INITIAL REGULATORY IMPACT ANALYSIS OF THE PROPOSED REVISED REGULATIONS IMPLEMENTING TITLES II AND III OF THE ADA, INCLUDING REVISED ADA STANDARDS FOR ACCESSIBLE DESIGN
FINAL REPORT
Prepared By:
HDR HLB DECISION ECONOMICS INC.
8403 Colesville Road, Suite 910
Silver Spring, MD 20910
May 9, 2008
- Executive Summary
- 1. Introduction
- 2. ADAAG Background
- 2.1 Access Board Regulatory Assessment
- 2.2�Requirements
- 2.3�Facilities
- 2.4�Structure of Analysis and Scenarios
- 2.4.1�Barrier Removal and Safe Harbor
- 2.4.2�Classification of Requirements
- 2.4.3�Alternative Baselines�
- 2.4.4�Summary of Scenarios�
- 3.���Benefit-Cost Analysis Approach
- 3.1�Cost Estimation
- 3.1.1�Capital Construction Costs
- 3.1.2�Operations and Maintenance Costs (O&M)
- 3.1.3�Loss of Productive Space�
- 3.2�Benefits Estimation
- 3.2.1�Overview of theory
- 3.2.2�Benefits from Changes in Access Time
- 3.2.3�Economic Models for a Change in Access Time
- 3.3�Risk Analysis
- 3.4�Lifecycle Analysis
- 3.5�Evaluation criteria
- 4.���Data and Assumptions�
- 4.1�Cost Estimation Data and Discussion
- 4.1.1�Number of Facilities
- 4.1.2�Number of Elements per facility
- 4.1.3�Construction Costs
- 4.1.4�Operations and Maintenance Costs
- 4.1.5�Loss of Productive Space�
- 4.1.6�Replacement Costs
- 4.1.7�Expert Cost Review
- 4.2�Benefits Data and Assumptions
- 4.2.1�Number of Facility Visits of U.S. Adults
- 4.2.2�Number of Facility Visits of Persons with Disabilities
- 4.2.3�Lifecycle Assumptions
- 4.2.4�Generalized Use and Access Cost
- 4.2.5�Value of Time
- 4.2.6�Access Time Change
- 4.2.7�Price Elasticity of Demand for a Facility Visit
- 4.2.8�Ease of Access Adjustment
- 4.3�Risk Analysis
- 4.4�Definition of Baselines
- 5.���Results and Discussion
- 5.1�Results Under Primary Baseline Scenario
- 5.1.1�Total Net Present Value
- 5.1.2�Distribution of Costs and Benefits
- 5.1.3�Net Present Value by Requirements
- 5.1.4�Net Present Value by Facilities
- 5.1.5�Net Present Value for Public versus Private Facilities�
- 5.2�Results Under Additional Scenarios
- 5.2.1�Safe Harbor and No Safe Harbor Scenarios
- 5.2.2�Readily Achievable Scenarios
- 5.2.3�International Building Code (IBC) Scenarios�
- 5.3�Relative Impact of Selected Assumptions
- 5.4�Unquantified Benefits -- Option and Existence Values
- 6. Small Business Impact Analysis
Appendices
- Appendix 1: Proposed Framework for the Regulatory Analysis (Reproduced from ANPRM)
- Appendix 2: Summary of Requirements
- Appendix 3: Cost Estimation Data
- A.�Numbers of Facilities�
- B.�Annual Growth Rates of Facilities
- C.�Assumptions With Respect to Estimated Typical Facility Size
- D.�Description of Element
- E.�Number of Elements Per Typical Facility�
- F.�Likelihood of Element in a Typical Facility
- G.�Likelihood of Element in a Typical Facility (Varying by Facility)
- H.�Unit Costs
- I.�Operation and Maintenance Cost�
- J.�Facility Space Cost
- K.�Changes in Productive Space Per Requirement
- L.�Years Before Replacement
- Appendix 4: Benefits Estimation Data
- A.�Average Visits by Adults per Facility�
- B.�Total US Population
- C.�Total Sales per Facility�
- D. Consumer Price Index�
- E.�Percentage of Disability, by Type�
- F.�Income Adjustment Factors by Facility
- G.�Time Use Survey
- H.�Total Access Time per Facility
- I.�Market Price by Facility
- J.�Value of Time
- K.�Description of Benefits by Requirement
- L.�Time Change / Expected Number of Uses Input
- M.�Likelihood of Realizing Benefits
- N.�Total Access Time Change per Facility
- O.�Elasticities�
- P.�Ease of Access (EOA) Adjustment by Facility
- Q.�Examples of Consumer Surplus Calculations
- Appendix 5: Small Business Data
- Appendix 6: RAP Primer
- Appendix 7: RAP Panelists / Agenda
- A.�Benefits RAP Panel
- B.�Cost RAP Panel
- Appendix 8: Matrix of Changes Represented by New and Revised Requirements
- Appendix 9: Matrix of Applicable Baselines for IBC Scenarios
- Appendix 10: Regulatory Proposals
- Figure 1: Diagram of Conditions Corresponding to Compliance of Elements
- Figure 2: Economic Framework for Estimating Benefits from Changes in Generalized Access Cost
- Figure 3: Total Number of Elements: Top Five Most Frequently Occurring and All Others
- Figure 4: Top 5 Average Barrier Removal Construction Costs Per Unit
- Figure 5: Example of Cost RAP Question
- Figure 6: Example of Benefits RAP Question
- Figure 7: Total NPV - Baseline Scenario: SH/RA50/B1991; 3% and 7% Discount Rates
- Figure 8: Distribution of Benefits between Users and Facilities (Cost Savings)
- Figure 9: Distribution of Costs between Type of Cost, Type of Construction, Users
- Figure 10: NPV for Selected Requirements
- Figure 11: NPV for Selected Facilities
- Figure 12: NPV for Selected Facilities with Public and Private
- Figure 13: NPV Comparison -- Safe Harbor Policy: SH/RA50/ B1991 , NSH/RA50/ B1991
- Figure 14: NPV Comparison -- Alternate Readily Achievable %: SH/ RA0, RA50, RA100/ B1991
- Figure 15: NPV Comparison -- Alternate Baselines: SH/RA100/ B1991, B2000, B2003, B2006
- Figure 16: Distribution of Sensitivities for Requirement 37: Side Reach. NPV = -$970.6
- Figure 17: Distribution of Sensitivities for Requirement 32: Water closet clearance in single user toilet rooms -- in swinging doors. NPV = -928.1
- Figure 18: Distribution of Sensitivities for Requirement 26: Passenger Loading Zones (Medical / Long-Term Care). NPV = -489.0
- Figure 19: Distribution of Sensitivities for Requirement 23: Passenger Loading Zones. NPV = 1,835.3�
- Figure 20: Distribution of Sensitivities for Requirement 70: Accessible Route to Exercise Machines and Equipment. NPV = 1,100.4
- Figure 21: Distribution of Sensitivities for Requirement 45: Transient lodging Guest Room Vanities. NPV = 1,071.5
- Figure 22: Combining Probability Distributions
- Figure 23: Risk Analysis of Annual Capital Cost per Element, Illustration Only
List of Tables
- Table 1: List of Requirements
- Table 2: List of Facilities
- Table 3: Number of Establishments in 2007 by Facility Group
- Table 4: Requirements not included in Baseline Scenario
- Table 5: Total Number of Annual Visits per Facility Group by Adults
- Table 6: Total Net Present Value in Baseline Scenario at Expected Value (billions $)
- Table 7: Costs and Benefits per Requirement in Baseline Scenario
- Table 8: Total Costs and Benefits per Facility Group in Baseline Scenario
- Table 9: Net Present Value for Public and Private Facilities
- Table 10: Costs, Benefits and NPV Comparison using Primary (1991 Standards) Baseline and Requirement-Specific Alternate IBC Baseline -- Req. # 10 and 16
- Table 11: Costs, Benefits and NPV Comparison Using Primary (1991 Standards) Baseline and Requirement-Specific Alternate IBC/ANSI Baselines -- Req # 32 and 37
- Table 12: Impact on Results of Reduced to Access Time Premium
- Table 13: Impact on Results of Reduced to Use Time Premium
- Table 14: Impact on Results of Reduced Demand Elasticity At All Facilities
- Table 17: Number of Facilities and Total Sales for Small vs. Facilities of All Sizes, and Ratio of Average Sales per Facility, by Facility Group
- Table 18: Net Cost Comparison: Small vs. Facilities of All Sizes, by Facility Group
- Table 19: Annual Cost Comparison: Small vs. Facilities of All Sizes, by Facility Group
Acronyms and Abbreviations
- 1991 ADAAG -- ADA Accessibility Guidelines
- 2004 ADAAG -- ADA/ABA Accessibility Guidelines
- Access Board -- Architectural and Transportation Barriers Compliance Board
- ABRA -- Access Board Regulatory Assessment
- ADA -- Americans with Disabilities Act
- ADAAG -- Americans with Disabilities Act Accessibility Guidelines
- ALT - alterations
- ANPRM -- Advance Notice of Proposed Rulemaking
- BLS -- Bureau of Labor Statistics
- BR -- barrier removal
- CPI -- Consumer Price Index
- Department or DOJ -- Department of Justice
- EIA -- Energy Information Administration
- HUD -- Department of Housing and Urban Development
- IBC -- International Building Code
- NAICS -- North American Industry Classification System
- NC -- new construction
- NPRM -- Notice of Proposed Rulemaking
- NPV -- Net Present Value
- O&M -- operation and maintenance
- OMB -- Office of Management and Budget
- RA -- readily achievable
- RAP -- Risk Analysis Process
- SBA -- Small Business Association
- SH -- safe harbor
- UFAS -- Uniform Federal Accessibility Standards
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