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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Suggested Citation:"Part 1 - Overview." National Academies of Sciences, Engineering, and Medicine. 2019. Airport Management Guide for Providing Aircraft Fueling Services. Washington, DC: The National Academies Press. doi: 10.17226/25400.
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Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

Overview P A R T 1 11 Chapter 1 Introduction 11 1.1 Airports as Active Participants in the FBO Industry 12 1.2 Expectations about Aviation Fuel Revenues 13 1.3 Current Challenges for the Aviation Fueling Business 17 1.4 Purpose of the Management Guide 18 1.5 Navigating the Management Guide 19 1.6 References 20 Chapter 2 Overview of the Aviation Fuel Industry 20 2.1 Upstream, Midstream, and Downstream Functions 21 2.2 Crude Oil and Refined Product Basics 26 2.3 Production and Distribution of Aviation Fuels 27 2.4 Consumption of Aviation Fuels 28 2.5 Pricing of Avgas and Jet Fuel 31 2.6 Managing Volatility in Aviation Fuel Prices 35 2.7 References 36 Chapter 3 Airport Fueling Systems 36 3.1 Uses of Aviation Fuel 37 3.2 Fuel Delivery to Aircraft 37 3.3 Prefabricated Self-Service Units 38 3.4 Components of a Full-Service Fueling System 47 3.5 Safety and Environmental Considerations 51 3.6 Summary of Federal and State Regulations, Codes, and Standards 53 3.7 References Part 1 of the management guide provides an overview of the aviation fuel business, a basic introduction to the refining and transportation of aviation fuels, and a discussion of the components of an airport fueling system.

11 1.1 Airports as Active Participants in the FBO Industry 1.2 Expectations about Aviation Fuel Revenues 1.3 Current Challenges for the Aviation Fueling Business 1.4 Purpose of the Management Guide 1.5 Navigating the Management Guide 1.6 References Over the last three decades, the provision of fueling services at many airports has moved from the private sector to the public sector. As of 2016, 47% of fixed-base operator (FBO) locations are operated by airports. The purpose of this management guide is to help airports evaluate, take action, and implement strategies to improve existing airport-operated fueling services; to take over these functions from a private FBO; or to initiate fueling services for the first time at the airport. Chapter 1 sets an historical context for airport involvement in fueling and other aviation services and presents an overview of how the management guide is organized. 1.1 Airports as Active Participants in the FBO Industry General aviation (GA) airports share a long history of mom-and-pop establishments that supported based and visiting aircraft at many of the 3,332 public use airports in the United States (FAA, 2016a). These businesses sold fuel, rented hangars, performed aircraft maintenance, and offered flight instruction. In the 1980s, an estimated 10,000 FBOs operated in the United States and thrived because of an expanding GA population of pilots and aircraft owners. However, following the tragic events of September 11, 2001, GA activity entered a period of sustained decline, and along with this trend, many of the smaller FBOs closed or merged with other companies. By 2016, the number of FBO locations had declined from 10,000 to approximately 3,440 at 2,995 public use airports. An estimated 336 airports had no fueling services at all. During this time, at the busiest airports, Landmark Aviation, Signature Flight Support, and Atlantic Aviation opened or acquired many FBOs and built expansive networks of facilities. At smaller GA airports, the number of private FBOs diminished and many airport sponsors took over responsibility for fueling and other aviation services. An estimated 1,630 FBO locations were operated by airports in 2016. While some airports view takeover of FBO services as a temporary situation, the economics of providing these services at GA airports suggest that smaller airports may be providing FBO services long term. It is in this context that airports have become important participants in the FBO industry today. Figure 1-1 shows ownership patterns for FBOs by type of operator. C H A P T E R 1 Introduction

12 Airport Management Guide for Providing Aircraft Fueling Services Table 1-1 groups FBO locations by runway length. The U.S. system of public airports contains many airports with runways less than 5,000 feet. At these airports, the dominant FBO provider is the airport itself followed by independent operators who typically own one or two locations. Airports are also operating the FBO at 35% of facilities with runways longer than 5,000 feet. Examples of larger airports choosing to self-operate the FBO include Fort Wayne International Airport, Greenville-Spartanburg International Airport, San Bernardino International Airport, and Chattanooga Metropolitan Airport. 1.2 Expectations about Aviation Fuel Revenues For many airports that operate fueling facilities, expectations for aviation fuel as a reliable source of revenue are often high. However, the aviation fuel business is nuanced and net revenues to the operator depend on the delivered cost of the fuel, the cost of operating the facility, and the Source: Prepared by KRAMER aerotek based on airport FBO data provided by AC-U-KWIK®, a property of Penton Media. Types of Operator Airport-Operated 1,630 47% Independents (1 to 2 locations) 1,437 42% Small Network (3 to 5 locations) 92 3% Large Network (>5 locations) 281 8% Total FBOs 3,440 100% Independents 42% Airport-Operated 47% Small Networks 3% Large Networks 8% Number of Locations Percent Distribution Figure 1-1. FBO locations operating in the United States, August 2016. Major Runway Length % Share of Total Types of Operators ≤ 5,000 ft. > 5,000 ft. ≤ 5,000 ft. > 5,000 ft. Airport-Operated 967 663 62% 35% Independents (1 to 2 locations) 561 876 36% 46% Small Network (3 to 5 locations) 16 76 1% 4% Large Network (> 5 locations) 11 270 1% 14% Total FBOs 1,555 1,885 100% 100% Source: Prepared by KRAMER aerotek based on airport FBO data provided by AC-U-KWIK®, a property of Penton Media. Table 1-1. FBO locations in the United States by airport runway length.

Introduction 13 price that customers are actually paying for the fuel. In the course of this research, participating airports shared several common observations about fuel sales. • Fuel pricing is highly competitive. • Aviation gasoline or Avgas and jet fuel markets have different price structures and degrees of transparency. • It is important to understand the dynamics of an airport’s fuel market in order to retain and attract customers. • There is a certain nostalgia for the days when GA activity was robust and the private sector handled fueling and other aircraft services. Interviews with private FBOs and fuel suppliers for this study uncovered a few widely shared rules of thumb about ownership patterns for FBOs. • Axiom 1. A public or private FBO needs over 1 million gallons of high-margin retail fuel sales to attract a buyer. If an FBO has a history of 750,000 gallons of fuel sales and demonstrates the potential to meet the 1-million-gallon threshold, private acquisition of the FBO attracts bidders. • Axiom 2. A private FBO can operate with a mix of based and transient fuel customers if retail fuel sales range from 500,000 to 1 million gallons (Hall, 2015). • Axiom 3. Private FBOs that sell 250,000–300,000 gallons of retail fuel can remain viable with revenue contributions from line service, hangar rentals, and maintenance and part sales. • Axiom 4. Increasingly, airports are operating FBOs with less than 250,000 gallons of retail fuel sales. If an airport is considering whether to self-operate FBO services or to retain or attract a private FBO, the factors listed in Figure 1-2 are useful evaluation considerations. ACRP Synthesis 86: Airport Operator Options for the Delivery of FBO Services (2018) also provides a full discussion of these options. 1.3 Current Challenges for the Aviation Fueling Business For both airports that self-operate their fueling facilities and private FBOs, a number of factors will continue to shape the fueling business. 1.3.1 Decline in Demand for Aviation Fuel Changes in the active GA fleet in the United States has altered the fundamental demand for fuel. The active GA fleet in the United States is still dominated by single or multi-engine piston aircraft but is considerably smaller than it was in 2000. Many of these aircraft were built between Source: Prepared by KRAMER aerotek, 2018. Se rv ic es O ff er ed Line services (fuel) Facilities and hangars Aircraft maintenance and parts Charters Flight schools Aircraft management Specialized missions Retail transient Retail based tenant Commercial airline Contract customers Other discount customers Co m m un it y A dv an ta ge s Potential for growth Headquarter presence Convention center Destination and event location Co m pe ti ti on Competitors on the field Growth prospects through increased market share Good location on airport Available land for expansion Re ve nu e O pp or tu ni ti es Airport self-operates, retains all revenues Revenue sharing lease terms Fee for contract management— airport retains control M ix o f F ue l C us to m er s Figure 1-2. Evaluation considerations for providing FBO services.

14 Airport Management Guide for Providing Aircraft Fueling Services 1965 and 1980 and are edging toward retirement, flying fewer hours, or retiring out of the active fleet. Since 2000, active piston aircraft have declined by 27,875 but still represent two-thirds of the active GA fleet in 2016. As single-engine piston aircraft decline, larger and more com- plex business jets and helicopters are increasing. These aircraft consumed an estimated 1.5 bil- lion gallons of jet fuel in 2016. In contrast, Avgas sales totaled 187.8 million gallons or 11.5% of total GA aviation fuel sales.1 These newer, fuel-efficient aircraft, however, require less fuel. Figure 1-3 compares GA fuel consumption in 2005 with consumption in 2016. Total GA and Part 135 fuel consumption actually declined, and so has average gallons consumed per hour. Figure 1-3 demonstrates that both jet fuel and Avgas demand by GA and Part 135 aircraft is shrinking because of declines in the piston fleet and better fuel efficiencies. Despite the large number of remaining single-engine aircraft in the active fleet, the size of the Avgas market is extremely small relative to jet fuel and distributed across approximately 3,675 fuel service operators in the United States.2 1.3.2 Limited Supplies and High Delivered Cost for Avgas Airports that offer Avgas to its customers face limited sources of supply, high delivered costs, and stiff price competition. Avgas typically is more expensive to produce than Jet A fuel and often sells at a premium to Jet A. In North America, nine refineries (six companies) produce the low-lead fuel. Three are located in Texas; the others are in Louisiana, Minnesota, Mississippi, Montana, and California. Jet Fuel (thousand gallons) Average Rate of Jet Fuel Consumption GPH Avgas (thousand gallons) Average Rate of Avgas Consumption GPH 2005 1,507,443 176 294,870 15.7 2016 1,445,655 152 187,836 13.1 Change 2005–2016 -4% -13% -36% -17% Source: FAA. General Aviation and Part 135 Activity Survey, 2016. - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2005 2016 GA a nd P ar t 1 35 F ue l C on su m ed (t ho us an d ga llo ns ) Jet Fuel Avgas Figure 1-3. Estimated fuel consumption by GA and Part 135 aircraft. 1 FAA. General Aviation and Part 135 Activity Survey. 2016. 2 AirNav Fuel Price Report. April 11, 2018.

Introduction 15 Imperial Oil in Edmonton also refines a blend of 100LL (Avgas). These refiners have remained stable producers for a decade. Table 1-2 lists the refiners that produce Avgas. Delivery of Avgas to GA airports involves an extensive distribution network. The fuel is transported by truck or rail, but because of the long hauls to market, transportation costs add to the delivered price of Avgas. In addition, smaller airports may incur higher costs by purchasing partial loads of fuel due to low demand or small storage capacity. 1.3.3 Two Distinct Fuel Markets—Avgas and Jet A The retail markets for Avgas and Jet A operate in different ways. While there are some Avgas discounts available for based aircraft at an airport and other discounts available for weekend or high-volume purchases, the retail price for Avgas generally reflects the price paid by customers. The Jet A market is highly discounted and not particularly transparent. Flight departments negotiate contract rates with fuel suppliers or participate in discount programs offered by organizations such as the Corporate Aircraft Association (CAA). FBOs also may offer their own negotiated price or volume discounts for Jet A fuel prices. Because of the widespread negotiated rates, the retail price for Jet A is not necessarily an adequate proxy for the price paid by customers. For Jet A pricing, retail pricing listed on public websites is most relevant for FBOs that practice uniform discounting and advertise these prices. 1.3.4 Price Competition, Particularly in the Avgas Market Pilots purchasing Avgas are highly sensitive to the price of fuel and will make flight plans that take into account the final destination, weather, and fuel stops, using fuel price data readily available through websites and applications, including 100LL, AirNav, AOPA GO, Flight Aware, FlightPlan, ForeFlight, FlyQ EFB, and GlobalAir. For Jet A customers with contract or discount rates, there are subscription databases that calculate current fuel prices based on the user’s negotiated rates. While schedulers or dispatchers typically arrange discounts on Jet A in advance, the retail price of Avgas at an airport is a key factor when a pilot of a small aircraft plans a trip, and that price may influence the amount of transient traffic an airport attracts for fuel stops. There are airports that wish to be low-price leaders by offering self-service facilities and unbranded fuel. The presence of a low-price leader in an area tends to set the floor on Avgas prices, even for other airport fueling facilities with higher costs for delivered fuel and operations. Price competition is complicated because every airport fuel operator faces different delivered costs for fuel, depending on the quantities received and the price fluctuations for delivered City State Refiner Pine Bend MN Flint Hills Tyler TX Delek Billings MT ConocoPhillips Borger TX ConocoPhillips Sweeny TX ConocoPhillips Richmond CA ChevronTexaco Pascagoula MS ChevronTexaco Baton Rouge LA ExxonMobil Edmonton AB Imperial Oil Source: Avfuel Corporation, 2017. Table 1-2. U.S. and Canadian refiners producing Avgas.

16 Airport Management Guide for Providing Aircraft Fueling Services product. As an example, Figure 1-4 shows variations in the average delivered costs each month in 2015. These price variations are typical for most years. 1.3.5 Tankering Practices and Contract Rates In the Jet A market, tankering practices and negotiated contract rates with fuel suppliers tend to constrain Jet A fuel sales at smaller airports. Tankering fuel is an option for operators of long-range aircraft who want to optimize fuel costs. The decision to carry fuel versus purchasing en route is a complex calculation involving a number of factors, including: • Price of fuel at departure and destinations, • Estimated fuel burns at various weights with cost calculations and differences, • Takeoff and landing runway requirements, and • Parking and handling fees (Thurber, 2015). A number of software applications are available to make these calculations. Airport managers interviewed for this research believed that tankering practices had reduced Jet A fuel purchases by transient aircraft at their airport. Negotiated contract rates also have limited fuel revenues for some airport fuel operators. When an airport or private FBO offers contract rates to its customers, the FBO earns an “upload fee” and possibly a flowage fee on contract fuel sales to cover the cost of storing and dispensing the fuel. The fuel supplier reimburses the FBO for the delivered cost of fuel including taxes, plus the upload and flowage fees. The airport fuel provider sets the upload fees typically once or twice per year, and these rates will determine net revenues on contract fuel sales. Contract sales guarantee an airport fuel provider its upload and flowage fees, but do not allow the provider to make any additional profit on the fuel. 1.3.6 FBO Challenges Reported in Project Survey In the case studies completed for this project, GA airports were asked to identify and rank the largest challenges they face in the provision of fuel services. The six top challenges reported in order of importance were ranked as follows: Source: GlobalAir.com, January 26, 2018. $2.07 $2.56 $2.46 $2.50 $2.96 $2.55 $2.38 $2.24 $2.22 $2.14 $2.07 $1.82 $3.47 $3.94 $4.05 $4.15 $4.62 $4.48 $4.48 $4.27 $3.90 $3.68 $3.49 $3.29 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jet A Avgas Figure 1-4. National average delivered cost of Jet A and Avgas (per gallon), 2015.

Introduction 17 1. Lower fuel prices at nearby airports; 2. Declines in fuel demand; 3. Fuel price volatility and particularly, declines when a fuel operator has higher cost inventory; 4. High fuel supply delivery costs; 5. Aircraft tankering practices; and 6. Fuel revenues less than anticipated. The survey data suggests that price competition, diminished demand, and fluctuating avia- tion fuel prices at small airports with slow-moving inventory have contributed to somewhat disappointing revenue results for fueling operations. FBO operators also face a much more informed base of customers (pilots and dispatchers) that can assess the merits of tankering strategies and fueling options before they begin a trip. Fuel has long been considered the largest revenue generator for airport and private FBOs. However, many airport fuel providers have concluded that to stay financially viable, they must either sell very large quantities of fuel (over a million gallons per year) or pursue a business model that includes other services that can generate revenue such as maintenance, charters, or hangar development and rentals. 1.4 Purpose of the Management Guide To effectively address the challenges inherent in an airport fueling business is a main reason for this management guide. The provision of fuel services is ultimately a customer solution business. As the GA industry continues to evolve, more airports are likely to find themselves faced with decisions about the best and most feasible way to provide fuel to their customers. This management guide focuses explicitly on the fueling business and is intended to help airports evaluate, take action, and implement strategies to improve existing airport-operated aircraft fueling services; to take over these functions from a third-party FBO; or to initiate fueling services for the first time at the airport. Depending on the particulars of an airport’s situation, operating a fuel service can raise many questions, such as: • What fuel services will be offered by the airport? Is demand for Avgas or Jet A at the airport sufficient to warrant development, operation, and maintenance of a fueling system and storage tanks? • What are the pros and cons of a full-service versus a commercial self-service operation? • How should an airport determine an adequate capacity for fuel storage tanks? What levels of ground support and maintenance are needed? How many staff and how much training is required to achieve a safe, financially sound operation that also offers excellent customer service? • What are the initial investment requirements for a new or upgraded fueling system and storage? What funding sources and finance options are available? When it comes to purchase of fuel, how will the airport pay for fuel? • How can an airport calculate the rate of return and what costs and revenues should be included in the analysis? • What are effective retail pricing strategies when delivered costs for fuel rise or fall? How can the airport protect its fuel margins? • What are best practices for timing fuel purchases and managing fuel quality, including proper scaling of operations to keep fuel fresh? • In what ways can an airport cultivate customer loyalty and retention? • If the airport is changing its business model for fuel services, what are best practices within the organization and with customers to make a smooth transition?

18 Airport Management Guide for Providing Aircraft Fueling Services • Does the fueling facility meet all environmental requirements and is the emergency plan adequate to cover fueling services? • What fuel testing, system maintenance and calibrations/certifications are required, and how will these be met? • What permits and insurance are required to operate a fueling service? • To implement a fueling service, how does the airport effectively go about planning and designing the system; procuring and preparing the documents; soliciting and evaluating offers, awards, and contracts? • If searching for a fuel supplier, what should be included in the solicitation? The fuel business is by its very nature a multidisciplined venture, requiring working knowledge about fueling systems, wholesale and retail trade, marketing, customer service, environmental controls, emergency procedures, accounting, and performance monitoring. The chapters that follow address critical business and management decisions that go into planning and running an airport fueling operation. 1.5 Navigating the Management Guide The management guide is organized by topic so readers can delve into areas of interest and download relevant worksheets and checklists. Figure 1-5 presents the overall organization of the document. Source: KRAMER aerotek, 2018. Overview Introduction Aviation Fuel Primer Airport Fueling Systems Evaluating Airport Fuel Services Airport Self- Check Customers & Competitors Clarifying the Airport Brand Forecasts, Proposed Improvements, Estimated Costs, & Funding Sources Evaluation of Feasibility Implementation Plan System Design Operating Decisions Operating the Fuel Facility Managing Inventory, Ordering Fuel, and Setting Prices Implementation Tools Tools to Measure Progress Fuel Supplier RFP and Evaluation of Bids Action Checklists Additional Resources Case Studies Worksheets References Annotated Bibliography Definitions & Acronyms Figure 1-5. Organization of the management guide.

Introduction 19 1.6 References FAA. AC 150/5190-7—Minimum Standards for Commercial Aeronautical Activities. Washington, D.C. August 28, 2006. Available: https://www.faa.gov/airports/resources/advisory-circulars/index.cfm/go/ document.current/documentNumber/150-5190-7. FAA. General Aviation and Part 135 Activity Survey. 2016a. FAA. Report to Congress: National Plan of Integrated Airport Systems (NPIAS), 2017-2021. Washington, D.C. September 30, 2016b. Hall, B. FBO M&A Market Activity and Valuation. BlackArch Partners, NBAA Business Aviation Convention and Exhibition, Las Vegas, Nevada. November 18, 2015. Kramer, L. S., Daniel, J. P., Moore, M., et al. ACRP Synthesis 86: Airport Operator Options for Delivery of FBO Services. Transportation Research Board, Washington, D.C. 2018. Rose, M. FBO Market Analysis and Trends. AvBuyer. February 12, 2016. Available: https://www.avbuyer.com/ articles/jet-maintenance/fbo-market-analysis-and-trends-69601. Thurber, M. Tankering Benefits Tangible and Achievable. AINonline.com, October 12, 2015. Available: https://www. ainonline.com/aviation-news/business-aviation/2015-10-12/tankering-benefits-tangible-and-achievable.

20 2.1 Upstream, Midstream, and Downstream Functions 2.2 Crude Oil and Refined Product Basics 2.3 Production and Distribution of Aviation Fuels 2.4 Consumption of Aviation Fuels 2.5 Pricing of Avgas and Jet Fuel 2.6 Managing Volatility in Aviation Fuel Prices 2.7 References Chapters 2 and 3 of this management guide are foundational and present background infor- mation about the petroleum products industry as it pertains to an airport’s fueling business. Chapter 2 focuses on the extraction, refining, and distribution of aviation fuels to airports. Chapter 3 presents an overview of airport fuel systems once the fuel is delivered to an airport and the local fuel operator takes custody of the delivery. 2.1 Upstream, Midstream, and Downstream Functions The scope of the petroleum industry can be described in three segments. Upstream companies explore for crude oil, locate reserves, drill the wells, and extract the oil and gas. Both integrated oil companies or specialized exploration and drilling companies are engaged in upstream activity. ExxonMobil or Chevron are examples of integrated oil compa- nies that handle many aspects of exploration, development, and production of crude oil and its products. Halliburton or Schlumberger are examples of specialized oil field companies that concentrate on upstream functions. The midstream industry is the transportation link between petroleum-producing areas and cities where airports and consumers are located. Midstream companies like TransCanada or Plains All American are among the transmission companies that operate as midstream companies. The downstream industry includes oil refineries, petrochemical plants, petroleum product distributors, and retail outlets. The downstream industry is large and complex because com- panies will specialize in one or multiple aspects of product production and distribution. For example, Phillips 66 operates refineries, transportation, and retail outlets. Figure 2-1 illustrates the upstream, midstream, and downstream industries. C H A P T E R 2 Overview of the Aviation Fuel Industry

Overview of the Aviation Fuel Industry 21 2.2 Crude Oil and Refined Product Basics Crude oil is considered a fossil fuel because it is a mixture of hydrocarbons that formed millions of years ago from plants, animals, and microorganisms. As these organisms decompose, they are covered by soil, sand, sediments, or rock that gradually compress the organic matter. Slowly, they are pushed further below the earth’s surface, and as they go deeper, the organic matter is subjected to increasingly higher temperatures. The combination of compression and high temperatures cause the carbon bonds in the organic matter to break down and produce natural gas, crude oil, and coal.1 Source: KRAMER aerotek, 2018. Upstream Exploration and Production Retail Downstream Refining Midstream Distribution Terminal Hub Location Delivery to the Airport Figure 2-1. Upstream, midstream, and downstream components of aviation fuel processing. 1 https://www.nationalgeographic.org/encyclopedia/natural-gas/.

22 Airport Management Guide for Providing Aircraft Fueling Services Crude oil exists in liquid form in underground pools or reservoirs, in tiny spaces within sedi- mentary rocks, and near the surface in tar oil sands. Extraction of crude oil involves different degrees of difficulty, depending on where reserves are located and the cost to extract it. Upstream companies often wait until the price of crude oil is high enough to justify the costs of extraction. In 2016, 31 states in the United States and offshore in the Gulf of Mexico had active oil wells. That said, extraction was concentrated with 65% of domestic production coming from five states: • Texas—36% • North Dakota—12% • California—6% • Alaska—6% • Oklahoma—5% Another 18% was extracted from offshore oil wells in the Gulf of Mexico. Approximately 47% of crude oil was imported from other countries in 2016.2 The industry classifies crude oil in terms of its geographic source, its physical characteristics, and chemical composition. For example, West Texas Intermediate and Louisiana Light Sweet are named for their respective sources and characteristics. Crude oil that is considered sweet is low in the amount of sulfur, while sour crude has a high sulfur content and is considered less desirable in terms of product quality and required processing. The industry also classifies crude oil as light or heavy. This is a characteristic of the oil’s relative density as compared to water and is based on the American Petroleum Institute (API) gravity index. If an oil’s API index is greater than 10, it is lighter than water and will float on it. If the index is less than 10, the oil will sink in water.3 Light crude requires less processing and can produce high-value products such as jet fuel and gasoline with simple distillation. Heavy crude, also known as tar sands, is difficult to transport and requires more processing and a greater cost to produce high-value products. 2.2.1 Refining Crude Oil After crude oil is extracted from the ground or underneath the sea, it is shipped by a mid- stream company to a refinery by pipeline, rail, or oil barge, where it is separated into useable petroleum products. Refineries are large, sprawling industrial facilities that operate every day on a 24-hour basis. Refineries can be the size of several hundred football fields and often function as multimodal transportation centers for crude oil brought in and petroleum products transported out (see Figure 2-2). The refining process breaks down the crude oil into different components or fractions using three basic steps: 1. Separation 2. Conversion and Combination 3. Treatment In the first step, separation, crude oil is pumped into and heated in a distillation tower. The temperature gradient is critical in the distillation process. The crude oil is heated at the bottom of the distillation tower to 680°F. As the crude oil heats up, liquids and vapors are separated into fractions according to their weights and boiling point (see Figure 2-3). Light fractions rise in the distillation tower, where the temperature is 212°F. Some of the vapors at the top of the tower cool 2 https://www.eia.gov/energyexplained/index.cfm?page=oil_where. 3 https://www.thebalance.com/the-basics-of-crude-oil-classification-1182570.

Overview of the Aviation Fuel Industry 23 Source: Walter Siegmund, January 2008. Figure 2-2. Andeavor Anacortes Refinery. Source: Valero, St. Charles Refinery Tour, April 6, 2008. Figure 2-3. Basic refining distillation.

24 Airport Management Guide for Providing Aircraft Fueling Services down and liquefy. Heavier fractions remain on the bottom.4 Medium-weight fractions stay in the middle of the tower. This is where kerosene is separated out to make jet fuel. After separation, because there are still too many heavy hydrocarbon molecules left in the distillation tower to meet the demand for lighter products, such as gasoline or jet fuel, the remaining heavy molecules are subjected to additional catalytic cracking to produce greater quantities of lighter products. This conversion process takes place when the molecules are heated to 932°F with a catalyst to speed up the chemical reaction. Catalytic cracking can convert 75% of the heavy products into gas, gasoline, and diesel. There are other conversion methods to improve yield such as adding hydrogen (hydrocracking). Another conversion technique is the Delayed Coking Unit (Coker), which subjects lower-value residuum to intense heat for prolonged periods of time. The more intense the conversion process, the higher the cost, so refiners are always seeking a balance between cost and higher-value products.5 Some refiners that specialize in transportation fuels will combine some already cracked molecules that are lighter than gasoline to increase yields of higher-demand products. Alkylation, for example, makes gasoline by combining some of the refinery gaseous byproducts of cracking. The final steps of refining include treatment and removal of impurities. While the distillation process is effective to separate out the components of crude oil, additional treatment is needed to remove sulfur, nitrogen, and other impurities. Products are fine-tuned to control for sulfur content, octane levels, and vapor pressure ratings and to meet industry standards. Making jet fuel follows these steps including final treatment and removal of sulfur content. The refiner would continuously check that the jet fuel meets the ASTM D-1655 standard. To make Avgas is more involved and expensive. Refiners use the alkylation process to redistill the product so that it meets the standard specifications for aviation gasoline (ASTM D-910). The Avgas is then pumped into a separate tank where 2.0 grams per gallon of tetraethyl lead (TEL) are added. These tanks, because of the lead, involve dedicated equipment for making Avgas. The TEL, injection equipment, and safety protocols each add to a higher cost for producing Avgas.6 Crude oil coming into the refinery and outgoing petroleum products are stored in large tanks near the refinery. The outgoing product storage tanks are connected to the terminal or distribution rack.7 Here, the product enters pipelines, rail cars, barges, and fueling trucks for distribution. Most Jet A sent to airports travels the long distance by pipeline to a regional distribution center. Final delivery to smaller airports can be completed by truck. Some large air carrier airports have pipelines that go directly from a nearby refinery or distribution center to the airport’s fuel farm. Avgas, because distribution is highly dispersed and quantities are relatively small, most often is shipped by rail, barge, or a high-volume fuel transport truck to a regional distribution center and then delivered by a smaller fuel truck, which typically holds 8,500 gallons, to airports. 2.2.2 Products from Crude Oil Refineries convert crude oil into many different products; however, most refineries concentrate on transportation fuels, primarily gasoline, because it is a product with high demand. The actual mix of products produced at a given refinery will vary based on demand and inventories. 4 https://www.eia.gov/energyexplained/index.cfm?page=oil_refining#tab2. 5 https://www.planete-energies.com/en/medias/close/three-stages-refining. 6 https://generalaviationnews.com/2012/10/14/why-does-100ll-cost-so-much/. 7 This is the wholesale loading rack.

Overview of the Aviation Fuel Industry 25 Figure 2-4 shows the different products made from a barrel of crude oil.8 Jet fuel represents approximately 10% of a barrel of crude oil, while Avgas represents 0.1%. The difference in the size of these fuel markets is dramatic. In 2016, U.S. refiners produced 25.4 billion gallons of jet fuel and 170.4 million gallons of Avgas. As of January 1, 2017, there were 141 refineries operating in the United States. Only eight refineries in the United States and one in Canada make finished Avgas. As shown in Table 2-1, refineries producing Avgas are heavily concentrated in the southern states, although Avgas is also blended in Minnesota, Montana, and California. The significant component of this fuel type, TEL, comes from a single source in Great Britain. 2.2.3 Avgas and Jet A Production Trends Figure 2-5 shows the history of net refinery production of Jet A and Avgas from 2005 to 2016. Since a low point in 2009 following the Great Recession, production of Jet A has increased 18% Source: U.S. Energy Information Administration via Airlines for America, December 2017. Figure 2-4. Products made from a barrel of crude oil in the United States, 2016. 8 A 42-gallon barrel of crude oil yields about 45 gallons of petroleum products because of refinery processing gain, treatment, and additives (U.S. Energy Information Administration). City State Refiner Pine Bend MN Flint Hills Tyler TX Delek Billings MT ConocoPhillips Borger TX ConocoPhillips Sweeny TX ConocoPhillips Richmond CA ChevronTexaco Pascagoula MS ChevronTexaco Baton Rouge LA ExxonMobil Edmonton AB Imperial Oil Source: Avfuel Corporation, 2017. Table 2-1. North American refiners making Avgas.

26 Airport Management Guide for Providing Aircraft Fueling Services Source: U.S. Energy Information Administration, Refinery Net Production, https://www.eia.gov/dnav/pet/PET_PNP_REFP2_DC_NUS_MBBL_A.htm. - 50,000 100,000 150,000 200,000 250,000 300,000 19,000,000 20,000,000 21,000,000 22,000,000 23,000,000 24,000,000 25,000,000 26,000,000 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 A vg as (t ho us an d ga llo ns ) Je t Fu el (t ho us an d ga llo ns ) Aviation Gasoline Kerosene-Type Jet Fuel Figure 2-5. U.S. refinery net production of Avgas and Jet A fuels, 2005–2016. and in 2016, production at 25.4 billion gallons is now higher than pre-recession levels. The same is not true for Avgas, which has declined 19% since 2009. That said, production of Avgas has leveled off somewhat since 2013, averaging around 176 million gallons per year. 2.3 Production and Distribution of Aviation Fuels The movement of crude oil and finished petroleum products is tracked by the Petroleum Administration for Defense Districts (PADDs). A holdover from World War II, PADDs were aggregates of states that were used to ration gasoline. There are five PADDs in the continental United States and seven altogether encompassing Hawaii, Alaska, and U.S. territories. Figure 2-6 shows the PADDs areas 1 to 5. In 2016, two-thirds of Avgas was produced in PADD 3—Gulf Coast, while none was produced on the East Coast from Florida to Maine. PADD 3 production of Avgas supplied all of the East Coast demand and a little less than half of the Avgas demand in the Midwest. The West Coast and Rocky Mountain PADDs were self-sufficient with respect to Avgas production. PADD 3 was also dominant in production of jet fuel with 52% of jet fuel product in 2016. Half (52.4%) of this jet fuel was transported to the East Coast, 5% to the Midwest, and a small fraction to the West Coast. Midwest refineries supplied about 9% of Rocky Mountain’s demand for jet fuel and approximately 8% of jet fuel moved from the East Coast to the Midwest. Table 2-2 summarizes production of Avgas and jet fuel in 2016 by PADD. With the exception of PADD 1, the majority of jet fuels are refined in the PADDs where they are used. Because the volume of Avgas produced is so low, this is not always true for this fuel type, particularly for East Coast states and some Midwest states that receive Avgas from the Gulf Coast. Many large airports have jet fuel pipelines that go directly from nearby fuel farms directly to on-airport storage. Likewise, Avgas is trucked in large tankers to a regional distributor who delivers fuel loads to airports. The actual company that transports the fuel can be a major oil company, a fuel distributor, or an independent trucking company.

Overview of the Aviation Fuel Industry 27 2.4 Consumption of Aviation Fuels Figures 2-7 and 2-8 show fuel consumption by air carriers and general aviation aircraft. Since 2005, domestic consumption of jet fuel by U.S. air carriers is down 5%. Consumption of jet fuel for international flights is up 18%. On the general aviation side, the fuel markets are much smaller, but the GA jet fuel market has declined 4% and Avgas consumption is down 29%. Many factors contribute to these changes in consumption patterns. In the last 15 to 20 years, aircraft have become more energy efficient. On the commercial side, newer fuel-efficient aircraft have entered the fleet. In addition, the airlines have employed better capacity and logistics management systems to place the right size aircraft on a particular route, fill most of the seats, and chart a route that maximizes fuel efficiency. The 10% drop in domestic fuel consumption has occurred in spite of an increase in enplanements of 17% since 2000 (710 million to 829 million).9 On the general aviation side, the entry of a new generation of business jets account for a doubling of jet fuel consumption by this group of aircraft, even with use of advanced logistics Source: U.S. Energy Information Administration. https://www.eia.gov/todayinenergy/detail.php?id=4890. Figure 2-6. Petroleum administration for defense districts. Annual (thousand gallons) Avgas Jet Fuel - 1,349,544 3,792,810 13,082,790 506,772 PADD 1 PADD 2 PADD 3 PADD 4 PADD 5 25,662 28,770 114,576 2,352 6,621,552 Source: U.S. Energy Information Administration. https://www.eia.gov/dnav/pet/pet_pnp_refp2_a_eppv_ypy_mbbl_a.htm. Table 2-2. Avgas and Jet A refinery net production in PADDs 1 to 5, 2016. 9 Passenger Boarding (Enplanement) and All-Cargo Data for U.S. Airports, CY 2000 and CY 2016, https://www.faa.gov/ airports/planning_capacity/passenger_allcargo_stats/passenger/.

28 Airport Management Guide for Providing Aircraft Fueling Services Source: U.S. DOT Form 41, via FAA Aerospace Forecasts. - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E U .S . A ir C ar ri er F ue l C on su m pti on (m ill io n ga llo ns ) Domestic International Figure 2-7. Total jet fuel consumption by U.S. air carriers. Source: FAA APO estimates, via FAA Aerospace Forecasts. - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E G en er al A vi ati on F ue l Co ns um pti on (m ill io n ga llo ns ) Avgas GA Jet Fuel Figure 2-8. Total Avgas and jet fuel consumption by GA aircraft. planning to maximize fuel burn. Conversely, retirement of older piston aircraft or fewer hours of flying for these aircraft are reflected in the drop in Avgas consumption. 2.5 Pricing of Avgas and Jet Fuel Air carriers, flight departments, individual aircraft owners, fuel distributors, and airport fuel operators pay different prices for aviation fuel. Many factors go into a fuel price, including the cost of the following: • Crude oil feedstock; • Refining processes; • Additives (such as TEL); • Inventory levels;

Overview of the Aviation Fuel Industry 29 • Transportation costs; • Fluctuations in seasonal and regional demand; • Environmental regulations; • Federal, state, and local taxes and fees; and • Supply disruptions caused by natural disasters and conflicts. All of these factors combine to produce different prices depending on the geographic location of the buyer and where the buyer is in the aviation fuel supply chain. 2.5.1 Fuel Price by Location Proximity of the refinery to the crude oil feedstock and proximity to the customers also influences price as transportation of crude oil and petroleum products is an important cost component. Figure 2-9 shows the average spot prices of U.S. jet fuel by region, 2012–2016. The Gulf Coast, because it produces more jet fuel than is required, has lower average prices; other areas such as the West Coast, Florida, and the Northeast experience higher prices because they are importing fuel from the Gulf Coast or from international markets (Airlines for America, 2017). Regional differences are also present in the Avgas market where limited refinery produc- tion and processing locations increase transportation costs to deliver Avgas to a geographi- cally diverse group of small airports. Figure 2-10 compares average retail prices for Avgas for full-service and self-service by FAA region. Again, the lowest retail prices are in the Southwest (Arkansas, Louisiana, New Mexico, Oklahoma, and Texas) and the Central regions (Iowa, Kansas, Missouri, and Nebraska). There is also a spread of 50 to 80 cents per gallon difference between full-service and self-service with the largest spread in the Southern, Southwest, and Western Pacific regions. 2.5.2 Fuel Price by Supply Chain The price of aviation fuel also varies by where in the supply chain, fuel is purchased, as illustrated in Figure 2-11. At each point in the supply chain, a different range of prices is offered. These different prices are explained below. Source: Argus Media, via Airlines for America, 2017. $2.92 $2.97 $2.98 $3.05 Gulf Coast Los Angeles New York Harbor Chicago Figure 2-9. Average spot price per gallon of U.S. jet fuel by region, 2012–2016.

30 Airport Management Guide for Providing Aircraft Fueling Services Wholesale Price by Refiner The wholesale price is the rack sales price charged by the refiner. This is the price charged to fuel distributors who purchase fuel at a supplier’s terminal and provide their own transportation for the product. Delivered Cost Delivered cost is the cost of fuel, including the invoice price of fuel, transportation charges, taxes, commissions, insurance, and expenses associated with leased or owned equipment used to transport the fuel. When a fuel supplier issues weekly pricing sheets for Avgas or jet fuel, the prices quoted are delivered costs. If an airport is receiving a partial load, there is an additional fee for the split load delivery. Which airport pays the fee often depends on how the split load is negotiated. Usually the airport originating the order pays the fee, but sometimes it is divided among airports receiving partial loads. Retail Price The retail price offered for fuel is set by the airport fuel provider and takes into account the delivered cost of fuel, the cost to provide the fuel service at the airport, and a profit margin. Discounts off Retail Price Discounts typically are offered on volume purchases or other criteria such as discounts for based tenants, membership in discount clubs (e.g., CAA or AirBoss), fuel purchases made using 5.48 5.47 5.08 5.03 4.81 4.96 5.29 5.53 6.92 4.80 4.85 4.29 4.51 4.40 4.16 4.79 4.77 6.48 New England Eastern Southern Great Lakes Central Southwest Northwest Mountain Western Pacific Alaska Full Service Self Service Source: Globalair.com, January 26, 2018. Figure 2-10. Average retail price per gallon of Avgas by FAA region, January 2018. Source: Prepared by KRAMER aerotek, 2018. Aviation Fuel Customers Airport or Private FBO Reseller Fuel Distributor Petroleum Product Storage and Terminal Figure 2-11. Aviation fuel supply chain.

Overview of the Aviation Fuel Industry 31 specific credit cards that are offering promotions, frequent buyer awards, weekend specials, or advanced purchase cards for fuel bought at a specific airport or network of FBOs. Self-Service Discounts Airport fuel providers that offer a self-service product will set the self-service price, usually 50 to 80 cents below the full-service product. Contract Price Some corporate flight departments will enter into a contract with a fuel supplier that specifies a delivery price for fuel determined when a contract is signed. It can be a fixed price or a base price escalated according to a given formula. The contract price is negotiated between the fuel distributor and the customer. Airport fuel operators and FBOs do not see this price. When a contract purchase is made, the airport fuel operator is reimbursed for the delivered cost of fuel and receives a set upload fee (per gallon) negotiated between the fuel distributor and the airport. In addition, some airports also charge a fuel flowage fee per gallon pumped. Contract pricing is negotiated for jet fuel purchases, not Avgas purchases. Discounts to retail posted prices are widespread in the jet fuel market, and much less so in the low-volume Avgas market. It is incumbent upon the airport fuel operator to evaluate each month’s fuel revenues against gallons sold to determine actual average sales prices of Avgas and jet fuel sold at the airport. 2.6 Managing Volatility in Aviation Fuel Prices A challenge for both airlines and airport fuel operators is the fact that the aviation fuel market is inherently volatile, as Figure 2-12 demonstrates. For airports, volatility is important because changes in the price of aviation fuel translate into higher or lower costs to purchase new fuel supplies. Table 2-3 examines an 8-week period Source: U.S. Energy Information Administration. https://www.eia.gov/dnav/pet/ pet_pri_refoth_dcu_nus_m.htm. $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 19 83 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 D ol la rs p er G al lo n Jet Fuel Avgas Figure 2-12. Jet and Avgas fuel wholesale/resale price by refiners (nominal dollars10 per gallon). 10 Nominal dollars refers to the current value of the dollar when reported. There is no adjustment for inflation.

32 Airport Management Guide for Providing Aircraft Fueling Services of spot prices for jet fuel. For example, assume a local fuel operator receives deliveries of 7,500 gallons. If the operator purchased a delivery at prices available in week 7, the operator would pay an additional $1,335 over prices available in week 2. Table 2-3 underscores the utility of paying attention to short-term price trends. There are important factors that contribute to volatility in crude oil and petroleum product prices. In 2016, U.S. refineries imported 7.9 million barrels per day of crude oil representing 47% of crude oil inputs.11 As Figure 2-13 shows, imports came from Canada, Saudi Arabia, Venezuela, Week Wholesale Price Cost Difference from Week 2 1 $1.78 $13,365 $105 2 $1.77 $13,260 0 3 $1.80 $13,508 $248 4 $1.82 $13,613 $353 5 $1.89 $14,183 $923 6 $1.92 $14,423 $1,163 7 $1.95 $14,595 $1,335 8 $1.93 $14,460 $1,200 Source: Prepared by KRAMER aerotek based on spot jet fuel prices reported by the U.S. Energy Information Administration for the period December 1, 2017, through January 19, 2018. https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=eer_epjk_pf4_rgc_dpg&f=w. Table 2-3. Short-term changes in spot fuel prices. Canada, 3,227, 41% Saudi Arabia, 1,099, 14% Venezuela, 741, 9% Mexico, 582, 7% Iraq, 419, 5% Colombia, 442, 6% Ecuador, 237, 3% Kuwait, 209, 3% Nigeria, 207, 3% Brazil, 145, 2% Other, 542, 7% Source: U.S. Energy Information Administration, U.S. Imports by Country of Origin. https://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_epc0_im0_mbblpd_a.htm. Figure 2-13. Crude oil imports by country (thousand barrels per day), 2016. 11 The U.S. also exported 5.9 million barrels per day of crude, 61% going to Canada. https://www.eia.gov/dnav/pet/pet_sum_ snd_d_nus_mbblpd_a_cur.htm.

Overview of the Aviation Fuel Industry 33 Mexico, Iraq, Colombia, and other countries. While imports are considerable, they are actually down from 2011, when crude oil imports were 61% of refinery inputs (Levine et al., 2015). Crude oil and downstream petroleum products are thus dependent on worldwide supply and demand conditions, competition, and disruptions. The financial crisis and widespread recession in 2008 resulted in worldwide reductions in consumption. These declines coincided with the increased production of crude oil by the Organization of Petroleum Exporting Countries (OPEC), both factors contributing to a price collapse in the second half of 2008. Economic recovery in 2010–2012 resulted in growing oil demand, especially in Asia Pacific countries. Political instability in Libya and other North African countries during the Arab Spring, sanctions imposed on Iran, and declining production in oil fields in Norway and the United Kingdom resulted in short supplies as demand was increasing, and then came higher prices. The inter- national market responded with increased supplies. In October 2015, prices collapsed because of oversupply of crude, a strong dollar, lack of agreement among OPEC countries to reduce pro- duction, and declining demand because of weakened economies in Europe and some developing countries. Also at this time, a preliminary framework was agreed upon for the Iran Nuclear Deal, and if sanctions against Iran were lifted, financial investors feared an oversupply of oil when Iran returned to the world market. These international events underscore the fact that aviation fuel prices in the United States are and will continue to be affected by the international market sentiment and worldwide supply considerations. Some air carriers and airports pursue strategies to manage risk that comes from fuel price volatility. For airport fuel operators, the risks include purchasing fuel at a high price and holding the inventory during a price drop. Of course, if the price rises and the airport holds lower-cost inventory, there is no problem. But since aviation fuel prices can be highly competitive, a fuel operator must manage margins carefully. For commercial airlines, the cost of fuel can represent 25% to 30% of operating expenses. Some rising fuel prices can be incorporated into passenger air fares, but not always. To manage price volatility, the following strategies are used by airports and air carriers: • For airports – Time fuel purchases to take advantage of price fluctuations. – Manage inventories to refresh fuel 4 to 6 times per year to smooth out price fluctuations. – Set fuel prices to remain competitive and cover direct and indirect operating costs. • For air carriers – Actively manage fuel costs with futures contracts, swaps, and options. – Source fuel directly from refiners to mitigate the risk of supply disruptions and take title to the fuel at the refinery gate and ship it to where it is needed (Airlines for America, 2017). – Control the “crack spread” between prices of crude and refined products by buying a refinery and producing jet fuel for the company and other buyers. (Delta Air Lines is the only air carrier to have purchased a refinery.) Each of these strategies require knowledge of both the physical and financial markets for crude oil and aviation fuels. For the management guide, the focus is on airport strategies to manage fluctuations in fuel prices. Futures hedging, in particular, is quite technical. A few terms are key to understanding fuel prices. Spot price is used to describe transactions that involve the purchase or sale of a commodity such as crude oil or aviation fuels for near-term delivery, usually within 30 days. A contract signed in March is for delivery in April. A spot transaction does not imply a continuing arrange- ment between the buyer and the seller. Spot markets are often referred to as physical markets, since they involve the actual buying and selling of a commodity and accurately reflect the current

34 Airport Management Guide for Providing Aircraft Fueling Services price at a particular location. There are spot markets around the world that serve as pricing benchmarks. For example, Cushing, Oklahoma, located where several pipelines connect, is an important spot market for West Texas Intermediate crude oil. There is another spot market for Brent Blend, a sweet crude oil that is found in the North Sea near Norway and the United Kingdom. There is also a spot market for jet fuel referred to as Gulf Coast Jet Fuel. Spot prices are widely available for crude oil, gasoline, no. 2 heating oil, ultra-low-sulfur no. 2 diesel fuel, jet fuel, and propane. The U.S. Energy Information Administration maintains a database of spot prices. This data provides excellent benchmarks for current prices of crude oil and petroleum products. A hedge is an investment to reduce the risk of adverse price movements in an asset, in this case aviation fuels. A hedge consists of covering an anticipated purchase of fuel by taking an offsetting position through a futures contract, swap, or option. Large consumers of fuel such as airlines and trucking companies can employ hedging strategies to reduce the risk of unexpected price increases in fuel. Airport fuel operators do not typically hedge, but they can view the futures market for crude oil or jet fuel to get a sense of the direction of future fuel prices. The most direct way to do this is to look at futures contracts or swaps. A futures contract is a binding legal agreement between a buyer and a seller for the delivery of a particular quantity of a commodity at a specific time, place, and price. Unlike the spot price, which is tied to a physical delivery, a futures contract is a financial investment tool. Futures contracts are traded on regulated exchanges such as the NYMEX12 and settled daily based on their current value in the marketplace. Most often, futures contracts are liquidated or cancelled out prior to delivery and rarely end with the actual physical delivery of a commodity (Levine et al., 2015). For an airport fueling operator, the price of a future contract for jet fuel or crude oil may be an indication of pricing trends (up or down). Fuel swaps are contracts in which one party exchanges their exposure to a floating fuel price for a fixed price, over a specified period of time. The floating price would reference a spot price for crude (such as WTI) or jet fuel (as published daily by Argus or Platts), or a government index such as those published by the U.S. Energy Information Administration. Swaps settle based on an average price over the course of a month, as opposed to a futures contract that expires on a specific day. Swaps tend to be preferred by some airlines because the swaps take into account average monthly prices in contrast to a futures contract that expires on a specific day (Mercatus Energy Pipeline, 2016). Each of these physical and financial markets provides a lot of information to airport fuel operators about current prices for crude oil and aviation fuels and expected trends in fuel prices. Among the useful resources are: • Weekly price sheets from fuel suppliers sent to airport fueling managers that list the delivered cost of Avgas and Jet A. If an airport fuel manager enters pricing information into a spread- sheet of each week’s pricing, this is an excellent way to maintain a history of local price trends. • Websites such as 100LL or AirNav will list current prices at competing airports. • The U.S. Energy Information Administration posts daily, weekly, and monthly spot prices for crude oil and jet fuel at https://www.eia.gov/dnav/pet/pet_pri_spt_s1_d.htm. • Current prices are also available by private subscription services such as Argus Media, FuelerLinx, and GlobalAir. • For futures prices, the CME Group publishes jet fuel futures in the public domain at http:// www.cmegroup.com/trading/energy/refined-products/gulf-coast-jet-fuel-platts-calendar- swap.html. 12 The New York Mercantile Exchange is the world’s largest physical commodity futures exchange. Trading is conducted through two divisions: the NYMEX Division, which is home to the energy, platinum, and palladium markets; and the COMEX Division, where metals like gold, silver, and copper and the FTSE 100 index options are traded.

Overview of the Aviation Fuel Industry 35 Current and future fuel prices are important considerations when an airport fuel operator sets a price. Chapter 5 provides a discussion about how to identify an airport’s competitors and keep track of fuel prices at airports that directly compete. Chapter 8 describes how to estimate operating expenses associated with a fueling operation, and Chapter 11 brings together this information to set fuel prices and reasonable margins. 2.7 References Airlines for America. Jet Fuel: From Well to Wing. Washington, D.C. 2017. Avfuel Corporation. Logistics of Aviation Fuel. Presentation Update. December 5, 2017. Davidson, C., Newe, E., Schwab, A., et al. An Overview of Aviation Fuel Markets for Biofuels Stakeholders. National Renewable Energy Laboratory, Technical Report NREL/TP-6A20-60254. Golden, Colorado. 2014. FAA. FAA Aerospace Forecasts Fiscal Years 2017–2037. Washington, D.C. 2017. Gosai, H. Fuel Hedging in the Airline Industry, Part Two. Airline Geeks. 2017. Available: https://airlinegeeks. com/2017/09/18/part-two-fuel-hedging-in-the-airline-industry/. Levine, S., Taylor, G., Arthur, D., et al. Understanding Crude Oil and Product Markets. Brattle Group/American Petroleum Institute, Washington, D.C. 2015. Available: http://www.api.org/oil-and-natural-gas/energy- primers/crude-oil-and-product-markets. Mercatus Energy Advisors. The State of Airline Fuel Hedging and Risk Management in 2013. Houston, Texas. 2013. Mercatus Energy Pipeline. An Introduction to Fuel Hedging. Houston, Texas. 2016. Available: http://www.mercatus energy.com/hs-fs/hub/80554/file-15737031-pdf/docs/an-introduction-to-fuel-hedging.pdf. U.S. Energy Information Administration. Energy Explained. 2017. Available: https://www.eia.gov/energyexplained/ index.cfm?page=oil_home. Visser, B. “Why Does 100LL Cost so Much?” General Aviation News. October 14, 2012. Available: https://general aviationnews.com/2012/10/14/why-does-100ll-cost-so-much/.

36 3.1 Uses of Aviation Fuel 3.2 Fuel Delivery to Aircraft 3.3 Prefabricated Self-Service Units 3.4 Components of a Full-Service Fueling System 3.5 Safety and Environmental Considerations 3.6 Summary of Federal and State Regulations, Codes, and Standards 3.7 References Chapter 2 provided an overview of the production and distribution of aviation fuels to airports. Chapter 3 takes a closer look at the storage and dispensing of fuel on an airport, the regulatory environment, and maintenance of fueling operations. ACRP Synthesis 63: Overview of Airport Fueling System Operations (2015) offers additional in-depth discussion of airport fueling operations. 3.1 Uses of Aviation Fuel An airport typically handles two types of aviation fuel—jet fuel and Avgas. Sometimes airports will also sell automotive gasoline or Mogas, but this is less common. Other fuels, such as a no-lead alternative for Avgas and biomass-based jet fuel are in experimental testing and not available yet for regular aircraft use. Turbojet, turbofan, and turboprop turbine engines require jet fuel. This fuel is available in several grades, defined by different amounts of additives. Jet A and Jet A-1 are two common grades of jet fuel used for aircraft operation worldwide. The primary difference between the two fuels is the freezing temperature specification, which is the point at which water trapped in the fuel will freeze. Jet A is more common in the United States and has a higher freezing point than Jet A-1. Piston-engine aircraft use Avgas. The most common Avgas grade is 100 octane low lead (100LL). A small number of airports offer higher-leaded content grades such as 100/130. Avgas contains levels of lead that require special handling and storage to avoid contamination of tanks or equipment that are not designed for leaded fuel or lead emissions. There is also growing popularity of unleaded aviation fuels such as non-ethanol Mogas and UL91. Only a few GA airports1 offer Mogas fuel, but currently demand is relatively low, and this C H A P T E R 3 Airport Fueling Systems 1 http://www.flyunleaded.com/mapusairports.html.

Airport Fueling Systems 37 fuel, like Avgas, requires separate tanks and equipment. Some aircraft owners that use Mogas will purchase fuel at regular gas stations and self-fuel their aircraft. 3.2 Fuel Delivery to Aircraft Systems for storing and dispensing different types of aviation fuels are physically segregated for receiving, storing, and issuing to avoid cross-contamination or misfueling. Figure 3-1 shows typical fuel dispensing systems at an airport. The factors affecting an airport’s selection of systems for dispensing fuel are influenced by the airport size, types of aircraft being served, customer preferences for service, and inherent logistics of the airport layout. Self-service fueling is typical for small GA airports with experienced clientele or repeat customers who prefer to dispense their own fuel. Assisted-service fueling is an extension of a self-service arrangement where airport staff or an independent service company provide dispensing service from a self-service fueling system. Full-service fueling systems typically dispense fuel from either a refueler tanker truck directly into the aircraft or via an in-ground hydrant fueling system. An FBO is usually the primary provider of full-service fueling. The FBO can be either an airport, a private entity, or a contract manager. 3.3 Prefabricated Self-Service Units The self-service fueling experience is similar to a gas station for automobiles. It is more common for self-service units to provide Avgas fuel, but jet fuel self-service is sometimes available at low-volume airports. The benefits of self-service fueling include: • 24 hour/7 days per week availability; • Web-based monitoring of fuel operations; • Minimal personnel and truck usage; • Pre-engineered and prefabricated systems to reduce engineering, site preparation, and instal- lation costs; and • Potential for strong cash flow (Misegades, 2012). Note: SS = self-service. Source: Prepared by KRAMER aerotek, 2018. Fuel Dispensing Systems Self-Service Fuel farm pipeline to SS station Pre-fabricated unit - storage tank & SS station Assisted- Service Dispense from SS fueling system Full-Service Deliver fuel to aircraft via refueling truck or in-ground hydrant fueling system Figure 3-1. Aviation fuel dispensing systems.

38 Airport Management Guide for Providing Aircraft Fueling Services Costs for small prefabricated systems could start at approximately $50,000 to $100,000, and depending on storage tank size, quantity, and siting, a system could cost significantly more. Self-service stations are not typically high priorities for federal funding, but airports interviewed for this project indicated that state grants, local governments, and private tenants have contrib- uted to the purchase and installation of a self-service fueling system. Fuel suppliers may also provide up-front financing. The power requirements for self-service systems at most GA airports are 120V single-phase, which makes the use of DC systems connected to a small wind turbine or solar panels possible. The systems do not necessarily need to replace or compete with an existing FBO; they can be designed to complement the existing fueling services (Gerber, 2010). When designing a self-service unit for jet fuel, there are some important differences to note: • Turbine aircraft typically require tow tugs for ground handling due to weight; • Jet aircraft normally park 90 degrees to the pump to allow for straight departure; • Longer hoses (75 feet to 100 feet) are required to reach tip tanks on the far wing, depending on the wingspan; • Larger jet fuel tanks require a larger pump with a higher flow rate, 50 gpm as opposed to 22 gpm for Avgas; • Interchangeable nozzles are required for self-service systems equipped for single-point fueling; and • Jet fuel requires that interior piping, equipment, and tank surfaces should be stainless steel or epoxy-coated carbon steel for fuel clarity/quality control. 3.4 Components of a Full-Service Fueling System A typical full-service fueling system includes storage tanks and an on-airport distribution system. There are a variety of components that make up the fueling system including: • Storage tanks, • Supply pumps, • Filters, • Meters, • Pressure and flow control valves, • Refueler trucks, • Hydrant system (piping, hydrant pits, hydrant carts), • Fuel hoses and nozzles, • Bonding equipment, and • Cutoff switches and valves. This section highlights the most important features of an on-airport fueling system, beginning with the critical importance of an accurate fuel system diagram. 3.4.1 Importance of a Fuel System Diagram Since fuel systems are often a combination of different components installed over time, a best practice is to create a comprehensive fuel system diagram that documents all system informa- tion. This document should include the correct nomenclature for all fuel facility components (Smith, 2005). This diagram provides a visual representation of how fuel flows at the airport and includes information such as the location of shutoff and routing valves, switches needed to cut off energy to circuits, drains, the types of pumps and filters, and the capacity of each tank and pipe system.

Airport Fueling Systems 39 Fuel system diagrams provide an added level of safety. They can be used for the training of maintenance and operations personnel as well as the local emergency response. A best prac- tice is to include a description of the fire suppression system or the location and type of fire extinguishment on the fuel system diagram. 3.4.2 Storage Systems Aircraft fuel is received and stored at airports in either aboveground storage tanks (ASTs) or underground storage tanks (USTs). Aviation fuel tanks are standardly manufactured of carbon steel, either single- or double-walled. Underground tanks are typically required to be double- walled. Single-walled, aboveground tanks must have secondary containment, such as a concrete impoundment or a lined, earthen-berm area. Factory-fabricated tanks, both aboveground and belowground, have a standard maximum capacity of 50,000 gallons due to road transportation constraints. Tanks of this capacity are approximately 60 feet long and have 12-foot diameters. Larger tanks would require specialized transportation. Aboveground factory-fabricated tanks can have either a horizontal or a vertical orientation; however, larger vertical factory-fabricated tanks can have a high height to diameter ratio and consequently require proper design and planning in high-wind and earthquake-prone areas. Tanks of larger sizes and capacities are typically field-fabricated. Figure 3-2 provides a typical example of an AST as it might be shown in the fuel system diagram. Figures 3-3 to 3-5 depict various AST and UST setups and diagrams. Water is a major potential contaminant of jet fuel due to potential freezing at altitude while in flight and the potential for microbial growth. Organisms such as bacteria, fungi, or mold can live in the water, “feed” on the fuel at the water-fuel interface, and grow into a significant mass that can foul equipment and be passed on to other portions of the fuel system. Free water is removed from aviation fuels by filtration upon delivery to the airport; however, water remains in solution Source: ACRP Synthesis 63: Overview of Airport Fueling System Operations, 2015. Truck loading and unloading area undercover High level detector Bund big enough to contain 120% of the volume of the largest tank Spills from hose couplings within bund area Pipework over wall Blind collection sump Truck unloading area Collection sump Drains to sewer or slops tank Figure 3-2. Typical ATS diagram.

40 Airport Management Guide for Providing Aircraft Fueling Services Source: Burns & McDonnell Engineering Company, 2017. Figure 3-3. Factory-fabricated tank and fuel system. Source: Courtesy of Modern Welding Company, 2018. Figure 3-4. UST installation.

Airport Fueling Systems 41 in the fuel and can precipitate out when fuel temperature drops. For Jet A, approximately one part per million (PPM) of water will precipitate for each degree Fahrenheit drop in fuel temperature. To address ice in fuel lines, fuel system icing inhibitor is an additive that is mixed with jet fuel as it is pumped into an aircraft. As an aircraft climbs after takeoff, the temperature drops, and any dissolved water will separate out from the fuel. The fuel system icing inhibitor dissolves itself preferentially in water over the jet fuel and depresses the freezing point of water to minimize formation of ice. Storage tanks require quality promoting features to ensure that clean, dry fuel is provided. One of these features is a tank low point and valve or pump for the removal of precipitated water. Water has a higher density than aviation fuel and settles to the tank bottom when it precipitates. This daily fuel quality process is called sumping. In order to collect free water, horizontal storage tanks should be slightly sloped to one end, with a water draw-off pipe at the low point. For vertical tanks, the tank bottom is typically sloped to a low-point sump. Water can be removed by gravity flow or via a hand or electric pump. A second water quality requirement for storage tanks is floating suctions, as shown in Figure 3-6. They consist of an elbow swivel or swing joint attached to a suction pipe or “swing arm” with an attached float near the suction inlet. This allows for fuel to be withdrawn near the top of the fuel level in the tank, where the fuel is assumed to be the cleanest, since any water and particulate typically settles to the tank bottom. The presence of water results in rust and corrosion of tank walls. Storage tanks can be internally lined with an epoxy coating to prevent tank corrosion and potential rust contamination and discoloration of the fuel. Storage tanks typically include safety features to carefully track the quantity of fuel available. Some of these features include automatic gauging, manual gauge ports, and overfill level and low-level alarms. Other features typically included are sampling ports, access manways, and vents. Local or state government building and fire codes may dictate what safety features are required. Some of these could include certain fire resistance levels or minimum distances. Codes Source: Burns & McDonnell Engineering Company, 2017. Figure 3-5. Large field-fabricated tanks and fuel hydrant pumping system, Los Angeles International Airport.

42 Airport Management Guide for Providing Aircraft Fueling Services mandate that a tank be offset certain distances from buildings, property lines, public areas, any additional tanks, and dispensing equipment (Quilty, 2015). 3.4.3 Filtration Filtration is a critical component of an aircraft fueling system. It is required for receipt into and dispensing from airport storage. Filtration units are also on refueler tanker trucks, hydrant servicer vehicles, and towable hydrant carts. The most commonly used stationary filter vessel present in all airport fueling systems is the filter separator or coalescer separator. Contemporary filter separators can remove particulate to below 1-micron size and remove free water down to below 5 PPM. An illustration of a typical filter separator is shown in Figure 3-7. 3.4.4 Fuel Pumping Systems Pumping of fuel is required to load and unload fuel transport trucks, refueler trucks, and air- craft. Aviation fuel cannot be received by gravity into underground tanks, as is common at retail gas stations, because it needs to be pumped through filtration prior to being introduced into a storage tank. Fuel pumping systems can be installed on, in, or adjacent to storage tanks but are most commonly adjacent to the tanks. For smaller fuel systems, the piping, filtration, and pumps can be arranged so a single pump can be used for unloading trucked fuel and dispensing fuel. This is accomplished by positioning valves to accommodate the unloading or loading mode of operation. Including a standby pump for redundancy can prevent system downtime caused by pump maintenance or failure. 3.4.5 On-Airport Pipelines Receiving and dispensing piping for smaller self-service and assisted-service fuel systems is typically relatively short, routed between the storage tanks and the receipt and dispensing stations. If necessary, dispensing stations can be more remote from the storage tanks, but this requires proper sizing of piping and fuel dispensing pumps. Piping can be installed either aboveground or underground. If located underground, leak detection or secondary containment is required. Design of pipe slopes must include low-point drains and high-point vents to allow Source: Burns & McDonnell Engineering Company, 2017. Figure 3-6. Storage tank with floating suction.

Airport Fueling Systems 43 for periodic removal of precipitated water through low-point drains and accumulated air through high-point vents. Secondary containment, such as a curbed concrete pad with valve drain, should be considered for aboveground pipe connections or non-welded joints where fuel could potentially drip or leak. This a requirement under the EPA’s Oil Spills Prevention and Preparedness Regulations depending on the size of the system. Asphalt pavement degrades from contact with fuel and is not recommended for spill and leak containment. At commercial airports, hydrant fueling systems are underground networks of pipes extend- ing from a pumping system near the storage tanks to the aircraft gates and parking positions. Hydrant fueling carts or service vehicles access fuel through fueling pits (hydrant pits). Figure 3-8 illustrates a complete hydrant fueling system. 3.4.6 Off-Airport Delivery Systems Fuel delivered to most general aviation airports is typically transported by road-accessible fuel trucks. A fixed unloading pump at the airport transfers the fuel from the delivery truck into Source: Courtesy of PecoFacet, 2018. Figure 3-7. Typical filter separator.

44 Airport Management Guide for Providing Aircraft Fueling Services the storage tank. For smaller fuel quantities, truck-mounted pumps can be used. An airport can request a delivery truck with unloading pumps for additional cost. Commercial airports can receive larger quantities of jet fuel via railroad tankers, barges, or pipelines. The initial capital and operational costs of the pipeline often is justified for an airport with large fuel sales. This method of fuel delivery is less expensive than other delivery methods. 3.4.7 Fueling Vehicles Fueling vehicles include refueler tanker trucks or bowsers, hydrant servicer vehicles, and towable hydrant carts. Refueler tanker trucks range in size from 1,000 gallons typically to over 10,000 gallons, and as large as 17,500 gallons. Any trucks with capacities over 8,000 gallons cannot typically be driven on public roads without waivers or special permits. Hydrant servicer vehicles are custom built and installed on a truck chassis/frame. Towable hydrant carts have the same equipment as on a hydrant servicer vehicle, in a condensed arrangement on a trailer. Figure 3-9 shows a typical refueler tanker truck. 3.4.8 Inventory Equipment and Software Airport fueling operations incorporate sophisticated equipment and software to meter fuel sales, gauge storage tank levels, manage inventory, and electronically transact fuel sales and maintain sales records. Inventory equipment and software are briefly described below. Metering Metering is typically provided for dispensing into aircraft as this is the point of sale. Load tickets are generated by mechanical printers on the meters, by remote printers, or logged electronically. Source: https://aviation.stackexchange.com/questions/38106/how-do-large-airport-refuelling-systems-work. Figure 3-8. Hydrant fueling system.

Airport Fueling Systems 45 Meters are used for pipeline receipt and are located at both the airport and upstream terminal or pipeline entrance. Having meters at both ends allows for a meter-in/meter-out form of leak detection on the buried pipeline. The actual custody transfer meter is usually at the pipeline source. Fuel received by transport truck is metered during loading the truck at an off-airport fuel terminal, where a bill of lading is generated, and then issued to the airport upon delivery of the fuel. Meters are sometimes installed at the airport for truck receipts, so that the recipient of the fuel can compare to the received bill of lading. Tank Gauging System Tank gauging systems are utilized to determine standing inventory. The change in tank level during a truck receipt, as measured by a tank gauging system, can also be used to compare changes in tank levels to the delivery truck bill of lading. The tank gauge can also provide a high-level alarm to prevent overfilling of tanks. It is recommended to also have an independent secondary high-level alarm to mitigate the potential for tank overfill. Electronic Inventory Management System Electronic inventory management systems are commonly used to monitor and manage fuel receipts, inventory, and fuel sales. These systems can be packaged and are available from multiple vendors. Interface of these electronic systems with the system meters, tank gauging systems, ticket printers, and other system devices allows for an automated inventory control process. Electronic tank gauges can more accurately measure fuel quantities as these systems account for the expansion of the fuel due to temperature shifts. In addition, inventory management systems can include access codes, time logging, and quantity data for inventory-related events, as well as identification of delivery suppliers and fuel system purchasers. 3.4.9 Operations and Maintenance Manual An organized operations and maintenance (O&M) program is an essential system an airport should develop to move all fueling equipment information and supplier manuals in one docu- ment. An O&M manual comprises of actual operational sequences, inspection requirements, alarms, and safety procedures. Troubleshooting measures and checklists can be included to assist in rectifying equipment problems during day-to-day operation. A typical O&M manual, as shown in Figure 3-10, contains the following essential chapters. Each chapter after the introduction and facility inspection schedule would include the following discussions for each system: • General information, • System equipment list, Source: http://www.aviationpros.com/product/10026595/garsite-5000- gallon-jet-refueler. Figure 3-9. Typical refueler tanker truck.

46 Airport Management Guide for Providing Aircraft Fueling Services • Equipment data sheets, • Normal operating procedures, • Emergency shutdown, and • Alarms and alarm responses. The O&M manual can be developed from instructions provided by equipment suppliers. Airport staff can also add their own standardized operating procedures either prepared in-house or by consultants. 3.4.10 Fuel Facility Inspection Schedule Routine inspections are an essential part of an airport maintenance plan and serve as a safeguard for emergency and environmental concerns discussed in Section 3.6. In developing the O&M manual, an airport would want to add a fuel facility inspection schedule listing all routine Figure 3-10. Typical airport O&M manual. 1.0 Introduction 1.1 General Manual Organization 1.2 Facility Description 1.3 Characteristics of Fuels 2.0 Facility Inspection Schedule 2.1 Daily Inspections 2.2 Quarterly Inspections 2.3 Annual Inspections 2.4 Miscellaneous and Construction Inspections 3.0 Truck Unloading System 3.1 General Information 3.2 System Equipment Lists 3.3 Equipment Data Sheets 3.4 Normal Operating Procedures 3.5 Emergency Shutdown 3.6 Alarms and Alarm Responses 4.0 Truck Loading System 5.0 Storage Tanks 6.0 Fuel Reclaim and Waste System 7.0 Oil/Water Separators/Drainage System 8.0 Emergency Fuel Shutoff 9.0 Electrical System 10.0 Central Control System Source: Burns & McDonnell Engineering Company, 2017.

Airport Fueling Systems 47 inspections of facility equipment in one location. The inspection procedures can be based on governing documents listed below or a fuel supplier or manufacturer recommendations. Inspection requirements for airports certificated under 14 CFR Part 139 include regular daily inspections, continuous surveillance as necessary, and more detailed inspections every 3 months. FAA AC 150/5200-18C—Airport Safety Self-Inspection provides guidance on regularly sched- uled continuous surveillance, periodic condition, and special inspections. A state, municipality, airport operator, individual air carrier, local fire and building jurisdiction, or petroleum and fuel producers may set more stringent or additional requirements. It is a best practice for GA airports to follow a similar self-inspection schedule. The Air Transport Association Specification 103, developed and continually revised by Airlines for America, provides inspection procedures in the form of daily, weekly, monthly, quarterly, biannual, and annual testing and maintenance items for both stationary fueling system equip- ment and vehicles. This specification is referenced for guidance in other industry publications including FAA AC 150/5230-4B and NFPA 407 (National Fire Protection Association, 2017). Additional information on inspections and quality control are discussed in Chapter 11 of the management guide. 3.5 Safety and Environmental Considerations Aviation fuel is a hazardous material and requires special safety and environmental consider- ations in storage, handling, and dispensing. This section offers an overview of potential safety and environmental risks, preventative measures to counter these risks, and governing regulations. The Management Guide further discusses these topics in the context of facility design (Chapter 9), risk management (Chapter 10), and daily operation (Chapter 11). An additional resource is ACRP Report 43: Guidebook of Practices for Improving Environmental Performance at Small Airports (2011). This report summarizes federal environmental compliance requirements that apply to airport fueling systems. 3.5.1 Safety Considerations and Accident Prevention Storage of aviation fuel products poses the possibility of ignition and explosion of this fuel source. Jet fuel is classified as a combustible liquid and Avgas as a volatile flammable liquid. The difference is in their flashpoint, the temperature at which a material gives off sufficient vapor to readily ignite in air. If this flammable vapor is released into the air and ignited, an unconfined vapor cloud explosion (UCVE) results. While jet fuel’s flash point is at or above 100°F, Avgas is typically below –40°F. Avgas is more volatile, burns more vigorously, and more readily ignites compared to Jet A. Information regarding the specific product formulation and properties, such as flash point, can be found on safety data sheets (SDSs) for each product. Spilled fuel or released vapors can be easily ignited by static electricity discharge. When electrically, non-conductive fluid like aviation fuel is moving through a hose or pipe, it builds up static electricity that can arc and lead to fire (Visser, 2016). Additional sources of ignition could include faulting wiring, batteries, light and heat sources, and vehicle collisions. Several preventative measures in design and daily operation can reduce the risk of flash point sparking and leakage. Some of these include: • Emergency fuel shutoff valves; • Fuel level monitoring systems; • Fire suppression systems;

48 Airport Management Guide for Providing Aircraft Fueling Services • Vehicle collision protections; • Equipment safeguards to eliminate potential sources of sparks; • Bonding cables to avoid static electricity buildup during fueling; • Daily, quarterly, and annual inspections; and • Technician training. 3.5.2 Safety Regulations and Standards The principal safety regulations include the following: Code of Federal Regulations Requirements for handling and storage of aviation fuel on Part 139: Airports are detailed in Title 14 Code of Federal Regulations Section 139.321. The main component is a fueling safety program to ensure that all fueling personnel are properly trained in fueling procedures and practices for the protection of airport personnel and the public.2 According to 14 CFR 139.325, an airport emergency plan must be prepared that includes sections on fires at fuel farms or fuel storage areas and hazardous materials/dangerous goods incidents. 14 CFR 139.327 lists require- ments for an airport’s self-inspection program. FAA Advisory Circulars The FAA has prepared AC 150/5230-4B to provide further guidance for the storage, handling, training, and dispensing of aviation fuel on airports. FAA AC 150/5200-31C provides guid- ance for developing an airport emergency plan, and Chapter 5 of this document discusses plan- ning for hazardous materials incidents. FAA AC 150/5200-18C provides guidance for airport self-inspections. NOTE: While the CFR 139 regulations only apply to Part 139: Airports, it is highly recom- mended that GA airports follow the accompanying guidance outlined in the FAA advisory cir- culars. While advisory circulars do not have binding authority, they are a valuable resource and provide additional information on the federal codes. Since GA airport are not required to develop an airport emergency plan, they must, in turn, follow Homeland Security guidelines in HSPD-5 and HSPD-8. National Fire Protection Association NFPA 407—Standard for Aircraft Fuel Servicing (2017) by the National Fire Protection Asso- ciation outlines fire safety provisions for the fuel servicing of all types of aircraft using liquid petroleum fuel. Airlines for America The Air Transport Association Spec 103—Standards for Jet Fuel Quality Control at Airports provides detailed information on quality control inspections for fuel facilities. Some of these safety regulations are further discussed in Chapters 9 to 11 of the management guide. 3.5.3 Environmental Considerations and Spill Prevention Not only do fuel spills and leaks present a safety concern, they also have environmental impacts. The frequency of fueling operations, volumes of fuel stored, and pressures in the fuel system all 2 https://www.faa.gov/airports/airport_safety/media/guidelines-submitting-supervisory-fueling-safety-program.pdf.

Airport Fueling Systems 49 add to the risk of a spill. An accident or equipment failure could result in a high-pressure leak, releasing significant fuel quantities in a matter of minutes. If a hose connected to a hydrant ruptures, fuel may spill at an approximate rate of 1,585 gallons per minute (gpm), or if a hose is connected to the aircraft, fuel may spill at an approximate rate of 530 gpm.3 Both Jet A and Avgas fuel contain toxic components that can heavily impact surrounding natural areas and human health. When fuel spills occur, toxic hydrocarbons contaminate surface water and groundwater sources. The metric of total petroleum hydrocarbons (TPH) in the Jet A range (TPHj) and in the diesel range (TPHd) represent the primary constituents of concern at sites that have experienced fuel spills or leaks. Avgas still contains lead in levels that can impact air, water, and soil quality. The FAA and EPA have identified Avgas emissions as the largest contributor of lead emissions produced in this country. The petroleum industry and the FAA have been working for over a decade to find alter- native fuels; however, they have yet to find a substitute (Price, 2013). An individual’s health can be affected by chronic or even minimal exposure to aviation fuels. Jet fuel vapors can irritate the mouth, throat, or stomach, and prolonged exposure can cause central nervous system depression. Jet fuel also contains distilled materials similar to distillates known to produce skin tumors on laboratory animals.4 Avgas may cause skin and eye irritation as well. Overexposure to vapors can cause slight irritation of the respiratory tract, nausea, vomiting, and signs of nervous system depression. It may be fatal if swallowed.5 Several of the preventative measures listed for safety also lower the risk of environmental damage due to fuel spills. Some additional design and operational measures for environmental protection include: • Secondary containment, • Corrosion protection, • Leak detection systems, • Daily inventory monitoring for leaks, • Development of a Spill Prevention Control and Countermeasure Plan, and • Careful inventory of hazardous materials with SDSs. 3.5.4 Environmental Regulations There is some overlap in environmental and emergency regulations as they pertain to fueling operations. Code of Federal Regulations 40 CFR Parts 110 and 112 include regulations for oil pollution prevention established by the EPA. Part 112 applies directly to fuel storage facilities on airports, and requires preparation of a Spill Prevention Control and Countermeasure Plan for any facility that could reasonably be expected to discharge a harmful quantity of oil into navigable waters of the United States or adjoining shorelines. In addition, if a facility could reasonably be expected to cause “substantial harm” to the environment by discharging oil into navigable waters, it may also be required to prepare and submit a Facility Response Plan. A Facility Response Plan demonstrates a facility’s preparedness to respond to a worst-case oil discharge (EPA, 2002). 3 Flight Safety Foundation. Ground Accident Prevention Ramp Operational Safety Procedures. https://flightsafety.org/toolkits- resources/past-safety-initiatives/ground-accident-prevention-gap/ground-accident-prevention-ramp-operational-safety- procedures/. 4 http://www.usor.com/files/pdf/4/Jet%20Fuel%20-%20SDS%20941%20-%20130709.pdf. 5 http://www.aviation-fuel.com/pdfs/MSDS_for_AvGas_100LL_from_P66_dated_3-04-13.pdf.

50 Airport Management Guide for Providing Aircraft Fueling Services Certain airport hydrant systems are regulated under the UST regulations defined in 40 CFR Part 280. This regulation applies to all owners of underground tanks or pipes used to store fuel. Airport hydrant systems with ASTs directly connected to underground hydrant piping are not regulated under 40 CFR Part 280, unless 10 percent or more of the total system capacity, including underground piping, is beneath the surface of the ground. 40 CFR Part 302 and 40 CFR Part 355 provide information on hazardous materials and accompany the Emergency Planning and Community Right-to-Know Act (EPCRA) regulations discussed below. Emergency Planning and Community Right-to-Know Act EPCRA contains four major provisions, and their reporting frequencies are summarized in the Table 3-1. The sections outline emergency response, notifications of spills, and hazardous substance storage and inventory tracking. These reporting requirements are further discussed in Chapter 11 of the management guide. Section 302 requires airports and facilities that produce, use, or store extremely hazardous substances in quantities that exceed threshold planning quantities (TPQs) to submit site-specific information to the Local Emergency Planning Committee and the State or Tribal Emergency Response Commission within 60 days of receiving the material. Section 303 defines community emergency response plans for chemical accidents. Section 304 requires immediate reporting if there is a hazardous substance released exceeding the minimum reportable quantity. Facilities must immediately notify the Local Emergency Planning Committee and State or Tribal Emergency Response Committee and provide a follow-up notice after the incident. Section 311 requires owners and operators to prepare a one-time submittal of SDSs about onsite hazardous chemicals as defined by the Hazard Communication Standard of the Occu- pational Safety and Health Administration (OSHA). Updates are required as needed for new chemicals or new information on the chemicals. SDSs are to be available at the airport. Section 312 requires annual inventory reports of an airport’s hazardous chemicals to the Local Emergency Planning Committee, State Emergency Response Committee, and local fire department. Section 313 or the toxics release inventory tracks management of toxic chemicals that pose a threat to human health. This requires annual reporting on chemical management to the EPA and state or tribe. EPCRA Section Description Reporting Frequency Section 301–303 Emergency Planning and Emergency Response Plans One Time Section 304 Emergency Notifications Every Release Above Reportable Quantities Sections 311–312 Hazardous Chemical Storage Reporting 311: One Time with As-needed Updates 312: Annual Section 313 Toxic Chemical Release Inventory Annual Source: Prepared by KRAMER aerotek based on information from the EPA.6 Table 3-1. EPCRA section summary. 6 https://www.epa.gov/sites/production/files/2013-08/documents/epcra_fact_sheet.pdf.

Airport Fueling Systems 51 Clean Air Act Title V of the Clean Air Act requires major sources of air pollutants and certain other sources to obtain and maintain an operating permit. Major sources generally include those emitting more than 100 tons per year of any criteria pollutant, and lower thresholds apply in non-attainment areas. Title V permits need to be renewed every 5 years and requirements may vary from state to state. During that time, the facility must demonstrate compliance with the permit conditions by monitoring and reporting all air emissions. Information reported includes a list of all pollutants emitted, the quantity and rate at which they are emitted, control technologies employed to mitigate these emissions, and monitoring data. NOTE: Minimum reportable quantities are listed throughout many different regulations, so the EPA has prepared a consolidated list that can be used to identify the chemicals outlined by each regulation (EPA, 2015). This comprehensive list is located on the EPA’s website and includes the following: • EPCRA Section 302: TPQs for Extremely Hazardous Substance (listed in 40 CFR 355); • Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Hazardous Substances (listed in 40 CFR 302); • Clean Air Act Section 112 (r); and • EPCRA Section 313: Toxic Chemicals. National Environmental Policy Act The NEPA process is required when a federal agency develops a proposal to take a major federal action. Major federal actions are defined in 40 CFR 1508.18 and can include activities, projects, or programs fully or partially federally funded. On airports, the FAA is typically the lead agency and will make the final decision on the action. As part of the NEPA process, the applicant may be required to prepare one of the following documents to assess the potential environmental and socioeconomic impacts from the proposed action: • Categorical Exclusion (CATEX); • Environmental Assessment/Finding of No Significant Impact; or • Environmental Impact Statement. FAA Order 1050—Environmental Impacts: Policies and Procedures details the policy and procedures for compliance with NEPA. State and Local Requirements States and local municipalities may have their own set of safety and environmental regulations in addition to the federal requirements. Local regulations and permits vary on a case-by-case basis and may have more stringent requirements. These may include storage tank permits, air quality permits for construction and operation, etc. Local regulations can be found at state EPA, city, county, local fire department, and other websites. It is a best practice to work with the local environmental agency representatives to ensure all requirements are met. 3.6 Summary of Federal and State Regulations, Codes, and Standards An airport sponsor is responsible for seeing that the layout, design, operation and maintenance of airport fueling systems meet relevant federal and local regulations, codes, and standards. Often the airport’s consultant or director of public works will assist the sponsor with compliance. A fueling system must comply with applicable sections of the Code of Federal Regulations, FAA publications, state regulations, county and city regulations, and building and fire codes, including

52 Airport Management Guide for Providing Aircraft Fueling Services specific National Fire Protection Association codes and standards. Additional guidance docu- ments are published by Airlines for America. Many of these documents have been referenced in previous sections, but a consolidated list follows in alphabetical order. • Airlines for America: – Air Transport Association (ATA) Specification 103: Standards for Jet Fuel Quality Control at Airports – Airport Fuel Facility O&M Guidance Manual – Specification 123: Procedures for the Accounting of Jet Fuel Inventory • American Petroleum Institute: – API RP 500: Recommended Practice for Classification of Locations for Electrical Installations at Petroleum Facilities Classified as Class I, Division 1 and Division 2 – Manual of Petroleum Management Standard Chapter 2 • American Society of Mechanical Engineers Codes: – ASME B31.3: Process Piping • American Society for Testing and Materials: – D1655: Specification for Aviation Turbine Fuels – D2276: Test Methods for Particulate Contaminants in Aviation Turbine Fuels – D4176: Standard Test Method for Free Water and Particulate Contamination in Distillate Fuels • Codes of Federal Regulation: – 40 CFR 110: Discharge of Oil – 40 CFR 112: Oil Pollution Prevention – 40 CFR 280: Technical Standards and Corrective Action Requirements for Owners and Operators of UST – 40 CFR 302: Designation, Reportable Quantities, and Notification – 40 CFR 355: Emergency Planning and Notification – 14 CFR 139.321: Handling and Storing of Hazardous Substances and Materials – 14 CFR 139.325: Airport Emergency Plan – 14 CFR 139.327: Self-Inspection Program • Emergency Planning and Community Right-to-Know Act: – EPCRA 302: Extremely Hazardous Substances – EPCA 304: Emergency Release Notification Requirements – EPCRA 311–312: Hazardous Chemical Inventory Reporting Requirements – EPCRA 313: Toxic Chemical Release Inventory • Energy Institute (Institute of Petroleum): – EI 1542: Identification Markings for Dedicated Aviation Fuel Manufacturing and Distribution Facilities, Airport Storage and Mobile Fueling Equipment – EI 1581: Specifications and Laboratory Qualification Procedures for Aviation Fuel Filter/ Water Separators • Federal Aviation Administration: – AC 150/5230-4B—Aircraft Fuel Storage, Handling, Training, and Dispensing on Airports – AC 150/5200-31C—Airport Emergency Plan – AC 150/5200-18C—Airport Safety Self-Inspection – FAA Order 1050—Environmental Impacts: Policies and Procedures • Homeland Security Presidential Directives: – HSPD-5: Management of Domestic Incidents – HSPD-8: National Preparedness • International Building Code • National Fire Protection Association: – NFPA 30: Flammable and Combustible Liquids Code – NFPA 70: National Electrical Code (NEC)

Airport Fueling Systems 53 – NFPA 407: Standard for Aircraft Fuel Servicing – NFPA 704: Standard System for the Identification of the Hazards of Materials for Emergency Response • SAE International: – Aerospace Recommended Practice (ARP) 5789: Aviation Fuel Facilities – Aerospace Standard 6401: Storage, Handling, and Distribution of Jet Fuels at Airports • State, county, and city building and fire codes (if any) • Underwriters’ Laboratories: – UL 58: Steel Underground Tanks for Flammable and Combustible Liquids – UL 142: Steel Aboveground Tanks for Flammable and Combustible Liquids – UL 2085: Protected Aboveground Tanks for Flammable and Combustible Liquids 3.7 References 40 CFR Part 112—Oil Pollution Prevention. Available: https://www.law.cornell.edu/cfr/text/40/part-112. 14 CFR Part 139 § 321—Handling and storing of hazardous substances and materials. Available: https://www. law.cornell.edu/cfr/text/14/139.321. Airlines for America. ATA Specification 103—Standard for Jet Fuel Quality Control at Airports. 2006. Benzinger, V. W. “Environmental Insurance Basics for the Airport Risk Manager.” Aon Risk Services. January 10, 2013. Available: http://www.aci-na.org/sites/default/files/environmental_basics_for_airport_risk_managers.pdf. Brown, J. “Fuel Quality Responsibility.” NATA Safety 1st, Issue 55, September 16, 2009. Available: http://nata.aero/ data/files/safety%201st%20documents/etoolkit/safety_1st_etoolkit_issue_55_sept_16_2009.pdf. Crotty, B. J. “Safeguarding the Fuel Supply,” AeroSafety World. April 2007. EPA. Consolidated List of Chemicals Subject to the Emergency Planning and Community Right-To-Know Act (EPCRA), Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and Section 112(r) of the Clean Air Act, List of Lists, 2015. Available: https://www.epa.gov/sites/production/ files/2015-03/documents/list_of_lists.pdf. EPA. Facility Response Planning, Compliance Assistance Guide. 2002. Available: https://www.epa.gov/sites/ production/files/2014-04/documents/frpguide.pdf. EPA. Requirements for Field-Constructed Tanks and Airport Hydrant Systems. 2017. Available: https://www.epa. gov/sites/production/files/2017-10/documents/fct-ahs-10-4-17-final508.pdf. EPA. The Emergency Planning and Community Right-to-Know Act. 2012. Available: https://www.epa.gov/sites/ production/files/2013-08/documents/epcra_fact_sheet.pdf. Faiola, A., and Mufson, S. “N.Y. Airport Target of Plot, Officials Say.” The Washington Post. June 3, 2007. FAA. AC 150/5200-18C—Airport Safety Self-Inspection. April 23, 2004. Available: https://www.faa.gov. documentLibrary/media/advisory-circular/150-5200-18C/150_5200_18C.pdf. FAA. AC 150/5200-31C—Airport Emergency Plan. May 10, 2010. Available: https://www.faa.gov/documentLibrary/ media/150_5200_31c_chg1.pdf. FAA. AC 150/5230-4B—Aircraft Fuel Storage, Handling, Training, and Dispensing on Airports. September 28, 2012. Available: https://www.faa.gov/documentLibrary/media/advisory_circular/150_5230_4b.pdf. FAA. Environmental Impacts: Policies and Procedures, Order 1050.1F. July 16, 2015. Available: https://www.faa. gov/documentLibrary/media/Order/FAA_Order_1050_1F.pdf. Gerber, G. “Self-Service Fuel Fills Special Needs at General Aviation Airports.” Airport Improvement. 2010. Available: http://www.airportimprovement.com/article/self-serve-fuel-fills-special-needs-general-aviation- airports. International Civil Aviation Organization. Manual on Civil Aviation Jet Fuel Supply, Doc 9977 AN/489, 1st ed. Montreal, Quebec, Canada. 2012. Available: https://skybrary.aero/bookshelf/books/2477.pdf. Jones, C., Fewtrell P., Petrie, A., et al. “Quantified Risk Assessment of Aircraft Fueling Operations.” The Health and Safety Executive. 2000. Available: http://www.hse.gov.uk/research/crr_pdf/2000/crr00288.pdf. McGromley, R. W., Lengel, J. A. Jr., Devon, E. S., et al. ACRP Report 43: Guidebook of Practices for Improving Environmental Performance at Small Airports. Transportation Research Board of the National Academies, Washington, D.C. 2011. Misegades, K. “Self-Service Fuel: Airport Money-Maker.” Airport Business. May 28, 2012. Available: http://www. aviationpros.com/article/10692819/self-service-fuel-airport-money-maker. National Fire Protection Association. NFPA 407—Standard for Aircraft Fuel Servicing. 2017. Available: http://www. nfpa.org/codes-and-standards/all-codes-and-standards/list-of-codes-and-standards/detail?code=407.

54 Airport Management Guide for Providing Aircraft Fueling Services Price, H. J. “Fact Sheet—Leaded Aviation Fuel and the Environment,” FAA. June 19, 2013. Available: https://www. faa.gov/news/fact_sheets/news_story.cfm?newsId=14754&omniRss=fact_sheetsAoc&cid=103_F_S. Quilty, S. M. ACRP Synthesis 63: Overview of Airport Fueling System Operations, Transportation Research Board of the National Academies, Washington, D.C., 2015. Rakich, R., Wells, C., and Wood, D. ACRP Synthesis 30: Airport Insurance Coverage and Risk Management Practices. Transportation Research Board of the National Academies, Washington, D.C., 2011. Smith, S. “Fuel Farm Maintenance.” NATA Safety 1st, Vol. I, No. 8, March 17, 2005. Available: http://nata.aero/ data/files/safety%201st%20documents/etoolkit/safety1st_etoolkit_8_031705.pdf. Thompson, R. “Interim Guidance on Mitigating Public Risks Associated with Lead Emissions from Avgas Memorandum.” FAA. June 19, 2013. Available: https://www.faa.gov/airports/environmental/policy_guidance/ media/leadMitigationMemoJune2013.pdf. “Top 5 Fuel Quality Issues You Need to be Aware of.” NATA Safety 1st® eToolkit, Vol. I, No. 8, March 17, 2005. Available: http://nata.aero/data/files/safety%201st%20documents/etoolkit/safety1st_etoolkit_8_031705.pdf. Visser, B. “Tips to Ground an Aircraft while Refueling.” General Aviation News, May 22, 2016. Available: https://generalaviationnews.com/2016/05/22/tips-to-ground-an-aircraft-while-refueling/.

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TRB’s Airport Cooperative Research Program has released ACRP Research Report 192: Airport Management Guide for Providing Aircraft Fueling Services designed to assist airports that are considering or are currently self-providing fueling services directly to their customers.

The management guide includes a methodology to help evaluate whether an airport should or should not provide fuel service, a checklist of action items required for providing fuel service, and a sample request for proposal to solicit bids from fuel suppliers.

The management guide also addresses a wide range of topics including feasibility evaluations for new or improved fueling facilities, fuel pricing and marketing strategies, and organizational considerations when starting or expanding a fueling service. In addition, there are introductions to how aviation fuels are produced and to the components of an airport fueling system, which can be used to brief municipal decision-makers or airport employees.

The management guide offers useful information about branded and unbranded fuel products, setting price, inventory controls, customer service, staffing levels, regulatory requirements, capital investment, and operating and maintenance costs associated with the fueling services.

There are three online appendices related to the guide.

Appendix A contains case studies of the fueling operations of 16 airports;

Appendix B contains Microsoft Excel worksheets (that can be downloaded and customized by airports to keep track of inventories, sales, operating expenses, and profit and loss) and a Microsoft PowerPoint presentation (to help airports produce their own PowerPoint presentations for their sponsors); and

Appendix C contains a detailed bibliography.

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