Impact of Regulatory Compliance Costs on Small Airports (2013) / Chapter Skim
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Pages 23-42
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23 To determine compliance cost impacts, this research used two sources: (1) published estimates of cost impacts and (2)
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24 scheduled service from small aircraft (Table A-1, Item 25)
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25 ment) and limited certificates (Class II airports under the 2004 amendment)
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26 equipment affected the fewest airports, but at 38 percent, the proportion was still substantial. Existing certificate holders were also potentially subject to requirements to modify ARFF facilities or equipment and perimeter fencing.
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27 The survey effort for PFCs focused on four changes to PFC requirements adopted during the study period, as follows: • Amendment to Part 158 to increase carrier compensation to 11 cents per PFC collected • Implementation of the non-hub airport PFC streamlining pilot program • New cost documentation requirements for projects exceeding $10 million in PFCs (PFC Update 50-06) • New documentation requirements for FAA staff analysis of PFC projects (PFC Update 59-09)
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28 did not ask whether airports were affected by the change in the carrier compensation rate, because all airports collecting PFCs are subject to the new rate. 3.2.5 DBE Requirements The DOT maintains separate rules for DBE participation in airport concessions (49 CFR Part 23, the airport concession DBE rule)
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29 the 25th and 75th percentile -- was used as a measure of average (central tendency) , unless otherwise indicated.
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30 almost five times higher than the FAA cost projection of $119,000. The FAA made separate initial cost projections for each newly designated category of full certificate holders, as follows: • Class I airports -- $1,360 • Class IV airports -- $1,791 The initial Part 139 compliance costs reported by existing certificate holders are approximately 690 times the higher FAA projection above.
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31 3.4 Relationship between Costs and Activity Levels The costs of the requirements summarized above were analyzed to determine if there was a relationship between the level of costs and two measures of activity -- passenger enplanements and commercial operations. In all but two cases, quantitative analyses showed that there did not appear to be a relationship between compliance costs and activity level.
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32 DBE concession plans and goals. While concession revenues and hence minimum DBE concession revenues may vary with the level of activity, the fundamental requirements to monitor and report performance and update the plan apply regardless of an airport's DBE concession revenue.
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33 industry costs are substantially less than costs of compliance with the FAA requirements listed in Tables 4 and 5. 3.6 Funding Sources The financial impact of compliance requirements can be reduced to the extent that airports may rely on outside funding sources.
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34 Requirement(s) Estimated Cost per Airport (Interquartile Mean)
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35 and Reform Act, Pub.
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36 AIP and PFC funds applied to comply with federal requirements cannot be used for the physical completion of projects that benefit airport users and generate a financial return to the airport. In addition, AIP and PFC funding has not kept pace with the growth in federal requirements.
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37 Use of PFC Funds Ai rp or ts 0 5 10 15 20 25 30 12 2 2 1 None Less Than Local Share Local Share Only More Than Local Share Figure 9. PFC funding levels for initial costs of wildlife fencing requirements.
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38 Use of PFC Funds Ai rp or ts 0 5 10 15 20 25 30 3 0 2 0 None Less Than Local Share Local Share Only More Than Local Share Figure 11. PFC funding levels for initial costs of RPZ requirements.
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39 Total count may include multiple responses for individual airports Use of AIP Funds Ai rp or ts 0 5 10 15 20 35 40 25 30 10 6 10 None Less Than Federal Share Full Federal Share Figure 14. AIP funding levels for initial costs of Part 139 requirements, existing Part 139 airports.
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40 Total count may include multiple responses for individual airports Use of AIP Funds Ai rp or ts 0 5 10 15 20 35 40 25 30 None Less Than Federal Share Full Federal Share 17 9 5 Figure 16. AIP funding levels for initial cost of requirements for vehicle operations.
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41 Total count may include multiple responses for individual airports Use of AIP Funds Ai rp or ts 0 5 10 15 20 35 40 25 30 None Less Than Federal Share Full Federal Share 2 3 16 Figure 18. AIP funding levels for initial costs of consultant selection and GIS requirements.
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42 0 5 10 15 20 Funding Sources Ai rp or ts Total count may include multiple responses for individual airports 19 2 5 3 100% Airport Partial AIP Partial Other Source 100% Other Source Figure 20. Funding sources for recurring costs of requirements for vehicle operations.
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