1/9/2015 1

Aviation in Oregon

“SUPPORTING OUR

COMMUNITIES BY

PRESERVING AND

ENHANCING AVIATION”

1/9/2015 2

Oregon’s System of Airports

Oregon Aviation System Plan 2007 Updated Chapter 8 - Econ Impact in 2012

Complete new plan 2015-2016 funded by

FAA

97 Public Use GA Airports in Oregon

• 28 are State Sponsored

• 55 accept Federal Funds

• Located in all regions of the state

• 6 Air Carrier Airports (FAR 139)

390+ Private Use Airports

4000+ Aircraft actively registered

4,500 Active pilots

Aurora State Airport’s new Air Traffic Control Tower.

The O

regon Department of Avi

ation serves the sta

te of Oregon through

its three-fold focus

of advocating for the

growth, improvement an

d safe operation of av

iation in Oregon. In

addition, ODA is com

mitted to the develop

ment and realization

of its strategic plan

by addressing statew

ide aviation issues,

participating in mul

ti-model coordination,

carefully coordinati

ng and managing avia

tion-related legislat

ion, and providing as

sistance to aviation

constituents, airpor

t owners/sponsors and

aviation system user

s throughout Oregon.

1/9/2015 3

Why Public-use Airports?

Transportation Mode

Business/Economic Development (Industry, air freight, corporate, etc.)

Statewide access (commercial air service/transportation)

Tourism –motels, restaurants, local businesses benefit

Agriculture – Spraying, Christmas Trees, etc

Government agencies (USGS, USDA, ODFW, etc.)

Emergency Services

• Fire suppression (U.S Forest Service, BLM, ODF)

• Medical Evacuation (Medevac and Air Ambulance)

• Forced/precautionary landing strip

• Search & Rescue base

• Staging area for Disaster Relief (OEM, FEMA)

• Law Enforcement (OSP, DHS, FBI, etc.)

Recreation

1/9/2015 4

Public Use Airport ownership

1/9/2015 5

Map of 57 NPIAS Airports

1/9/2015 6

Sources of Airport Funding?

• FAA funding at 90% of project cost (reimbursed) – 10% from airport sponsor

– Only Airport Infrastructure – no Operations and Maintenance

– 39 grant assurances

– 55 federally funded airports in Oregon

• Types of FAA funding – Primary (commercial air service)

• Certified/Part 139)

• $1 million/year

• Passenger Facility Charges

– Non-Primary Entitlement • $150K/year

– State Apportionment (varies by year/ usually $3-4m per year/statewide

– Discretionary (varies by year/usually $5-15m/year/Major projects

• CONNECTOREGON – – Pays 10% grant match and more

– Federally funded public airports depend on CO

• Revenue of cities/counties/ports – leases, rentals, general funds

1/9/2015 7

FAA Funding Since 2009

2009 2010 2011 2012 2013

Total FAA Grant Funding

since 2009

*Primary

(Commercial) $ 57,746,262 $ 31,961,189 $ 40,326,717 $ 34,646,167 $ 21,592,843 $ 184, 946,178

Reliever

(Hillsboro &

Troutdale) $ 2,350,000 $ 9,650,000 $ 511,000 $ 7,050,000 $ 0 $ 19,561,000

Essential Air

Service

(Pendleton) $ 1,115,296 $ 560,862 $ 690,893 $ 933,804 $ 125,000 $ 3,425,855

General

Aviation $ 14,791,845 $ 13,476,997 $ 20,755,753 $ 21,561,781 $ 15,660,830 $87,392,206

ODA State

Grants (PMP &

System

Planning) $ 555,304 $ 171,250 $ 261,696 $ 299,461 $ 820,202 $ 2,107,913

Total Grant $ 76,558,707 $ 55,820,298 $ 62,546,059 $ 64,309,213 $ 38,198,875 $ 297,433,152

*Primary includes PDX, Medford, North Bend, Klamath Falls, Redmond, Eugene

1/9/2015 8

CONNECTOREGON Aviation Funding Since 2005

Total CONNECTOREGON Yearly amounts

CONNECTOREGON I Medford $4,766,400 Multimodal *$22,808,910

CONNECTOREGON II $26,905,916

CONNECTOREGON III $25,192,855

CO III RURAL AIRPORTS $3,898,421

CONNECTOREGON IV $10,152,170

Total Aviation Funds $88,958,272

Funding Breakdown

By Mode Analysis Aviation with over 61% of all

ConnectOregon leveraged $

1/9/2015 10

• Aviation is Big Business in Oregon

• $297 million in FAA infrastructure grants in Oregon 2009-2011

• Over $88 million in CONNECTOREGON I - IV

• $22 Billion dollar impact to Oregon economy

• 76,000 jobs

• Governor’s priorities; Education, Budget, Health Care, Jobs and Innovation

• Airports key to Jobs and Innovation • Aviation is a natural Industry Cluster • Over 400 Aviation Businesses in Oregon

• Aviation Industry Cluster • Annual Summits • First on June 21, 2012 in McMinnville (Evergreen Museum) • Second Sep 19th 2013 in McMinnville (Evergreen Museum)

• Focus on Access to Capital • Access to Trained Work Force

• October 9th at Hood River Airport and museum • Focused on business development/UAS

Economic Impact of Oregon Aviation

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Oregon Dept of Aviation Mission

ODA serves the state of Oregon through a three-fold focus of

advocating for the safe operation, economic growth, infrastructure

improvement of aviation and airports in Oregon.

Committed to the development and realization of its strategic plan by:

• Providing Service to aviation constituents, airport

owners/sponsors and aviation system users throughout Oregon;

• Addressing statewide aviation issues;

• Coordinating and providing expertise on aviation legislation

• Maintaining 28 State-owned/operated Airports

1/9/2015 12

ODA Duties & Roles

• Promote Aviation Business and Jobs (ORS 836.055)

• Airport Operations and Maintenance/28 Airports (ORS 836.025)

• Statutory Tall Structure Analysis Program (statewide)– (ORS 836-530)

• Manage Pavement Maintenance Program/66 airports (ORS 836.072)

• Statewide Capital Improvements Program - Partner w/FAA, 55 Airports (ORS 836.070/040)

• License 97 Public Use Airports annually (ORS 836.105)

• Register 360 Private Airports annually (ORS 836.610)

• Register Oregon Pilots & Aircraft (over 4,000 of each) (ORS 837.025/ORS 837.040)

• Aviation Safety Program (ORS 836.085)

• Conducts FAA Mandated Airport Inspections (5010)

• Assistance to Airport Sponsors (Land use, FAA Regs, tech expertise) (ORS 836.010)

• ODA generates revenue to conduct operations

• Aviation and Jet Fuel tax

• Leases/access fees

• Fuel Flowage/sales

• Pilot/Aircraft registration

• Inspections

No General/Lottery Fund dollars

1/9/2015 13

Map of 28 State-owned Airports

1/9/2015 14

Pavement Maintenance Program (PMP)

• Utilizes approx $.9M annually in fuel tax revenues

• 45% of fuel tax revenue

• PMP Fuel Tax established in 1999

• 2012, Eastern half of state received pavement maintenance

• 2013, Northwest Oregon

• 2014 - Southwest Oregon

• Ten year Pavement Maintenance Study in 2012

• PMP extends life of pavement by 20+ years.

1/9/2015 15

Aviation in Oregon Challenges

• Commercial Air Service in Oregon

6 commercial air service airports in 2015

Regional airlines cutting airports due to: Pilot requirements 1500 hours and increased crew rest requirements

Transition to larger regional aircraft (Minimum 70 passengers

Phase out of Essential Air Service subsidy

Must look at new model of Air service

• 55 Federally Funded Airports in Oregon ($ 297Million since 2009) Airports reducing scope of projects due to challenge of meeting grant match

Dependent on CONNECTOREGON

Entitlement Transfer Program

Statewide Capital Improvement Program (SCIP)

• Land Use – Airports outside of Urban Growth Boundary for a reason: noise and safety Limits ability to get Sewer and water

Which limits Fire suppression

Which limits expansion and development

Obstructions and encroachment

• Environmental issues Streaked Horned Lark and other critters – Add environmental costs and mitigation

Wetlands on airports restrict development

• Funding for infrastructure/capitol improvements – FAA only funds airside Capital Improvement projects

HISTORICAL REQUIREMENTS

Year Oregon FAA Grants 5% match

2008

$ 19,379,868

$968,994

2009

$ 18,812,445

$940,622

2010

$ 24,481,956

$1,224,098

2011

$ 22,255,967

$1,112,798

FAA Reauthorization

Act of 2012 raised

grant match to 10% 10% Match

2012 $22,795,046 $2,279,504

2013 $16,606,032 $1,660,603

2014-2019 FAA Airport Projects Statewide Capital Improvement Program (SCIP)

Year Total Project 10% Match PMP* TOTAL Local Match

2014 $12,096,110 $1,209,611 $0 $1,209,611

2015 $30,866,635 $3,086,664 $40,000 $3,126,664

2016 $38,821,055 $3,882,106 $20,000 $3,902,106

2017 $31,615,712 $3,161,571 $0 $3,161,571

2018 $28,592,609 $2,859,261 $40,000 $2,899,261

2019 Total Project 10% Match PMP* TOTAL Local Match $$

*does not include Primary airports

PMP* Boardman Not NPE eligible (must pay cash)

Seaside Not NPE eligible (must pay cash)

Wasco Not NPE eligible (must pay cash)