By JON W. GLASS, The Virginian-Pilot
© February 10, 2007 | Last updated 7:49 PM Feb. 9
NORFOLK - While shipbuilding giant Northrop Grumman Newport News awaits an answer from the Coast Guard, it appears that workers at other local shipyards will not need new federal identification cards, industry officials said Friday.
"There's been some progress," said Joe Carnevale, a retired rear admiral and senior defense adviser for the Washington-based Shipbuilders Council of America, which is working with the region's Virginia Ship Repair Association. "Our expectation is that most will not. It looks like the Coast Guard is taking a very rational, reasonable approach."
A Coast Guard spokesman said Friday that a decision could be made by late February on whether Northrop Grumman's 19,000 employees will be required to have the cards.
At issue in Northrop Grumman's case is whether a Navy security plan the shipbuilder now has in place provides safeguards equal to requirements under the new law.
The aim of the biometric ID system, developed by the Department of Homeland Security, is to make the nation's ports more secure from terrorist attacks. Workers will have to undergo FBI background checks and submit fingerprints to be embedded on computer chips in the cards.
At the port of Hampton Roads, workers could begin using the cards as early as July.
The cards, known as the Transportation Worker Identification Credential, or TWIC, are intended primarily to screen port workers who need unescorted access to transport cargo, such as longshoremen and truckers.
However, the law also applies to shipyards able to transfer or permanently store large amounts of bulk fuel oil and other hazardous materials that could be potential terrorist targets
That shipyard provision, which ensnared Northrop Grumman's yard, has been controversial and also sparked confusion over which yards had to comply.
Northrop Grumman asked the Coast Guard for a waiver, arguing that its work on nuclear-powered submarines and aircraft carriers places the yard under stringent Defense Department security rules.
Company officials contend that for them, the new Homeland Security rules are redundant, adding unnecessary costs that ultimately would be passed on to the Navy - and taxpayers. Smaller local shipyards, who also deal primarily with the Navy, expressed similar concerns.
Steven Blando, a Coast Guard spokesman in Washington, said the agency has been working with the Navy to review the classified security plan in place at Northrop Grumman's yard.
"That process will continue until the latter part of February, during which time the review will be briefed up to senior Coast Guard and Navy leadership," Blando said in a statement. "A decision will be made at that time on whether the DoD plan, with it s robust security measures, can be recognized as equivalent" to the new maritime security law.
If the shipbuilder's existing plan is deemed adequate, its workers will not need TWIC cards.
Mal Branch, president of the Virginia Ship Repair Association, said much of the confusion over the provision covering shipyards has been cleared up since the Coast Guard issued final rules for TWIC last month. Things look better for the region's smaller repair yards, he said.
The law applies only to shipyards able to transfer at least 10,500 gallons - or 250 barrels - of petroleum products or other hazardous materials. Even then, some small facilities - those with a permanent fuel-oil storage capacity of less than 42,000 gallons - have successfully won waivers from that rule, the Coast Guard said.
Most local yards cannot permanently store anywhere near those levels of fuel oil. "There is a pretty strong feeling that will probably end up exempting most of our yards," Branch said. "There seems to be a lot more optimism now."
Beyond that, he said, a Coast Guard ruling favorable to Northrop Grumman would bolster the other yards' chances of escaping TWIC, because they also have Navy security plans in place.
· Reach Jon W. Glass at (757) 446-2318 or jon.glass@pilotonline.com.