are generally not available. However, TSA 
emphasizes again that this rule does not require States to apply for a 
waiver, and TSA is promulgating this rule in response to States' 
concerns regarding mDL acceptance when REAL ID enforcement begins. To 
minimize States' costs, this rule affords States the maximum possible 
discretion consistent with the purposes of the REAL ID Act and 
regulations. Although the rule prescribes baseline requirements, it 
allows States broad discretion to implement technology decisions, 
tailored to each State's unique situation, that meet the requirements.
    TSA therefore has determined that the rule is consistent with 
Executive Order 13132 and does not have these implications for 
federalism.

D. Customer Service (E.O. 14058)

    E.O. 14058 of December 13, 2021 (Transforming Federal Customer 
Experience and Service Delivery to Rebuild Trust in Government), is 
focused on enhancing the of technology ``to modernize Government and 
implement services that are simple to use, accessible, equitable, 
protective, transparent, and responsive for all people of the United 
States.'' The Secretary of Homeland Security has specifically committed 
to testing the use of innovative technologies at airport security 
checkpoints to reduce passenger wait times. This rule supports this 
commitment. Using mDLs to establish identity at airport security 
checkpoints is intended to provide the public with increased 
convenience, security, privacy, and health benefits from ``contact-
free'' identity verification. In 2022, DHS and TSA began a 
collaboration with States and industry to test the use of mDLs issued 
by participating States at select TSA airport security checkpoints (see 
Part II.B.2., above). As of the date of this final rule, TSA is 
currently testing mDLs issued by 11 States (Arizona, California, 
Colorado, Georgia, Hawaii, Iowa, Louisiana, Maryland, New York, Ohio, 
Utah) at 27 airports.\103\
---------------------------------------------------------------------------

    \103\ TSA, Facial Recognition and Digital Identity Solutions, 
https://www.tsa.gov/digital-id (last visited July 17, 2024).
---------------------------------------------------------------------------

E. Energy Impact Analysis (E.O. 13211)

    TSA analyzed this rule under E.O. 13211 of May 18, 2001 (Actions 
Concerning Regulations That Significantly Affected Energy Supply, 
Distribution or Use), and determined that it is not a ``significant 
energy action'' under that E.O. and is not likely to have a significant 
adverse effect on the supply, distribution, or use of energy. 
Therefore, this rulemaking does not require a Statement of Energy 
Effects.

F. Environmental Analysis

    DHS and its components review actions to determine whether the 
National Environmental Policy Act \104\ (NEPA) applies to them and, if 
so, what degree of analysis is required. DHS Directive 023-01, Rev. 01 
(Directive) and Instruction Manual 023-01-001-01,\105\ Rev. 01 
(Instruction Manual) establish the procedures that DHS and its 
components use to comply with NEPA and the Council on Environmental 
Quality (CEQ) regulations \106\ for implementing NEPA. The CEQ 
regulations allow Federal agencies to establish in their NEPA 
implementing procedures categories of actions (``categorical 
exclusions'') which experience has shown normally do not individually 
or cumulatively have a significant effect on the human environment and, 
therefore, do not require an Environmental Assessment (EA) or 
Environmental Impact Statement (EIS).\107\
---------------------------------------------------------------------------

    \104\ See Public Law 91-190, 42 U.S.C. 4321- 4347.
    \105\ See DHS, Implementing the National Environmental Policy 
Act, DHS Directive 023-01, Rev 01 (Oct. 31, 2014), and DHS 
Instruction Manual 023-01-001-01, Rev. 01 (Nov. 6, 2014),
    https://www.dhs.gov/publication/directive-023-01-rev-01-and-instruction-manual-023-01-001-01-rev-01-and-catex (last visited July 
17, 2024).
    \106\ 40 CFR parts 1500 through 1508.
    \107\ See 40 CFR 1501.4(a).
---------------------------------------------------------------------------

    Under DHS NEPA implementing procedures, 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.\108\
---------------------------------------------------------------------------

    \108\ See Instruction Manual, section V.B.2 (a-c).
---------------------------------------------------------------------------

    As discussed throughout this preamble, this final rule amends 
existing REAL ID regulations to add definitions and establish a process 
enabling States to apply to TSA for a temporary waiver, which would 
allow Federal agencies to accept, for official purposes when REAL ID 
enforcement begins in May 2025, mDLs issued by States to whom TSA has 
issued a waiver. These requirements interpret or amend an existing 
regulation without changing its environmental effect.
    TSA therefore has determined that this final rule clearly fits 
within by categorical exclusion number A3 in Appendix A of the 
Instruction Manual. Categorical exclusion A3 applies to promulgation of 
rules, issuance of rulings or interpretations, and the development and 
publication of policies, orders, directives, notices, procedures, 
manuals, advisory circulars, and other guidance documents of the 
following nature: (a) Those of a strictly administrative or procedural 
nature; (b) those that implement, without substantive change, statutory 
or regulatory requirements; (c) those that implement, without 
substantive change, procedures, manuals, and other guidance documents; 
(d) those that interpret or amend an existing regulation without 
changing its

[[Page 85375]]

environmental effect; (e) technical guidance on safety and security 
matters; or (f) guidance for the preparation of security plans.
    This final rule is not a piece of a larger action. Under section 
V.B(2)(b) of the Instruction Manual, and as informed by the scoping 
requirements of 40 CFR 1501.9(e), actions must be considered in the 
same review if the actions are connected, meaning that an action may 
trigger another action, an action cannot or will not proceed unless 
another action is taken, or an action depends on a larger action for 
its justification. While TSA anticipates future rulemaking efforts to 
further amend REAL ID regulations and create requirements enabling 
States to issue REAL ID-compliant mDLs, any subsequent final rule, as 
well as this final rule, are each stand-alone regulatory actions. Thus, 
this final rule is not connected to any other action for purposes of 
the NEPA categorical exclusion analysis.
    In accordance with the Instruction Manual's NEPA implementing 
procedures, TSA has completed an evaluation of this rule to determine 
whether it involves one or more of the ten identified extraordinary 
circumstances that present the potential for significant environmental 
impacts. TSA concludes from its analysis that no extraordinary 
circumstances are present requiring further environmental analysis and 
documentation. Therefore, this action is categorically excluded and no 
further NEPA analysis is required.

List of Subjects in 6 CFR part 37

    Document security, Driver's licenses, Identification cards, 
Incorporation by reference, Licensing and registration, Motor vehicle 
administrations, Motor vehicle. safety, Motor vehicles, Personally 
identifiable information, Physical security, Privacy, Reporting and 
recordkeeping requirements, Security measures.

Regulatory Amendments

    For the reasons set forth in the preamble, the Department of 
Homeland Security amends 6 CFR part 37 to read as follows:

PART 37--REAL ID DRIVER'S LICENSES AND IDENTIFICATION CARDS

0
1. The authority citation for part 37 continues to read as follows:

    Authority:  49 U.S.C. 30301 note; 6 U.S.C. 111, 112.

Subpart A--General

0
2. Amend Sec.  37.3 by adding the definitions for ``Administration'', 
``Certificate authority'', ``Certificate management system'', 
``Certificate policy'', ``Certificate system'', ``Critical security 
event'', ``Delegated third party'', ``Delegated third party system'', 
``Denial of service'', ``Digital certificates'', ``Digital 
signatures'', ``Distributed denial of service'', ``Execution 
environment'', ``Front end system'', ``Hardware security module'', 
``High security zone'', ``Identity proofing'', ``Identity 
verification'', ``Internal support system'', ``Issuing authority'', 
``Issuing authority certificate authority'', ``Issuing system'', 
``mDL'', ``Mobile driver's license'', ``Mobile identification card'', 
``Multi-Factor authentication'', ``Online certificate status 
protocol'', ``Penetration test'', ``Provisioning'', ``Public key 
infrastructure'', ``Rich execution environment'', ``Root certificate 
authority'', ``Root certificate authority system'', ``Secure element'', 
``Secure hardware'', ``Secure key storage device'', ``Secure zone'', 
``Security support system'', ``Sole control'', ``State root 
certificate'', ``System'', ``Trusted execution environment'', ``Trusted 
role'', ``Virtual local area network'', ``Vulnerability'', 
``Vulnerability scanning'', and ``Zone'' in alphabetical order to read 
as follows:


Sec.  37.3  Definitions.

* * * * *
    Administration means management actions performed on Certificate 
Systems by a person in a Trusted Role.
* * * * *
    Certificate authority means an issuer of digital certificates that 
are used to certify the identity of parties in a digital transaction.
    Certificate Management System means a system used by a State or 
delegated third party to process, approve issuance of, or store digital 
certificates or digital certificate status information, including the 
database, database server, and storage.
    Certificate policy means the set of rules and documents that forms 
a State's governance framework in which digital certificates, 
certificate systems, and cryptographic keys are created, issued, 
managed, and used.
    Certificate system means the system used by a State or delegated 
third party to provide services related to public key infrastructure 
for digital identities.
    Critical security event means detection of an event, a set of 
circumstances, or anomalous activity that could lead to a circumvention 
of a zone's security controls or a compromise of a certificate system's 
integrity, including excessive login attempts, attempts to access 
prohibited resources, Denial of service or Distributed denial of 
service attacks, attacker reconnaissance, excessive traffic at unusual 
hours, signs of unauthorized access, system intrusion, or an actual 
compromise of component integrity.
* * * * *
    Delegated third party means a natural person or legal entity that 
is not the state and that operates any part of a certificate system 
under the State's legal authority.
    Delegated third party system means any part of a certificate system 
used by a delegated third party while performing the functions 
delegated to it by the State.
    Denial of service means the prevention of authorized access to 
resources or the delaying of time-critical operations.
* * * * *
    Digital certificates identify the parties involved in an electronic 
transaction, and contain information necessary to validate Digital 
signatures.
* * * * *
    Digital signatures are mathematical algorithms used to validate the 
authenticity and integrity of a message.
    Distributed denial of service means a denial of service attack 
where numerous hosts perform the attack.
* * * * *
    Execution environment means a place within a device processer where 
active application's code is processed.
* * * * *
    Front end system means a system with a public IP address, including 
a web server, mail server, DNS server, jump host, or authentication 
server.
* * * * *
    Hardware security module means a physical computing device that 
safeguards and manages cryptographic keys and provides cryptographic 
processing.
    High security zone means a physical location where a State's or 
Delegated third party's private key or cryptographic hardware is 
located.
* * * * *
    Identity proofing refers to a series of steps that the State 
executes to prove the identity of a person.
    Identity verification is the confirmation that identity data 
belongs to its purported holder.
* * * * *
    Internal support system means a system which operates on a State's 
internal network and communicates with the certificate system to 
provide business services related to mDL management.

[[Page 85376]]

    Issuing authority means the State that issues a mobile driver's 
license or mobile identification card.
    Issuing authority certificate authority means a certificate 
authority operated by or on behalf of an issuing authority or a State's 
root certificate authority.
    Issuing system means a system used to sign mDLs, digital 
certificates, mobile security objects, or validity status information.
* * * * *
    mDL means mobile driver's license and mobile identification cards, 
collectively.
    Mobile driver's license means a driver's license that is stored on 
a mobile electronic device and read electronically.
    Mobile identification card means an identification card, issued by 
a State, that is stored on a mobile electronic device and read 
electronically.
    Multi-Factor authentication means an authentication mechanism 
consisting of two or more of the following independent categories of 
credentials (i.e., factors) to verify the user's identity for a login 
or other transaction: something you know (knowledge factor), something 
you have (possession factor), and something you are (inherence factor).
* * * * *
    Online certificate status protocol means an online protocol used to 
determine the status of a digital certificate.
* * * * *
    Penetration test means a process that identifies and attempts to 
exploit vulnerabilities in systems through the active use of known 
attack techniques, including the combination of different types of 
exploits, with a goal of breaking through layers of defenses and 
reporting on unpatched vulnerabilities and system weaknesses.
* * * * *
    Provisioning means the process by which a State transmits and 
installs an mDL on an individual's mobile device.
    Public key infrastructure means a structure where a certificate 
authority uses digital certificates for issuing, renewing, and revoking 
digital credentials.
* * * * *
    Rich execution environment, also known as a ``normal execution 
environment,'' means the area inside a device processor that runs an 
operating system.
    Root certificate authority means the State certificate authority 
whose public encryption key establishes the basis of trust for all 
other digital certificates issued by a State.
    Root certificate authority system means a system used to create a 
State's root certificate or to generate, store, or sign with the 
private key associated with a State root certificate.
* * * * *
    Secure element means a tamper-resistant secure hardware component 
which is used in a device to provide the security, confidentiality, and 
multiple application environment required to support various business 
models.
    Secure hardware means hardware provided on a mobile device for key 
management and trusted computation such as a secure element (SE) or 
trusted execution environment.
    Secure key storage device means a device certified as meeting the 
specified FIPS PUB 140-3 Level 2 overall, Level 3 physical, or Common 
Criteria (EAL 4+).
    Secure zone means an area (physical or logical) protected by 
physical and logical controls that appropriately protect the 
confidentiality, integrity, and availability of certificate systems.
    Security support system means a system used to provide security 
support functions, which may include authentication, network boundary 
control, audit logging, audit log reduction and analysis, vulnerability 
scanning, and intrusion detection (host-based intrusion detection, 
network-based intrusion detection).
* * * * *
    Sole control means a condition in which logical and physical 
controls are in place to ensure the administration of a certificate 
system can only be performed by a State or delegated third party.
* * * * *
    State root certificate means a public digital certificate of a root 
certificate authority operated by or on behalf of a State.
    System means one or more pieces of equipment or software that 
stores, transforms, or communicates data.
* * * * *
    Trusted execution environment means an execution environment that 
runs alongside but isolated from a rich execution environment and has 
the security capabilities necessary to protect designated applications.
    Trusted role means an employee or contractor of a State or 
delegated third party who has authorized access to or control over a 
secure zone or high security zone.
* * * * *
    Virtual local area network means a broadcast domain that is 
partitioned and isolated within a network.
    Vulnerability means a weakness in an information system, system 
security procedures, internal controls, or implementation that could be 
exploited or triggered by a threat source.
    Vulnerability scanning means a technique used to identify host 
attributes and associated vulnerabilities.
    Zone means a subset of certificate systems created by the logical 
or physical partitioning of systems from other certificate systems.

0
3. Revise Sec.  37.4 to read as follows:


Sec.  37.4  Incorporation by reference.

    Certain material is incorporated by reference into this part with 
the approval of the Director of the Federal Register under 5 U.S.C. 
552(a) and 1 CFR part 51. All approved incorporation by reference (IBR) 
material is available for inspection at the Transportation Security 
Administration (TSA) and at the National Archives and Records 
Administration (NARA). Please contact TSA at Transportation Security 
Administration, Attn.: OS/ESVP/REAL ID Program, TSA Mail Stop 6051, 
6595 Springfield Center Dr., Springfield, VA 20598-6051, (866) 289-
9673, or visit www.tsa.gov. You may also contact the REAL ID Program 
Office at [email protected] or visit www.tsa.gov/REAL-ID/
mDL. For information on the availability of this material at NARA, 
visit www.archives.gov/federal-register/cfr/ibr-locations.html or email 
[email protected]. The material may also be obtained from the 
following sources:
    (a) American Association of Motor Vehicle Administrators (AAMVA) 
4301 Wilson Boulevard, Suite 400, Arlington, VA 22203; phone: (703) 
522-4200; website: www.aamva.org.
    (1) 2005 AAMVA Driver's License/Identification Card Design 
Specifications, Annex A, section A.7.7.2., March 2005 (AAMVA 
Specifications); IBR approved for Sec.  37.17.
    (2) Mobile Driver's License (mDL) Implementation Guidelines, 
Version 1.2January 2023; IBR approved for Sec.  37.10(a). (Available at 
https://aamva.org/getmedia/b801da7b-5584-466c-8aeb-f230cef6dda5/mDL-Implementation-Guidelines-Version-1-2_final.pdf.)
    (b) Certification Authority Browser Forum (CA/Browser Forum), 815 
Eddy St., San Francisco, CA 94109; phone: (415) 436-9333; email: 
[email protected]; website: www.cabforum.org.
    (1) Baseline Requirements for the Issuance and Management of 
Publicly[hyphen]Trusted Certificates, Version

[[Page 85377]]

1.8.6, December 14, 2022; IBR approved for appendix A to this subpart. 
(Available at https://cabforum.org/wp-content/uploads/CA-Browser-Forum-BR-1.8.6.pdf.)
    (2) Network and Certificate System Security Requirements, Version 
1.7, April 5, 2021; IBR approved for appendix A to this subpart. 
(Available at https://cabforum.org/wp-content/uploads/CA-Browser-Forum-Network-Security-Guidelines-v1.7.pdf.)
    (c) Cybersecurity and Infrastructure Security Agency, Mail Stop 
0380, Department of Homeland Security, 245 Murray Lane, Washington, DC 
20528-0380; phone: (888) 282-0870; email: [email protected]; website: 
www.cisa.gov.
    (1) Federal Government Cybersecurity Incident & Vulnerability 
Response Playbooks, November 2021; IBR approved for appendix A to this 
subpart. (Available at www.cisa.gov/sites/default/files/publications/Federal_Government_Cybersecurity_Incident_and_Vulnerability_Response_Playbooks_508C.pdf.)
    (2) [Reserved]
    (d) Department of Homeland Security, 2707 Martin Luther King Jr. 
Ave. SE, Washington, DC 20528; phone: (202) 282-8000; website: 
www.dhs.gov.
    (1) National Cyber Incident Response Plan, December 2016; IBR 
approved for appendix A to this subpart. (Available at www.cisa.gov/uscert/sites/default/files/ncirp/National_Cyber_Incident_Response_Plan.pdf.)
    (2) [Reserved]
    (e) International Civil Aviation Organization (ICAO), ICAO, 
Document Sales Unit, 999 University Street, Montreal, Quebec, Canada 
H3C 5H7; phone: (514) 954-8219; email: [email protected]; website: 
www.icao.int.
    (1) ICAO 9303, ``Machine Readable Travel Documents,'' Volume 1, 
part 1, Sixth Edition, 2006; IBR approved for Sec.  37.17.
    (2) [Reserved]
    (f) International Organization for Standardization, Chemin de 
Blandonnet 8, CP 401, 1214 Vernier, Geneva, Switzerland; phone: +41 22 
749 01 11; email: [email protected]; website: www.iso.org/contact-iso.html. (Also available by contacting ANSI at ANSI, 25 West 
43rd Street, 4th Floor, New York, New York 10036 website: 
www.ansi.org.)
    (1) ISO/IEC 19794-5:2005(E) Information technology--Biometric Data 
Interchange Formats--Part 5: Face Image Data, dated June 2005; IBR 
approved for Sec.  37.17.
    (2) ISO/IEC 15438:2006(E) Information Technology--Automatic 
identification and data capture techniques--PDF417 symbology 
specification, dated June 2006; IBR approved for Sec.  37.19.
    (3) ISO/IEC 18013-5:2021(E), Personal identification--ISO-compliant 
driving license--Part 5: Mobile driving license (mDL) application, 
First Edition, September 2021; IBR approved for Sec. Sec.  37.8(b); 
37.10(a); and appendix A to this subpart.
    (g) National Institute of Standards and Technology, 100 Bureau 
Drive, Gaithersburg, MD 20899; phone: (301) 975-2000; website: 
www.nist.gov.
    (1) FIPS PUB 140-3, Federal Information Processing Standard 
Publication: Security Requirements for Cryptographic Modules, March 22, 
2019; IBR approved for appendix A to this subpart. (Available at 
https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.140-3.pdf.)
    (2) FIPS PUB 180-4, Federal Information Processing Standard 
Publication: Secure Hash Standard (SHS), August 2015; IBR approved for 
Sec.  37.10(a). (Available at https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.180-4.pdf.)
    (3) FIPS PUB 186-5, Federal Information Processing Standard 
Publication: Digital Signature Standard (DSS), February 3, 2023; IBR 
approved for Sec.  37.10(a). (Available at https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.186-5.pdf.)
    (4) FIPS PUB 197-upd1, Federal Information Processing Standard 
Publication: Advanced Encryption Standard (AES), May 9, 2023; IBR 
approved for Sec.  37.10(a). (Available at https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.197.pdf.)
    (5) FIPS PUB 198-1, Federal Information Processing Standard 
Publication: The Keyed-Hash Message Authentication Code (HMAC), July 
2008; IBR approved for Sec.  37.10(a). (Available at https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.198-1.pdf.)
    (6) FIPS PUB 202, Federal Information Processing Standard 
Publication: SHA-3 Standard: Permutation-Based Hash and Extendable-
Output Functions, August 2015; IBR approved for Sec.  37.10(a). 
(Available at https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.202.pdf.)
    (7) NIST SP 800-53 Rev.5, NIST Special Publication: Security and 
Privacy Controls for Information Systems and Organizations, Revision 5, 
September 2020 (including updates as of December. 10, 2020); IBR 
approved for appendix A to this subpart. (Available at https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-53r5.pdf.)
    (8) NIST SP 800-57 Part 1 Rev.5, NIST Special Publication: 
Recommendation for Key Management: Part 1--General, Revision 5, May 
2020; IBR approved for appendix A to this subpart. (Available at 
https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-57pt1r5.pdf.)
    (9) NIST SP 800-57 Part 2 Rev.1, NIST Special Publication: 
Recommendation for Key Management: Part 2--Best Practices for Key 
Management Organization, Revision 1, May 2019; IBR approved for 
appendix A to this subpart. (Available at https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-57pt2r1.pdf.)
    (10) NIST SP 800-57 Part 3 Rev.1, NIST Recommendation for Key 
Management: Part 3: Application-Specific Key Management Guidance, 
Revision 1, January 2015; IBR approved for appendix A to this subpart. 
(Available at https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-57Pt3r1.pdf.)
    (11) NIST SP 800-63-3, NIST Special Publication: Digital Identity 
Guidelines, June 2017; IBR approved for appendix A to this subpart. 
(Available at https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-63-3.pdf.)
    (12) NIST SP 800-63B, NIST Special Publication: Digital Identity 
Guidelines Authentication and Lifecycle Management, June 2017 
(including updates as of December. 1, 2017); IBR approved for appendix 
A to this subpart. (Available at https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-63b.pdf.)
    (13) NIST Framework for Improving Critical Infrastructure 
Cybersecurity, Version 1.1, April 16, 2018); IBR approved for appendix 
A to this subpart. (Available at https://nvlpubs.nist.gov/nistpubs/CSWP/NIST.CSWP.04162018.pdf.)
    4. Add Sec. Sec.  37.7 through 37.10 to read as follows:

Sec.
37.7 Temporary waiver for mDLs; State eligibility.
37.8 Requirements for Federal agencies accepting mDLs issued by 
States with temporary waiver.
37.9 Applications for temporary waiver for mDLs.
37.10 Application criteria for issuance of temporary waiver for 
mDLs; audit report; waiver application guidance.


Sec.  37.7  Temporary waiver for mDLs; State eligibility.

    (a) Generally. TSA may issue a temporary certificate of waiver to a 
State

[[Page 85378]]

that meets the requirements of Sec. Sec.  37.10(a) and (b).
    (b) State eligibility. A State may be eligible for a waiver only 
if, after considering all information provided by a State under 
Sec. Sec.  37.10(a) and (b), TSA determines that--
    (1) The State is in full compliance with all applicable REAL ID 
requirements as defined in subpart E of this part; and
    (2) Information provided by the State under Sec. Sec.  37.10(a) and 
(b) sufficiently demonstrates that the State's mDL provides the 
security, privacy, and interoperability necessary for acceptance by 
Federal agencies.


Sec.  37.8  Requirements for Federal agencies accepting mDLs issued by 
States with temporary waiver.

    Notwithstanding Sec.  37.5(b), Federal agencies may accept an mDL 
for REAL ID official purposes issued by a State that has a valid 
certificate of waiver issued by TSA under Sec.  37.7(a). A Federal 
agency that elects to accept mDLs under this section must--
    (a) Confirm the State holds a valid certificate of waiver 
consistent with Sec.  37.7(a) by verifying that the State appears in a 
list of mDLs approved for Federal use, available as provided in Sec.  
37.9(b)(1);
    (b) Use an mDL reader to retrieve and validate mDL data as required 
by standard ISO/IEC 18013-5:2021(E) (incorporated by reference; see 
Sec.  37.4);
    (c) In accordance with the deadlines set forth in Sec.  37.5, 
verify that the data element ``DHS_compliance'' is marked ``F'', as 
required by Sec. Sec.  37.10(a)(4)(ii) and (a)(1)(vii); and
    (d) Upon discovery that acceptance of a State's mDL is likely to 
cause imminent or serious threats to the security, privacy, or data 
integrity, the agency's senior official responsible for REAL ID 
compliance, or equivalent function, must report such discovery to TSA 
as directed at www.tsa.gov/real-id/mDL within 72 hours of such 
discovery. Information provided in response to this paragraph may 
contain SSI, and if so, must be handled and protected in accordance 
with 49 CFR part 1520.


Sec.  37.9  Applications for temporary waiver for mDLs.

    (a) Application process. Each State requesting a temporary waiver 
must file with TSA a complete application as set forth in Sec. Sec.  
37.10(a) and (b). Application filing instructions may be obtained from 
TSA at www.tsa.gov/real-id/mDL.
    (b) Decisions. TSA will provide written notice via email to States 
within 60 calendar days, to the extent practicable, but in no event 
longer than 90 calendar days, indicating that TSA has made one of the 
following decisions:
    (1) Approved. Upon approval of an application for a temporary 
waiver, TSA will issue a certificate of waiver to the State, and 
publish the State's name in a list of mDLs approved for Federal use at 
www.tsa.gov/real-id/mDL.
    (2) Insufficient. Upon determination that an application for a 
temporary waiver is incomplete or otherwise deficient, TSA will provide 
the State an explanation of deficiencies, and an opportunity to address 
any deficiencies and submit an amended application. States will have 60 
calendar days to respond to the notice, and TSA will respond via email 
within 30 calendar days.
    (3) Denied. Upon determination that an application for a waiver 
fails to meet criteria specified in Sec. Sec.  37.10(a) and (b), TSA 
will provide the State specific grounds on which the denial is based, 
and provide the State an opportunity to seek reconsideration as 
provided in paragraph (c) of this section.
    (c) Reconsideration--(1) How to File Request. States will have 90 
calendar days to file a request for reconsideration of a denied 
application. The State must explain what corrective action it intends 
to implement to correct any defects cited in the denial or, 
alternatively, explain why the denial is incorrect. Instructions on how 
to file a request for reconsideration for denied applications may be 
obtained from TSA at www.tsa.gov/real-id/mDL. TSA will notify States of 
its final determination within 60 calendar days of receipt of a State's 
request for reconsideration.
    (2) Final agency action. An adverse decision upon reconsideration 
is a final agency action. A State whose request for reconsideration has 
been denied may submit a new application at any time following the 
process set forth in paragraph (a) of this section.
    (d) Terms and conditions. A certificate of waiver will specify--
    (1) The effective date of the waiver;
    (2) The expiration date of the waiver; and
    (3) Any additional terms or conditions as necessary.
    (e) Limitations; suspension; termination--(1) Validity period. A 
certificate of waiver is valid for a period of 3 years from the date of 
issuance.
    (2) Reporting requirements. If a State, after it has been granted a 
certificate of waiver, makes any significant additions, deletions, or 
modifications to its mDL issuance processes, other than routine systems 
maintenance and software updates, that differ materially from the 
information the State provided in response to Sec. Sec.  37.10(a) and 
(b) under which the waiver was granted, the State must provide written 
notice of such changes to TSA at www.tsa.gov/real-id/mDL 60 calendar 
days before implementing such additions, deletions, or modifications. 
If a State is uncertain whether its particular changes require 
reporting, the State may contact TSA as directed at www.tsa.gov/real-id/mDL.
    (3) Compliance. A State that is issued a certificate of waiver 
under this section must comply with all applicable REAL ID requirements 
in Sec.  37.51(a), and with all terms and conditions specified in 
paragraph (d)(3) of this section.
    (4) Suspension. (i) TSA may suspend the validity of a certificate 
of waiver for any of the following reasons:
    (A) Failure to comply. TSA determines that a State has failed to 
comply with paragraph (d)(3) or (e)(2) of this section, or has issued 
mDLs in a manner not consistent with the information provided under 
Sec. Sec.  37.10(a) or (b); or
    (B) Threats to security, privacy, and data integrity. TSA reserves 
the right to suspend a certificate of waiver at any time upon discovery 
that Federal acceptance of a State's mDL is likely to cause imminent or 
serious threats to the security, privacy, or data integrity of any 
Federal agency. In such instances, TSA will provide written notice via 
email to each affected State as soon as practicable after discovery of 
the triggering event, including reasons for suspension, an explanation 
of any corrective actions a State must take to resume validity of its 
certificate of waiver.
    (ii) Before suspending a certificate of waiver under paragraph 
(e)(4)(i)(A) of this section, TSA will provide to such State written 
notice via email of intent to suspend, including an explanation of 
deficiencies and instructions on how the State may cure such 
deficiencies. States will have 30 calendar days to respond to the 
notice, and TSA will respond via email within 30 calendar days. TSA's 
response would include one of the following: withdrawal of the notice, 
a request for additional information, or a final suspension.
    (iii) If TSA issues a final suspension, TSA will temporarily remove 
the State from the list of mDLs approved for Federal acceptance for 
official purposes. TSA will continue to work with a State to whom TSA 
has issued a final suspension to resume validity of its existing 
certificate of waiver. A State that has been issued a final suspension 
may seek a new certificate of waiver by submitting a new application 
following the process set forth in paragraph (a) of this section.

[[Page 85379]]

    (5) Termination. (i) TSA may terminate a certificate of waiver at 
an earlier date than specified in paragraph (d)(2) of this section if 
TSA determines that a State--
    (A) Does not comply with applicable REAL ID requirements in Sec.  
37.51(a);
    (B) Is committing an egregious violation of requirements specified 
under paragraph (d)(3) or (e)(2) of this section that the State is 
unwilling to cure; or
    (C) Provided false information in support of its waiver 
application.
    (ii) Before terminating a certificate of waiver, TSA will provide 
the State written notice via email of intent to terminate, including 
findings on which the intended termination is based, together with a 
notice of opportunity to present additional information. States must 
respond to the notice within 7 calendar days, and TSA will reply via 
email within 30 calendar days. TSA's response would include one of the 
following: withdrawal of the notice, a request for additional 
information, or a final termination.
    (iii) If TSA issues a final termination, TSA will remove the State 
from the list of mDLs approved for Federal acceptance for official 
purposes. A State whose certificate of waiver has been terminated may 
seek a new waiver by submitting a new application following the process 
set forth in paragraph (a) of this section.
    (6) Reapplication. A State seeking extension of a certificate of 
waiver after expiration of its validity period must file a new 
application under paragraph (a) of this section.
    (f) Effect of status of certificate of waiver. (1) Issuance of a 
certificate of waiver is not a determination of compliance with any 
other section in this part.
    (2) An application for certificate of waiver that TSA has deemed 
insufficient or denied, or a certificate of waiver that TSA has deemed 
suspended, terminated, or expired, is not a determination of non-
compliance with any other section in this part.
    (g) SSI. Information provided in response to paragraphs (a), 
(b)(2), (c), (e)(2), (e)(4)(ii), and (e)(5)(ii) of this section may 
contain SSI, and if so, must be handled and protected in accordance 
with 49 CFR part 1520.


Sec.  37.10  Application criteria for issuance of temporary waiver for 
mDLs; audit report; waiver application guidance.

    (a) Application criteria. A State requesting a certificate of 
waiver must establish in its application that the mDLs for which the 
State seeks a waiver are issued with controls sufficient to resist 
compromise and fraud attempts, provide privacy protections sufficient 
to safeguard an mDL holder's identity data, and provide 
interoperability for secure acceptance by Federal agencies under the 
terms of a certificate of waiver. To demonstrate compliance with such 
requirements, a State must provide information, documents, and/or data 
sufficient to explain the means, which includes processes, 
methodologies, or policies, that the State has implemented to comply 
with requirements in this paragraph (a).
    (1) Provisioning. For both remote and in-person provisioning, a 
State must explain the means it uses to address or perform the 
following--
    (i) Data encryption. Securely encrypt mDL data and an mDL holder's 
Personally Identifiable Information when such data is transferred 
during provisioning, and when stored on the State's system(s) and on 
mDL holders' mobile devices.
    (ii) Escalated review. Review repeated failed attempts at 
provisioning, resolve such failures, and establish criteria to 
determine when the State will deny provisioning an mDL to a particular 
mDL applicant.
    (iii) Authentication. Confirm that an mDL applicant has control 
over the mobile device to which an mDL is being provisioned at the time 
of provisioning.
    (iv) Device identification keys. Confirm that the mDL applicant 
possesses the mDL device private key bound to the mDL during 
provisioning.
    (v) User identity verification. Prevent an individual from falsely 
matching with the licensing agency's records, including portrait 
images, of other individuals.
    (vi) Applicant presentation. Prevent physical and digital 
presentation attacks by detecting the liveness of an individual and any 
alterations to the individual's appearance during remote and in-person 
provisioning.
    (vii) DHS_compliance data element. Set the value of data element 
``DHS_compliance'', as required by paragraph (a)(4)(ii) of this 
section, to correspond to the REAL ID compliance status of the 
underlying physical driver's license or identification card that a 
State has issued to an mDL holder as follows--
    (A) ``F'' if the underlying card is REAL ID-compliant, or as 
otherwise required by AAMVA Mobile Driver's License (mDL) 
Implementation Guidelines, Section 3.2 (incorporated by reference; see 
Sec.  37.4); or
    (B) ``N'' if the underlying card is not REAL ID-compliant.
    (viii) Data record. Issue mDLs using data, including portrait 
image, of an individual that matches corresponding data in the database 
of the issuing State's driver's licensing agency for that individual.
    (ix) Records retention. Manage mDL records and related records, 
consistent with requirements set forth in AAMVA Mobile Driver's License 
(mDL) Implementation Guidelines (incorporated by reference; see Sec.  
37.4).
    (2) Issuance. A State must explain the means it uses to manage the 
creation, issuance, use, revocation, and destruction of the State's 
certificate systems and keys in full compliance with the requirements 
set forth in appendix A to this subpart.
    (3) Privacy. A State must explain the means it uses to protect 
Personally Identifiable Information during processing, storage, and 
destruction of mDL records and provisioning records.
    (4) Interoperability. A State must explain the means it uses to 
issue mDLs that are interoperable with ISO/IEC 18013-5:2021(E) and the 
``AAMVA mDL data element set'' defined in the AAMVA Mobile Driver's 
License (mDL) Implementation Guidelines (incorporated by reference; see 
Sec.  37.4) as follows:
    (i) A State must issue mDLs using the data model defined in ISO/IEC 
18103-5:2021(E) section 7 (incorporated by reference; see Sec.  37.4), 
using the document type ``org.iso.18013.5.1.mDL'', and using the name 
space ``org.iso.18013.5.1''. States must include the following mDL data 
elements defined as mandatory in ISO/IEC 18103-5:2021(E) Table 5: 
``family_name'', ``given_name'', ``birth_date'', ``issue_date'', 
``expiry_date'', ``issuing_authority'', ``document_number'', 
``portrait'', and must include the following mDL data elements defined 
as optional in Table 5: ``sex'', ``resident_address'', 
``portrait_capture_date'', ``signature_usual_mark''.
    (ii) States must use the AAMVA mDL data element set defined in 
AAMVA Mobile Driver's License (mDL) Implementation Guidelines, Section 
3.2 (incorporated by reference; see Sec.  37.4), using the namespace 
``org.iso.18013.5.1.aamva'' and must include the following data 
elements in accordance with the AAMVA mDL Implementation Guidelines: 
``DHS_compliance'', and ``DHS_temporary_lawful_status''.
    (iii) States must use only encryption algorithms, secure hashing 
algorithms, and digital signing algorithms as defined by ISO/IEC 18103-
5:2021(E), section 9 and Annex B (incorporated by reference; see Sec.  
37.4), and which are included in the following NIST Federal Information 
Processing Standards (FIPS): NIST FIPS PUB 180-4, NIST

[[Page 85380]]

FIPS PUB 186-5, NIST FIPS PUB 197-upd1, NIST FIPS PUB 198-1, and NIST 
FIPS PUB 202 (incorporated by reference; see Sec.  37.4).
    (b) Audit report. States must include with their applications a 
report of an audit that verifies the information provided under 
paragraph (a) of this section.
    (1) The audit must be conducted by a recognized independent entity, 
which may be an entity that is employed or contracted by a State and 
independent of the State's driver's licensing agency,--
    (i) Holding an active Certified Public Accountant license in the 
issuing State;
    (ii) Experienced with information systems security audits;
    (iii) Accredited by the issuing State; and
    (iv) Holding a current and active American Institute of Certified 
Public Accountants (AICPA) Certified Information Technology 
Professional (CITP) credential or ISACA (F/K/A Information Systems 
Audit and Control Association) Certified Information System Auditor 
(CISA) certification.
    (2) States must include information about the entity conducting the 
audit that identifies--
    (i) Any potential conflicts of interest; and
    (ii) Mitigation measures or other divestiture actions taken to 
avoid conflicts of interest.
    (c) Waiver application guidance--(1) Generally. TSA will publish 
``Mobile Driver's License Waiver Application Guidance'' to facilitate 
States' understanding of the requirements set forth in paragraph (a) of 
this section. The non-binding Guidance will include recommendations and 
examples of possible implementations for illustrative purposes only. 
TSA will publish the Guidance on the REAL ID website at www.tsa.gov/real-id/mDL.
    (2) Updates. TSA may periodically update its Waiver Application 
Guidance as necessary to provide additional information or 
recommendations to mitigate evolving threats to security, privacy, or 
data integrity. TSA will publish a notification in the Federal Register 
advising that updated Guidance is available, and TSA will publish the 
updated Guidance at www.tsa.gov/real-id/mDL and provide a copy to all 
States that have applied for or been issued a certificate or waiver.

0
5. Add appendix A to subpart A to read as follows:

Appendix A to Subpart A of Part 37--Mobile Driver's License Issuance 
Infrastructure Requirements

    A State that issues mDLs for acceptance by Federal agencies for 
official purposes as specified in the REAL ID Act must implement the 
requirements set forth in this appendix A in full compliance with 
the cited references. All references identified in this appendix A 
are incorporated by reference, see Sec.  37.4. If a State utilizes 
the services of a delegated third party, the State must ensure the 
delegated third party complies with all applicable requirements of 
this appendix A for the services provided.

------------------------------------------------------------------------
          Paragraph                           Requirement
------------------------------------------------------------------------
         1: Certificate Authority Certificate Life-Cycle Policy
------------------------------------------------------------------------
1.1..........................  Maintain a certificate policy, which
                                forms the State's certificate system
                                governance framework. If certificate
                                systems are managed at a facility not
                                controlled by the State, the State must
                                require any delegated third party to
                                comply with the State's certificate
                                policy. These requirements must be
                                implemented in full compliance with the
                                following references:
                                   CA/Browser Forum Baseline
                                   Requirements for the Issuance and
                                   Management of Publicly-Trusted
                                   Certificates, Sections 2, 4.3, 4.9,
                                   5, 6, as applicable;
                                   ISO/IEC 18013-5:2021(E),
                                   Annex B;
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST SP 800-57 Part 1, Rev.
                                   5, Sections 3, 5, 6, 7, 8;
                                   NIST SP 800-57 Part 2, Rev.
                                   1;
                                   NIST SP 800-57 Part 3, Rev.
                                   1, Sections 2, 3, 4, 8, 9;
                                   NIST 800-53 Rev. 5, AC-1, AT-
                                   1, AU-1, CA-1, CM-1, CP-1, IA-1, IR-
                                   1, MA-1, MP-1, PE-1, PL-1, PL-2, PL-
                                   8, PL-10, PM-1, PS-1, PT-1, RA-1, SA-
                                   1, SC-1, SI-1, and SR-1.
1.2..........................  Perform management and maintenance
                                processes which includes baseline
                                configurations, documentation, approval,
                                and review of changes to certificate
                                systems, issuing systems, certificate
                                management systems, security support
                                systems, and front end and internal
                                support systems. These requirements must
                                be implemented in full compliance with
                                the following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.IP-3; and
                                   NIST SP 800-53 Rev. 5, CM-1,
                                   CM-2, CM-3, CM-4, CM-5, CM-6, CM-8,
                                   CM-9, CM-10, CM-11, CM-12, MA-2, MA-
                                   3, MA-4, MA-5, MA-6, PE-16, PE-17, PE-
                                   18, PL-10, PL-11, RA-7, SA-2, SA-3,
                                   SA-4, SA-5, SA-8, SA-9, SA-10, SA-11,
                                   SA-15, SA-17, SA-22, SC-18, SI-6, SI-
                                   7, SR-2, SR-5.
1.3..........................  Apply recommended security patches, to
                                certificate systems within six months of
                                the security patch's availability,
                                unless the State documents that the
                                security patch would introduce
                                additional vulnerabilities or
                                instabilities that outweigh the benefits
                                of applying the security patch. These
                                requirements must be implemented in full
                                compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   ID.RA-1, PR.IP-12; and
                                   NIST SP 800-53 Rev. 5, SI-2,
                                   SI-3.
------------------------------------------------------------------------
               2: Certificate Authority Access Management
------------------------------------------------------------------------
2.1..........................  Grant administration access to
                                certificate systems only to persons
                                acting in trusted roles, and require
                                their accountability for the certificate
                                system's security, in full compliance
                                with the following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-4; and
                                   NIST SP 800-53 Rev. 5, AC-1,
                                   AC-2, AC-3, AC-5, AC-6, AC-8, AC-21,
                                   AC-22, AC-24, CA-6, PS-6.
2.2..........................  Change authentication keys and passwords
                                for any trusted role account on a
                                certificate system whenever a person's
                                authorization to administratively access
                                that account on the certificate system
                                is changed or revoked, in full
                                compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-1; and
                                   NIST SP 800-53 Rev. 5, AC-1,
                                   AC-2, AC-3, AC-6, IA-1, IA-2, PS-4,
                                   PS-5.

[[Page 85381]]

 
2.3..........................  Follow a documented procedure for
                                appointing individuals to trusted roles
                                and assigning responsibilities to them,
                                in full compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-1; and
                                   NIST SP 800-53 Rev. 5, AC-1,
                                   AC-2, AC-3, AC-5, AC-6, IA-1, IA-2.
2.4..........................  Document the responsibilities and tasks
                                assigned to trusted roles and implement
                                ``separation of duties'' for such
                                trusted roles based on the security-
                                related concerns of the functions to be
                                performed, in full compliance with the
                                following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure
                                   Cybersecurity--PR.AC-4; and
                                   NIST SP 800-53 Rev. 5, AC-1,
                                   AC-2, AC-5, AC-6, MP-2, PS-9.
2.5..........................  Restrict access to secure zones and high
                                security zones to only individuals
                                assigned to trusted roles, in full
                                compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC; and
                                   NIST SP 800-53 Rev. 5, AC-1,
                                   AC-2, AC-3, AC-5, AC-6, MP-2, PS-1,
                                   PS-6.
2.6..........................  Restrict individuals assigned to trusted
                                roles from acting beyond the scope of
                                such role when performing administrative
                                tasks assigned to that role, in full
                                compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-1, PR.AC-4, PR.AC-6, PR.AT-2;
                                   and
                                   NIST SP 800-53 Rev. 5, AT-2,
                                   AT-3, PM-13, PM-14.
2.7..........................  Require employees and contractors to
                                observe the principle of ``least
                                privilege'' when accessing or
                                configuring access privileges on
                                certificate systems, in full compliance
                                with the following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-4, PR.AC-2; and
                                   NIST SP 800-53 Rev. 5, AC-1,
                                   AC-2, AC-3, AC-5, AC-6, PE-1, PE-3,
                                   PL-4.
2.8..........................  Require that individuals assigned to
                                trusted roles use a unique credential
                                created by or assigned to them in order
                                to authenticate to certificate systems,
                                in full compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-1, PR.AC-6, PR.AC-4, PR.AC-7;
                                   and
                                   NIST SP 800-53 Rev. 5, AC-1,
                                   IA-1, IA-2, IA-3, IA-5, IA-8, IA-12.
2.9..........................  Lockout account access to certificate
                                systems after a maximum of five failed
                                access attempts, provided that this
                                security measure:
                                  1. Is supported by the certificate
                                   system;
                                  2. Cannot be leveraged for a denial-of-
                                   service attack; and
                                  3. Does not weaken the security of
                                   this authentication control.
                               These requirements must be implemented in
                                full compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-7; and
                                   NIST SP 800-53 Rev. 5, AC-7.
2.10.........................  Implement controls that disable all
                                privileged access of an individual to
                                certificate systems within 4 hours of
                                termination of the individual's
                                employment or contracting relationship
                                with the State or Delegated Third Party,
                                in full compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-7; and
                                   NIST SP 800-53 Rev. 5, AC-1,
                                   AC-2, PS-1, PS-4, PS-7.
2.11.........................  Implement multi-factor authentication or
                                multi-party authentication for
                                administrator access to issuing systems
                                and certificate management systems, in
                                full compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity-
                                   PR.AC-6, PR.AC-7; and
                                   NIST SP 800-53 Rev. 5, AC-14,
                                   IA-1, IA-2, IA-3, IA-5, IA-8, IA-11.
2.12.........................  Implement multi-factor authentication for
                                all trusted role accounts on certificate
                                systems, including those approving the
                                issuance of a Certificate and delegated
                                third parties, that are accessible from
                                outside a secure zone or high security
                                zone, in full compliance with the
                                following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-7; and
                                   NIST SP 800-53 Rev. 5, AC-17,
                                   AC-18, AC-19, AC-20, IA-1, IA-2, IA-
                                   3, IA-4, IA-5, IA-6, IA-8.
2.13.........................  If multi-factor authentication is used,
                                implement only multi-factor
                                authentication that achieves an
                                Authenticator Assurance Level equivalent
                                to AAL2 or higher, in full compliance
                                with the following references:
                                   NIST SP 800-63-3, Sections
                                   4.3, 6.2;
                                   NIST SP 800-63B, Section 4.2;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-7; and
                                   NIST SP 800-53 Rev. 5, IA-5,
                                   IA-7.
2.14.........................  If multi-factor authentication is not
                                possible, implement a password policy
                                for trusted role accounts in full
                                compliance with NIST SP 800-63B, Section
                                5.1.1.2, Memorized Secret Verifiers, and
                                implement supplementary risk controls
                                based on a system risk assessment.
2.15.........................  Require trusted roles to log out of or
                                lock workstations when no longer in use,
                                in full compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements; and
                                   NIST SP 800-53 Rev. 5, AC-11,
                                   AC-12.
2.16.........................  Configure workstations with inactivity
                                time-outs that log the user off or lock
                                the workstation after a set time of
                                inactivity without input from the user.
                                A workstation may remain active and
                                unattended if the workstation is
                                otherwise secured and running
                                administrative tasks that would be
                                interrupted by an inactivity time-out or
                                system lock. These requirements must be
                                implemented in full compliance with the
                                following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements; and
                                   NIST SP 800-53 Rev. 5, AC-11,
                                   AC-12.

[[Page 85382]]

 
2.17.........................  Review all system accounts at least every
                                three months and deactivate any accounts
                                that are no longer necessary for
                                operations, in full compliance with the
                                following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-1; and
                                   NIST SP 800-53 Rev. 5, AC-2.
2.18.........................  Restrict remote administration or access
                                to a State issuing system, certificate
                                management system, or security support
                                system, including access to cloud
                                environments, except when:
                                  1. The remote connection originates
                                   from a device owned or controlled by
                                   the State or delegated third party;
                                  2. The remote connection is through a
                                   temporary, non-persistent encrypted
                                   channel that is supported by Multi-
                                   Factor Authentication; and
                                  3. The remote connection is made to a
                                   designated intermediary device--
                                  a. located within the State's network
                                   or secured Virtual Local Area Network
                                   (VLAN),
                                  b. secured in accordance with the
                                   requirements of this Appendix, and
                                  c. that mediates the remote connection
                                   to the issuing system.
                               These Requirements must be implemented in
                                full compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-3, PR.AC-7; and
                                   NIST SP 800-53 Rev. 5, AC-17,
                                   AC-19, AC-20, IA-3, IA-4, IA-6.
------------------------------------------------------------------------
            3: Facility, Management, and Operational Controls
------------------------------------------------------------------------
3.1..........................  Restrict physical access authorizations
                                at facilities where certificate systems
                                reside, including facilities controlled
                                by a delegated third party, by:
                                  1. Verifying individual access
                                   authorizations before granting access
                                   to the facility;
                                  2. Controlling ingress and egress to
                                   the facility using appropriate
                                   security controls;
                                  3. Controlling access to areas within
                                   the facility designated as publicly
                                   accessible;
                                  4. Escorting visitors, logging visitor
                                   entrance and exit from facilities,
                                   and limiting visitor activities
                                   within facilities to minimize risks
                                   to certificate systems;
                                  5. Securing physical keys,
                                   combinations, and other physical
                                   access devices;
                                  6. Maintaining an inventory of
                                   physical keys, combinations, and
                                   physical access devices; conduct
                                   review of this inventory at least
                                   annually; and
                                  7. Changing combinations and keys
                                   every three years or when physical
                                   keys are lost, combinations are
                                   compromised, or when individuals
                                   possessing the physical keys or
                                   combinations are transferred or
                                   terminated.
                               These requirements must be implemented in
                                full compliance with the following
                                reference:
                                   NIST SP 800-53 Rev. 5, PE-2,
                                   PE-3, PE-4, PE-5, PE-8.
3.2..........................  Implement controls to protect certificate
                                system operations and facilities where
                                certificate systems reside from
                                environmental damage and/or physical
                                breaches, including facilities
                                controlled by a delegated third party,
                                in full compliance with the following
                                reference:
                                   NIST SP 800-53 Rev. 5, CP-2,
                                   CP-4, CP-6, CP-7, CP-8, CP-9, CP-10,
                                   PE-2, PE-9, PE-10, PE-11, PE-12, PE-
                                   13, PE-14, PE-15, PE-21.
3.3..........................  If certificate systems are managed at a
                                facility not controlled by the State,
                                implement controls to prevent risks to
                                such facilities presented by foreign
                                ownership, control, or influence, in
                                full compliance with the following
                                reference:
                                   NIST SP 800-53 Rev. 5, SR-2,
                                   SR-3, SR-4, SR-6.
3.4..........................  Implement controls to prevent supply
                                chain risks for certificate systems
                                including:
                                  1. Employing acquisition strategies,
                                   tools, and methods to mitigate risks;
                                  2. Establishing agreements and
                                   procedures with entities involved in
                                   the supply chain of certificate
                                   systems;
                                  3. Implementing an inspection and
                                   tamper protection program for
                                   certificate systems components;
                                  4. Developing and implementing
                                   component authenticity policies and
                                   procedures; and
                                  5. Developing and implementing
                                   policies and procedures for the
                                   secure disposal of certificate
                                   systems components.
                               These requirements must be implemented in
                                full compliance with the following
                                reference:
                                   NIST SP 800-53 Rev. 5, SR-5,
                                   SR-8, SR-9, SR-10, SR-11, SR-12.
------------------------------------------------------------------------
                     4: Personnel Security Controls
------------------------------------------------------------------------
4.1..........................  Implement and disseminate to personnel
                                with access to certificate systems and
                                facilities, including facilities
                                controlled by a delegated third party, a
                                policy to control insider threat
                                security risks that:
                                  1. Addresses the purpose, scope,
                                   roles, responsibilities, management
                                   commitment, coordination among State
                                   entities, and compliance;
                                  2. Complies with all applicable laws,
                                   executive orders, directives,
                                   regulations, policies, standards, and
                                   guidelines; and
                                  3. Designates an official in a trusted
                                   role to manage the development,
                                   documentation, and dissemination of
                                   the policy and procedures.
                               These requirements must be implemented in
                                full compliance with the following
                                reference:
                                   NIST SP 800-53 Rev. 5, MA-5,
                                   PS-1, PS-8.
4.2..........................  Assign a risk designation to all
                                organizational positions with access to
                                certificate systems and facilities, in
                                full compliance with the following
                                reference:
                                   NIST SP 800-53 Rev. 5, PS-2,
                                   PS-9.
4.3..........................  Establish screening criteria for
                                personnel filling organization positions
                                with access to certificate system and
                                facilities, in full compliance with the
                                following reference:
                                   NIST SP 800-53 Rev. 5, PS-2,
                                   PS-3, SA-21.
4.4..........................  Screen individual personnel in
                                organizational positions with access to
                                certificate systems and facilities, in
                                full compliance with the following
                                reference:
                                   NIST SP 800-53 Rev. 5, PS-3.
4.5..........................  Upon termination of individual
                                employment, State or delegated third
                                party must:
                                  1. Disable system access within 4
                                   hours;

[[Page 85383]]

 
                                  2. Terminate or revoke any
                                   authenticators and credentials
                                   associated with the individual;
                                  3. Conduct exit interviews that
                                   include--
                                  a. Notifying terminated individuals of
                                   applicable, legally binding post-
                                   employment requirements for the
                                   protection of organizational
                                   information, and
                                  b. Requiring terminated individuals to
                                   sign an acknowledgment of post-
                                   employment requirements as part of
                                   the organizational termination
                                   process;
                                  4. Retrieve all security-related
                                   organizational system-related
                                   property; and
                                  5. Retain access to organizational
                                   information and systems formerly
                                   controlled by terminated individual.
                               These requirements must be implemented in
                                full compliance with the following
                                reference:
                                   NIST SP 800-53 Rev. 5, PS-4.
4.6..........................  Review and update personnel security
                                policy, procedures, and position risk
                                designations at least once every 12
                                months, in full compliance with the
                                following reference:
                                   NIST SP 800-53 Rev. 5, PS-1,
                                   PS-2.
4.7..........................  Provide training to all personnel
                                performing certificate system duties, on
                                the following topics:
                                  1. Fundamental principles of Public
                                   Key Infrastructure;
                                  2. Authentication and vetting policies
                                   and procedures, including the State's
                                   certificate policy;
                                  3. Common threats to certificate
                                   system processes, including phishing
                                   and other social engineering tactics;
                                  4. Role specific technical functions
                                   related to the administration of
                                   certificate systems; and
                                  5. The requirements of this Appendix.
                               These requirements must be implemented in
                                full compliance with the following
                                references:
                                   CA/Browser Forum Baseline
                                   Requirements for the Issuance and
                                   Management of Publicly-Trusted
                                   Certificates, Section 5.3.3; and
                                   NIST SP 800-53 Rev. 5, CP-3,
                                   IR-2, SA-16.
4.8..........................  Maintain records of training as required
                                by paragraph 4.7 of this Appendix, in
                                full compliance with the following
                                references:
                                   CA/Browser Forum Baseline
                                   Requirements for the Issuance and
                                   Management of Publicly-Trusted
                                   Certificates, Sections 5.3.3, 5.4.1;
                                   and
                                   NIST SP 800-53 Rev. 5, AT-4.
4.9..........................  Implement policies and processes to
                                prevent any delegated third party
                                personnel managing certificate systems
                                at a facility not controlled by a State
                                from being subject to risks presented by
                                foreign control or influence, in full
                                compliance with the following reference:
                                   NIST SP 800-53 Rev. 5, SR-3,
                                   SR-4, SR-6.
------------------------------------------------------------------------
                     5: Technical Security Controls
------------------------------------------------------------------------
5.1..........................  Segment certificate systems into networks
                                based on their functional or logical
                                relationship, such as separate physical
                                networks or VLANs, in full compliance
                                with the following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-5; and
                                   NIST SP 800-53 Rev. 5, AC-4,
                                   AC-10, CA-3, CA-9, MP-3, MP-4, RA-2,
                                   RA-9, SC-2, SC-3, SC-4, SC-8.
5.2..........................  Apply equivalent security controls to all
                                systems co-located in the same network
                                (including VLANs) with a certificate
                                system, in full compliance with the
                                following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-5; and
                                   NIST SP 800-53 Rev. 5, MP-5,
                                   MP-6, MP-7, RA-2, SC-7, SC-10, SC-39.
5.3..........................  Maintain State root certificate authority
                                systems in a high security zone and in
                                an offline state or air-gapped from all
                                other network operations. If operated in
                                a cloud environment, State root
                                certificate authority systems must use a
                                dedicated VLAN with the sole purpose of
                                Issuing Authority Certificate Authority
                                (IACA) root certificate functions and be
                                in an offline state when not in use for
                                IACA root certificate functions. These
                                requirements must be implemented in full
                                compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements; and
                                   NIST SP 800-53 Rev. 5, SC-32.
5.4..........................  Protect IACA root certificate private
                                keys using dedicated hardware security
                                modules (HSMs), either managed on-
                                premises or provided through cloud
                                platforms, that are under sole control
                                of the State or delegated third party.
                                These requirements must be implemented
                                in full compliance with the following
                                references:
                                   NIST SP 800-57 Part 1, Rev.
                                   5;
                                   NIST FIPS PUB 140-3; and
                                   NIST SP 800-53 Rev. 5, SC-12,
                                   SC-13.
5.5..........................  Protect certificate systems private keys
                                using NIST FIPS PUB 140-3 Level 3 or
                                Level 4 certified HSMs, in full
                                compliance with the following
                                references:
                                   NIST FIPS PUB 140-3; and
                                   NIST SP 800-53 Rev. 5, SC-12,
                                   SC-13.
5.6..........................  Protect document signer private keys
                                using HSMs, either managed on-premises
                                or provided through cloud platforms,
                                that are under sole control of the State
                                or delegated third party. These
                                requirements must be implemented in full
                                compliance with the following
                                references:
                                   NIST SP 800-57 Part 1, Rev.
                                   5;
                                   NIST FIPS PUB 140-3; and
                                   NIST SP 800-53 Rev. 5, SC-12,
                                   SC-13.
5.7..........................  Protect certificate systems document
                                signer keys using NIST FIPS PUB 140-3
                                Level 2, Level 3, or Level 4 certified
                                HSMs, in full compliance with the
                                following references:
                                   NIST FIPS PUB 140-3; and
                                   NIST SP 800-53 Rev. 5, SC-12,
                                   SC-13.
5.8..........................  Maintain and protect issuing systems,
                                certificate management systems, and
                                security support systems in at least a
                                secure zone, in full compliance with the
                                following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements; and

[[Page 85384]]

 
                                   NIST SP 800-53 Rev. 5, SC-15,
                                   SC-20, SC-21, SC-22, SC-24, SC-28, SI-
                                   16.
5.9..........................  Implement and configure: security support
                                systems that protect systems and
                                communications between systems inside
                                secure zones and high security zones,
                                and communications with non-certificate
                                systems outside those zones (including
                                those with organizational business units
                                that do not provide PKI-related
                                services) and those on public networks.
                                These requirements must be implemented
                                in full compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements; and
                                   NIST SP 800-53 Rev. 5, SC-15,
                                   SC-20, SC-21, SC-22, SC-24, SC-28, SI-
                                   16.
5.10.........................  Configure each network boundary control
                                (firewall, switch, router, gateway, or
                                other network control device or system)
                                with rules that support only the
                                services, protocols, ports, and
                                communications that the State has
                                identified as necessary to its
                                operations. These requirements must be
                                implemented in full compliance with the
                                following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements; and
                                   NIST SP 800-53 Rev. 5, AC-4,
                                   SI-3, SI-8, SC-7, SC-10, SC-23, CM-7.
5.11.........................  Configure issuing systems, certificate
                                management systems, security support
                                systems, and front end and internal
                                support systems by removing or disabling
                                all accounts, applications, services,
                                protocols, and ports that are not used
                                in the State's or delegated third
                                party's operations and restricting use
                                of such systems to only those that are
                                approved by the State or delegated third
                                party. These requirements must be
                                implemented in full compliance with the
                                following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.PT-3; and
                                   NIST SP 800-53 Rev. 5, CM-7.
5.12.........................  Implement multi-factor authentication on
                                each component of the certificate system
                                that supports multi-factor
                                authentication, in full compliance with
                                the following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.AC-7; and
                                   NIST SP 800-53 Rev. 5, IA-2.
5.13.........................  Generate IACA root certificate key pairs
                                with a documented and auditable multi-
                                party key ceremony, performing at least
                                the following steps:
                                  1. Prepare and follow a key generation
                                   script;
                                  2. Require a qualified person who is
                                   in a trusted role and not a
                                   participant in the key generation to
                                   serve as a live witness of the full
                                   process of generating the IACA root
                                   certificate key pair, or record a
                                   video in lieu of a live witness;
                                  3. Require the qualified witness to
                                   issue a report confirming that the
                                   State followed its key ceremony
                                   during its key and certificate
                                   generation process, and confirming
                                   that controls were used to protect
                                   the integrity and confidentiality of
                                   the key pair;
                                  4. Generate the IACA root certificate
                                   key pair in a physically secured
                                   environment as described in the
                                   State's certificate policy and/or
                                   certification practice statement;
                                  5. Generate the IACA root certificate
                                   key pair using personnel in trusted
                                   roles under the principles of
                                   multiple person control and split
                                   knowledge. IACA root certificate key
                                   pair generation requires a minimum of
                                   two persons, consisting of at least
                                   one key generation ceremony
                                   administrator and one qualified
                                   witness);
                                  6. Log the IACA root certificate key
                                   pair generation activities, sign the
                                   witness report (and video file, if
                                   applicable), with a document signing
                                   key which has been signed by the IACA
                                   root certificate private key, and
                                   include signed files and document
                                   signing public certificate with the
                                   IACA root certificate key pair
                                   generation log files; and
                                  7. Implement controls to confirm that
                                   the IACA root certificate private key
                                   was generated and protected in
                                   conformance with the procedures
                                   described in the State's certificate
                                   policy and/or certification practice
                                   statement and the State's key
                                   generation script. These requirements
                                   must be implemented in full
                                   compliance with the following
                                   reference:
                                    CA/Browser Forum Baseline
                                    Requirements for the Issuance and
                                    Management of Publicly-Trusted
                                    Certificates, Section 6.1.1.1.
5.14.........................  Generate document signer key pairs with a
                                documented and auditable multi-party key
                                ceremony, performing at least the
                                following steps:
                                  1. Prepare and follow a key generation
                                   script;
                                  2. Generate the document signer key
                                   pairs in a physically secured
                                   environment as described in the
                                   State's certificate policy and/or
                                   certification practice statement;
                                  3. Generate the document signer key
                                   pairs using only personnel in trusted
                                   roles under the principles of
                                   multiple person control and split
                                   knowledge. document signer key pair
                                   generation requires a, minimum of two
                                   persons, consisting of at least one
                                   key generation ceremony administrator
                                   and at least one qualified witness or
                                   at least two key generation ceremony
                                   administrators when split knowledge
                                   generation is in place;
                                  4. If a witness observes the key
                                   generation, require a qualified
                                   person who is in a trusted role and
                                   not a participant in the key
                                   generation to serve as a live witness
                                   of the full process of generating the
                                   document signer key pair; and
                                  5. Require the qualified witness to
                                   issue a report confirming that the
                                   State followed its key ceremony
                                   during its key and certificate
                                   generation process and confirming
                                   that controls were used to rotect the
                                   integrity and confidentiality of the
                                   key pair;
                                  6. Log the document signer key pairs
                                   generation activities and signed
                                   witness report, if applicable; and
                                  7. Implement controls to confirm that
                                   the document signer private key was
                                   generated and protected in
                                   conformance with the procedures
                                   described in the State's certificate
                                   policy and/or certification practice
                                   statement and the State's key
                                   generation script. These requirements
                                   must be implemented in full
                                   compliance with the following
                                   reference:
                                    CA/Browser Forum Baseline
                                    Requirements for the Issuance and
                                    Management of Publicly-Trusted
                                    Certificates, Section 6.1.1.1.
------------------------------------------------------------------------
                           6: Threat Detection
------------------------------------------------------------------------
6.1..........................  Implement a System under the control of
                                State or delegated third party trusted
                                roles that continuously monitors,
                                detects, and alerts personnel to any
                                modification to certificate systems,
                                issuing systems, certificate management
                                systems, security support systems, and
                                front-end/internal-support systems,
                                unless the modification has been
                                authorized through a change management
                                process. The State or delegated third
                                party must respond to the alert and
                                initiate a plan of action within at most
                                24 hours. These requirements must be
                                implemented in full compliance with the
                                following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;

[[Page 85385]]

 
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   DE.CM-7; and
                                   NIST SP 800-53 Rev. 5, CA-7,
                                   CM-3, SI-5.
6.2..........................  Identify any certificate systems under
                                the control of State or delegated third
                                party trusted roles that are capable of
                                monitoring and logging system activity,
                                and enable those systems to log and
                                continuously monitor the events
                                specified in paragraph 7 of this
                                Appendix. These requirements must be
                                implemented in full compliance with the
                                following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements; and
                                   NIST SP 800-53 Rev. 5, AU-12.
6.3..........................  Monitor the integrity of the logging
                                processes for application and system
                                logs using either continuous automated
                                monitoring and alerting, or human
                                review, to confirm that logging and log-
                                integrity functions meet the
                                requirements set forth in paragraph 7 of
                                this Appendix. Alternatively, if a human
                                review is utilized and the system is
                                online, the process must be performed at
                                least once every 31 calendar days. These
                                requirements must be implemented in full
                                compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements; and
                                   NIST SP 800-53 Rev. 5, AU-1,
                                   AU-6, AU-5, AU-9, AU-12.
------------------------------------------------------------------------
                               7: Logging
------------------------------------------------------------------------
7.1..........................  Log records must include the following
                                elements:
                                  1. Date and time of record;
                                  2. Identity of the person or non-
                                   person entity making the journal
                                   record; and
                                  3. Description of the record.
                               These requirements must be implemented in
                                full compliance with the following
                                references:
                                   CA/Browser Forum Baseline
                                   Requirements for the Issuance and
                                   Management of Publicly-Trusted
                                   Certificates Section 5.4.1;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.PT-1; and
                                   NIST SP 800-53 Rev. 5, AU-2,
                                   AU-3, AU-8.
7.2..........................  Log at least certificate system and key
                                lifecycle events for IACA root
                                certificates, document signer
                                certificates, and other intermediate
                                certificates, including:
                                  1. Key generation, backup, storage,
                                   recovery, archival, and destruction;
                                  2. Certificate requests, renewal, and
                                   re-key requests, and revocation;
                                  3. Approval and rejection of
                                   certificate requests;
                                  4. Cryptographic device lifecycle
                                   management events;
                                  5. Generation of Certificate
                                   Revocation Lists and OCSP entries;
                                  6. Introduction of new Certificate
                                   Profiles and retirement of existing
                                   Certificate Profiles;
                                  7. Issuance of certificates; and
                                  8. All verification activities
                                   required in paragraph 2 of this
                                   Appendix and the State's
                                   Certification System Policy.
                               These requirements must be implemented in
                                full compliance with the following
                                references:
                                   CA/Browser Forum Baseline
                                   Requirements for the Issuance and
                                   Management of Publicly-Trusted
                                   Certificates Section 5.4.1;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.PT-1; and
                                   NIST SP 800-53 Rev. 5, AU-1,
                                   AU-2, AU-3, AU-4, AU-7, AU-10, SC-17.
7.3..........................  Log certificate system Security events,
                                including:
                                  1. Successful and unsuccessful PKI
                                   system access attempts;
                                  2. PKI and security system actions
                                   performed;
                                  3. Security profile changes;
                                  4. Installation, update and removal of
                                   software on a certificate system;
                                  5. System crashes, hardware failures,
                                   and other anomalies;
                                  6. Firewall and router activities; and
                                  7. Entries to and exits from the IACA
                                   facility if managed on-premises.
                               These requirements must be implemented in
                                full compliance with the following
                                references:
                                   CA/Browser Forum Baseline
                                   Requirements for the Issuance and
                                   Management of Publicly-Trusted
                                   Certificates Section 5.4.1; and
                                   NIST SP 800-53 Rev. 5, AU-2,
                                   AU-3, AU-4, AU-7, AU-10, CM-3, PE-6,
                                   SI-11, SI-12.
7.4..........................  Maintain certificate system logs for a
                                period not less than 36 months, in full
                                compliance with the following
                                references:
                                   CA/Browser Forum Baseline
                                   Requirements for the Issuance and
                                   Management of Publicly-Trusted
                                   Certificates Section 5.4.3; and
                                   NIST SP 800-53 Rev. 5, AU-4,
                                   AU-10, AU-11.
7.5..........................  Maintain IACA root certificate and key
                                lifecycle management event logs for a
                                period of not less than 24 months after
                                the destruction of the IACA root
                                certificate private key, in full
                                compliance with the following
                                references:
                                   CA/Browser Forum Baseline
                                   Requirements for the Issuance and
                                   Management of Publicly-Trusted
                                   Certificates Section 5.4.3;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.PT-1; and
                                   NIST SP 800-53 Rev. 5, AU-2,
                                   AU-4, AU-10, AU-11.
------------------------------------------------------------------------
                  8: Incident Response & Recovery Plan
------------------------------------------------------------------------
8.1..........................  Implement automated mechanisms under the
                                control of State or delegated third
                                party trusted roles to process logged
                                system activity and alert personnel,
                                using notices provided to multiple
                                destinations, of possible critical
                                security events. These requirements must
                                be implemented in full compliance with
                                the following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   DHS National Cyber Incident
                                   Response Plan;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   RS.CO-5, RS.AN-5; and
                                   NIST SP 800-53 Rev. 5, AU-1,
                                   AU-2, AU-6, IR-5, SI-4, SI-5.

[[Page 85386]]

 
8.2..........................  Require trusted role personnel to follow
                                up on alerts of possible critical
                                security events, in full compliance with
                                the following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   DHS National Cyber Incident
                                   Response Plan; and
                                   NIST SP 800-53 Rev. 5, AC-5,
                                   AC-6, IR-1, IR-4, IR-7, SI-4, SI-5.
8.3..........................  If continuous automated monitoring and
                                alerting is utilized, respond to the
                                alert and initiate a plan of action
                                within 24 hours, in full compliance with
                                the following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   DHS National Cyber Incident
                                   Response Plan; and
                                   NIST SP 800-53 Rev. 5, IR-1,
                                   PM-14, SI-4.
8.4..........................  Implement intrusion detection and
                                prevention controls under the management
                                of State or delegated third party
                                individuals in trusted roles to protect
                                certificate systems against common
                                network and system threats, in full
                                compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   CISA Federal Government
                                   Cybersecurity Incident &
                                   Vulnerability Response Playbooks;
                                   DHS National Cyber Incident
                                   Response Plan;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   DE.AE-2, DE.AE-3; DE.DP-1; and
                                   NIST SP 800-53 Rev. 5, IR-1,
                                   IR-4, IR-7, IR-8, SI-4, SI-5.
8.5..........................  Document and follow a vulnerability
                                correction process that addresses the
                                identification, review, response, and
                                remediation of vulnerabilities, in full
                                compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   CISA Federal Government
                                   Cybersecurity Incident &
                                   Vulnerability Response Playbooks;
                                   DHS National Cyber Incident
                                   Response Plan;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.IP-9; and
                                   NIST SP 800-53 Rev. 5, CA-5,
                                   CP-2, CP-4, CP-6, CP-7, CP-8, CP-9,
                                   CP-10, SI-1, SI-2, SI-10.
8.6..........................  Notify TSA of any reportable
                                cybersecurity incident, as defined in
                                the TSA Cybersecurity Lexicon available
                                at www.tsa.gov, that may compromise the
                                integrity of the certificate systems
                                within no more than 72 hours of the
                                discovery of the incident. Reports must
                                be made as directed at www.tsa.gov/real-id/mDL id/mDL. These requirements must be
                                implemented in full compliance with the
                                following references:
                                   DHS National Cyber Incident
                                   Response Plan; and
                                   NIST SP 800-53 Rev. 5, IR-6.
                               Information provided in response to this
                                paragraph may contain SSI, and if so,
                                must be handled and protected in
                                accordance with 49 CFR part 1520.
8.7..........................  Undergo a vulnerability scan on public
                                and private IP addresses identified by
                                the State or delegated third party as
                                the State's or delegated third party's
                                certificate systems at least every three
                                months, and after performing any
                                significant system or network changes.
                                These requirements must be implemented
                                in full compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   DHS National Cyber Incident
                                   Response Plan; and
                                   NIST SP 800-53 Rev. 5, CM-1,
                                   CM-4, IR-3, RA-1, RA-5.
8.8..........................  Undergo a penetration test on the State's
                                and each delegated third party's
                                certificate systems at least every 12
                                months, and after performing any
                                significant infrastructure or
                                application upgrades or modifications.
                                These requirements must be implemented
                                in full compliance with the following
                                references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   DHS National Cyber Incident
                                   Response Plan;
                                   NIST Framework for Improving
                                   Critical Infrastructure Cybersecurity
                                   PR.IP-7; and
                                   NIST SP 800-53 Rev. 5, CA-2,
                                   CA-8, CM-4, RA-3.
8.9..........................  Record evidence that each vulnerability
                                scan and penetration test was performed
                                by a person or entity with the requisite
                                skills, tools, proficiency, code of
                                ethics, and independence.
8.10.........................  Review State and/or delegated third party
                                incident response & recovery plan at
                                least once during every 12 months to
                                address cybersecurity threats and
                                vulnerabilities, in full compliance with
                                the following references:
                                   CA/Browser Forum Network and
                                   Certificate System Security
                                   Requirements;
                                   DHS National Cyber Incident
                                   Response Plan; and
                                   NIST SP 800-53 Rev. 5, CP-2,
                                   IR-1, IR-2, SC-5.
------------------------------------------------------------------------


    Dated: October 10, 2024.
David P. Pekoske,
Administrator.
[FR Doc. 2024-23881 Filed 10-24-24; 8:45 am]
BILLING CODE 9110-05-P