GAO-02-216R

United States General Accounting Office

Washington, DC 20548

B-289292

November 20, 2001

The Honorable Ernest F. Hollings

Chairman

The Honorable John McCain

Ranking Minority Member

Committee on Commerce, Science, and Transportation

United States Senate

The Honorable Don Young

Chairman

The Honorable James L. Oberstar

Ranking Minority Member

Committee on Transportation and Infrastructure

House of Representatives

Subject: Department of Transportation, Office of the Secretary: Procedures for

Compensation of Air Carriers

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 (DOT), Office of the

Secretary, entitled “Procedures for Compensation of Air Carriers” (RIN: 2105-AD06).

We received the rule on November 6, 2001. It was published in the Federal Register

as a “final rule; request for comments” on October 29, 2001. 66 Fed. Reg. 54616.

The final rule establishes application procedures for air carriers interested in

requesting compensation under the Air Transportation Safety and System

Stabilization Act. The Act authorized $5 billion in compensation to air carriers for

direct and incremental losses incurred as a result of the September 11, 2001, attacks.

Enclosed is our assessment of the DOT’s compliance with the procedural steps

required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.

Our review indicates that DOT complied with the applicable requirements.

If you have any questions about this report, please contact James W. Vickers,

Assistant General Counsel, at (202) 512-8210. The official responsible for GAO
Page 2 GAO-02-216R

evaluation work relating to the subject matter of the rule is John Anderson,

Managing Director, Physical Infrastructure. Mr. Anderson can be reached at (202)

512-2834.

signed

Kathleen E. Wannisky

Managing Associate General Counsel

Enclosure

cc: Jennifer Abdul-Wali

Senior Regulations Analyst

Department of Transportation
GAO-02-216R

ENCLOSURE

ANALYSIS UNDER 5 U.S.C. § 801(a)(1)(B)(i)-(iv) OF A MAJOR RULE

ISSUED BY THE

DEPARTMENT OF TRANSPORTATION,

OFFICE OF THE SECRETARY

ENTITLED

"PROCEDURES FOR COMPENSATION OF AIR CARRIERS"

(RIN: 2105-AD06)

(i) Cost-benefit analysis

Since the final rule is being issued on an emergency basis, DOT has determined that

section 6(a)(3)(D) of Executive Order No. 12866 is applicable and did not conduct a

formal cost-benefit analysis. However, the impact is expected to be favorable by

making funds available to compensate the air carriers for losses resulting from

September 11, 2001.

(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. §§ 603-605,

607, and 609

Since the final rule was not preceded by a notice of proposed rulemaking, DOT was

not required to prepare a Regulatory Flexibility Analysis. However, DOT expects the

rule to have a favorable impact on small entities since it consists of the small entities

(i.e., air taxis) receiving compensation.

(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform

Act of 1995, 2 U.S.C. §§ 1532-1535

The final rule does not contain either an intergovernmental or private sector

mandate, as defined in title II, of more than $100 million in any one year.

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

DOT has found that it is impracticable, unnecessary, and contrary to the public

interest to delay the rule’s effective date and obtain public comments under 5 U.S.C.

553 and has made the rule effective immediately. However, DOT is providing a 14-

day comment period following publication.

Paperwork Reduction Act, 44 U.S.C. §§ 3501-3520

The final rule contains information collections that are subject to review by the

Office of Management and Budget (OMB) under the Paperwork Reduction Act. The
Page 2 GAO-02-216R

collections have been approved by OMB on an emergency basis and assigned OMB

control No. 2105-0546.

Statutory authorization for the rule

The final rule is promulgated under the authority contained in section 101(a)(2) of

the Air Transportation Safety and System Stabilization Act, Public Law 107-42,

49 U.S.C. 40101 note.

Executive Order No. 12866

The final rule was reviewed by OMB and found to be an “economically significant”

regulatory action under the order.

Executive Order No. 13132 (Federalism)

DOT has determined that the final rule does not have sufficient federalism

implications to warrant the preparation of a federalism assessment.