Department of Transportation, Federal Aviation Administration: Congestion Management Rule for LaGuardia Airport
GAO-09-122R: Oct 27, 2008
- Full Report:
GAO reviewed the Department of Transportation, Federal Aviation Administration's (FAA) new rule on a congestion management rule for LaGuardia Airport. GAO found that (1) the final rule addresses congestion at LaGuardia Airport by grandfathering the majority of operations and auctioning off a limited number of slots, the proceeds of which will be used to mitigate congestion and delay in the New York City area; and (2) although GAO's review indicated that FAA complied with the applicable procedural requirements, FAA does not have the requisite statutory authority to promulgate this final rule.
Department of Transportation, Federal Aviation Administration: Congestion Management Rule for LaGuardia Airport, GAO-09-122R, October 27, 2008
Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Transportation, Federal Aviation Administration (FAA), entitled Congestion Management Rule for LaGuardia Airport (RIN: 2120-AI70). We received the rule on
The final rule addresses congestion at
Enclosed is our assessment of FAA's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. Although our review indicates that FAA complied with the applicable procedural requirements, it is our position that FAA does not have the requisite statutory authority to promulgate this final rule. Specifically, on
If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Michael R. Volpe, Assistant General Counsel, at (202) 512-8236.
Robert J. Cramer
Associate General Counsel
REPORT UNDER 5 U.S.C. sect. 801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
DEPARTMENT OF TRANSPORTATION,
FEDERAL AVIATION ADMINISTRATION
"CONGESTION MANAGEMENT RULE FOR
(i) Cost-benefit analysis
FAA concluded that the final rule has benefits that justify its costs. FAA states that the net present value benefits of the auction are $65.4 million. While the total present value auction costs are $24 million, the slot allocation benefits that offset these costs are $89.3 million.
(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. sections 603-605, 607, and 609
FAA certified that the final rule will not have a significant impact on a substantial number of small entities under the Act.
(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. sections 1532-1535
FAA concluded that the final rule will not impose any federal mandates under the Act on state, local, or tribal governments, or on the private sector of $136.1 million in any one year.
(iv) Other relevant information or requirements under acts and executive orders
Administrative Procedure Act, 5 U.S.C. sections 551 et seq.
The final rule was issued using the notice and comment procedures contained in 5 U.S.C. sect. 553. On
Paperwork Reduction Act, 44 U.S.C. sections 3501-3520
The final rule contains new information collection requirements. As required by the Act, the FAA has submitted these information requirements to the Office of Management and Budget (OMB) for its review.
Statutory authorization for the rule
FAA cites 49 U.S.C. sect. 40103 as its authority to establish this rule. GAO disagrees with FAA's assertion of its statutory authority, however, and so held in B-316796,
Executive Order No. 12,866
FAA determined that the final rule is an economically significant regulatory action under the Order, and, therefore, OMB has reviewed this rule.
Executive Order No. 13,132 (Federalism)
FAA determined that the final rule will 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.
 In addition, in August 2008, prior to the issuance of this final rule, FAA announced that it was planning to auction two specific slots at