110 
pilot program for market-based pricing mechanisms for 
domestic flights at not more than fifteen airports under 
which an airport owner or operator may adopt, or the Ad-
ministrator of the Federal Aviation Administration may 
impose, a market-based mechanism for the airport in ac-
cordance with the procedures established by this section. 
‘‘(b) REGIONAL DELAY.—(1) The Secretary may ap-
prove the application of an airport owner or operator to 
participate in the program if the Secretary finds that: 
‘‘(A) the airport experiences demand exceeding 
existing capacity in the aggregate or during specific 
times or dates; 
‘‘(B) delays at the airport have a significant ad-
verse effect on the regional airspace; and 
‘‘(C) the market-based mechanism proposed by 
the airport owner or operator will not result in a dis-
incentive for the airport operator to add capacity 
where possible. 
‘‘(2) Once the airport’s participation in the program 
is approved, the airport owner or operator may implement 
a market-based mechanism, and, in the case of a conges-
tion fee or auction, establish the method of collecting such 
revenue. Such fees shall be reasonable and not unjustly 
discriminatory. 
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111 
‘‘(3) An airport owner or operator may establish or 
adjust a market-based mechanism under this program 
only after consultation with the Administrator, air carriers 
serving the airport, and operators of aircraft based at the 
airport. 
‘‘(4) If an auction or congestion fee implemented 
under this section produces annual revenue in excess of 
the annual administrative costs associated with the estab-
lishment and administration of the fee, the airport owner 
or operator shall deposit the excess revenue in an escrow 
account. Expenditures may be made from the escrow ac-
count on eligible airport-related projects, in accordance 
with section 40117 of this title, or on any other project 
that the Secretary finds is in the public interest. 
‘‘(c) DELAYS AFFECTING THE NATIONAL SYSTEM.— 
(1) If the Secretary finds that the capacity constraints at 
an airport cause significant delays beyond the region in 
which the airport is located and have negative effects on 
the National Airspace System, and the owner or operator 
of such airport has not already adopted a market-based 
mechanism under paragraph (b), then the Secretary may 
implement, through rulemaking, a market-based mecha-
nism at the airport under the program to address these 
effects on the system. If market-based mechanisms are im-
plemented, the Administrator of the Federal Aviation Ad-
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112 
ministration shall establish the method of collecting such 
fees. Such fees shall be reasonable and not unjustly dis-
criminatory. 
‘‘(2) The Administrator may establish or adjust a 
market-based mechanism under this program only after 
consultation with the airport owner or operator, air car-
riers serving the airport, and operators of aircraft based 
at the airport. 
‘‘(3) If market-based mechanisms implemented by 
the Administrator under this section produce annual rev-
enue in excess of the annual administrative costs associ-
ated with the establishment and administration of the fee, 
the Administrator shall deposit the surplus funds in an 
account established in the Treasury, and designated as the 
Airspace Congestion Mitigation Account. Such surplus 
revenue shall be available to the Secretary, as specified 
in appropriations Acts, until expended, for the following 
uses: 
‘‘(A) airport capacity expansion or airport con-
gestion and delay reduction at the airport at which 
a market based mechanism is implemented; 
‘‘(B) airport capacity expansion or airport con-
gestion and delay reduction at other congested air-
ports, with priority given to capacity projects in the 
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113 
same region as the airport at which a market based 
mechanism is implemented; 
‘‘(C) improvement of ground access to the air-
ports in the vicinity, as defined by the Secretary, if 
the Secretary finds that it would help relieve conges-
tion at the airport where a market-based mechanism 
is implemented; 
‘‘(D) construction, reconstruction or reconfig-
uration of gates and related areas at the airport 
where a market-based mechanism is implemented; 
‘‘(E) facilities, equipment, or other air traffic 
control improvement projects that would enhance 
airport or airspace capacity in the National Airspace 
System, with priority given to projects in the region 
of an airport where a market-based mechanism is 
implemented; and 
‘‘(F) assistance to air carriers in the purchase 
of equipment for their aircraft to enable them to uti-
lize air traffic control facilities and equipment, in-
cluding the facilities and equipment purchased under 
subparagraph (E), in order to enhance airport and 
airspace capacity. 
‘‘(d) CONFORMANCE WITH REQUIREMENTS.—A mar-
ket-based mechanism implemented under this pilot pro-
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114 
gram shall be deemed to meet the requirements of section 
40116 and chapter 471 of this title. 
‘‘(e) DEFINITION.—For purposes of this section, the 
term ‘market-based mechanism’ includes the use of auc-
tions, or congestion or peak period pricing under which 
fees may vary by time of day or day of the week in order 
to reduce aviation congestion and delays. 
‘‘(f) EXCLUSION.—An airport subject to the require-
ments of section 41724 shall not be eligible to participate 
in this pilot program.’’. 
(b) CONFORMING AMENDMENT.—The analysis of 
subchapter I of chapter 417 is amended by adding at the 
end the following: 
‘‘41725. Pilot Program for market-based mechanisms at congested airports.’’. 
TITLE 
VI—ENVIRONMENTAL 
STEWARDSHIP AND STREAM-
LINING 
SEC. 601. AIRPORT COOPERATIVE RESEARCH PROGRAM. 
Section 44511(f) is amended— 
(1) in paragraph (1), by striking ‘‘establish a 4- 
year pilot’’ and inserting ‘‘maintain an’’; and 
(2) in paragraph (4), by— 
(A) inserting ‘‘pilot’’ before ‘‘program’’ the 
first time it appears; and 
(B) striking ‘‘program, including rec-
ommendations as to the need for establishing a 
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