Findings of ACRP Report 90 and Application to INSERT NAME OF AIRPORT Issues Small airports face increasing regulation Compliance adds costs to INSERT AIRPORT NAME Compliance adds substantial industry costs ID: 1027414
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1. Regulatory Compliance Costs and the Impact on Small AirportsFindings of ACRP Report 90 and Application to [INSERT NAME OF AIRPORT]
2. IssuesSmall airports face increasing regulationCompliance adds costs to [INSERT AIRPORT NAME]Compliance adds substantial industry costsSmall airports have limited means to raise revenueFederal funding is shrinkingCompliance reduces funds available for revenue-generating services and facilities“One-size-fits-all” standards result in extra costs on small commercial airportsOptions to reduce compliance costs1
3. Small commercial airports face increasing regulatory requirements291 requirements adopted from 2000 to 2010Equivalent of one new requirement every two weeksRequirements continue to growCOMPLIANCE ACTIONS ADOPTED IN 2000-102
4. Compliance Adds Costs to [INSERT AIRPORT NAME]Compliance Costs for [INSERT AIRPORT NAME]FAA/DOT RequirementsEnvironmental RequirementsSecurity RequirementsOSHA RequirementsTotal Compliance Costs3
5. Most Costly Requirements for [INSERT AIRPORT NAME]Requirements with Highest Initial CostRequirement$$$$$$$$$4
6. Most Costly Requirements for [INSERT AIRPORT NAME]Requirements with Highest Recurring CostRequirement$$$$$$$$$5
7. Compliance Results in Substantial Aggregate Industry CostsTotal Small Airport Industry CostsFAA/DOT Requirements$1,459,500,000Environmental Requirements$90,200,000Security Requirements$610,800,000OSHA Requirements$11,700,000Total Compliance Costs$2,172,200,0006
8. Most Costly Requirements for the Small Airport IndustryRequirements with Highest Industry Initial Cost (Before Deducting Federal Funds)RSA Requirements (FAA)$695,166,000“Any other” Equipment or Systems for Access Control (Security)$265,608,000Perimeter Fencing for Security (FAA)$146,982,000Perimeter Fencing for Wildlife Hazards (FAA)$138,296,000Physical Access Systems (Security)$130,122,0007
9. Most Costly Requirements for the Small Airport IndustryRequirements with Highest Industry Recurring Cost (Before Deducting Federal Funds)Vehicles in AOA, Enforcement & Control (FAA)$29,191,000Vehicles in AOA, Emergency Operations (FAA)$12,229,000Use of GIS Techniques (FAA)$5,642,000ARFF Requirements, Newly Certificated Airports (FAA)$3,278,000Vehicles in AOA, Vehicle Access (FAA)$3,040,0008
10. Federal Funding is ShrinkingAIP and PFC funds are available only for capital projectsMost recurring costs are administrative or operational and do not qualify for these fundsAIP funding remained level at $3.5 billion from FY 2008 to FY 2011 and declined starting in FY 2012The federal AIP share decreased from 95% to 90% for small airports in recent legislationThe PFC cap has not increased since 20019
11. Compliance Costs Take Resources Away from Revenue-Generating Development and OperationsGrant funds, PFCs and other airport revenue used to pay for compliance requirements cannot be spent on projectsExample – [TO BE COMPLETED BY AIRPORT]10
12. Compliance Costs Take Resources Away from Revenue-Generating Development and OperationsLimited budgets force small airports to use existing staff to comply with requirements—taking time away from running the airport and providing service to the public.Example – [TO BE COMPLETED BY AIRPORT]11
13. “One-Size-Fits-All” Compliance Standards Result in Disproportionate Costs to Small AirportsMore cases of the FAA adopting uniform requirements for all size categories of airports Standards usually based on characteristics of large airportsStandards may be excessive to needs of small commercial airports and their usersA $500,000 requirement costs San Antonio Airport 7.5¢ per passenger. It costs [INSERT AIRPORT NAME] $[INSERT AMOUNT] per passengerAgency estimates of compliance costs (when made) are often below actual impacts12
14. Options to Reduce Future Cost ImpactsIncreased participation by small airports in notice and comment rulemaking to provide better cost information Increased participation by small airports when agencies publish draft policy and guidance documents for comment Other potential options:Are outside the control of airportsWould require action by government agencies and regulators(and thus were outside the scope of the research)13