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Airport Management Guide for Providing Aircraft Fueling Services (2019)

Chapter: Part 4 - Implementation Plan

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Suggested Citation:"Part 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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 4 - Implementation Plan." 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.

Implementation Plan P A R T 4 115 Chapter 9 System Design 115 9.1 System Design and Project Construction Process 115 9.2 Project Feasibility and Delivery Method 117 9.3 Preliminary Design and Selection of Alternative 121 9.4 Emergency Systems and Environmental Compliance 126 9.5 Final Design 126 9.6 Construction Documents and Permits 129 9.7 Bid Package 130 9.8 Construction Responsibilities 133 9.9 References 135 Chapter 10 Operating Decisions 135 10.1 Selecting an Operating Model 138 10.2 Fuel Pricing Strategy 138 10.3 Decision on a Fuel Supplier 139 10.4 Branded Versus Unbranded Fuel 142 10.5 Staffing Requirements and Training 148 10.6 Budget 150 10.7 Cash Flow Considerations 150 10.8 Risk Management 154 10.9 References 155 Chapter 11 Operating the Fuel Facility 155 11.1 Monitoring Fuel in Storage Tanks 164 11.2 Safety and Emergency Operations 165 11.3 Environmental Operations 167 11.4 Quality Control and Inspections 169 11.5 Operating Permits and Certifications 169 11.6 Facility Maintenance and Repairs 170 11.7 References

171 Chapter 12 Managing Inventory, Ordering Fuel, and Setting Prices 171 12.1 Managing Inventory 173 12.2 Ordering Fuel 175 12.3 Pricing Retail Fuel 181 12.4 Self-Service, Discounts, and Contract Rates 183 12.5 Monitoring Competition and Adjusting Prices 183 12.6 Keeping Posted Fuel Prices Current 184 12.7 Reviewing Performance Part 4 of the management guide discusses the implementation phase of developing or improv- ing fuel facilities, which includes the system design process; decisions about operating a fuel facilities; and steps to manage fuel inventories, order fuel, and set prices.

115 9.1 System Design and Project Construction Process 9.2 Project Feasibility and Delivery Method 9.3 Preliminary Design and Selection of Alternative 9.4 Emergency Systems and Environmental Compliance 9.5 Final Design 9.6 Construction Documents and Permits 9.7 Bid Package 9.8 Construction Responsibilities 9.9 References Chapter 9 moves into Part 4 of the management guide, the implementation plan. A new fuel facility or plan for upgrading or expanding comes to fruition through careful design, a business plan, an operating plan, and a strategy for fuel inventory management and price setting. All these will be discussed in Chapters 9, 10, 11, and 12. Selected tables in Part 4 can be downloaded from Appendix B on the TRB website as Excel worksheets and customized for specific airports. Appendix B can be found by searching on “ACRP Research Report 192.” Chapter 9 outlines the basics of fuel facility system design and the steps to reach a set of construction documents ready to begin the bidding process. While qualified engineers and planners are often involved in design, this chapter presents the process and several design and construction considerations airport management may encounter during the design of a facility. 9.1 System Design and Project Construction Process A systematic process of executing fuel system design and construction enhances the potential for project success and mitigates the potential for unforeseen issues and additional costs to occur during construction. Figure 9-1 depicts an example of a typical, efficient process to be followed for fuel system planning, design, bidding, construction, and commissioning. Including these elements in project scheduling and critical milestones is imperative to complete a project in a systematic, timely fashion. 9.2 Project Feasibility and Delivery Method 9.2.1 Feasibility Study Chapter 8 provided a framework to analyze project feasibility. To recap, the components of a feasibility decision involve: C H A P T E R 9 System Design

116 Airport Management Guide for Providing Aircraft Fueling Services • A description of the proposed project, including the scope of new fueling facilities and products to be offered; • An evaluation of market feasibility in terms of current demand for Avgas and jet fuel, identification of existing and prospective customers, analysis of the competition, and forecast of future demand; • A planning level discussion of the types of fuel facilities, equipment, and technology that would be used for this project and its interface with any existing fueling operations at the airport; and • Estimates of funding that would be required to acquire, design, and build the project. Source: Prepared by Kimley-Horn and Associates, 2018. • Feasibility Study • Selection of Project Delivery Method (DB or DBB) • Site Survey and Existing Conditions Review • Design Considerations and Alternatives • Selection of Design Alternative • Deliverables: Preliminary Design Report, Concept Plans • Emergency Systems • Environmental Compliance • Final Facility Design • Deliverables: 30%, 60%, and/or 90%–100% Plans, Specifications, and Engineer's Report • Preparation of Bid Documents • Permits, Airport Layout Plan Update, FAA Form 7460-1 • Bid Advertisement • Award • Onsite Representation • Progress Reporting • Deliverable: Final “As-Built” Construction Documents Project Feasibility Delivery Preliminary Design Compliance Final Design Construction Documents Construction Project Closeout •Final Inspection and Punch List •Project Acceptance •Warrantees Figure 9-1. Design and construction process for airport fueling system.

System Design 117 At this point in the project, feasibility has been determined and funding secured. The next important decision involves how the project will be delivered in terms of design and construction. 9.2.2 Project Delivery Methods Project design and construction execution vary depending on the method of project delivery. Design and construction typically involves contracts between the airport sponsor and the engineer, and between the airport sponsor and a construction contractor. A project can be completed via the Design-Bid-Build (DBB) or Design-Build (DB) process. DBB projects are formatted so that an engineering team designs the system and the project is made available to construction contractors who compete in a competitive bid process. If the project is eligible for AIP funding, the low-bidding contractor or group of contractors are selected to build the project. If non-federal money is funding the facility, the airport may select their preferred contractor, based on local government purchasing requirements. Usually price drives the decision. When scheduling, time is allocated for advertisement, bidding, and awarding the project. This project delivery method is most common. DBB projects require the owner or an agent thereof to provide construction administration and oversight responsibilities. Since the design engineer and installing contractor are two separate entities in this arrangement, the owner or their agent must oversee and manage the construction contractor and engineer independently and coordinate between them if there are issues or conflicts. DB projects, sometimes termed “turnkey,” are designed and built by a single responsible entity, such as a general contractor with engineering staff working directly for them. Owner management, construction administration, and oversight can be significantly reduced with a DB project, as the general contractor and engineer are one entity and conflict resolution between the contractor and the engineer is typically an internal process without owner involvement. Additionally, the length of the project can potentially be decreased under the DB scenario, as construction can commence while some of the final engineering is still being performed. Bid packages for DBB versus DB formats can be significantly different as explained in Section 9.7. 9.3 Preliminary Design and Selection of Alternative Airport fuel system design is typically executed by specialized engineers with experience and knowledge directly associated with aircraft fueling systems. An experienced engineer holds valuable working knowledge of the regulations, published industry standards, GA design principles, and intuition from a resume of projects that can contribute to a successful design and installation. The cost of fuel system design depends on the complexity and magnitude of the proposed fuel system, regulatory authority involvement, permitting, and client desires and requirements. A small, prefabricated fueling system may be designed by engineers or designers of the system manufacturer. As stated previously in Chapter 3, it is good practice to engage an engi- neering company, with specialized experience in aircraft fueling systems, in the design, review, and construction of prefabricated, packaged fueling systems to ensure quality of design and conformance with applicable codes and regulations. Though a packaged fueling system comes predesigned, outside site adaptation including civil, structural, and electrical engineering is needed. Site engineering design would typically include grading and drainage; pavement structure; spill containment; concrete equipment slabs; pavement marking; and utilities such as power, fire lines, and water. A system with remote dispensing would require design of piping and electrical systems connecting the bulk storage

118 Airport Management Guide for Providing Aircraft Fueling Services system to the remote dispensing. Larger multitank, interconnected fuel systems with local or remote dispensing require more extensive engineering design. 9.3.1 Site Surveys and Existing Conditions Review Preliminary design begins with an evaluation of potential project sites to find optimal loca- tion, layout, and potential costs for an airport fuel system. Some considerations for preliminary design are listed in Table 9-1. While many facility projects do not involve new facility construction, projects that increase capacity, move facilities, add a fuel option, or install a self-service option still require preliminary review. Storage Capacity Fuel demand drives the need for added capacity. A discussion in Chapter 7 reviews steps to predict demand for fuel in coming years. Capacity required drives the volume and size of tanks. The required size of storage tanks can limit where a facility can be specifically located on an airfield. Fuel storage tanks can be aboveground or underground. There are multiple considerations when determining what type of tank is appropriate. USTs must comply with federal regulations found under 40 CFR Part 280—Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks (UST), and any additional local and state regulations. A majority of ASTs must comply with 40 CFR Part 112—Oil Control Prevention. Current UST regulations require that all new USTs must have leak detection systems, while for ASTs, one can easily perform a visual check for leaks. Other considerations include: • Cost (It is typically less costly to install an AST and requires less excavation, backfill, and paving than UST installation); • Permitting/Zoning (Do height and diameter limitations on storage tanks allow for sufficient capacity?); • Location (Does the property have enough space to accommodate the necessary tank size and future needs? Codes often dictate required setbacks for ASTs from buildings, property lines, etc.); • Aesthetics; • Secondary containment requirements; Consideration Description Storage Capacity Determines area required for facility Airport Master Planning Facility location relative to future infrastructure plans Airfield Clearances Safety and object free areas; Protected airspace Topography Slope of existing site Geotechnical Survey Soil type, load-bearing capacity, settlement potential Public Access Ease of fuel deliveries, third party contractors Fuel Supply Pipelines Location of pipelines on airport to ensure environmental safety and to avoid land use conflicts Utility Crossing and Availability Ease of routing new utilities or using existing Pilot Access Ease of locating the facility for transient pilots Environmental Previous ground contamination Source: Prepared by KRAMER aerotek, 2018. Table 9-1. Fuel system site survey evaluation.

System Design 119 • Security; • Ease of product delivery, transfer, and maintenance; and • Insurance. Airport Master Planning Relying on the most current airport master plan document can help guide the site selection for a fuel facility. The fuel facility’s relation to future airfield developments and buildings, hangars, and terminals should be carefully thought out. Having to relocate a fuel system at a future date to accommodate other infrastructure will involve significant additional costs. Airfield Clearances All structures and fuel facility equipment must adhere to FAA guidance and follow all horizontal and vertical clearances, including: • Runway safety areas and object free areas, • Taxiway and taxilane safety and object free areas, and • Part 77 surface. Facilities cannot be located within safety areas and object free areas of runways and taxiways. Fuel storage tank heights and relative diameters may need to be evaluated if in proximity to clearance zones. Topography The topography of a potential site can heavily impact construction costs. Sites for fueling equipment and pavement are preferably flat and typically drain to one location. Depending on the shape of the existing ground, significant earthwork fill or removal will affect construction cost and duration. Spill Containment Areas All fuel facilities are required to have a containment area in which any potential fuel spill will drain to a closed valve or set of valves. Discussed further in Section 9.4, the spill prevention, control, and countermeasure (SPCC) plan outlines requirements for fuel facilities that should be under consideration as early as the site survey. Geotechnical Survey A geotechnical survey provides information for design of load-bearing structures such as fuel tank foundations and concrete equipment pads. This information can include: • Soil type (e.g., clay, sand, rock, loam), • Soil load-bearing capacity, • Anticipated settlement due to loading, • Soil stabilization recommendations (e.g., injection, overexcavation), • Recommended foundation types, • Groundwater levels (can establish any construction dewatering requirements), and • Soil resistivity for buried fuel piping cathodic protection (corrosion prevention) design. Public Access Fuel delivery trucks, construction contractors, and maintenance workers require access to the facility. Fuel deliveries may require secured access through the air operations area, but this can be avoided if the truck offload connection is located outside the airport boundary and security

120 Airport Management Guide for Providing Aircraft Fueling Services fence. Underground or surface pipelines route the fuel to the fuel storage system located within the secured confines of the airport property. Fuel Supply Pipelines At larger airports where fuel supply pipelines from regional terminals, refineries, or barge/ tanker piers do or will exist, routing the pipelines through areas with existing infrastructure such as buildings, roadways, taxiways, and runways needs to be evaluated. Crossing of other existing or planned utilities or waterways also need to be considered. Pilot Access Transient pilots looking to use self-service fueling need good signage to the facility. At larger airports especially, the ease of finding the facility is a key element of site selection. Utilities The availability and presence of utilities such as electrical power, water, fire lines, sanitary and storm drainage systems, communications (phone line, fiber or wireless/radio), and potentially natural gas should be considered. Environmental Assessment for Previous Land Use If the proposed site had a previous use, an environmental assessment will indicate existing ground contamination and thus avoid future remediation costs for an existing condition. Additional Considerations • An access route for fire department trucks is required by code, • On-airport pipeline utility crossing, and • Storage tank protective structure. 9.3.2 Preliminary Design and Engineer’s Basis of Design Report In this initial phase, the engineering company will evaluate the site survey and existing con- ditions report and prepare one or several concept designs that are then put into the engineer’s basis of design report. Other items such as owner decisions on project direction, critical system- sizing criteria, supporting utility requirements, and development or refining of construction cost estimates can be documented and included in the basis of design report as well. The basis of design report provides a historical record of the project evolution and defines project options and direction. It can also serve as supplemental material to the construction documents. The report is a living document, receiving updates as the design progresses from preliminary concepts through 30%, 60%, and 100% review points. Early versions of the report summarize the following: • Code criteria and regulations, • Design assumptions, • Initial investigations of existing conditions, • Proposed system size and performance parameters, • Descriptions of system components, and • Design alternatives (if necessary). While some larger projects may present multiple design options for decision makers to review, other smaller projects may have a simple and clear project definition with no design alternatives needed.

System Design 121 A large part of an initial engineer’s basis of design report is summarizing the initial investiga- tions, which could include: • Geotechnical investigation, • Environmental assessment, • Review of record information, and • Review of existing conditions for rehabilitation needs or violations of FAA standards. As discussed in Section 9.3.1, a geotechnical investigation and an environmental assessment provide a more complete understanding of existing conditions. These studies dictate ideal site locations and impact significant elements of facility design such as pavement design, foundation design, and drainage. The report may include a discussion on existing conditions and any notable needs for rehabilitation. Since FAA advisory circulars constantly undergo revisions, old construction may no longer meet current standards. Reporting current requirements and any violations helps in the design process. 9.3.3 Selection of an Alternative Through conceptual design and review, the airport sponsor will select a design alternative (if optional alternatives exist) and dictate the direction of the project. Once the selected alter- native is known, the engineering company will revise the basis of design report to describe all major aspects of the final design. The final engineer’s basis of design report will serve as a narrative for use in construction documents and as a history of decisions made during the design process. 9.4 Emergency Systems and Environmental Compliance Emergency systems and environmental compliance considerations should be incorporated throughout the design process. The engineering team will examine and improve as necessary emergency systems and make sure that all aspects of the project comply with federal, state, and local environmental regulations. As the design progresses, it becomes critical to ensure all requirements are being accounted for appropriately to avoid potential permitting delays. 9.4.1 Emergency Systems Emergency systems associated with airport fuel systems typically include emergency fuel shut- off (EFS) systems, fire alarm systems, and spill control provisions. Emergency Fuel Shutoff Systems In the event of a fuel spill, any fueling operations in the vicinity are code-required to be stopped immediately and not recommenced until the spill has been cleared (National Fire Protection Association, 2017). All fuel dispensing systems should be equipped with handheld deadman control to stop the flow of fuel when the operator releases the handle. Deadman control design requirements for fuel facilities and fueling vehicles can be found in NFPA 407 5.1.7.1 and 6.1.7. While a deadman control can be used to stop the flow of fuel from a particular dispensing point, an EFS system can be used to stop flow in the entire hydrant system or parts thereof and at the storage/pumping facilities, isolating different portions of the system. An EFS system typically consists of stationary pushbutton stations located outside of prob- able spill areas and near the route used to leave the spill area or to reach the fire extinguisher.

122 Airport Management Guide for Providing Aircraft Fueling Services EFS stations are usually located at the loading stations and near the fuel facility. Normally, these are separate stations but may be combined in some cases. It is up to the Authority Having Jurisdiction, usually the fire marshal, to determine if this setup is acceptable (ANTN Digicast).1 The separation of stations allows isolation of the fuel if an event occurs at either of these locations. As an option, an alarm can be connected to the EFS that alerts the airport fire station. As a minimum, it is recommended that an EFS alarm be provided at the fuel storage facility. EFS requirements can be found in NFPA 407 5.1.9, 6.1.9, and A.5.1.9 (National Fire Protection Association, 2017). The operation of EFS systems are discussed in further detail in Chapter 11.2. Fire Alarm and Protection Fire alarm stations can be provided in locations similar to the EFS pushbutton stations but are typically separate from the EFS stations. An EFS activation may not necessarily require a fire department response. If the size of the spill meets the code-defined criteria (10 feet in any direction or over 50 square feet in area), the fire department must be notified. The requirements for design and installation of fire alarm systems should be vetted with the local fire marshal. Fire extinguisher and protection requirements can be found in NFPA 407 5.1.10 (National Fire Protection Association, 2017). Back-up Generators Although not considered a life safety “emergency” back-up system, standby electrical power generators are often provided for airport fuel systems where continuous fuel operations are considered critical to airport operations. Airport management and the design engineers should consider the impact of power outages on airport operations and in turn the impacts on the fuel system. Provisions for back-up power can range from a portable generator connection to a permanent fuel-powered generator for the fuel facility. Emergency Eyewash Stations OSHA has regulations for emergency shower and eyewash stations. 29 CFR Part 1910.151(c) is a general requirement applicable to all facilities that requires the installation of emergency shower or eyewash station equipment as a form of first aid. More specific regulations are in place for industries that handle hazardous materials. The regulations specify where and when the equipment must be available. The American National Standards Institute and the International Safety Equipment Association provides guidance on the selection, installation, operation, and maintenance of the equipment.2 9.4.2 Environmental Compliance Environmental compliance manifests in multiple different design features. The items discussed below include required permits for construction and operation as well as system components to be considered during the design process. All of these items are an integral part of minimizing the environmental impact of a fueling system. National Environmental Policy Act Review Process As mentioned in Chapter 3, the National Environmental Policy Act (NEPA) review process must be followed when a federal agency develops a proposal to take a major action. As part of this process, the airport must prepare one of three levels of analysis: 1 https://www.antndigicast.com/_vidDocs/Inspecting%20Fueling%20Facilities.pdf. 2 https://www.grainger.com/content/qt-emergency-shower-eye-wash-stn-req-120.

System Design 123 1. Categorical Exclusion (CATEX), 2. Environmental Assessment (EA)/Finding of No Significant Impact (FONSI), or 3. Environmental Impact Statement (EIS). The CATEX form is a series of “yes” or “no” questions focusing on environmental concerns. Some of the primary topics mentioned in this form include: • Air and Water Quality; • Endangered and Threatened Species; • Floodplains and Wetlands; • Hazardous Materials; • Historical, Architectural, Archaeological, and Cultural Resources; and • Noise. If any questions answered in this form indicate potential disturbances, CATEX may not apply to the proposed construction project. In this case, an EA is prepared to determine whether the proposed action will cause significant environmental effects. An EA lists environmental impacts, the proposed actions and alternatives, and agencies and contacts who have been consulted through the process. If no significant environmental impacts are found, the NEPA process ends with the issuing of a FONSI. If the project is determined to significantly impact environmental quality through the EA, an EIS is required. The EIS is the most involved environmental analysis requiring a thorough review of all alternatives and a public review process. The EIS process ends in a Record of Decision.3 This process should be initiated during design because approval is required prior to construc- tion. Depending on the level of document, the review process can be quite lengthy. Additionally, mitigation measures might be required as part of the design. The design engineer, typically a hired consultant, generally walks through the NEPA process with the airport and assists in completing the required documentation. Spill Prevention, Control, and Countermeasures Plan The SPCC plan is usually developed concurrently with design by the project engineer or a hired consultant. The design of secondary containment must meet the requirements and all information regarding the sizing and location must be included in the SPCC plan. 40 CFR Parts 110 through 112 include regulations for oil pollution prevention established by the EPA. This includes the SPCC rule to help facilities prevent a discharge of oil into navigable waters or adjoining shorelines and contain the discharge. Part 110 addresses requirements for spill reporting and Part 112 addresses requirements for preparing and implementing an SPCC plan (SBO/SBEAP National Conference, 2008). Facilities are subject to the SPCC rule if the total aggregate capacity of aboveground oil storage containers is greater than 1,320 gallons of oil or if the total aggregate capacity of completely buried storage tanks is greater than 42,000 gallons of oil. The SPCC plan must include a description of the fueling components at the facility, fuel transfer procedures, and the type of overflow or spill protection a fuel system has in place. The length of the plan and level of detail can vary greatly among airports depending on storage capacity and spill history.4 The SPCC plan also requires the facility owner to describe how they will comply with security requirements. These include how they will secure and control access to all oil handling, process- ing, and storage areas. The facility must be able to secure master flow valves, drain valves, and 3 www.epa.gov/nepa/national-environmental-policy-act-review-process. 4 https://www.rmagreen.com/rma-blog/what-is-an-spcc-plan.

124 Airport Management Guide for Providing Aircraft Fueling Services starter controls on the fuel pumps. Out-of-service and loading/unloading connections on oil pipelines must be secured. Lighting must be appropriately designed to prevent acts of vandalism and assist in the discovery of fuel discharges.5 Secondary Containment One of the main elements of the SPCC plan is secondary containment for bulk containers, defined as any container (with a capacity of 55 gallons or more) storing oil at a facility. Bulk oil storage containers include tanks, containers, drums, and mobile or portable totes. All oil-filled equipment, such as transformers, hydraulic systems, lubricating systems, gear boxes, machining coolant systems, heat transfer systems, circuit breakers, and electrical switches, also require secondary containment. Secondary containment may be active or passive if discharge cannot escape.6 Active secondary containment requires an employee to contain the spill. Examples include: • Deploying drain covers, • Using a spill kit, • Having a spill response team, and • Closing a gate valve. Given a potential lack of staff and resources, passive secondary containment may be more appropriate. These controls are in place at all times. Examples include: • Placing containment pallets under drums and other containers, • Surrounding machines and containers with berms or curbs sufficiently impervious to spilled oil, • Erecting impermeable retaining walls around machines and containers, • Using impermeable liners, • Placing drip pans under machines and containers, • Installing sumps and collection systems, and • Using double-wall tanks. Secondary containment must be designed to contain the volume of the largest container in the containment area with sufficient freeboard.7 There are two methods typically used for determining this value: 1. Contain 110% of the volume of the largest container, or 2. Contain the volume of the largest container in addition to rainfall from the 25-year, 24-hour storm for the facility location. Spill and Overfill Protection Spill and overfill protection is a critical component in system design. Devices for this purpose include high liquid-level alarms, high liquid-level pump cutoff, direct audible or code signal communication between container gauge and pumping station, or a fast-response system that allows one to determine the liquid level of each bulk storage container. It is important to ensure that systems are monitored if necessary and to regularly test liquid sensing devices per the manufacturer’s specifications. Systems should automatically shut off flow when the system is 95% full and/or alert the operator by restricting the flow or triggering an alarm when the system is 90% full. 5 https://www.epa.gov/sites/production/files/2014-05/spcc_101_for_ag_0.pptx. 6 https://www.newpig.com/expertadvice/shedding-light-on-spccs-secondary-containment-requirements/. 7 Freeboard is a factor of safety that can compensate for the many unknown factors that could contribute to spill heights greater than expected.

System Design 125 Corrosion Protection Corrosion protection is an important consideration when designing buried metal tanks, piping, and other components of fuel storage systems. If these are not properly designed, they are susceptible to corrosion, such as pitting or delamination that could cause leaks. Protection may be accomplished by coating metal tank systems to isolate them from contact with corrosive soil, or using cathodic protection. The two types of cathodic protection for steel tank systems are galvanic and impressed current.8 On airports, cathodic protection systems are typically inspected and tested on an annual basis, with more frequent operational checks where practical (see 40 CFR Part 280). If an airport hydrant system contains ASTs directly connected to underground hydrant piping and 10% or more of the total system capacity, including underground piping, is beneath the surface of the ground, it is also regulated under 40 CFR Part 280. These regulations set forth additional requirements for secondary containment, spill and overfill prevention, corrosion protection, release detection, alarms, operator training, regulatory reporting, and recordkeeping (EPA, 2017). Hydrant Systems and Pipelines Hydrant systems must be designed considering spill and leak prevention. Newer hydrant designs allow for side entry of pipes into fuel system pits, as opposed to entry from the bottom. This allows for catchment of spilled fuel at the bottom of the fuel pit and lowers the chance of the spilled fuel migrating into the soil through the entry pipe seal. It also makes for easier removal of spilled fuel from the pits. In self-service systems, recommended features include lighted covers, small enclosures to provide a dry environment for transactions, electronic fuel level and leak monitoring systems, automatic fire suppression system, and vehicle collision protection (Misegades, 2012). Carbon steel pipelines are used to transport jet fuel on airports. These pipelines typically have an external coating, cathodic protection, and an internal coating to minimize corrosion and fuel contamination. The pipelines should be designed to allow for periodic cleaning and inspections. Piping design fuel velocities are typically between a self-cleaning velocity of approximately 3 feet per second to a velocity that limits the potential for hydraulic “hammer” or surge to approximately 10 feet per second. Mobile Refuelers Transfer lines from the fuel tank farm may also connect to refueler loading stations for truck (refueler) loading, as opposed to or in addition to the hydrants. The loading stations are typically large enough to serve four to six refuelers at one time. As discussed in Chapter 3, a refueler is a mobile vehicle with a 5,000- to 10,000-gallon size fuel storage tank. It is equipped with pumps, filtration equipment, hoses, and other equipment required to fuel aircraft. It is best practice for loading stations to have overfill protection equipment, curbed concrete paving, and an oil/water separator to control spills. The refueler transports the fuel from the loading station to the aircraft. Once at the aircraft, it should position itself in a clear path in case of emergency. It should not be positioned where it might obstruct aircraft exits to loading areas. The tires on the refueler should always be chocked and the emergency brake set before fueling begins. 8 https://secure.apps.nd.gov/doh/operator/Training/OperatorTraining_CP.pdf.

126 Airport Management Guide for Providing Aircraft Fueling Services Leak Detection Depending on local requirements, it might be required that new installation of tanks and piping be double-walled with continuous monitoring of interstitial space. These systems may include hydrocarbon liquid sensors installed to detect leaks from any portion of the inner tank and piping system—typically the lowest portion of the interstitial space contains product if a leak occurs. The system may be capable of tank “tightness” testing (or an equivalent hydrostatic monitoring), automatic tank gauging, and automatic line leak detection. Release detection can be monitored and recorded monthly. State and local agencies may also require soil vapor or groundwater monitoring or have other regulatory requirements above and beyond federal regulatory requirements. The FAA has published multiple guidance documents related to fuel storage USTs. These include FAA Order 1050.15A and FAA Order 1050.16. 9.5 Final Design Final design commences after the project scope has been formally defined and desired options and arrangements determined. The preliminary design is typically completed near a 30% complete overall design stage and then followed by execution of the final design. There can be progress design hold points at the 30%, 60%, 90%, and 100% design stages, as determined by the owner and project team, to allow for staged review of the project design and its param- eters. When the design is substantially complete (90% to 100%), permitting submittals can be prepared and submitted to the appropriate permitting agencies to help expedite the permitting process, rather than wait until final construction bid documents are prepared for issuance to bidders. 9.6 Construction Documents and Permits 9.6.1 Documents Needed for the Construction of a Fuel Facility This section provides an overview of construction documents that are required. For projects funded through federal AIP grants, these construction documents and specifications must follow FAA regulations or advisory circulars for the design and construction process. Construction documents will include the following: • Technical Specifications • Construction Drawings – Stormwater Pollution Prevention Plan (SWPPP) – Construction Safety and Phasing Plan (CSPP) • Bid Advertisement • General and Special Conditions Specifications Technical Specifications Specifications should incorporate a clear and accurate description of the technical require- ment for the material or product to be constructed or installed. The FAA provides a series of construction technical specifications for the construction of airports in AC 150/5370-10.9 The product and material items covered under the advisory circular include general provisions, 9 The FAA continually provides revisions to this document. At the time of publication, 5370-10G was in place, with 5370-10H in draft form. The 10H document will eventually supersede 10G.

System Design 127 earthwork, flexible base courses, rigid base courses, flexible surface courses, rigid pavement, fencing, drainage, turfing, and lighting installation. Additionally, if the project funding is not federal or AIP, then current state or local government technical specifications may be used instead or in addition to FAA specifications. Construction Drawings Project drawings should incorporate details to provide a clear and accurate depiction of the material or product to be constructed or installed. Drawings are typically provided by a vendor or consultant to define the scope of work and provide a scale image of the item to be constructed. A variety of drawing formats and types are used to demonstrate the material or product, including floor plans, sections, elevations, and details. Drawings that are issued for construction should be sealed and signed by a licensed engineer or architect to ensure that the full responsibility is borne by the professional. Therefore, any defect or failure would be under the responsibility of the licensed professional. Other construction documents include SWPPP10 and CSPP. Each of these documents are to be prepared before any construction begins. SWPPP provides an outline and details of how a construction project will minimize stormwater pollution. Construction sites are a source of sediment and other pollutants that can cause significant harm to rivers, lakes, coastal waters, and flood control facilities. CSPP serves as a companion document to the project plans and specifications for the project, following AC 150-5370-2G—Operational Safety on Airports during Construction. CSPP is developed to minimize the project impact on the airport and to provide a logical sequence of construction activities while promoting safe airport operations. Bid Advertisement Once the technical specifications and construction drawings have been completed and sealed by a licensed professional, they are ready to be issued publicly. This is the official notice of a search for qualified bidders on a construction project. The notice usually includes information about the project and provides the public with a contact name for details about solicitation, rules for the submission of bids, and awarding of the contract. General and Special Conditions Specifications General conditions contain standard terms and conditions that are generally applicable for all contracts irrespective of the nature of work, supplier type, and other factors. FAA’s AC 150/ 5370-10G—Standards for Specifying Construction of Airports contain general provisions that are to be used for all federally funded projects. Special conditions relate to a specific contract, including the terms and conditions of the specific contract, and vary depending upon the nature of work, supplier type, and other factors. It is not be advisable to change or adjust the general conditions, as these terms and conditions might have a long-term legal implication and should be reviewed by the legal team. 9.6.2 FAA Requirements for Construction on Airports Regardless of AIP funding eligibility, the FAA requires completing an Airport Layout Plan (ALP) and filing of FAA Form 7460-1—Notice of Proposed Construction or Alteration for airspace protection. Consultants are generally enlisted to complete these two requirements. 10 https://www.epa.gov/npdes/developing-stormwater-pollution-prevention-plan-swppp.

128 Airport Management Guide for Providing Aircraft Fueling Services Airport Layout Plan Any airfield construction requires an update to the ALP if the facility design is performed outside of the master plan process. A current ALP that depicts the proposed project, which has FAA approval from the standpoint of safety, utility, and efficiency of the airport, shall be required before a development project is approved. The ALP approval process follows the Standard Operating Procedure for FAA Review and Approval of Airport Layout Plans (FAA, 2013). Standards for ALPs can also be found in AC 150/5070-6B—Airport Master Plans. FAA Form 7460-1 Any construction project on or near an airport requires administering 14 CFR Part 77—Safe, Efficient Use, and Preservation of the Navigable Airspace to promote air safety and the efficient use of the navigable airspace. To accomplish this, aeronautical studies are conducted based on information provided on an FAA Form 7460-1. This study completed by the FAA evaluates how proposed construction will impact protected airspace. Fuel facility construction could impact the 14 CFR Part 77 surface, which is an invisible surface above and around the runway. The FAA provides one of the following responses for Form 7460-1 when conducting aeronautical studies of proposed construction on or near an airport. • Notice of Presumed Hazard, • Determination of Hazard, and • Determination of No Hazard. The final FAA determination dictates if the proposed construction will be permitted, not permitted, or require additional actions for the project, such as installing an obstruction light. As the FAA has no authority regarding approval or disapproval of the proposed construction, a determination only suggests or recommends a mitigation action. The final decision of the pro- posed development is governed by the airport sponsor. The FAA regulates through the Federal Aviation Regulations with advisory circulars that provide guidance, airport improvements, and standards. If a determination of hazard is issued demonstrating a proposed development to be a hazard to navigable airspace, then the FAA takes corrective action to maintain flight safety. This action may result in a prescriptive change to the layout, use, or airspace of the airport facilities to accommodate the proposed development. 9.6.3 Permits Multiple agencies may issue permits and registrations for fuel system construction and opera- tions. These are typically location dependent and can emanate from city, county, state, or federal agencies. Required permits and registrations could include: • Site grading, • Structural foundations, • Electrical, • Stormwater, • Fire protection, • Fuel storage tank construction and operation, • Operational air emissions, and • Environmental provisions (described in Section 9.4.2). In some instances, regulatory and plan review officials may require summary descriptions of designs in addition to analysis and calculations for supporting infrastructure such as fire protection systems, stormwater drainage, or structural foundations.

System Design 129 9.7 Bid Package The fuel system design is typically compiled into a bid package for competitive bidding by multiple companies. Variations in project delivery methods mentioned will affect bid document packaging and the sequence of design execution. 9.7.1 Bid Package Differences for Design-Bid-Build and Design-Build Design-Bid-Build With a DBB scenario, the selected system designer completes the full design prior to it being bid. The bid documents are then provided to respective bidders, typically general or prime contractors, who provide comprehensive bids for the entire project. This requires either the owner or the engi- neer to manage the bidding process, from bid solicitation through obtaining bids. The bids are then reviewed and conditioned by the owner and the engineer prior to making a contractor selection. Design-Build DB projects require the selection of a combined design-construction team, consisting of both designers and construction contractors. DB team selection can occur before significant design progress or after a preliminary design bid has been completed. A preliminary design bid package is typically at a 30% to 50% design level and is used to define parameters of the project scope to potential DB bidders. It can be difficult to establish accurate final construction costs and pricing at the onset of a project or even after preliminary design. The award of DB projects and funding approvals are often staged as the project progresses. The initial preliminary design can be awarded as an initial project phase. Then, costs can be further defined and tentatively approved before further- ing design efforts. Once the design approaches completion, construction costs can be finalized, based on “hard” bids from subcontractors and, in turn, the general contractor. The selected DB team is responsible for soliciting and obtaining subcontractor bids, reviewing and conditioning them, and presenting an overall price to the owner. This eliminates the need for substantial owner involvement in the bidding process. 9.7.2 Request for Proposal and Bid Form The following depicts an example of a construction bidding package for an airport fuel system: “Front End” Specifications • General Terms and Conditions • Supplemental Terms and Conditions • Summary of Work • Project Meetings, Schedules, and Reports • Submittals • Equipment and Materials • Contract Closeout Technical Specifications • Demolition • Air and Water Pollution Control • Earthwork (Excavation and Embankment)

130 Airport Management Guide for Providing Aircraft Fueling Services • Base Course • Asphalt Paving • Concrete Paving • Concrete Joints and Joint Seals • Structural Concrete • Pavement Markings • Drainage and Underdrain • Topsoil and Seeding • Supporting Utilities • Fuel System Components including Tank, Pumps, Meters, and Piping • Electrical Power, Controls and Communication • Fire Protection Construction Drawings • Civil Site Plans – Horizontal and Vertical Control – Construction Phasing and Safety – Existing Conditions and Demolition – Stormwater Management Plan – New Site Geometric Layout – Grading and Drainage – Pavement Elevation – Pavement Joint Layout – Pavement Marking Layout – Miscellaneous Details – Landscaping – Site Utilities and Electrical • Utility/Piping Profiles • Structural Plans and Details • Fuel System Flow Diagrams • Mechanical Fuel System Plans and Details • Fire Protection Plans and Details • Electrical Power Distribution One-Line Diagram • Electrical Hazard Area Classification Plan and Details • Electrical Plans and Details • Electrical Wiring Diagrams and Control Schematics It is important that prospective bidders are qualified to perform the specialized work asso- ciated with an airport fuel system. General contractors—building, mechanical, and plumbing contractors—are not typically experienced in aviation fuel systems. Contractors are commonly “pre-qualified” and vetted by the airport sponsor or design engineer prior to being allowed to bid, or qualification provisions and limitations are included in the specifications to ensure that bidders are experienced in this type of work. As the project progresses into bidding and construction, Issue for Bid documents, Issue for Construction documents, and Record Drawings are produced. Record Drawings are provided after construction with as-built information and any changes made to the design plan. 9.8 Construction Responsibilities Depending on the magnitude of the construction project, the project sponsor and the design engineering team will have varying responsibilities during construction. In general, the airport will hire the design engineer to perform onsite observation of construction and act as the resident

System Design 131 project representative. For DBB, the owner will almost always require representation. For DB, the responsibility of construction oversight falls more in the hands of the contractor, but the airport still needs representation to ensure construction standards are held. In rare circumstances, the project sponsor may provide the onsite representation, but this requires expertise in construction observation. AIP-funded projects require daily and weekly construction reports, weekly construction meet- ings, a summary report of material testing, review of contractor payroll, monthly contractor pay applications, and many other specific processes that must be adhered to for project payment to be granted. In addition, a standard process for closing out the AIP Grant is required. In a final construction report, engineers provide a financial summary of the project, a complete record of FAA acceptable test results, a brief narrative of construction, and additional project informa- tion. Typically, an airport would hire an experienced engineer to help navigate these reporting requirements and ensure that protocol for AIP-funded projects is followed. Non-AIP-eligible projects are not held to the federal requirements, but these still have contract documents and technical specifications the contractor is required to follow. An airport likely will hire an onsite engineer to ensure the contract documents are upheld. Table 9-2 provides a list of responsibilities of a project sponsor and the onsite representative. This table assumes the sponsor does not act as the onsite project representative. A more detailed discussion on these construction responsibilities follows. Project Delivery Method Level of responsibility and involvement of a project sponsor depend on whether the project is DBBDB. The construction of a DBB project can involve significantly more owner participa- tion and effort, as the owner has direct, separate contract agreements with the designer and the construction contractor. This means through contractual requirements, all communications and decisions need to be handled through the owner’s representative, and not directly between the designer and the contractor. For a DB scenario, the owner has a single point of interface with the design-builder and is not required to interface and coordinate between the designer and contractor, as they are a single entity. Project Schedules Schedules for both design and construction are significant to project planning. A design schedule includes deadlines for deliverables such as 30% design, 60% design, and 100% design while a construction schedule outlines the timing of major work items and forecasts project completion. Table 9-2. Construction responsibilities for the project sponsor and engineer. Responsibility Description Engineer Sponsor Project Delivery Method Determination of DBB or DB method X Project Schedules Design and construction scheduling X X Quality Control Ensuring of proper workmanship X X Quality Acceptance Testing Review and compiling of tests X Submittals Review of materials for compliance X Inspections Interim, permitting, final X X System Startup System testing for owner acceptance X X Final Closeout Final retention, paperwork, project acceptance X Warrantees Inspection of warrantee items before expiration X Source: Prepared by KRAMER aerotek, 2018.

132 Airport Management Guide for Providing Aircraft Fueling Services A preliminary construction schedule can be estimated by the designer, but needs to be finalized by the installing contractor. It is typically a living document that is updated continuously as the construction proceeds. Schedule and progress review meetings are commonly held on a weekly, biweekly, or monthly basis during construction. During project planning, a project sponsor must clearly outline time restraints for design and construction phasing. Active involvement in project meetings and schedule revisions will help an airport manager continue airfield operations during construction. General Quality Control The appropriate personnel need to be involved in establishing, monitoring, and maintaining quality control throughout construction. This should include representatives from the owner, designer, and installing contractor to ensure owner satisfaction, conformance with the design intent, and quality of workmanship. Facets of construction quality control include materials and installation quality acceptance testing and test report documentation, equipment and shop drawing compliance submittals for engineer review and acceptance, periodic inspections by the engineer and owner, and system startup and commissioning involving all parties. Documentation of all quality control aspects and reports should be well organized and packaged for project records. Quality Acceptance Testing Different types of progressive quality acceptance and integrity testing are performed during fuel system construction. Common fuel system construction testing requirements are: • Soil compaction; • Base course compaction, moisture contents, and gradations; • Asphalt densities; • Concrete sampling and strength testing; • Leak and pressure testing of piping systems; • Tank tightness testing; • Testing/checking field-applied coating thicknesses; and • Electrical circuit continuity checks and functional testing. Compliance Submittals/Shop Drawings Informational submittals for all specified equipment and materials on a construction project are prepared by the suppliers and installing contractors and submitted to the owner and designer for review and acceptance. These submittals range from qualifications/accreditation of testing personnel to catalog cuts and supporting data for furnished equipment to actual contractor- prepared layout plans for piping, electrical panels, equipment skids, etc. It is imperative that these submittals be reviewed and accepted prior to actual purchasing or construction of system components, to ensure compliance with the design requirements. Inspections Different types of inspections are typically performed throughout construction. Some examples include the following: • Periodic construction progress inspections to confirm conformance with design intent. • Hold point inspections by permitting authorities, which could include grading and erosion control, foundations, and utility and electrical installations. The engineer and sponsor would coordinate the inspections. • Final punch list inspections where owner and designer determine remaining items requiring completion to finish the project. A representative from the FAA attends this inspection on an

System Design 133 AIP-funded project. Follow-up inspections are performed to ensure all punch list items are completed. System Startup and Commissioning Once the installation is substantially complete and all preliminary integrity checks and testing is completed, the system may be wetted with fuel for startup and commissioning. Startup involves the contractors and the designer testing all aspects of the system prior to final commissioning, which is the formal demonstration of satisfactory system performance operation and acceptance by the owner. Items included in the fuel system startup and commissioning are: • Flushing. Once the system has been wetted with fuel, it must be flushed to ensure a clean system and good fuel quality. Flushing requirements and fuel cleanliness acceptance criteria are defined in ATA Specification 103. Fuel, not water, should be used for flushing airport fuel systems. Water is considered a major contaminant of aircraft fuel and can be difficult to remove from piping and equipment if introduced in large quantities. Sampling of fuel and testing of various fuel quality parameters is integral to the flushing operation. • Instruments and controls. Functional testing and calibration of all instruments and controls is required to verify adequate performance. • Performance testing. Testing of individual equipment items such as pumps and motors, control and motor-operated valves, instrumentation/control set points, and resultant activations. • Operational testing. Putting the system through its paces by demonstrating actual operations such as refueler truck loading, transport truck unloading, direct fuel dispensing, and fuel recirculation. • Alarms testing. Simulation of alarm events such as high tank level, alarm/shutdown on a no-flow condition, and excess water in filtration. • EFS system testing. All EFS pushbuttons and resultant shutdown actions are required to be tested initially and on a periodic basis afterwards. Retention and Contract Closeout Generally, a percentage of the total construction cost is withheld from payment until completion of the system, construction, and commissioning (e.g., 5% to 10%). This is identified on individual invoices as they are processed during the construction period. Once the project construction and commissioning are complete, and the punch list items satisfactorily resolved, this retention can be released and final payment made. Sometimes a smaller retention may be withheld from payment until the end of the warranty period as described below. Warranties The installing contractor is typically required to provide an overall 1-year warranty for the complete fuel system and its components. Manufacturer warranties for individual pieces of equipment can extend beyond that, either per their standard warranties or by purchasing an extended warranty if desired by the owner. In either case, it is best practice to perform a detailed warranty inspection before the end of the contractor warranty period to determine any items requiring attention before the warranty lapses. 9.9 References 40 CFR Part 112—Oil Pollution Prevention. Available: https://www.law.cornell.edu/cfr/text/40/part-112. 40 CFR Part 280—Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks (UST). Available: https://www.law.cornell.edu/cfr/text/40/part-280. 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.

134 Airport Management Guide for Providing Aircraft Fueling Services EPA. Resources for UST Owners and Operators. Available: https://www.epa.gov/ust/resources-ust-owners-and- operators#corrprott. FAA. Fuel Storage Tanks at FAA Facilities, Order 1050.15A. April 30, 1997. Available: https://www.faa.gov/ documentLibrary/media/order/energy_orders/1050.15A.pdf. FAA. Implementation Guidelines for Compliance with Underground Storage Tanks (UST) Regulations (RIS: PS 1050-6), Order 1050.16. March 16, 1989. Available: https://www.faa.gov/documentLibrary/media/Order/ FAA_Order_1050.16.pdf. FAA. AC 150/5070-6B—Airport Master Plans, July 29, 2005. Available: https://www.faa.gov/airports/resources/ advisory_circulars/index.cfm/go/document.information/documentNumber/150_5070-6B. FAA. AC 150.5370-10G—Standards for Specifying Construction of Airports. July 21, 2014. Available: https:// www.faa.gov/documentLibrary/media/advisory_circular/AC-150-5370-10G-updated-201605.pdf. FAA. Airport Compliance Manual, Order 5190.6B. September 30, 2009. Available: https://www.faa.gov/airports/ resources/publications/orders/compliance_5190_6/media/5190_6b.pdf. FAA. Standard Operating Procedure for FAA Review and Approval of Airport Layout Plans, ARP SOP 2.00. October 1, 2013. Available: https://www.faa.gov/airports/resources/sops/media/arp-SOP-200-ALP-Review.pdf. 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. SBO/SBEAP National Conference. Spill Prevention Control and Countermeasure (SPCC) Regulations Fact Sheet. 2008. Available: http://dec.vermont.gov/sites/dec/files/ead/documents/FactSheets/Factsheet_SPCCRegs.pdf. Sera, A. “Jet Fuel Pipelines and Storage Require Special Operation, Maintenance Considerations,” Pipeline & Gas Journal, Vol. 236, No. 12, 2009. Available: https://pgjonline.com/2009/12/03/jet-fuel-pipelines-and-storage- require-special-operation-maintenance-considerations/.

135 10.1 Selecting an Operating Model 10.2 Fuel Pricing Strategy 10.3 Decision on a Fuel Supplier 10.4 Branded Versus Unbranded Fuel 10.5 Staffing Requirements and Training 10.6 Budget 10.7 Cash Flow Considerations 10.8 Risk Management 10.9 References Chapter 10 walks through important business decisions an airport sponsor will make to estab- lish the airport’s fueling operations including decisions about offering branded or unbranded fuel, the appropriate level of staffing and training required, setting up a fuel budget, and the basic steps needed to manage the risks of a fueling operation. Table 10-7 can be downloaded as an Excel worksheet from Appendix B on the TRB website and customized for specific airports. Appendix B can be found by searching on “ACRP Research Report 192.” 10.1 Selecting an Operating Model Airports use three basic options for providing fuel services: (1) signing a traditional lease with an FBO to develop and operate an FBO enterprise on the airport for profit, (2) hiring an individual or a management company to operate airport-owned FBO assets with ongoing directions from the airport sponsor, or (3) employing airport staff to perform FBO services. A full discussion of these options as well as the importance of minimum standards are presented in ACRP Synthesis 86: Airport Operator Options for Delivery of FBO Services (2018). In this chapter, the focus is on airport control of FBO services either by contract management (option 2) or self-operation (option 3). Airports that offer fueling services most commonly self-operate the service. Alternatively, an airport sponsor can contract with an individual or management firm to handle the fueling operation. A management contractor serves by agreement for the airport sponsor. The decision to self-operate or contract depends often on the answers to these questions: • What fueling services are offered at the airport? – Self-service – Assisted-service – Full-service • On a weekly basis, how many gallons of fuel sold require assisted-service or full-service fueling? C H A P T E R 1 0 Operating Decisions

136 Airport Management Guide for Providing Aircraft Fueling Services • Does the airport have staff on location already? If so, can existing airport staff handle the anticipated demand for aircraft fueling? • What training is required for airport staff to manage and operate full-service or self-service fueling? If an airport sponsor does not maintain personnel on airport property and self-service fueling is offered, then contract management of the fueling operation makes sense. Table 10-1 compares the two operating models, which are further described in the sections that follow. 10.1.1 Airport-Operated Fueling and Proprietary Exclusive Rights An airport sponsor can exercise the right to self-perform fueling and other FBO services. To do so, the airport provides all facilities, employees, and equipment and is responsible for Management Options Contract Management Self-Perform Relationship of Parties Independent management contractor with well-defined contract responsibilities Airport has its own staff fuel aircraft, maintain inventory, prepare sales records and reports Risk and Control Assumed by airport Assumed by airport Justifiable Duration of Responsibilities 5 to 10 year contract Indefinite On-Airport Competition Open to additional operators Exclusive proprietary rights Business Plan and Budgets Management contractor prepares a business plan and annual contract year budget that must receive airport sponsor approval Airport developed Decision Making Concerning Fueling Operations Airport sponsor Airport sponsor Fuel Operations Expertise Management contractor Airport staff Fueling Staff Contractor recruits and trains staff Public employees recruit and train staff according to Human Resources rules or on a special basis. Potential for cross utilization of airport staff Capital Investment Airport sponsor Airport sponsor Revenues Fixed management fees to operator plus incentive bonuses in contract. Residual to airport. Or, variable fee based on volume or sales with a percent of gross revenue for line services Revenues to the airport sponsor Costs to Airport All costs assumed by airport unless management contract stipulates specific maintenance requirements All direct and indirect costs borne by the airport Insurance Requirements Airport sponsor insures property and management contract insures operations Airport sponsor insures both property and operations Fuel Marketing Primarily airport unless marketing specified in terms of contract Airport responsibility, possible joint marketing with fuel supplier Source: Adapted from ACRP Synthesis 86: Airport Operator Options for Delivery of FBO Services, 2018. Table 10-1. Operating model for airport-operated fueling services.

Operating Decisions 137 capital investment, all startup costs, as well as ongoing operations and maintenance expenses. In a nutshell, the airport sponsor shoulders all of the risk and retains all of the rewards. For most federally obligated airports, an airport sponsor is prohibited from granting a right to a single operator for the provision of an aeronautical activity to the exclusion of others. However, an airport sponsor may decide to exercise its proprietary exclusive rights.1 Proprietary exclusive means that the airport is the sole provider of fuel and other aeronautical services. All staff must be the airport sponsor’s employees and the door is closed for an additional FBO operator. Several airports operate fueling and other services as proprietary exclusive facilities such as Page Field in Fort Myers, Naples Municipal Airport, Springfield-Branson Regional Airport, Sugar Land Regional Airport, and Fort Wayne International Airport. These airports are busy and might otherwise attract a private operator for fueling and FBO services; thus, the declaration of proprietary exclusive is a useful protective right. Many smaller GA airports do not sell enough fuel to attract a private operator. In these instances, it may not be necessary to declare proprietary exclusive rights as the airport can self-perform fueling without attracting competition. The decision by an airport sponsor to self-operate does require an evaluation of how the airport governing structure can affect a fueling operation. The following are important questions to consider: 1. Can the airport hire and fire staff without going through the governing body’s hiring process? Some airport sponsors form an LLC for the purpose of fueling and other aviation services to achieve a more independent operation. 2. Do the airport sponsor’s policies and enabling legislation permit the airport to pay market wages (minimum wages and competitive benefits) in contrast to governmental wages (living wages plus governmental benefits)? The fueling and aviation services industry is highly wage competitive. 3. Do the airport sponsor’s employee policies have features that would allow part-time employees? 4. Does the airport sponsor have concerns about its employees coming in direct contact with aircraft? 5. Does the airport sponsor self-insure a portion of its liability? If a portion is self-insured, how will an airport fueling operation add to the sponsor’s financial risk? 6. Will the budgeting and procurement procedures of the airport sponsor make it possible to order fuel and other aviation products as needed? 7. Is the airport sponsor willing to accept responsibility and liability for fuel system management and fuel quality? (Kramer et al., 2018) 10.1.2 Contract Management For contract management, an airport sponsor would select an individual or management company to staff and manage the fueling operation using equipment and facilities owned by the airport. The airport and manager have an agreement that involves a well-defined scope of responsibilities, a fixed price, and a performance bonus. Alternatively, the fueling operation can be run as a concession where the operator fee is based on volume or sales and a percentage of gross revenues for other line services provided. These agreements are typically for 5 to 10 years. 1 “The owner of a public-use airport (public or private owner) may elect to provide any or all of the aeronautical services needed by the public at the airport. The airport sponsor may exercise, but not grant, an exclusive right to provide aeronautical services to the public. If the airport sponsor opts to provide an aeronautical service exclusively, it must use its own employees and resources. Thus, an airport owner or sponsor cannot exercise a proprietary exclusive right through a management contract.” AC 150/5190-6—Exclusive Rights at Federally-Obligated Airports, January 4, 2007.

138 Airport Management Guide for Providing Aircraft Fueling Services The contract manager has no capital invested in airport facilities or equipment. The airport sponsor takes financial responsibility for the fueling operation and maintains control over the level of service and the price of fuel. In the case studies completed for this project, Pine Bluffs Municipal Airport in Wyoming has a contract manager that oversees the fueling operation, a prefabricated, free-standing, self-service unit that dispenses Avgas. The unit has a storage capacity of 12,000 gallons and is available 24 hours, 7 days per week. As an unattended facility, the town of Pine Bluffs keeps its operating costs down and markets itself as a low-price Avgas vendor in the region. Engagement of a contract manager exclusively for a fueling operation is somewhat less frequent than self-operation by airports. However, some airports such as Appleton International Airport solicit competitive proposals to manage airport-owned FBO facilities and offer a range of FBO services. 10.2 Fuel Pricing Strategy Chapters 4, 5, and 6 of this management guide provided a framework for airports to analyze the history of fueling services, competition for customers, and the airport brand. Each of these elements will inform the airport’s pricing strategy. Does the airport strive to be a low-price leader, or will the airport fuel prices be competitive, but perhaps not the lowest-price provider? Some airports have customers that are less price sensitive with respect to fuel. When formulating a pricing strategy, it is useful to consider Avgas and Jet A customers separately. The retail price for Avgas is a reliable proxy for the actual price paid for fuel. Some airports offer discounts to tenants or offer reduced prices for volume sales, pre-paid purchases, or on certain days (e.g., weekends, holidays, or special events). AirNav’s AirBoss discount program is also available through participating airports and FBOs. Self-service Avgas is also a mechanism to offer a discounted price to full-service fuel. Pricing for Jet A fuel is far less transparent, although the retail price posted does indicate an airport’s relative competitiveness. Volume purchases of Jet A are the norm, and many customers have contract rates pre-negotiated with fuel suppliers or with an individual airport FBO. There are also fuel discount cards that are available through fuel suppliers. CAA offers fuel discounts to members at designated FBOs.2 A consistent fuel pricing strategy and up-to-date online listings of fuel prices are essential elements of the airport fuel program. Available fuel management software allows individuals and flight departments to view retail and discounted fuel prices at airports throughout the country. Consequently, up-to-date listed prices for fuel are extremely important to individuals and corporate flight departments that are planning a trip. 10.3 Decision on a Fuel Supplier When an airport needs a delivery of Avgas or Jet A, the fuel manager orders fuel from its supplier if it is under contract, or if there is no contract, the manager checks the spot market to determine the lowest available delivered price and places an order with that vendor. Airport fuel managers typically receive weekly fuel price sheets and can observe short-term price trends from this information. 2 At this writing, no airport fuel providers participate in the CAA discount program.

Operating Decisions 139 All aviation fuel products, whether branded or unbranded, come from the same refineries. At the refinery terminal (also known as the rack), product is loaded into fuel trucks or pipe- lines for distribution. From the airport perspective, fuel deliveries may be made directly by the refiner, a reseller, or fuel distributor, or an independent fuel transport carrier, depend- ing on the supply arrangement. In the past, refineries operated many retail outlets for their products. For example, Phillips 66 and Air BP sold fuel directly to airports. The trend today is to sell aviation fuels primarily through resellers. As of 2017, Phillips 66 had approximately 85 remaining outlets but sold its branded fuel at 850 FBOs. Most fuel is sold through distributors (or resellers) such as World Fuel, Avfuel, Epic Fuel, City Service Valcon, Arrow Energy, and Perry Brothers. Some of these distributors focus on delivery of product in particular regions or specialize in different customer segments such as general aviation, commercial aviation, corporate flight departments, or military. There are also dedicated independent transport carriers that specialize in delivery of aviation fuels. These carriers contract with resellers to provide transportation services. The key decisions for an airport fuel provider include: 1. Will the airport sell branded or unbranded fuel? 2. Will the airport select a specific fuel supply through a competitive process and enter into a supply contract or purchase fuel products on the spot market? 3. Will fuel purchases involve full or partial loads? In practice, each region of the country is covered by several aviation fuel distributors. If an airport is likely to require partial load deliveries (of less than 8,000 gallons), selecting a fuel supplier that has other partial load customers in the area may reduce premiums paid on delivery of partial loads. 10.4 Branded Versus Unbranded Fuel Aviation fuel is sold as branded or generic fuel products. Branded fuel is sold under a trademark owned by a refiner or reseller. Sometimes an air- port will offer fuel that lists both the refiner and the reseller’s brand, such as Phillips 66 and World Fuel. The specific branding terms are part of the agreement an airport has with its fuel supplier. Branded products often carry a price premium compared to unbranded products, since they can be sold and delivered under a branded flag with an implicit guarantee of quality control from the terminal to an airport’s fuel storage facilities. Branded fuel is delivered according to terms specified in a fuel supplier contract. This contract may also involve other support services provided by the supplier. Branded fuel can be sold as unbranded product, but the reverse is not true. Unbranded fuel typically comes from the same terminal as branded fuel and is subject to state and federal regulations, but it is transported typically by an independent transport carrier. Purchase of unbranded fuel usually involves a supply arrangement that is not contractual. An airport purchasing unbranded fuel is responsible to check the fuel quality upon delivery. The delivered cost of unbranded fuel is usually less expensive than branded fuel. For smaller GA airports, the decision to offer branded or unbranded fuel is an important one and determined by an airport’s pricing strategy, volume of fuel sales, customer requirements, and desired support services from the fuel supplier. Each option is discussed in greater detail in the following sections.

140 Airport Management Guide for Providing Aircraft Fueling Services 10.4.1 Branded Fuel When a fuel supplier distributes branded products, transportation and quality control are incorporated into the service. In addition, branding fuel suppliers also offer different optional services, the most common of which are shown in Table 10-2. Depending on the fuel company, some of these services are included in the price of fuel, while others may require additional fees. Included services are discussed during contract negotiations with a fuel supplier. A branded fuel supplier provides the airport fuel manager with instructions for daily, weekly, monthly, and annual quality checks and inspections to be completed by the fueling staff. The fuel supplier also performs annual inspections on the fuel facility to ensure that safety and quality control standards are upheld. Sometimes a supplier will visit an airport three or four times per year. If an airport fails inspections, the fuel supplier would work with the airport to bring the facility up to standard. In an extreme circumstance where an airport cannot maintain the standards held by the fuel supplier, the supplier may elect to no longer provide fuel to the airport or permit the airport to use their name and logo. When an airport contracts with a branded fuel supplier, it is typical for the company to offer different types of support such as onsite trainings, technical help, seminars, and classes for airport management and staff to build their skill set for on-ramp fueling operations. Branded fuel suppliers also can provide credit card servicing and point of sale (POS) software, fuel inventory management systems, and training in operating these systems. Airport managers interviewed for this project noted instances when their fuel supplier helped them through a unique problem or unexpected circumstance. Additionally, some fuel suppliers will organize and fulfill partial loads of fuel by coordinating with nearby airports also looking to split a full load. When multiple airports divide a full load, the extra fees for partial loads may be reduced, especially if the airport staff can organize the delivery of partial loads to multiple airports. Rewards programs and loyalty credit cards offered by branded fuel suppliers are used to attract transient customers who are loyal to a particular brand. Credit cards from the fuel supplier may Focus Area Service Provided Fuel Quality Control Standardized quality control program Included Technical quality control training for airport staff Included3 Annual quality control inspections Included On-Ramp Operations Fuel trucks and additional equipment for lease Additional Cost Replacement parts, filters, and supplies at discounted rates Additional Cost Safety training and seminars for airport staff Included3 Business Management Insurance of fuel products Additional Cost Card processing systems and training to operate the system Additional Cost Coordination with other airports for partial loads Included Fuel inventory management system Additional Cost Marketing Marketing and advertising Additional Cost Signage an interior design services Included Rewards programs Included Contract fuel rates Included4 Source: Prepared by KRAMER aerotek, 2018. Included or Additional Cost Table 10-2. Branded fuel supplier services. 3 Airports typically cover transportation costs for trainings and seminars. 4 Contract fuel rates are discounted prices provided directly to customers. A customer purchases fuel at an airport at a contract rate. The fuel supplier reimburses the airport for the cost of the fuel plus a pre-negotiated upload fee per gallon for fueling the aircraft. Contract rates are fuel supplier specific.

Operating Decisions 141 not carry a credit card fee to the airport operator. Customers with contract rates negotiated with a branded fuel supplier may also frequent an airport authorized to sell the supplier’s contract fuel. In addition, an airport can use the fuel brand logo and signage to help market the fuel. 10.4.2 Unbranded Fuel An airport can sell unbranded fuel to reduce the delivered cost of fuel and to order fuel on the spot market with no long-term contract with a reseller. This flexibility allows an airport to receive quotes from various suppliers and select the lowest price for each fuel purchase. Often an airport will receive quotes from a list of two to four suppliers in the region and choose on the basis of price. Unbranded fuel is typically transported by independent trucking operators. Airport staff have the responsibility of checking the quality of the fuel at the time of delivery. Airports that purchase unbranded fuel on the spot market usually do not benefit from training services, marketing support, management software, or equipment rentals negotiated in a fuel supply contract. However, the fuel quality of unbranded fuel is usually excellent. In the com- modity market that fuel has become, lower costs for delivered fuel can provide an airport with an extra margin of price stability in the event that fuel prices decline or there is heavy fuel price competition in the area. 10.4.3 Selecting Between Branded and Unbranded Fuel A decision to go with branded or unbranded fuel will depend on fuel sales volumes and the strategic objectives that each airport sets. Table 10-3 summarizes the pros and cons associated with branded and unbranded fuel. The case studies conducted for this research revealed ardent advocates for both branded and unbranded fuel as indicated in Table 10-4. Fuel quality does not appear to be an issue. Airports that prefer fuel supplier support and the status of branded fuel select a branded vendor. These airports may also have regular customers with fuel discount or contract rates from a particular Branded Fuel Pros Cons Fuel quality control from terminal to airport fuel storage Price premiums for branded fuel Fuel supplier offers support and training for airport fuel operation Requires a contract with a specific fuel supplier Fuel contracts often include marketing and advertising support If Jet A customers have contract rates negotiated with the fuel supplier, margins limited to upload and flowage fees Branded fuel attracts certain customers Unbranded Fuel Pros Cons Flexibility to shop fuel prices for each delivery Additional quality control tests required at time of fuel deliveries Lower delivered costs for full loads of fuel Minimal support and marketing services from fuel supplier Can position airport fuel as a low-price competitor Source: Prepared by KRAMER aerotek, 2018. Table 10-3. Branded versus unbranded fuel.

142 Airport Management Guide for Providing Aircraft Fueling Services supplier. Airports that seek low-price leadership tend to prefer unbranded products and are often located at smaller airports, where the majority of customers purchase low volumes of Avgas and tend to be price sensitive. A decision to sell branded or unbranded fuel may depend of the airport’s existing and desired customers. The Jet A fuel market is dominated by large-volume sales to corporate flight depart- ments. Many, if not most, of these customers are subscribers to discount fuel programs or have negotiated contract rates with fuel suppliers. These fuel discounts are associated with particular fuel brands, airports, or FBOs. The typical Avgas customer involves a lower-volume purchase in a retail pricing environment where local discounts may be offered by individual airports. Often times, the decision for branded or unbranded fuel is obvious. However, when recon- sidering a choice between branded or unbranded fuel supplies, Table 10-5 provides a list of considerations. If an airport selects to purchase fuel from a branded fuel supplier, the two parties usually will enter into a multiyear agreement; however, a contract is not always signed. An airport sponsor may elect to purchase fuel through a fuel supplier and follow the procedures required by that company, yet not sign a contract. By not entering a contract, an airport gains flexibility to choose between multiple providers and change at will to select a cheaper option. If an airport does not enter a contract, they can still sell under the brand name and logo, as long as the fuel is purchased from the fuel supplier. Entering into a contract allows for greater service stability and fuel security. In the rare situation of fuel shortages, priority is likely to go to airport fuel operators with contracts. 10.5 Staffing Requirements and Training Establishing a staffing plan is necessary for the safety and sound execution of a both a full-service or self-service fuel facility. If it is a full-service facility, staffing levels will correlate with daily, weekly, and seasonal demand patterns for the service. Management will decide Case Study Airports ID State Is Branded Fuel Important to Customers? Fuel Type Offered Burlington Municipal Airport BUU WI No Unbranded Cheyenne Regional Airport CYS WY To Some - Corporate Business Branded Eagle River Union Airport EGV WI No Unbranded Front Range Airport FTG CO No Branded Hulett Municipal Airport W43 WY Yes - Quality Control Branded Huntington Tri-State Airport HTS WV Yes Branded Leadville Lake County Airport LXV CO Yes Branded Meriden Markham Airport MMK CT No Branded Mesquite Municipal Airport 67L NV To Some Branded Montgomery County Airpark GAI MD No Branded Pine Bluffs Municipal Airport 82V WY No Unbranded Salida Airport ANK CO Yes - Loyalty Programs Branded San Bernardino International Airport SBD CA Yes - Loyalty Programs Branded Skylark Field ILE TX To Some - Transient Pilots Branded Southern Illinois Airport MDH IL Yes - Loyalty Programs Branded Thomas C. Russell Field ALX AL Yes Branded Source: Prepared by KRAMER aerotek, 2018. Table 10-4. Airport opinions on branded and unbranded fuel.

Operating Decisions 143 how to best serve after-hour customers either with an extra on-call staff shift or a self-service fueling unit. The responsibilities of the fueling staff are comprehensive. Figure 10-1 summarizes job responsibilities for the fueling personnel. 10.5.1 Staffing Levels Next to the cost of fuel, employee salaries and benefits represent one of the largest operating expenses to an airport’s fuel facility. The challenge is to provide enough workers to support the fueling operation without overstaffing. To set a context, Table 10-6 provides the number of full-time equivalent staff employed for fuel facility operations at each case study airport for this research. To provide a sense of scale, 2016 fuel sales and the types of fueling services offered at each airport are also listed. While some employees are fully dedicated to fueling operations, most GA airports cross- utilize staff for many responsibilities such as maintenance, aircraft parking, landscaping, termi- nal services, and customer service. At Salida Airport and Thomas C. Russell Field, the airport manager is the only employee and does virtually everything required at the airport. Employees indicted in Table 10-6 probably perform multiple responsibilities at the airport. The shaded rows indicate airports offering only self-service fuel. Airports also may fluctuate their staffing levels according to seasonal variations in demand. 1 Existing Fuel Sales a. Are fuel sales primarily Jet A or Avgas? b. Are based aircraft purchasing fuel at the airport, and if not why not? c. How price sensitive are the airport’s fuel customers? d. Does the airport have a large number of customers purchasing fuel with contract rates? e. Do customers express specific preferences for a particular brand of fuel? 2 Fuel Delivery a. How often does the airport set fuel prices? b. Does the fuel manager track fuel prices on a weekly basis? c. Could the airport benefit from purchasing fuel from various suppliers? Or would a consistent fuel supply be more appropriate? d. Is the airport purchasing full or partial loads of fuel? What opportunities exist for cost savings with partial loads through fuel suppliers or on the open market? e. Is there a history of branded or unbranded fuel sold at the airport? 3 Leasing Equipment, Software, and Insurance a. Does the airport need to lease a fuel truck? b. How does the airport handle inventory management of fuel and POS records? c. What additional equipment or software is needed in the next 3 years for fueling operations? d. Does the airport require additional insurance for fuel facilities that a fuel supply offers? 4 Quality Control a. Are the fueling staff trained to perform necessary quality control checks? b. Has the airport hired a third party to perform quality control checks? c. Would quality control support from the fuel supplier be an advantage? 5 Employee Training a. How does the airport currently handle employee training? b. Would the airport benefit from additional training courses offered by a fuel supplier? Source: Prepared by KRAMER aerotek, 2018. Table 10-5. Decision factors for branded or unbranded fuel.

144 Airport Management Guide for Providing Aircraft Fueling Services 2016 Fuel Sales Avgas Jet A Airport Avgas Jet A Self- Service Full- Service Self- Service Full- Service FTE Staff Hulett Municipal Airport 1,451 3,270   1 PT Huntington Tri-State Airport 5,385 171,006   8 Salida Airport 9,005 20,796    1 Pine Bluffs Municipal Airport 15,000 none  0 Leadville Lake County Airport 15,093 73,874     3 Mesquite Municipal Airport (estimated) 32,000 48,000    2 Eagle River Union Airport 36,236 69,670   3 Thomas C. Russell Field 47,500 54,700   1 Skylark Field 55,203 21,369    2 Cheyenne Regional Airport 58,000 570,000   7 San Bernardino International Airport 69,824 1,726,778    10 Meriden Markham Airport 84,000 none  1 FT, 3 PT Burlington Municipal Airport 125,153 48,689   0 Front Range Airport 130,205 244,350    8 Southern Illinois Airport 135,326 58,054    8 Montgomery County Airpark 150,000 175,000    4 Note: FTE = full-time equivalent. Source: Prepared by KRAMER aerotek, 2018. Source: ACRP Synthesis 63: Overview of Airport Fueling System Operations, 2015. “Responsibilities for the delivery of safe, clear, and bright fuel to aircraft lies with the skill and knowledge of individuals engaged in the fueling process at all stages of fuel delivery, from the refinery to the into-plane agent. Job duties can vary from position to position in the fuel supply chain. Typical duties and essential knowledge requirements for an individual engaged in fueling operations might include any of the following: • Maintain a safe and efficient operation. • Ensure customer standards are met and contract services are performed. • Ensure company safety and health policies are enforced. • Ensure compliance with FAA, TSA, IATA, ATA, U.S. Customs, airport authority, and company rules and regulations. • Ensure compliance with ATA 103 Fuel Quality Control Specification, NFPA 407, and Federal Aviation Regulations (FAR) Part 139.321. • Ensure accurate accounting of fuel transactions. • Perform daily quality control checks on equipment. • Maintain equipment in clean and functional condition. • Ensure the correct loading and balancing of fuel. • Check equipment for unsafe conditions and take appropriate action to remove any such conditions. • Operate valves and manifolds for product receipt from suppliers by means of pipeline, tanker or barge, tank truck, and railcar deliveries. • Receive/dispatch jet fuel, gasoline, diesel fuel, avgas, and glycol by means of pipelines and trucks. • Sample and test products for quality control and perform inspections and basic maintenance on facilities, fuel systems, and fueling vehicles. • Complete daily fuel reports and log entries of fuel transactions, quality control, and maintenance. • Audit and correct fuel-related paper work, as required. • Transfer product and monitor storage tanks, pipelines, and related equipment to ensure that they are in good working order to prevent spills, releases, overfills, and product contamination.” Figure 10-1. Job description for fueling personnel. Table 10-6. Fueling staff at case study airports.

Operating Decisions 145 Self-Service Staffing Requirements Airports only providing self-service fueling require fewer employees. Three of the four case study airports offering only self-service dedicate less than one full-time equivalent staff member to facility operation. As fuel pumping and the transaction are completed by the customer, the main responsibilities for managing a self-service system are limited and include: • Ordering fuel; • Tracking inventory and sales; • Performing quality control checks; and • Completing daily, weekly, monthly, and annual maintenance checks. Offering self-service fuel poses a significant advantage as the facility can operate at all hours of the day and even overnight with minimal overhead cost from employee salaries and benefits. An additional advantage is the simplicity in coordinating the schedule, because brief daily inspections are the bulk of the field work. Full-Service Operating Hours, Staffing Requirements, and Schedules Airports that support full-service fueling typically offer 8 to 12 hours of fueling service per day, and most offer an after-hour option where pilots can request fueling service for an additional fee. Destination airports seasonally adjust business hours by adding early-morning and late-evening hours to capture increased summer or holiday traffic volumes. If weekends are busy, airports may extend hours on Saturdays and Sundays. Since extra hours incur additional cost, it is important to weigh the additional labor cost against potential fuel sales. An active full-service fueling operation typically requires at least two employees per shift to perform at a minimum the following duties: • Order fuel; • Track inventory; • Perform daily quality control checks; • Complete daily, weekly, monthly, and annual maintenance checks; • Operate and maintain fuel trucks; • Fuel the aircraft; and • Provide customer service and fuel sale transactions. Full-service fueling requires line service personnel for fueling tasks and a customer service agent to answer phone calls, communicate with incoming pilots, coordinate line service techni- cians, relay fueling requests, and complete the sales. With FBO management software, some of these functions, with the exception of customer service, may already be automated. The number of line service personnel depends on the number of fuel trucks in use. A full- service line crew can only fuel as fast as their fuel trucks allow, and fueling speed is limited by the number trucks and hoses. Although two employees can work on the same fuel truck to expedite fueling, it generally only requires one person. Airport managers participating in the case studies provided the following suggestions for scheduling: • Offer a varied and flexible schedule. Rotating nights and mornings or weekends and weekdays provides variety and prevents employees from constantly working less-desirable shifts. • Prepare a schedule several months in advance to make it possible for staff to trade shifts and address conflicts. • Set a time when all line service technicians are on site. If all fueling staff can meet on a regular basis, any changes, updates, or safety topics can be addressed with all personnel simultaneously. Consistent meetings can help to avoid communication breakdowns.

146 Airport Management Guide for Providing Aircraft Fueling Services 10.5.2 Training Requirements for Employees Since aviation fuel is a hazardous material, training line service personnel is critical to the safety of fueling operations and may be required by state or local fire codes, fuel distributors, and insurance. A number of onsite, in-class, and online courses are available through universities and colleges, the National Air Transportation Association (NATA), fuel suppliers, and consulting companies. 14 CFR Part 139 airports5 are held to strict requirements for training of employees that must be documented and will be reviewed during inspections. Smaller airports without this certifica- tion are not held to as strict of standards; however, a knowledgeable and properly trained staff decreases the risk of fueling accidents. Industry best practices suggest that non-Part 139 airports maintain the same minimum training standards as Part 139 airports. Part 139 Airports Regulations and additional guidance for training of fuel facility employees at Part 139 airports are described in two documents: 1. Government Publishing Office’s Code of Federal Regulations Part 139: Certification of Airports, Section 139.321—Handling and storing of hazardous substances and materials. 2. FAA AC 150/5230—Aircraft Fuel Storage, Handling, Training, and Dispensing on Airports. At the time of publication of this study, the most recent update to the advisory circular (AC 150/5230-4B) was completed on September 28, 2012. The advisory circular, though not a regulation, is a reference document that notes the require- ments outlined in the Part 139 regulation and provides additional information and resources on training courses throughout the United States. There are two types of training programs for fueling technicians required by Part 139.321 regulation: supervisory fuel safety training (e) (1) and line service fuel safety training (e) (2). All Part 139 airport fuel facilities must have one employee complete an FAA-authorized supervisory fuel safety training course. Line service employees may complete their training either through an FAA-approved line service fuel safety course or directly through their supervisor, as shown in Figure 10-2. Both a supervisor and a line service employee must take part in these trainings once every 24 months and provide documentation upon inspection. Line Service Fuel Safety Training [Part 139.321(e) (2)] Approved line service fuel safety training courses are offered throughout the United States by several providers, including aviation fire safety consulting companies, fire departments, educational institutions, and fuel suppliers. FAA AC 150/5230 offers an addendum that shows the location, approved fuel safety programs offered, and contact information of the parties host- ing the courses. Any employee who stores, dispenses, or handles fuel in any way is required to understand the following topics, as stated in the Part 139.321 regulation: • Bonding • Public Protection • Control of Access to Storage Areas • Fire Safety in Fuel Farm and Storage Areas 5 14 CFR Part 139 established in 2004 certification requirements for airports serving scheduled and unscheduled air carrier aircraft with more than 30 seats and scheduled air carrier operations in aircraft designed for more than 9 passenger seats but less than 31 seats. Certificates serve to ensure safety in air transportation. To obtain a certificate, an airport must agree to certain operational and safety standards and provide for such things as firefighting and rescue equipment. These requirements vary depending on the size of the airport and the type of flights available.

Operating Decisions 147 • Fire Safety in Mobile Fueling Units, Fueling Pits, and Fueling Cabinets • Fire Code of the Public Body having Jurisdiction Over the Airport The advisory circular provides a more detailed breakdown of each of the training topics and recommends the training courses cover orientation on fuel types, fueling different types of aircraft, and basic safety practices. Supervisor Fuel Safety Training [Part 139.321(e) (1)] One supervisor with each fueling agent must complete an FAA-authorized supervisor fuel safety training course within 90 days of starting work. In addition to all the information provided in the line service training, supervisors learn techniques for training employees, including: • Methods of delivery: classroom, on-the-job, and online; • Understanding of different types of learning—visual, cognitive, hands-on; and • Motivational aspects of training. Handheld Fire Extinguisher Training Every employee and supervisor must receive a hands-on fire extinguisher training as required by Part 139 regulation. In general, fire extinguisher training is included in the FAA-approved line service and supervisor training courses; but if not provided, the training can be completed separately, and often at local fire departments. Non-Part 139 Airports Part 139 certification only applies to airports providing air carrier service. General aviation airports do not have to hold Part 139 training standards; however, airport staff are commonly held to the training standards of a fuel supplier or state and local requirements. Although there are fewer training requirements for non-Part 139 airports, ensuring proper training of employees is a best management practice that should be followed by all airports. Safety 1st Program NATA, a non-profit industry organization, has a set of online subscription-based courses targeting general aviation airports. Safety 1st offers training modules for professional line service personnel in fire safety, fueling aircraft, ramp safety, fuel quality, deicing/anti-icing, customer Source: Prepared by KRAMER aerotek, 2018. Figure 10-2. FAA training courses.

148 Airport Management Guide for Providing Aircraft Fueling Services service, flight coordinator training, and OSHA regulations. This program’s online training modules for line service personnel and supervisors are commonly used throughout the avia- tion fueling industry. In addition, NATA and the Inter national Business Aviation Council have launched a set of global industry best practices for business aviation ground handlers. The International Standard for Business Aircraft Handlers features at its core a safety management system that is designed to standardize safety management system requirements for handlers and operators. NATA and the International Business Aviation Council jointly sponsor work- shops, auditor training for the International Standard for Business Aircraft Handlers, and pub- lish an International Standard for Business Aviation Handlers manual. 10.6 Budget Chapter 8 presented the elements of an airport financial statement that included operating revenues and expenses for the airport’s fueling operation. Each year, airports prepare a budget for revenues, expenses, and capital projects anticipated for the next year. Previous year perfor- mance will inform budget estimates and make it possible for an airport manager to address such questions as: 1. To what extent is the airport self-funding? 2. Will fuel sales and other airport income cover the cost of new fuel purchases, salaries, benefits, and maintenance? 3. Do any recent changes indicate potential increases or decrease in fuel sales or prices? Table 10.7 revisits the income and expense baseline worksheets that were developed in Chapter 8. In this chapter, for operating budget purposes, the format changes to estimating next Table 10-7. Example of an operating budget.* Operating Revenue Current Year Budget Current Year Actual Revenues Actual as a Percent of Budget Next Year’s Budget Notes Fuel Jet A Avgas Other Aviation Supplies Aircraft Oil Pilot Supplies Services Line Services Other Services (e.g., catering, aircraft cleaning, equipment rental) Fees Flowage fees Tie-Down and Ramp Fees Fuel Storage Fees (if any) Rentals and Commissions Hangar and Office Rentals Car Rental Commissions Other Income Total Operating Revenue

Operating Decisions 149 Table 10-7. (Continued). Maintenance Equipment Maintenance Hangar Maintenance Maintenance Labor Equipment Fuel and Oil Utilities Fuel Farm Utilities Hangar Utilities Other Airport Utilities Insurance Fuel Farm Hangar Liability Pollution Workers Compensation Marketing, Advertising, and Website Other Expenses Total Direct Operating Expenses Startup Costs Administration Expense Allocation Net Profit (Loss) Before Capital Improvements Expenditures *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: KRAMER aerotek, 2018. Operating Expenses Current Year Budget Current Year Actual Expenditures Actual as a Percent of Budget Next Year’s Budget Notes Cost of Fuel Delivered Cost of Jet A Delivered Cost of Avgas Cost of Other Aviation Supplies Aircraft Oil Deicing Fluids Pilot Supplies Other Line Supplies Fees Credit Card Processing Fees Other Finance Charges Employees Employee Salaries Employee Health Insurance Training Uniforms Equipment Small Equipment Purchases (expensed) Equipment Rental or Lease Software and Licenses

150 Airport Management Guide for Providing Aircraft Fueling Services year’s budget and comparing it with actual revenues and expenditures. A final budget presented to the airport sponsor would summarize the budget categories and present just the principal categories in bold. This table can be downloaded as an Excel worksheet from Appendix B on the TRB website and customized for specific airports. 10.7 Cash Flow Considerations One of the largest cash outlays for an airport is the purchase of fuel. For example, suppose an airport maintains two 12,000-gallon fuel tanks, one for Avgas and the other for Jet A. Every 2 months, the airport accepts an 8,500-gallon delivery of Jet A, and every 3 months, an 8,500-gallon delivery of Avgas. As an example, assume that the delivered cost of Jet A is $3.40 per gallon and Avgas is $4.35 per gallon delivered. Every 2 months, the airport would owe the supplier $28,900 for Jet A, and every third month $36,975 for Avgas. In the case studies completed for this research, two-thirds of airports financed fuel from airport operating revenues; however, one-third financed fuel purchases using general funds from the municipality, authority, or county. If general funds are needed for part or all of fuel purchases, these cash flow issues should be discussed with the airport sponsor during the budgetary process. 10.8 Risk Management Airports are complex organizations that involve sophisticated equipment, facilities, and technology operated by individuals, public entities, and companies. Fuel facilities and fueling operations are a subset of this activity involving the storage and handling of hazardous materials and expensive aircraft. Fueling infrastructure makes it possible to receive fuel, store it, and deliver it to aircraft. The capital investment in a fueling infrastructure can be substantial, and safe operations are of paramount importance. Thus, risk management is an integral part of a fueling operation at all stages, from initial planning to construction and operation. When an airport initiates a new fueling operation, takes over from a private operator, or updates or expands facilities, management of risk is a key component of the operating strategy. The primary risks associated with fuel facilities include fire, explosion, contamination, spill- age, and environmental impact (Quilty, 2015), but additional risks are also present. An airport has financial risk in that fueling operations may not cover operating costs or capital expenses associated with the facility. There are operating risks of accidents and damage to aircraft and equipment. The possibility of disruption in business or the fuel supply chain represents risk as well. Some airports buy insurance to manage construction risk and to protect the fueling system from terrorism and war. Figure 10-3 summarizes the various risks an airport sponsor must manage in connection with fueling operations and outlines measures to mitigate each risk. A more detailed discussion of each follows. 10.8.1 Business Risk A fuel facility, like any business, incurs both financial risk to the investing parties, as fueling tanks, trucks, containments areas, pumps, and additional equipment are expensive. There are

Operating Decisions 151 also business risks associated with volatile fuel prices, competition, economic downturns, and unexpected interruptions of supply because of natural disasters such as storms and fire. One of the main purposes of this management guide is to put in place planning and operating practices that, to the extent possible, minimize risks to the business. These include: • Understanding the airport’s fueling business, customer base, and demand (Chapter 4); • Paying attention to fuel price trends and favorable pricing for delivered fuel (Chapter 12); • Staying in touch with tenants and transient traffic (Chapter 7); Source: Prepared by KRAMER aerotek, 2018. Capital Investments, Economic Recession, CompetitionBusiness Risk • Analyze the airport's fueling business history to effectively size facilities • Monitor economic trends and their effects on local general aviation • Interview based tenants, transient traffic, and competing airports to target customers and focus improvements to identified needs and market niche • Use research and data to select fuel types and services provided • Track fuel pricing to take advantage of favorable delivered costs for fuel Fuel Shelf Life, Equipment Malfunction or Breakdown, Proximity of Expensive AircraftOperating Risk • Employ safety management protocols when fueling or moving aircraft • Manage fuel inventories to maintain adequate stock and sufficient turnover • Perform regular maintenance of equipment to prevent large repair expenses Fuel Spills, Stormwater ContamininationEnvironmental Damage • When taking over a fueling operation, prepare an environment baseline study • Conduct environmental liability assessment before purchasing equipment • Create a state-required Spill Prevention, Control, and Countermeasure Plan • Carefully follow all instructions from the SPCC and local environmental requirements • Require regular training for line service personnel and supervisors concerning handling and storage of hazardous materials Employee Injury, Aircraft Damage, Infrastructure, Explosions, and Fires Safety, Fire, and Explosions • Create a state-required Emergency Response Plan • Continuous training of line service technicians and supervisors • Routine safety meetings to constantly raise awareness of potential safety issues • Locate tanks, mobile fuelers, and fuel farms with minimal exposure to other airport buildings and infrastructure Fuel Facility InsuranceInsurance • Property and liability • Umbrella liability • Environmental mitigation • Business and supply chain interrupton • Insurance for construction • War and terrorism Figure 10-3. Risks to fueling operations and measures to mitigate.

152 Airport Management Guide for Providing Aircraft Fueling Services • Training the staff to represent the airport brand (Chapter 6); • Knowing what competing airports offer (Chapter 5); • Monitoring economic trends and their effects on general aviation (Chapter 7); • Reviewing quarterly and annual results (Chapter 13); and • Adjusting the business and marketing plan each year to maximize fuel sales and customer satisfaction (Chapters 10, 12, and 13). 10.8.2 Operating Risk Three important risks are associated with a fueling operation: 1. Misfueling or other damage to aircraft during fueling, 2. Stored fuel that exceeds its shelf life, and 3. Unexpected maintenance or shutdowns of the fueling facility or equipment. Misfueling or damage to aircraft is a line service training issue discussed in Section 10.5 of this chapter. Accidents do happen, and that is the reason why in addition to ongoing training programs, an airport would carry property and liability insurance. Jet A fuel has a shelf life of approximately 6 months. The life of Avgas can be extended with additives. Maintaining fuel quality is of the utmost importance. Most airports will turnover fuel inventory within 6 months; however, airports with low fuel sales can opt to order partial loads of fuel to make sure that fuel remains fresh. Or, they can sell the fuel at a discounted rate to reduce inventory. Fuel facilities and equipment require regular maintenance. Chapter 11 discusses how a regular maintenance program can reduce the risk of maintenance delays or shutdowns. 10.8.3 Environmental EPA mandates that those who own or obtain property are environmentally responsible for equipment and facilities on the property. Because the fueling business involves the stor- age, use, and handling, of hazardous materials, it is important to document environmental responsibilities. If the airport inherits a fueling operation from an FBO that has gone out of business, the original FBO lease should have a baseline environmental conditions report that lists all hazardous substances that were on the property prior to the lease. Prior to taking over of the property, the airport sponsor would perform a closeout environmental condi- tion study at the FBO’s expense. If the closeout environmental condition study identifies any environmental condition that was not identified by the FBO’s initial baseline environmental condition study, any required assessment or remediation would be performed at the FBO’s expense. Because environmental contamination may well not be discovered until after the lease has terminated, it is important that the previous lease states that the FBO’s environ- mental obligations survive the expiration, termination, sublease, or assignment of the lease (Kramer et al., 2018). Condition assessment reports are also important for any property or facilities associated with the fueling operation that the airport may acquire. This includes fuel tanks, pipelines, fueling trucks, and pumping equipment. A transaction screening process or a more involved Phase I Environmental Site Assessment can identify potential environmental issues that may require additional inspection before the airport purchases the site or equipment (Quilty, 2015). Spill prevention can by monitored by developing and adhering to a SPCC plan that is mandated by the Clean Water Act, originally published in 1973 and enforced by states. The Oil Pollution Act of 1990 was an amendment to the Clean Water Act that required some

Operating Decisions 153 facilities to additionally prepare a facility response plan. The SPCC plan outlines the gen- eral facility description, fuel transfer methods, waste disposal, general discharge protection methods, and responses the airport will take for minor or major incidents. Familiarity and conforming to this plan can bring increased awareness of these environmental risks and help to mitigate them. 10.8.4 Safety, Fire, and Explosions Storage of fuel incurs the risk of an unconfined vapor cloud explosion.6 Because the gas is dis- persing, the blast can extend downwind to areas outside the airport boundary. Accidents relating to fueling activities on the ramp and near buildings also pose risk. Mitigating the damage caused by fire and explosions begins with site planning decisions for locating storage and fueling facilities away from other buildings and infrastructure. Emergency response and contingency plans are also effective preparatory tools. 14 CFR requires that all Part 139 certificated airports develop an Airport Emergency Plan (AEP). FAA AC 150/5200-31C— Airport Emergency Plan provides guidance in meeting the requirements of 14 CFR Part 139. For all other airports, the FAA recommends following the guidelines and standards provided in AC 150/5200-31 for the development of an AEP. Non-certificated airports must follow the guidelines provided in Homeland Security Presidential Directive 5 (HSPD-5): Management of Domestic Incidents, and Homeland Security Presidential Directive 8 (HSPD-8): National Preparedness (Florida DOT, 2012). Best practice also includes recertification of line service technicians and supervisor training and fire response drills. Airport staff can conduct regular safety and spill prevention meetings to maintain staff awareness of safety protocols and readiness for emergency response. 10.8.5 Fuel Facility Insurance Risk management involves engagement at the site planning stage, during construction, and when fueling facilities are operational. All Part 139 airports maintain an emergency response plan and training of staff and many non-certified airports also comply. In addition to airport efforts to execute sound business plans, airport layout plans, emergency response plans, and effective staff training, most airports purchase insurance. Insurance offsets some of the costs associated with explosions, infrastructure damage, aircraft accidents, and hazardous materials spills. Airports can acquire insurance through a fuel sup- plier, an independent insurance company, or the airport can self-insure. Some states such as Wisconsin have laws that cap liability for municipalities at a certain level,7 and this also applies to airports owned by municipalities. Some airports elect a combination of sharing the risk by partially self-insuring the airport. ACRP Synthesis 30: Airport Insurance Coverage and Risk Management Practices (2011) sur- veyed airports and found that most airports carry general liability, property, and business interruption insurance policy. General liability covers any accidents resulting from fuel quality. Environmental and pollution insurance policies are also available to cover the costs of spill cleanup. 6 A vapor cloud explosion is the result of a release of flammable material in the atmosphere; a subsequent dispersion phase; and, after some delay, an ignition of the vapor cloud. 7 The League of Wisconsin Municipalities cap liability at $50,000.

154 Airport Management Guide for Providing Aircraft Fueling Services 10.9 References 14 CFR Part 139—Certification of Airports. Available: https://www.law.cornell.edu/cfr/text/14/part-139#. FAA. AC 150/5190-6—Exclusive Rights at Federally-Obligated Airports. January 4, 2007. Available: https:// www.faa.gov/documentLibrary/media/advisory_circular/150_5190_6.pdf. FAA. AC 150/5200-31C—Airport Emergency Plan (includes Change 1). May 1, 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/regulations_policies/advisory_circulars/index.cfm/go/document. information/documentID/1020394. Florida DOT. Aviation Emergency Response Guidebook. 2012. Available: http://www.fdot.gov/aviation/flpub.shtm. Frye, W. “Self Service Fueling: a Growing Trend among GA Airports.” Airport Magazine, Vol. 17, No. 6, 2005. 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. Neubauer, K., Fleet, D., Ayres, M., Jr. ACRP Report 131: Guidebook for Safety Risk Management for Airports. Transportation Research Board of the National Academies. Washington, D.C. 2015. Quilty, S. M. ACRP Synthesis 63: Overview of Airport Fueling System Operations. Transportation Research Board of the National Academies, Washington, D.C. 2015. Prather, C. D. ACRP Legal Research Digest 8: The Right to Self-Fuel. Transportation Research Board of the National Academies, Washington, D.C. 2009. 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.

155 11.1 Monitoring Fuel in Storage Tanks 11.2 Safety and Emergency Operations 11.3 Environmental Operations 11.4 Quality Control and Inspections 11.5 Operating Permits and Certifications 11.6 Facility Maintenance and Repairs 11.7 References Chapter 11 presents key elements of day-to-day, weekly, and monthly operational aspects of an airport fuel system. The parameters integral to fuel system operations encompass the management of fuel tanks, safety protocols, quality control and inspections of the fuel, on-going operating permits and certifications, as well as regular maintenance. Chapter 12 continues the discussion of regular operations, but focuses on the management of fuel inventories, ordering fuel, and setting fuel prices. 11.1 Monitoring Fuel in Storage Tanks The accounting of fuel quantities received, stored, and issued on an airport is handled by the fuel operator. Fuel inventory control can be manual or completely automatic, ranging from daily hand gauging of tanks to automatic tank gauging systems. Remote notification and monitoring of on-hand fuel inventory can also be present with automatic tank gauging systems located in the airport management office. 11.1.1 Regular Inventory Tracking Best practice for regular inventory tracking is to check stored fuel supplies at the beginning or end of each day. For smaller airports, where throughput fuel volumes are a relatively smaller percentage of actual stored fuel capacity, weekly checks may be more appropriate. Some systems have automatic tank gauging that can generate a printed or stored inventory report on demand, while others require manual tank gauging or reading of mechanical gauge indicators at the individual tanks. Today’s automatic tank gauging technology can measure fuel temperature and viscosity among other metrics, and these systems can use fuel temperature to account for expansion in the volume measurement. Automatic gauging systems of varying complexity are available. Manual gauges indicate a height of fuel in the tank that is translated to a fuel volume. Manual C H A P T E R 1 1 Operating the Fuel Facility

156 Airport Management Guide for Providing Aircraft Fueling Services gauging introduces a margin for human error, as a misreading of the fuel level by even 1⁄8 inch could translate to an errant measurement of 50 to 60 gallons in a 12,000-gallon tank. Line service staff should measure precisely in their readings when manually measuring tank volume. Even with automatic tank gauging, it is best practice to verify the measurement periodically by manually gauging the storage tanks and comparing results with the automatic gauge readings. Although these readings could differ, this practice should flag any major discrepancies and could indicate a calibration of the automatic gauge as needed. This comparison is commonly performed monthly at a minimum. Monthly accounting of the gallons sold and on-hand inventory is a customary practice for tracking of the fueling operation financially. This process verifies that all transactions were logged in the inventory tracking system. Account reconciliation is also typically needed for inventory discrepancies resulting from metering and gauging inaccuracies and to account for water or waste fuel sumping and removal. Changes in fuel temperature can affect fuel volumes as well. Present fueling management software capabilities allow for automatic tracking of inventory using POS software (available from fuel suppliers or independently). This software can also interface with automatic tank gauging systems to generate comprehensive sales and inventory reports. Tables 11-1 to 11-4 provide extra worksheets for manual entry of data. These manual entry forms can be used as the primary method to transfer information or as the backup for electronic files. Table 11-1 provides a method for manually tracking the sales completed during each day. Table 11-2 presents a daily fuel inventory tracking checklist and Table 11-3 presents a monthly account reconciliation tool, both of which can be used to manually track inventory. Table 11-4 provides an aircraft service order that line service technicians fill out while servicing an aircraft. This hardcopy record indicates the fuel provided, mentions the services requested, and provides a location for the pilot’s signature and line service technician’s initials. 11.1.2 Managing Shifts in Fuel Demand Demand for fuel at an airport can be steady from day-to-day or month-to-month or can vary significantly due to a number of influencing factors. Seasonal or other variations can occur because of holiday or vacation traffic, agricultural crop dusting, emergency aerial firefighting needs, scheduled local events with resultant traffic increases, or other fluctuations in demand. With regular tracking of fuel sales, it is possible to anticipate many of these shifts in demand. In determining required fuel storage capacity at an airport, storage space must be allowed for receipt of fuel while still maintaining adequate reserve fuel storage availability during the time between when fuel is ordered and received. One potential option is to provide reserve storage in a temporary, portable fuel trailer or refueler truck, which can be scheduled and present during anticipated surges in fuel demand. 11.1.3 Inventory Management for Large versus Small Airports Inventory management control for large and small GA airports is similar, the difference is throughput. Airports with large fuel throughputs potentially receive fuel multiple times per week or even daily. Frequent deliveries require regular and large payments to the fuel supplier. For larger GA airports, fuel sales could be 3,000 gallons per day. Smaller GA airports with lower fuel usage require fuel delivery at less regular intervals. These airports should carefully monitor fuel quality and avoid holding inventory for more than 6 months.

Fuel Type: Date Range: Service (FS or SS): Year: Date Gallons Sold Price per Gallon Total Sale Payment Method Customer Number Contract Fuel Rewards Number Initials Account Credit Cash Other Table 11-1. Daily sales log. (continued on next page)

Fuel Type: Date Range: Service (FS or SS): Year: Date Gallons Sold Price per Gallon Total Sale Payment Method Customer Number Contract Fuel Rewards Number Initials Account Credit Cash Other Weekly Totals: Source: Prepared by KRAMER aerotek, 2018. Table 11-1. (Continued).

Tank ID: Month: Fuel Type: Year: Date Initial Gauge Depth Initial Volume (I) Transfer In (R) Transfer Out (D) End Gauge Depth End Volume (E) Recorded Net Change (D+R) Actual Net Change (E-I) Over/Under Initials Fuel Delivery Fuel Truck SS Aircraft 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 (continued on next page) Table 11-2. Storage tank daily inventory.

Tank ID: Month: Fuel Type: Year: Date Initial Gauge Depth Initial Volume (I) Transfer In (R) Transfer Out (D) End Gauge Depth End Volume (E) Recorded Net Change (D+R) Actual Net Change (E-I) Over/Under Initials Fuel Delivery Fuel Truck SS Aircraft 19 20 21 22 23 24 25 26 27 28 29 30 31 Source: Prepared by KRAMER aerotek, 2018. Table 11-2. (Continued).

Operating the Fuel Facility 161 Monthly Inventory Tracking (100LL or Jet A) Month: October Year: 2017 Beginning of Month Inventory Gallons Date Recorded Initials Storage Tank 1 (12,000 Gal) 8,500 10/1/2017 Storage Tank 2 (2,000 Gal) 850 10/1/2017 Primary Fuel Truck (2,500 Gal) 2,500 10/1/2017 Back-up Fuel Truck (1,000 Gal) 1,000 10/1/2017 (a) Initial Total 12,850 Delivered Fuel Gallons Date Recorded Purchase 7,500 10/15/2017 Purchase ---- ---- --- Purchase ---- ---- --- Purchase ---- ---- --- (b) Total Delivered Fuel 7,500 End of Month Inventory Gallons Date Recorded Storage Tank 1 (12,000 Gal) 9,800 10/31/2017 Storage Tank 2 (2,000 Gal) 2,000 10/31/2017 Primary Fuel Truck (2,500 Gal) 2,500 10/31/2017 Back-up Fuel Truck (1,000 Gal) 1,000 10/31/2017 Sump Saver/Reclaimer 52 10/31/2017 (c) Final Total 15,352 (d) Recorded Gallons Sold 4,980 Estimated Total (a+b-d) 15,370 Actual Total (c) 15,352 Adjustment -18 Source: Prepared by KRAMER aerotek, 2018. Table 11-3. Monthly inventory tracking.

Aircraft Service Order Ticket No: Date: Type of Aircraft: Additional Notes Registration Number: Owner/Pilot Name: Account Number (if applicable): Permanent Address: Location of Stay (if applicable): Departure Date: Phone: PRODUCTS SERVICES JET A: AVGAS:FUELORDERED MAINS: MAINS: FILL AUX: AUX: FILL TOP OFF TO TABS/SLOTS TOTAL GALLONS: Table 11-4. Aircraft service order.

SERVICE TO BE COMPLETE BY DATE: TIME: LINE TECHNICIAN: COSTS PAYMENT TYPE FUEL: CREDIT/DEBIT OIL: FUEL POINTS CASH SERVICES: ACCOUNT AMEX TAX: DISCOUNT CONTRACT TOTAL DUE: MULTI-SERVICE SERVICE ORDER APPROVAL (PILOT'S SIGNATURE): Source: Prepared by KRAMER aerotek, 2018.

164 Airport Management Guide for Providing Aircraft Fueling Services 11.2 Safety and Emergency Operations Fuel system operating protocol should include measures that minimize the possibility of a safety or environmental emergency. It is best practice for all airports, whether certified 14 CFR Part 139 or not, to follow the preventative measures discussed in this section and the two that follow. 11.2.1 Emergency Preventative Measures Minimizing risk of fuel spills or fire events in a fuel facility starts with establishing daily, weekly, and annual routines that constantly remind line staff of safety concerns and prevent complacency. Best practices for addressing safety concerns could include but are not limited to: • Develop and follow the AEP; • Complete regular reviews of the AEP and complete regular safety drills; • Conduct weekly safety meetings on varying topics; • Calibrate gauges and meters regularly; • Follow a regular inspection schedule (Section 11.4); and • Complete required/recommended safety training programs (Section 10.5). A best practice for all airports is developing and following the AEP. This document should be written to prepare an airport for how to respond to emergencies in such a way as to minimize the possibility and extent of personal injury and property damage. An AEP is required for Part 139 airports as noted in 14 CFR 139.325, and guidelines for developing an AEP come from FAA’s AC 150/5200-31C. Appendix 2 of this advisory circular has an “Airport Emergency Plan Review Checklist” that can be used as a guide during the development or review of a plan. The AEP shall be “functionally oriented, comprehensive in the assignment of responsibilities, and coordinated at all levels” (FAA, 2010). 14 CFR Part 139.325 additionally requires an annual review of the plan with all parties involved to ensure that their emergency responsibilities are known and all information is current. This includes law enforcement, rescue and firefighting, medical, principal tenants, and all other responsible parties. At least once every 36 months, Class I Airport Operating Certificate holders are required to hold a full-scale AEP drill. It is a best practice for non-Part 139 airport to conduct emergency response drills as well. Weekly safety meetings should be conducted to discuss and refresh responsible parties on safety concerns and topics. A facility operator would want to use this weekly meeting to touch base with the entire line service staff. Safety concerns are best communicated at one time to the entire personnel involved with the fueling operation. 11.2.2 Actions During and After Emergencies If there is an emergency, fueling must be stopped immediately. The person in charge of the fueling must act quickly to stop the flow of fuel. A deadman control requires squeezing a lever or button to maintain the flow control valve open for underwing or single-point fueling. The flow of fuel will stop if released by the operator. Deadman control definition and requirements can be found in NFPA 407 3.3.13 and 4.2.6. EFS systems shall be used to shut down the flow of fuel in a hydrant system and in storage/ pumping facilities, if necessary. On aircraft fueling vehicles, there will also be an EFS switch, which will stop the flow of all fuel with one movement. All personnel working on the ramp or in a fuel facility should know the location of the EFS switches, and access to the switches shall be kept clear.

Operating the Fuel Facility 165 An emergency call list should be prepared as part of the AEP, updated at least annually, and used to notify responsible parties in case of an emergency. Appendix 3 of FAA AC 150/5200-3C, “Airport Emergency Plan Accident/Exercise Evaluation Checklist,” needs to be completed following a drill or accident. Other required environmental notifications are discussed in the next section. 11.3 Environmental Operations 11.3.1 Common Causes of Spills An accident or failure of the fueling system could impact the health and safety of airport employees, nearby residents, and surrounding natural habitat. If a hose connected to a hydrant ruptures, fuel may spill at an approximate 1,585 gallons per minute (gpm) or if a hose is connected to the aircraft, an approximate 530 gpm.1 Additional common failures during fueling operations include: • Malfunction of automatic shutoff valves, • Underwing couplings detaching from the aircraft, • Nozzle quick disconnects separating, • Vehicle impact damaging hydrant couplers, • Failure of hydrant couplers because of incorrect reassembly after the couplers were modified, • Failure of valve or poppet to close, and • Accidental disconnection of a coupling after the failure of an interlock.2 11.3.2 Spill Preventative Measures In addition to the preventative measures discussed in the previous section, fueling accidents can be prevented by (EPA, 2010): • Performing manufacturer recommended maintenance on storage tanks; • Using suitable containers for storage of fuel; • Providing, maintaining, and calibrating overfill protection devices; • Providing sized secondary containment for bulk storage; • Ensuring secondary containment drains remain closed; • Providing general secondary containment where fuel is transferred to and from containers and for mobile refueling (e.g., wrapping connections with sorbent materials and drip pans or curbing in the area); and • Inspecting and testing pipes, containers, and hoses. SDS for all fuels and chemicals present at the fuel facility should be reviewed during training and kept on site. They are good sources of information for handling, storage, first-aid measures, fire- fighting measures, and personal protection. Annual inventory reporting of an airport’s hazardous chemicals is required by environmental regulation (refer to Chapter 3 for additional information). Recommended personal protective equipment (PPE) includes fuel-resistant gloves and approved protective eyewear when fueling. Additional PPE and precautions are required by OSHA if entering a confined space. All personnel should know where emergency eyewash stations and showers are located. 1Flight Safety Foundation. Ground Accident Prevention Ramp Operational Safely Procedures. https://flightsafety.org/toolkits- resources/past-safety-initiatives/ground-accident-prevention-gap/ground-accident-prevention-ramp-operational-safety- procedures/. 2http://www.hse.gov.uk/research/crr_pdf/2000/crr00288.pdf.

166 Airport Management Guide for Providing Aircraft Fueling Services The SPCC plan, as discussed in detail in Chapter 9 and required by 40 CFR Part 110 and Part 112, should also be referenced for prevention methods specific for the facility. 11.3.3 Spill Kits Spill kits are generally provided for fuel system operations. These spill kits contain absorbent materials and cleanup media to contain and clean up any localized fuel spills that may occur. Spill kits are generally provided to any stationary fuel loading or unloading operations for potential immediate use. For larger fueling operations, a dedicated trailer, van, or truck with larger volumes of spill control equipment is on standby to deal with any significant spill issues. Typical spill kits and a standard spill response trailer are pictured in Figure 11-1 and Figure 11-2, respectively. 11.3.4 If a Spill Occurs In the event of a spill, response procedures as outlined in the SPCC or other facility-specific response plan should be followed. Response actions depend on the quantity of material spilled. Source: http://www.versatech.com/sorbent-spill-kits.php. Figure 11-1. Typical spill kits. Source: http://www.versatech.com/spill-response-trailers.php. Figure 11-2. Typical spill response trailer.

Operating the Fuel Facility 167 Typically, these involve stopping the release, containing the spill, absorbing the substance, and properly handling the potentially impacted soil and debris byproducts. Depending on the spilled substance, this may have to be disposed of as hazardous waste. A spill log of all incidents should be maintained—information to be recorded for each incident may be specified in the SPCC plan. As discussed previously in Chapter 3, airports and facilities that store or dispense fuel must also comply with the EPCRA Section 311 and Section 312 reporting requirements. If there is a release of a CERCLA hazardous substance or an EPCRA extremely hazardous substance above the reportable quantities that will impact areas outside the facility boundaries, then EPCRA Section 304 requires airports to notify their Local Emergency Planning Committee and State or Tribal Emergency Response Commission immediately. Verbal notification must be made within 15 minutes of discovering the release. The following information must be provided during notification: • Material name, • If the substance is an extremely hazardous substance, • Approximate quantity released, • Time and duration of the release, • Where the release occurred and affected environmental media (e.g., water, soil), • Known or anticipated acute or chronic health risks associated with the release, • Medical attention necessary for exposed individuals, • Precautions to take due to the release, and • Name and telephone number of the individual to be contacted for further information. After the event, a written notification must also be made including: • Release response and containment actions, • Known or anticipated acute or chronic health risks associated with the release, and • Medical attention necessary for exposed individuals. In the case of a CERLCA hazardous substance release, information must be submitted to the National Response Corporation as well. 11.4 Quality Control and Inspections One way to prevent incidents is to perform regular inspections and ensure that all components are working properly. 11.4.1 Quality Control The main reference for quality control is the ATA Specification 103. This specification recom- mends daily checks including such items as water sumping tanks and filter vessels and inspecting the system for potential leaks. Less frequent checks include operational testing of system safeties and alarms; sumping and removal of water and air from system piping; integrity inspection of various system components and secondary containment; and fueling vehicle inspection, testing, and calibration. Table 11-5 contains a listing of inspection and maintenance forms from ATA Specification 103. 11.4.2 Inspections 14 CFR Part 139 requires inspections of fueling facilities at Part 139 airports to be inspected on a daily basis with more in-depth inspections completed quarterly (once every 3 consecutive months). Surveillance of fueling activities during special conditions is also required. All of these

168 Airport Management Guide for Providing Aircraft Fueling Services inspections should be recorded, and records shall be kept for 12 months. Quarterly inspections are typically performed by city or county fire marshals, airport fire department personnel, airport operations personnel, or others with knowledge of fueling system operation. A non-Part 139 airport can adopt similar inspections as part of its regular practice. Inspection procedures and timing for fuel facilities, vehicles, and equipment should be detailed in the O&M manual adopted by the airport. Items to inspect include fuel trucks, hydrant vehicles, hydrant carts, fuel storage areas, fueling cabinets, self-service fuel stations, airline gate extinguishers (if a commercial airport), fueling operations, fueling agent training records, and fueling agent training materials. The FAA AC 150/5200-18C—Airport Safety Self-Inspection provides additional guidance on inspection requirements. This advisory circular complies with the requirements in 14 CFR Part 139 and contains safety practices recommended for use at all airports. The following guidance checklists are included as appendices to the advisory circular: • Appendix 1: Airport Safety Self-Inspection Checklist. This regularly scheduled inspection of airport physical facilities should be performed on at least a daily basis. • Appendix 2: Continuous Surveillance Checklist. This surveillance happens any time inspec- tion personnel are in the air operations area. This is an inspection of activities for compliance with regulations/procedures and any abnormalities with physical facilities that are readily apparent. • Appendix 3: Periodic Condition Inspection Checklist. This inspection is performed on a regular schedule but happens less frequently than daily. The inspection consists of specific checks of physical facilities. • Appendix 4: Special Inspection Checklist. This list review is conducted after a complaint has been received, an unusual condition or event occurred, or an accident or incident reported. ATA Form Name 103.01A Fuel Facility Checks – Daily and Monthly 103.01B Fuel Facility Checks – Daily Sump Results and Filter Differential Pressure 103.01C Fuel Facility Checks – Quarterly and Semi-Annual 103.01D Fuel Facility Checks – Annual 103.01E Fuel Facility Checks – Annual (Continued) 103.02 Record of Fuel Receipt by Transport Truck 103.03 Record of Fuel Receipt by Pipeline 103.04A Aircraft Fueling Equipment Checks – Daily 103.04B Aircraft Fueling Equipment Checks – Monthly 103.04C Aircraft Fueling Equipment Checks – Quarterly, Semi-Annual, and Annual 103.05A Hydrant System Checks – Daily 103.05B Hydrant System Checks – Monthly 103.05C Hydrant System Checks – Quarterly, Semi-Annual, and Annual 103.06 Filter Vessel Record – Daily 103.07A Tank Inspection and Cleaning Record – Reclamation Tanks 103.07B Tank Inspection and Cleaning Record – Storage Tanks 103.07C Tank Inspection and Cleaning Record – Refueler Tanks 103.08 Fuel Quality Test Record 103.09A Filter Vessel Record – Annual Visual Inspection and Cleaning Record 103.09B Filter Vessel Record – Annual Element Change 103.10 Fuel Confirmation Order Form Source: ATA Specification 103, 2006. Table 11-5. ATA Specification 103 inspection and maintenance forms.

Operating the Fuel Facility 169 • Appendix 5: Quarterly Inspections. These inspection procedures are based on NFPA 407 and should comply with the fire safety standards listed in the airport certification manual. – Appendix 5A: Quarterly Inspection. Mobile Refuelers. – Appendix 5B: Quarterly Inspection. Fuel Storage Areas. It is important that the personnel performing these inspections are well trained, know what to look for, and understand what they see. Five common issues in quality control of fueling include: 1. Errors in fuel quality control records and documentation; 2. Inadequate inspection or audit by external agencies; 3. Improper storage of fuel quality devices; 4. Misfueling caused by inadequate or poor signage and marking; and 5. Inaccurate fuel quality control checks, such as poor practices during white bucket testing (Quilty, 2015). 14 CFR Part 139 inspection requirements also include verification of training. Personnel require- ments are detailed in Part 139.303. See Chapter 10.5, for more information on training requirements. ACRP Synthesis 63 (Quilty, 2015) has the following additional sample checklists in Appen- dices L to R: • Daily/Monthly/Quarterly/Annually/Periodic for Storage Tanks • Daily/Monthly/Quarterly/Annually/Periodic for Mobile Fuelers • Filtration Test • Filter Vessel Record • Receipt of Fuel Inspection is the primary responsibility of the airport owner, operator, or a duly authorized representative. They may delegate the job of ensuring operations safety to the airport manager or supervisor. Inspections of areas may be further delegated to individual air carriers, fixed-base operators, or other tenants. However, the certificate holder is ultimately responsible at Part 139 airports. 11.5 Operating Permits and Certifications Permitting requirements and associated certifications for operating airport fuel systems are typically the responsibility of local and/or state agencies. Entities such as the fire marshal, state or local air quality regulating agencies, water resources regulating agencies, and other related environmental agencies can require permits for a fuel system installation or even individual fuel system components such as storage tanks. There can be many variations on the permitting required depending on location (state, county, or city), and the permitting requirements for a specific installation should be properly vetted prior to constructing or operating a fuel system. As discussed in Section 3.4, Title V of the Clean Air Act requires major sources of air pollutants, and certain other sources, to obtain and maintain an operating permit. Title V permits need to be renewed every 5 years. During that time, the facility will need to 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. 11.6 Facility Maintenance and Repairs ATA Specification 103 contains substantial procedures and periodic maintenance require- ments and inspections for airport fuel systems. The majority of these procedures, preventative maintenance items, and inspections are typically performed directly by the fuel system operator.

170 Airport Management Guide for Providing Aircraft Fueling Services There are a number of specialized companies in different regions of the United States that provide third-party maintenance and repairs for fuel system components, as well as supply replacement parts and equipment for fuel systems. Some of these companies provide comprehensive fuel system maintenance, while others may provide specialized services for limited components. 11.7 References 14 CFR Part 139 § 329—Pedestrians and ground vehicles. Available: https://www.law.cornell.edu/cfr/text/14/139.329. City of Phoenix. Study Guide for Fuel Handlers. Phoenix Sky Harbor Airport, 2006. Available: https://www. skyharbor.com/docs/default-source/default-document-library/fuel-handlers-study-guide-(1).pdf?sfvrsn=0. EPA. Spill Prevention, Control, and Countermeasure (SPCC) Regulation 40 CFR Part 112: A Facility Owner/ Operator’s Guide to Oil Pollution Prevention. 2010. Available: https://www.epa.gov/sites/production/files/ documents/spccbluebroch.pdf. Experimental Aircraft Info. Grounding Aircraft. Available: https://www.experimentalaircraft.info/flight-planning/ aircraft-refueling-1.php. 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/document Library/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. Jones, C., Fewtrell, P., Petrie, A., et al. “Quantified Risk Assessment of Aircraft Fueling Operations.” The Health & Safety Executive, 2000. Available: http://www.hse.gov.uk/research/crr_pdf/2000/crr00288.pdf. Phillips 66. Safety Data Sheet, Aviation Gasoline, 100LL. March 4, 2013. Available: http://www.aviation-fuel.com/ pdfs/MSDS_for_AvGas_100LL_from_P66_dated_3-04-13.pdf. Quilty, S. M. ACRP Synthesis 63: Overview of Airport Fueling System Operations. Transportation Research Board of the National Academies, Washington, D.C. 2015. RMAF Fire School. Aviation Fuel and Aircraft Fuel System. Available: https://www.scribd.com/document/153310838/ Aviation-Fuel-and-Aircraft-Fuel-System. Security Guidelines for General Aviation Airports. Transportation Security Administration. 2004. Available: https://www.nifc.gov/aviation/BLMsecurity/security_airports2004.pdf. U.S. Oil & Refining Co. Material Safety Data Sheet, Jet Fuel. July 9, 2013. Available: http://www.usor.com/files/ pdf/4/Jet%20Fuel%20-%20SDS%20941%20-%20130709.pdf.

171 12.1 Managing Inventory 12.2 Ordering Fuel 12.3 Pricing Retail Fuel 12.4 Self-Service, Discounts, and Contract Rates 12.5 Monitoring Competition and Adjusting Prices 12.6 Keeping Posted Fuel Prices Current 12.7 Reviewing Performance This chapter discusses how to manage fuel inventories, time and place fuel orders, and set prices. Each of these tasks involve some computations and analysis, which are presented as examples. Tables 12-1 through 12-5 and 12-7 through 12-10 can be downloaded as Excel work- sheets from Appendix B on the TRB website and customized for specific airports. Appendix B can be found by searching on “ACRP Research Report 192.” 12.1 Managing Inventory Inventory management is the practice of ensuring that sufficient fuel is available to meet normal demand. Occasionally a special event, a natural disaster such as fire or flood, or an emergency will necessitate additional fuel supplies. However, for normal fueling operations at an airport, it is important to: • Estimate average weekly and monthly sales volumes for jet fuel and Avgas, and • Monitor storage tank levels to anticipate when fuel deliveries are needed. The last chapter addressed specific ways to check fuel levels in storage tanks. This chapter addresses how to use this information as part of a fuel purchasing program. 12.1.1 Average Weekly and Monthly Sales Most airport fueling operations use POS software that keeps track of daily, weekly, and monthly sales of fuel. These records are very useful to gauge average fuel sales and turnover of inventory. Table 12-1 shows how to organize this information for Avgas or jet fuel. For inventory purposes, the two fuels should be tracked separately. In this example, the fuel provider would order fuel approximately every 3 months. Since some airports experience seasonal variations in airport activity and demand for fuel, a complete year of weekly data can be useful for anticipating fuel deliveries during different seasons. C H A P T E R 1 2 Managing Inventory, Ordering Fuel, and Setting Prices

172 Airport Management Guide for Providing Aircraft Fueling Services Multiple years of weekly data would be even more informative. Also, while Avgas purchases can be relatively small, jet fuel purchases can be large and, consequently, turnover of inventory is faster. For airports with a single storage tank for jet fuel, inventory management is critical to maintain adequate fuel supplies and to accommodate potentially large-volume purchases. 12.1.2 Storage Tank Capacity The average size storage tank at smaller airports, based on research conducted for this study, was 12,000 gallons. Some airports that operated self-service units had a storage tank associated with the unit that had a smaller capacity (1,000 gallons to 10,000 gallons). The size of the tank does not equate directly with the amount of fuel the tank can store. At least 5% to 12.5% of empty capacity must remain available for overfill prevention. In addition, fuel tanks cannot be totally emptied during normal fueling operations. An unusable tank bottom exists, equal to one or more feet of tank height/volume. This is because the suction pipe draws in vortexed air instead of fuel as the liquid surface lowers and approaches the open pipe inlet. Marginal safety space at the top of the tank and unusable fuel space at the bottom need to be accounted for in determining remaining “usable” fuel and scheduling a delivery before usable volumes are fully depleted. Each tank manufacturer will have guidelines for overfill margins and unusable bottom fuel. For example, Southern Illinois Airport (MDH) has an Avgas fuel storage tank with a 15,000-gallon capacity. Taking out capacity for overfill margin and unusable bottom fuel yields a usable capacity of 12,125 gallons. Table 12-2 shows the calculation. Week Beginning Inventory Fuel Deliveries Gallons Sold Adjustments End of Week Inventory Monthly Gallons Sold Year-to- Date 1 2,675 446 (3) 2,226 2 2,226 8,500 541 (5) 10,180 3 10,180 660 (4) 9,516 4 9,516 580 (2) 8,934 2,227 2,227 5 8,934 1,058 (6) 7,870 6 7,870 1,117 (6) 6,747 7 6,747 1,501 (7) 5,239 8 5,239 1,127 (5) 4,107 4,803 7,030 *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: Prepared by KRAMER aerotek, 2018. Table 12-1. Example of inventory history for Avgas or jet fuel.* Capacity Notes 15,000 Total tank size (1,875) Less 12.5% for overfill margin 13,125 Remaining capacity (1,000) Less 1,000 gallons for unusable bottom fuel 12,125 Usable capacity *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: Southern Illinois Airport, 2018. Table 12-2. Calculation of usable capacity of Southern Illinois Airport’s Avgas storage tank.*

Managing Inventory, Ordering Fuel, and Setting Prices 173 Using a similar methodology for a 12,000-gallon storage tank, the tank has an estimated usable capacity of 9,600 gallons of fuel. This assumes a 1,500-gallon (12.5%) empty space capacity and a 900-gallon capacity for the unusable bottom fuel.1 If a full delivery of fuel involves 7,500 or 8,000 gallons of fuel, then the storage tank can have 1,600 to 2,100 gallons remaining in the tank and still accept a full delivery. Some fuel operators use mobile fueling trucks as additional available fuel storage. Airports with bulk storage tanks that are 10,000 gallons or less or who have slow turnover of fuel must manage inventory carefully and may opt for the delivery of partial loads. In this situation, airports coordinate with surrounding or neighboring airports to share loads or partial loads and asso- ciated fees. Some fuel suppliers will help coordinate split deliveries between airports as well. 12.1.3 Lead Time for Orders and Delivery There is always a lead time needed for orders and delivery of fuel. This timing is dependent on the airport’s location, proximity to fuel suppliers, and whether the load is a full or partial load. Airport managers from this study stated that their deliveries typically arrived within a few days of placing the order. Jet fuel has greater availability and can often arrive within 1 day of an order. Avgas deliveries may take several days. Best practice is to work with the fuel supplier to deter- mine specific lead times. Partial loads deliveries will require more time for set up. 12.2 Ordering Fuel Fuel delivery quantities needed are an important part of the ordering process. Trucked air- craft fuel deliveries normally vary from 4,000 gallons to 8,000 gallons per truck load, with even smaller volumes available at higher costs per gallon. A full truck load is the most efficient and cost-effective means of purchasing and delivering fuel. Local trucking practices and availability of different size tanker trailers can influence the cost of fuel and its delivery. Scheduled delivery times and the urgency of delivery also can influence fuel price and avail- ability. Having fuel delivery scheduled well in advance during normal business hours and during the work week is typical, with potential premium costs incurred for expedited, after hours, or weekend deliveries. Airports with less traffic can run down their reserve while watching weekly fuel prices. Careful strategy and timing of a fuel purchase can make the difference because an airport’s retail selling price depends directly on the delivered fuel cost. Any efforts to reduce delivered costs will help fuel margins and give an airport more pricing flexibility if the price of retail fuel declines. Prices for delivered fuel vary from week to week. A 5- to 10-cent difference in the price per gallon of fuel is noticeable when a fuel operator orders 8,000 gallons. If an airport purchases fuel weekly or biweekly, price fluctuations will average out, but for fuel operators at smaller airports who order fuel quarterly or every 6 months, the price paid is significant, particularly if fuel prices decline while the operator is trying to sell the inventory. To address price fluctuations, it is useful to monitor delivered and wholesale price trends for fuel and crude oil. Figure 12-1 suggests different ways to monitor price trends. Monitoring prices is particularly important for airports selling unbranded fuel. These airports can purchase fuel from any local supplier that offers the lowest delivered cost. 1 For a standard 12,000-gallon cylindrical steel tank, of dimensions 8 feet in diameter by 32 feet long, the bottom 1 foot of tank height approaches 900 gallons. With an 87.5% maximum level leaving 1,500 gallons air volume in top, and the 900 gallons of unusable tank bottom, this equates to approximately 2,400 gallons of unavailable tank volume, or approximately 1⁄5 (20%).

174 Airport Management Guide for Providing Aircraft Fueling Services It is useful to put the inventory management or ordering process together. Table 12-3 describes assumptions for a basic example of Avgas inventory management, assuming steady demand for Avgas throughout the year. Figure 12-2 illustrates how an airport would plan for a fuel purchase. This example airport has a 12,000-gallon bulk storage tank for Avgas. To avoid overfilling their tank, the management applies a 12.5% safety factor to account for overfill margins. (The tank also has a fail-safe device that limits capacity to prevent overfill.) Safety factor limits plus an allowance for unusable fuel at the bottom of the tank sets the storage tank’s maximum fill level at approximately 9,600 gallons of usable capacity.2 Figure 12-2 indicates the unusable fuel at the bottom of the tank by the dark green color and dashed line; available fuel is shown in light green. The airport can expect a full load of fuel averaging around 8,000 gallons, but this could vary depending on the supplier and the delivery truck capacity. The earliest the airport manager would want an 8,000-gallon fuel delivery is when 1,600 gal- lons remain in the bulk storage tank. The average of 770 gallons sold per week allows the fuel operator a little over 2 weeks to place a fuel order. Since one goal is to purchase when the cost of delivered fuel is lowest, weekly market trends may provide some insight; however, the art of timing a fuel purchase is not an exact science. Source: Prepared by KRAMER aerotek, 2018. Sources of Fuel Price Information Weekly Price Sheets Fuel suppliers provide weekly price sheets for the delivered cost of fuel. Airports selling unbranded fuel can also receive price sheets from various providers. From weekly price sheets, the fuel provider can track trends in fuel prices over time. WTI Price Benchmark West Texas Intermediate is one of three primary benchmarks indicating the current value of crude oil. This indicator of fuel value is updated daily on several websites. Changes in the WTI benchmark affect cost of aviation fuel. Jet Fuel Spot Price Spot prices of jet fuel are tracked by U.S. Gulf Coast Kerosene benchmark. This is a daily indicator of the cost of jet fuel and is available on many websites. This does not reflect the price an airport pays but can indicate how the market is trending. Figure 12-1. Tracking aviation fuel and crude oil price trends. Avgas Data Quantity Bulk Storage Tank Size 12,000 Gallons Usable Capacity 9,600 Gallons Annual Avgas Sales 40,000 Gallons Weekly Avgas Sales 770 Gallons Average Fuel Delivery Size 8,000 Gallons Full-Load Deliveries per Year 5 Deliveries Number of Weeks between Deliveries 12.5 Time from Order Date to Delivery Date 3 Days *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: Prepared by KRAMER aerotek, 2018. Table 12-3. Example of assumptions used in Avgas inventory.* 2 12,000 gallons – 1,500 gallons (overfill prevention allowance) – 900 gallons (estimated gallons of unusable fuel) = 9,600 gallons.

Managing Inventory, Ordering Fuel, and Setting Prices 175 In this example, the airport’s fuel supplier generally delivers Avgas within 3 business days after the order is placed. The operator would need to order fuel with the understanding that the fuel will not arrive for 3 business days when there is at least 330 gallons usable Avgas remain- ing. If the airport is selling at its average rate (110 gallons per day) with a margin of safety, it is good practice to arrange a 3-day delivery when the tank has 900 to 1,000 gallons of usable fuel remaining. 12.3 Pricing Retail Fuel An important aspect of a fueling operation is setting prices for full-service and self-service fuel. In addition, the operator must establish the basis of any discount programs and establish an upload fee for contract fuel (if the fuel operator has this provision in its contract with the fuel supplier). This section offers tools that the fuel operator can use to set prices. Figure 12-3 describes the different elements that go into setting price. They include: • Airport pricing strategy, • Retail price basis, • Market competition, • Discount programs, and • Performance tracking. Source: Prepared by Kimley-Horn and Associates, 2018. Figure 12-2. Example for planning fuel purchases.

176 Airport Management Guide for Providing Aircraft Fueling Services 12.3.1 Fuel Pricing Strategy The starting point in Figure 12-3 is the airport’s pricing strategy, which is introduced and discussed in Chapter 10.2. A fuel price strategy includes consideration of existing jet and Avgas fuel customers, degree of customer price sensitivity, presence of a low-price fuel operator in the area, and consideration of how the pricing strategy fits with the airport brand. For example, in locations with intense competition for price-sensitive customers, the fuel provider must decide whether to compete for these customers. Lowering prices or striving to offer the lowest price in a region may reduce, or eliminate altogether, margins on fuel. An airport may try to price fuel in the middle or on the lower end of the price spectrum. Other airports may have less price-sensitive customers and can charge what the traffic will bear. Most airports set prices that are reasonable in their market and that cover the cost of delivered fuel, a portion of operating costs for the provision of fueling services, and a markup on the fuel. 12.3.2 Setting the Full-Service Retail Price The cost of delivered fuel is the starting point for setting a retail price for fuel. In addition, a fuel operator will want to cover operating expenses associated with the fueling business and Source: Prepared by KRAMER aerotek, 2018. Pricing Strategy • Low-price leader • Competitive in the lower quadrant of market rates • High margins for less price-sensitive market Retail Price Basis • Cost of delivered fuel • Establish annually a markup for jet and Avgas fuel based on actual operating costs and revenues • Add in a target retail margin Market Competition • Review competing airport's prices using price tracking websites • Understand the competition's pricing strategies • Adjust profit margin based on current market conditions and competition Discount Programs • Establish discounts on self-service fuels • Determine any additional discount programs Performance Tracking • Track monthly average price per gallon sold (total revenue/gallons sold) • Evaluate effectiveness of the discount programs • Observe fluctuation of sales with changes in fuel prices Figure 12-3. Elements of a price setting.

Managing Inventory, Ordering Fuel, and Setting Prices 177 receive a profit on each gallon of fuel sold. This section provides a methodology to estimate operating costs associated with an airport fueling business and builds a basis for a retail price structure. Estimating operating costs can be done once per year when the airport is preparing its annual budget. Other aspects of the retail price will be adjusted when the airport receives fuel deliveries and when there is change in local prices for fuel. These tables are also available for download in Appendix B on the TRB website as Excel worksheets and can be customized by specific airports. The retail price of fuel includes the following components: • Delivered product costs, • Operating expenses associated with the fueling business, • Fuel revenues and other revenue streams supporting the airport, and • A retail margin. The principal operating expenses at small GA airports include employee salaries and benefits, maintenance of equipment, insurance, and utilities. Most of these expenses apply to all aspects of airport operations. The challenge is to allocate a portion of these expenses to the fueling operation. In this retail pricing calculation, operating expenses are allocated in proportion to operating revenues. If an airport generates revenue through its fueling operations, hangar and office rentals, sale of pilot supplies, and rental car concession fees, operating expenses can be assigned to each “revenue center” proportionally to the amount of revenue generation. This method makes it possible to assign a portion of operating costs to the fueling operation. Table 12-4 begins the calculation by converting airport operating expenses into costs per gallon of fuel sold and revenues into revenues per gallon of fuel sold. These conversions are completed using the total number of gallons sold in the previous year. An excellent time to prepare the cost basis for fuel is when the airport is preparing its budget and looking back at the previous year’s actual expenditures and revenues. It is good practice to prepare the airport cost basis at least once per year, and more frequently if there are significant changes to airport operating expenses or revenues. Table 12-5 uses this data to build a retail price for Jet A and Avgas fuels. Each element of the calculation is described in the sections that follow the table. Delivered Product Cost The first portion of the retail calculation includes the delivered cost for Avgas and Jet A, a flowage fee, and associated taxes. Taxes for fuel include both federal and state charges that will vary by fuel type, by state and local jurisdictions, and depend on whether the customer is a commercial airline or private aircraft operator. Federal taxes are consistent throughout the country. State and local taxes listed may not apply to all taxing jurisdictions. • Federal Excise: Federal tax imposed on the sale of fuel. This tax varies between Avgas and Jet A. • LUST: Leaking Underground Storage Tank Trust Fund. This tax funds enforcement of non-compliant tank systems and funds select spill cleanup needs.3 • Superfund/Oil Spill Fee: Tax imposed by the EPA for oil spill cleanup. • State Excise: State tax imposed on the sale of fuel. This varies from state to state. • Local Tax: Local tax applied to fuel sales. This varies based on location. • Tank Fee: Fees assigned by the state for each storage tank. • State Sales: State sales tax is applied to the cost of fuel. This rate is set by individual states. 3 FHWA. https://www.fhwa.dot.gov/motorfuel/faqs.htm.

178 Airport Management Guide for Providing Aircraft Fueling Services Operating Expenses In addition to the direct cost of delivered fuel, an airport operator must consider the expenses associated with operating a fuel facility. Operating expenses include all the costs associated with airport operation divided by the total gallons of fuel sold. Operating expenses can include the following categories: • Aviation supplies (oil, deicing fluid, pilot supplies); • Employees and benefits; • Equipment rental, lease, or purchase; • Software and licenses; • Maintenance; • Utilities; • Insurance; • Marketing; • Startup costs; and • Business and administrative expenses. Fuel Sales, Operating Expenses, and Other Operating Revenue Sales Data Jet A Avgas Total 2017 Volume Purchased (Gallons) 82,500 37,500 120,000 2017 Cost of Delivered Fuel ($) $146,000 $106,000 $252,000 2017 Volume Sold (Gallons) 80,000 40,000 120,000 Operating Expenses Annual Cost Cost per Gallon Aviation Supplies $2,000 $0.02 Employees and Benefits $100,000 $0.83 Equipment Rental, Lease, or Purchase $20,000 $0.17 Software and Licenses $2,000 $0.02 Maintenance $6,000 $0.05 Utilities $4,000 $0.03 Insurance $35,000 $0.29 Marketing Expenses $1,500 $0.01 Startup Costs $0 $0.00 Business and Administrative Allocation: 20% $30,950 $0.26 Total Operating Expenses $204,600 $1.71 Offsetting Revenues (Reducing Factors) Annual Revenue Revenue per Gallon Aviation Supplies (oil, deicing fluid, pilot supplies) $7,500 $0.06 Aviation Services (deicing, catering, etc.) $6,000 $0.05 Tie-Down, Ramp, and Landing Fees $15,000 $0.13 Rental Income (hangars, terminal space, offices) $75,000 $0.63 Rental Car Commission $5,000 $0.04 Other Revenue $0 $0.00 Total Offsetting Revenue $108,500 $0.90 *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: Prepared by KRAMER aerotek and Petroleum Product Marketing and Consulting, 2018. Table 12-4. Example of first calculations to determine retail fuel price.*

Managing Inventory, Ordering Fuel, and Setting Prices 179 Retail Fuel Price Build (per gallon) Cost of Product Jet A Avgas Delivered Cost of Fuel $1.77 $2.83 Taxes Federal Excise $0.2440 $0.1990 LUST $0.0010 $0.0010 Oil Spill $0.0019 $0.0019 State Excise $0.0600 $0.0600 Local $0.0500 $0.0500 Tank Fee/Tax (Environmental) $0.0150 $0.0150 State Sales Tax (Jet A): 2.90% $0.0621 ---------- State Sales Tax (Avgas): 0.00% ---------- $0.00 Fuel Flowage $0.10 $0.10 Subtotal: Cost of Product $2.307 $3.254 Operating Expenses Jet A Avgas Aviation Supplies (oil, deicing fluid, pilot supplies) $0.0167 $0.0167 Employees and Benefits $0.8333 $0.8333 Equipment Rental, Lease, or Purchase $0.1667 $0.1667 Software and Licenses $0.0167 $0.0167 Maintenance $0.0500 $0.0500 Utilities $0.0333 $0.0333 Insurance $0.2917 $0.2917 Marketing $0.0130 $0.0130 Startup Costs $0.0000 $0.0000 Business and Administrative Allocation: 20% $0.2579 $0.2579 Subtotal: Operational Expenses $1.7050 $1.7050 Offsetting Revenues (Reducing Factors) Jet A Avgas Aviation Supplies (oil, deicing fluid, pilot supplies) ($0.0625) ($0.0625) Aviation Services (deicing, catering, GPU, etc.) ($0.0500) ($0.0500) Tie-Down, Ramp, and Landing Fees ($0.1250) ($0.1250) Rental Income ($0.6250) ($0.6250) Rental Car Commissions ($0.0417) ($0.0417) Other Revenue $0.0000 $0.0000 Subtotal: Offsetting Revenues ($0.9042) ($0.9042) Sale Price Calculation Jet A Avgas Total Cost of Product (including taxes) $2.3066 $3.2536 Operational Expenses $1.7050 $1.7050 Reducing Factors (Offsetting Revenues) ($0.9042) ($0.9042) Total Product Cost $3.1074 $4.0544 Retail Margin $1.5000 $1.2500 Credit Card Processing Fees: 3% $0.1382 $0.1591 Proposed Full-Service Retail Sales Price $4.75 $5.46 *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: Prepared by KRAMER aerotek and Petroleum Product Marketing and Consulting, 2018. Table 12-5. Example of full-service retail price calculations.*

180 Airport Management Guide for Providing Aircraft Fueling Services These categories of operating expenses were described in detail in Chapter 8, but should be customized according to the way the airport reports its expenses (see Chapter 8.3, Table 8-2). Alternate Revenue Sources Since the operating expenses apply to all aspects of the airport, alternate revenue sources at the airport are subtracted from cost basis calculation to offset the fact that operating expenses for the entire airport are incorporated. Alternate revenue sources are also listed in Table 12-4 and could include, but are not limited to, the following categories: • Aviation supplies; • Aviation services (deicing, catering, etc.); • Tie-down, ramp, and landing fees; • Rental income; • Rental car commissions; and • Other revenue. Retail Margin The net product cost is obtained by adding the delivered cost per gallon and allocated operating costs per gallon. This value is the cumulative direct and indirect costs the airport incurs to sell one gallon of fuel. If an airport were to set their retail price at the net product cost, they would break even, gaining no profit from the transaction. The retail margin is added to this net product cost to generate revenue beyond that of the expenses incurred. This establishes a realistic retail price that would then be compared to retail prices charged by competitors. Sometimes market conditions allow an airport to charge retail prices that yield a higher retail margin. Squeezes on the retail margin also can occur when other airports offer lower fuel prices. Credit Card Fees Finally, the credit card fee is added to the markup. Most fuel transactions are completed electronically, so an airport would incorporate the credit card processing fee and pass it onto the customer. This is assessed at the end of the retail price calculation. The credit card fee is usually a percentage, approximately 3% of the final retail price. Implications of the Retail Price Calculation Many of the airports interviewed for this research reported that fuel revenues were less than expected. In addition, setting the retail price for fuel was typically accomplished by adding a fixed markup to the delivered cost of fuel and making some adjustments to the price if fuel at competing airports was substantially lower or higher. Margins are often tracked by subtracting delivered costs of fuel from fuel revenues. While this measure of “gross margin” is useful to follow trends, it does not account for other operating expenses associated with a fueling operation. The retail price calculation suggested here allocates a portion of airport operating costs to the fueling operation. This approach acknowledges that many small airports cross-utilize employees and some equipment and thus allocate airport operating costs to fueling and other revenue- producing activities. The more alternative revenue streams an airport has, the lower the allocation of operating costs to an airport’s fueling business. In the example presented in Table 12-5, the airport retail margin after expenses was $1.50 per gallon of jet fuel and $1.25 per gallon of Avgas. If all 120,000 gallons of fuel was sold for the retail price, the airport would net $170,000 for fuel sales. However, the retail price of fuel, particularly for jet fuel, does not reflect the actual average price paid for fuel because of volume discounts and contract rates. Many airports also offer discounts for self-service fuel products. These discounts are discussed in the next sections.

Managing Inventory, Ordering Fuel, and Setting Prices 181 12.4 Self-Service, Discounts, and Contract Rates 12.4.1 Self-Service After setting the retail price, a fuel operator would establish a price for self-service. Most airports apply a straight discount off the retail price for self-service. As prices for aviation fuels vary throughout the country, the price spread between full-service and self-service products is highly variable. Table 12-6 presents a sample of average prices for Jet A and 100LL fuel by FAA region. Discounts for self-service Jet A run between $0.73 and $1.24; discounts for Avgas (100LL) are between $0.43 and $0.80. These discounts substantially reduce retail fuel margins; however, in reality, a self-service unit also reduces labor costs and the need for mobile fueling trucks as well. 12.4.2 Other Discount Programs There are a variety of discounts available to fuel customers. On the airport side, a fuel operator may offer volume discounts to jet fuel customers for purchases in excess of 400 gallons. Other discounts may be offered to tenants with based aircraft, to customers that prepay for fuel, or to customers who purchase their fuel on special days or the weekend. Corporate flight departments and pilots may participate in discounts available to members of the CAA or discounts offered with certain credit cards. It is good practice for airport fuel operators to review results of discount programs quarterly to make sure that discounts offered are actually attracting additional customers and resulting in higher overall fuel revenues. 12.4.3 Contract Rates If an airport sells branded jet fuel, there may be a provision in the fuel supplier contract that the airport can participate in the supplier’s contract fuel program. It is common among cor- porate flight departments to negotiate contract rates for jet fuel with their fuel suppliers. With contract rates, an airport does not know what price the customer pays for fuel. The fuel supplier reimburses the local fuel operator for the delivered cost of the fuel, including any unsettled taxes. In addition, the fuel supplier pays an upload or into-plane fee and a fuel flowage fee. Upload fees are negotiated between the local fuel operator and the fuel supplier. Upload fees are not widely publicized. Each local fuel operator negotiates this fee individually, and it is in the supplier’s Source: https://www.globalair.com/airport/region.aspx, February 23, 2018. Lowest FS 100LL Full-Service Self-Service Price Difference FAA Region Jet A 100LL Jet A 100LL Jet A 100LL Central $4.41 $4.84 $3.43 $4.41 $0.98 $0.43 Southwest $4.74 $4.99 $3.70 $4.19 $1.04 $0.80 Great Lakes $4.60 $5.06 $3.72 $4.52 $0.88 $0.54 Southern $4.95 $5.10 $3.71 $4.32 $1.24 $0.78 Northwest Mountain $4.66 $5.32 $3.92 $4.82 $0.74 $0.50 Eastern $5.27 $5.47 $4.21 $4.89 $1.06 $0.58 New England $4.98 $5.48 $3.99 $4.81 $0.99 $0.67 Western Pacific $4.95 $5.55 $4.22 $4.81 $0.73 $0.74 Alaska $6.19 $6.86 $5.03 $6.29 $1.16 $0.57 Table 12-6. Average posted fuel prices by FAA Region, February 2018.

182 Airport Management Guide for Providing Aircraft Fueling Services interest to keep these fees as low as possible. Sometimes the fuel supplier will suggest a fee; but in general, the airport fuel provider sets the upload fee, which may be changed annually, every 6 months, or quarterly. One airport interviewed for this project reported setting the upload fee monthly. Table 12-7 shows an example of how a local fuel operator may use the data in Table 12-5 to generate an upload fee. For contract rates, the airport margin is likely to be discounted. For airport-operated fueling services, airports will need to establish a fuel flowage fee that is included in the fuel supplier payments for contract fuel sales. Some airport sponsors may need to establish the fuel flowage fee by local ordinance. 12.4.4 Importance of Tracking Average Fuel Prices Paid Given the fact that aviation fuel is sold at retail, discounted, and contract rates, it is important for local fuel service operators to track the average per gallon sales price of jet fuel and Avgas at their airport. Table 12-8 provides a template to track the average sales price paid for jet fuel or Avgas weekly. This example uses jet fuel, but all aviation fuel products should be tracked in sepa- rate spreadsheets. By aggregating all fuel sales for a particular fuel, this table makes it possible to compare the average price paid by a pilot who purchases a gallon of fuel (incorporating discounts, self-service sales, and contract sales) with the retail price posted. The cumulative results will build across an entire year and make it possible to evaluate year-to-date fuel revenues and gallons sold and to discern multiweek trends in the average price paid by the airport’s fuel customers. Upload Fee for Contract Fuel Jet A Operating Expenses $1.7050 Offsetting Revenue ($0.9042) Airport Margin for Contract Fuel $0.75 Upload Fee $1.55 Flowage Fee $0.1000 *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: Prepared by KRAMER aerotek, 2018. Table 12-7. Example of upload fee calculation per gallon.* Weekly Results Cumulative Results Week Fuel Revenue Gallons Sold Average Price per Gallon Fuel Sales Gallons Sold Average Price 1 $4,846 1,127 $4.30 $4,846 1,127 $4.30 2 $4,313 987 $4.37 $9,159 2,114 $4.33 3 $3,459 788 $4.39 $12,619 2,902 $4.35 4 $3,776 874 $4.32 $16,394 3,776 $4.34 5 $2,756 689 $4.00 $19,150 4,465 $4.29 6 $3,087 753 $4.10 $22,238 5,218 $4.26 7 $3,842 963 $3.99 $26,080 6,181 $4.22 8 $5,970 1,500 $3.98 $32,050 7,681 $4.17 *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: Prepared by KRAMER aerotek, 2018. Table 12-8. Example of average sales price for jet fuel.*

Managing Inventory, Ordering Fuel, and Setting Prices 183 12.5 Monitoring Competition and Adjusting Prices So far, the pricing strategy has looked internally at the delivered cost of fuel, operating expenses, and revenue streams at the airport. However, unless the airport has a captive market, what other competing airports charge for fuel is important to consider. Many airport fuel providers chose to offer only full-service and not compete directly with the lowest price fuel in the region. The pricing strategy discussed in Section 12.3.1 will help to solidify where the airport will position itself on the competitive spectrum. Chapter 5 provides a detailed review of understanding an airport’s competitors. Table 12-9 repeats the template to track pricing at competing airports. Because fuel prices fluctuate, best practice is to monitor price sheets from the fuel supplier and retail fuel prices at competing airports every week. If the airport receives a fuel delivery, the retail price will be recalculated based on new delivered costs and local market conditions. For airports with existing inventory, best practice is to make price adjustments to retail margins (ideally ± 15% change in margin) every 2 weeks based on local market conditions and the airport’s pricing strategy. 12.6 Keeping Posted Fuel Prices Current This chapter outlined ways to: • Manage fuel inventories, • Schedule orders, • Monitor prices, • Construct a retail price based upon the delivered cost of fuel, an allocation of airport operating costs to the fueling operation, and a retail margin, • Offer a discounted price for self-service fuel if offered at the airport, • Prepare a defensible upload fee for contract fuel purchases, • Keep track of average sales prices achieved, and • Adjust airport fuel prices to reflect current market conditions. Getting control of these aspects of the airport fueling business is critical. Maintaining current price listings where the airport advertises fuel is also critical. Pilots and corporate flight departments plan fuel stops based on pre-negotiated rates or the advertised retail price for aviation fuels. If the air- port fuel provider is making price adjustments every 2 weeks, best practice is to post the new prices immediately at the fuel stations, on the airport website, with the fuel supplier and its marketing channels, and with price-tracking applications currently in use. These include 100LL, AC-U-KWIK, AirNav, AOPA GO, FlightAware, FlightPlan, FlyQ EFB, ForeFlight, Garmin Pilot, and GlobalAir. Week Home Airport Competing Airport 1 Competing Airport 2 Avgas Jet A Avgas Jet A Avgas Jet A SS FS SS FS SS FS SS FS SS FS SS FS 1 *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. N���: SS = self-service, FS = full-service. Source: Prepared by KRAMER aerotek, 2018. 2 3 4 Table 12-9. Retail fuel price survey of competing airports.*

184 Airport Management Guide for Providing Aircraft Fueling Services 12.7 Reviewing Performance The last important practice is tracking performance of the airport fueling business. On a monthly basis, it is useful to evaluate how each of the aviation product sales are performing. The following statistics will help to track and analyze the airport fuel business and are integral to an annual fuel manager report, discussed in Chapter 13: • Gallons sold, • Fuel sale revenue, • Delivered cost of fuel, • Gross margin (fuel sale revenue-cost of delivered fuel), • Number of sales transactions, • Average gallons per transaction, • Average sale per transaction, and • Average price per gallon sold. Table 12-10 presents a template for a monthly statistics report. With this report, the airport fuel manager can track changes over the year, compare results with previous years, and see how changes in prices (up or down) and special discounts affect sales.

Fuel Type _____________ Year _________________ Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year-to- Date Previous Year-to- Date Gallons sold a Fuel sales revenue b Delivered cost of fuel c Gross margin d=b-d Number of sales transactions e Average gallons per transaction f=a/e Average sale per transaction g=b/e Average price per gallon sold h=b/a *Available as an Excel worksheet in Appendix B. Search ACRP Research Report 192 at www.trb.org. Source: Prepared by KRAMER aerotek, 2018. Table 12-10. Template for monthly statistics (Jet Fuel and Avgas reported separately).*

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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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