Small Business Regulatory Review and Reform Initiative

Regulatory Review and Reform (r3) Top 10 Rules, 2008
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Update Flight Rules for the Washington, DC, Metropolitan Area
Agency	Federal Aviation Administration (FAA), U.S. Department of Transportation
Submitter	David Wartofsky, Potomac Airfield
Nominated	February 28, 2008
Description	Following the events of September 11, 2001, the FAA issued an emergency rule establishing an air defense identification zone (ADIZ) for the region surrounding Washington, DC. The emergency rule imposed a 15-mile flight restricted zone (FRZ) and a 30-mile ADIZ emanating from Reagan National Airport. In 2005, the FAA proposed to make the emergency rule permanent (70 Fed. Reg. 45,250, August 4, 2005). The rule, if finalized, would impose flight operation requirements on aircraft operations within that area, including requirements that aircraft operators (1) file and activate a flight plan before entering (or re-entering) the restricted area; (2) maintain two-way radio communication with air traffic control; and (3) obtain and display a discrete transponder code while operating within the area. The FAA has concluded that while these restrictions are likely to cause considerable burdens to both air traffic control and the aviation sector within the affected area, they are needed for security reasons.
Small entities affected	Three small airports in the FRZ and a number of other airports in the ADIZ are significantly affected by these restrictions. Further, the restrictions have caused a significant economic impact on the region as a whole.
Regulatory burden	The FRZ and ADIZ have significantly restricted aviation within the Washington, DC, region, including limiting flights to and from the three small airports in the FRZ. It is likely that all three of these airports (and any aviation companies operating at the airports) will go out of business if the rules are finalized. The rule also affects some 150 other airports and numerous businesses operating in the ADIZ.
Proposed burden reduction	A review of the flight restriction rule could identify provisions that are unnecessary, inefficient, or outdated for affected small entities. The submitter has suggested a variety of alternatives, including an expandable FRZ that could be extended in a time of heightened security. By conducting a coordinated review of the rule, the FAA, the Department of Homeland Security, the Department of Defense, and the Secret Service would be able to determine whether the rule could be improved, while continuing to provide adequate security. A full analysis of both the security benefits and the economic impacts should be completed prior to finalizing any rule.
Small entity benefits	Review and potential revision of the flight restriction rule could help small entities have a more predictable use of aviation space and could enhance economic activity within the Washington, DC region.
Status	On March 19, 2008 the FAA notified Advocacy by letter that it expects to finalize the flight restriction rules by January 2009. FAA indicated in the letter that the agency would work with Advocacy to ensure a transparent review of the rule's impact on small entities. FAA issued its final rule on December 16, 2008. The final rule reduced the economic impact on small entities by reducing the size of the restricted airspace and providing greater flexibility.
Advocacy contact	Bruce Lundegren, advocacy@sba.gov