To amend titles 23, 45, and 49, United States Code, to encourage the use of private-public partnerships in transportation.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Lincoln Legacy Infrastructure 
Development Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the American Association of State Highway and 
        Transportation Officials estimates current highway, bridge, 
        public transit, and freight and passenger rail funding needs 
        are approximately $225,000,000,000 to $340,000,000,000 per year 
        through 2055, while current spending is less than 
        $90,000,000,000 per year;
            (2) according to the organization known as Transportation 
        for America, 69,223 bridges, or 11.5 percent of all highway 
        bridges in the United States, are considered structurally 
        deficient;
            (3) according to the Congressional Research Service, for 
        fiscal year 2010, the Highway Trust Fund, the primary funding 
        source for highways and transit, received approximately 
        $35,000,000,000 in revenue but spent approximately 
        $50,000,000,000;
            (4) Congress transferred $34,500,000,000 in general revenue 
        to the Highway Trust Fund during the period of fiscal years 
        2008 to 2010 to keep the Highway Trust Fund solvent;
            (5) Highway Trust Fund outlays during the period of fiscal 
        years 2011 to 2021 are expected to exceed revenues and interest 
        by approximately $120,000,000,000;
            (6) the Congressional Budget Office estimates that the 
        Highway Trust Fund will be unable to meet obligations of the 
        Highway Trust Fund sometime during fiscal year 2012;
            (7) the United States Chamber of Commerce estimates that 
        further deterioration of transportation networks could result 
        in as much as $336,000,000,000 in lost growth during the 5 
        years after the date of enactment of this Act;
            (8) private-public partnerships are an important tool to 
        help address transportation infrastructure shortfalls;
            (9) infrastructure experts estimate that there is more than 
        $400,000,000,000 available for private-sector capital 
        infrastructure investment;
            (10) according to the Federal Highway Administration, 29 
        States and 1 United States territory have enacted legislation 
        enabling private-public partnerships; and
            (11) State and local governments are uniquely positioned to 
        further develop and use innovative financing methods for all 
        modes of infrastructure.

SEC. 3. FEDERAL-AID HIGHWAYS.

    (a) Vending Machines.--Section 111(b) of title 23, United States 
Code, is amended--
            (1) by striking ``Notwithstanding'' and inserting the 
        following:
            ``(1) In general.--Notwithstanding''; and
            (2) by adding at the end the following:
            ``(2) Blind vending facilities.--Notwithstanding any other 
        provision of this Act--
                    ``(A) the Secretary shall not impose any surcharge 
                on a State with respect to any blind vending facility 
                established pursuant to paragraph (1); and
                    ``(B) the priority accorded licensed blind vendors 
                by paragraph (1) shall not be otherwise limited or 
                diminished as a result of the implementation of the 
                Lincoln Legacy Infrastructure Development Act.''.
    (b) Toll Roads, Bridges, Tunnels, and Ferries.--Section 129(a)(3) 
of title 23, United States Code, is amended in the last sentence by 
striking ``for any purpose for which Federal funds may be obligated by 
a State under this title'' and inserting ``, including revenues 
received as a result of any agreement entered into by the State for the 
sale, lease, or concession of a highway, bridge, or tunnel, only for 
purposes relating to a highway or transit transportation project 
carried out under this title or title 49''.
    (c) HOV Facilities.--Section 166(a) of title 23, United States 
Code, is amended by striking paragraph (2) and inserting the following:
            ``(2) Occupancy requirement.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) and in other provisions of this 
                section, not fewer than 2 occupants per vehicle may be 
                required for use of a HOV facility.
                    ``(B) Congestion.--In any case in which a State 
                determines that a HOV facility is a degraded facility 
                (as described in subsection (d)(2)(B)) or that the 
                average speed of traffic on a HOV facility slows to 
                less than the minimum average operating speed (as 
                defined in subsection (d)(2)(A)), the State shall 
                require not fewer than 3 occupants per vehicle for use 
                of the HOV facility.''.
    (d) Innovative Surface Transportation Financing Methods.--
            (1) Value pricing pilot program.--Section 1012(b)(1) of the 
        Intermodal Surface Transportation Efficiency Act of 1991 (23 
        U.S.C. 149 note; 105 Stat. 1938) is amended in the second 
        sentence by striking ``as many as 15 such State or local 
        governments or public authorities'' and inserting ``States, 
        local governments, and public authorities''.
            (2) Interstate system reconstruction and rehabilitation 
        pilot program.--Section 1216(b)(2) of the Transportation Equity 
        Act for the 21st Century (23 U.S.C. 129 note; 112 Stat. 212) is 
        amended--
                    (A) in the first sentence, by striking ``3'' and 
                inserting ``10''; and
                    (B) by striking the second sentence.
    (e) Express Lanes Demonstration Program.--Section 1604(b)(2) of the 
SAFETEA-LU (23 U.S.C. 129 note; 119 Stat. 1250) is amended in the 
matter preceding subparagraph (A)--
            (1) by striking ``15''; and
            (2) by striking ``2005 through 2009'' and inserting ``2012 
        through 2017''.
    (f) Interstate System Construction Toll Pilot Program.--Section 
1604(c) of the SAFETEA-LU (23 U.S.C. 129 note; 119 Stat. 1253) is 
amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraphs (9) and (1) as paragraphs 
        (1) and (2), respectively; and
            (3) in paragraph (8), by striking ``the date of enactment 
        of this Act'' and inserting ``the date of enactment of the 
        Lincoln Legacy Infrastructure Development Act''.

SEC. 4. INFRASTRUCTURE FINANCE.

    (a) Nonsubordination.--
            (1) Secured loans.--Section 603(b) of title 23, United 
        States Code, is amended--
                    (A) by striking paragraph (6); and
                    (B) by redesignating paragraphs (7) and (8) as 
                paragraphs (6) and (7), respectively.
            (2) Lines of credit.--Section 604(b) of title 23, United 
        States Code, is amended--
                    (A) by striking paragraph (8); and
                    (B) by redesignating paragraphs (9) and (10) as 
                paragraphs (8) and (9), respectively.
    (b) Reauthorization.--Section 608(a) of title 23, United States 
Code, is amended--
            (1) in paragraph (1), by striking ``$122,000,000 for each 
        of fiscal years 2005 through 2009'' and inserting 
        ``$750,000,000 for each of fiscal years 2012 through 2017''; 
        and
            (2) in paragraph (3) by striking ``$2,200,000 for each of 
        fiscal years 2005 through 2009'' and inserting ``$7,500,000 for 
        each of fiscal years 2012 through 2017''.

SEC. 5. RAILROAD REHABILITATION AND IMPROVEMENT FINANCING PROGRAM.

    (a) Eligible Activities.--Section 822(b)(1) of title 45, United 
States Code, is amended--
            (1) in subparagraph (B), by striking ``or'' at the end;
            (2) in subparagraph (C), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(D) carry out projects and activities that 
                benefit high-speed rail; or
                    ``(E) carry out development phase activities, 
                including planning, feasibility analysis, revenue 
                forecasting, environmental review, permitting, 
                preliminary engineering and design work, and other 
                preconstruction activities.''.
    (b) Credit Risk Requirements.--Section 822(h)(2) of title 45, 
United States Code, is amended by inserting ``For purposes of making a 
finding under subsection (g)(4), the Secretary, through the 
Administrator of the Federal Railroad Administration, shall consider 
the net present value of anticipated dedicated revenues or user fees to 
be collateral offered by the applicant.'' after ``the project.''.
    (c) Biannual Report.--Not later than 6 months after the date of the 
enactment of this Act, and every 6 months thereafter, the Administrator 
of the Federal Railroad Administration shall submit a report to 
Congress that describes--
            (1) the number of loans pending and issued under section 
        822 of title 45, United States Code; and
            (2) the time taken to process each of the loans described 
        in paragraph (1).

SEC. 6. PUBLIC TRANSPORTATION.

    (a) Definitions.--In this section--
            (1) the term ``Administrator'' mean the Administrator of 
        the Federal Transit Administration;
            (2) the term ``covered HOT lane facility'' means any high 
        occupancy/toll lane facility used by a bus service operated by 
        a public transportation agency, without regard to whether the 
        high occupancy/toll lane facility was converted from a high 
        occupancy vehicle facility;
            (3) the term ``eligible project'' means a project carried 
        out using funding under section 5307 or 5309 of title 49, 
        United States Code;
            (4) the term ``eligible recipient'' means a recipient of 
        funding under section 5307 or 5309 of title 49, United States 
        Code;
            (5) the term ``experimental program'' means the public-
        private partnership experimental program established under 
        subsection (b); and
            (6) the term ``fixed guideway miles'' includes fixed 
        guideway revenue vehicle-miles, fixed guideway route miles, and 
        fixed guideway vehicle passenger-miles.
    (b) Public-Private Partnership Experimental Program.--
            (1) Program established.--The Administrator shall establish 
        a 6-year public-private partnership experimental program to 
        encourage eligible recipients to carry out tests and 
        experimentation in the project development process that are 
        designed to--
                    (A) attract private investment in covered projects; 
                and
                    (B) increase project management flexibility and 
                innovation, improve efficiency, allow for timely 
                project implementation, and create new revenue streams.
            (2) Implementation of program.--The experimental program 
        shall--
                    (A) except as provided in paragraph (5), identify 
                any provisions of chapter 53 of title 49, United States 
                Code, and any regulations or practices thereunder, that 
                impede greater use of public-private partnerships and 
                private investment in covered projects; and
                    (B) develop procedures and approaches that--
                            (i) address the impediments described in 
                        subparagraph (A), in a manner similar to the 
                        Special Experimental Project Number 15 of the 
                        Federal Highway Administration (commonly 
                        referred to as ``SEP-15''); and
                            (ii) protect the public interest and any 
                        public investment in covered projects.
            (3) Report.--Not later than 2 years after the date of 
        enactment of this Act, and every 2 years thereafter until the 
        termination of the experimental program, the Administrator 
        shall submit to Congress a report on the status of the 
        experimental program.
            (4) Rulemaking.--Not later than 180 days after the date of 
        enactment of this Act, the Administrator shall issue rules to 
        carry out the experimental program.
            (5) Rule of construction.--Nothing in this subsection may 
        be construed to allow the Administrator to waive any 
        requirement under--
                    (A) section 5333 of title 49, United States Code;
                    (B) the National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.); or
                    (C) any other provision of Federal law not 
                described in paragraph (2)(A).
    (c) Determination of Number of Fixed Guideway Miles.--
            (1) In general.--For purposes of apportioning funding under 
        sections 5307 and 5309 of title 49, United States Code, the 
        Administrator shall deem covered HOT lane facility miles in an 
        area to be fixed guideway miles attributable to the area.
            (2) Amount apportioned not affected.--Notwithstanding any 
        other provision of law, the Secretary may not apportion an 
        amount for an urbanized area under section 5307 or 5309 of 
        title 49, United States Code, for fiscal year 2012, or any 
        fiscal year thereafter, that is less than the amount 
        apportioned for the urbanized area under section 5307 or 5309, 
        respectively, for fiscal year 2011, if the reduction in amount 
        is solely attributable to the requirement under paragraph (1).
            (3) Availability of funds.--There shall be available from 
        the Mass Transit Account of the Highway Trust fund for fiscal 
        year 2012, and each fiscal year thereafter, such sums as are 
        necessary to carry out this subsection.

SEC. 7. REMOVAL OF CAP ON EXEMPT FACILITY BONDS USED TO FINANCE 
              QUALIFIED HIGHWAY OR SURFACE FREIGHT TRANSFER FACILITIES.

    (a) In General.--Subsection (m) of section 142 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking paragraph (2), and
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3).
    (b) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 8. REDUCTION IN ANNUAL ADJUSTMENTS TO PAY SCHEDULES FOR FEDERAL 
              EMPLOYEES FOR FISCAL YEARS 2013 THROUGH 2021.

    For each of fiscal years 2013 through 2021, section 5303(a) of 
title 5, United States Code, shall be applied by substituting ``1 
percentage point'' for ``one-half of 1 percentage point''.

SEC. 9. FUNDING.

    Of the Federal funds saved for the period of fiscal years 2013 
through 2021 as a result of the application of section 9 of this Act 
and subsections (b) and (c) of section 147 of the Continuing 
Appropriations Act, 2011 (Public Law 111-242; 124 Stat. 2607, 124 Stat. 
3518)--
            (1) such sums as may be necessary to carry out this Act and 
        any amendments made by this Act shall be deposited into the 
        Highway Trust Fund; and
            (2) the remainder of the funds shall be used for purposes 
        of deficit reduction.

Summary: Lincoln Legacy Infrastructure Development Act - Prohibits the Secretary of Transportation (DOT) from imposing a federal surcharge on a state that has allowed the placement of blind vending facilities in rest and recreation areas, and in safety rest areas, located on Interstate System (IS) rights-of-way. Revises state high occupancy vehicle (HOV) facility requirements to increase from a minimum of two to a minimum of three the number of occupants per vehicle for use of an HOV facility in cases of congestion meeting certain criteria. Amends the Intermodal Surface Transportation Efficiency Act of 1991 to remove limits on the number of state or local governments or public authorities with which the Secretary may enter into cooperative agreements to establish value pricing pilot programs . Amends the Transportation Equity Act for the 21st Century (TEA-21) to increase from 3 to 10 the number of IS highways, bridges, or tunnels where a state may collect tolls for the reconstruction and rehabilitation of IS highway corridors. Amends the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) to eliminate restrictions on: (1) the number of projects under the express lanes demonstration program , and (2) the number of IS facilities on which the Secretary may collect IS construction tolls . Eliminates the nonsubordination of secured loans and lines of credit used to finance surface transportation project costs to the claims of any holder of project obligations in the event of the obligor's bankruptcy, insolvency, or liquidation. Makes eligible for railroad rehabilitation and improvement direct loans and loan guarantees: (1) projects and activities that benefit high-speed rail, and (2) development phase activities. Directs the Administrator of the Federal Transit Administration (FTA) to establish a six-year public-private partnership experimental program to encourage recipients of certain federal assistance to carry out tests and experimentation in the public transportation project development process designed to: (1) attract private investment in such projects. And (2) increase project management flexibility and innovation, improve efficiency, allow for timely project implementation, and create new revenue streams. Amends the Internal Revenue Code to remove the cap on the aggregate allowable amount of tax-exempt bonds to finance qualified highway or surface freight transfer facilities. Revises a specified formula in order to reduce annual adjustments to pay schedules for federal employees for FY2013-FY2021.