[Senate Report 110-188]
[From the U.S. Government Publishing Office]



110th Congress 
 1st Session                     SENATE                          Report
                                                                110-188
_______________________________________________________________________

                                     

                                                       Calendar No. 402

         NATIONAL CAPITAL TRANSPORTATION AMENDMENTS ACT OF 2007

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 1446

 TO AMEND THE NATIONAL CAPITAL TRANSPORTATION ACT OF 1969 TO AUTHORIZE 
  ADDITIONAL FEDERAL CONTRIBUTIONS FOR MAINTAINING AND IMPROVING THE 
 TRANSIT SYSTEM OF THE WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY, 
                         AND FOR OTHER PURPOSES




                October 3, 2007.--Ordered to be printed
         COMMITEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TED STEVENS, Alaska
THOMAS R. CARPER, Delaware           GEORGE V. VOINOVICH, Ohio
MARK L. PRYOR, Arkansas              NORM COLEMAN, Minnesota
MARY L. LANDRIEU, Louisiana          TOM COBURN, Oklahoma
BARACK OBAMA, lllinois               PETE V. DOMENICI, New Mexico
CLAIRE McCASKILL, Missouri           JOHN WARNER, Virginia
JON TESTER, Montana                  JOHN E. SUNUNU, New Hampshire
                  Michael L. Alexander, Staff Director
            Deborah P. Parkinson, Professional Staff Member
    Thomas J. Richards, Professional Staff Member, Subcommittee on 
  Oversight of Government Management, the Federal Workforce, and the 
                          District of Columbia
     Brandon L. Milhorn, Minority Staff Director and Chief Counsel
            Amy L. Hall, Minority Professional Staff Member
  David W. Cole, Minority Professional Staff Member, Subcommittee on 
  Oversight of Government Management, the Federal Workforce, and the 
                          District of Columbia
                  Trina Driessnack Tyrer, Chief Clerk


                                                       Calendar No. 402
110th Congress                                                   Report
                                 SENATE
 1st Session                                                    110-188

======================================================================



 
         NATIONAL CAPITAL TRANSPORTATION AMENDMENTS ACT OF 2007

                                _______
                                

                 October 3, 2007.--Ordered to be printed

                                _______
                                

Mr. Lieberman, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 1446]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 1446) to amend the 
National Capital Transportation Act of 1969 to authorize 
additional Federal contributions for maintaining and improving 
the transit system of the Washington Metropolitan Area Transit 
Authority, and for other purposes, having considered the same, 
reports favorably thereon and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................3
 IV. Section by Section Analysis......................................3
  V. Evaluation of Regulatory Impact..................................4
 VI. Congressional Budget Office Cost Estimate........................4
VII. Changes in Existing Law Made by the Bill, as Reported............5

                         I. Purpose and Summary

    S. 1446 amends the National Capital Transportation Act of 
1969\1\ to authorize $1.5 billion over ten fiscal years to the 
Washington Metropolitan Area Transit Authority (WMATA) to 
finance capital and preventive maintenance projects to the 
Washington area metrorail system (the Metro).
---------------------------------------------------------------------------
    \1\P.L. 91-143.
---------------------------------------------------------------------------

              II. Background and Need for the Legislation


                               BACKGROUND

    WMATA, a multi-jurisdictional transit authority established 
by an interstate compact between the District of Columbia, 
Maryland, and Virginia in 1967, began building the Metro system 
in 1969 with federal funding authorized under the National 
Capital Transportation Act of 1969. Subsequently, Congress 
authorized additional funding for Metro construction and 
capital improvements on two separate occasions (1980 and 
1990).\2\
---------------------------------------------------------------------------
    \2\P.L. 96-184 and P.L. 101-551.
---------------------------------------------------------------------------
    WMATA serves the national capital area and the federal 
government. According to a 2006 Government Accountability 
Office report: ``WMATA provides transportation to and from work 
for a substantial portion of the federal workforce, and federal 
employees' use of WMATA's services is encouraged by General 
Services Administration guidelines that instruct federal 
agencies to locate their facilities near mass transit stops 
whenever possible. WMATA also accommodated increased passenger 
loads and extends its operating hours during events related to 
the federal government's presence in Washington, DC, such as 
presidential inaugurations and funerals, and celebrations and 
demonstrations on the National Mall.''\3\ Federal employees 
account for over 40 percent of Metro ridership. In short, the 
functioning of the federal government would be severely 
hampered without the Metro system.
---------------------------------------------------------------------------
    \3\GAO, Mass Transit: Issues Related to Providing Dedicated Funding 
for the Washington Metropolitan Area Transit Authority, May 2006, GAO-
06-516 at 9.
---------------------------------------------------------------------------
    In 2004, a panel established by the Metropolitan Washington 
Council of Governments, the Federal City Council, and the 
Greater Washington Board of Trade to evaluate WMATA's budgetary 
challenges concluded that between FY 2008 and FY 2015 WMATA 
will experience a combined operational and capital funding 
shortfall of $2.36 billion.\4\ The Metro's operating budget is 
derived primarily from state and local government funds and 
passenger revenue. Metro also receives revenue from parking 
fees, advertising and real estate interests. However, WMATA 
cannot sustain current service and invest in the necessary 
capital improvements to keep the system from breaking down on 
that funding alone. Without additional federal funds for 
capital investments, WMATA will be forced to cut back on 
service in the future.
---------------------------------------------------------------------------
    \4\Panel on the Analysis of and Potential for Alternate Dedicated 
Revenue Sources for WMATA, Report of the Metro Funding Panel (January 
2005) at 13.
---------------------------------------------------------------------------
    The panel also expressed concern with WMATA's lack of any 
significant dedicated sources of revenue. Currently, over 95 
percent of WMATA's state and local funding is subject to annual 
appropriations, which are unpredictable.\5\ Without dedicated 
funding, WMATA's ability to fund new station enhancements and 
maintenance is greatly diminished.
---------------------------------------------------------------------------
    \5\Robert Puentes, Washington's Metro: Deficits by Design, 
Brookings Institution (June 2004) at 10.
---------------------------------------------------------------------------
    The funding authorized in S. 1446 is contingent on the 
District of Columbia, Maryland, and Virginia jointly matching 
the federal contribution ($150 million per year) towards 
WMATA's capital projects. The matching funds must come from a 
dedicated funding source. The District of Columbia and Virginia 
have passed dedicated funding legislation, providing a match 
for federal funds. Maryland has committed to pass similar 
legislation and is expected to act during the next legislative 
session.
    The funding is also contingent on WMATA establishing an 
Office of the Inspector General and adding four federal 
representatives, to be appointed by the General Services 
Administration, to the WMATA Board of Directors. WMATA has 
suffered from management problems in the past, and an Inspector 
General will increase transparency and accountability.

                        III. Legislative History

    S. 1446 was introduced by Senator Cardin, Senator Mikulski, 
Senator Warner, and Senator Webb on May 22, 2007, and was 
referred to the Committee on Homeland Security and Governmental 
Affairs.
    On August 1, 2007, the Committee considered S. 1446.
    By a vote of 10-2, the Committee ordered the bill favorably 
reported without amendment to the full Senate.
    Yeas: Lieberman, Levin, Akaka, Carper, Pryor, Landrieu, 
McCaskill, Voinovich, Coleman, Warner. Yeas by proxy: Obama, 
Tester, Collins, Stevens, Domenici. Nays: Coburn, Sununu.

                    IV. Section-by-Section Analysis


Section 1. Short title; findings

Section 2. Federal contribution for capital projects for Washington 
        metropolitan area transit system

    This section authorizes the Secretary of Transportation to 
make grants to the Washington Metropolitan Area Transit 
Authority for the purpose of financing in part the capital and 
preventive maintenance projects included in WMATA's Capital 
Improvement Program. Each Federal grant shall be for 50 percent 
of the net project cost of the project involved and cannot 
include any other federal funds allocated for the operation of 
the mass transit or general operating revenue. It also requires 
that all payments by the local governments matching the federal 
funds are made up from amounts derived from dedicated funding 
sources. There is $1.5 billion authorized over 10 years 
beginning in FY 2009 for this program.

Section 3. Washington Metropolitan Area Transit Authority Inspector 
        General

    This section states that the Washington Metropolitan Area 
Transit Authority must establish the Office of the Inspector 
General, headed by the Inspector General of the Transit 
Authority. The Inspector General shall be appointed by the vote 
of a majority of the Board of Directors of the Transit 
Authority and shall serve a term of 5 years and may be 
reappointed for not more than 2 additional terms. The Inspector 
General shall have the same duties and responsibilities as laid 
out in the Inspector General Act of 1978. The Inspector General 
shall submit semiannual reports to the Transit Authority and 
annual reports to the Governors of Virginia and Maryland, the 
Mayor of the District of Columbia and the Committee on 
Oversight and Government Reform of the U.S. House of 
Representatives and the Committee on Homeland Security and 
Governmental Affairs of the U.S. Senate.

Section 4. Study and report by Comptroller General

    This section requires the Comptroller General to study and 
report to Congress on the use of funds provided under this Act. 
The report shall be submitted no later than three years after 
the enactment of the Act to the Committee on Oversight and 
Government Reform of the House of Representatives and the 
Committee on Homeland Security and Governmental Affairs of the 
Senate.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirement of paragraph 11(b)(1) of rule 
XXVI of the Standing Rules of the Senate the Committee has 
considered the regulatory impact of this bill. CBO states that 
there are no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and no costs on 
State, local, or tribal governments. The legislation contains 
no other regulatory impact.

                   VI. Estimated Cost of Legislation

                                                   August 10, 2007.
Hon. Joseph I. Lieberman,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1446, the National 
Capital Transportation Amendments Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sarah Puro.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

S. 1446--National Capital Transportation Amendments Act of 2007

    Summary: S. 1446 would authorize the appropriation of $1.5 
billion for grants to the Washington Metropolitan Area Transit 
Authority (WMATA) for capital and preventive maintenance 
projects. Assuming appropriation of the amount specified in the 
bill, CBO estimates that implementing S. 1446 would cost $236 
million over the 2010-2012 period and an additional $1.3 
billion after 2012.
    S. 1446 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
The bill would provide funding for WMATA activities, and any 
costs it, the District of Columbia, the state of Maryland, and 
the Commonwealth of Virginia incur would result from complying 
with conditions of federal assistance.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1446 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2008    2009    2010    2011    2012
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...       0       0     150     150     150
Estimated Outlays...............       0       0      38      83     115
------------------------------------------------------------------------

    Basis of estimate: S. 1446 would authorize the Secretary of 
Transportation to make grants to WMATA to cover 50 percent of 
the cost of capital and preventive maintenance projects listed 
in the Capital Improvement Program approved by the transit 
authority's board of directors. For those grants, the bill 
would authorize the appropriation of $1.5 billion to the 
Secretary. Based on information from WMATA about the agency's 
Capital Improvement Program, CBO expects that the authorized 
amount would be appropriated in equal installments over a 10-
year period, beginning in 2010.
    Before receiving the grants, Maryland, Virginia, and the 
District of Columbia would need to amend the WMATA compact to 
add four members to the board of directors and to make changes 
to the operation of the Office of the Inspector General. 
Further, those entities would be required to establish funding 
sources dedicated solely to the transit authority. CBO expects 
that those requirements would delay the award of grants until 
at least 2010.
    Assuming appropriation of the $1.5 billion authorized under 
S. 1446, CBO estimates that implementing the bill would cost 
$236 million over the 2010-2012 period and another $1,264 
million after 2012. That estimate of outlays is based on 
historical spending patterns of grants for similar capital and 
maintenance projects for mass transit systems.
    Intergovernmental and private-sector impact: S. 1446 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. As a condition of receiving $1.5 billion over 
10 years for certain capital and preventive maintenance 
projects, the bill would require WMATA to establish an Office 
of the Inspector General and expand the board of directors. 
Also, as a condition of receiving those grants, the District of 
Columbia, the state of Maryland, and the Commonwealth of 
Virginia would be required to earmark funds to match the 
federal assistance. The bill would restrict the use of federal 
funds to maintenance and upkeep only.
    Previous CBO estimate: On April 27, 2007, CBO transmitted a 
cost estimate for H.R. 401, the National Capital Transportation 
Amendments Act of 2007, as ordered reported by the House 
Committee on Oversight and Government Reform on April 18, 2007. 
The bills are similar in scope and content, and CBO's estimates 
of costs are identical.
    Estimate prepared by: Federal Costs: Sarah Puro; Impact on 
State, Local, and Tribal Governments: Elizabeth Cove; Impact on 
the Private Sector: Jacob Kuipers.
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the following changes in existing 
law made by the bill, as reported, are shown as follows: 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

              NATIONAL CAPITAL TRANSPORTATION ACT OF 1969


   AUTHORIZATION OF ADDITIONAL FEDERAL CONTRIBUTION FOR CAPITAL AND 
                   PREVENTATIVE MAINTENANCE PROJECTS

    Sec. 18. (a) Authorization.--Subject to the succeeding 
provisions of this section, the Secretary of Transportation is 
authorized to make grants to the Transit Authority, in addition 
to the contributions authorized under sections 3, 14, and 17, 
for the purpose of financing in part the capital and 
preventative maintenance projects included in the Capital 
Improvement Program approved by the Board of Directors of the 
Transit Authority.
    (b) Use of Funds.--The Federal grants made pursuant to the 
authorization under this section shall be subject to the 
following limitations and conditions:
          (1) The work for which such Federal grants are 
        authorized shall be subject to the provisions of the 
        Compact (consistent with the amendments to the Compact 
        described in subsection (d)).
          (2) Each such Federal grant shall be for 50 percent 
        of the net project cost of the project involved, and 
        shall be provided in cash from sources other than 
        Federal funds or revenues from the operation of public 
        mass transportation systems. Consistent with the terms 
        of the amendment to the Compact described in subsection 
        (d)(1), any funds so provided shall be solely from 
        undistributed cash surpluses, replacement or 
        depreciation funds or reserves available in cash, or 
        new capital.
    (c) Applicability of Requirements for Mass Transportation 
Capital Projects Receiving Funds Under Federal Transportation 
Law.--Except as specifically provided in this section, the use 
of any amounts appropriated pursuant to the authorization under 
this section shall be subject to the requirements applicable to 
capital projects for which funds are provided under chapter 53 
of title 49, United States Code, expect to the extent that the 
Secretary of Transportation determines that the requirements 
are inconsistent with the purposes of this section.
    (d) Amendments to Compact.--No amounts may be provided to 
the Transit Authority pursuant to the authorization under this 
section until the Transit Authority notifies the Secretary of 
Transportation that each of the following amendments to the 
Compact (and any further amendments which may be required to 
implement such amendments) have taken effect:
          (1) (A) An amendment requiring that all payments by 
        the local signatory governments for the Transit 
        Authority for the purpose of matching any Federal funds 
        appropriated in any given year authorized under 
        subsection (a) for the cost of operating and 
        maintaining the adopted regional system are made from 
        amounts derived from dedicated funding sources.
          (B) For purposes of this paragraph, the term 
        `dedicated funding source' means any source of funding 
        which is earmarked or required under State or local law 
        to be used to match Federal appropriations authorized 
        under this Act for payments to the Transit Authority.
          (2) An amendment establishing the Office of Inspector 
        General of the Transit Authority in accordance with 
        section 3 of the National Capital Transportation 
        Amendments Act of 2007.
          (3) An amendment expanding the Board of Directors of 
        the Transit Authority to include 4 additional Directors 
        appointed by the Administrator of General Services, of 
        whom 2 shall be nonvoting and 2 shall be voting, and 
        requiring one of the voting members so appointed to be 
        a regular passenger and customer of the bus or rail 
        service of the Transit Authority.
    (e) Amount.--There are authorized to be appropriated to the 
Secretary of Transportation for grants under this section an 
aggregate amount not to exceed $1,500,000,000 to be available 
in increments over 10 fiscal years beginning in fiscal year 
2009, or until expended.
    (f) Availability.--Amounts appropriated pursuant to the 
authorization under this section--
          (1) shall remain available until expended; and
          (2) shall be in addition to, and not in lieu of, 
        amounts available to the Transit Authority under 
        chapter 53 of title 49, United States Code, or any 
        other provisions of law.

                                  
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