Dave Hudson, 

Vice Chair 

Janet Abelson 

Newell Arnerich 

Tom Butl 

David Durant 

Federal Glover 

Karen Mitchoff Kevin Romick 

Don Tatzin 

Robert Taylor 

Randell H. Iwasaki, 

Executive Director 

2999 Oak Road 

Suite 100 

Walnut Creek 

CA 94597 

PHONE: 925.256.4700 

FAX: 925.256.4701 

www.ccta.net 

Finance Management Federal Aviation Administration (FAA) 

800 Independence Avenue SW 

Washington, DC 20591 

Re: Compliance with an FAA Requirement for a Submitted "Action Plan" 

Mr. Brown, 

The Contra Costa Transportation Authority was notified on the with the FAA's "Policy 

and Procedures Concerning the Use of Airport Revenue" with respect to the use of state 

and local general sales tax revenues that touch aviation fuel rule after its final adoption. 

Our agency, nor our advocates or industry representatives were aware of the 

rulemaking process surrounding this policy change. 

The Contra Costa Transportation Authority (CCTA) is impacted by this ruling because our 

agency obtained the required supermajorit y (2/3 or 66.67%) of local voter approval in 

2009 to levy a one-half of one percent (.OS%) sales tax for funding a specific expenditure 

plan comprised of transportation projects and programs. This voter-approved 

expenditure plan provides funding of approximately $80 million per year for projects 

and programs that serve airports within Contra Costa County, including improvements 

on highways, arterial and other roadways that serve airports. CCTA also funds transit 

services that provide access for businesses, commuters and travelers airports within the 

County. 

The Contra Costa Transportation Authority believes the Federal Government does not 

have jurisdiction to redirect voter-approved sales tax revenues as contemplated by the 

regulatory change effective in December 2017. In California, data from fuel sales are 

aggregated, and estimating the fiscal impact of the redirection is difficult to measure. 

Based on rough estimates of gallons used and average fuel prices, our staff estimates 

redirection local sales tax dollars from a voter-approved transportation expenditure 

plan would result in a loss of approximately $30,000 to $60,000 per year of 

transportation funding in Contra Costa. Our investment of over $80 million per year in 

roads and transit systems far exceeds amounts derived from airport fuel sales. 

Although our agency has grave concerns with FAA's ruling, the Contra Costa 

Transportation Authority has prepared this letter to describe the action plan required by 
• CCTA is a local transportation authority organized under the provisions of the 

Local Transportation Authority and Improvement Act (the Act). constituting 

Division 19 of the Public Utilities Code of the State of California, commencing 

with Section 180000. In accordance with the Act, CCTA was created on February 

8, 1988, by action of the Board of Supervisors of Contra Costa County. 

• The Act, among other things, authorizes CCTA to establish a retail transactions 

and use tax applicable in the incorporated and unincorporated territory of 

Contra Costa County in accordance with the California Transactions and Use Tax 

Law {Revenue and Taxation Code Sections 7251 et seq.) upon authorization by 

the electors voting on the issue. On November 2, 2004, in accordance with the 

Act, the voters of Contra Costa County approved Measure J by a 71% majority 

vote and thereby imposed a .05% sales tax rate in the Contra Costa County for a 

period oftwenty years, which began on April!, 2009 and expires on March 31, 

2034. The sales tax imposed by CCTA is in addition to sales taxes levied by other 

jurisdictions, both locally and statewide. 

Action Plan Requirement: Tracking System 

• CCTA has commenced trying to identify sales and use tax revenue to comply with 

the requirement. For implementation purposes, issues will arise with some 

taxpayers that co-mingle sales tax reporting of retail gas station locations not at 

an airport and/or non-fuel related sales and jet fuel sales. The internal process to 

implement this effort- which is to identify, track and segregate the applicable 

revenue, is extensive. CCTA staff is developing a process forthe reporting 

requirements and tracking systems for specific information on aviation fuel tax 

revenues. CCTA would appreciate the FAA providing a descriptive definition of 

the requirements for the mandated "tracking system." 

Acton Plan Requirement: Transition Period 

• It is CCTA's intent to comply with the requirements set forth and this tetter 

serves as notification that a reasonable transition period, not to exceed three 

years, is needed to become compliant with the new rule related to revenue 

redirection. 

In consideration of the broader concerns outlined above, CCTA also requests that the 

FAA consider a re-evaluation or immediate sunset of the ruling and commence an open 
Sincerely, 

Randell H. Iwasaki, 

Executive Director 

cc: Julie Pierce, Chair of the Contra Costa Transportation Authority 

The Honorable Diane Feinstein, United States Senate 

The Honorable Barbara Boxer, United States Senate 

The Honorable Jerry McNerney, United States House of Representatives 

The Honorable Mark DeSaulnier, United States House of Representatives 

The Honorable Eric Swalwell, United States House of Representatives 

The Honorable Mike Thompson, United States House of Representatives 

Jay Chamberlain, Department of Finance 

Michael Coleman, league of California Cities