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IMPLEMENTATION AND FINANCING PLAN 5.4.1.1 Passenger Entitlement Funding One of the most common types of federal funding for airports is passenger entitlement grants funded through the AIP which is administered by the FAA. Entitlement funds are available to Eugene Airport as it serves commercial enplaning passengers. The annual AIP funding that is available is determined by the number of passengers enplaned at the airport in a given year. Under the AIP program, Eugene Airport is . Therefore its minimum annual entitlement can vary between $650,000 and $1,000,000 depending upon the amount of money in the Aviation Trust Fund for each FFY. If Congress appropriates AIP funds above $3.2 billion, the latter applies and, if less, the former. There are reduction formulas for large- and medium-hub airports collecting 4 Passenger Facility Charges (PFCs), but these do not apply to Eugene Airport as it is a small-hub airport. AIP Entitlement funds for Eugene Airport cover 93.75 percent of total eligible project costs and require a 6.25 percent local match. Table 5-2 shows the amount of money an airport receives at incremental activity levels for each enplaned passenger for two AIP funding scenarios. TABLE 5-2 PASSENGER ENPLANEMENT ENTITLEMENT FUNDS CALCULATIONS AIP Fund Calculation if less AIP Fund Calculation if more Passenger than $3.2B Availablethan $3.2B Available Enplanements ($ per passenger)($ per passenger) First 50,000$7.80$15.60 Next 50,000$5.20$10.40 Next 400,000$2.60$5.20 Next 500,000$0.65$1.30 $0.50$1.00 Over 1,000,000 Source: FAA Order 5100.38D, Airport Improvement Program Handbook, Table 4-1 (September 30, 2014) 5.4.1.2 Cargo Service Entitlement Grants While originally designed to provide a source of reliable funding for commercial service airports providing passenger service, changes to the AIP have also resulted in entitlement funding set aside for cargo service airports. Certain airports are designated by the FAA as cargo service airports. According to FAA Order 5100.38D, Airport Improvement Program Handbook, a cargo service airport is any airport that, in addition to any other air transportation services that may be available, are served by aircraft providing air transportation of only cargo with a total annual landed weight of more than 100 million pounds. Landed weight includes the weight of aircraft transporting only cargo intrastate, interstate, and in foreign air transportation. An airport may be both a commercial passenger service and cargo service airport. At the federal level, cargo entitlement funding is available at a rate of 3.5 percent of total AIP available for grants, divided on a pro-.S. landed cargo weight. No more than 8 percent of the total cargo entitlement may be apportioned to any one airport. Eugene Airport currently handles 4 Refer to FAA Order 5100.38D, Airport Improvement Program Handbook, Table 4-1 (September 30, 2014), for additional details on AIP funds available to specific airports by category. EUGENE AIRPORT MASTER PLAN 5-7