Sec. 5. (a) The department shall adopt rules under IC 4-22-2 to establish a program to foster airport development in Indiana with special emphasis on improvement of airports as an economic development tool. The program must include the following components:
(1) State grants to airports from the grant fund to match federal Aviation Trust Fund grants.
(2) State grants to airports from the grant fund for airport development projects for which federal grants are not available.
(3) Loans to airports from the loan fund for airport development projects.
(b) The rules must establish the following for both grants and loans:
(1) Standards of eligibility.
(2) The maximum amount of money for which any one (1) airport or airport development project is eligible.
(3) Application procedures.
(4) The local matching funds that are required.
(5) In determining the amount of the match for a state grant for which federal grants are not available as described in subsection (a)(2), the department shall:
(A) consider the airport classification and the type of project; and
(B) require matching funds of at least twenty-five percent (25%).
(6) Other provisions to administer the grant and loan programs.