49 CFR Part 1511

Wednesday,
February 20, 2002

Part IV

Department of
Transportation
Transportation Security Administration
49 CFR Part 1511
Aviation Security Infrastructure Fees and
Assumption of Civil Aviation Security
Functions and Responsibilities; Interim
Final Rule and Notice

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Federal Register / Vol. 67, No. 34 / Wednesday, February 20, 2002 / Rules and Regulations

DEPARTMENT OF TRANSPORTATION
Transportation Security Administration
49 CFR Part 1511
[Docket No. TSA–2002–11334]
RIN 2110–AA02

Aviation Security Infrastructure Fees
AGENCY: Transportation Security
Administration, DOT.
ACTION: Interim final rule.
SUMMARY: The Transportation Security
Administration (TSA) announces a fee
that will be imposed on air carriers and
foreign air carriers engaged in air
transportation, foreign air
transportation, and intrastate air
transportation effective February 18,
2002. For purposes of this rule, the fee
is described as the Aviation Security
Infrastructure Fee. The Aviation
Security Infrastructure Fee is imposed
pursuant to the provisions of the
Aviation and Transportation Security
Act and is in addition to the September
11th Security Fee imposed on
passengers pursuant to an interim final
rule published in the Federal Register
on December 31, 2001. The Aviation
Security Infrastructure Fee is necessary
to help defray TSA’s costs of providing
U.S. civil aviation security services. In
order to assist TSA in determining the
statutory cap for these fees, each air
carrier and foreign air carrier who paid
for passenger and property screening in
calendar year 2000 must complete
Appendix A to this part and submit it
to TSA by May 18, 2002. The Aviation
Security Infrastructure Fee imposed on
each air carrier and foreign air carrier
will be based on the information the
carrier provides in Appendix A. The fee
imposed on each air carrier and foreign
air carrier for the period running from
February 18 through April 30, 2002,
must be remitted to TSA by May 31,
2002. Thereafter, payment must be
remitted to TSA by the last calendar day
of each month.
DATES: This interim final rule is
effective on February 18, 2002.
Although the imposition of the Aviation
Security Infrastructure Fee is statutorily
exempted from the rulemaking notice
and comment procedures set forth in the
Administrative Procedure Act, 5 U.S.C.
553, comments received on or before
March 18, 2002 will be reviewed and
considered.
ADDRESSES: Submit written, signed
comments to TSA Docket No. 2002–
11334 , the Docket Clerk, U.S. DOT
Dockets, Room PL–401, 400 Seventh
Street, SW., Washington, DC 20590–

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0001. All comments received will be
available for examination at the above
address between 9 a.m. and 5 p.m., e.t.,
Monday through Friday, except Federal
holidays. Those desiring notification of
receipt of comments must include a selfaddressed, stamped envelope or
postcard on which the following
statement is made: ‘‘Comments to
Docket No. TSA–2002–11334.’’ The post
card will be date stamped and mailed to
the sender. Comments also may be sent
electronically to the Dockets
Management System (DMS) at: http://
dms.dot.gov at any time. Those who
wish to file comments electronically
should follow the instructions on the
DMS web site.
Public Meeting: TSA is considering
the possibility of holding a public
meeting on this matter and, if so, will
issue a separate document in the
Federal Register to inform the public as
to the exact date and location of such a
meeting.
FOR FURTHER INFORMATION CONTACT: For
guidance involving technical matters:
Randall Fiertz, Deputy Director, Cost
and Performance Management, Federal
Aviation Administration, c/o
Department of Transportation (DOT),
Office of the Secretary, Office of the
Assistant Secretary for Budget and
Programs, 400 Seventh St., SW., Room
10101, Washington, DC 20590;
telephone (202) 366–9192. For other
matters: Rita M. Maristch, Department
of Transportation, Office of the General
Counsel, Office of Environmental, Civil
Rights and General Law, 400 Seventh
St., SW., Room 10102, Washington, DC
20590; telephone (202) 366–9161. Office
hours are from 9:00 a.m. to 5:30 p.m.,
e.t. Monday through Friday, except
Federal holidays.
SUPPLEMENTARY INFORMATION:

Availability of the Interim Final Rule
and Comments Received
An electronic copy of this document
may be downloaded using a modem and
suitable communications software from
the Government Printing Office’s
Electronic Bulletin Boards Service at
(202) 512–1661. Internet users may
reach the Federal Register’s home page
at: http://www.nara.gov/fedreg and the
Government Printing Office’s database
at: http://www.access.gpo.gov.
Internet users can access this
document and all comments received by
TSA through DOT’s docket management
system web site, http://dms.dot.gov. It is
available 24 hours each day, 365 days
each year. Please follow the instructions
online for more information and help.

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Small Entity Inquiries
The Small Business Regulatory
Enforcement Fairness Act (SBREFA) of
1996 requires TSA to comply with small
entity requests for information and
advice about compliance with statutes
and regulations within TSA’s
jurisdiction. However, because TSA was
just established on November 19, 2001,
pursuant to Aviation and Transportation
Security Act, Pub. L. 107–71, it does not
yet have the infrastructure or personnel
to provide such information and
guidance. Until such time that it does,
the Office of the Secretary of
Transportation will handle all SBREFA
inquiries. Accordingly, any small entity
that has a question regarding this
document may contact the individuals
listed under the caption FOR FURTHER
INFORMATION CONTACT.
Background
The September 11 Terrorist Attacks and
the Aviation and Transportation
Security Act
The September 11, 2001 terrorist
attacks and the potential for future
attacks led Congress to enact the
Aviation and Transportation Security
Act, Pub. L. 107–71 (ATSA), November
19, 2001, which established TSA as an
administration within DOT. TSA is
headed by the Under Secretary of
Transportation for Security (Under
Secretary).
Section 118 of ATSA added § 44940
to Title 49, U.S.C. Section 44940
requires that within 60 days of ATSA’s
enactment, or as soon as possible
thereafter, (1) TSA impose security
service fees on passengers of air carriers
and foreign air carriers in air
transportation, foreign air
transportation, and intrastate air
transportation (air transportation) who
are enplaning aircraft on flights
originating at airports in the United
States; and (2) to the extent the
passenger fees are insufficient to cover
TSA’s costs of providing civil aviation
security services, TSA may impose
additional fees on air carriers and
foreign air carriers in air transportation.
The fees are to help pay the costs of
providing U.S. civil aviation security
services, which are described in
§ 44940(a)(1) as:
(1) The salary, benefits, overtime,
retirement and other costs of screening
personnel, their supervisors and
managers, and Federal law enforcement
personnel deployed at airport security
screening locations;
(2) The costs of training such
personnel and the acquisition,
operation, and maintenance of
equipment used by these personnel;

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(3) The costs of performing
background investigations of personnel;
(4) The costs of the Federal air
marshals program;
(5) The costs of performing civil
aviation security research and
development under Title 49, U.S.C.;
(6) The costs of Federal Security
Directors; and
(7) The costs of deploying Federal law
enforcement personnel.
According to § 44940(a)(1), the Under
Secretary must determine the amount of
the costs of providing these civil
aviation security services. His
determination is conclusive and not
subject to judicial review.
Section 44940(c) provides that the
security service fee imposed on
passengers may not exceed $2.50 per
enplanement or $5.00 per one-way trip.
On December 31, 2001, TSA published
an interim final rule ‘‘Imposition and
Collection of Passenger Civil Aviation
Security Service Fees’’ (September 11th
Security Fees) in the Federal Register.
66 FR 67698. This IFR imposed a
September 11th Security Fee in the
amount of $2.50 on certain passengers
enplaning aircraft in air transportation.
Passengers may not be charged for more
than two enplanements per one-way trip
or more than four enplanements per
round trip. Pursuant to 49 CFR 1510,
direct air carriers and foreign air carriers
were required to begin collecting the
September 11th Security Fee on
February 1, 2002.
The September 11th Security Fee is
set at the maximum amount permitted
by ATSA because the costs of providing
civil aviation security services, as
determined by the Under Secretary, are
greater than the amount that would be
recovered by the collection of fees at
that level. Based on collections
beginning on February 1, 2002, the
September 11th Security Fees collected
at the statutory maximum would yield
less than $1 billion in fiscal year 2002.
The yield would be slightly more in
future fiscal years, but will still be
insufficient to cover TSA’s costs in
providing security services identified in
49 U.S.C. 44940.
Section 44940(a)(2)(A) expressly
states that if revenues from the
September 11th Security Fee are
expected to fall short of the amount
required to cover civil aviation security
service costs, TSA may impose a fee on
air carriers and foreign air carriers in air
transportation to cover that shortfall.
Pursuant to the terms of ATSA, the
amount of that fee collected each fiscal
year by TSA may not exceed the
aggregate amount air carriers and
foreign air carriers paid for screening
passengers and property in calendar

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year 2000, as determined by the Under
Secretary. For fiscal years 2002 through
2004, the fee imposed on each air carrier
and foreign air carrier is limited to the
amount that carrier paid for screening
passengers and property in calendar
year 2000, as determined by the Under
Secretary. In addition, the fee collected
in fiscal year 2002 may not exceed the
amount each carrier paid for screening
passengers and property for the period
of time in calendar year 2000
proportionate to the period of time in
fiscal year 2002 during which the fees
are collected. Beginning in fiscal year
2005, the Under Secretary may
determine the per-carrier limitation on
the basis of market share or any other
appropriate measurement, rather than
on the carrier’s actual screening costs in
calendar year 2000.
ATSA requires that the air carrier fee
is to be imposed through publication of
a notice in the Federal Register.
However, the statute exempts the
imposition of these fees from the
procedural rulemaking requirements of
5 U.S.C. 553 and the user fee
requirements of 31 U.S.C. 9701.
Section 44940(e)(4) permits the Under
Secretary to require an air carrier or
foreign air carrier to provide any
information necessary to verify that the
amount of the fee imposed on the carrier
is correct and that the fees are remitted
in accordance with law and regulation.
According to § 44940(e)(5), the air
carrier fee is not considered to be part
of the amount paid for taxable
transportation under 26 U.S.C. 4261. In
addition, § 44940(e)(6) prohibits an air
carrier and foreign air carrier from
retaining any portion of the fee to cover
the carrier’s costs of remitting the fee.
The Interim Final Rule
Effective February 18, 2001, the
Under Secretary is imposing a fee on air
carriers and foreign air carriers engaged
in air transportation to pay for the costs
of providing U.S. civil aviation security
service. For purposes of this rule, the fee
will be described as the Aviation
Security Infrastructure Fee. The
applicability of this part is currently
limited to air carriers and foreign air
carriers operating passenger aircraft in
air transportation. In accordance with
49 U.S.C. 44901(f), TSA is currently
considering the screening system
necessary to ensure the security of cargo
that is transported by all-cargo aircraft
in air transportation.
Section 1511.3 provides definitions
for various terms used in this part. If a
term is not specifically defined in this
section, the definitions provided in 49
U.S.C. 40102 apply. TSA anticipates

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issuing additional general definitions,
which will provide further guidance.
According to § 1511.5 of this part,
TSA may not collect Aviation Security
Infrastructure Fees in an amount that
would exceed the aggregate amount air
carriers and foreign air carriers paid for
screening passengers and property in
calendar year 2000, as determined by
the Under Secretary. For fiscal years
2002 through 2004, this limitation is
constrained by a ‘‘per-carrier’’
limitation. More specifically, TSA may
not collect Aviation Security
Infrastructure Fees from an air carrier or
foreign air carrier in an amount that
exceeds the amount that carrier paid for
screening passengers and property in
calendar year 2000, as determined by
the Under Secretary. For fiscal years
2005 and beyond, the Under Secretary
will redetermine the ‘‘per-carrier’’
limitation and such redeterminations
may be based on the carrier’s respective
market share or any other appropriate
measure in lieu of its actual screening
costs in calendar year 2000. Because the
‘‘per-carrier’’ limit through fiscal year
2004 must be based on each carrier’s
screening costs in 2000, air carriers and
foreign air carriers that were not
engaged in air transportation as defined
in this part in calendar year 2000 will
not be subject to the imposition of the
Aviation Security Infrastructure Fee
until 2005.
Accordingly, TSA must determine the
aggregate amount carriers paid for
passenger and property screening in
calendar year 2000 and the amount each
individual carrier paid for screening
during that same year. Therefore, all air
carriers and foreign air carriers engaged
in air transportation in 2000 must fully
complete the form set forth in Appendix
A to this part, ‘‘Calendar Year 2000
Costs for Passenger and Property
Screening’’ and submit the form to TSA
pursuant to the instructions provided
therein by May 18, 2002. In the case of
a merger, acquisition, corporate
restructuring, reorganization, or name
change involving an air carrier or
foreign air carrier that paid for the
screening of passengers and property
transported by passenger aircraft in the
United States during calendar year
2000, the successor entity must include
those costs on Appendix A of this part
and submit those costs together with its
own costs to TSA on one form by May
18, 2002. Any other air carrier or foreign
air carrier that is no longer providing air
transportation, but was doing so in
calendar year 2000, must also complete
the form set forth in Appendix A and
submit the form to TSA by May 18,
2002. Broad applicability of this
requirement is necessary because the

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aggregate amount paid by air carriers
and foreign air carriers for screening
passengers and property in calendar
year 2000 will serve as the ‘‘overall
limit’’ on the collection of Aviation
Security Infrastructure Fees. This is
particularly relevant to fiscal years 2005
and beyond since the ‘‘per-carrier’’
limitation will no longer be tied to an
individual carrier’s screening costs in
2000, and the costs of providing civil
aviation security services will greatly
exceed the revenues from fees collected
pursuant to this part and part 1510.
Information submitted in Appendix A
will be used to assist the Under
Secretary in determining the amount of
Aviation Security Infrastructure Fee to
be imposed on each carrier.
We specifically invite comments with
respect to Appendix A. Other than
comments placed in the public docket,
information submitted pursuant to 49
U.S.C. 44940(a)(2)(B) or this part,
including that contained in Appendix
A, will be deemed Sensitive Security
Information and subject to the nondisclosure requirements of 49 U.S.C.
40119(b). In addition, confidential
business information provided in
Appendix A will be protected from
public disclosure, as appropriate, under
5 U.S.C. 552, 18 U.S.C. 1905, and 14
CFR 302.12. Requests for confidentiality
for purposes of confidential business
information must be filed with the
Office of the General Counsel (C–10),
Department of Transportation, at the
address indicated in Appendix A.
Section 1511.7 of the interim final
rule mandates that by May 31, 2002,
each air carrier and foreign air carrier
engaged in air transportation remit to
TSA 3.273 percent of the total amount
the carrier has indicated in Appendix A
of this part, or an amount as otherwise
determined by the Under Secretary.
Payment in this amount will represent
the Aviation Security Infrastructure Fee
due for the period running from
February 18 through February 28, 2002.
Also by May 31, 2002, these air carriers
and foreign air carriers must remit
16.666 percent of the total amount the
carrier has indicated in Appendix A, or
an amount as otherwise determined by
the Under Secretary. Payment in this
amount will represent the Aviation
Security Infrastructure Fee due for the
period running March 1 through April
30, 2002. By the last calendar day of
each month following May 2002
through September 2004, each air
carrier and foreign air carrier must remit
to TSA 8.333 percent of the total
amount the carrier has indicated in
Appendix A, or an amount as otherwise
determined by the Under Secretary. By
the last calendar day of each month

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following September 2004, each air
carrier and foreign air carrier must remit
to TSA 8.333 percent of the total
amount as determined by the Under
Secretary.
Aviation Security Infrastructure Fees
are payable to the ‘‘Transportation
Security Administration’’ in U.S.
currency and must be drawn on a U.S.
bank. A monthly payment totaling
$1,000 or more must be remitted by
electronic funds transfer. Although TSA
strongly encourages that payment less
than $1,000 also be remitted by
electronic funds transfer, such payment
may be remitted by check, money order,
wire transfer or draft. Carriers will be
responsible for paying any bank
processing charges on fees remitted
pursuant to this part when such charges
are assessed on the U.S. government.
Specific instructions concerning
remittance will be provided directly to
air carriers and foreign air carriers and
will be posted on the DOT web site at
www.dot.gov in the near future.
Section 1511.9 of this interim final
rule requires an air carrier or foreign air
carrier to retain any and all documents,
records, or information related to the
amount of the Aviation Security
Infrastructure Fees imposed on that
carrier, including all information
applicable to the costs submitted in
Appendix A, and information that is
reasonably necessary to complete an
audit. No later than July 1, 2002, each
air carrier and foreign air carrier must
submit to TSA an audit performed by an
independent certified public accountant
of the information the carrier provided
pursuant to this part. The accountant
must express an opinion as to the
fairness and reasonableness of the air
carrier’s or foreign air carrier’s
procedures for accounting for and
remitting the fees. The accountant’s
working papers with respect to the audit
must be included with this submission.
Specific instructions concerning the
submission of the audit and working
papers will be provided directly to the
air carriers and foreign air carriers and
will be posted on the DOT web site at
www.dot.gov in the near future.
This rule requires air carriers and
foreign air carriers to allow certain
authorized Federal representatives to
review and audit any of the carrier’s
books and records and to provide other
information necessary to verify that
submissions pursuant to 49 U.S.C.
44940(a)(2)(B) and this part, including
that contained in Appendix A, are true
and correct and that the aviation
security infrastructure fees were
remitted consistent with law and
regulation.

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The rule’s enforcement provision
states that in addition to any other
remedies allowed by law, falsification
by any party, directly or indirectly, of
information provided by an air carrier or
foreign air carrier pursuant to this part,
including information submitted in
Appendix A, may be prosecuted
criminally resulting in a fine and/or
imprisonment under 18 U.S.C 1001. An
air carrier’s or foreign air carrier’s
failure to comply with the requirements
49 U.S.C. 44940 or the provisions of this
part may result in a claim due the
United States by the carrier, which shall
be collectable pursuant to Federal
Claims Collection Act and
implementing DOT regulations at 49
CFR part 89.
Good Cause for Immediate Adoption
Section 44940(d)(1) of title 49, U.S.C.,
explicitly exempts the imposition of the
civil aviation security service fees
authorized in § 44940 from the
procedural rulemaking notice and
comment procedures set forth in 5
U.S.C. 553. In addition, it would be
impractical and contrary to the public
interest to provide for notice and an
opportunity for comment before issuing
this rule. Immediate action is expressly
contemplated by ATSA and necessary to
begin collecting the security service fees
provided for by the statute. However,
TSA will consider all comments
received on or before the closing date
for comment, including comments
received before the issuance of this rule.
We will also consider comments filed
late to the extent practicable. We may
amend this rule in light of the
comments we receive.
Paperwork Reduction Act
TSA has determined that this interim
final rule will impose new collection of
information burdens within the
meaning of the Paperwork Reduction
Act of 1995 (Pub. L. 104–13, 44 U.S.C.
chapter 35) (PRA). TSA is required to
submit this proposed collection of
information to the Office of
Management and Budget (OMB) for
review and approval and, accordingly,
seeks public comments. Pursuant to 5
CFR 1320.13, Emergency processing,
TSA has asked OMB for temporary
emergency approval for this collection.
Interested parties are invited to send
comments regarding any aspect of the
information collection requirements,
including: (1) Whether the collection of
information is necessary for TSA’s
performance of its statutory duties,
including whether the information has
practical utility; (2) the accuracy of the
estimated burden provided to OMB; (3)
ways to enhance the quality, utility, and

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Federal Register / Vol. 67, No. 34 / Wednesday, February 20, 2002 / Rules and Regulations
clarity of the collection of information,
and (4) ways to minimize the collection
burden without reducing the quality of
the information collected. For further
information or to comment you may
contact: The Office of Information and
Regulatory Affairs, Office of
Management and Budget, 725–17th
Street, NW., Washington, DC 20503,
Attention Desk Officer for the
Transportation Security Administration.
You may also contact Rita Maristch at
the address listed under FOR FURTHER
INFORMATION CONTACT or Steven Cohen,
Office of the General Counsel (C–10), at
(202) 366–4684.
Summary: The TSA has submitted a
request for emergency processing of a
public information collection to OMB
for review and clearance of the reporting
and recordkeeping requirements
associated with this interim final rule in
accordance with PRA. The Information
Collection Request (ICR) abstracted
below has been forwarded to OMB for
review and comment. The ICR describes
the nature of the information collections
and their expected burden.
Type of Request: New.
Abstract: For purposes of collecting
information necessary to establish the
Aviation Security Infrastructure Fee,
which will help pay for the costs of
providing civil aviation security
services as described in 49 U.S.C. 44940
that are not otherwise covered by the
collection of the September 11th
Security Fee (66 FR 67698, December
31, 2001), air carriers and foreign air
carriers will be required to provide
information regarding their costs for
screening passengers and property in
calendar year 2000 and provide for an
independent audit of this information to
establish and administer this fee.
Form Number: An application for a
control number for the form has been
submitted to OMB.
Affected Public: The information
collection requirement applies to air
carriers or foreign air carriers providing
air transportation, foreign air
transportation, and intrastate air
transportation.
Number of Respondents: This
information request will apply to
approximately 195 air carriers and
foreign air carriers.
Frequency: This is a one-time
collection.
Estimated Annual Burden: Using the
above estimate of 195 carriers who will
have to respond, with an estimate of 40
hours of preparation to collect and
provide information regarding security
costs for screening passengers and
property in calendar year 2000, at an
assumed rate of $50 an hour, the
estimated cost of collecting and

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preparing the information necessary for
195 respondents is $390,000. In
addition, the cost of preparing and
submitting 195 independent audits of
this information, with an estimate of
120 hours of time to conduct each audit,
at an assumed rate of $150 per hour, is
$3,510,000. Adding in a postage cost of
$218.40 (195 responses at a cost of $1.12
to mail each one), we estimate that it
will cost $3,900,218.40 for the affected
air carriers and foreign air carriers to
prepare, audit, and submit the
information necessary to satisfy the
information collection requirement.

The requirements of Title II of the
Unfunded Mandates Reform Act of 1995
do not apply when rulemaking actions
are taken without the issuance of a
notice of proposed rulemaking.
Accordingly, the TSA has not prepared
a statement under the Act.

Economic Analyses

Energy Impact

This rulemaking has been reviewed
under the provisions of § 6(a)(3)(D) of
Executive Order 12866, Regulatory
Planning and Review, as well as under
DOT’s regulatory policies and
procedures because it may impose
significant costs on air carriers and
foreign air carriers. An assessment in
accordance with the Executive Order
will be conducted in the future. No
additional regulatory analysis or
evaluation accompanies this rule. TSA
has not assessed whether this rule will
have a significant economic impact on
a substantial number of small entities as
defined in the Regulatory Flexibility Act
of 1980. When no notice of proposed
rulemaking has first been published, the
Regulatory Flexibility Act does not
apply.

The energy impact of this rule has
been assessed in accordance with the
Energy Policy and Conservation Act
(EPCA) Pub. L. 94–163, as amended. (42
U.S.C. 6362). It has been determined
that this rule is not a major regulatory
action under the provisions of the
EPCA.

Executive Order 13132, Federalism
The TSA has analyzed this rule under
the principles and criteria of Executive
Order 13132, Federalism. We
determined that this action will not
have a substantial direct effect on the
States, or the relationship between the
national Government and the States, or
on the distribution of power and
responsibilities among the various
levels of government. Therefore, we
have determined that this final rule does
not have federalism implications.
Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act
of 1995 (the Act), enacted as Pub. L.
104–4 on March 22, 1995, is intended,
among other things, to curb the practice
of imposing unfunded Federal mandates
on State, local, and tribal governments.
Title II of the Act requires each Federal
agency to prepare a written statement
assessing the effects of any Federal
mandate in a proposed or final agency
rule that may result in a $100 million or
more expenditure (adjusted annually for
inflation) in any one year by State, local,
and tribal governments, in the aggregate,
or by the private sector.

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Environmental Review
TSA has reviewed this action for
purposes of the National Environmental
Policy Act of 1969 (42 U.S.C. 4321–
4347) and has determined that this
action will not have a significant effect
on the human environment.

List of Subjects in 49 CFR Part 1511
Accounting, Auditing, Air carriers,
Air transportation, Enforcement, Federal
oversight, Fees, Foreign air carriers,
Recordkeeping and reporting
requirements, Security measures.
Issued in Washington, DC, on February 14,
2002.
John W. Magaw,
Under Secretary of Transportation for
Security.

For the reasons set forth in the
preamble, the Transportation Security
Administration adds a new part 1511 in
Title 49 in Chapter XII, Subchapter A,
of the Code of Federal Regulations to
read as follows:
PART 1511—AVIATION SECURITY
INFRASTRUCTURE FEE
Sec.
1511.1 Applicability and purpose.
1511.3 Definitions.
1511.5 Imposition of Aviation Security
Infrastructure Fees.
1511.7 Remittance of Aviation Security
Infrastructure Fees.
1511.9 Accounting and auditing
requirements.
1511.11 Federal oversight.
1511.13 Enforcement.
Appendix A to Part 1511—Aviation Security
Infrastructure Fee.
Authority: 49 U.S.C. 44901 and 44940.
§ 1511.1

Applicability and purpose.

(a) This part prescribes the imposition
of a fee on air carriers and foreign air
carriers in air transportation to pay for
the costs of providing U.S. civil aviation
security services as described in 49
U.S.C. 44940.

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(b) For purposes of this part, the fee
will be described as the ‘‘Aviation
Security Infrastructure Fee.’’
§ 1511.3

Definitions.

The following definitions apply for
purposes of this part. For other
definitions that may be applicable to
this part refer to 49 U.S.C. 40102.
Air transportation means the carriage
by passenger aircraft of persons or
property for compensation or hire in
intrastate air transportation, interstate
air transportation, or foreign air
transportation.
Aircraft means a device that is used
or intended to be used for flight in the
air.
Fiscal year means the fiscal year for
the Federal government, which begins
each year October 1 and ends on
September 30. The fiscal year is
designated by the calendar year in
which it ends, e.g., fiscal year 2002 is
the year beginning October 1, 2001, and
ending September 30, 2002.
Foreign air transportation means air
transportation between a place in the
United States and any place outside of
the United States.
Interstate air transportation means air
transportation within the United States.
Intrastate air transportation means air
transportation wholly within the same
State of the United States.
Passenger aircraft means an aircraft
that is used to transport passengers in
air transportation.
Property means mail, cargo, carry-on
and checked baggage, and any other
articles transported by passenger aircraft
operated by an air carrier or foreign air
carrier in air transportation, but
excluding property transported under
the ‘‘Known Shipper Program.’’
Under Secretary means the Under
Secretary of Transportation for Security
or the Under Secretary’s designee.
§ 1511.5 Imposition of Aviation Security
Infrastructure Fees.

(a) Effective February 18, 2002, an
Aviation Security Infrastructure Fee will
be imposed on air carriers and foreign
air carriers engaged in air
transportation.
(b) The amount of the Aviation
Security Infrastructure Fee for each
fiscal year will not exceed, in the
aggregate, the amounts paid in calendar
year 2000 by air carriers and foreign air
carriers for the screening of passengers
and property transported by passenger
aircraft in the United States, as
determined by the Under Secretary.
(c) For fiscal years 2002, 2003 and
2004, the amount of the Aviation
Security Infrastructure Fee imposed on
each air carrier and foreign air carrier

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will not exceed the amount each such
carrier paid for the screening of
passengers and property transported by
passenger aircraft in the United States
during calendar year 2000, as
determined by the Under Secretary.
(d) Each air carrier and foreign air
carrier that paid for the screening of
passengers and property in calendar
year 2000 must fully complete the form
set forth in Appendix A to this part
titled, ‘‘Calendar Year 2000 Costs Paid
for Passenger and Property Screening,’’
and submit the completed form to the
Transportation Security Administration
by May 18, 2002.
(e) In the case of a merger, acquisition,
corporate restructuring, reorganization,
or name change involving an air carrier
or foreign air carrier that paid for the
screening of passengers and property
transported by passenger aircraft in the
United States during calendar year
2000, the successor entity must include
those screening costs in Appendix A of
this part and submit those costs together
with its own costs on one form in
accordance with paragraph (d) of this
section. Any other air carrier or foreign
air carrier that paid for the screening of
passengers and property transported by
passenger aircraft in the United States
during calendar year 2000 but is no
longer providing air transportation must
also complete the form set forth in
Appendix A and submit the form in
accordance with paragraph (d) of this
section.
(f) The Under Secretary has
determined that the information
submitted pursuant to this part and 49
U.S.C. 44940(a)(2)(B) is Sensitive
Security Information and is subject to
the non-disclosure requirements of 49
U.S.C. 40119(b).
(g) The amount of the Aviation
Security Infrastructure Fee imposed on
each air carrier and foreign air carrier
will be redetermined for fiscal years
2005 and beyond, and such
redeterminations may be based on the
carrier’s respective market share or any
other appropriate measure in lieu of the
measure provided in paragraph (c) of
this section.
§ 1511.7 Remittance of Aviation Security
Infrastructure Fees.

(a) No later than May 31, 2002, each
air carrier and foreign air carrier
engaged in air transportation must remit
to TSA.
(1) 3.273 percent of the total amount
the carrier has indicated in Appendix A
of this part, or an amount as otherwise
determined by the Under Secretary,
which will represent the Aviation
Security Infrastructure Fee due for the

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period running from February 18
through February 28, 2002; and,
(2) 16.666 percent of the total amount
the carrier has indicated in Appendix A
of this part, or an amount as otherwise
determined by the Under Secretary,
which will represent the Aviation
Security Infrastructure Fee due for
period running from March 1 through
April 30, 2002.
(b) Each air carrier and foreign air
carrier engaged in air transportation
must remit to TSA 8.333 percent of the
total amount the carrier has indicated in
Appendix A of this part, or an amount
as otherwise determined by the Under
Secretary, by the last calendar day of
each month following May 2002 up to
and including September 2004.
(a) Each air carrier and foreign air
carrier engaged in air transportation
must remit to TSA 8.333 percent of the
total amount as determined by the
Under Secretary pursuant to section
1511.5(g) of this part by the last
calendar day of each month following
September 2004.
(b) Aviation Security Infrastructure
Fees must be payable to the
‘‘Transportation Security
Administration’’ in U.S. currency and
drawn on a U.S. bank.
(1) Aviation Security Infrastructure
Fees of $1,000 or more must be remitted
by electronic funds transfer.
(2) Aviation Security Infrastructure
Fees under $1,000 may be remitted by
electronic funds transfer, check, money
order, wire transfer, or draft.
(a) Air carriers and foreign air carriers
are responsible for paying any bank
processing charges on Aviation Security
Infrastructure Fees remitted under this
part when such charges are assessed on
the U.S. government.
§ 1511.9 Accounting and auditing
requirements.

(a) Each air carrier and foreign air
carrier must submit an audit performed
by an independent certified public
accountant of the information provided
pursuant to this part to the
Transportation Security Administration
by July 1, 2002. The cost of the audit
will be borne by the carrier. The
accountant must express an opinion as
to the fairness and reasonableness of the
air carrier’s and foreign air carrier’s
procedures used for accounting and
remitting the fees. The accountant’s
working papers with respect to the audit
must accompany this submission.
(b) Each air carrier and foreign air
carrier must maintain and retain any
and all documents, records, or
information related to the amount of the
Aviation Security Infrastructure Fees
imposed on the carrier pursuant to this

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Federal Register / Vol. 67, No. 34 / Wednesday, February 20, 2002 / Rules and Regulations
Appendix A to Part 1511—Aviation
Security Infrastructure Fee

part, including all information
applicable to the costs submitted in
Appendix A, and information that is
reasonably necessary to complete an
audit.
§ 1511.11

Federal oversight.

(a) Upon request, air carriers and
foreign air carriers must allow any
authorized representative of the
Secretary of Transportation, the Under
Secretary of Transportation for Security,
the Inspector General of the Department
of Transportation, or the Comptroller
General of the United States to audit or
review any of the books and records and
provide any other information necessary
to verify that:
(1) The information submitted
pursuant to 49 U.S.C. 44940(a)(2)(B) and
this part, including that provided in
Appendix A, is true and correct; or
(2) The Aviation Security
Infrastructure Fees were remitted
consistent with this part.
§ 1511.13

Enforcement.

(a) In addition to any other remedies
allowed by law, willful falsification by
any party, directly or indirectly, of
information provided by an air carrier or
foreign air carrier pursuant to this part,
including information submitted in
Appendix A as required by section
1511.5 of this part, may be prosecuted
criminally resulting in a fine and/or
imprisonment under 18 U.S.C 1001.
(b) An air carrier’s or foreign air
carrier’s failure to comply with the
requirements of 49 U.S.C. 44940 or the
provisions of this part may result in a
claim due the United States by the
carrier, which claim shall be collectable
pursuant to 31 U.S.C. Chapter 37 and
the Department of Transportation’s
implementing regulations at 49 CFR part
89.

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Instructions
General guidance
When filling out this form, the responding
air carrier or foreign air carrier shall include
all costs incurred in calendar year 2000 by
that air carrier for the screening of passengers
and property. Costs are those attributed to the
screening of passengers and property in the
United States for both flights within the
United States and flights from the United
States to foreign destinations. Reported costs
must be consistent with the air carrier’s
financial accounting information reported in
accordance with generally accepted
accounting principles.
Where actual costs of screening passengers
and property cannot be directly identified
through an air carrier’s accounting system,
the air carrier shall use an appropriate
alternate cost assignment methodology.
Documentation that explains and supports
the assignment methodology used, the
applicable pool and the allocation basis must
be made available upon request. For costs
related to capitalized property, please report
the associated depreciation expense incurred
during calendar year 2000. Capitalization
policy must also be made available upon
request.
To the extent necessary, the reporting air
carrier may aggregate those specific costs that
have been incurred but cannot be stated in
the detailed cost categories requested by this
form. However, all of the costs identified by
this form must be included in the total
calculations. In addition, explanations
regarding costs that have been aggregated
need to be provided. Costs reported in
Appendix A do not need to include costs that
may have been incurred for a position higher
than those of the air carrier’s director of
security (or equivalent). Costs incurred for
higher positions, such as those of the air
carrier’s chief executive officer, do not need
to be included.
When including cost information on
acquired and/or merged air carriers, the
successor air carrier must specify the names
of all of such entities whose calendar year

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2000 passenger and property screening costs
are included in that air carrier’s submission
as Appendix A.
The costs listed below are to be in US
dollars, rounded to the nearest dollar. Place
a zero in the appropriate box to indicate cost
categories in which the air carrier did not
incur costs for passenger and property
screening in calendar year 2000.
Supporting Notes
Examples of cost types that appear in the
supporting notes below are for illustrative
purposes only and are not intended to set
forth all relevant costs that must be reported
by air carriers and foreign air carriers. In
submitting information to TSA, air carriers
and foreign air carriers must submit all of
their relevant costs, regardless of whether
those costs have been specifically illustrated
in the notes.
Submission of Data
This form will be available electronically
from the Department of Transportation’s
website at www.dot.gov. Air carriers are
asked to return the completed form by
certified mail to: Chief Financial Officer,
Transportation Security Administration,
Department of Transportation, 400 Seventh
Street SW, Washington, DC 20590. Please
also submit the same information in
Microsoft Word either on a computer disk or
by e-mail to [email protected].
Confidentiality of Data
Consistent with 49 CFR § 1511.5(f),
information submitted in Appendix A is
deemed to be Sensitive Security Information
and will be so protected from public
disclosure under 49 U.S.C. 40119(b). In
addition, confidential business information
and economic information provided in
Appendix A will be protected from public
disclosure, as appropriate, under 5 U.S.C.
§ 552 (the Freedom of Information Act), 14
CFR § 302.12, and 18 U.S.C. § 1905. Requests
for confidentiality must be filed with the
Office of the General Counsel, Department of
Transportation (C–10), 400 Seventh Street,
SW, Room 10102, Washington, DC 20590
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Supporting Notes
a. These are costs that the air carrier
incurred directly. Includes costs incurred for
air carrier personnel salaries and benefits,
equipment owned, leased or rented directly
by that air carrier and any other costs directly
incurred.
b. These are costs that the air carrier
incurred through contracts with security
firms. Includes personnel, equipment and
other costs incurred through contracts with
third party security companies.
c. These are costs that the air carrier
incurred through other means. Includes costs
incurred through air carrier security
consortiums.
1. Salary, benefits, overtime, retirement
and other costs of checkpoint screening
personnel.
2. Salary, benefits, overtime, retirement
and other costs of exit lane monitors.
3. Salary, benefits, overtime, retirement
and other costs of cargo screeners.
4. Salary, benefits, overtime, retirement
and other costs of checked baggage screeners.
5. Salary, benefits, overtime, retirement
and other costs of all baggage runners who
move property such as baggage to and from
screening areas.
6. Salary, benefits, overtime, retirement
and other costs of all supervisory personnel,
including Checkpoint Screening Supervisors.
7. All associated expensed non-labor costs
including computers, communications
equipment, time management systems,
supplies, parking, identification badging,
furniture, fixtures, and travel.
8. All costs of performing required
background investigations on all screening
personnel and supervisors. Screening
personnel and supervisors includes
checkpoint screening personnel, exit lane
monitors, cargo screeners, checked baggage
screeners, baggage runners, and their
supervisors.
9. All costs incurred for the training and
testing of all screening personnel and
supervisors, including initial, recurrent and
remedial training. Includes any computerbased training and the development of
training programs for the screening of
persons and property as well as any travel,
room and board, and all other such expenses
related to training.
10. The costs of implementing and
maintaining training records for all screening
personnel and supervisors.
11. The costs of completing evaluations for
all screening personnel and supervisors.
12. All costs for drug and alcohol testing
as well as any associated counseling and/or
treatment for all screening personnel and
supervisors.
13. All costs of renting, purchasing,
maintaining, and/or cleaning of uniforms and

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any related equipment such as flashlights
and batons for all screening personnel and
supervisors.
14. All costs incurred by air carriers for the
use of canines and their handlers used for the
screening of persons and property.
15. All costs associated with obtaining
security clearances for personnel relating to
the screening of persons and property.
16. All costs associated with the purchase,
installation, and testing of all screening
equipment. In instances where the
equipment is capitalized, provide the
depreciation expense in lieu of costs
associated with purchase, installation, and
final acceptance testing. This includes such
equipment as Metal Detection Devices, Hand
Wands, X-ray screening machines,
Explosives Trace Detection Devices,
Explosives Detection Systems, or any other
such similar technologies. Includes any costs
incurred or depreciation costs recognized in
calendar year 2000 for the modification and/
or construction of any facility needed to
accommodate screening, including
architecture and engineering. Also includes
the costs of any refurbishment and/or
modernization of the equipment.
17. Costs of operating, maintaining, and
calibrating installed screening equipment.
This includes such equipment as Metal
Detection Devices, Hand Wands, X-ray
screening machines, Explosives Trace
Detection Devices, Explosives Detection
Systems, or any other such similar
technologies. Includes such costs as test
objects and X-ray radiation surveys,
electricity costs and maintenance contract
costs incurred for the operations of such
equipment.
18. Costs of maintaining integrity of sterile
areas. Includes costs of opening sterile areas,
emergency evacuations of sterile areas, and
re-screenings not included elsewhere.
19. The cost of purchase or rent,
installation, testing, and maintenance of
checkpoint signs, barriers, lane markers, and
exit lane doors.
20. Any additional costs for special
screening such as for disabled passengers,
VIP passengers, classified and/or high value
items.
21. All security company contract costs for
the screening of persons and property that
cannot be detailed into any other cost
category.
22. All direct costs for the real estate
utilized for the screening of persons and
property. Includes space at airports for the
performance of these functions, as well as
such space used for break rooms, private
screening rooms, storages space, training
rooms, and office space. Also includes
appropriate space for the oversight of the

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screening functions outside of airports such
as in headquarters or regional offices.
23. All costs for utilities used for screening.
Includes electricity, heating/ventilation/
cooling, and telecommunications costs not
elsewhere specified.
24. All costs incurred for the Ground
Security Coordinator’s oversight of the
screening functions. Includes personnel
salaries, benefits, retirement, training, and
non-labor costs.
25. All air carrier head office, regional, or
airport specific costs associated with the
administration and oversight of screening not
elsewhere specified. Includes personnel
salaries, benefits, retirement, training, and
non-labor costs.
26. All costs associated with the
administration and oversight of screening
contracts. Includes personnel, benefits,
retirement, training, and non-labor costs.
27. All costs not elsewhere specified for
background audit checks for all screeners and
supervisors.
28. All legal support costs incurred during
calendar year 2000 relating to aviation
security screening. Includes legal assistance
for the implementation and execution of
security screening contracts.
29. All costs for accounting and financial
services incurred for the support of the
screening functions.
30. Includes all labor and non-labor costs
for such items as human resource
administration, clerical assistance,
information technology, and other support
functions related to screening.
31. All insurance costs relating to
screening. Includes worker’s compensation
and general liability insurance.
32. All costs incurred by the air carriers for
law enforcement personnel costs that were
reimbursed by the air carriers for services
performed in connection with the screening
of persons and property.
33. All costs associated with the
recruitment of screening personnel and
supervisors. Includes signing bonuses, travel,
and other recruitment expenses.
34. Any costs incurred for fees charged by
other organizations for the management of
contracts for the screening of persons and
property.
35. Any costs incurred not elsewhere
specified during calendar year 2000 for the
screening of passengers and property. These
costs should be itemized on a separate sheet.
Includes any fines or monetary penalties
incurred for screening as well as any profit/
bonuses paid to contractors for screening
services not included elsewhere on the form.
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[FR Doc. 02–4148 Filed 2–15–02; 2:25 pm]
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