2120-0557_Supporting Statement_FINAL

Supporting Statement A

Passenger Facility Charge (PFC) Application

1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection.

In accordance with 49 U.S.C. 40117, public agencies controlling commercial service airports are authorized to impose passenger facility charges (PFCs) and use PFC revenue to finance eligible airport‑related projects. The final rule implementing this statute, 14 CFR Part 158, became effective on June 28, 1991 (56 FR 24254; May 29, 1991), and it outlines the requirements of the PFC program. Specifically, Part 158 requires public agencies and air carriers to prepare and submit applications, reports, and other PFC-related documents to DOT/FAA.

The information collected in accordance with Part 158 enables the FAA to authorize the collection of PFC revenue for projects that preserve or enhance safety, security, or capacity of the national air transportation system; or reduce noise or mitigate noise impacts resulting from an airport; or furnish opportunities for enhanced competition between or among air carriers.

While the collection of information pertaining to the FAA’s PFC program is not new, a recent legislative change necessitates adjustments to the information collection. Section 121 of the FAA Reauthorization Act of 2018 (Pub. L. 115-254, October 5, 2018), as codified at 49 U.S.C. § 40117(l), authorizes the FAA to implement a pilot program, similar to the non-hub pilot program outlined in section 158.30, to streamline processing of PFC authorizations for small-, medium-, and large-hub airports. The pilot program permits public agencies to submit a Notice of Intent to impose a PFC and/or use PFC revenue. The pilot program also directs the FAA to either acknowledge or object to a public agency’s notice within 30 days of receipt in contrast to the 120 days the FAA has to approve or disapprove a PFC application.

The FAA has not yet enacted a rule that reflects the recent statutory change to the PFC program, but the agency recognizes the immediate need for expeditious processing of PFC applications. Therefore, the FAA implemented internal guidance to streamline the review of PFC applications for small-, medium-, and large-hub airports meeting certain criteria. For a period of one year, the FAA will evaluate efficiency and effectiveness of the streamlined procedures. After the 1‑year period, the FAA will assess its implementation of the interim guidance and use that program evaluation to better inform future rulemaking.

The FAA’s interim, internal guidance does not change the current application procedures that public agencies must follow. PFC applications must still meet the requirements of 49 U.S.C. 40117 and Part 158. However, the FAA will use streamlined procedures to process PFC applications that meet certain criteria, which will shorten the FAA’s internal review process.

The FAA expects these new streamlined procedures to reduce the burden hours associated with this information collection because more PFC applications will be processed within 30 days instead of the lengthier 120-day process for non-streamlined applications.

2. Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection.

This is a current collection that is required to obtain and retain a benefit. The information is collected from and reported by public agencies and air carriers. The information collected from public agencies allows the FAA to authorize them to impose PFCs and use PFC revenue for projects that preserve or enhance safety, security, or capacity of the national air transportation system; or reduce noise or mitigate noise impacts resulting from an airport; or furnish opportunities for enhanced competition between or among air carriers in accordance with 49 U.S.C. 40117. Air carriers that collect and remit PFCs are also subject to this information collection.

The DOT/FAA uses the information submitted under this collection to carry out the intent of 49 U.S.C. 40117 and implement the PFC program outlined in Part 158. Without this information, the Secretary/Administrator cannot carry out the specific legislative directives contained in the statute.

Part 158 requires 14 different information collections. Detailed information about respondents, types of information, collection frequency, etc., for each of the 14 collections are outlined below in Section 12.

The FAA does not expect to publicly disseminate information specific to any particular public agency or air carrier. However, copies of Final Agency Decisions may be made available to interested parties upon request. Also, the FAA posts key program statistics on the agency’s Internet website.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology.

The PFC application FAA Form 5500-1 is available on the FAA’s website and may be submitted to the FAA electronically by e-mail. The form is located at https://www.faa.gov/airports/pfc/.

The FAA has also deployed a web-based database that allows public agencies to submit their quarterly report collection and disbursement information to the FAA. This web-interface, located at https://aep.airports.faa.gov/Home.aspx, eliminates the requirement for a public agency to submit a paper copy to the FAA and the FAA no longer is required to manually enter this information into database. This technology enables the FAA to track the public agency’s PFC program while ensuring compliance with requirements and aiding in the FAA’s oversight of the PFC program. Additionally, the FAA’s web-based database allows air carriers to enter or upload the information they must report quarterly to public agencies in accordance with section 158.65.

Further, since public agencies are required to submit quarterly reports to air carriers and air carriers are required to submit quarterly reports to public agencies, the FAA’s database facilitates this mutual exchange of information.

4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purposes described in Item 2 above.

No other similar program currently exists.

5. If the collection of information involves small businesses or other small entities, describe the methods used to minimize burden.

This collection may involve some small businesses. These businesses are typically small air carriers, referred to as air taxi operators, which operate at airports controlled by public agencies. The burden to air taxi operators is minimized because under section 158.11, public agencies may request that certain classes of air carriers, such as air taxi operators, be excluded from the requirement to collect and remit PFC revenue. Additionally, section 158.69, Recordkeeping and Auditing, relieves air carriers collecting less than 50,000 PFCs annually from providing an audit of their PFC account.

6. Describe the consequence to Federal program or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.

If this information collection could not be conducted, DOT/FAA implementation and oversight of the PFC Program would be impaired. The FAA is required by 49 U.S.C. 40117 to make specific determinations about the eligibility and justification of airport projects to be funded with PFCs. Without the information collected, the FAA would not be able to make the determinations required by the statute, thus public agencies would not be able to fund airport project with PFCs.

Moreover, public agencies imposing PFCs and using PFC revenue to fund airport projects would not be able to comply with statutorily mandated reporting and recordkeeping requirements.

7. Explain any special circumstances that would cause an information collection to be conducted in a manner:

• requiring respondents to report information to the agency more often than quarterly;

• requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;

• requiring respondents to submit more than an original and two copies of any document; requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records, for more than three years;

• in connection with a statistical survey, that is not designed to produce valid and reliable results that can be generalized to the universe of study;

• requiring the use of a statistical data classification that has not been reviewed and approved by OMB;

• that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or

• requiring respondents to submit proprietary trade secrets, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information's confidentiality to the extent permitted by law.

None. This information is collected in a manner consistent with the guidelines in 5 CFR 1320.5(d)(2)(i)-(viii).

8. Provide information on the PRA Federal Register Notice that solicited public comments on the information collection prior to this submission. Summarize the public comments received in response to that notice and describe the actions taken by the agency in response to those comments. Describe the efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed, or reported.

A Federal Register Notice published on May 8, 2020 (85 FR 27506) solicited public comment. No comments were received.

9. Explain any decisions to provide payments or gifts to respondents, other than remuneration of contractors or grantees.

There are no payments or gifts to respondents.

10. Describe any assurance of confidentiality provided to respondents and the basis for assurance in statute, regulation, or agency policy.

No assurance of confidentiality is given.

11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private.

No personal information is collected.

12. Provide estimates of the hour burden of the collection of information.

The information collection requirements under Part 158 affect two public groups of respondents – approximately 402 public agencies¹ and approximately 248² air carriers.³

The total estimated annual burden hours for the collection of information is 35,466 hours.

Specific requirements are as follows:

[IC 1] Passenger Facility Charge (PFC) Application

Section 158.25 specifies the information that public agencies must submit to obtain authority to impose a PFC and to use PFC revenue on a project. Section 158.25(a) requires public agencies to submit an application (FAA Form 5500‑1) for approval, as well as information prescribed in paragraphs (b) and/or (c) of section 158.25. Section 158.25(b) prescribes the information required for approval to impose a PFC. Section 158.25(c) prescribes the information required for approval to use PFC revenue.

Due to a recent statutory change that allows for streamlined processing of PFC applications for small-, medium-, and large-hub airports, the FAA estimates an average of 12 applications per year, which is a reduction from the previously approved collection.^4,5

The amount of time it takes to prepare a PFC application varies widely depending on an array of factors. For example, applications vary depending on the number of projects included in the application, the complexity of the projects, and whether the application requests to impose a PFC, use PFC revenue, or both. Also, the amount of time to prepare an application depends on the size of the airport with applications for large airports requiring more time than applications for small airports. The FAA estimates an average of 69 hours per application.⁶

The FAA estimates approximately 12 applications per year at 69 hours per application = 828 hours.

[IC 2] Passenger Facility Charge (PFC) Authorizations

Section 158.30(a) permits public agencies controlling non-hub airports to use streamlined procedures under a pilot program to request authority to impose a PFC and to use PFC revenue on a project.⁷ Section 158.30(b) permits the public agency to submit a Notice of Intent to impose a PFC and prescribes the information required, including an application (FAA Form 5500‑1). Section 158.30(c) prescribes the information required for a notice to use PFC revenue. If a public agency intends to impose a PFC and use PFC revenue, the public agency must submit the information prescribed both paragraphs (b) and (c).

Section 158.30(c) requires, among other items, completed written actions such as an Airport Layout Plan, airspace determination, and environmental assessment. This information is already required of public agencies under the Airport Improvement Program (AIP) which is covered under OMB Clearance No. 2105-0520. Uniform Administrative Requirements for Grants and Operative Agreements, and the burden is included in that clearance.

The FAA anticipates a slight increase in the number of PFC applications processed using streamlined procedures due to the statutory change referenced in IC 1. The FAA estimates 67 submissions per year.⁸

The amount of time it takes to prepare a notice of intent/streamlined application varies widely depending on the complexity of the projects and whether the public agency requests to impose a PFC, use PFC revenue, or both. The FAA estimates an average of 34 hours per notice of intent/streamlined application.⁹

The FAA estimates approximately 67 notices of intent/streamlined applications per year at 34 hours each = 2,278 hours.

[IC 3] Passenger Facility Charge (PFC) Application - Extension

Section 158.35 permits a public agency that has been approved to impose a PFC to request an extension of time to submit an application to use PFC revenue and requires public agencies to submit written requests for an extension. That section prescribes the information that must accompany an extension request.

The FAA estimates approximately 1 request per year at 10 hours per request = 10 hours.¹⁰

[IC 4] Passenger Facility Charge (PFC) Application - Amendment

Section 158.37 permits a public agency to amend the FAA’s decision with respect to an approved PFC and requires public agencies to submit written requests for an amendment. That section prescribes the information that must accompany an amendment request.

The FAA estimates approximately 130 requests per year at 16 hours = 2,080 hours.¹¹

[IC 5] Public Agency Notification to Air Carriers

Section 158.43 requires public agencies to provide air carriers with written notification of the requirement to collect the PFC from passengers enplaned by such air carrier at the airport. Such notification is required for every PFC approval, acknowledgement, amendment, or extension.

The FAA estimates approximately 315 notifications per year at 0.5 hours per notification = 158 hours.¹²

[IC 6] Covered Air Carrier Transfer Funds Daily to PFC Account

Section 158.49 requires a covered air carrier that has filed for bankruptcy protection to segregate PFC revenue in a designated separate PFC account. At least once every business day, the covered air carrier must transfer all PFC revenue into the new PFC account.

The FAA estimates approximately 1 covered air carrier per year will make 130 transfers at a 0.25 hours = 33 hours.¹³

[IC 7] Public Agency Quarterly PFC Reports to Air Carriers

Section 158.63(a) requires each public agency to provide quarterly reports to air carriers collecting PFCs for the public agency. The report must include PFC revenue received, interest earned, project expenditures, and the current project schedule. Public agencies are also required to submit a copy of each quarterly report to the FAA.

The FAA estimates approximately 1,468 reports per year at 8 hours per report = 11,744 hours.¹⁴

[IC 8] Public Agency Report on Fiscal Year PFC Activity to FAA

Section 158.63(c) requires public agencies controlling large and medium hub airports receiving PFC revenues, to submit to FAA by July 30 of each year an estimate of PFC revenues to be collected in the ensuing fiscal year.

The FAA estimates approximately 61 reports per year at 2 hours per report = 122 hours.¹⁵

[IC 9] Air Carrier Quarterly PFC Reports to Public Agencies

Section 158.65(a) requires air carriers collecting PFCs to provide public agencies with quarterly reports providing an accounting of funds collected and funds remitted.

The FAA estimates approximately 18,404 reports per year at 0.25 hours per report = 4,601 hours.¹⁶

[IC 10] Covered Air Carrier Accounting Statement for FAA Review

Section 165.65(b) requires a covered air carrier that has filed for bankruptcy protection to submit a PFC account statement to be prepared for the FAA’s review of its account balance and actions during the previous month.

The FAA anticipated approximately one covered air carrier per year, which would require 12 reports per year. The FAA estimates 1 hour per report = 12 hours.

[IC 11] Public Agency to Maintain Separate PFC Accounting Records

Section 158.67(b) requires each public agency to maintain a separate accounting record for each application which identifies PFC revenues received from air carriers and the amounts expended upon each project.

The FAA estimates approximately 402 records per year at 2 hours per report = 804 hours.¹⁷

[IC 12] Public Agency Audit of PFC Projects

Section 158.67(c) requires each public agency to provide an independent audit at least annually of each project contained in an application upon request, to each air carrier that disbursed PFCs and to FAA. (The regulation allows the public agency to include the PFC audit within the annual audit for the AIP program and this calculation assumes most public agencies will take advantage of this option. The calculation of the AIP audit burden is covered under OMB Clearance No: 2105-0520, Uniform Administrative Requirements for Grants and Operative Agreements.)

The FAA estimates approximately 367 audits per year at 20 hours per audit = 7,340 hours.¹⁸

[IC 13] Air Carrier to Maintain Separate PFC Accounting Records

Section 158.69(a) requires issuing air carriers to maintain for each public agency for which it collects a PFC an accounting record of PFC revenue collected, remitted, and refunded, as well as any compensation the air carrier is permitted to retain under section 158.53(a).

The FAA estimates approximately 248 accounting records per year at 2 hours per record = 496 hours.

[IC 14] Air Carrier Audit of PFC Accounts

Section 158.69(b) requires issuing air carriers to provide an independent audit of PFC accounts annually upon request to each public agency.

The FAA estimates approximately 248 audits per year at 20 hours per audit = 4,960 hours.

A summary of the information collection by section is listed below.

Summary: Annual Information Collection	Reporting	Recordkeeping	Hourly Rate	IC Cost	Cost Per Response
Section 158.25	IC 1
# of Respondents	12	0
# of Responses per Respondent	1	0
Hours per Response	69	0
Total Reponses	12	0
Total Burden Hours	828	0	$58.14	$48,142	$4,012
Section 158.30	IC 2
# of Respondents	67	0
# of Responses per Respondent	1	0
Hours per Response	34	0
Total Reponses	67	0
Burden Hours	2,278	0	$58.14	$132,449	$1,977
Section 158.35	IC 3
# of Respondents	1	0
# of Responses per respondent	1	0
Hours per Response	10	0
Total Reponses	1	0
Burden Hours	10	0	$58.14	$581	$581
Section 158.37	IC 4
# of Respondents	130	0
# of Responses per respondent	1	0
Hours per Response	16	0
Total Reponses	130	0
Burden Hours	2,080	0	$58.14	$120,937	$930
Section 158.43	IC 5
# of Respondents	315	0
# of Responses per respondent	1	0
Hours per Response	0.5	0
Total Reponses	315	0
Burden Hours	158	0	$58.14	$9,158	$29
Section 158.49	IC 6
# of Respondents	1	0
# of Responses per respondent	130	0
Hours per Response	0.25	0
Total Reponses	130	0
Burden Hours	33	0	$58.14	$1,890	$15
Section 158.63(a)	IC 7
# of Respondents	367	0
# of Responses per respondent	4	0
Hours per Response	8	0
Total Reponses	1,468	0
Burden Hours	11,744	0	$58.14	$682,830	$465
Section 158.63(c)	IC 8
# of Respondents	61	0
# of Responses per respondent	1	0
Time per Response	2	0
Total Reponses	61	0
Burden Hours	122	0	$58.14	$7,093	$116
Section 158.65(a)	IC 9
# of Respondents	4601	0
# of Responses per respondent	4	0
Time per Response	0.25	0
Total Reponses	18404	0
Burden Hours	4,601	0	$58.14	$267,515	$15
Section 158.65(b)	IC 10
# of Respondents	1	0
# of Responses per respondent	12	0
Time per Response	1	0
Total Reponses	12	0
Burden Hours	12	0	$58.14	$698	$58
Section 158.67(b)	IC 11
# of Respondents	0	402
# of Responses per respondent	0	1
Time per Response	0	2
Total Reponses	0	402
Burden Hours	0	804	$58.14	$46,747	$116
Section 158.67(c)	IC 12
# of Respondents	367	0
# of Responses per respondent	1	0
Time per Response	20	0
Total Reponses	367	0
Burden Hours	7,340	0	$283.00	$2,077,220	$5,660
Section 158.69(a)	IC 13
# of Respondents	0	248
# of Responses per respondent	0	1
Time per Response	0	2
Total Reponses	0	248
Burden Hours	0	496	$58.14	$28,839	$116
Section 158.69(b)	IC 14
# of Respondents	248	0
# of Responses per respondent	1	0
Time per Response	20	0
Total Reponses	248	0
Burden Hours	4,960	0	$283.00	$1,403,680	$5,660
Total Annual Responses	21,215	650
Total Annual Burden Hours	34,165	1,300
Average Burden Hours per Response	2
ESTIMATED TOTAL ANNUAL RESPONSES	21,865		TOTAL ANNUAL COST TO RESPONDENTS		$4,827,779
ESTIMATED TOTAL ANNUAL BURDEN HOURS	35,466

The estimated total annual cost burden to respondents resulting from the information collection is $4,827,779.

Cost data is taken from US Department of Labor, Bureau of Labor Statistics Occupational Employment Statistics for labor category 13-0000, Business and Financial Operations Occupations because the collection could be completed by staff in a wide range of business analyst positions and pay ranges, or the respondent can hire a consultant. The 2019 mean hourly wage rate for 13-0000 is $37.56 (https://www.bls.gov/oes/current/oes130000.htm).

The average fringe benefit rate for government employees is 37.8% (US Dept. of Labor, Bureau of Labor Statistics News Release 10:00 EDT Thursday, June 18, 2020; https://www.bls.gov/news.release/ecec.nr0.htm)); and the average overhead rate is 17% ( Cody Rice, U.S. Environmental Protection Agency, “Wage Rates for Economic Analyses of the Toxics Release Inventory Program” (June 10, 2002), https://www.regulations.gov/document?D=EPA-HQ-OPPT-2014-0650-0005. ).

We calculate the total as follows:

HOURLY RATE FOR RESPONDENTS
ICR No. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, & 13
Mean Hourly Wage Rate	$37.56
Average Fringe Benefit Rate	37.8%
Total Hourly Benefit Rate	$14.20
Average Overhead Rate	17.0%
Total Hourly Overhead Rate	6.39
Total Hourly Rate	$58.14

Cost data for audits is based on The Financial Education & Research Foundation (FERF) 10^th Annual Audit Fee Survey Report finding average hourly audit fees at $283; https://markets.businessinsider.com/news/stocks/ferf-s-10th-annual-audit-fee-survey-report-reveals-accounting-changes-continue-to-be-key-influencer-of-fee-increases-1028819004.

ANNUAL COST TO RESPONDENTS
ICR Nos. 12 & 14
Mean Hourly Wage Rate	$283.00
Average Fringe Benefit Rate	0.0%
Total Hourly Rate	$283.00
Average Overhead Rate	0.0%
Total Rate	$283.00

13. Provide an estimate for the total annual cost burden to respondents or record keepers resulting from the collection of information.

No additional costs associated with this collection.

14. Provide estimates of annualized costs to the Federal government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information.

The estimated annualized cost to the Federal government is $3,632,913.

Section 158.27 will require extensive FAA coordination, review, and approvals, determinations of Airport Layout Plans, airspace actions, and environmental assessments in conjunction with the submittal of applications by public agencies under section 158.25. These activities are performed by an airport planner/PFC specialist at the GS-13/GS-14 level. Approximately 12 reviews/approvals per year at 2 hour each = 24 hours.

Sections 158.27(c)(1) and (2) and (d)(1) require the Administrator to advise the public agency by letter that its application submitted under section 158.25 is substantially complete/incomplete. The FAA will publish a notice in the Federal Register for any application containing projects with significant issues or public controversy. Time to review the application, prepare the letter, and publish the notice, as necessary, is estimated to take 76 hours per proposed public agency’s application per year. These activities are performed by an airport planner/PFC specialist at the GS-13/GS-14 level. Approximately 12 application reviews, letter preparations, and notices per year at 40 hours each = 480 hours.

Section 158.29 requires the Administrator to issue a final decision approving or disapproving the application, which involves the preparation and coordination of the final decision letter and Final Agency Decision. This action does not apply to when streamlined procedures are used for PFC authorizations. Therefore, the number of decision letters is reduced from the prior information collection approval from 33 applications to 12 applications congruent to the number of submissions under section 158.25. These activities are estimated to take 80 hours per application per year and are generally performed by an airport planner/PFC specialist at the GS‑13/GS-14 level and a manager at the GS-15 level. Approximately 12 decision letters per year at 40 hours each = 480 hours.

Section 158.30(d) requires the FAA determine that the amount and duration of collection will not result in revenue that exceeds the amount necessary; that the projects meet the requirements of section 158.15; each project at a PFC level above $3.00 meets the requirements of section 158.17(a)(3); and review Airport Layout Plans, airspace actions, and environmental assessments in conjunction with the submittal of applications by public agencies. Such activities are estimated to entail 16 hours per proposed public agency’s application per year. These activities are performed by an airport planner/PFC specialist at the GS-13/GS-14 level. Approximately 67 reviews/approvals per year at 16 hours = 1,072 hours.

Section 158.30(e) requires the FAA to issue a written acknowledgment of the public agency’s notice. Preparation and coordination of the notice of intent is estimated to take 15 hours per notice per year. These activities are generally performed by an airport planner/PFC specialist at the GS-13/GS-14 level and a manager at the GS-15 level. Approximately 67 decision letters per year at 8 hours each = 536 hours.

Section 158.35(b) requires the Administrator to review requests from public agencies for extensions of time to impose PFC’s before using PFC revenue. The time for this review is estimated to take 40 hours per request per year. These activities are generally performed by an airport planner/PFC specialist at the GS-13/GS-14 level and a manager at the GS-15 level. Approximately 1 extension request per year at 8 hours rate = 8 hours.

Section 158.37(b)(1) and (2) requires the Administrator to review and approve amendment requests with or without public notice and opportunity for comment prior to approving or disapproving amendments. The time for these actions is estimated to take 5 hours per amendment per year. These activities are generally performed by an airport planner/PFC specialist at the GS-13/GS-14 level and a manager at the GS-15 level. Approximately 130 amendments per year at 5 hours per amendment = 650 hours.

Section 158.71(a) authorizes the Administrator to audit/review use of PFC revenues by a public agency. Such audit/review is estimated to take 8 hours per year per public agency. These activities are generally performed by an airport planner/PFC specialist at the GS-13/GS-14 level and a manager at the GS-15 level. Approximately 367 audits/reviews per year at 4 hours per audit = 1,468 hours.

Sections 158.83 – 158.87. These sections authorize the Administrator to terminate the authority to impose a PFC and to reduce Airport Improvement Program (AIP) funds. This includes meetings, informal resolution, publishing a notice of termination, public hearing and a finding in the Federal Register, and notifying all air carriers operating at the airport. Such termination is estimated to take 160 hours per year per termination. This time would include the informal resolution process outlined in section 158.83 and the reduction of grant funds specified in Section 158.87. These activities are generally performed by an airport planner/PFC specialist at the GS-13/GS-14 level and a manager at the GS-15 level. Approximately 1 termination per year at 160 hours = 160 hours.

Sections 158.91 – 158.95 require the FAA to track and calculate the reduction in AIP apportionments of approximately 61 public agencies. Such oversight is estimated to take 6 hours per public agency per year. These activities are performed by an airport planner/PFC specialist at the GS-13/GS-14 level. Approximately 61 separate recordkeeping systems will be maintained per year at 6 hours each = 366 hours.

Other Federal Burden. It is estimated that in addition to the above requirements there will be a Federal burden associated with administrative functions to generally oversee the entire PFC program; i.e. monitoring, recordkeeping, training of FAA/public agency employees. Such additional oversight is estimated to entail 80 hours per approved PFC location per year. These activities are generally performed by an airport planner/PFC specialist at the GS-13/GS-14 level and a manager at the GS-15 level. Oversight of approximately 367 approved locations per year at 80 hours = 29,360 hours.

Since the Federal work activities associated with this information collection are performed by government employees at the GS-13, GS-14, and GS-15 pay grades who are assigned to work in region and district offices located throughout the United States, the middle grade of GS-14 at step 1 was used to calculate the costs at the base rate without locality.

The annualized cost to the Federal government was determined as follows:

Annualized Costs to the Federal Government	Federal Hours	Hourly Rate	Federal Cost
Section 158.27
# of Respondents	12	$104.99	$2,520
# of Responses per Respondent	1
Federal Hours per Response	2
Total Reponses	12
Total Federal Hours	24
Section 158.27(c) and (d)
# of Respondents	12	$104.99	$50,393
# of Responses per Respondent	1
Federal Hours per Response	40
Total Reponses	12
Total Federal Hours	480
Section 158.29
# of Respondents	12	$104.99	$50,393
# of Responses per Respondent	1
Federal Hours per Response	40
Total Reponses	12
Total Federal Hours	480
Section 158.30(d)
# of Respondents	67	$104.99	$112,544
# of Responses per Respondent	1
Federal Hours per Response	16
Total Reponses	67
Total Federal Hours	1,072
Section 158.30(e)
# of Respondents	67	$104.99	$56,272
# of Responses per Respondent	1
Federal Hours per Response	8
Total Reponses	67
Total Federal Hours	536
Section 158.35
# of Respondents	1	$104.99	$840
# of Responses per Respondent	1
Federal Hours per Response	8
Total Reponses	1
Total Federal Hours	8
Section 158.37
# of Respondents	130	$104.99	$68,240
# of Responses per Respondent	1
Federal Hours per Response	5
Total Reponses	130
Total Federal Hours	650
Section 158.71(a)
# of Respondents	367	$104.99	$154,119
# of Responses per Respondent	4
Federal Hours per Response	1
Total Reponses	1,468
Total Federal Hours	1,468
Sections 158.83 through 158.87
# of Respondents	1	$104.99	$16,798
# of Responses per Respondent	1
Federal Hours per Response	160
Total Reponses	1
Total Federal Hours	160
Sections 158.91 through 158.95
# of Respondents	61	$104.99	$38,425
# of Responses per Respondent	1
Federal Hours per Response	6
Total Reponses	61
Total Federal Hours	366
Other Federal Burden
# of Respondents	367	$104.99	$3,082,370
# of Responses per Respondent	1
Federal Hours per Response	80
Total Reponses	367
Total Federal Hours	29,360
TOTAL ANNUALIZED COST TO FEDERAL GOVT	34,604		$3,632,913

Cost data is taken from OPM’s hourly rate for a GS-14 in the Washington DC Locality area. (https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/20Tables/html/DCB_h.aspx). The average fringe benefit rate for government employees is 37.8% (US Dept. of Labor, Bureau of Labor Statistics News Release 10:00 EDT Thursday, June 18, 2020; https://www.bls.gov/news.release/ecec.nr0.htm); and the average overhead is 17% (Cody Rice, U.S. Environmental Protection Agency, “Wage Rates for Economic Analyses of the Toxics Release Inventory Program” (June 10, 2002), https://www.regulations.gov/document?D=EPA-HQ-OPPT-2014-0650-0005). We calculate the total as follows

HOURLY COST TO FEDERAL GOVERNMENT
Labor Costs
Hourly Wage Rate	$67.82
Average Fringe Benefit Rate	37.8%
Total Hourly Fringe Rate	$25.64
Average Overhead Rate	17.0%
Total Hourly Overhead Rate	$11.53
Total Rate	$104.99

15. Explain the reasons for any program changes or adjustments.

This is a request for renewal of a currently approved collection. The burden hours have increased from the prior approval for several reasons. Many of the estimates in the prior approval were based on the professional expertise of the FAA’s PFC program specialist staff. In preparing this request for renewal, the FAA used factual historical program data to the maximum extent possible. The FAA’s PFC program staff also informally consulted with industry stakeholders and subject matter experts in determining estimates. While these adjustments provide greater accuracy and transparency in the FAA’s burden estimates, they also result in increased burden hours. Program changes associated with recent legislation also impact the burden hours.

Additionally, the stated total annualized cost to the Federal government is $3,632,913. The cost is higher than the previously approved cost of $1,537,336 because the hourly rate used to calculate the prior request for information collection approval did not include the fringe benefit rate and the overhead rate. The prior calculation also used an average rate of pay of $41.00 per hour (OPM’s actual base hourly rate for a GS‑14, Step 1, for calendar year 2016 was $41.88), which is lower than the 2020 pay rate of $67.82.

16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex analytical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.

There are no publications issued.

17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons why display would be inappropriate.

No exemption from displaying the expiration date is requested.

18. Explain each exception to the topics of the certification statement identified in “Certification for Paperwork Reduction Act Submissions.”

There are no exceptions to this certification.

1 This estimate is based on actual data from FAA’s System of Airports Reporting (SOAR). As of August 31, 2020, there were 402 airport locations that had been approved to impose PFCs since inception of the PFC program and 367 airport locations currently collecting PFCs. The actual number of public agency respondents varies for several reasons. For instance, many public agencies control more than one airport location. Also, public agencies are required to comply with certain reporting requirements if they retain balances in their PFC accounts even if they are no longer collecting PFCs.

2 This estimate is based on actual data from SOAR. As of August 31, 2020, there were 248 domestic and foreign air carriers that served U.S. airports imposing PFCs. This estimate excludes air carriers having fewer than 100 passenger enplanements in a calendar year (CY).

3 The FAA estimated burden hours are based on the specialized knowledge and experience of FAA’s PFC program specialists located in the agency’s headquarters, region, and district offices. In some instances, the FAA’s PFC program specialists informally consulted with various public agencies and other industry stakeholders to determine estimated hours.

4 Section 121 of the FAA Reauthorization Act of 2018 (Pub. L. 115-254, October 5, 2018), as codified at 49 U.S.C. § 40117(l), authorizes the FAA to implement a pilot program that is similar to the non-hub pilot program outlined in section 158.30.

5 Based on 10-year historical data of PFC applications, the FAA estimates that nearly 65% of past PFC applications would have met the criteria for streamlined processing. According to SOAR data, on average, the FAA received 36 PFC applications per year from CY 2016 to 2019, and in estimating the number of applications for this information collection, the FAA projected that the number of annual applications would be reduced by 65% from an average of 36 applications to 12 applications per year.

6 As of August 31, 2020, SOAR data shows there were 30 large-hub airports collecting PFCs, which would account for 23% of the total currently‑approved PFC applications for small-, medium-, and large-hub airports. There were 31 medium-hub airports, accounting for 24%, and 69 small-hub airports, accounting for 53%. The FAA estimates that it takes roughly 500 hours to complete an application for a large-hub airport while it only takes about 200 hours for a medium-hub and 80 hours for a small hub. By applying the percentage weights to the estimated hours for each hub size, the FAA calculated a weight average of 69 hours for a respondent to prepare a PFC application.

7 The pilot program for non-hub airports was authorized and codified in the regulations prior to authorization of the pilot program for small-, medium-, and large-hub airports.

8 According to SOAR data, the FAA received an average of 36 PFC applications per year from CY 2016 to 2019 and an average of 43 Notices of Intent under section 158.3 during the same period. With the implementation of streamlined procedures for small-, medium-, and large-hub airports, the FAA expects the average number of non‑streamlined applications to be reduced to 12 applications per year while the remaining 24 applications would be processed under the streamlined procedures used for PFC authorizations. Thus, the FAA estimates 67 submissions (43 notices and 24 applications) per year.

9 The FAA calculated a weighted average in estimating hours. According to SOAR data, as of August 31, 2020, there were 130 small-, medium-, and large-hub airports collecting PFCs, accounting for 35% of all currently‑approved PFC collecting airports. There were 237 non-hub and commercial service airports, accounting for 65% of all currently‑approved PFC collecting airports. The FAA estimates that it would take roughly 120 hours to prepare a Notice of Intent/streamlined application small-, medium-, and large-hub airports while it only takes about 40 hours to prepare a Notice of Intent for non-hub and commercial service airports. By applying the percentage weights to the estimated hours for each airport category, the FAA calculated a weighted average of 34 hours for a respondent to prepare a Notice of Intent/streamlined application.

10 According to FAA records, the last PFC application extension was approved more than 10 years ago in 2008. Also, very few extensions have been approved since inception of the program. Due to such data, the hours associated with this collection are estimated based on the specialized knowledge and experience of FAA’s PFC program specialists located in the agency’s headquarters, region, and district offices. limited data

11 According to SOAR data, the FAA processed an average of 130 amendments per year from 2016-2019. The FAA estimated hours are based on the specialized knowledge and experience of FAA’s PFC program specialists located in the agency’s headquarters, region, and district offices.

12 According to SOAR data, the FAA processed an average of 315 actions per year from 2016-2019 that would require notification. The FAA estimated hours are based on the specialized knowledge and experience of FAA’s PFC program specialists located in the agency’s headquarters, region, and district offices.

13 Fewer than three air carriers filed for bankruptcy protection between 2016 and 2019. Therefore, the FAA is estimating one air carrier bankruptcy annually for this information collection. On average, such bankruptcy proceedings last no more than 6 months (26 weeks). The FAA estimates 15 minutes per day to make the required transfers, which only occur on business days.

14 As of August 31, 2020, 367 airport locations were collecting PFCs and each public agency is required to report quarterly, which results in 1,468 reports annually. The FAA estimated hours are based on the specialized knowledge and experience of FAA’s PFC program specialists located in the agency’s headquarters, region, and district offices.

15 As of August 31, 2020, there were 61 large- and medium-hub airports collecting PFCs. The FAA estimated hours are based on the specialized knowledge and experience of FAA’s PFC program specialists located in the agency’s headquarters, region, and district offices.

16 The number of airports served by a single air carrier varies widely. Some air carriers serve more than 200 airports while other air carriers serve only one airport. To estimate this collection, the FAA determined the total number of domestic and foreign air carriers serving U.S. airports and identified how many airports each air carrier served.

Assuming each air carrier provided one report to each airport served by the air carrier, a total of 4,601 reports would need to be provided. Since the regulation requires such reports to be transmitted quarterly, a total of 18,404 reports would need to be transmitted annually. Since this exchange of information is typically accomplished electronically, the FAA estimates that it would take roughly 15 minutes per report which results in an annual burden of 4,601 hours.

17 Since public agencies are required to retain PFC account records if they hold balances in their PFC account even when they are not collecting PFCs, this estimate includes all approved airport locations since inceptions.

18 The amount of time needed to conduct an audit varies with the size of the airport and the quality of the public agency’s internal accounting and recordkeeping. Generally, complete financial audits take 3-6 weeks, but could take up to 12 weeks, and auditing PFC records is a small component within the larger scope of a public agency’s annual audit. Assuming that public agencies follow the FAA’s PFC program guidance, PFC audits should only take a minimal amount of time.