U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

69–010 ★ (Star Print) 

" ! SENATE 110TH CONGRESS

1st Session 

REPORT

2007

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 


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(II) 

COMMITEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

JOSEPH I. LIEBERMAN, Connecticut, Chairman 

CARL LEVIN, Michigan 

DANIEL K. AKAKA, Hawaii 

THOMAS R. CARPER, Delaware 

MARK L. PRYOR, Arkansas 

MARY L. LANDRIEU, Louisiana 

BARACK OBAMA, lllinois 

CLAIRE MCCASKILL, Missouri 

JON TESTER, Montana 

SUSAN M. COLLINS, Maine 

TED STEVENS, Alaska 

GEORGE V. VOINOVICH, Ohio 

NORM COLEMAN, Minnesota 

TOM COBURN, Oklahoma 

PETE V. DOMENICI, New Mexico 

JOHN WARNER, Virginia 

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 


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1P.L. 91–143. 

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). 


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2P.L. 96–184 and P.L. 101–551. 3GAO, Mass Transit: Issues Related to Providing Dedicated Funding for the Washington Metropolitan Area Transit Authority, May 2006, GAO–06–516 at 9. 4Panel on the Analysis of and Potential for Alternate Dedicated Revenue Sources for WMATA, 

Report of the Metro Funding Panel (January 2005) at 13. 5 Robert Puentes, Washington’s Metro: Deficits by Design, Brookings Institution (June 2004) 

at 10. 

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

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. 

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. 

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. 

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. 


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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. 


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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 


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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): 


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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. 


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(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. 

Æ 


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