Riverside County Transportation Commission 

December 8, 2015 

Mr. James T. Brown 

Finance Management 

Federal Aviation Administration 

800 Independence Avenue SW 

Washington, DC 20591 

4080 Lemon Street, 3rd Floor • Riverside, CA 

Mailing Address: P. 0. Box 12008 • Riverside, CA 92502-2208 

(951) 787-7141 • Fax (951 ) 787-7920 • www.rctc.org 

Subject: Compliance with a Federal Aviation Administration Requirement for a Submitted "Action Plan" Due by 

December 8, 2015: FAA Policy and Procedures Concerning the Use of Airport Revenue; Proceeds from 

Taxes on Aviation Fuel 79, Fed. Reg 66282, November 7, 2014. Revenue Implications, Concerns with 

Implementation Requirements and Other Issues. Suggested Action Consideration 

Dear Mr. Brown: 

The Riverside County Transportation Commission (Commission) wishes to express its concerns regarding the abovereferenced rule. As a county transportation commission, we are not regularly notified of Federal Aviation 

Administration (FAA) rulemaking and only found out about this one after its final adoption and via a private party. 

The Commission is concerned and impacted by this ruling because of the one-half cent sales tax approved by Riverside 

County (County) voters for local transportation purposes in November 2002, which became effective July 1, 2009, for a 

30-year period. Measure A provides many benefits to the airports in Riverside County, including local and regional road 

projects and public transit services, which provide safe, reliable access to airports. This infrastructure provided by 

Measure A ensures airports remain economically viable and meet the needs of the communities that airports serve. 

As previously mentioned, this was a voter-approved sales tax measure that imposes a transaction and use tax on all 

taxable sales with the County. County voters did not consider, nor support, special consideration of the collection of nor 

the allocation of revenue from any specific source. The revenues collected are dedicated to transportation projects 

throughout the County, and tax-exempt bonds have been issued and are backed by a pledge of the Measure A revenues. 

Executive Order 13132 (Federalism) establishes the principles and criteria that apply to regulations, legislative 

comments, and other policy statements that have a substantial effect on sta1tes. The Commission is concerned with the 

FAA's position/belief that "Federalism implications (if any) are substantially mitigated because of the prior legislative 

intent." The final policy amendment does impose substantial direct requirement costs on state and local governments 

and should have been subjected to Federalism implications. The FAA adoption of the ruling caught our entire 

stakeholder community by surprise. The cost, loss of revenues, and current and future workload involved as a result of 

this unforeseen ruling is substantial. 

The following serves as the intent to comply with the ruling based on the Commission's understanding of what is 

required of any "action plan" submitted: 
Mr. James T. Brown 

Page 2 

December 8, 2015 

Action Plan Requirement: Applicable Law 

• Local: Measure A, a one-half cent transaction and use tax to fund transportation improvements originally 

approved in 1988 and again in 2002 as a 30-year extension commencing in 2009 through 2039, is the local 

revenue source for which the Commission serves as the tax authority and implementation agency. Al location of 

funding for this tax program is governed by a voter-approved expenditure plan that can be amended only 

through a number of actions- none of which are under the direct control of any of Riverside County's airport 

owners or operators. 

• State: California's Department of Finance (DOF) will provide guidance on any laws, regulations, and procedures 

that may need amending. The Commission has seen the state-prepared action plan dated November 25, 2015. 

Action Plan Requirement: Tracking System 

• The Commission, in conjunction with its sales tax consultant, commenced trying to identify sales and use tax 

revenue to comply with the requirement. For implementation purposes, there is going to be an issue with some 

of the taxpayers that comingle sales tax reporting of their retail gas station locations not at an airport and/or 

non-fuel related sales and their jet fuel sales. The internal process to undertake this effort, which is to identify, 

track and segregate the revenue, is extensive; a process is being developed for the reporting requirements and 

tracking systems for discrete information on aviation fuel tax revenues. The Commission would appreciate the 

FAA providing a descriptive definition of the requirements for the mandated "tracking system." 

Acton Plan Requirement: Transition Period 

• It is the Commission's intent to comply with the requirements set forth and will notify the FAA if a reasonable 

transition period, not to exceed three years, is needed to become compliant with the rule. 

In consideration of the broader concerns outlined above, the Commission also requests the FAA consider a re-evaluation 

or immediate sunset of the ruling and commence an open and full public process discussion with all stakeholders to 

ensure full participation by impacted parties. The Commission appreciates the FAA's consideration of this request and 

looks forward to working with your team and others impacted by this ruling. 

Sincerely, 

By email: James.T.Brown@faa.gov. 

c: The Honorable Barbara Boxer 

The Honorable Ken Calvert 

The Honorable Diane Feinstein 

The Honorable Duncan Hunter 

The Honorable Raul Ruiz 

The Honorable Mark Takano