DEPARTMENT OF JUSTICE: DISABILITY RIGHTS
SECTION OF THE CIVIL RIGHTS DIVISION
FINAL REGULATORY IMPACT ANALYSIS OF THE FINAL
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
July 23, 2010
TABLE OF CONTENTS
- 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
- 3.1.4 Other Management Transition Costs
- 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. Updates to the Regulatory Impact Analysis
- 6. Results and Discussion
- 6.1 Results Under Primary Baseline Scenario.
- 6.1.1 Total Net Present Value
- 6.1.2 Distribution of Costs and Benefits
- 6.1.3 Net Present Values by Requirement
- 6.1.4 Net Present Values by Facility
- 6.1.5 Net Present Value for Public versus Private Facilities
- 6.2 Results Under Additional Scenarios
- 6.2.1 Readily Achievable Scenarios.
- 6.2.2 International Building Code (IBC) Scenarios.
- 6.2.3 Safe Harbor and No Safe Harbor Scenarios
- 6.3 Relative Impact of Selected Assumptions
- 6.4 Changes in Facility Visits
- 6.5 Impacts Not Estimated in the Primary Analysis
- 6.5.1 Use Benefits Not Estimated in Primary Analysis Accruing to Persons With Disabilities
- 6.5.2 Use Benefits Not Estimated in Primary Analysis Accruing to Persons Without Disabilities
- 6.5.3 Non-Use Benefits Not Estimated in Primary Analysis
- 6.5.4 Other Benefits
- 6.6 Threshold Analysis
- 6.6.1 Value of Stigmatic Harm.
-
7. 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 and Alteration 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
- M. Transaction Costs
- N. Example of Cost Estimation
- 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. Requirements with Use Time Estimates
- R. 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: Matrix Of Select Requirements And IBC/ANSI Model Codes – Adoption By Jurisdiction
List of Figures
Figure 1: Diagram of Conditions Corresponding to Compliance of Elements
Figure 2: Framework for Accounting for All Benefits Resulting from Accessibility Improvements
Figure 3: Economic Framework for Estimating Benefits from Changes in Generalized Access Cost
Figure 4: Total Number of Elements: Top Five Most Frequently Occurring and All Others
Figure 5: Top 5 Average Barrier Removal Construction Costs Per Unit
Figure 6: Example of Cost RAP Question
Figure 7: Example of Benefits RAP Question
Figure 8: Total NPV – Primary Baseline Scenario: SH/RA50/B1991; 3% and 7% Discount Rates
Figure 10: Distribution of Benefits between Users and Facilities (Cost Savings)
Figure 11: Distribution of Costs between Type of Cost, Type of Construction, Users
Figure 12: NPV for Three Selected Requirements
Figure 13: NPV for Three Selected Facility Groups
Figure 14: NPV for Selected Public and Private Educational Facilities.
Figure 15: NPV Comparison – Alternate Readily Achievable Scenarios: RA0, RA50, RA100
Figure 16: NPV Comparison – Alternate Baselines: B1991, B2000, B2003, and B2006
Figure 17: Safe Harbor vs. No Safe Harbor
Figure 20: Distribution of Sensitivities for Requirement 10: Stairs (ALT/BR)
Figure 23: Distribution of Sensitivities for Requirement 23: Passenger Loading Zones
Figure 24: Framework for Accounting for All Benefits Resulting from Accessibility Improvements
Figure 25: Quantified and Non-quantified Benefits within the Accounting Framework
Figure 26: Combining Probability Distributions
Figure 27: Risk Analysis of Annual Capital Cost per Element, Illustration Only
List of Tables
Table 3: Number of Establishments in 2010 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 Primary Baseline Scenario at Expected Value (billions $)
Table 7: Costs and Benefits per Requirement in Primary Baseline Scenario
Table 8: Total Costs and Benefits per Facility Group in Primary Baseline Scenario
Table 9: Net Present Values for Public and Private Facilities
Table 11: Impact on Results of Reduced to Access Time Premium
Table 12: Impact on Results of Reduced to Use Time Premium
Table 13: Impact on Results of Reduced Demand Elasticity At All Facilities (millions)
Table 14: Impact on NPV of Increased Rate of Alterations
Table 16: Impact on NPV of Increased Estimates of Persons with Disabilities
Table 19: Threshold Premium for Select Requirements
Table 20: Additional Threshold Analyses
Table 23: Annual Cost Comparison: Small vs. Facilities of All Sizes, by Facility Group
Acronyms and Abbreviations
1991 ADAAG – ADA Accessibility Guidelines (published July 1991)
2004 ADAAG – ADA Accessibility Guidelines (published July 2004)
1991 Standards – Department of Justice regulations implementing the Americans With Disabilities Act (codified at 28 CFR pts. 35 & 36)
2010 Standards – Department of Justice regulations implementing the Americans With Disabilities Act (to be codified at 28 CFR pts. 35 & 36)
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
ANSI – American National Standards Institute
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