To: Board of Supervisors
From: Greg Baer, Director of Airports
Report Title: Temporarily Eliminate Fuel Flowage Fees for Unleaded Aviation Gas
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE the temporary elimination of fuel flowage fees for Unleaded Aviation Gas at Buchanan Field and Byron Airport, as recommended by the Airport Committee and AUTHORIZE the Director of Airports to reinstate such fees at his/her discretion.
FISCAL IMPACT:
The action would result in an annual reduction of fuel flow fees collected by the Airports Division of approximately $7,200.
BACKGROUND:
The Airports Division has been working with Pacific States Aviation (PSA), one of its Fixed Base Operator (FBO) tenants at Buchanan Field, so they can offer unleaded aviation gasoline (avgas) in addition to the traditional leaded avgas. In accordance with Federal Law, airports similar to those in Contra Costa County, Buchanan Field and Byron Airport must continue to provide leaded avgas until December 31, 2030, or until a commercially viable and feasible unleaded avgas is approved by the Federal Aviation Administration (FAA). Offering an unleaded option is not currently a requirement, but a choice being made by PSA and supported by
the Airports Division.
Because this relatively new unleaded option can't be used in all piston aircraft, supply and demand is causing the wholesale cost of the unleaded avgas to be higher than that of the traditional leaded avgas. If the price gap between lead and unleaded avgas is large, the sales of unleaded fuel are expected to remain low.
Similar to automobile gas stations, retailers of avgas (i.e., FBOs) pay state and federal taxes, as well as local fees that get passed on to consumers. Like most other airports, Contra Costa County charges a Fuel Flow Fee to all entities that dispense fuel at the airport. Through its lease agreement with the County, PSA currently pays the Airport $0.12 per gallon of ...
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