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Regulatory Compliance Costs and the Impact on Small Airports

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Regulatory Compliance Costs and the Impact on Small Airports
Findings ofACRP Report 90and Application to[INSERT NAME OF AIRPORT]
Issues
Small 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 availablefor revenue-generatingservices andfacilities“One-size-fits-all” standardsresult in extra costson small commercial airportsOptions to reduce compliance costs
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Smallcommercial airportsface increasing regulatoryrequirements
291 requirements adopted from 2000 to 2010Equivalent of one new requirement every two weeksRequirementscontinue togrow
COMPLIANCE ACTIONS ADOPTED IN 2000-10
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Compliance Adds Costs to[INSERT AIRPORT NAME]
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Most Costly Requirements for[INSERT AIRPORT NAME]
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Most Costly Requirements for[INSERT AIRPORT NAME]
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ComplianceResults inSubstantial Aggregate Industry Costs
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Most Costly Requirements for the Small Airport Industry
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Most Costly Requirements for the Small Airport Industry
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Federal Funding is Shrinking
AIP 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 2001
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Compliance Costs Take Resources Away from Revenue-Generating Development and Operations
Grant funds, PFCs and other airport revenue used to pay for compliance requirements cannot be spent on projectsExample – [TO BECOMPLETED BY AIRPORT]
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Compliance Costs Take Resources Away from Revenue-Generating Development and Operations
Limited 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]
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“One-Size-Fits-All”Compliance Standards Result in Disproportionate Costs to Small Airports
More cases of the FAA adopting uniform requirements forall sizecategories of airportsStandards 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 impacts
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Options to Reduce Future Cost Impacts
Increased participation by small airports in notice and comment rulemaking to provide better cost informationIncreased participation by small airports when agencies publish draft policy and guidance documents for commentOther potential options:Are outside the control of airportsWould require action by government agencies and regulators(andthuswere outsidethe scope of theresearch)
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Regulatory Compliance Costs and the Impact on Small Airports