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IMPLEMENTATION AND FINANCING PLAN When the AIP has more than $3.2 billion available in a FFY, additional discretionary funding may be available. Large and medium primary hub airports can receive 75-80 percent of eligible project costs and small primary, reliever, and general aviation airports can receive 90-95 percent of eligible costs. Eugene Airport is a small hub commercial service airport with Federal AIP project funding eligibility of 93.75 percent. This is an increase from 90 percent because the United States (U.S.) Government owns a significant portion of lands in Oregon. Sections 47109 (b) and (c) of Title 49 United States Code provides for an increase in federal share in those states in which the U.S. Government owns more than 5 percent of the total lands within a state in order to compensate for the loss of revenue accruing to the state. FAA Order 5100.38D, Airport Improvement Program Handbook details the grant process, project eligibility, allowable costs, and other information relevant to grant acceptance. Under the AIP, Eugene Airport has three potential avenues for receiving federal AIP grant funding: » Passenger Entitlement 3 » Discretionary » Cargo Entitlement Figure 5-3 shows the historic AIP grant awards for Eugene Airport from 2004 to 2017. Years with large grant awards correlate with discretionary funding allocations for large projects such as Grants 33 and 35 which in large part funded the construction of Runway 16L-34R in 2004 and 2005. Over the past 13 years, Eugene Airport has received an average of about $5 million annually in combined entitlement and discretionary funds. Based on this history, it is likely to expect similar federal funding contributions in future years. FIGURE 5-3 EUGENE AIRPORT HISTORIC AIP GRANT AWARDS (2004-2017) Source: FAA Grant Award Records, EUG Airport Records, RS&H Analysis, 2017 Notes: 2017 awards estimated based on potential entitlement collection data. 3 The Small Airport Fund is also available to Eugene Airport, however, this is not an actual set-aside fund. It is merely a calculation to ensure a required level of discretionary funding is used for small airports. 87.5% of passenger entitlement funds are required to be reduced from large and medium hub airports. This is used to calculate the fund and, of this, 1/7 is committed to small hub airports as discretionary funding. EUGENE AIRPORT MASTER PLAN 5-6