Good morning, Senator Inouye, Senator Stevens, and members of the Committee.  Thank you for this opportunity to speak with you about the current status and the way ahead for the Transportation Worker Identification Credential (TWIC) program.  Specifically, I would like to update the Committee on the Coast Guard’s efforts, in partnership with the Transportation Security Administration (TSA), to implement a program that will strengthen maritime security while balancing the need to facilitate commerce and minimize negative impacts to our port and vessel stakeholders.

 

As a result of the Maritime Transportation Security Act (MTSA), the Coast Guard developed regulations establishing security requirements for maritime vessels and facilities posing a high risk of being involved in a transportation security incident.  As part of these regulations, these vessels and facilities were required to conduct detailed security assessments and in turn, develop security plans under which owners and operators have been required to operate since July 1, 2004.  The Coast Guard has been responsible for implementing and ensuring compliance with MTSA. 

 

This same law requires the Department of Homeland Security (DHS) to issue a biometric transportation security card in order to be granted unescorted access to secure areas of vessels and facilities to those individuals who satisfactorily pass a security threat assessment.  TSA was assigned this requirement, and because of our overlapping responsibilities, the Coast Guard and TSA formally joined efforts to carry out the TWIC program in November 2004.  In this partnership, TSA is responsible for TWIC enrollment, security threat assessment and adjudication, card production, TWIC issuance, conduct of the TWIC appeal and waiver process, and management of government support systems.  The Coast Guard is responsible for establishing and enforcing TWIC access control requirements at regulated vessels and facilities.  Both agencies work very closely every day to make sure that our efforts achieve the objective of increased security that MTSA intended. 

 

The TSA and the Coast Guard published a joint TWIC Notice of Proposed Rule Making (NPRM) on May 22, 2006.  Following the publication of the NPRM and the subsequent comment period, Congress enacted the Security and Accountability for Every (SAFE) Port Act of 2006. The SAFE Port Act placed new statutory requirements for the TWIC Program. Among these requirements were: the commencement of a pilot program to test the viability of TWIC cards and readers in the maritime environment; deployment of the program in priority ports by set deadlines; inclusion of a provision to allow newly hired employees to work while the TWIC application was being processed; and concurrent processing of the TWIC and merchant mariner applications.

 

TSA and the Coast Guard published the TWIC final rule on January 25, 2007 in which the Coast Guard’s MTSA regulations and TSA’s Hazardous Material Endorsement regulations were amended to incorporate the TWIC requirements.  This final rule did not require the installation of card readers at vessels and facilities as originally proposed in the NPRM.  This requirement will be proposed during a second notice and comment rulemaking.

In the TWIC Program, TSA is responsible for TWIC enrollment and issuance, including hardware and software applications and the data storage system. This responsibility involves conducting a security threat assessment on TWIC applicants, which includes a check against terrorist watch lists, an immigration status check, and a fingerprint-based criminal history records check, as well as perpetual vetting against the terrorist watch lists throughout the 5 year life of the TWIC. The Coast Guard is responsible for implementing TWIC in the maritime environment.  The Coast Guard is achieving this by requiring a TWIC for all individuals who need unescorted access to secure areas of MTSA regulated facilities and vessels and requiring a TWIC for all U.S. merchant mariners with active credentials.

 

TSA and the Coast Guard are also working together to develop several supplementary documents to help those affected by this regulation.  These documents include a Navigation and Vessel Inspection Circular (NVIC); two Small Business Administration Compliance Guides; fliers for TWIC applicants; and internal guidance documents for training, implementation, and enforcement for Coast Guard and TSA personnel. Since publication of the Final Rule, the Coast Guard and TSA have conducted outreach at national venues such as the Passenger Vessel Association Conference; SMART card and biometric industry conferences; maritime union meetings; American Waterway Operators Executive Committee meeting; and the American Association of Port Authorities Conference to name a few.

 

TSA and the Coast Guard received almost 2,000 comments on the TWIC NPRM.  A general theme throughout the comments was the technological and economic feasibility of the TWIC cards and card readers in the maritime environment.  While smart cards, open slot card readers, and the use of biometrics have been used for a number of years in controlled, office-like environments, very few studies have examined how currently approved biometric card readers will withstand the comparatively harsh environments of vessels and maritime facilities. Also, several commenters stated that the cost of biometric card readers would be extremely detrimental for small entities.  TSA and the Coast Guard found the comments received to be invaluable in determining the best way forward for this rule.

 

Throughout February and March of this year, the Coast Guard also solicited comments from field units and industry stakeholders while drafting the TWIC Navigation and Vessel Inspection Circular.  We received over 400 comments, which were used to construct a clear and thorough guidance document for industry and Coast Guard units during implementation.  This guidance document is currently in concurrent clearance at Coast Guard Headquarters and will be reviewed by both DHS and OMB prior to distribution.

 

Based on the comments received from all sources, the Department chose to bifurcate the rule.  In order to address concerns about the adequacy of current reader technology, the Coast Guard is not requiring facility and vessel owner operators to purchase, install, and maintain card readers.  We will address this requirement in a separate rulemaking following the pilot program required by the SAFE Port Act and will provide all interested parties ample opportunity to comment on the new proposals during the comment period following the second NPRM.

 

In addition, the National Maritime Security Advisory Committee (NMSAC) formed a working group of maritime industry and biometric technology representatives to propose specifications for TWIC cards and card readers using a contactless (or proximity) interface.  The specifications were presented and approved on February 28, 2007 at NMSAC’s quarterly meeting.  A notice of availability of the specifications was published in the Federal Register for public comment on March 16, 2007.  NMSAC’s specifications will inform the pilot program set to begin in the Ports of Los Angeles/Long Beach, CA, in June 2007.

 

Work continues on several aspects of the TWIC Program.  The Coast Guard is in the process of procuring handheld open slot card readers for use during vessel and facility inspections and spot checks.  The Coast Guard will use the card readers to randomly check the validity of an individual’s TWIC.  Also, the provision for newly hired employees to work while they await issuance of a TWIC is in development and on track between the Coast Guard’s Homeport web portal engineers and TSA’s Identity Data Management System engineers.  Internally, policy is being written for implementation and enforcement of the TWIC Program in our ports through collaboration of our law enforcement, port security, and technology experts.  We are working to meet the deadlines set by the SAFE Port Act.

 

TSA and the USCG continue to reach out to our private sector stakeholders in the interest of fashioning a regulation that strengthens America’s maritime security while advancing commerce.  While the TWIC Program is multifaceted and includes numerous players, we are committed to developing a useful and valuable system. I would be happy to take any questions you have at this time.