Impact of Regulatory Compliance Costs on Small Airports (2013) / Chapter Skim
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1 S U M M A R Y Over time, federal, state, and local governments have gradually increased the compliance requirements for U.S. airports.
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2economic evaluations) to the extent they were available.
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3 • PGLs -- 10 • PFC updates -- 7 • Other -- 3 The requirements fall broadly into the following categories: • Part 139 airport certification requirements • Airport safety, standards, and design • Airport operations • AIP administration • PFC administration • Airport grant assurance compliance Security requirements adopted by the FAA during the study period are discussed in the Security Requirements section below. DOT Requirements During the study period, the DOT adopted 10 requirements applicable to small airports.
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4Security Requirements The nature, scope, and responsibility for airport security requirements were dramatically affected by the events in the United States on September 11, 2001 (9/11)
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5 Most Costly Requirements for the Small Airport Industry Table ES-2 presents the 20 federal requirements with the highest initial industry costs for small airports. Table ES-3 presents the 20 federal requirements with the highest recurring industry costs.
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6to predict the cost of a particular requirement. The results in the two tables were therefore calculated using per-airport average costs, rather than unit costs based on activity levels.
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7 for non-airport contributions. Non-airport contributions refer to federal and state grants and other third-party funding.
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8per airport, respectively. In some cases, the cost is the total reported cost of complying with an existing requirement, not the incremental cost of a new requirement adopted during the study period.
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9 Funding Compliance Costs Airports pay for compliance costs from FAA grants, PFCs, other airport funds, and other sources -- sources that would otherwise be available for airport development. The case studies show that compliance with many of the new requirements added to operating expenses that were absorbed fully by airports, and other requirements were met by using existing staff time -- taking time away from day-to-day duties in operating an airport.
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10 Conclusions The Cost of Compliance with Federal Requirements Continues to Grow A total of 291 federal actions related to FAA/DOT, environmental, security, and occupational safety and health requirements were issued from 2000 to 2010. Many new requirements add continuing costs to airports by specifying periodic updates, inspections, monitoring, etc.
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11 Rank1 Requirement Industry Recurring Costs Non-airport Funding2 Industry Net Recurring Costs Percentage Amount 1 Vehicle Operations in Aircraft Operations Area, Enforcement and Control $29,191,000 46% $13,345,060 $15,845,940 2 Vehicle Operations in Aircraft Operations Area, Emergency Operations $12,229,000 1% $101,633 $12,127,367 3 Requirements for Use of Geospatial Information System (GIS) Techniques $5,642,000 0% $0 $5,642,000 4 Part 139 Aircraft Rescue & Firefighting (ARFF)
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12 Environmental regulations are also reviewed periodically to evaluate options that streamline requirements and update outdated practices. For example, prior to 2002, the SPCC regulations had not been updated since 1990.
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13 Second, based on the survey results, cost estimates published by agencies often understate the results of airports' actual experience. For example, the FAA's projections of the cost of compliance with the 2004 amendments to Part 139 were lower than the initial and recurring costs reported by existing certificate holders and lower than the initial costs reported by newly certificated carriers.
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14 Security Requirements TSA and AIP funds have been provided for projects to comply with security requirements. As with FAA requirements, the issues of local matching requirements and limits on annual appropriations also arise.
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15 specialized expertise (through staff or contractors) needed to understand and implement new compliance requirements as they are adopted.
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16 the future. Most of the options, however, are not within the airports' control (and are outside the scope of this study)
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