Draft EUG Master Plan Update, February 2010

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CHAPTER5 FINANCIAL FEASIBILITY ANALYSIS 3.1 Federal AIP Grants Federal grants for the FY 2008 – 2028 Eugene Airport capital improvement plan are anticipated to be made available through the FAA’s AIP program. The current AIP legislation provides both entitlement funds (based on annual enplaned passenger levels) and discretionary funds for eligible projects undertaken by an Airport sponsor. Projects that are eligible for FAA AIP funding were determined based on guidelines contained in FAA Order 5100.38A, Airport Improvement Handbook. As a general rule, only those Airport projects that are related to non-revenue producing facilities, such as airfield construction, public areas of a terminal, and land acquisition, are eligible for federal funding. Under most circumstances, projects that qualify for AIP funding are eligible for up to 95 percent of total project costs. Terminal development is eligible in non-revenue producing space for airports categorized as small hubs and non-hubs at 95 percent of eligible costs. Under the AIP program, each primary airport is apportioned no less than $650,000 per year; an airport’s annual entitlement funds under the current program are determined according to the following formula: $7.80 for each passenger boarding up to 50,000 passengers $5.20 for each additional passenger boarding up to 100,000 passengers $2.60 for each additional passenger boarding up to 500,000 passengers $0.65 for each additional passenger boarding up to 1,000,000 passengers $0.50 for each additional passenger boarding from 1,000,001 passengers and up Based on recent historical and projected annual enplanement levels at the Airport, estimates of the Table 5-2 Airport’s federal entitlements for the period FY 2008 through FY 2028 are presented in . The projected entitlement funds presented in this table for each year are based on total enplanements at the Airport from the calendar year two years prior (i.e., entitlements for FY 2008 are based on enplanements from FY 2006). As shown in Table 5-2, the Airport is projected to be eligible for a total of $65,369,084 in AIP entitlement Table 5-3 funds over the planning period. As shown in ,a total of $41 million of entitlement funding is to be used for the projects included in the CIP. Since the availability of AIP funding is expected to exceed the use of such aid, it is assumed that there will likely be adequate AIP entitlement funds to implement all anticipated projects presented in this CIP. The AIP program also allows for discretionary funding to be made available from the FAA to provide financial support for major capacity or safety-related projects. The CIP, as presented in Table 5-1, anticipates FAA discretionary funds totaling approximately $5,534,719 being made available for the Aircraft Rescue and Firefighting (ARFF) Facility, Runway 34L/16R Overlay and airfield lighting upgrades, and the Aircraft Deicing Facility. The likelihood of receiving the required level of discretionary funding is considered extremely high given the importance of these projects, in terms of improved safety and preservation of existing airfield infrastructure. In fact, the FAA has already programmed funding into its overall system for this work. 5-11 Eugene Airport Master Plan Update (February 2010)