Update of Overflight Fees, 59661-59666 [2010-24342]
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Federal Register / Vol. 75, No. 187 / Tuesday, September 28, 2010 / Proposed Rules
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for this AD, if requested using the procedures
found in 14 CFR 39.19. Send information to
ATTN: Albert Mercado, Aerospace Engineer,
FAA, Small Airplane Directorate, 901 Locust,
Room 301, Kansas City, Missouri 64106;
telephone: (816) 329–4119; fax: (816) 329–
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notify your appropriate principal inspector
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use these actions if they are FAA-approved.
Corrective actions are considered FAAapproved if they are approved by the State
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Related Information
(k) Refer to MCAI EASA AD No.: 2010–
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Issued in Kansas City, Missouri, on
September 22, 2010.
Patrick R. Mullen,
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Aircraft Certification Service.
[FR Doc. 2010–24248 Filed 9–27–10; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 187
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[Docket No. FAA–2010–0326; Notice No. 10–
12]
RIN 2120–AJ68
Update of Overflight Fees
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
AGENCY:
This NPRM proposes to adjust
existing Overflight Fees by using current
SUMMARY:
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FAA cost accounting data and air traffic
activity data. This action is necessary
because operational costs for providing
air traffic control and related services
for Overflights have increased steadily
since the fees were established in 2001.
The adjustment of Overflight Fees
would result in an increased level of
cost recovery for the services being
provided.
Send your comments on or
before December 27, 2010.
ADDRESSES: You may send comments
identified by Docket Number FAA–
2010–0326 using any of the following
methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov and follow
the online instructions for sending your
comments electronically.
• Mail: Send comments to Docket
Operations, M–30; U.S. Department of
Transportation, 1200 New Jersey
Avenue, SE., Room W12–140, West
Building Ground Floor, Washington, DC
20590–0001.
• Hand Delivery or Courier: Take
comments to Docket Operations in
Room W12–140 of the West Building
Ground Floor at 1200 New Jersey
Avenue, SE., Washington, DC, between
9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.
• Fax: Fax comments to Docket
Operations at 202–493–2251.
For more information on the rulemaking
process, see the SUPPLEMENTARY
INFORMATION section of this document.
Privacy: We will post all comments
we receive, without change, to https://
www.regulations.gov, including any
personal information you provide.
Using the search function of our docket
web site, anyone can find and read the
electronic form of all comments
received into any of our dockets,
including the name of the individual
sending the comment (or signing the
comment for an association, business,
labor union, etc.). You may review
DOT’s complete Privacy Act Statement
in the Federal Register published on
April 11, 2000 (65 FR 19477–78) or you
may visit https://DocketsInfo.dot.gov.
Docket: To read background
documents or comments received, go to
https://www.regulations.gov at any time
and follow the online instructions for
accessing the docket, or, go to Docket
Operations in Room W12–140 of the
West Building Ground Floor at 1200
New Jersey Avenue, SE., Washington,
DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: For
technical questions concerning this
proposed rule contact David Lawhead,
DATES:
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59661
Office of Financial Controls, Financial
Analysis Division (AFC 300), Federal
Aviation Administration, 800
Independence Avenue, SW.,
Washington, DC 20591; telephone (202)
267–9759 facsimile (202) 267–5271,
e-mail to Dave.Lawhead@FAA.gov. For
legal questions concerning this
proposed rule contact Michael Chase,
AGC–240, Office of Chief Counsel,
Regulations Division, Federal Aviation
Administration, 800 Independence
Avenue, SW., Washington, DC 20591;
telephone: (202) 267–3110; e-mail to
michael.chase@faa.gov.
Later in
this preamble under the Additional
Information section, we discuss how
you can comment on this proposal and
how we will handle your comments.
Included in this discussion is related
information about the docket, privacy,
and the handling of proprietary or
confidential business information. We
also discuss how you can get a copy of
related rulemaking documents.
SUPPLEMENTARY INFORMATION:
Authority for This Rulemaking
The FAA’s authority to establish these
fees is found in Title 49 of the United
States Code. This rulemaking is
promulgated under the authority
described in Chapter 453, Section 45301
et seq. Under that Chapter, the FAA is
charged with prescribing regulations for
the collection of fees for air traffic
control and related services provided to
aircraft, other than military and civilian
aircraft of the United States government
or a foreign government, that transit
U.S.-controlled airspace, but neither
take off from nor land in the United
States (‘‘Overflights’’). This proposed
regulation is within the scope of that
authority.
I. Background
The FAA’s Overflight Fees were
initially authorized in the Federal
Aviation Reauthorization Act of 1996
(Pub. L. 104–264, enacted October 9,
1996). Overflight Fees are charges for
aircraft flights that transit U.S.controlled airspace, but neither land in
nor depart from the United States.
Following enactment of the initial fee
authority, and as mandated by that
authority, the FAA issued an Interim
Final Rule (IFR), ‘‘Fees for Air Traffic
Services for Certain Flights through U.S.
Controlled Airspace’’ (62 FR 13496), on
March 20, 1997. Under the terms of the
IFR, the FAA sought public comment on
the IFR while concurrently beginning to
assess Overflight Fees 60 days after its
publication, on May 19, 1997.
On July 17, 1997, petitions for judicial
review of the IFR were filed in the U.S.
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Court of Appeals for the District of
Columbia (the Court) by the Air
Transport Association of Canada
(ATAC) and seven foreign air carriers.
Those petitions were consolidated into
a single case (Asiana Airlines v. FAA,
134 F.3d 393 (D.C. Cir. 1998)). The
litigation proceeded throughout the
remainder of 1997 while the FAA
continued to collect fees pursuant to the
statute.
On January 30, 1998, the Court issued
a decision, upholding the FAA on three
process and procedure issues, but
vacating the Rule because the Court
found that the methodology the FAA
used to allocate costs did not conform
to the statute. The FAA immediately
suspended billing operations, and
eventually refunded nearly $40 million
in fees that had then been collected.
Although the 1997 IFR (62 FR 13496)
had been set aside by the Court, the
statutory requirement that the FAA
establish Overflight Fees through an IFR
remained in effect. One of the principal
criticisms the FAA had received from
the public commenters on its 1997 IFR
concerned the quality of the cost
information upon which the Overflight
Fees were based. The FAA had already
begun developing a new Cost
Accounting System (CAS) in 1996. Early
data from the new CAS was becoming
available in 1998. Thus, when the FAA
decided, following the initial litigation,
to issue a new IFR, a key element of that
decision was that the fees would be
derived from cost data from the new
CAS.
A new IFR was published in the
Federal Register on June 6, 2000 (65 FR
36002), with fees scheduled to go into
effect on August 1, 2000. This new IFR
was challenged in court by the ATAC
and a slightly different group of seven
foreign air carriers. The FAA began
assessing and collecting the new
Overflight Fees as scheduled on August
1, 2000, while public comments were
still being received by the FAA on its
second IFR. The litigation proceeded
concurrently, with oral arguments held
on May 14, 2001.
On July 13, 2001, the Court again
vacated the FAA’s IFR, this time
because the Court believed the FAA had
failed to explain a key assumption in its
costing methodology. (Air Transport
Association of Canada v. FAA; 00–1344,
July 13, 2001). Under the Court’s order,
there were 45 days before the IFR was
to be vacated. As noted above, the FAA
had solicited public comment on the
IFR at the time it was published. The
FAA had received many comments on
the several issues raised in the
litigation. At the time the Court’s
decision was issued, the FAA was
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nearing completion of a Final Rule that
would address these issues in the
disposition of public comments section
of its preamble.
The FAA therefore proceeded on two
fronts. It successfully petitioned the
Court not to vacate the IFR while it
proceeded concurrently with issuance
of the Final Rule (‘‘Fees for FAA
Services for Certain Flights,’’ 66 FR
43680) on August 20, 2001, with revised
fees effective immediately. In addition
to addressing the public comments
received on the IFR, the Final Rule
reduced fees by about 15 percent due to
adjustments in the original cost data. A
new challenge to the revised fees was
brought after the issuance of the Final
Rule by ATAC and the same group of air
carriers. The two cases, one challenging
the IFR (65 FR 36002) issued in 2000
and the other challenging the Final Rule
(66 FR 43680) issued in 2001, were
combined by the Court into a single
case.
While the litigation was still pending,
on November 19, 2001, Congress
enacted the Aviation and Transportation
Security Act (ATSA), which included a
provision that amended the Overflight
Fee authorization (1) To require that the
fees be ‘‘reasonably’’ (rather than
‘‘directly’’) related to costs, (2) to clarify
that the Administrator has sole
authority to determine the costs upon
which the fees are based, and (3) to state
explicitly that such cost determinations
by the Administrator are not subject to
judicial review. Meanwhile, the
litigation proceeded into 2003, with the
FAA continuing to collect the fees as
required by statute.
On April 8, 2003, the Court issued a
decision setting aside the Final Rule and
remanding it back to the FAA, finding
that the agency had not adequately
explained its handling of controller
labor costs in deriving the fees. Air
Transport Association of Canada v.
FAA, 323 F.3d 1093 (D.C. Cir. 2003).
The Court also found that the Overflight
Fees amendments in the ATSA statute
were inapplicable because of a generic
‘‘savings’’ provision in the ATSA
legislation that stated that nothing
enacted in ATSA was applicable to any
litigation ongoing prior to the date of
enactment of ATSA. Fee collections
were immediately suspended.
On December 12, 2003, Congress
enacted VISION 100—CENTURY OF
AVIATION REAUTHORIZATION ACT,
(Vision 100). Section 229 of that Act
explicitly ‘‘adopted, legalized, and
confirmed’’ both the IFR published in
2000 and the Final Rule published in
2001. In addition, the FAA was directed
to hold a consultation meeting with
users (those who pay the Overflight Fees
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to the FAA) and to submit a report to
Congress addressing the issues that had
been in dispute in the litigation before
resuming the billing and collection of
the Overflight Fees.
Because there were ambiguous and
potentially conflicting provisions in
Vision 100 concerning Overflight Fees,
the Administrator issued an Order on
July 21, 2004, that set forth her
interpretation of the language of the
statute and, based on that interpretation,
made determinations as to the ultimate
disposition of Overflight Fees collected
by the FAA under both the 2000 IFR
and the 2001 Final Rule. The FAA
retained a portion of the funds collected
under the Final Rule, while either
refunding or providing credits to the
airlines for all of the fees collected
under the IFR and a portion of the fees
collected under the Final Rule. A copy
of that Order, ‘‘Order Directing the
Disposition of Certain Fees Collected by
the Federal Aviation Administration
Pursuant to 49 U.S.C. Section 45301,’’
has been placed in the docket.
The FAA met with users in September
2004 and submitted a report to Congress
at the same time, as mandated by the
Vision 100 statute. This cleared the way
for the FAA to resume the billing and
collection of Overflight Fees. In most
cases, amounts previously collected by
the FAA under the IFR and under the
Final Rule up until the date of the
ATSA enactment were provided as
credits to frequent payers. These
amounts were, in most cases, roughly
offset by amounts owed by the carriers
and other users for the one-year period
from March 2003 through February
2004. The carriers had not been billed
for this period while the litigation was
ongoing, but were ultimately
determined by the Administrator to be
liable for those fees.
Since that time, the FAA has followed
the normal process of issuing monthly
bills for the services provided to
Overflights. The fees currently being
charged were derived from cost and
activity data for FY 1999. This NPRM
proposes to update the existing fees by
using cost and activity data for FY 2008
to derive the fees. The cost methodology
applied in this NPRM is applied in the
same manner as in 2001, except that
overhead has been included in the cost
base for the fees this time as a direct
result of the ATSA amendment that
changed the previous statutory
requirement that fees be ‘‘directly’’
related to costs to a less stringent
requirement that the fees be
‘‘reasonably’’ related to costs.
The FAA’s CAS has been evolving
and improving over time. The CAS has
always relied on the best available data,
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and as new systems and techniques
have evolved, the quality and accuracy
of the data has improved. There are
areas, such as the reporting of labor
costs, where costs were allocated or
assigned in the past based on estimates,
but today are determined by actual data.
This is not a difference in how the data
is gathered, but rather an improvement
in the quality and accuracy of the basic
data. A detailed explanation of how the
CAS data was assembled can be found
in the ‘‘Costing Methodology Report, FY
2008,’’ which has been placed in the
docket for this rulemaking.
Overflight Fees Aviation Rulemaking
Committees (ARC)
In 2004, the FAA established an
Overflight Fees ARC. That Committee
held two meetings in early 2005, but
never issued a report or made a
recommendation to the FAA before its
Charter expired. Subsequently, on
December 17, 2008, the FAA issued a
new Charter for an Overflight Fees ARC
to advise and make recommendations to
the FAA on the updating of its
Overflight Fees. The Overflight Fees
ARC met several times in 2009 and
issued its report and recommendations
to the FAA on August 26, 2009. A copy
of this report has been placed in the
docket. The report contains three
principal recommendations:
1. That the FAA pursue the updating
of its Overflight Fees through the
normal notice and comment type of
rulemaking, rather than through the
interim final rule process previously
mandated by Congress;
2. That, in updating the fees, the FAA
abide by the policies of the International
Civil Aviation Organization (ICAO),
whereby the principle of gradualism is
applied so that any substantial fee
increase (as in this case where a 9-year
update is involved) is spread over
several years; and
3. That, in this instance, the specific
increases be accomplished over 4
increments, on October 1st of each year
from 2011 through 2014, with annual
increases of 14% for Enroute and 8% for
Oceanic.
The FAA believes that the ARC
recommendations are a reasonable
approach to move forward on a
consensus basis to update its Overflight
Fees. This NPRM proposes to
implement the recommendations of the
ARC. It should be noted that the annual
increases recommended by the ARC
(14% for the Enroute fee and 8% for the
Oceanic fee) were derived from
information presented to the ARC by the
FAA. The FAA had shown the ARC
that, in order for the FAA to approach
the cost recovery called for by Federal
policy guidance on user fees, based on
actual cost and activity data for FY
2008, fee increases of approximately
69% and 36%, respectively, for Enroute
and Oceanic, would be necessary.
Spreading this increase over 4 years
produces the recommended levels of
14% per year, compounded, for Enroute
and 8% per year, compounded, for
Oceanic.
The actual dollar amounts of each fee
as of each of the four October 1st fee
revision dates would be as follows:
Enroute
(per 100
nautical
miles)
Time period
October
October
October
October
1,
1,
1,
1,
2011
2012
2013
2014
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II. Discussion of the Proposal
The proposed rule would update the
FAA’s existing Overflight Fees, which
are presently based on Fiscal Year (FY)
1999 cost and activity data. The fees
have not been updated since they were
initially established on August 20, 2001.
The current fees are derived
arithmetically from final FAA CAS data
for FY 1999 and from the Enhanced
Traffic Management System (ETMS)
data for the same year. The updated fees
would be derived using basically the
same methodology as in 2001, but
would be derived from final, audited
CAS data and ETMS data for FY 2008.
The only difference would be that the
updated fees would include overhead in
the cost base. Overhead originally was
excluded from the cost base for the
existing fees, but would be included in
the derivation of the updated fees as the
result of the previously discussed
change in the applicable statutory
authority (changing the requirement that
fees be ‘‘directly’’ related to costs to a
requirement that the fees be
‘‘reasonably’’ related to costs).
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Separate overflight fees have been
established, and are currently in effect,
for flights that transit U.S.-controlled
airspace in each of two operational
environments—Enroute and Oceanic—
without either taking off from or landing
in the United States. The updated
Enroute fee would be derived by taking
(from CAS) the total costs incurred in
the Enroute environment in FY 2008
and dividing that number by the
number of miles flown in U.S.controlled Enroute airspace in FY 2008.
This would produce a per-mile cost that
would be levied as a charge per 100
nautical miles flown, using Great Circle
Distance (GCD), from point of entry into,
to point of exit from, U.S.-controlled
airspace. The separate Oceanic fee is
determined in precisely the same
manner, by dividing total Oceanic costs
for FY 2008 by the total number of
Oceanic miles flown in FY 2008. The
actual step-by-step derivation of these
fees, using actual numbers for FY 2008,
is shown in the ‘‘Overflight Fee
Development Report’’ which is included
in the docket for this rulemaking.
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$38.44
43.82
49.95
56.86
Oceanic
(per 100
nautical
miles)
$17.22
18.60
20.09
21.63
Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3507(d)) requires that the
FAA consider the impact of paperwork
and other information collection
burdens imposed on the public. The
FAA has determined that there would
be no new requirement for information
collection associated with this proposed
rule. The FAA information used to track
and bill overflights (including the
information collection necessary to
implement this proposal) is accessed
from flight plans filed with the FAA.
The collection of Domestic and
International Flight Plans is approved
under OMB collection Control # 2120–
0026. The FAA seeks comment on
whether a revision to this information
collection would be necessary as a
result of this proposal.
International Compatibility
In keeping with U.S. obligations
under the Convention on International
Civil Aviation, it is FAA policy to
comply with International Civil
Aviation Organization (ICAO) Standards
and Recommended Practices to the
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maximum extent practicable. The FAA
has reviewed the corresponding ICAO
Standards and Recommended Practices
and has identified no differences with
these proposed regulations.
III. Regulatory Evaluation, Regulatory
Flexibility Determination, and
Unfunded Mandates Assessment
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Changes to Federal regulations must
undergo several economic analyses.
First, Executive Order 12866 directs that
each Federal agency shall propose or
adopt a regulation only upon a reasoned
determination that the benefits of the
intended regulation justify its costs.
Second, the Regulatory Flexibility Act
of 1980 (Pub. L. 96–354) requires
agencies to analyze the economic
impact of regulatory changes on small
entities. Third, the Unfunded Mandates
Reform Act of 1995 (Pub. L. 104–4)
requires agencies to prepare a written
assessment of the costs, benefits, and
other effects of proposed or final rules
that include a Federal mandate likely to
result in the expenditure by State, local,
or tribal governments, in the aggregate,
or by the private sector, of $100 million
The FAA has, therefore, determined
that this proposed rule is not an
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Costs
Taxes and government fees are a
transfer payment, and, by OMB
directive, transfers are not considered a
societal cost. Therefore, this rule
imposes no costs. We do provide an
estimate of the transfers. There would
be a 4-year phase-in of fees with yearly
increases (14% Enroute and 8%
Oceanic). Increases would begin in 2011
and end in 2014. We have determined
that approximately 80% of Overflight
Fees for domestic operators would be
Enroute and 20% would be Oceanic.
(See Table 1.)
Most of the transfers from this
proposed rule would be borne by
foreign operators. The estimated
transfers from foreign operators to the
FAA are about $73 million ($52 million,
present value). (See Table 2.)
Using the preceding information, the
FAA estimates that the total transfers
resulting from this proposed rule from
U.S. entities to the FAA over 5 years
would be about $1.1 million ($0.8
million, present value). Again,
government fees and taxes are
considered transfers and not societal
costs, so this proposed rule does not
increase society’s costs.
economically ‘‘significant regulatory
action’’, but is a ‘‘significant regulatory
action’’ for other reasons as defined in
section 3(f) of Executive Order 12866
or more annually (adjusted for inflation
with base year of 1995). This portion of
the preamble summarizes the FAA’s
analysis of the economic impacts of this
proposed rule.
Department of Transportation Order
DOT 2100.5 prescribes policies and
procedures for simplification, analysis,
and review of regulations. If the
expected cost impact is so minimal that
a proposed or final rule does not
warrant a full evaluation, this order
permits that a statement to that effect
and the basis for it to be included in the
preamble if a full regulatory evaluation
of the cost and benefits is not prepared.
Such a determination has been made for
this proposed rule. The reasoning for
this determination follows:
Benefit
The benefit of this proposed rule
would be that the overflight fees will be
more closely related to the actual costs
of providing FAA’s services for these
flights.
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and is ‘‘significant’’ as defined in DOT’s
Regulatory Policies and Procedures.
Regulatory Flexibility Determination
The Regulatory Flexibility Act of 1980
(RFA) establishes ‘‘as a principle of
regulatory issuance that agencies shall
endeavor, consistent with the objective
of the rule and of applicable statutes, to
fit regulatory and informational
requirements to the scale of the
business, organizations, and
governmental jurisdictions subject to
regulation.’’ To achieve that principle,
the RFA requires agencies to solicit and
consider flexible regulatory proposals
and to explain the rationale for their
actions. The RFA covers a wide-range of
small entities, including small
businesses, not-for-profit organizations
and small governmental jurisdictions.
Agencies must perform a review to
determine whether a proposed or final
rule will have a significant economic
impact on a substantial number of small
entities. If the agency determines that it
will, the agency must prepare a
regulatory flexibility analysis as
described in the Act.
The FAA ranked in descending order
all domestic entities based on their
Overflight Fees. Then we identified 5
small entities having publicly-available
financial information (using a size
standard of 1,500 or fewer employees)
in the top 20 percent of the ranking. We
retrieved their annual revenue from
World Aviation Directory and compared
it to their annualized compliance costs.
Of these 5 entities, all of them have
annualized compliance costs as a
percentage of annual revenues lower
than 0.1 percent. We believe this
economic impact is not significant.
Consequently, the FAA certifies that the
proposed rule would not have a
significant economic impact on a
substantial number of small entities.
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Unfunded Mandates Assessment
Title II of the Unfunded Mandates
Reform Act of 1995 (Pub. L. 104–4)
requires each Federal agency to prepare
a written statement assessing the effects
of any Federal mandate in a proposed or
final agency rule that may result in an
expenditure of $100 million or more (in
1995 dollars) in any one year by State,
local, and tribal governments, in the
aggregate, or by the private sector; such
a mandate is deemed to be a ‘‘significant
regulatory action.’’ The FAA currently
uses an inflation-adjusted value of
$143.1 million in lieu of $100 million.
This proposed rule does not contain
such a mandate; therefore, the
requirements of Title II of the Act do not
apply.
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Executive Order 13132, Federalism
Additional Information
The FAA has analyzed this proposed
rule under the principles and criteria of
Executive Order 13132, Federalism. We
determined that this action would not
have a substantial direct effect on the
States, on the relationship between the
national government and the States, or
on the distribution of power and
responsibilities among the various
levels of government, and, therefore,
would not have federalism implications.
59665
Comments Invited
Environmental Analysis
FAA Order 1050.1E identifies FAA
actions that are categorically excluded
from preparation of an environmental
assessment or environmental impact
statement under the National
Environmental Policy Act in the
absence of extraordinary circumstances.
The FAA has determined this proposed
rulemaking action qualifies for the
categorical exclusion identified in
paragraph 312d and involves no
extraordinary circumstances.
Regulations That Significantly Affect
Energy Supply, Distribution, or Use
The FAA has analyzed this NPRM
under Executive Order 13211, Actions
Concerning Regulations that
Significantly Affect Energy Supply,
Distribution, or Use (May 18, 2001). We
have determined that it is not a
‘‘significant regulatory action’’ under the
executive order because, while it is a
‘‘significant regulatory action’’ under
DOT’s Regulatory Policies and
Procedures, it is not likely to have a
significant adverse effect on the supply,
distribution, or use of energy.
Plain English
Executive Order 12866 (58 FR 51735,
Oct. 4, 1993) requires each agency to
write regulations that are simple and
easy to understand. We invite your
comments on how to make these
proposed regulations easier to
understand, including answers to
questions such as the following:
• Are the requirements in the
proposed regulations clearly stated?
• Do the proposed regulations contain
unnecessary technical language or
jargon that interferes with their clarity?
• Would the regulations be easier to
understand if they were divided into
more (but shorter) sections?
• Is the description in the preamble
helpful in understanding the proposed
regulations?
Please send your comments to the
address specified in the Addresses
section of this preamble.
PO 00000
Frm 00009
Fmt 4702
Sfmt 4702
The FAA invites interested persons to
participate in this rulemaking by
submitting written comments, data, or
views. We also invite comments relating
to the economic, environmental, energy,
or federalism impacts that might result
from adopting the proposals in this
document. The most helpful comments
reference a specific portion of the
proposal, explain the reason for any
recommended change, and include
supporting data. To ensure the docket
does not contain duplicate comments,
please send only one copy of written
comments, or if you are filing comments
electronically, please submit your
comments only one time.
We will file in the docket all
comments we receive, as well as a
report summarizing each substantive
public contact with FAA personnel
concerning this proposed rulemaking.
Before acting on this proposal, we will
consider all comments we receive on or
before the closing date for comments.
We will consider comments filed after
the comment period has closed if it is
possible to do so without incurring
expense or delay. We may change this
proposal in light of the comments we
receive.
Proprietary or Confidential Business
Information
Do not file in the docket information
that you consider to be proprietary or
confidential business information. Send
or deliver this information directly to
the person identified in the FOR FURTHER
INFORMATION CONTACT section of this
document. You must mark the
information that you consider
proprietary or confidential. If you send
the information on a disk or CD–ROM,
mark the outside of the disk or CD–ROM
and also identify electronically within
the disk or CD–ROM the specific
information that is proprietary or
confidential.
Under 14 CFR 11.35(b), when we are
aware of proprietary information filed
with a comment, we do not place it in
the docket. We hold it in a separate file
to which the public does not have
access, and we place a note in the
docket that we have received it. If we
receive a request to examine or copy
this information, we treat it as any other
request under the Freedom of
Information Act (5 U.S.C. 552). We
process such a request under the DOT
procedures found in 49 CFR part 7.
E:\FR\FM\28SEP1.SGM
28SEP1
59666
Federal Register / Vol. 75, No. 187 / Tuesday, September 28, 2010 / Proposed Rules
Availability of Rulemaking Documents
You can get an electronic copy of
rulemaking documents using the
Internet by—
1. Searching the Federal eRulemaking
Portal (https://www.regulations.gov);
2. Visiting the FAA’s Regulations and
Policies Web page at https://
www.faa.gov/regulations_policies; or
3. Accessing the Government Printing
Office’s Web page at https://
www.gpoaccess.gov/fr/.
You can also get a copy by sending a
request to the Federal Aviation
Administration, Office of Rulemaking,
ARM–1, 800 Independence Avenue,
SW., Washington, DC 20591, or by
calling (202) 267–9680. Make sure to
identify the docket number or notice
number of this rulemaking.
You may access all documents the
FAA considered in developing this
proposed rule, including economic
analyses and technical reports, from the
Internet through the Federal
eRulemaking Portal referenced in
paragraph (1).
List of Subjects in 14 CFR Part 187
Administrative practice and
procedure, Air transportation.
The Proposed Amendment
In consideration of the foregoing, the
Federal Aviation Administration
proposes to amend Chapter I of Title 14,
Code of Federal Regulations, as follows:
PART 187—FEES
1. The authority citation for part 187
continues to read as follows:
Authority: 31 U.S.C. 9701, 49 U.S.C.
106(g), 49 U.S.C. 106(l)((6), 40104–401–5,
40109, 40113–40114, 44702.
2. In part 187, Appendix B is
amended by revising paragraph (e)(2) to
read as follows:
Appendix B to Part 187—Fees for FAA
Services for Certain Flights
*
*
*
*
*
(e) * * *
(2) A User (operator of an Overflight) is
assessed a fee for each 100 nautical miles (or
portion thereof) flown in each segment and
type of U.S.-controlled airspace. Separate
calculations are made for transiting Enroute
and Oceanic airspace. The total fee charged
for an Overflight between any entry and exit
point is equal to the sum of these two
charges. This relationship is summarized as:
Rij = X*DEij + Y*DOij,
Where:
Rij = the fee charged to aircraft flying
between entry point i and exit point j,
DEij = total great circle distance traveled in
each segment of U.S.-controlled Enroute
airspace expressed in hundreds of
nautical miles for aircraft flying between
entry point i and exit point j for each
segment of Enroute airspace.
DOij = total great circle distance traveled in
each segment of U.S.-controlled Oceanic
airspace expressed in hundreds of
nautical miles for aircraft flying between
entry point i and exit point j for each
segment of Oceanic airspace.
X and Y = the values respectively set forth
in the following schedule:
Time period
X (Enroute)
Through September 30, 2011 .........................................................................................................................
October 1, 2011 through September 30, 2012 ...............................................................................................
October 1, 2012 through September 30, 2013 ...............................................................................................
October 1, 2013 through September 30, 2014 ...............................................................................................
October 1, 2014 and beyond ...........................................................................................................................
*
*
*
*
*
Issued in Washington, DC, on September
22, 2010.
Carl W. Burrus,
Director, Office of Financial Controls.
[FR Doc. 2010–24342 Filed 9–27–10; 8:45 am]
BILLING CODE 4910–13–P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 35
Agricultural Swaps
Commodity Futures Trading
Commission.
ACTION: Advanced notice of proposed
rulemaking and request for comment.
AGENCY:
The Commodity Futures
Trading Commission (‘‘Commission’’ or
‘‘CFTC’’) is charged with proposing rules
to implement new statutory provisions
enacted by Title VII of the Dodd-Frank
Wall Street Reform and Consumer
Protection Act (‘‘Dodd-Frank Act’’).
Section 723(c)(3) of the Dodd-Frank Act
provides that swaps in an ‘‘agricultural
commodity’’ (as defined by the
Commission) are prohibited unless
entered into pursuant to a rule,
WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS
SUMMARY:
VerDate Mar<15>2010
15:21 Sep 27, 2010
Jkt 220001
regulation or order of the Commission
adopted pursuant to section 4(c) of the
Commodity Exchange Act (‘‘CEA’’ or
‘‘Act’’). This advance notice of proposed
rulemaking (‘‘ANPRM’’) requests
comment on the appropriate conditions,
restrictions or protections to be
included in any such rule, regulation or
order governing the trading of
agricultural swaps.
DATES: Comments must be received on
or before October 28, 2010. The
Commission is not inclined to grant
extensions of this comment period.
ADDRESSES: You may submit comments,
identified with ‘‘Agricultural Swaps
ANPRM’’ in the subject line, by any of
the following methods:
• E-mail for comments:
agswapsANPR@cftc.gov.
• Mail: David A. Stawick, Secretary of
the Commission, Commodity Futures
Trading Commission, Three Lafayette
Centre, 1155 21st Street, NW.,
Washington, DC 20581.
• Hand Delivery/Courier: Same as
mail above.
All comments must be submitted in
English, or if not, accompanied by an
English translation. All comments
provided in any electronic form or on
paper will be published on the CFTC
PO 00000
Frm 00010
Fmt 4702
Sfmt 4702
$33.72
38.44
43.82
49.95
56.86
Y (Oceanic)
$15.94
17.22
18.60
20.09
21.63
Web site, without review and without
removal of personally identifying
information. All comments are subject
to the CFTC privacy policy.
FOR FURTHER INFORMATION CONTACT:
Donald Heitman, Senior Special
Counsel, (202) 418–5041,
dheitman@cftc.gov, or Ryne Miller,
Attorney Advisor, (202) 418–5921,
rmiller@cftc.gov, Division of Market
Oversight, Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street, NW., Washington, DC
20581.
SUPPLEMENTARY INFORMATION:
I. Background
On July 21, 2010, President Obama
signed the Dodd-Frank Wall Street
Reform and Consumer Protection Act.1
Title VII of the Dodd-Frank Act 2
amended the CEA3 to establish a
comprehensive new regulatory
framework for swaps and security-based
1 See Dodd-Frank Wall Street Reform and
Consumer Protection Act, Public Law 111–203, 124
Stat. 1376 (2010). The text of the Dodd-Frank Act
may be accessed at https://www.cftc.gov./
LawRegulation/OTCDERIVATIVES/index.htm.
2 Pursuant to § 701 of the Dodd-Frank Act, Title
VII may be cited as the ‘‘Wall Street Transparency
and Accountability Act of 2010.’’
3 7 U.S.C. 1 et seq.
E:\FR\FM\28SEP1.SGM
28SEP1
Agencies
[Federal Register Volume 75, Number 187 (Tuesday, September 28, 2010)]
[Proposed Rules]
[Pages 59661-59666]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-24342]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 187
[Docket No. FAA-2010-0326; Notice No. 10-12]
RIN 2120-AJ68
Update of Overflight Fees
AGENCY: Federal Aviation Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking (NPRM).
-----------------------------------------------------------------------
SUMMARY: This NPRM proposes to adjust existing Overflight Fees by using
current FAA cost accounting data and air traffic activity data. This
action is necessary because operational costs for providing air traffic
control and related services for Overflights have increased steadily
since the fees were established in 2001. The adjustment of Overflight
Fees would result in an increased level of cost recovery for the
services being provided.
DATES: Send your comments on or before December 27, 2010.
ADDRESSES: You may send comments identified by Docket Number FAA-2010-
0326 using any of the following methods:
Federal eRulemaking Portal: Go to https://www.regulations.gov and follow the online instructions for sending your
comments electronically.
Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation, 1200 New Jersey Avenue, SE., Room W12-
140, West Building Ground Floor, Washington, DC 20590-0001.
Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
Fax: Fax comments to Docket Operations at 202-493-2251.
For more information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
Privacy: We will post all comments we receive, without change, to
https://www.regulations.gov, including any personal information you
provide. Using the search function of our docket web site, anyone can
find and read the electronic form of all comments received into any of
our dockets, including the name of the individual sending the comment
(or signing the comment for an association, business, labor union,
etc.). You may review DOT's complete Privacy Act Statement in the
Federal Register published on April 11, 2000 (65 FR 19477-78) or you
may visit https://DocketsInfo.dot.gov.
Docket: To read background documents or comments received, go to
https://www.regulations.gov at any time and follow the online
instructions for accessing the docket, or, go to Docket Operations in
Room W12-140 of the West Building Ground Floor at 1200 New Jersey
Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: For technical questions concerning
this proposed rule contact David Lawhead, Office of Financial Controls,
Financial Analysis Division (AFC 300), Federal Aviation Administration,
800 Independence Avenue, SW., Washington, DC 20591; telephone (202)
267-9759 facsimile (202) 267-5271, e-mail to Dave.Lawhead@FAA.gov. For
legal questions concerning this proposed rule contact Michael Chase,
AGC-240, Office of Chief Counsel, Regulations Division, Federal
Aviation Administration, 800 Independence Avenue, SW., Washington, DC
20591; telephone: (202) 267-3110; e-mail to michael.chase@faa.gov.
SUPPLEMENTARY INFORMATION: Later in this preamble under the Additional
Information section, we discuss how you can comment on this proposal
and how we will handle your comments. Included in this discussion is
related information about the docket, privacy, and the handling of
proprietary or confidential business information. We also discuss how
you can get a copy of related rulemaking documents.
Authority for This Rulemaking
The FAA's authority to establish these fees is found in Title 49 of
the United States Code. This rulemaking is promulgated under the
authority described in Chapter 453, Section 45301 et seq. Under that
Chapter, the FAA is charged with prescribing regulations for the
collection of fees for air traffic control and related services
provided to aircraft, other than military and civilian aircraft of the
United States government or a foreign government, that transit U.S.-
controlled airspace, but neither take off from nor land in the United
States (``Overflights''). This proposed regulation is within the scope
of that authority.
I. Background
The FAA's Overflight Fees were initially authorized in the Federal
Aviation Reauthorization Act of 1996 (Pub. L. 104-264, enacted October
9, 1996). Overflight Fees are charges for aircraft flights that transit
U.S.-controlled airspace, but neither land in nor depart from the
United States. Following enactment of the initial fee authority, and as
mandated by that authority, the FAA issued an Interim Final Rule (IFR),
``Fees for Air Traffic Services for Certain Flights through U.S.
Controlled Airspace'' (62 FR 13496), on March 20, 1997. Under the terms
of the IFR, the FAA sought public comment on the IFR while concurrently
beginning to assess Overflight Fees 60 days after its publication, on
May 19, 1997.
On July 17, 1997, petitions for judicial review of the IFR were
filed in the U.S.
[[Page 59662]]
Court of Appeals for the District of Columbia (the Court) by the Air
Transport Association of Canada (ATAC) and seven foreign air carriers.
Those petitions were consolidated into a single case (Asiana Airlines
v. FAA, 134 F.3d 393 (D.C. Cir. 1998)). The litigation proceeded
throughout the remainder of 1997 while the FAA continued to collect
fees pursuant to the statute.
On January 30, 1998, the Court issued a decision, upholding the FAA
on three process and procedure issues, but vacating the Rule because
the Court found that the methodology the FAA used to allocate costs did
not conform to the statute. The FAA immediately suspended billing
operations, and eventually refunded nearly $40 million in fees that had
then been collected.
Although the 1997 IFR (62 FR 13496) had been set aside by the
Court, the statutory requirement that the FAA establish Overflight Fees
through an IFR remained in effect. One of the principal criticisms the
FAA had received from the public commenters on its 1997 IFR concerned
the quality of the cost information upon which the Overflight Fees were
based. The FAA had already begun developing a new Cost Accounting
System (CAS) in 1996. Early data from the new CAS was becoming
available in 1998. Thus, when the FAA decided, following the initial
litigation, to issue a new IFR, a key element of that decision was that
the fees would be derived from cost data from the new CAS.
A new IFR was published in the Federal Register on June 6, 2000 (65
FR 36002), with fees scheduled to go into effect on August 1, 2000.
This new IFR was challenged in court by the ATAC and a slightly
different group of seven foreign air carriers. The FAA began assessing
and collecting the new Overflight Fees as scheduled on August 1, 2000,
while public comments were still being received by the FAA on its
second IFR. The litigation proceeded concurrently, with oral arguments
held on May 14, 2001.
On July 13, 2001, the Court again vacated the FAA's IFR, this time
because the Court believed the FAA had failed to explain a key
assumption in its costing methodology. (Air Transport Association of
Canada v. FAA; 00-1344, July 13, 2001). Under the Court's order, there
were 45 days before the IFR was to be vacated. As noted above, the FAA
had solicited public comment on the IFR at the time it was published.
The FAA had received many comments on the several issues raised in the
litigation. At the time the Court's decision was issued, the FAA was
nearing completion of a Final Rule that would address these issues in
the disposition of public comments section of its preamble.
The FAA therefore proceeded on two fronts. It successfully
petitioned the Court not to vacate the IFR while it proceeded
concurrently with issuance of the Final Rule (``Fees for FAA Services
for Certain Flights,'' 66 FR 43680) on August 20, 2001, with revised
fees effective immediately. In addition to addressing the public
comments received on the IFR, the Final Rule reduced fees by about 15
percent due to adjustments in the original cost data. A new challenge
to the revised fees was brought after the issuance of the Final Rule by
ATAC and the same group of air carriers. The two cases, one challenging
the IFR (65 FR 36002) issued in 2000 and the other challenging the
Final Rule (66 FR 43680) issued in 2001, were combined by the Court
into a single case.
While the litigation was still pending, on November 19, 2001,
Congress enacted the Aviation and Transportation Security Act (ATSA),
which included a provision that amended the Overflight Fee
authorization (1) To require that the fees be ``reasonably'' (rather
than ``directly'') related to costs, (2) to clarify that the
Administrator has sole authority to determine the costs upon which the
fees are based, and (3) to state explicitly that such cost
determinations by the Administrator are not subject to judicial review.
Meanwhile, the litigation proceeded into 2003, with the FAA continuing
to collect the fees as required by statute.
On April 8, 2003, the Court issued a decision setting aside the
Final Rule and remanding it back to the FAA, finding that the agency
had not adequately explained its handling of controller labor costs in
deriving the fees. Air Transport Association of Canada v. FAA, 323 F.3d
1093 (D.C. Cir. 2003). The Court also found that the Overflight Fees
amendments in the ATSA statute were inapplicable because of a generic
``savings'' provision in the ATSA legislation that stated that nothing
enacted in ATSA was applicable to any litigation ongoing prior to the
date of enactment of ATSA. Fee collections were immediately suspended.
On December 12, 2003, Congress enacted VISION 100--CENTURY OF
AVIATION REAUTHORIZATION ACT, (Vision 100). Section 229 of that Act
explicitly ``adopted, legalized, and confirmed'' both the IFR published
in 2000 and the Final Rule published in 2001. In addition, the FAA was
directed to hold a consultation meeting with users (those who pay the
Overflight Fees to the FAA) and to submit a report to Congress
addressing the issues that had been in dispute in the litigation before
resuming the billing and collection of the Overflight Fees.
Because there were ambiguous and potentially conflicting provisions
in Vision 100 concerning Overflight Fees, the Administrator issued an
Order on July 21, 2004, that set forth her interpretation of the
language of the statute and, based on that interpretation, made
determinations as to the ultimate disposition of Overflight Fees
collected by the FAA under both the 2000 IFR and the 2001 Final Rule.
The FAA retained a portion of the funds collected under the Final Rule,
while either refunding or providing credits to the airlines for all of
the fees collected under the IFR and a portion of the fees collected
under the Final Rule. A copy of that Order, ``Order Directing the
Disposition of Certain Fees Collected by the Federal Aviation
Administration Pursuant to 49 U.S.C. Section 45301,'' has been placed
in the docket.
The FAA met with users in September 2004 and submitted a report to
Congress at the same time, as mandated by the Vision 100 statute. This
cleared the way for the FAA to resume the billing and collection of
Overflight Fees. In most cases, amounts previously collected by the FAA
under the IFR and under the Final Rule up until the date of the ATSA
enactment were provided as credits to frequent payers. These amounts
were, in most cases, roughly offset by amounts owed by the carriers and
other users for the one-year period from March 2003 through February
2004. The carriers had not been billed for this period while the
litigation was ongoing, but were ultimately determined by the
Administrator to be liable for those fees.
Since that time, the FAA has followed the normal process of issuing
monthly bills for the services provided to Overflights. The fees
currently being charged were derived from cost and activity data for FY
1999. This NPRM proposes to update the existing fees by using cost and
activity data for FY 2008 to derive the fees. The cost methodology
applied in this NPRM is applied in the same manner as in 2001, except
that overhead has been included in the cost base for the fees this time
as a direct result of the ATSA amendment that changed the previous
statutory requirement that fees be ``directly'' related to costs to a
less stringent requirement that the fees be ``reasonably'' related to
costs.
The FAA's CAS has been evolving and improving over time. The CAS
has always relied on the best available data,
[[Page 59663]]
and as new systems and techniques have evolved, the quality and
accuracy of the data has improved. There are areas, such as the
reporting of labor costs, where costs were allocated or assigned in the
past based on estimates, but today are determined by actual data. This
is not a difference in how the data is gathered, but rather an
improvement in the quality and accuracy of the basic data. A detailed
explanation of how the CAS data was assembled can be found in the
``Costing Methodology Report, FY 2008,'' which has been placed in the
docket for this rulemaking.
Overflight Fees Aviation Rulemaking Committees (ARC)
In 2004, the FAA established an Overflight Fees ARC. That Committee
held two meetings in early 2005, but never issued a report or made a
recommendation to the FAA before its Charter expired. Subsequently, on
December 17, 2008, the FAA issued a new Charter for an Overflight Fees
ARC to advise and make recommendations to the FAA on the updating of
its Overflight Fees. The Overflight Fees ARC met several times in 2009
and issued its report and recommendations to the FAA on August 26,
2009. A copy of this report has been placed in the docket. The report
contains three principal recommendations:
1. That the FAA pursue the updating of its Overflight Fees through
the normal notice and comment type of rulemaking, rather than through
the interim final rule process previously mandated by Congress;
2. That, in updating the fees, the FAA abide by the policies of the
International Civil Aviation Organization (ICAO), whereby the principle
of gradualism is applied so that any substantial fee increase (as in
this case where a 9-year update is involved) is spread over several
years; and
3. That, in this instance, the specific increases be accomplished
over 4 increments, on October 1st of each year from 2011 through 2014,
with annual increases of 14% for Enroute and 8% for Oceanic.
The FAA believes that the ARC recommendations are a reasonable
approach to move forward on a consensus basis to update its Overflight
Fees. This NPRM proposes to implement the recommendations of the ARC.
It should be noted that the annual increases recommended by the ARC
(14% for the Enroute fee and 8% for the Oceanic fee) were derived from
information presented to the ARC by the FAA. The FAA had shown the ARC
that, in order for the FAA to approach the cost recovery called for by
Federal policy guidance on user fees, based on actual cost and activity
data for FY 2008, fee increases of approximately 69% and 36%,
respectively, for Enroute and Oceanic, would be necessary. Spreading
this increase over 4 years produces the recommended levels of 14% per
year, compounded, for Enroute and 8% per year, compounded, for Oceanic.
The actual dollar amounts of each fee as of each of the four
October 1st fee revision dates would be as follows:
------------------------------------------------------------------------
Enroute Oceanic
(per 100 (per 100
Time period nautical nautical
miles) miles)
------------------------------------------------------------------------
October 1, 2011............................... $38.44 $17.22
October 1, 2012............................... 43.82 18.60
October 1, 2013............................... 49.95 20.09
October 1, 2014............................... 56.86 21.63
------------------------------------------------------------------------
II. Discussion of the Proposal
The proposed rule would update the FAA's existing Overflight Fees,
which are presently based on Fiscal Year (FY) 1999 cost and activity
data. The fees have not been updated since they were initially
established on August 20, 2001.
The current fees are derived arithmetically from final FAA CAS data
for FY 1999 and from the Enhanced Traffic Management System (ETMS) data
for the same year. The updated fees would be derived using basically
the same methodology as in 2001, but would be derived from final,
audited CAS data and ETMS data for FY 2008. The only difference would
be that the updated fees would include overhead in the cost base.
Overhead originally was excluded from the cost base for the existing
fees, but would be included in the derivation of the updated fees as
the result of the previously discussed change in the applicable
statutory authority (changing the requirement that fees be ``directly''
related to costs to a requirement that the fees be ``reasonably''
related to costs).
Separate overflight fees have been established, and are currently
in effect, for flights that transit U.S.-controlled airspace in each of
two operational environments--Enroute and Oceanic--without either
taking off from or landing in the United States. The updated Enroute
fee would be derived by taking (from CAS) the total costs incurred in
the Enroute environment in FY 2008 and dividing that number by the
number of miles flown in U.S.-controlled Enroute airspace in FY 2008.
This would produce a per-mile cost that would be levied as a charge per
100 nautical miles flown, using Great Circle Distance (GCD), from point
of entry into, to point of exit from, U.S.-controlled airspace. The
separate Oceanic fee is determined in precisely the same manner, by
dividing total Oceanic costs for FY 2008 by the total number of Oceanic
miles flown in FY 2008. The actual step-by-step derivation of these
fees, using actual numbers for FY 2008, is shown in the ``Overflight
Fee Development Report'' which is included in the docket for this
rulemaking.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires
that the FAA consider the impact of paperwork and other information
collection burdens imposed on the public. The FAA has determined that
there would be no new requirement for information collection associated
with this proposed rule. The FAA information used to track and bill
overflights (including the information collection necessary to
implement this proposal) is accessed from flight plans filed with the
FAA. The collection of Domestic and International Flight Plans is
approved under OMB collection Control 2120-0026. The FAA
seeks comment on whether a revision to this information collection
would be necessary as a result of this proposal.
International Compatibility
In keeping with U.S. obligations under the Convention on
International Civil Aviation, it is FAA policy to comply with
International Civil Aviation Organization (ICAO) Standards and
Recommended Practices to the
[[Page 59664]]
maximum extent practicable. The FAA has reviewed the corresponding ICAO
Standards and Recommended Practices and has identified no differences
with these proposed regulations.
III. Regulatory Evaluation, Regulatory Flexibility Determination, and
Unfunded Mandates Assessment
Changes to Federal regulations must undergo several economic
analyses. First, Executive Order 12866 directs that each Federal agency
shall propose or adopt a regulation only upon a reasoned determination
that the benefits of the intended regulation justify its costs. Second,
the Regulatory Flexibility Act of 1980 (Pub. L. 96-354) requires
agencies to analyze the economic impact of regulatory changes on small
entities. Third, the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires agencies to prepare a written assessment of the costs,
benefits, and other effects of proposed or final rules that include a
Federal mandate likely to result in the expenditure by State, local, or
tribal governments, in the aggregate, or by the private sector, of $100
million or more annually (adjusted for inflation with base year of
1995). This portion of the preamble summarizes the FAA's analysis of
the economic impacts of this proposed rule.
Department of Transportation Order DOT 2100.5 prescribes policies
and procedures for simplification, analysis, and review of regulations.
If the expected cost impact is so minimal that a proposed or final rule
does not warrant a full evaluation, this order permits that a statement
to that effect and the basis for it to be included in the preamble if a
full regulatory evaluation of the cost and benefits is not prepared.
Such a determination has been made for this proposed rule. The
reasoning for this determination follows:
Benefit
The benefit of this proposed rule would be that the overflight fees
will be more closely related to the actual costs of providing FAA's
services for these flights.
Costs
Taxes and government fees are a transfer payment, and, by OMB
directive, transfers are not considered a societal cost. Therefore,
this rule imposes no costs. We do provide an estimate of the transfers.
There would be a 4-year phase-in of fees with yearly increases (14%
Enroute and 8% Oceanic). Increases would begin in 2011 and end in 2014.
We have determined that approximately 80% of Overflight Fees for
domestic operators would be Enroute and 20% would be Oceanic. (See
Table 1.)
Most of the transfers from this proposed rule would be borne by
foreign operators. The estimated transfers from foreign operators to
the FAA are about $73 million ($52 million, present value). (See Table
2.)
Using the preceding information, the FAA estimates that the total
transfers resulting from this proposed rule from U.S. entities to the
FAA over 5 years would be about $1.1 million ($0.8 million, present
value). Again, government fees and taxes are considered transfers and
not societal costs, so this proposed rule does not increase society's
costs.
[GRAPHIC] [TIFF OMITTED] TP28SE10.001
The FAA has, therefore, determined that this proposed rule is not
an economically ``significant regulatory action'', but is a
``significant regulatory action'' for other reasons as defined in
section 3(f) of Executive Order 12866
[[Page 59665]]
and is ``significant'' as defined in DOT's Regulatory Policies and
Procedures.
Regulatory Flexibility Determination
The Regulatory Flexibility Act of 1980 (RFA) establishes ``as a
principle of regulatory issuance that agencies shall endeavor,
consistent with the objective of the rule and of applicable statutes,
to fit regulatory and informational requirements to the scale of the
business, organizations, and governmental jurisdictions subject to
regulation.'' To achieve that principle, the RFA requires agencies to
solicit and consider flexible regulatory proposals and to explain the
rationale for their actions. The RFA covers a wide-range of small
entities, including small businesses, not-for-profit organizations and
small governmental jurisdictions.
Agencies must perform a review to determine whether a proposed or
final rule will have a significant economic impact on a substantial
number of small entities. If the agency determines that it will, the
agency must prepare a regulatory flexibility analysis as described in
the Act.
The FAA ranked in descending order all domestic entities based on
their Overflight Fees. Then we identified 5 small entities having
publicly-available financial information (using a size standard of
1,500 or fewer employees) in the top 20 percent of the ranking. We
retrieved their annual revenue from World Aviation Directory and
compared it to their annualized compliance costs. Of these 5 entities,
all of them have annualized compliance costs as a percentage of annual
revenues lower than 0.1 percent. We believe this economic impact is not
significant. Consequently, the FAA certifies that the proposed rule
would not have a significant economic impact on a substantial number of
small entities.
Unfunded Mandates Assessment
Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written statement
assessing the effects of any Federal mandate in a proposed or final
agency rule that may result in an expenditure of $100 million or more
(in 1995 dollars) in any one year by State, local, and tribal
governments, in the aggregate, or by the private sector; such a mandate
is deemed to be a ``significant regulatory action.'' The FAA currently
uses an inflation-adjusted value of $143.1 million in lieu of $100
million. This proposed rule does not contain such a mandate; therefore,
the requirements of Title II of the Act do not apply.
Executive Order 13132, Federalism
The FAA has analyzed this proposed rule under the principles and
criteria of Executive Order 13132, Federalism. We determined that this
action would not have a substantial direct effect on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government, and, therefore, would not have federalism implications.
Environmental Analysis
FAA Order 1050.1E identifies FAA actions that are categorically
excluded from preparation of an environmental assessment or
environmental impact statement under the National Environmental Policy
Act in the absence of extraordinary circumstances. The FAA has
determined this proposed rulemaking action qualifies for the
categorical exclusion identified in paragraph 312d and involves no
extraordinary circumstances.
Regulations That Significantly Affect Energy Supply, Distribution, or
Use
The FAA has analyzed this NPRM under Executive Order 13211, Actions
Concerning Regulations that Significantly Affect Energy Supply,
Distribution, or Use (May 18, 2001). We have determined that it is not
a ``significant regulatory action'' under the executive order because,
while it is a ``significant regulatory action'' under DOT's Regulatory
Policies and Procedures, it is not likely to have a significant adverse
effect on the supply, distribution, or use of energy.
Plain English
Executive Order 12866 (58 FR 51735, Oct. 4, 1993) requires each
agency to write regulations that are simple and easy to understand. We
invite your comments on how to make these proposed regulations easier
to understand, including answers to questions such as the following:
Are the requirements in the proposed regulations clearly
stated?
Do the proposed regulations contain unnecessary technical
language or jargon that interferes with their clarity?
Would the regulations be easier to understand if they were
divided into more (but shorter) sections?
Is the description in the preamble helpful in
understanding the proposed regulations?
Please send your comments to the address specified in the Addresses
section of this preamble.
Additional Information
Comments Invited
The FAA invites interested persons to participate in this
rulemaking by submitting written comments, data, or views. We also
invite comments relating to the economic, environmental, energy, or
federalism impacts that might result from adopting the proposals in
this document. The most helpful comments reference a specific portion
of the proposal, explain the reason for any recommended change, and
include supporting data. To ensure the docket does not contain
duplicate comments, please send only one copy of written comments, or
if you are filing comments electronically, please submit your comments
only one time.
We will file in the docket all comments we receive, as well as a
report summarizing each substantive public contact with FAA personnel
concerning this proposed rulemaking. Before acting on this proposal, we
will consider all comments we receive on or before the closing date for
comments. We will consider comments filed after the comment period has
closed if it is possible to do so without incurring expense or delay.
We may change this proposal in light of the comments we receive.
Proprietary or Confidential Business Information
Do not file in the docket information that you consider to be
proprietary or confidential business information. Send or deliver this
information directly to the person identified in the FOR FURTHER
INFORMATION CONTACT section of this document. You must mark the
information that you consider proprietary or confidential. If you send
the information on a disk or CD-ROM, mark the outside of the disk or
CD-ROM and also identify electronically within the disk or CD-ROM the
specific information that is proprietary or confidential.
Under 14 CFR 11.35(b), when we are aware of proprietary information
filed with a comment, we do not place it in the docket. We hold it in a
separate file to which the public does not have access, and we place a
note in the docket that we have received it. If we receive a request to
examine or copy this information, we treat it as any other request
under the Freedom of Information Act (5 U.S.C. 552). We process such a
request under the DOT procedures found in 49 CFR part 7.
[[Page 59666]]
Availability of Rulemaking Documents
You can get an electronic copy of rulemaking documents using the
Internet by--
1. Searching the Federal eRulemaking Portal (https://www.regulations.gov);
2. Visiting the FAA's Regulations and Policies Web page at https://www.faa.gov/regulations_policies; or
3. Accessing the Government Printing Office's Web page at https://www.gpoaccess.gov/fr/.
You can also get a copy by sending a request to the Federal
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence
Avenue, SW., Washington, DC 20591, or by calling (202) 267-9680. Make
sure to identify the docket number or notice number of this rulemaking.
You may access all documents the FAA considered in developing this
proposed rule, including economic analyses and technical reports, from
the Internet through the Federal eRulemaking Portal referenced in
paragraph (1).
List of Subjects in 14 CFR Part 187
Administrative practice and procedure, Air transportation.
The Proposed Amendment
In consideration of the foregoing, the Federal Aviation
Administration proposes to amend Chapter I of Title 14, Code of Federal
Regulations, as follows:
PART 187--FEES
1. The authority citation for part 187 continues to read as
follows:
Authority: 31 U.S.C. 9701, 49 U.S.C. 106(g), 49 U.S.C.
106(l)((6), 40104-401-5, 40109, 40113-40114, 44702.
2. In part 187, Appendix B is amended by revising paragraph (e)(2)
to read as follows:
Appendix B to Part 187--Fees for FAA Services for Certain Flights
* * * * *
(e) * * *
(2) A User (operator of an Overflight) is assessed a fee for
each 100 nautical miles (or portion thereof) flown in each segment
and type of U.S.-controlled airspace. Separate calculations are made
for transiting Enroute and Oceanic airspace. The total fee charged
for an Overflight between any entry and exit point is equal to the
sum of these two charges. This relationship is summarized as:
Rij = X*DEij + Y*DOij,
Where:
Rij = the fee charged to aircraft flying between entry point i and
exit point j,
DEij = total great circle distance traveled in each
segment of U.S.-controlled Enroute airspace expressed in hundreds of
nautical miles for aircraft flying between entry point i and exit
point j for each segment of Enroute airspace.
DOij = total great circle distance traveled in each
segment of U.S.-controlled Oceanic airspace expressed in hundreds of
nautical miles for aircraft flying between entry point i and exit
point j for each segment of Oceanic airspace.
X and Y = the values respectively set forth in the following
schedule:
------------------------------------------------------------------------
Time period X (Enroute) Y (Oceanic)
------------------------------------------------------------------------
Through September 30, 2011.......... $33.72 $15.94
October 1, 2011 through September 38.44 17.22
30, 2012...........................
October 1, 2012 through September 43.82 18.60
30, 2013...........................
October 1, 2013 through September 49.95 20.09
30, 2014...........................
October 1, 2014 and beyond.......... 56.86 21.63
------------------------------------------------------------------------
* * * * *
Issued in Washington, DC, on September 22, 2010.
Carl W. Burrus,
Director, Office of Financial Controls.
[FR Doc. 2010-24342 Filed 9-27-10; 8:45 am]
BILLING CODE 4910-13-P