When PPP forwards an EAP identity response packet to AAA, AAA might be configured to return a tunnel response upon successful validation of the packet. You can use AAA domain maps, a AAA profile, or both to force such tunneling.
On an LAC, PPP forwards the PPP EAP authentication information to the LNS during the establishment of the L2TP session. This authentication information consists of the EAP type, the data appropriate to the type (such as a username) contained in the EAP identity response packet, and the identifier of the EAP identity response packet. If the LNS trusts the LAC, then the LNS uses this authentication information to resume the EAP negotiation where the LAC left off.
L2TP on an LAC forwards the PPP EAP authentication information in the Proxy Authen AVPs as described in L2TP Proxy Authenticate Extensions for EAP—draft-ietf-l2tpext-proxy-authen-ext-eap-01.txt (December 2006 expiration).