Prepared By:
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


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

List of Figures

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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last updated January 4, 2011