Huawei USA Problems related to AAA-based key management for facilitating optimized secure handovers and re-authentications have been described in several problem statements ([I-D.nakhjiri-aaa-hokey-ps], [I-D.ohba-hokey-3party-keydist-ps] and [I-D.ietf-hokey-reauth-ps]). This document provides description of an EAP initiated key hierarchy as part of the solution for those problems. Additionally a modified version of the 3-party key distribution orocess ([I-D.ohba-hokey-3party-keydist-ps]) is proposed to provide a binding between the generated/distributed keys and the parties using the keys. A new EAP method called EAP handover and re-authentication (EAP_HR) is also described to significantly reduce handover keying and re-authentication latency. AAA attributes and EAP type data extensions are also covered.