Advisory Board: Aviation Advisory Board
Subject: Temporarily Eliminate Fuel Flowage Fees for Unleaded Fuel
Presenter: Greg Baer
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 dictating that the wholesale cost of the unleaded fuel is significantly higher than that of the traditional leaded fuel. Once the infrastructure is in place at PSA to dispense the unleaded fuel, reducing the price gap between leaded and unleaded fuels will influence the amount of unleaded fuel purchased by aircraft operators.
Similar to automobile gas stations, retailers of avgas (e.g., FBOs) pay state and federal taxes, as well as local fees that get passed on to consumers. Like many other airports, Contra Costa County charges a Fuel Flow Fee to all entities that dispense fuel at the airport as memorialized their respective lease. Through its lease agreement, PSA currently pays the Airport $0.12 per gallon of fuel delivered to their site.
As a means to lower the retail cost of unleaded fuel as a way to encourage aircraft operators to purchase the unleaded option, the Director of Airports is recommending the elimination of fuel flow fees for unleaded avgas until a commercially feasible and viable fuel is approved by the FAA, and leaded avgas is no longer dispensed at Co...
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