Observations on Efforts to Implement the Western Hemisphere Travel Initiative on the U.S. Border with Canada
Gao ID: GAO-06-741R May 25, 2006Securing the U.S. border has received increasing attention since the terrorist attacks of September 11, 2001. For years, U.S. and Canadian citizens have crossed the northern border using documents such as driver's licenses or birth certificates or in some cases without showing any documentation. Border crossings are commonplace; in 2005, for example, an estimated 13 million U.S. citizens crossed the northern border. In the heightened national security environment after September 11, we have previously reported that documents like driver's licenses and birth certificates can easily be obtained, altered, or counterfeited and used by terrorists to travel into and out of the country. The Intelligence Reform and Terrorism Prevention Act of 2004 requires the Secretary of Homeland Security, in consultation with the Secretary of State, to develop and implement a plan that requires a passport or other document or combination of documents that the Secretary of Homeland Security deems sufficient to show identity and citizenship for U.S. citizens and citizens of Bermuda, Canada, and Mexico when entering the United States from certain countries in North, Central, or South America. The act requires the Department of Homeland Security (DHS) and the Department of State (State) to implement this requirement by January 2008, and the effort to do so is called the Western Hemisphere Travel Initiative (Travel Initiative). As the statutory deadline for implementing DHS's and State's plans draws closer, questions have arisen about the agencies' progress in carrying out the Travel Initiative. As part of our examination of the Travel Initiative, Congress asked us to provide a status report on the progress these agencies have made. On April 7, 2006, we briefed Congress on our observations to date, which focused primarily on implementation along the northern border. This letter summarizes the information we provided at that briefing. It addresses the following questions: (1) What steps have been taken and what challenges remain in implementing the Travel Initiative by the statutory deadline of January 2008? (2) What challenges have been identified with alternative documents or programs that have been suggested as substitutes for passports or PASS cards under the Travel Initiative?
DHS and State are within 20 months of the January 2008 deadline for implementing the Travel Initiative, and while the agencies have taken initial steps to carry out the program, broad and extensive challenges remain. The steps taken and the challenges that remain fall into five main areas: (1) making a decision about what documents individuals will need when they enter the United States, (2) resolving technical and programmatic issues related to PASS cards, (3) proceeding through the rule-making process, (4) carrying out a cost-benefit study, and (5) managing implementation of the program. Achieving the intended security benefits of the Travel Initiative by the statutory milestone date, without simply requiring all travelers to carry a passport, appears in jeopardy, given the volume of work that remains. The various alternative documents or programs proposed by federal agencies, the business community, and others as substitutes for a U.S. passport or PASS card all present major challenges as well. The suggested alternatives fall into three main categories: (1) frequent traveler programs, (2) driver's licenses with enhanced security features and the capacity to denote citizenship, and (3) day passes.
GAO-06-741R, Observations on Efforts to Implement the Western Hemisphere Travel Initiative on the U.S. Border with Canada
This is the accessible text file for GAO report number GAO-06-741R
entitled 'Observations on Efforts to Implement the Western Hemisphere
Travel Initiative on the U.S. Border with Canada' which was released on
June 1, 2006.
This text file was formatted by the U.S. Government Accountability
Office (GAO) to be accessible to users with visual impairments, as part
of a longer term project to improve GAO products' accessibility. Every
attempt has been made to maintain the structural and data integrity of
the original printed product. Accessibility features, such as text
descriptions of tables, consecutively numbered footnotes placed at the
end of the file, and the text of agency comment letters, are provided
but may not exactly duplicate the presentation or format of the printed
version. The portable document format (PDF) file is an exact electronic
replica of the printed version. We welcome your feedback. Please E-mail
your comments regarding the contents or accessibility features of this
document to Webmaster@gao.gov.
This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed
in its entirety without further permission from GAO. Because this work
may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this
material separately.
May 25, 2006:
The Honorable Loretta Sanchez:
Ranking Minority Member:
Subcommittee on Economic Security,
Infrastructure Protection, and Cybersecurity: Committee on Homeland
Security:
House of Representatives:
The Honorable Louise M. Slaughter:
The Honorable John M. McHugh:
House of Representatives:
Subject: Observations on Efforts to Implement the Western Hemisphere
Travel Initiative on the U.S. Border with Canada:
Securing the U.S. border has received increasing attention since the
terrorist attacks of September 11, 2001. For years, U.S. and Canadian
citizens have crossed the northern border using documents such as
driver's licenses or birth certificates or in some cases without
showing any documentation. Border crossings are commonplace; in 2005,
for example, an estimated 13 million U.S. citizens crossed the northern
border. In the heightened national security environment after September
11, we have previously reported that documents like driver's licenses
and birth certificates can easily be obtained, altered, or
counterfeited and used by terrorists to travel into and out of the
country.[Footnote 1] The Intelligence Reform and Terrorism Prevention
Act of 2004 requires the Secretary of Homeland Security, in
consultation with the Secretary of State, to develop and implement a
plan that requires a passport or other document or combination of
documents that the Secretary of Homeland Security deems sufficient to
show identity and citizenship for U.S. citizens and citizens of
Bermuda, Canada, and Mexico when entering the United States from
certain countries in North, Central, or South America.[Footnote 2] The
act requires the Department of Homeland Security (DHS) and the
Department of State (State) to implement this requirement by January
2008, and the effort to do so is called the Western Hemisphere Travel
Initiative (Travel Initiative).
While requiring passports for all border crossings would meet the
requirements of the law, the possibility that DHS and State would do so
has been highly controversial, and it centers attention on the
difficult task of improving border security while still facilitating
commerce and travel. Members of Congress, officials from state and
local governments, officials from the Canadian government, and
representatives of the business community have expressed concern about
the Travel Initiative, particularly as it relates to the cost of
purchasing passports for families and the possible impact on cross-
border tourism at the northern border.[Footnote 3] For example, it
would cost an American family of four over $350 to purchase passports
to return to the United States after making a trip or multiple trips to
Canada or elsewhere. Many fear the cost of passports will discourage
unplanned or spontaneous travel, especially among those who cross the
border to shop or dine or take a last-minute weekend trip. DHS and
State have responded to these concerns by proposing a People Access
Security Service (PASS) card that may cost less than a
passport.[Footnote 4] The proposed card would be an alternative form of
a passport for U.S. citizens who cross the border by land, and it would
demonstrate both citizenship and identity. Meanwhile, various other
alternatives have been proposed or suggested as ways to meet the Travel
Initiative. One proposal, for example, would continue or make greater
use of existing frequent traveler programs.[Footnote 5] These programs
prescreen travelers to help speed their entrance into Canada and the
United States and are a required component of the Travel Initiative
under the Intelligence Reform and Terrorism Prevention Act.[Footnote 6]
Other proposals include the use of driver's licenses with enhanced
security features and a day pass--a document that could facilitate
travel for individuals who take infrequent or spontaneous trips across
the border.
As the statutory deadline for implementing DHS's and State's plans
draws closer, questions have arisen about the agencies' progress in
carrying out the Travel Initiative. As part of our examination of the
Travel Initiative, you asked us to provide a status report on the
progress these agencies have made. On April 7, 2006, we briefed your
office on our observations to date, which focused primarily on
implementation along the northern border. This letter summarizes the
information we provided you at that briefing. It addresses the
following questions:
What steps have been taken and what challenges remain in implementing
the Travel Initiative by the statutory deadline of January 2008?
What challenges have been identified with alternative documents or
programs that have been suggested as substitutes for passports or PASS
cards under the Travel Initiative?
To do our work, we interviewed DHS and State officials in Washington,
D.C; reviewed relevant laws and regulations; and examined documents and
reports about the Travel Initiative and proposals for alternative
documents and programs. We also interviewed DHS and State officials
about existing border crossing programs, reviewed available
documentation about these programs, and met with various local
stakeholders in New York and Washington states to discuss their views
about the Travel Initiative. We focused our initial work on the U.S.-
Canadian border because the vast majority of concerns expressed about
the Travel Initiative are from communities and states that border
Canada. Our observations are based on the challenges faced by existing
frequent traveler and other border-crossing programs as well as on our
understanding of how the Travel Initiative is likely to be structured.
Our work was conducted between January 2006 and May 2006 in accordance
with generally accepted government auditing standards. Appendix I
discusses our scope and methodology in more detail.
Results:
DHS and State are within 20 months of the January 2008 deadline for
implementing the Travel Initiative, and while the agencies have taken
initial steps to carry out the program, broad and extensive challenges
remain. The steps taken and the challenges that remain fall into five
main areas: (1) making a decision about what documents individuals will
need when they enter the United States, (2) resolving technical and
programmatic issues related to PASS cards, (3) proceeding through the
rule-making process, (4) carrying out a cost-benefit study, and (5)
managing implementation of the program. Achieving the intended security
benefits of the Travel Initiative by the statutory milestone date,
without simply requiring all travelers to carry a passport, appears in
jeopardy, given the volume of work that remains. Here is a summary of
steps taken and the challenges that remain.
Documentary requirements: DHS still needs to decide what alternative
documents, if any, will be acceptable in lieu of a passport when U.S.
citizens and citizens of Canada enter or return to the United States--
and, in some cases, what documentation individuals will have to present
in order to obtain them. DHS and State have taken steps to propose or
examine an alternative form of a passport, called a PASS card, or
alternatives to a passport, such as frequent traveler programs and day
passes, but final decisions are still in process. Determining
documentary requirements is key to making decisions on how DHS inspects
individuals entering or returning to the United States from Canada.
Also, these decisions are the first steps needed to make progress
toward meeting the mandate.
Implementing PASS cards: If DHS and State elect to proceed with a PASS
card as an alternative form of a passport for U.S. citizens crossing
land borders, they will still need to make key decisions about it. For
example, DHS and State have taken steps to identify the PASS card as a
lower-cost alternative form of a passport, and they have had extensive
discussions on which type of technology to use in a PASS card, but the
issue remains unresolved.[Footnote 7] One type of technology allows the
cards to be read by equipment that is as much as 30 feet away. For
example, existing frequent traveler programs at land ports use this
technology. A second type of technology requires the card to be read
from close proximity. Deciding on a technology involves a broad set of
considerations that include (1) utilizing security features to protect
personal information, (2) ensuring that proper equipment and facilities
are in place to facilitate crossings at land borders, and (3) enhancing
compatibility with other border-crossing technology currently in use.
Whatever technology is chosen, designing, developing, testing, and
evaluating the card and reader system will take time. Once the cards
and equipment are deemed suitable, DHS and State will need to develop
and implement operating procedures and policies to issue and inspect
the cards. Installation time for the reader equipment will also need to
be factored in, if the PASS card option is implemented.[Footnote 8] For
example, not all land ports of entry currently have equipment to read
documents, and existing equipment may not be compatible with the
approach chosen. Other decisions on the PASS card that remain open
include the cost of the card and equipment and whether the card will
replace cards used in frequent traveler programs.[Footnote 9]
Rule-making process: To implement the Travel Initiative, DHS and State
plan to issue three rules to establish (1) the documentary requirements
for travel by air and sea, (2) the requirements for using a PASS card,
and (3) the documentary requirements for travel by land.[Footnote 10]
Although DHS and State are not required to implement the law until
January 2008, they have set an interim goal of implementing the rule
for air and sea travelers a year early, or by January 2007, as part of
the strategy to implement all three rules by the 2008 deadline. This
interim goal appears in jeopardy since DHS and State have yet to submit
the rule to the Office of Management and Budget (OMB) for review and to
the public for comment--both of which, along with the process of
responding to comments received and modifying the rule as needed, can
take up to 8 months or more to complete.[Footnote 11] Adding pressure
to the schedule is the fact that the regulation is generally issued at
least 2 months before it takes effect. DHS and State face no legal
requirement to meet this self-imposed early deadline for the first
rule, but being unable to do so will mean that more work will shift
into the 1 year that remains. According to officials at State, the rule
for air and sea has been drafted and is now in the final clearance
process at DHS.
Cost-benefit study: One requirement of the rule-making process is that
any decision on an approach must be preceded by a comprehensive and
publicly disclosed cost-benefit study when the economic impact may be
$100 million or more in any single year.[Footnote 12] This requirement
could apply to decisions about documentation for crossing the
border.[Footnote 13] DHS is in the early stages of studying costs and
benefits, but much more work will be needed. For example, examining the
costs of the new rules could involve studies of the extent to which the
Travel Initiative discourages tourism and commerce by increasing the
cost of acquiring needed documentation and by possibly creating delays
at the border. In addition, policy guidance calls on agencies to
analyze alternative actions, such as the use of frequent traveler
programs, and to examine expected benefits, such as the expected
reduction in lives lost, property damage, and disruptions to the
economy as a result of reducing the likelihood of a terrorist attack.
The requirement to include the Mexican border in the study further
expands the scope and the work involved. Completing the study is
dependent, in part, on knowing what kind of card and technology that
DHS and State are likely to use--a decision that remains open. Appendix
III provides more details on cost-benefit and other analytic
requirements.
Managing implementation: Once decisions are made on what documents will
be needed, DHS and State will face challenges in program implementation
and management. Major challenges remain in developing (1) an
implementation plan, (2) budget estimates, (3) awareness programs for
the public, (4) training programs for DHS staff, (5) bilateral
coordination with Canada, and (6) a common understanding of how the
Travel Initiative links to the overall strategy for securing the
nation's borders. Falling short in any of these areas may hinder the
ability of the agencies to achieve their goal of improving security
while facilitating commerce and tourism. According to DHS officials,
they have formed working groups to take action in each of these areas,
but much more work remains in developing plans and approaches that
improve the likelihood of program success. For example, DHS did not
request funds for fiscal year 2007 to implement the Travel Initiative,
and it remains unclear what funds DHS will need to install equipment or
infrastructure to support the use of a PASS card by January 2008, if
PASS is chosen. In contrast, State has developed and begun implementing
plans for processing more passports in preparation for the Travel
Initiative, and it has requested funds for fiscal year 2007 to do so.
For example, it has hired more staff to adjudicate an increase in
passport demand. In addition, State and DHS have been involved in
numerous outreach efforts to members of Congress and stakeholders in
northern border communities, but much more remains to be done once key
decisions are made on the program.
The various alternative documents or programs proposed by federal
agencies, the business community, and others as substitutes for a U.S.
passport or PASS card all present major challenges as well. The
suggested alternatives fall into three main categories: (1) frequent
traveler programs, (2) driver's licenses with enhanced security
features and the capacity to denote citizenship, and (3) day passes.
Appendix IV offers more details on these alternatives. Below we discuss
the major challenges for each of these alternatives.
Frequent traveler programs for land crossings: Participants in these
programs are required to undergo an application process that includes
providing fingerprints, undergoing an interview with a DHS or Canadian
officer, submitting evidence of citizenship and identity, and taking a
digital photograph. The cards issued to participants show citizenship
and identity and, according to DHS, are expected to meet the
requirements of the Travel Initiative, including the requirement that
DHS and State make readily available a registered traveler program.
Furthermore, they would provide Canadian citizens with an alternative
to a passport for entering the United States. While DHS could involve
more U.S. and Canadian citizens who frequently cross the border in
these programs, these documents may not be useful as alternatives to a
passport for all travelers because (1) millions of U.S. and Canadian
citizens who cross the northern border do so only once a year or once
every several years and they may not want to incur the cost of a card,
and (2) for the vast majority of individuals seeking to cross the
border, application and processing times and requirements could be as
extensive as for passports.[Footnote 14] In addition, several
management and policy decisions would need to be made in order to make
using frequent traveler programs a viable alternative under the Travel
Initiative, including identifying the requirements for making these
cards official travel documents and determining how to make the
application process accessible to all citizens. DHS and State currently
do not view these cards as official travel documents.
Driver's licenses with enhanced security features: A number of
stakeholders are advocating a driver's license with enhanced security
features as a substitute for a passport. They maintain that when states
adopt driver's licenses with enhanced security features in accordance
with the REAL ID Act, the document should be sufficient for land border
crossings under the Travel Initiative.[Footnote 15] However, the new
driver's licenses will not show citizenship and therefore would not by
themselves meet the legal requirements of the Travel Initiative.
Congress most likely would have to give states the statutory authority
to determine citizenship and display it on driver's licenses or
establish a process for the federal government to determine the
citizenship status of driver's license applicants and provide this
information to state authorities.[Footnote 16] This approach also would
not enable Canadians to continue to enter the United States with a
driver's license because Canadian driver's licenses would not be
subject to any new enhanced security and citizenship requirements
imposed in the United States.
Day passes:[Footnote 17] This alternative would likely involve having
U.S. citizens fill out a pass application on the U.S. side of the
border and show the pass upon their return to the United States. It
could provide travelers with an option to cross the border without
obtaining a passport and without making travel plans in advance. DHS
has not decided whether a day pass would cover documentary requirements
for Canadian citizens wanting to cross the border. However, there are
many operational issues to consider, including (1) the process that DHS
would use to verify a person's identity and citizenship to obtain the
pass; (2) the security features needed to be included on the day pass
to prevent fraud and counterfeiting; (3) the additional facilities,
infrastructure, and staff needed to issue a day pass; and (4) the
training staff will need to process day pass requests. For example,
U.S. facilities at popular border crossings would need the necessary
space and personnel to accommodate and process the people who would
need to stop, fill out their application forms, and have their
documentation verified. This would take time and individuals may not
view a day trip as worth the time it could take to obtain a pass.
Concluding Observations:
DHS and State have taken some steps to carry out the Travel Initiative.
However, they have a long way to go to implement their proposed plans,
and the time to get the job done is slipping by. The many challenges
that they face mirror the complexities and the nuances involved in
developing a border security program that is a major cultural change in
the way that individuals and commerce cross the U.S.-Canadian border.
There are no easy alternatives to a passport or a PASS card that meet
the legal requirement to show identity and citizenship. Alternative
programs or documents, such as frequent traveler programs and driver's
licenses with enhanced security features, have their own set of
challenges, and using them in lieu of a passport will not easily
resolve the management issues faced by DHS and State. These conditions,
coupled with the significant cross-border commerce and tourism,
heighten the need to take care in planning, evaluating, testing, and
implementing an approach that ultimately improves security at the
northern border without adversely affecting commerce and tourism in a
significant way. Attempting to address these challenges under what
appears to be an ambitious schedule adds uncertainty and risk.
Agency Comments and Our Evaluation:
We provided a draft of this report to DHS and State for comment. DHS
did not have official comments on our draft, but did provide technical
comments which we incorporated in this report where appropriate.
In its official comments, State generally agreed with the challenges we
described in the draft report, but expressed concern that our
concluding observations did not adequately recognize various steps it
had taken to carry out the program. State provided examples of actions
it had taken in several areas, such as proceeding with the rulemaking
process, estimating the increase in passport demand, developing the
PASS card, examining the cost of a passport, and carrying out an
outreach effort to members of Congress and the public. We revised the
report where appropriate to recognize the steps taken by State in these
areas. These steps notwithstanding, we continue to believe that the
work remaining for both DHS and State, the complexities and nuances
involved, and the time required to complete the implementation steps
present a challenge for the agencies to meet the statutory deadline.
State's official comments are reprinted in appendix V.
As arranged with your offices, unless you publicly announce its
contents earlier, we plan no further distribution of this report until
30 days after its issue date. At that time, we will send copies of this
report to interested congressional committees and subcommittees. We
will also make copies available to others on request. In addition, this
report will be available at no charge on GAO's Web site at MACROBUTTON
HtmlResAnchor http://www.gao.gov.
If you or your staff have any questions about this report or wish to
discuss the matter further, please contact me at (202) 512-8777 or
MACROBUTTON HtmlResAnchor stanar@gao.gov. Contact points for our
Offices of Congressional Relations and Public Affairs may be found on
the last page of this report. Other key contributors to this report
were John Mortin, Assistant Director, Neil Asaba, Chuck Bausell,
Frances Cook, Richard Hung, Sara Margraf, Amanda Miller:
Signed by:
Richard M. Stana:
Director, Homeland Security and Justice Issues:
Appendix I:
Scope and Methodology:
While the Travel Initiative applies to citizens of Bermuda, Canada, and
Mexico entering the United States from certain countries in North,
Central and South America, we focused our initial work on the U.S.-
Canadian border because the vast majority of concerns expressed about
the Travel Initiative were from communities and states that border
Canada. To determine what steps have been taken and what challenges
remain, we reviewed several announcements by DHS and State on their
plans and schedule for carrying out the initiative. At DHS and State
headquarters, we met with program officials in charge of carrying out
the Travel Initiative and talked to them about the current status of
the program. We also reviewed key procedures for carrying out cost-
benefit studies, and we discussed the process for issuing new
regulations with DHS lawyers involved in the rule-making process. We
also reviewed reports on border security with Canada. As part of our
work, we met with local stakeholders, such as officials from the
Bellingham/Whatcom County Chamber of Commerce (Washington) and the
Buffalo Niagara Partnership (New York), who have expressed concern to
members of Congress regarding the initiative and the economic impact it
might have on northern border communities. We reviewed pertinent laws
and regulations related to the Travel Initiative and other documents
provided by DHS and State. Our ability to analyze these challenges was
limited because key decisions about the program have not yet been made.
To determine what challenges have been identified with alternative
travel documents or programs that have been suggested as substitutes
for passports or PASS cards under the Travel Initiative, we reviewed
program documents on frequent traveler programs, such as NEXUS--a DHS
program for commuters who live in border communities who frequently
travel back and forth across the border--and FAST--a program for truck
companies and their drivers who transport goods and commerce across the
border. We selected and visited ports of entry in Blaine, Washington,
and Buffalo, New York, because of their geographic location and because
each has NEXUS and FAST facilities. We also visited Alexandria Bay, New
York, because of its proximity to Buffalo, New York. At all three
locations, we met with staff in charge of border-crossing programs to
gain a better understanding of border-crossing procedures,
infrastructure, and technology. Our work was conducted between January
2006 and May 2006 in accordance with generally accepted government
auditing standards.
Appendix II:
General Overview of the Federal Rule-Making Process:
This appendix provides an overview of the steps in the rule-making
process for a significant regulatory action under Executive Order 12866
and the potential time involved for some of the steps.
Step 1: Agency (or agencies, if a joint rule) completes development of
the notice of proposed rule making (NPRM), which includes the proposed
rule and supplemental information.[Footnote 18]
Step 2: Agency submits the draft NPRM and supporting materials,
including any required cost-benefit analysis, to the Office of
Management and Budget (OMB) for review.
Step 3: OMB reviews the draft NPRM and supporting materials and
coordinates review of the proposed rule by any other agencies that may
have an interest in it.
Step 4: OMB notifies the agency in writing of the results of its
review, including any provisions requiring further consideration by the
agency, within 90 calendar days after the date of submission to
OMB.[Footnote 19]
Step 5: OMB resolves disagreements or conflicts, if any, between or
among agency heads or between OMB and any agency; if it cannot do so,
such disagreements or conflicts are resolved by the President or by the
Vice President acting at the request of the President.
Step 6: Once OMB notifies the agency that it has completed its review
without any requests for further consideration, the agency reviews the
NPRM and publishes it for public comment in the Federal Register.
Step 7: Agency is to give the public a meaningful opportunity to
comment on the proposed rule, which generally means a comment period of
not less than 60 days.
Step 8: Once the comment period has closed, the agency reviews the
comments received, makes appropriate revisions to the proposed rule,
and prepares a notice of the final rule, including supplemental
information with responses to comments received.[Footnote 20]
Step 9: Agency submits draft notice and final rule, including updated
supporting materials or cost-benefit analysis, to OMB for review.
Step 10: OMB reviews the draft notice, final rule, and supporting
materials; coordinates review by any other agencies that may have an
interest in the rule; and notifies the agency of the results within 90
calendar days after the date of submission to OMB.[Footnote 21]
Step 11: Once OMB notifies the agency that it has completed its review
without any requests for further consideration, the agency reviews the
rule one more time and generally publishes the final rule and
supplemental information in the Federal Register at least 60 days
before the new rule takes effect.
Appendix III:
Summary of Federal Guidelines for Cost-Benefit Analysis and Other
Analytic Requirements:
Section 6(a)(3)(C) of Executive Order 12866 (Regulatory Planning and
Review) and OMB Circular A-4 provide guidance to federal agencies
involved in developing a cost-benefit analysis for a rule that may have
an annual effect on the economy of $100 million or more or adversely
affect in a material way the economy or certain other sectors.[Footnote
22] OMB designed this guidance to standardize the way benefits and
costs of federal regulatory actions are measured and reported. Besides
calling on agencies to estimate the overall benefits and costs of a
proposed rule, this guidance stipulates that an agency's cost-benefit
analysis should provide a separate description of distributional
effects (i.e., how both benefits and costs are distributed among
populations of particular concern) so that decision makers can properly
consider them along with the effects on economic efficiency.
Another area of the guidance deals with the scope of the analysis as it
pertains to effects outside the United States. While the guidance notes
that analysis should focus on benefits and costs that accrue to
citizens and residents of the United States, it also states that where
an agency chooses to evaluate a regulation that is likely to have
effects beyond the borders of the United States, these effects should
be reported separately.
OMB Circular A-4 also reminds agencies that in preparing analytical
support for rule making, there are a number of analytic requirements
imposed by law and executive order that are in addition to the
regulatory analysis requirements of Executive Order 12866. An agency
should consider whether the rule will need specialized analysis of any
of the following issues.[Footnote 23]
Impact on small businesses and other small entities: Under the
Regulatory Flexibility Act (5 U.S.C. §§ 603-604), agencies must prepare
an initial and a final regulatory flexibility analysis (RFA) if the
rule making could have a significant impact on a substantial number of
small entities. Circular A-4 provides that an agency should consider
posting its RFA on the Internet so the public can review its findings.
Circular A-4 also states that an agency should have guidelines on how
to prepare an RFA and encourages agencies to consult with the Chief
Counsel for Advocacy of the Small Business Administration on
expectations concerning what is an adequate RFA. Executive Order 13272
requires an agency to notify the Chief Counsel for Advocacy of any
draft rules that might have a significant economic impact on a
substantial number of small entities.
Analysis of unfunded mandates: Under the Unfunded Mandates Act (2
U.S.C. § 1532), an agency must prepare a written statement about
benefits and costs prior to issuing a proposed or final rule (for which
the agency published a proposed rule) that may result in aggregate
expenditure by state, local, and tribal governments, or by the private
sector, of $100 million or more in any year (adjusted annually for
inflation). According to OMB, an agency's analytical requirements under
Executive Order 12866 are similar to the analytical requirements under
this act, and thus the same analysis may permit it to comply with both
analytical requirements.
Information collection, paperwork, and record-keeping burdens: Under
the Paperwork Reduction Act (44 U.S.C. §§ 3506-3507), an agency will
need to consider whether its rule making (or other actions) will create
any additional information collection, paperwork, or record-keeping
burdens. These burdens are permissible only if it can justify the
practical utility of the information for the implementation of its
rule. OMB approval will be required of any new requirements for a
collection of information imposed on 10 or more persons, and a valid
OMB control number must be obtained for any covered paperwork.
According to Circular A-4, an agency's Chief Information Officer should
be able to assist it in complying with the Paperwork Reduction Act.
Appendix IV:
Alternatives Proposed for Use under the Travel Initiative and Their
Suitability for Use in Lieu of a Passport:
We reviewed several alternative documents or programs that have been
proposed as substitutes for a passport under the Travel Initiative.
Table 1 summarizes several alternatives that have been proposed for the
U.S.-Canadian land border. For comparison purposes, we also include
Canadian and U.S. passports in the table. Frequent traveler programs
refer to the NEXUS and FAST programs, which operate along the northern
border.[Footnote 24] NEXUS is for commuters who live in border
communities who frequently travel back and forth across the border, and
FAST is for truck companies and their drivers who transport goods
across the border. Driver's licenses with enhanced security features
are required under the REAL ID Act.[Footnote 25] The act requires
states that want their driver's licenses to be accepted for official
federal purposes to adopt standard practices for adding enhanced
security features in driver's licenses by May 2008. The act does not
specifically require states to show citizenship on driver's licenses.
Because DHS and State have not made a final decision as to which
alternative to implement or whether to implement one at all, our
assessment is based upon the information we obtained from interviews
with DHS and State officials and announcements made by the agencies.
Appendix IV:
Table 1: Alternatives Proposed for Use under the Travel Initiative for
the U.S.-Canadian Land Border[A]:
PASS card;
Establishes citizenship: Checked;
Establishes identity: Checked;
Available to U.S. citizens: Checked;
Available to Canadian citizens: [Empty];
Cost: Undecided;
Document validity: Undecided.
Frequent traveler programs;
Establishes citizenship: Checked;
Establishes identity: Checked;
Available to U.S. citizens: Checked;
Available to Canadian citizens: Checked;
Cost: $50 USD; $80 CAN;
Document validity: 5 years.
Enhanced driver's licenses;
Establishes citizenship: [Empty];
Establishes identity: Checked;
Available to U.S. citizens: Checked;
Available to Canadian citizens: [Empty];
Cost: Varies by state law;
Document validity: Varies by state law.
Day passes;
Establishes citizenship: Undecided;
Establishes identity: Undecided;
Available to U.S. citizens: Undecided;
Available to Canadian citizens: Undecided;
Cost: Undecided;
Document validity: Undecided.
U.S. passport[B];
Establishes citizenship: Checked;
Establishes identity: Checked;
Available to U.S. citizens: Checked;
Available to Canadian citizens: [Empty];
Cost: $97 USD;
Document validity: 10 years.
Canadian passport[C];
Establishes citizenship: Checked;
Establishes identity: Checked;
Available to U.S. citizens: [Empty];
Available to Canadian citizens: Checked;
Cost: $87 CAN;
Document validity: 5 years.
Source: GAO analysis of DHS and State data.
[A] According to DHS officials, other documents that could be
considered are U.S. military identification and American Indian/tribal
identification.
[B] The cost of a U.S. passport is $97 USD for an adult 16 years and
older and is valid for 10 years. The cost of a U.S. passport for a
child under 16 is $82 USD and is valid for 5 years.
[C] Canadian passports issued to Canadians living in Canada cost $87
CAN. For those Canadians living in the United States, the cost to
obtain a Canadian passport is $97 CAN. For those Canadians living
elsewhere, the cost to obtain a passport is $100 CAN.
[End of table]
Appendix V:
Comments from the U.S. Department of State:
[See PDF for Image]
[End of Figure]
(440481):
FOOTNOTES
[1] GAO, Counterfeit Documents Used to Enter the United States from
Certain Western Hemisphere Countries Not Detected, GAO-03-713T
(Washington, D.C.: May 13, 2003).
[2] Pub. L. No. 108-458, § 7209, 118 Stat. 3638, 3823 (2004).
[3] A study commissioned by State estimated that 26 percent of the
eligible citizen population in the United States have passports. A
Study to Determine the Inaugural and Annual Demand for U.S. Passports
by U.S. Citizens Living In and Traveling to Canada, Mexico, and the
Caribbean; Phase Four: U.S. Land Border Passport Demand Survey,
prepared for the Passport Services Office, Bureau of Consular Affairs,
U.S. Department of State, by BearingPoint (October, 2005)
[4] According to State, it is also examining the cost of a passport to
see whether it can be reduced.
[5] The United States and Canada operate two frequent traveler
programs: NEXUS and FAST. NEXUS is for commuters who live in border
communities who frequently travel back and forth across the border.
FAST is for truck companies and their drivers who transport goods
across the border.
[6] The act requires DHS and State to seek to expedite the travel of
frequent travelers, including those who reside in border communities,
and that, in doing so, they make readily available a registered
traveler program.
[7] The technology that DHS and State are considering is called radio
frequency identification (RFID). RFID is an automated data-capture
technology that can be used to electronically identify, track, and
store information contained on a tag. Identification and tracking
capabilities are provided using wireless communication to transmit
data. Current RFID applications include building access badges, highway
toll collection, and supply chain management.
[8] While the Intelligence Reform and Terrorism Prevention Act of 2004
addresses documentary requirements for certain cross-border travelers,
it is silent on whether such documents should be read electronically.
[9] According to officials at State, the department will issue and
adjudicate the PASS card in the same way as traditional passports.
[10] In September 2005, DHS and State issued an advance notice of
proposed rule making that invited the public to provide comments on
possible means of implementing the Travel Initiative, including
comments on documents other than passports that should be accepted.
[11] See appendix II for a more detailed description of the steps and
potential time frames involved in the rule-making process.
[12] Executive Order 12866--Regulatory Planning and Review--states that
for any regulation that may result in an annual effect on the economy
of $100 million or more or adversely affect in a material way the
economy, a sector of the economy, productivity, competition, jobs, the
environment, public health or safety, or state, local, or tribal
governments or communities, an agency must develop and submit a cost
benefit analysis to OMB and make it available to the public after
publication of the proposed regulation in the Federal Register. While
agencies must conduct an assessment of the potential costs and benefits
for any rule deemed to be significant under the executive order, this
more rigorous requirement is triggered by the $100 million threshold.
[13] A study commissioned by State estimated that 6.8 million, or about
51 percent, of all U.S. citizens who visited Canada in 2005 did not
possess a passport. If 2 million of these individuals purchased a PASS
card for $50 in any single year, the Travel Initiative would meet the
$100 million threshold. A Study to Determine the Inaugural and Annual
Demand for U.S. Passports by U.S. Citizens Living In and Traveling to
Canada, Mexico, and the Caribbean; Phase Four: U.S. Land Border
Passport Demand Survey, prepared for the Passport Services Office,
Bureau of Consular Affairs, U.S. Department of State, by BearingPoint
(October, 2005).
[14] Currently, less than 1 percent of U.S. citizens who cross the
northern border are participants in frequent traveler programs.
[15] In May 2005, Congress passed legislation--known as the REAL ID Act
of 2005 (Pub. L. No. 109-13, §§ 201-207, 119 Stat. 302, 311-316 )--that
requires states that want their driver's licenses to be accepted for
official federal purposes to adopt standard practices for adding
enhanced security features in driver's licenses by May 2008.
[16] The REAL ID Act does not specifically allow or require states to
show citizenship on driver's licenses. A driver's license with
citizenship information on it could be controversial if it were
perceived as a national identification card since concerns have been
raised about such cards in regards to individuals' privacy and freedom
to travel.
[17] Unlike frequent traveler programs that DHS has operated for
several years, the proposal to use a day pass has recently surfaced,
and it is in the very early stages of consideration.
[18] An agency may also begin this process with an advance notice of
proposed rule making that seeks comments and suggestions from the
public on the potential content of a forthcoming NPRM, but this step is
not required by law or executive order in most cases.
[19] Executive Order 12866 provides that, for rules governed by a
statutory deadline, the agency shall, to the extent practicable,
schedule rule-making proceedings so as to permit sufficient time for
OMB review. It also provides that when an agency is obligated by law to
act more quickly than normal review procedures allow, the agency shall
comply with the requirements to submit the proposed rule and required
supporting materials to OMB, "to the extent practicable."
[20] If the final rule is materially different from the proposed rule,
possibly because of new issues raised or other important legal or
substantive developments during the comment period, an agency may
decide to publish it as a proposed rule instead with a second comment
period. This approach helps the agency provide sufficient notice and
opportunity for public comment on how the rule addresses the new issues
or developments, but it delays implementation of the final rule.
[21] This time period is reduced to 45 days if OMB has previously
reviewed the rule and supporting information and there has been no
material change in the facts and circumstances upon which the rule is
based.
[22] OMB Circular A-4 (2003).
[23] OMB Circular A-4 requires agencies to address seven issues to
determine whether a specialized analysis will be needed. In this
appendix, we included only those that may pertain to the Travel
Initiative.
[24] Since we are focusing our work on the northern border, we did not
include SENTRI, a frequent traveler program for those crossing the
southern border, in our evaluation.
[25] Pub. L. No. 109-13, §§ 201-207, 119 Stat. 302, 311-316 (2005).
GAO's Mission:
The Government Accountability Office, the investigative arm of
Congress, exists to support Congress in meeting its constitutional
responsibilities and to help improve the performance and accountability
of the federal government for the American people. GAO examines the use
of public funds; evaluates federal programs and policies; and provides
analyses, recommendations, and other assistance to help Congress make
informed oversight, policy, and funding decisions. GAO's commitment to
good government is reflected in its core values of accountability,
integrity, and reliability.
Obtaining Copies of GAO Reports and Testimony:
The fastest and easiest way to obtain copies of GAO documents at no
cost is through the Internet. GAO's Web site ( www.gao.gov ) contains
abstracts and full-text files of current reports and testimony and an
expanding archive of older products. The Web site features a search
engine to help you locate documents using key words and phrases. You
can print these documents in their entirety, including charts and other
graphics.
Each day, GAO issues a list of newly released reports, testimony, and
correspondence. GAO posts this list, known as "Today's Reports," on its
Web site daily. The list contains links to the full-text document
files. To have GAO e-mail this list to you every afternoon, go to
www.gao.gov and select "Subscribe to e-mail alerts" under the "Order
GAO Products" heading.
Order by Mail or Phone:
The first copy of each printed report is free. Additional copies are $2
each. A check or money order should be made out to the Superintendent
of Documents. GAO also accepts VISA and Mastercard. Orders for 100 or
more copies mailed to a single address are discounted 25 percent.
Orders should be sent to:
U.S. Government Accountability Office
441 G Street NW, Room LM
Washington, D.C. 20548:
To order by Phone:
Voice: (202) 512-6000:
TDD: (202) 512-2537:
Fax: (202) 512-6061:
To Report Fraud, Waste, and Abuse in Federal Programs:
Contact:
Web site: www.gao.gov/fraudnet/fraudnet.htm
E-mail: fraudnet@gao.gov
Automated answering system: (800) 424-5454 or (202) 512-7470:
Public Affairs:
Jeff Nelligan, managing director,
NelliganJ@gao.gov
(202) 512-4800
U.S. Government Accountability Office,
441 G Street NW, Room 7149
Washington, D.C. 20548:
