HILL LEADERS CHALLENGE FUNDING OF BART - SFO
EXTENSION PROJECT

The $1.2 billion project to extend BART to San Francisco International Airport has
encountered a Congressional roadblock, as two Hill leaders publicly caution Congress that the
transit extension may violate a federal policy requiring airport revenues to be used only on
airport projects. Last week, in a letter to the Federal Aviation Administration (FAA), Senator
John McCain (R-Ariz.) claimed that the project agreement between BART and the airport
appeared to violate FAA guidelines which state that airport revenues could only be used for
the transit project in proportion to the airport-related use of the extension. Specifically, he was
concerned that SFO was being asked ``to pay for the entire cost of the on-airport system, even
though not all of the BART passengers will be using the airport.'' Additionally, McCain
expressed concern with a provision of the agreement between BART and the airport which
would allow BART to retain revenues from the planned airport
station, even though the transit agency will not be paying rent. In recent letters to the FAA
and the Federal Transit Administration, Rep. Frank Wolf ( R-Va.), chairman of the House
Subcommittee on Transportation and Related Agencies, raised similar concerns about the
legality of the project.
A representative from BART insists that the SFO extension project is in compliance with
FAA guidelines in this area, because the project would not constitute a diversion of revenue
away from airport projects and the expected $200 million contribution from SFO will be
spent only on the portions of the extension on airport property.
Although BART officials anticipated the agreement would be signed soon after the
60-day Congressional review period ended earlier this week, an immediate resolution to the
issue could be delayed. Senator Richard Shelby (R- Ala.), chairman of the Senate
transportation subcommittee, has asked for more time to study the matter. An FAA
spokesman said the agency was still examining the concerns of McCain and Wolf.

Volume 4, Bulletin 3 -- January 30, 1997