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