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[House Report 109-440]
[From the U.S. Government Publishing Office]

109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-440

======================================================================
 
         NATIONAL CAPITAL TRANSPORTATION AMENDMENTS ACT OF 2005

                                _______
                                

 April 26, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Tom Davis of Virginia, from the Committee on Government Reform, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3496]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Government Reform, to whom was referred the 
bill (H.R. 3496) 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, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................     6
Section-by-Section...............................................     7
Explanation of Amendments........................................     9
Committee Consideration..........................................     9
Rollcall Votes...................................................    10
Application of Law to the Legislative Branch.....................    10
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    10
Statement of General Performance Goals and Objectives............    10
Constitutional Authority Statement...............................    10
Federal Advisory Committee Act...................................    10
Unfunded Mandate Statement.......................................    10
Committee Estimate...............................................    10
Budget Authority and Congressional Budget Office Cost Estimate...    11
Changes in Existing Law Made by the Bill as Reported.............    12

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; FINDINGS.

  (a) Short Title.--This Act may be cited as the ``National Capital 
Transportation Amendments Act of 2005''.
  (b) Findings.--Congress finds as follows:
          (1) Metro, the public transit system of the Washington 
        metropolitan area, is essential for the continued and effective 
        performance of the functions of the Federal Government, and for 
        the orderly movement of people during major events and times of 
        regional or national emergency.
          (2) On 3 occasions, Congress has authorized appropriations 
        for the construction and capital improvement needs of the 
        Metrorail system.
          (3) Additional funding is required to protect these previous 
        Federal investments and ensure the continued functionality and 
        viability of the original 103-mile Metrorail system.

SEC. 2. FEDERAL CONTRIBUTION FOR CAPITAL PROJECTS FOR WASHINGTON 
                    METROPOLITAN AREA TRANSIT SYSTEM.

  The National Capital Transportation Act of 1969 (sec. 9-1111.01 et 
seq., D.C. Official Code) is amended by adding at the end the following 
new section:
  ``authorization of additional federal contribution for capital and 
                    preventive 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 preventive 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, 
except 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) An amendment requiring all payments made by the local 
        signatory governments for the Transit Authority and for the 
        cost of operating and maintaining the adopted regional system 
        are made from amounts derived from dedicated funding sources. 
        For purposes of this paragraph, a `dedicated funding source' is 
        any source of funding which is earmarked and required under 
        State or local law to be used for payments to the Transit 
        Authority.
          ``(2) An amendment establishing the Office of the Inspector 
        General of the Transit Authority in accordance with section 3 
        of the National Capital Transportation Amendments Act of 2005.
          ``(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 2007, 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 provision of law.''.

SEC. 3. WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY INSPECTOR 
                    GENERAL.

  (a) Establishment of Office.--
          (1) In general.--The Washington Metropolitan Area Transit 
        Authority (hereafter referred to as the ``Transit Authority'') 
        shall establish in the Transit Authority the Office of the 
        Inspector General (hereafter in this section referred to as the 
        ``Office''), headed by the Inspector General of the Transit 
        Authority (hereafter in this section referred to as the 
        ``Inspector General'').
          (2) Definition.--In paragraph (1), the ``Washington 
        Metropolitan Area Transit Authority'' means the Authority 
        established under Article III of the Washington Metropolitan 
        Area Transit Authority Compact (Public Law 89-774).
  (b) Inspector General.--
          (1) Appointment.--The Inspector General shall be appointed by 
        the vote of a majority of the Board of Directors of the Transit 
        Authority, and shall be appointed without regard to political 
        affiliation and solely on the basis of integrity and 
        demonstrated ability in accounting, auditing, financial 
        analysis, law, management analysis, public administration, or 
        investigations, as well as familiarity or experience with the 
        operation of transit systems.
          (2) Term of service.--The Inspector General shall serve for a 
        term of 5 years, and an individual serving as Inspector General 
        may be reappointed for not more than 2 additional terms.
          (3) Removal.--The Inspector General may be removed from 
        office prior to the expiration of his term only by the 
        unanimous vote of all of the members of the Board of Directors 
        of the Transit Authority, and the Board shall communicate the 
        reasons for any such removal to the Governor of Maryland, the 
        Governor of Virginia, the Mayor of the District of Columbia, 
        the chair of the Committee on Government Reform of the House of 
        Representatives, and the chair of the Committee on Homeland 
        Security and Governmental Affairs of the Senate.
  (c) Duties.--
          (1) Applicability of duties of inspector general of executive 
        branch establishment.--The Inspector General shall carry out 
        the same duties and responsibilities with respect to the 
        Transit Authority as an Inspector General of an establishment 
        carries out with respect to an establishment under section 4 of 
        the Inspector General Act of 1978 (5 U.S.C. App. 4), under the 
        same terms and conditions which apply under such section.
          (2) Conducting annual audit of financial statements.--The 
        Inspector General shall be responsible for conducting the 
        annual audit of the financial accounts of the Transit 
        Authority, either directly or by contract with an independent 
        external auditor selected by the Inspector General.
          (3) Reports.--
                  (A) Semiannual reports to transit authority.--The 
                Inspector General shall prepare and submit semiannual 
                reports summarizing the activities of the Office in the 
                same manner, and in accordance with the same deadlines, 
                terms, and conditions, as an Inspector General of an 
                establishment under section 5 of the Inspector General 
                Act of 1978 (5 U.S.C. App. 5). For purposes of applying 
                section 5 of such Act to the Inspector General, the 
                Board of Directors of the Transit Authority shall be 
                considered the head of the establishment, except that 
                the Inspector General shall transmit to the General 
                Manager of the Transit Authority a copy of any report 
                submitted to the Board pursuant to this paragraph.
                  (B) Annual reports to local signatory governments and 
                congress.--Not later than January 15 of each year, the 
                Inspector General shall prepare and submit a report 
                summarizing the activities of the Office during the 
                previous year, and shall submit such reports to the 
                Governor of Maryland, the Governor of Virginia, the 
                Mayor of the District of Columbia, the chair of the 
                Committee on Government Reform of the House of 
                Representatives, and the chair of the Committee on 
                Homeland Security and Governmental Affairs of the 
                Senate.
          (4) Investigations of complaints of employees and members.--
                  (A) Authority.--The Inspector General may receive and 
                investigate complaints or information from an employee 
                or member of the Transit Authority concerning the 
                possible existence of an activity constituting a 
                violation of law, rules, or regulations, or 
                mismanagement, gross waste of funds, abuse of 
                authority, or a substantial and specific danger to the 
                public health and safety.
                  (B) Nondisclosure.--The Inspector General shall not, 
                after receipt of a complaint or information from an 
                employee or member, disclose the identity of the 
                employee or member without the consent of the employee 
                or member, unless the Inspector General determines such 
                disclosure is unavoidable during the course of the 
                investigation.
                  (C) Prohibiting retaliation.--An employee or member 
                of the Transit Authority who has authority to take, 
                direct others to take, recommend, or approve any 
                personnel action, shall not, with respect to such 
                authority, take or threaten to take any action against 
                any employee or member as a reprisal for making a 
                complaint or disclosing information to the Inspector 
                General, unless the complaint was made or the 
                information disclosed with the knowledge that it was 
                false or with willful disregard for its truth or 
                falsity.
          (5) Independence in carrying out duties.--Neither the Board 
        of Directors of the Transit Authority, the General Manager of 
        the Transit Authority, nor any other member or employee of the 
        Transit Authority may prevent or prohibit the Inspector General 
        from carrying out any of the duties or responsibilities 
        assigned to the Inspector General under this section.
  (d) Powers.--
          (1) In general.--The Inspector General may exercise the same 
        authorities with respect to the Transit Authority as an 
        Inspector General of an establishment may exercise with respect 
        to an establishment under section 6(a) of the Inspector General 
        Act of 1978 (5 U.S.C. App. 6(a)), other than paragraphs (7), 
        (8), and (9) of such section.
          (2) Staff.--
                  (A) Assistant inspector generals and other staff.--
                The Inspector General shall appoint and fix the pay 
                of--
                          (i) an Assistant Inspector General for 
                        Audits, who shall be responsible for 
                        coordinating the activities of the Inspector 
                        General relating to audits;
                          (ii) an Assistant Inspector General for 
                        Investigations, who shall be responsible for 
                        coordinating the activities of the Inspector 
                        General relating to investigations; and
                          (iii) such other personnel as the Inspector 
                        General considers appropriate.
                  (B) Independence in appointing staff.--No individual 
                may carry out any of the duties or responsibilities of 
                the Office unless the individual is appointed by the 
                Inspector General, or provides services procured by the 
                Inspector General, pursuant to this paragraph. Nothing 
                in this subparagraph may be construed to prohibit the 
                Inspector General from entering into a contract or 
                other arrangement for the provision of services under 
                this section.
                  (C) Applicability of transit system personnel 
                rules.--None of the regulations governing the 
                appointment and pay of employees of the Transit System 
                shall apply with respect to the appointment and 
                compensation of the personnel of the Office, except to 
                the extent agreed to by the Inspector General. Nothing 
                in the previous sentence may be construed to affect 
                subparagraphs (A) through (B).
          (3) Equipment and supplies.--The General Manager of the 
        Transit Authority shall provide the Office with appropriate and 
        adequate office space, together with such equipment, supplies, 
        and communications facilities and services as may be necessary 
        for the operation of the Office, and shall provide necessary 
        maintenance services for such office space and the equipment 
        and facilities located therein.
  (e) Transfer of Functions.--To the extent that any office or entity 
in the Transit Authority prior to the appointment of the first 
Inspector General under this section carried out any of the duties and 
responsibilities assigned to the Inspector General under this section, 
the functions of such office or entity shall be transferred to the 
Office upon the appointment of the first Inspector General under this 
section.

SEC. 4. RESTRICTIONS ON DISPOSITION OF CERTAIN PROPERTIES.

  (a) Prohibition on Disposition of Certain Property.--
          (1) In general.--The Washington Metropolitan Area Transit 
        Authority (hereafter in this section referred to as the 
        ``Transit Authority'') may not sell, lease, or otherwise convey 
        or dispose of the property described in paragraph (2) unless 
        the Transit Authority meets each of the following conditions:
                  (A) The Transit Authority has held a separate, 
                additional public hearing after October 20, 2005, 
                regarding the disposition of the property at which 
                members of the general public had the opportunity to 
                comment.
                  (B) The Transit Authority has submitted a report to 
                the Committee on Government Reform of the House of 
                Representatives and the Committee on Homeland Security 
                and Governmental Affairs of the Senate on the costs and 
                benefits associated with the disposition of the 
                property, the impact of the disposition on parking 
                facilities available at the Vienna Metrorail station, 
                and the effect of the disposition on the capacity of 
                the Vienna Metrorail station and the entire Metrorail 
                system.
          (2) Property described.--The property described in this 
        subsection consists of approximately 3.75 acres located in 
        Fairfax County, Virginia, and is contained in all or part of 
        the following parcels on the Fairfax County tax map:
                  (A) Parcel 48--1((1)), 90 Portion.
                  (B) Parcel 48--1((1)), 91B Portion.
                  (C) Parcel 48--1((6)), 7A.
                  (D) Parcel 48--1((6)), 8B.
                  (E) Parcel 48--1((24)), 38A.
  (b) Conditions for Disposition of Certain Property.--
          (1) In general.--The Transit Authority may not sell, lease, 
        or otherwise convey or dispose of the property described in 
        paragraph (2) unless the Transit Authority meets each of the 
        following conditions:
                  (A) The Transit Authority has met with the Mayor and 
                members of the Council of the City of Takoma Park, 
                Maryland, and community representatives to discuss each 
                of the following issues related to the disposition of 
                such property:
                          (i) The movement of buses and other vehicles, 
                        pedestrians, and bicycles to and from the 
                        Takoma Park Metrorail station.
                          (ii) The provision of bus bays, based on 
                        recommendations of the Transit Authority and 
                        the Maryland Transit Administration's Ride-On 
                        program.
                          (iii) The enhancement of public green space 
                        on the property, based on the Central District 
                        Plan for Takoma DC.
                  (B) The Transit Authority will work with residents 
                and elected officials of Takoma Park, Maryland, and the 
                Takoma area of the District of Columbia throughout the 
                planning phase of the development of such property.
                  (C) The Transit Authority has submitted a statement 
                to the Committee on Government Reform of the House of 
                Representatives and the Committee on Homeland Security 
                and Governmental Affairs of the Senate certifying that 
                the Transit Authority has met the conditions described 
                in subparagraphs (A) and (B).
          (2) Property described.--The property described in this 
        paragraph consists of Lots 820, 821, 822, 823, 829, 831, 832, 
        833, 839, 840, 841, 845, 846, 847, 848, 849, 850, and 851 in 
        Square 3352 and Lots 811, 812, and 813 in Square 3353 of the 
        District of Columbia Real Property Assessment Database.
  (c) Restrictions on Development of Certain Properties.--
          (1) Restriction.--The Transit Authority may not sell, lease, 
        or otherwise convey any of the real property described in 
        paragraph (2) other than in accordance with a development plan 
        for the property which meets the following requirements:
                  (A) The plan shall require that any portion of the 
                property used for residential purposes shall be used 
                only for owner-occupied, multi-family dwellings.
                  (B) The plan must provide for the use of a portion of 
                the property for commercial purposes.
                  (C) The plan shall be developed in consultation with 
                appropriate representatives of the local governments 
                and communities for the area in which the property is 
                located.
          (2) Property described.--The property described in this 
        paragraph is any real property of the Transit Authority which 
        is located within one mile of the Largo Town Center Metro Rail 
        Station.
  (d) No Effect on Other Authorities.--Except as specifically provided, 
nothing in this section may be construed to affect any law, rule, or 
regulation governing the development or disposition of real property of 
the Transit Authority.

SEC. 5. STUDY AND REPORT BY COMPTROLLER GENERAL.

  (a) Study.--The Comptroller General shall conduct a study on the use 
of the funds provided under section 18 of the National Capital 
Transportation Act of 1969 (as added by this Act).
  (b) Report.--Not later than 3 years after the date of the enactment 
of this Act, the Comptroller General shall submit a report to the 
Committee on Government Reform of the House of Representatives and the 
Committee on Homeland Security and Governmental Affairs of the Senate 
on the study conducted under subsection (a).

                     Committee Statement and Views

                          PURPOSE AND SUMMARY

    The National Capital Transportation Amendments Act of 2005, 
H.R. 3496, amends the National Capital Transportation Act of 
1969 to authorize the Secretary of Transportation to provide 
additional funding through grants to the Washington 
Metropolitan Area Transit Authority (WMATA) to finance in part 
the capital and preventive maintenance projects included in the 
Capital Improvement Program.
    H.R. 3496 also includes new, additional oversight and 
accountability mechanisms. Specifically, the bill establishes 
within WMATA the Office of Inspector General, adds federal 
members to the WMATA Board of Directors, and requires the 
Comptroller General of the U.S. Government Accountability 
Office to study and report to Congress on the use of funds 
provided under this Act.

                  BACKGROUND AND NEED FOR LEGISLATION

    Metro bus and rail service plays an indispensable role in 
the day-to-day operations of the federal government. Tens of 
thousands of federal employees use the system each day, as do 
equally large numbers of private citizens conducting government 
related business. Metro is the primary means of conveyance for 
those attending events of national significance such as state 
funerals, presidential inaugurations, and issue-driven protests 
or gatherings. Finally, tourists from all over the country use 
Metro to visit sites around the nation's capital. Thus, Metro 
is a national asset in which all Americans have an interest.
    Congress has long acknowledged the national interest in the 
Metro systems, having authorized on three separate occasions 
general revenues to construct the original 103-mile system. 
Federal interest in what became the Metro system began in the 
1950's when Congress recognized the need to ensure federal 
workers and contractors had easy access to government offices 
and workplaces. The agreed upon solution was a rapid rail 
system. In 1960, President Eisenhower signed the National 
Capital Transportation Act, which provided for its development.
    Throughout its existence, the federal nexus to Metro has 
remained strong. This sentiment is perhaps best illustrated by 
the following finding from the National Capital Transportation 
Amendments of 1979 (Stark-Harris), one of the legislative 
vehicles for funding construction of the system.

          Congress finds that an improved transportation system 
        for the National Capital region is essential for the 
        continued and effective performance of the functions of 
        the Government of the United States, for the welfare of 
        the District of Columbia, for the orderly growth and 
        development of the National Capital region, and for the 
        preservation of the beauty and dignity of the Nation's 
        Capital.

    This remains the case today. The task of constructing the 
original system is complete; however, Metro's ridership is 
expected to double within the next twenty years. At the same 
time, the existing infrastructure is aging and will soon need 
to be replaced. Thus, significant investment will be required 
to maintain the viability of the system and keep pace with 
exponentially increasing demand. Without these investments, 
Metro service and reliability will decline precipitously.
    The $1.5 billion authorized by this legislation would 
finance a fifty percent federal share of the cost for needed 
capital and renewal projects. Specifically, these funds would 
allow for the purchase of new rail cars and buses, thereby 
allowing the system to operate at full capacity during peak 
hours. They would also allow for station and facility 
rehabilitation, tunnel repairs and pedestrian station 
connections. In sum, these federal funds would allow for the 
maximization and preservation of the original Metro system.

                           Section-by-Section

Section 1. Short title; findings

    This section would designate the title of the bill as the 
``National Capital Transportation Amendments Act of 2005''. 
This section also includes congressional findings.

Section 2. Federal contribution for capital projects for Washington 
        Metropolitan Area Transit System

    This section would amend the National Capital 
Transportation Act of 1969 by adding the following new section 
18:
    ``Section 18. (a) This subsection would authorize the 
Secretary of Transportation to make grants to the Transit 
Authority for the purpose of financing in part the capital and 
preventive maintenance projects included in the Capital 
Improvement Program approved by the Board of Directors of the 
Transit Authority.
    ``(b) This subsection would subject any grants made to the 
Transit Authority by the Secretary pursuant to this section to 
the Compact, and it would specify that the federal government 
is to pay for half of the net project cost of the relevant 
project (with local funds covering the remaining cost, except 
that local funds cannot include other Federal funds or general 
operating revenue).
    ``(c) This subsection would clarify that any funds 
authorized by this legislation would be subject to certain 
requirements that normally govern transit grants. Such 
requirements are found in Chapter 53 of Title 49, and include 
planning and contracting requirements.
    ``(d) This subsection would require the Transit Authority 
to notify the Secretary of Transportation that all local 
signatory governments to the Compact have identified dedicated 
funding sources to pay the local government share of Metro 
expenses, an Inspector General for Metro has been established, 
and an amendment to expand the Board of Directors of the 
Transit Authority was adopted, before the Secretary is 
authorized to provide funds to the Transit Authority.
    ``(e) This subsection would authorize the transfer of 
certain offices and entities to the Office of the Inspector 
General upon the appointment of the first Inspector General 
under this section.''

Section 3. Washington Metropolitan Area Transit Authority Inspector 
        General

    This section would require WMATA to establish an Office of 
Inspector General, headed by an Inspector General (IG). The 
Inspector General would have to be appointed by the vote of a 
majority of the Board of Directors of the Transit Authority, 
and appointed without regard to political affiliation and 
solely on the basis of integrity and demonstrated ability in 
accounting, auditing, financial analysis, law, management 
analysis, public administration, or investigations, as well as 
familiarity or experience with the operation of transit 
systems. The IG would serve for a term of 5 years; an 
individual serving as Inspector General would not be able to be 
reappointed for more than 2 additional terms. The IG would be 
removable from office prior to the expiration of his term only 
by the unanimous vote of all of the members of the Board of 
Directors of the Transit Authority, and the Board would have to 
communicate the reasons for any such removal to the Governor of 
Maryland, the Governor of Virginia, the Mayor of the District 
of Columbia, the chair of the Committee on Government Reform of 
the House of Representatives, and the chair of the Committee on 
Homeland Security and Governmental Affairs of the Senate.
    The duties of the Inspector General would include: the same 
duties and responsibilities with respect to the Transit 
Authority as an Inspector General of an establishment carries 
out with respect to an establishment under section 4 of the 
Inspector General Act of 1978 (5 U.S.C. App. 4), under the same 
terms and conditions which apply under such section; conducting 
the annual audit of the financial accounts of the Transit 
Authority, either directly or by contract with an independent 
external auditor selected by the Inspector General; semiannual 
reports to the transit authority and annual reports to local 
signatory governments and Congress; and investigations of 
complaints of employees and members. Neither the Board of 
Directors of the Transit Authority, the General Manager of the 
Transit Authority, nor any other member or employee of the 
Transit Authority would be able to prevent or prohibit the 
Inspector General from carrying out any of the duties or 
responsibilities assigned to the Inspector General under this 
section.
    The IG would be authorized to appoint and fix the pay of an 
Assistant Inspector General for Audits (who would be 
responsible for coordinating the activities of the Inspector 
General relating to audits), an Assistant Inspector General for 
Investigations (who would be responsible for coordinating the 
activities of the Inspector General relating to 
investigations), and such other personnel as the Inspector 
General considered appropriate. No individual would be able to 
carry out any of the duties or responsibilities of the Office 
unless the individual was appointed by the Inspector General or 
provided services procured by the Inspector General, pursuant 
to this paragraph. This section would further clarify that the 
personnel of the IG office would not be subject to the 
appointment and pay regulations of the Transit Authority unless 
the IG chose to subject staff to such regulations.
    This section would further specify that the General Manager 
of the Transit Authority shall provide the Office of Inspector 
General with appropriate and adequate office space, together 
with such equipment, supplies, and communications facilities 
and services as may be necessary for the operation of the 
Office, and shall provide necessary maintenance services for 
such office space and the equipment and facilities located 
therein.
    To the extent that any office or entity in the Transit 
Authority prior to the appointment of the first Inspector 
General under this section carried out any of the duties and 
responsibilities assigned to the Inspector General under this 
section, the functions of such office or entity would be 
transferred to the Office upon the appointment of the first 
Inspector General under this section.

Section 4. Restriction on disposition of certain properties

    This section would prohibit the sale or lease of certain 
WMATA property unless WMATA met several conditions identified 
in the legislation.

Section 5. Study and report by Comptroller General

    This section would require the Government Accountability 
Office to conduct a study on the use of the funds authorized 
pursuant to this legislation and to submit a report to Congress 
on such study within three years of the enactment of the 
legislation.

                       Explanation of Amendments

    The provisions of the substitute amendment are explained in 
the descriptive portions of this report.

                        Committee Consideration

    On Friday, February 18, 2005, the Committee on Government 
Reform held a hearing on the Washington Metropolitan Area 
Transit Authority (WMATA). The Committee examined WMATA's 
expressed needs as well as its operational and management 
performance. The Committee heard testimony from Richard A. 
White, Chief Executive Officer, Washington Metropolitan Area 
Transit Authority; Dana Kauffman, Chairman of the Board, 
Washington Metropolitan Area Transit Authority; William Millar, 
President, American Public Transportation Association; Mortimer 
L. Downey, Chairman of the Board, PB Consult; John J. Corbett, 
Jr., Co-founder, Metroriders.org.
    On Thursday, July 28, 2005, the Committee on Government 
Reform held a second hearing on the Washington Metropolitan 
Area Transit Authority. The hearing objective was to examine 
the role of the federal government in helping WMATA address its 
funding challenges and management operations. The Committee 
invited Katherine Siggerud, Director, Physical Infrastructure 
Issues, GAO; Richard White, Chief Executive Officer, Washington 
Metropolitan Area Transit Authority; Dana Kauffman, Chairman of 
the Board, Washington Metropolitan Area Transit Authority; 
William Millar, President, American Public Transportation 
Association; Robert Puentes, Fellow, Metropolitan Policy, 
Brookings Institute; and Pauline Schneider, Partner, Hunton and 
Williams; Member, Federal City Council to testify before the 
Committee.
    On October 20, 2005, the Committee met in open session and 
ordered reported favorably the bill, H.R. 3496, as amended, by 
voice vote, a quorum being present.

                             Rollcall Votes

    No rollcall votes were held.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill authorizes federal funds for the Washington 
Metropolitan Area Transportation Authority and creates an 
Inspector General for the Authority. As such this bill does not 
relate to employment or access to public services and 
accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress to enact the law 
proposed by H.R. 3496. Article I, Section 8, Clause 18 of the 
Constitution of the United States grants the Congress the power 
to enact this law.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) requires a statement whether 
the provisions of the reported include unfunded mandates. In 
compliance with this requirement the Committee has received a 
letter from the Congressional Budget Office included herein.

                           Committee Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 3496. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 3496 from the Director of 
Congressional Budget Office:

H.R. 3496--National Capital Transportation Amendments Act of 2005

    Summary: H.R. 3496 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 H.R. 
3496 would cost $310 million over the 2008-2010 period and 
another $1,190 million after 2010.
    H.R. 3496 contains intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA), but CBO estimates that 
the costs to WMATA would not exceed the threshold established 
in UMRA ($62 million in 2005, adjusted annually for inflation). 
Other costs to WMATA, the District of Columbia, Maryland, and 
Virginia would result from complying with conditions of federal 
assistance. H.R. 3496 contains no new private-sector mandates 
as defined in UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3496 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                               -------------------------------------------------
                                                                  2006      2007      2008      2009      2010
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level.................................         0         0       150       150       150
Estimated Outlays.............................................         0         0        50       100       160
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3496 will be enacted in fiscal year 2006 and that the 
authorized amount will be appropriated in equal installments 
over a 10-year period, beginning in 2008.
    H.R. 3496 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.
    Before receiving the grants, WMATA would need to create an 
Office of Inspector General, add four members to its board of 
directors, and amend the compact among the governments 
supporting WMATA to require those governments to create sources 
of funding dedicated solely to the transit authority. CBO 
estimates that those changes would delay the award of grants 
until 2008.
    Assuming appropriation of the $1.5 billion authorized under 
H.R. 3496, CBO estimates that implementing the bill would cost 
$310 million over the 2008-2010 period and another $1,190 
million after 2010. That estimate of outlays is based on 
historical spending patterns of grants to WMATA.
    Estimated impact on State, local, and tribal governments: 
H.R. 3496 contains intergovernmental mandates as defined in 
UMRA because it would require WMATA to meet several 
requirements before selling or developing certain properties 
that it owns. CBO estimates that complying with the 
requirements themselves would not be costly but that the land 
affected by the provisions is valued at about $15 million. Even 
if the requirements would prevent WMATA from selling the land, 
the cost of the mandates would not exceed the threshold 
established in UMRA ($62 million in 2005, adjusted annually for 
inflation).
    As a condition of receiving $1.5 billion over 10 years for 
certain capital and preventative maintenance projects, the bill 
would require WMATA to create an Office of Inspector General 
and to expand the Board of Directors. Also as a condition of 
receiving those grants, the District of Columbia, Maryland, and 
Virginia would be required to earmark funds to support WMATA 
and to match the federal assistance.
    Estimated impact on the private sector: H.R. 3496 contains 
no new private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal costs: Rachel Milberg; impact 
on State, local, and tribal governments: Sarah Puro; impact on 
the private sector: Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and 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 
                    PREVENTIVE 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 preventive 
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, except 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) An amendment requiring all payments made by the 
        local signatory governments for the Transit Authority 
        and for the cost of operating and maintaining the 
        adopted regional system are made from amounts derived 
        from dedicated funding sources. For purposes of this 
        paragraph, a ``dedicated funding source'' is any source 
        of funding which is earmarked and required under State 
        or local law to be used for payments to the Transit 
        Authority.
          (2) An amendment establishing the Office of the 
        Inspector General of the Transit Authority in 
        accordance with section 3 of the National Capital 
        Transportation Amendments Act of 2005.
          (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 
2007, 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 provision of law.

                                  
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