II 

112TH CONGRESS 

1ST SESSION S. 1300 

To amend titles 23, 45, and 49, United States Code, to encourage the 

use of private-public partnerships in transportation. 

IN THE SENATE OF THE UNITED STATES 

JUNE 29, 2011 

Mr. KIRK introduced the following bill; which was read twice and referred to 

the Committee on Finance 

A BILL 

To amend titles 23, 45, and 49, United States Code, to 

encourage the use of private-public partnerships in transportation. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Lincoln Legacy Infra5 structure Development Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 

8 (1) the American Association of State Highway 

9 and Transportation Officials estimates current high10 way, bridge, public transit, and freight and pasVerDate Mar 15 2010 02:02 Jun 30, 2011 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1300.IS S1300

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1 senger rail funding needs are approximately 

2 $225,000,000,000 to $340,000,000,000 per year 

3 through 2055, while current spending is less than 

4 $90,000,000,000 per year; 

5 (2) according to the organization known as 

6 Transportation for America, 69,223 bridges, or 11.5 

7 percent of all highway bridges in the United States, 

8 are considered structurally deficient; 

9 (3) according to the Congressional Research 

10 Service, for fiscal year 2010, the Highway Trust 

11 Fund, the primary funding source for highways and 

12 transit, received approximately $35,000,000,000 in 

13 revenue but spent approximately $50,000,000,000; 

14 (4) Congress transferred $34,500,000,000 in 

15 general revenue to the Highway Trust Fund during 

16 the period of fiscal years 2008 to 2010 to keep the 

17 Highway Trust Fund solvent; 

18 (5) Highway Trust Fund outlays during the pe19 riod of fiscal years 2011 to 2021 are expected to ex20 ceed revenues and interest by approximately 

21 $120,000,000,000; 

22 (6) the Congressional Budget Office estimates 

23 that the Highway Trust Fund will be unable to meet 

24 obligations of the Highway Trust Fund sometime 

25 during fiscal year 2012; 


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1 (7) the United States Chamber of Commerce 

2 estimates that further deterioration of transpor3 tation networks could result in as much as 

4 $336,000,000,000 in lost growth during the 5 years 

5 after the date of enactment of this Act; 

6 (8) private-public partnerships are an important 

7 tool to help address transportation infrastructure 

8 shortfalls; 

9 (9) infrastructure experts estimate that there is 

10 more than $400,000,000,000 available for private11 sector capital infrastructure investment; 

12 (10) according to the Federal Highway Admin13 istration, 29 States and 1 United States territory 

14 have enacted legislation enabling private-public part15 nerships; and 

16 (11) State and local governments are uniquely 

17 positioned to further develop and use innovative fi18 nancing methods for all modes of infrastructure. 

19 SEC. 3. PRIVATE-PUBLIC PARTNERSHIP CHALLENGE 

20 GRANTS. 

21 (a) IN GENERAL.—Chapter 1 of title 23, United 

22 States Code, is amended by inserting after section 149 the 

23 following: 


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1 ‘‘§ 150. Private-public partnership challenge grants 

2 ‘‘(a) IN GENERAL.—The Secretary shall establish a 

3 program, to be known as the ‘Private-Public Partnership 

4 Challenge Grant Program’ (referred to in this section as 

5 the ‘program’), to encourage States to develop, enact, and 

6 implement private-public partnership enabling legislation 

7 and procurement policies. 

8 ‘‘(b) ELIGIBLE RECIPIENTS.—The Secretary may 

9 provide a grant under the program to a State for use in 

10 implementing innovative and successful strategies to use 

11 private-public partnerships with respect to funding for 

12 rail, aviation, transit, highway, and waterway transpor13 tation. 

14 ‘‘(c) APPLICATION.—A State that seeks to receive a 

15 grant under the program shall submit to the Secretary an 

16 application for the grant at such time, in such manner, 

17 and containing such information as the Secretary shall re18 quire. 

19 ‘‘(d) FUNDING.—The Secretary shall use to carry out 

20 the program amounts received as Federal surcharges on 

21 revenue generated from agreements resulting from the 

22 concession or lease of safety rest areas under section 

23 111(a)(2).’’. 

24 (b) CONFORMING AMENDMENT.—The analysis for 

25 chapter 1 of title 23, United States Code, is amended by 


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1 inserting after the item relating to section 149 the fol2 lowing: 

‘‘150. Private-public partnership challenge grants.’’. 

3 SEC. 4. FEDERAL-AID HIGHWAYS. 

4 (a) AGREEMENTS RELATING TO USE OF AND ACCESS

5 TO RIGHTS-OF-WAY-INTERSTATE SYSTEM.— 

6 (1) IN GENERAL.—Section 111(a) of title 23, 

7 United States Code, is amended— 

8 (A) by redesignating subparagraphs (A) 

9 through (C) of paragraph (1) as clauses (i) 

10 through (iii), respectively; 

11 (B) by redesignating paragraphs (1) and 

12 (2) as subparagraphs (A) and (B), respectively; 

13 (C) by striking ‘‘IN GENERAL.—All agree14 ments’’ and inserting the following: 

15 ‘‘(a) AGREEMENTS.— 

16 ‘‘(1) IN GENERAL.—All agreements’’; and 

17 (D) by adding at the end the following: 

18 ‘‘(2) COMMERCIALIZATION, LEASE, AND CON19 CESSION OF INTERSTATE SAFETY REST AREAS.— 

20 Notwithstanding paragraph (1), the Secretary may 

21 permit a State to enter into 1 or more agreements 

22 for the commercialization, lease, or concession of a 

23 safety rest area constructed or located on a right-of24 way on the Interstate System in the State on the 

25 conditions that— 


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1 ‘‘(A) access to the safety rest area, park2 ing, and restrooms remains free of charge; 

3 ‘‘(B) the safety of motorists is not com4 promised by the agreement; and 

5 ‘‘(C) the State agrees— 

6 ‘‘(i) to pay to the Secretary, upon en7 tering into an agreement under this sub8 paragraph, a Federal surcharge equal to 5 

9 percent of the total amount received by the 

10 State under the agreement, which amounts 

11 the Secretary shall deposit in the Highway 

12 Trust Fund at the rate that corresponds to 

13 the rate at which the State receives 

14 amounts under the agreement; and 

15 ‘‘(ii) to use the remaining amounts re16 ceived by the State under the agreement 

17 only for purposes relating to a highway or 

18 transit transportation project carried out 

19 under this title or title 49.’’. 

20 (b) VENDING MACHINES.—Section 111(b) of title 23, 

21 United States Code, is amended— 

22 (1) by striking ‘‘Notwithstanding’’ and insert23 ing the following: 

24 ‘‘(1) IN GENERAL.—Notwithstanding’’; and 

25 (2) by adding at the end the following: 


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1 ‘‘(2) BLIND VENDING FACILITIES.—Notwith2 standing any other provision of this Act— 

3 ‘‘(A) the Secretary shall not impose any 

4 surcharge on a State with respect to any blind 

5 vending facility established pursuant to para6 graph (1); and 

7 ‘‘(B) the priority accorded licensed blind 

8 vendors by paragraph (1) shall not be otherwise 

9 limited or diminished as a result of the imple10 mentation of the Lincoln Legacy Infrastructure 

11 Development Act.’’. 

12 (c) TOLL ROADS, BRIDGES, TUNNELS, AND FER13 RIES.—Section 129(a)(3) of title 23, United States Code, 

14 is amended in the last sentence by striking ‘‘for any pur15 pose for which Federal funds may be obligated by a State 

16 under this title’’ and inserting ‘‘, including revenues re17 ceived as a result of any agreement entered into by the 

18 State for the sale, lease, or concession of a highway, 

19 bridge, or tunnel, only for purposes relating to a highway 

20 or transit transportation project carried out under this 

21 title or title 49’’. 

22 (d) HOV FACILITIES.—Section 166(a) of title 23, 

23 United States Code, is amended by striking paragraph (2) 

24 and inserting the following: 

25 ‘‘(2) OCCUPANCY REQUIREMENT.— 


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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B) and in other provisions of 

3 this section, not fewer than 2 occupants per ve4 hicle may be required for use of a HOV facility. 

5 ‘‘(B) CONGESTION.—In any case in which 

6 a State determines that a HOV facility is a de7 graded facility (as described in subsection 

8 (d)(2)(B)) or that the average speed of traffic 

9 on a HOV facility slows to less than the min10 imum average operating speed (as defined in 

11 subsection (d)(2)(A)), the State shall require 

12 not fewer than 3 occupants per vehicle for use 

13 of the HOV facility.’’. 

14 (e) INNOVATIVE SURFACE TRANSPORTATION FI15 NANCING METHODS.— 

16 (1) VALUE PRICING PILOT PROGRAM.—Section 

17 1012(b)(1) of the Intermodal Surface Transpor18 tation Efficiency Act of 1991 (23 U.S.C. 149 note; 

19 105 Stat. 1938) is amended in the second sentence 

20 by striking ‘‘as many as 15 such State or local gov21 ernments or public authorities’’ and inserting 

22 ‘‘States, local governments, and public authorities’’. 

23 (2) INTERSTATE SYSTEM RECONSTRUCTION

24 AND REHABILITATION PILOT PROGRAM.—Section 

25 1216(b)(2) of the Transportation Equity Act for the 


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1 21st Century (23 U.S.C. 129 note; 112 Stat. 212) 

2 is amended— 

3 (A) in the first sentence, by striking ‘‘3’’ 

4 and inserting ‘‘10’’; and 

5 (B) by striking the second sentence. 

6 (f) EXPRESS LANES DEMONSTRATION PROGRAM.— 

7 Section 1604(b)(2) of the SAFETEA–LU (23 U.S.C. 129 

8 note; 119 Stat. 1250) is amended in the matter preceding 

9 subparagraph (A)— 

10 (1) by striking ‘‘15’’; and 

11 (2) by striking ‘‘2005 through 2009’’ and in12 serting ‘‘2012 through 2017’’. 

13 (g) INTERSTATE SYSTEM CONSTRUCTION TOLL

14 PILOT PROGRAM.—Section 1604(c) of the SAFETEA– 

15 LU (23 U.S.C. 129 note; 119 Stat. 1253) is amended— 

16 (1) by striking paragraph (2); 

17 (2) by redesignating paragraphs (9) and (1) as 

18 paragraphs (1) and (2), respectively; and 

19 (3) in paragraph (8), by striking ‘‘the date of 

20 enactment of this Act’’ and inserting ‘‘the date of 

21 enactment of the Lincoln Legacy Infrastructure De22 velopment Act’’. 

23 SEC. 5. INFRASTRUCTURE FINANCE. 

24 (a) NONSUBORDINATION.— 


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1 (1) SECURED LOANS.—Section 603(b) of title 

2 23, United States Code, is amended— 

3 (A) by striking paragraph (6); and 

4 (B) by redesignating paragraphs (7) and 

5 (8) as paragraphs (6) and (7), respectively. 

6 (2) LINES OF CREDIT.—Section 604(b) of title 

7 23, United States Code, is amended— 

8 (A) by striking paragraph (8); and 

9 (B) by redesignating paragraphs (9) and 

10 (10) as paragraphs (8) and (9), respectively. 

11 (b) REAUTHORIZATION.—Section 608(a) of title 23, 

12 United States Code, is amended— 

13 (1) in paragraph (1), by striking 

14 ‘‘$122,000,000 for each of fiscal years 2005 through 

15 2009’’ and inserting ‘‘$750,000,000 for each of fis16 cal years 2012 through 2017’’; and 

17 (2) in paragraph (3) by striking ‘‘$2,200,000 

18 for each of fiscal years 2005 through 2009’’ and in19 serting ‘‘$7,500,000 for each of fiscal years 2012 

20 through 2017’’. 

21 SEC. 6. RAILROAD REHABILITATION AND IMPROVEMENT 

22 FINANCING PROGRAM. 

23 (a) ELIGIBLE ACTIVITIES.—Section 822(b)(1) of title 

24 45, United States Code, is amended— 


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1 (1) in subparagraph (B), by striking ‘‘or’’ at 

2 the end; 

3 (2) in subparagraph (C), by striking the period 

4 at the end and inserting a semicolon; and 

5 (3) by adding at the end the following: 

6 ‘‘(D) carry out projects and activities that 

7 benefit high-speed rail; or 

8 ‘‘(E) carry out development phase activi9 ties, including planning, feasibility analysis, rev10 enue forecasting, environmental review, permit11 ting, preliminary engineering and design work, 

12 and other preconstruction activities.’’. 

13 (b) CREDIT RISK REQUIREMENTS.—Section 

14 822(h)(2) of title 45, United States Code, is amended by 

15 inserting ‘‘For purposes of making a finding under sub16 section (g)(4), the Secretary, through the Administrator 

17 of the Federal Railroad Administration, shall consider the 

18 net present value of anticipated dedicated revenues or user 

19 fees to be collateral offered by the applicant.’’ after ‘‘the 

20 project.’’. 

21 (c) BIANNUAL REPORT.—Not later than 6 months 

22 after the date of the enactment of this Act, and every 6 

23 months thereafter, the Administrator of the Federal Rail24 road Administration shall submit a report to Congress 

25 that describes— 


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1 (1) the number of loans pending and issued 

2 under section 822 of title 45, United States Code; 

3 and 

4 (2) the time taken to process each of the loans 

5 described in paragraph (1). 

6 SEC. 7. AIRPORT PRIVATIZATION PROGRAM. 

7 (a) APPROVAL OF APPLICATIONS.—Section 47134(b) 

8 of title 49, United States Code, is amended— 

9 (1) in the matter preceding paragraph (1) by 

10 striking ‘‘with respect to not more than 5 airports’’; 

11 and 

12 (2) in paragraph (1)— 

13 (A) by striking subparagraph (A) and in14 serting the following: 

15 ‘‘(A) IN GENERAL.—The Secretary may 

16 grant an exemption to an airport sponsor from 

17 the requirements of sections 47107(b) and 

18 47133 (and any other law, regulation, or grant 

19 assurance) to the extent necessary to permit the 

20 sponsor to recover from the sale or lease of the 

21 airport such amount as may be approved by the 

22 Secretary after the sponsor has consulted— 

23 ‘‘(i) in the case of a primary airport, 

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1 rier serving the airport, as determined by 

2 the Secretary; and 

3 ‘‘(ii) in the case of a nonprimary air4 port, with at least 65 percent of the own5 ers of aircraft based at that airport, as de6 termined by the Secretary.’’; and 

7 (B) by striking subparagraph (C). 

8 (b) TERMS AND CONDITIONS.—Section 47134(c) of 

9 title 49, United States Code, is amended— 

10 (1) by striking paragraphs (4), (5), and (9); 

11 (2) by redesignating paragraphs (6), (7), and 

12 (8) as paragraphs (4), (5), and (6), respectively; and 

13 (3) by adding at the end the following: 

14 ‘‘(7) A fee imposed by the airport on an air car15 rier or foreign air carrier may not include any por16 tion for a return on investment or recovery of prin17 cipal with respect to consideration paid to a public 

18 agency for the lease or sale of the airport unless that 

19 portion of the fee is approved by the air carrier or 

20 foreign air carrier.’’. 

21 (c) PARTICIPATION OF CERTAIN AIRPORTS.—Section 

22 47134 of title 49, United States Code, is amended— 

23 (1) by striking subsection (d); and 

24 (2) by redesignating subsections (e) through 

25 (m) as subsections (d) through (l), respectively. 


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1 (d) APPLICABILITY.—The amendments made by this 

2 section shall apply with respect to an exemption issued to 

3 an airport under section 47134 of title 49, United States 

4 Code, before, on, or after the date of enactment of this 

5 Act. 

6 (e) CLERICAL AMENDMENTS.— 

7 (1) SECTION HEADING.—The section heading 

8 for section 47134 of title 49, United States Code, is 

9 amended to read as follows: 

10 ‘‘§ 47134. Private ownership of airports’’. 

11 (2) TABLE OF CONTENTS.—The table of sec12 tions for chapter 471 of title 49, United States 

13 Code, is amended by striking the item relating to 

14 section 47134 and inserting the following: 

‘‘47134. Private ownership of airports.’’. 

15 SEC. 8. PUBLIC TRANSPORTATION. 

16 (a) DEFINITIONS.—In this section— 

17 (1) the term ‘‘Administrator’’ mean the Admin18 istrator of the Federal Transit Administration; 

19 (2) the term ‘‘covered HOT lane facility’’ 

20 means any high occupancy/toll lane facility used by 

21 a bus service operated by a public transportation 

22 agency, without regard to whether the high occu23 pancy/toll lane facility was converted from a high oc24 cupancy vehicle facility; 


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1 (3) the term ‘‘eligible project’’ means a project 

2 carried out using funding under section 5307 or 

3 5309 of title 49, United States Code; 

4 (4) the term ‘‘eligible recipient’’ means a recipi5 ent of funding under section 5307 or 5309 of title 

6 49, United States Code; 

7 (5) the term ‘‘experimental program’’ means 

8 the public-private partnership experimental program 

9 established under subsection (b); and 

10 (6) the term ‘‘fixed guideway miles’’ includes 

11 fixed guideway revenue vehicle-miles, fixed guideway 

12 route miles, and fixed guideway vehicle passenger13 miles. 

14 (b) PUBLIC-PRIVATE PARTNERSHIP EXPERIMENTAL

15 PROGRAM.— 

16 (1) PROGRAM ESTABLISHED.—The Adminis17 trator shall establish a 6-year public-private partner18 ship experimental program to encourage eligible re19 cipients to carry out tests and experimentation in 

20 the project development process that are designed 

21 to— 

22 (A) attract private investment in covered 

23 projects; and 

24 (B) increase project management flexibility 

25 and innovation, improve efficiency, allow for 


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1 timely project implementation, and create new 

2 revenue streams. 

3 (2) IMPLEMENTATION OF PROGRAM.—The ex4 perimental program shall— 

5 (A) except as provided in paragraph (5), 

6 identify any provisions of chapter 53 of title 49, 

7 United States Code, and any regulations or 

8 practices thereunder, that impede greater use of 

9 public-private partnerships and private invest10 ment in covered projects; and 

11 (B) develop procedures and approaches 

12 that— 

13 (i) address the impediments described 

14 in subparagraph (A), in a manner similar 

15 to the Special Experimental Project Num16 ber 15 of the Federal Highway Adminis17 tration (commonly referred to as ‘‘SEP– 

18 15’’); and 

19 (ii) protect the public interest and any 

20 public investment in covered projects. 

21 (3) REPORT.—Not later than 2 years after the 

22 date of enactment of this Act, and every 2 years 

23 thereafter until the termination of the experimental 

24 program, the Administrator shall submit to Congress 

25 a report on the status of the experimental program. 


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1 (4) RULEMAKING.—Not later than 180 days 

2 after the date of enactment of this Act, the Adminis3 trator shall issue rules to carry out the experimental 

4 program. 

5 (5) RULE OF CONSTRUCTION.—Nothing in this 

6 subsection may be construed to allow the Adminis7 trator to waive any requirement under— 

8 (A) section 5333 of title 49, United States 

9 Code; 

10 (B) the National Environmental Policy Act 

11 of 1969 (42 U.S.C. 4321 et seq.); or 

12 (C) any other provision of Federal law not 

13 described in paragraph (2)(A). 

14 (c) DETERMINATION OF NUMBER OF FIXED GUIDE15 WAY MILES.— 

16 (1) IN GENERAL.—For purposes of appor17 tioning funding under sections 5307 and 5309 of 

18 title 49, United States Code, the Administrator shall 

19 deem covered HOT lane facility miles in an area to 

20 be fixed guideway miles attributable to the area. 

21 (2) AMOUNT APPORTIONED NOT AFFECTED.— 

22 Notwithstanding any other provision of law, the Sec23 retary may not apportion an amount for an urban24 ized area under section 5307 or 5309 of title 49, 

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1 cal year thereafter, that is less than the amount ap2 portioned for the urbanized area under section 5307 

3 or 5309, respectively, for fiscal year 2011, if the re4 duction in amount is solely attributable to the re5 quirement under paragraph (1). 

6 (3) AVAILABILITY OF FUNDS.—There shall be 

7 available from the Mass Transit Account of the 

8 Highway Trust fund for fiscal year 2012, and each 

9 fiscal year thereafter, such sums as are necessary to 

10 carry out this subsection. 

11 SEC. 9. REMOVAL OF CAP ON EXEMPT FACILITY BONDS 

12 USED TO FINANCE QUALIFIED HIGHWAY OR 

13 SURFACE FREIGHT TRANSFER FACILITIES. 

14 (a) IN GENERAL.—Subsection (m) of section 142 of 

15 the Internal Revenue Code of 1986 is amended— 

16 (1) by striking paragraph (2), and 

17 (2) by redesignating paragraphs (3) and (4) as 

18 paragraphs (2) and (3). 

19 (b) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to bonds issued after the date of 

21 the enactment of this Act. 


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1 SEC. 10. REDUCTION IN ANNUAL ADJUSTMENTS TO PAY 

2 SCHEDULES FOR FEDERAL EMPLOYEES FOR 

3 FISCAL YEARS 2013 THROUGH 2021. 

4 For each of fiscal years 2013 through 2021, section 

5 5303(a) of title 5, United States Code, shall be applied 

6 by substituting ‘‘1 percentage point’’ for ‘‘one-half of 1 

7 percentage point’’. 

8 SEC. 11. FUNDING. 

9 Of the Federal funds saved for the period of fiscal 

10 years 2013 through 2021 as a result of the application 

11 of section 9 of this Act and subsections (b) and (c) of 

12 section 147 of the Continuing Appropriations Act, 2011 

13 (Public Law 111–242; 124 Stat. 2607, 124 Stat. 3518)— 

14 (1) such sums as may be necessary to carry out 

15 this Act and any amendments made by this Act shall 

16 be deposited into the Highway Trust Fund; and 

17 (2) the remainder of the funds shall be used for 

18 purposes of deficit reduction. 

Æ 


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