Submission to the Senate of Canada Standing Committee on Transport and Communications Regarding The Study on the Impacts of Climate Change on Critical Infrastructure in the Transportation and Communications Sectors and the Consequential Impacts on Their Interdependencies Submitted by: The Calgary Airport Authority March 12, 2024

P a g e | 2 INTRODUCTION The Calgary Airport Authority (The Authority) is a critical economic generator for Calgary, Alberta, and Canada as a whole, helping to connect guests, goods, and cargo. YYC Calgary International Airport (YYC) serves as a gateway to Western Canada for both international and domestic travellers and plays a crucial role as a catalyst for Canada’s economy. In the last economic impact study conducted in 2019 , The Calgary Airport Authority contributed more than $8 billion annually to Alberta’s GDP and employed, directly and indirectly, approximately 50,000 Albertans.

A new economic impact study is in-development and results can be shared with the committee at the time of publishing. As part of the Senate’s Transport & Communications Committee’s study on the impacts of climate change on critical infrastructure in the transportation and communications sectors and the consequential impacts on their interdependencies, we wish to provide context on what our airport is doing to address these factors. To set the premise for our points of view, it must be understood by government that climate resilient infrastructure requires considerable funding and time to plan and construct.

To accomplish this, we as an airport authority must generate our own funds t o invest and/or seek available investments from government. We also understand that the topic of Air Passenger Protection Regulations (and air passenger rights, more generally) have become a topic considered in this study.

Given that our partners at WestJet, Air Canada and Transport Canada were asked about Air Passenger Protection Regulations before the committee on February 15, 2023, we wish to offer our views on this topic from the airport perspective as we are an integral part of the passenger travel experience, and we agree that improvements for the travel experience can be made. In Appendix A of this submission, we have included an overview of The Calgary Airport Authority’s Sustainability Strategy that is guiding our efforts to reduce our impact on the environment and improve our infrastructure.

Appendix B contains a description of our West Runway Rehabilitation project, one of the largest ever projects at YYC Calgary International Airport that has been designed to meet sustainability targets and create a reliable runway for decades to come. Our mandate is to run safe, secure, and efficient airports and promote economic and community development, and this includes addressing the impacts of climate change on our infrastructure and guest exp erience.

The recommendations below detail how we believe the federal government can assist airports in being more climate resilient, improve infrastructure and economic development, and ensure the best guest experiences possible.

P a g e | 3 THE CALGARY AIRPORT AUTHORITY RECOMMENDS: Recommendation 1: That the Government of Canada immediately accept the recommendations of the supply chain task force to waive 50% of airport rent to be invested into infrastructure needs, and over the longer term, the government consults with The Authority and other NAS airports in Canada on redesigning the existing calculation model for ground lease transfer payments.

Recommendation 2: That the Government of Canada provide financial supports to airports to enable investments in low-carbon, climate -resilient infrastructure upgrades to achieve climate resiliency in Canada’s air sector. Recommendation 3: That the Government of Canada recognize the fragile recovery state of Canada’s travel industry and not increase the cost burden for airports and our partners when it comes to Air Passenger Protection Regulations (APPR).

P a g e | 4 RECOMMENDATION 1: That the Government of Canada immediately accept the recommendations of the supply chain task force to waive 50% of airport rent to be invested into infrastructure needs, and over the longer term, the government consults with The Authority and other NAS airports in Canada on redesigning the existing calculation model for ground lease transfer payments. The Authority, and other Canadian National Airports System airports, pay significant amounts to the federal government annually in the form of ground lease rents.

This has been the case since 1992 when the Government of Canada opted to commercialize airports, by assigning them to not-for-profit corporations created specifically to oversee the operations and further development of airport infrastructure. For many airports these agreements are bound by long term (70+ year) leases, where the Government of Canada remains the owner of the airport and property, and at the end of the lease, regains ownership without compensation or debt. Airports are responsible for airport infrastructure improvements, primarily funded by self - generated revenues and debt.

Unfortunately, there is less of an ability for airports to fund these improvements that would factor in climate resiliency when significant sums are paid to the federal government each year. The Calgary Airport Authority has paid approximately $800 million of rent under the ground lease with the Government of Canada since 1992, including payment of $50.6 million in 2023, representing 10.2% of annual revenues.

In 2020, the ground lease payment was waived in response to the unpredictable and drastic decline in passenger volume caused by the pandemic, and in 2021 the ground lease payment was deferred to a later date. While these measures were welcome, the Government’s approach to lease payments was insufficient to offset the catastrophic decline in revenue since the onset of the COVID -19 pandemic. It also shed light on the shortcomings of the overall design of the ground lease rent payments , and its calculation model.

The Final Report of the National Supply Chain Task Force 2022 recommended that the government ‘Waive 50% of airport rent payments on a short ‑term basis to enable airport authorities to invest in capital improvements that enhance transportation supply chain reliability’1. We ask that the federal government immediately accept this recommendation, and that this process be expedited and not subjected to burdensome red tape. In the medium term, we ask that the government consult with The Authority and other NAS airports in Canada on redesigning the existing calculation model for ground lease transfer payments .

The Authority recommends a modernized calculation model that would allow Canada’s largest airports to reinvest ground lease payments towards environmentally sustainable core infrastructure projects in order to achieve Net Zero as soon as possible. This would likely lead to a freeze or decrease in airport improvement fees, benefiting both airl ines and travellers and increasing Canada’s competitiveness. Therefore, the benefits of such a change extend beyond climate resiliency but this would be a major assistance to these efforts. 1 Recommendation 8, Final Report of the National Supply Chain Task Force 2022

P a g e | 5 RECOMMENDATION 2: That the Government of Canada provide financial supports to airports to enable investments in low -carbon, climate -resilient infrastructure upgrades to achieve climate resiliency in Canada’s air sector. Investments in low -carbon and climate -resilient infr astructure across Canada’s airport network will enable airport authorities and our partners to use available guidance, such as that from Infrastructure Canada and at ClimateData.ca, to retrofit and construct systems that enable resilient operations.

The ultimate goal for airports is to provide a reliable and efficient operating environment that minimizes disruptions to critical aviation services provided to our airline partners, passengers, and others who rely on YYC Calgary International Airport to conduct their business. Between 2018 and March 2022, the Government of Canada made funding available under the Transportation Asset Risk Assessment (TARA) Program that enabled Canadian airports and other transportation sector asset operators to undertake climate change risk assessment work.

The Calgary Airport Authority was a beneficiary under this program and identified numerous risks. Following this, we identified two key pathways in our Sustainability Strategy for addressing our climate risks: 1. Incorporate future climate projections and uncertainty into the design of new infrastructure and ensure existing assets are resilient. Additionally, YYC will develop climate resilience standards for our campuses that will apply to tenants and users; and 2.

Work with airport partners, government and other groups to understand and develop plans to address the cascading and interdependent nature of key climate risks (e.g., infectious diseases, land and ecosystem change, shifts in wildlife migration and r anges, wildfire smoke and population displacement). While Canadian airports are keen to address risks identified in our climate change risk assessments, there is little funding available to support airport authorities in making the often-additional investment needed to incorporate climate change considerati ons deeply in the design and construction of infrastructure.

Airports, such as Calgary, also recognize the importance of building decarbonisation criteria into airport operations and infrastructure projects. As such, support directed specifically to low-carbon climate resiliency projects would be valuable. These sorts of projects simultaneously support climate adaptation, emission reduction and supply chain resiliency. Examples include microgrids at airports and supporting local utilities with the development of resilient, low-carbon electricity grids.

It is important that the Government of Canada recognize the importance of following the TARA Program funding with supports that allow for assessment results and recommendations to come to fruition.

P a g e | 6 RECOMMENDATION 3: That the Government of Canada recognize the fragile recovery state of Canada’s travel industry and not increase the cost burden for airports and our partners when it comes to Air Passenger Protection Regulations. As previously me ntioned, because the topic of passenger rights has been examined by the committee over the course of this study, we wish to share our view as an airport and what changes to passenger rights regulations could impact.

The Canadian Transportation Agency (CTA) has been in the process of revising Air Passenger Protection Regulations (APPR) since early 2023 and released a set of proposed changes for feedback in July. The Authority provided a response to CTA’s consultation process, and new regulations are expecte d in 2024. Airports, like our airline partners, remain wary of the impacts of higher cost burdens that can come from APPR. We also appreciate that the CTA revisions of APPR will help “clarify, simplify and strengthen the Canadian air passenger protection regime”.

We wish to see the new regulations reflect operational realities of the air travel system that also result in meaningful improvements for air passengers. We echo many of the sentiments expressed in NAV CANADA’s written submission to this committee, noting that many factors outside the control of airlines, airports, NAV CANADA, and other organizations can impact travel. At the heart of this issue is the need to prioritize the safety of passengers and crew, and then to address the passenger experience and competitiveness of the Canadian sector.

The following is The Authority’s feedback to CTA on August 10, 2023, in response to the released draft regulations. Competitiveness The introduction of new regulations in Canada ’s aviation sector presents challenges for air carriers, as they must incorporate increased risks and costs into ticket prices without compromising competitiveness or connectivity. While striving to maintain high service standards and protect vulnerable travelers, it ’s crucial for Canada’s Air Passenger Protection Regulations (APPR) to strike a delicate balance.

However, proposed changes pose a threat to the competitiveness of Canadian airports, potentially driving up costs for passengers and airlines, and diverting traffic to U.S. hubs, especially given the absence of s imilar compensation requirements in the United States. The disparity between compensation levels outlined in Canada's APPR and those in other regions, such as Europe and the U.S., particularly for short-haul and domestic flights, further complicates matters.

With compensation potentially reaching up to $1,000 CAD per passenger for certain disruptions, the added costs could disproportionately affect regional markets heavily reliant on shorter flights. Consequently, these changes could disadvantage Canadian carriers against U.S. competitors and deter foreign airlines from investing in routes to Canadian airports, ultimately impacting the country’s aviation sector and economy.

P a g e | 7 Knock On Effects Proposed changes to Canadian air travel regulations, particularly the Air Passenger Protection Regulations (APPR), are raising concerns regarding their alignment with operational realities. While the current framework acknowledges and exempts subsequent flights affected by delays beyond airlines ’ control, the proposed amendments limit this exemption to a single subsequent flight, disregarding the complex nature of air travel. Airlines often require up to 48 hours or more to mitigate the knock -on effects of delays, especially during significant weather events.

This limitation fails to recognize the interconnectedness of flights and could impose undue financial burdens on airlines, forcing them to compensate for circumstances beyond their control. Such measures would inevitably increase air travel costs in Canada and compromise the competitiveness of both airlines and airports. Mechanical Safety All air industry partners are committed to upholding Canada’s record as one of the safest air travel systems in the world. This record is a competitive advantage. As such, decisions made by any industry partner for safety reasons must never be penalized.

The proposed regulation suggests imposing significant financial compensation in certain circumstances where an unexpected mechanical issue arises. This penalizes an airline for upholding their obligations, once again representing a disincentive for operatin g to Canada and a financial burden added to the system impacting competitiveness. Safety should always be prioritized by airlines, and these changes disincentivize airlines and penalize them for valuing safety over the risk of potential delays.

The new A PPR list of exceptional circumstances (exemptions from compensation) must include exemptions for flight safety and specifically for unplanned mechanical delays where an aircraft is unfit to fly in accordance with applicable regulations and maintenance protocols. CONCLUSION In conclusion, The Calgary Airport Authority urges this Senate Committee to advocate for the three key recommendations presented in this document to the federal government.

These recommendations, ranging from waiving 50% of airport re nt and redesigning ground lease transfer payment models , to providing financial support for climate -resilient infrastructure and prevent rising costs for both airports and passengers due to APPR, collectively represent a crucial step towards building a more sustainable and resilient future for Canada’s airports. As a willing partner in this endeavor, The Calgary Airport Authority reaffirms its commitment to collaborating with the government and other stakeholders to implement innovative climate- resilient infrastructure concepts .

By addressing economic challenges, fostering climate resilience, and supportin g environmentally responsible initiatives, The Authority seeks to contribute to the development of a robust and forward-looking aviation sector in Canada. The success of these recommendations is pivotal in ensuring the continued economic growth and sustainability of our airports, benefiting not only the aviation industry but also the communities they serve.

P a g e | 8 APPENDIX A: OVERVIEW ON CLIMATE CHANGE ADAPATAION AND SUSTAINABILITY AT THE AUTHORITY Sustainability Strategy 2022-2026 The Calgary Airport Authority has made sustainability a key priority. As an airport, we understand we must work together with our partners, community and internally to achieve this mission. With YYC being a central connector for many interchanging parts, we understand it is crucial to lead and guide our airport com munity toward a more equitable and environmentally sound future. The concept of sustainability is well embedded in YYC’s mandate, North Star, and long-term strategic plan.

Our efforts around environmental, social and governance (ESG) performance are monitored closely by our senior leaders and board of directors. Many of our air service partners, commercial partners, government partners, community and airport guests are on the same journey to contribute positively to our community and environment. It is our intent to support them. The Authority has identified several focus areas that we feel align with broader goals including the UN S ustainable Development Goals and other environmental, social and governance disclosures and reporting frameworks.

The Calgary Airport Authority’s entire strategy can be viewed at https://www.yycsustainability.com/. Our 2022-2026 focus areas are: CLIMATE ACTION GOAL CONTEXT TACTICS Reducing Greenhouse Gas Emissions (GHG) Between 2018 to 2021, approximately 81% of Scope 1 and 2 emissions were from electricity use, followed by 17% from natural gas used for thermal applications. The Domestic Terminal Building, built in 1977, is responsible for 44% of the YYC Calgary International Airport’s emissions. • Reduce GHG emissions 30% below 2018 levels by 2026 and achieve net-zero scope 1 & 2 emissions by 2050.

Climate Resilience The Authority undertook a climate change risk assessment in 2021 to identify operational and infrastructure impacts for both YYC Calgary International Airport and YBW Springbank Airport. • Incorporate future climate projections and uncertainty into the design of new infrastructure and ensure existing assets are resilient. Additionally, YYC will develop climate resilience standards for our campuses. • Work with airport partners, government, and other groups to understand the cascading and

P a g e | 9 interdependent nature of risks and manage them accordingly.

HEALTHY PEOPLE & COMMUNITIES GOAL CONTEXT TACTICS Minimize Community Impacts from Aviation While overseeing flight routes and air traffic control is managed by NAV CANADA, YYC works with various community organizations and government agencies to understand aviation noise concerns and implement a collaborative model to manage noise. • Working actively with stakeholders to ensure Noise Abatement Procedures (NAP) are being adhered to and reviewing and updating policies. • Continuing to use YYC’s network of Noise Monitoring Terminals (NMT) dispersed throughout the Calgary region, including a mobile NMT for communities impacted by changes in air traffic programs. • Restructuring our noise concern response process by triaging concerns through the 24-hour Integrated Operations Centre (IOC) to improve the service level to community members.

Community Health and Wellbeing The Authority was a founding member of the Canadian Council for Sustainable Aviation Fuels, has Chaired the Calgary Climate Panel, and is a founding partner of the Calgary Region Hydrogen Hub, among other community investments. We will continue to work with these organizations.

MATERIALS & RESOURCE MANAGEMENT GOAL CONTEXT TACTICS Financial Investments A sustainability framework has been built into The Authority’s project approval process for capital projects and major operational initiatives. • Developing policies, standards and procedures that will drive sustainable procurement and take a circular economy approach to supply chain decisions. • Using sustainability frameworks like Envision and Leadership in Energy and Environmental Design (LEED) into project planning processes. Safe Material Handling A key element of pollution prevention and occupations health and safety.

Large quantities of hazardous • Development of site-wide hazardous materials management standards.

P a g e | 10 materials within YYC’s control include Aqueous Film Forming Foam, spill cleanup materials, airfield anti-icing and de-icing chemicals, airfield paint, and petroleum products. • Substitution of hazardous materials with non-hazardous products. • Modernization of hazardous materials systems.

Waste Reduction and Diversion The Authority has committed to achieving zero waste by 2050, and a 58% reduction from 2018 levels by 2026 of waste going to landfills. • Implemented a ban on single-use plastics as of January 1, 2023. • Improve signage and bin placement for waste sorting, improve data tracking and analysis on waste streams, and conduct regular waste audits.

PROTECTING OUR WATER GOAL CONTEXT TACTICS Reduce Water Use By 2050, The Authority will reduce potable water use by 30% compared to 2018, and 10% by 2026. • The airport replaced all faucet aerators and dish pit sprayers across the terminal which would reduce water demand up to 10%, in addition to other water conservation programs. • Evaluating recommissioning our stormwater capture cisterns in the International Terminal Building, and potentially recapture water in stormwater ponds.

Promote Healthy Water Quality We must ensure healthy water quality for bodies within our airports’ watersheds – Nose Creek, the Bow River, and groundwater systems. We are a member of the Nose Creek Watershed Partnership which works to protect and improve this watershed. • Enhancing stormwater management assets to improve water quality, flood management and incorporate climate change. • A newly centralized de-icing operation allows us to increase recycled de-icing fluid. • Continued improvement of monitoring, data analysis and tracking or water quality and flows.

LAND & ECOSYSTEM MANAGEMENT GOAL CONTEXT TACTICS Improving Biodiversity and We are required to have a wildlife management plan that sets out how • Undertaking an aggressive program to inventory the biophysical elements at YYC and YBW and

P a g e | 11 Preventing Aircraft- Wildlife Interactions collisions between aircraft and wildlife can be minimized.

We are trying to balance aviation safety with improving biodiversity on our total 6,500 acres of land (YYC and Springbank Airport (YBW) combined). develop and robust framework for tracking changes in species and biodiversity over time. • Continue to implement aerodrome wildlife management plans and procedures to prevent aircraft and animal collisions. • Identify opportunities to improve local biodiversity through strategic land restoration projects, plantings, vegetation management, and other initiatives.

Promote Sustainable Land Development Practices and Healthy Soil Systems Developing and redeveloping our lands in ways that prioritize nature-based solutions that support natural biodiversity and use natural sources of energy. • Increasing the extent and quality of nature-based solutions in new land developments. • Ongoing monitoring, assessment, and remediation of contaminated sites due to identified contaminated sites over both YYC and YBWs histories.

APPENDIX B: WEST RUNWAY REHABILITATION In August 2021, The Authority announced the launch of one of our largest-ever infrastructure projects, the rehabilitation of the YYC Calgary International Airport west runway. After years of design and planning, the project is set to break ground in spring 2024 and estimated to be complete in early 2026. The rehabilitation is partially funded with $57.5 million from the federal government’s Airport Critical Infrastructure program and will create up to 300 construction jobs to remake a runway that has been in service for the last 80 years.

This will be the first airport project in Canada to be certified under the Envison ® Framework for sustainable infrastructure. Envision® is a comprehensive framework for incorporating sustainability into the design, construction and operation of infrastructure systems and projects. Taking this into consideration, the runway environment w ill be thoroughly modernized, including soil remediation, the installation of LED electrical fixtures, and updated storm infrastructure.

We are especially proud of our approach to sustainability for this project, where concrete in the existing runway will be remixed and used as part of the new runway and other infrastructure projects at YYC. The goal is for the rehabilitated W est Runway to exist for decades to come and be resilient to Calgary’s climate patterns and modern aircraft using it than when it was first built. Visit the full project webpage here.