[DOCID: f:sr188.110]
From the Senate Reports Online via GPO Access
[wais.access.gpo.gov]
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
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
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.
<all>