Official Statement Airport Commission City and County of San ...

H1N1 Influenza
The World Health Organization and the U.S. Department of Health and Human Services (through the
Secretary of the Department of Homeland Security), recently declared public health emergencies as the result of
outbreaks of a serious strain of H1N1 influenza or flu. The outbreaks occurred initially in Mexico and shortly
thereafter in the United States, and have spread worldwide. This strain apparently is the first to be communicable
from human-to-human, and thus poses a potential risk of an international influenza pandemic. This flu strain has
caused deaths to many whom were healthy young adults. Travel restrictions, as well as other public health
measures, may be imposed to limit the spread of this flu. These outbreaks may lead to a decrease in air traffic, at
least for a temporary period, which in turn could cause a decrease in passenger activity at the Airport and a
corresponding decline in Revenues. The Airport is unable to predict how serious this situation may become, what
effect it may have on air travel to and from San Francisco, and whether any such effects will be material. In spring
2003, there was a similar outbreak of a serious strain of bird flu in Asia and Canada called “Severe Acute
Respiratory Syndrome” or SARS. That, together with the outbreak of the war in Iraq and other factors at about the
same time, resulted in a temporary but significant decline in passenger activity at the Airport of approximately 14%
in the second quarter of Fiscal Year 2002-03, and approximately 7% for the year as a whole.
Climate Change Issues
Possible Sea-Level Rise
In March 2009, the California Climate Change Center released a draft paper, for informational purposes
only, which was funded by the California Energy Commission, the California Environmental Protection Agency, the
Metropolitan Transportation Commission, the California Department of Transportation and the California Ocean
Protection Council. The title of the paper is “The Impacts of Sea-Level Rise on the California Coast.” The paper
posits that increases in sea level will be a significant consequence of climate change over the next century. While
noting that impacts are highly site-specific and somewhat speculative, the paper indicates that the Airport is
vulnerable to flooding with a 1.4-meter sea level rise. The Airport is adjacent to the San Francisco Bay, which in
turn opens onto the Pacific Ocean. At high tide, most of the Airport is less than six feet above sea-level. The
Airport is presently considering potential mitigation measures, including diking and other structural protection, if
they became necessary. The Airport is unable to predict whether sea-level rise or other impacts of climate change
will occur, when they may occur, and if any such events occur, whether they will have a material adverse effect on
the business operations or financial condition of the Airport.
Possible Increased Regulations
Climate change concerns are leading to new laws and regulations at the Federal and state levels that could
have a material adverse effect on airlines operating at the Airport and could also affect ground operations at airports.
The U.S. Environmental Protection Agency (“EPA”) very recently has taken steps towards the regulation
of greenhouse gas (“GHG”) emissions under existing Federal law. Those steps may in turn lead to further regulation
of aircraft GHG emissions. On April 24, 2009, EPA published a proposed “endangerment and cause or contribute
finding” under the Clean Air Act. In the proposed finding, EPA declared that the weight of scientific evidence
“requires” a finding that it is very likely that the six identified GHGs – carbon dioxide, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride – cause global warming, and that global warming
endangers public health and welfare. The proposed rule also finds that GHGs are a pollutant and that GHG
emissions from motor vehicles cause or contribute to air pollution. If the proposed rule becomes final, EPA would
be required to regulate emissions of certain GHGs from motor vehicles. The Clean Air Act regulates aircraft
emissions under provisions that are parallel to the requirements for motor vehicle emissions. Accordingly, EPA
may elect or be forced by the courts to regulate aircraft emissions as a result of this endangerment finding.
Regulation by the EPA can be initiated by private parties or by governmental entities other than EPA. In
2007, several states, including California, petitioned EPA to regulate GHGs from aircraft. On July 30, 2008, EPA
issued an Advanced Notice of Proposed Rulemaking (“ANPR”) relating to GHG emissions and climate change.
Part of the ANPR requested comments on whether and how to regulate GHG emissions from aircraft. While EPA
has not yet taken any action to regulate GHG emissions from aircraft, the request for comments and proposed rule
on motor vehicles may eventually result in such regulation.
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