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112th Congress                                            Rept. 112-384
                        HOUSE OF REPRESENTATIVES
 2nd Session                                                     Part 1

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



 
                   CIVILIAN PROPERTY REALIGNMENT ACT

                                _______
                                

February 1, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Mica, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1734]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 1734) to decrease the deficit by 
realigning, consolidating, selling, disposing, and improving 
the efficiency of Federal buildings and other civilian real 
property, 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
Amendment........................................................     2
Purpose of Legislation...........................................    15
Background and Need for Legislation..............................    16
Summary of Legislation...........................................    18
Legislative History and Consideration............................    25
Hearings.........................................................    25
Committee Votes..................................................    27
Committee Oversight Findings.....................................    31
New Budget Authority and Tax Expenditures........................    31
Performance Goals and Objectives.................................    31
Congressional Budget Office Cost Estimate........................    31
Advisory of Earmarks.............................................    40
Federal Mandate Statement........................................    41
Preemption Clarification.........................................    41
Advisory Committee Statement.....................................    41
Applicability of Legislative Branch..............................    41
Changes in Existing Law made by the Bill, as Reported............    41

                               Amendmnent

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

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Civilian Property Realignment Act'' or 
``CPRA''.

SEC. 2. PURPOSES.

  The purposes of this Act are--
          (1) to consolidate the footprint of Federal buildings and 
        facilities;
          (2) to maximize the utilization rate of Federal buildings and 
        facilities;
          (3) to reduce the reliance on leased space;
          (4) to sell or redevelop high value assets that are 
        underutilized to obtain the highest and best value for the 
        taxpayer and maximize the return to the taxpayer;
          (5) to reduce the operating and maintenance costs of Federal 
        civilian real properties through the realignment of real 
        properties by consolidating, co-locating, and reconfiguring 
        space, and other operational efficiencies;
          (6) to reduce redundancy, overlap, and costs associated with 
        field offices;
          (7) to create incentives for Federal agencies to achieve 
        greater efficiency in their inventories of civilian real 
        property;
          (8) to facilitate and expedite the sale or disposal of 
        unneeded civilian properties; and
          (9) to assist Federal agencies in achieving the Government's 
        sustainability goals by reducing excess space, inventory, and 
        energy consumption, as well as by leveraging new technologies.

SEC. 3. DEFINITIONS.

  In this Act, unless otherwise expressly stated, the following 
definitions apply:
          (1) Federal civilian real property and civilian real 
        property.--
                  (A) Property.--The terms ``Federal civilian real 
                property'' and ``civilian real property'' refer to 
                Federal real property assets, including public 
                buildings as defined in section 3301 of title 40, 
                United States Code, occupied and improved grounds, 
                leased space, or other physical structures under the 
                custody and control of any Federal agency.
                  (B) Further exclusions.--Subparagraph (A) shall not 
                be construed as including any of the following types of 
                property:
                          (i) A base, camp, post, station, yard, 
                        center, homeport facility for any ship, or any 
                        activity under the jurisdiction of the 
                        Department of Defense or Coast Guard.
                          (ii) Properties that are excluded for reasons 
                        of national security by the Director of the 
                        Office of Management and Budget.
                          (iii) Properties that are excepted from the 
                        definition of ``property'' under section 102(9) 
                        of title 40, United States Code.
                          (iv) Indian and Native Eskimo properties 
                        including--
                                  (I) any property within the limits of 
                                any Indian reservation to which the 
                                United States owns title for the 
                                benefit of an Indian tribe; and
                                  (II) any property title which is held 
                                in trust by the United States for the 
                                benefit of any Indian tribe or 
                                individual or held by an Indian tribe 
                                or individual subject to restriction by 
                                the United States against alienation.
                          (v) Properties operated and maintained by the 
                        Tennessee Valley Authority pursuant to the 
                        Tennessee Valley Authority Act of 1933 (16 
                        U.S.C. 831, et seq.).
                          (vi) Postal properties owned by the United 
                        States Postal Service, except that the United 
                        State Postal Service shall submit to the 
                        Commission and the Commission shall consider, 
                        pursuant to section 11, postal properties 
                        suitable for co-location with other Federal 
                        agency field offices.
                          (vii) Properties used in connection with 
                        Federal programs for agricultural, 
                        recreational, and conservation purposes, 
                        including research in connection with the 
                        programs.
                          (viii) Properties used in connection with 
                        river, harbor, flood control, reclamation, or 
                        power projects.
          (2) Federal agency.--The term ``Federal agency'' means an 
        executive department or independent establishment in the 
        executive branch of the Government, and a wholly owned 
        Government corporation.
          (3) Administrator.--The term ``Administrator'' means the 
        Administrator of General Services.
          (4) Commission.--The term ``Commission'' means the Civilian 
        Property Realignment Commission.
          (5) OMB.--The term ``OMB'' means the Office of Management and 
        Budget.
          (6) Field office.--the term ``field office'' means any 
        Federal office that is not the Headquarters office location for 
        the Federal agency.

SEC. 4. COMMISSION.

  (a) Establishment.--There is established an independent commission to 
be known as the Civilian Property Realignment Commission, referred to 
in this Act as the ``Commission''.
  (b) Duties.--The Commission shall carry out the duties as specified 
in this Act.
  (c) Membership.--
          (1) In general.--The Commission shall be composed of a 
        chairman appointed by the President, by and with the advice and 
        consent of the Senate, and 8 members appointed by the 
        President.
          (2) Appointments.--In selecting individuals for appointments 
        to the Commission, the President shall consult with--
                  (A) the Speaker of the House of Representatives 
                concerning the appointment of 2 members;
                  (B) the majority leader of the Senate concerning the 
                appointment of 2 members;
                  (C) the minority leader of the House of 
                Representatives concerning the appointment of 1 member; 
                and
                  (D) the minority leader of the Senate concerning the 
                appointment of 1 member.
          (3) Terms.--The term for each member of the Commission shall 
        be 6 years.
          (4) Vacancies.--Vacancies shall be filled in the same manner 
        as the original appointment.
          (5) Qualifications.--In selecting individuals for appointment 
        to the Commission, the President shall ensure the Commission 
        contains individuals with expertise representative of the 
        following:
                  (A) Commercial real estate and redevelopment.
                  (B) Government management or operations.
                  (C) Community development, including transportation 
                and planning.
                  (D) Historic preservation.

SEC. 5. COMMISSION MEETINGS.

  (a) Open Meetings.--Each meeting of the Commission, other than 
meetings in which classified information is to be discussed, shall be 
open to the public. Any open meeting shall be announced in the Federal 
Register and the Federal website established by the Commission at least 
14 calendar days in advance of a meeting. For all public meetings, the 
Commission shall release an agenda and a listing of materials relevant 
to the topics to be discussed.
  (b) Quorum and Meetings.--Seven Commission members shall constitute a 
quorum for the purposes of conducting business and 3 or more Commission 
members shall constitute a meeting of the Commission.
  (c) Transparency of Information.--All the proceedings, information, 
and deliberations of the Commission shall be open, upon request, to the 
chairperson and the ranking minority party member, and their respective 
subcommittee chairperson and ranking minority party member, of--
          (1) the Committee on Transportation and Infrastructure of the 
        House of Representatives;
          (2) the Committee on Oversight and Government Reform of the 
        House of Representatives;
          (3) the Committee on Homeland Security and Governmental 
        Affairs of the Senate;
          (4) the Committee on Environmental and Public Works of the 
        Senate; and
          (5) the committees on Appropriations of the House of 
        Representatives and the Senate.
  (d) Government Accountability Office.--All proceedings, information, 
and deliberations of the Commission shall be open, upon request, to the 
Comptroller General of the United States.

SEC. 6. COMPENSATION AND TRAVEL EXPENSES.

  (a) Compensation.--
          (1) Rate of pay for members.--Each member, other than the 
        Chairperson, shall be paid at a rate equal to the daily 
        equivalent of the minimum annual rate of basic pay payable for 
        level IV of the Executive Schedule under section 5315 of title 
        5, United States Code, for each day (including travel time) 
        during which the member is engaged in the actual performance of 
        duties vested in the Commission.
          (2) Rate of pay for chairperson.--The chairperson shall be 
        paid for each day referred to in paragraph (1) at a rate equal 
        to the daily equivalent of the minimum annual rate of basic pay 
        payable for level III of the Executive Schedule under section 
        5314, of title 5, United States Code.
  (b) Travel.--Members shall receive travel expenses, including per 
diem in lieu of subsistence, in accordance with sections 5702 and 5703 
of title 5, United States Code.

SEC. 7. EXECUTIVE DIRECTOR.

  (a) Appointment.--The Commission shall appoint an Executive Director 
and may disregard the provisions of title 5, United States Code, 
governing appointments in the competitive service.
  (b) Rate of Pay for Director.--The Executive Director shall be paid 
at the rate of basic pay payable for level IV of the Executive Schedule 
under section 5315 of title 5, United States Code.

SEC. 8. STAFF.

  (a) Additional Personnel.--Subject to subsection (b), the Executive 
Director, with the approval of the Commission, may appoint and fix the 
pay of additional personnel.
  (b) Detail Employees From Other Agencies.--Upon request of the 
Executive Director, the head of any Federal agency may detail any of 
the personnel of that agency to the Commission to assist the Commission 
in carrying out its duties under this Act.
  (c) Qualifications.--Appointments shall be made with consideration of 
a balance of expertise consistent with the qualifications of 
representatives described in section 4(c)(5).

SEC. 9. CONTRACTING AUTHORITY.

  (a) Experts and Consultants.--The Commission may procure by contract, 
to the extent funds are available, the temporary or intermittent 
services of experts and consultants pursuant to section 3109 of title 
5, United States Code.
  (b) Space.--The Administrator, in consultation with the Commission, 
shall identify suitable excess space within the Federal space inventory 
to house the operations of the Commission. If no such space is 
available, the Commission may, notwithstanding section 20, lease space 
to the extent funds are available.
  (c) Personal Property.--The Commission may acquire personal property 
to the extent funds are available.
  (d) Receipt and Sale of Property.--The Commission may take custody, 
control, and administrative jurisdiction over Federal property pursuant 
to section 12(b) and is authorized to sell such property for no less 
than fair market value.
  (e) Use of Small Businesses.--In exercising its authorities under 
this section and section 12, the Commission shall use, to the greatest 
extent practicable, small businesses as defined by section 3 of the 
Small Business Act (15 U.S.C. 632).

SEC. 10. TERMINATION.

  The Commission shall cease operations and terminate 6 years from the 
date of enactment of this Act.

SEC. 11. DEVELOPMENT OF RECOMMENDATIONS TO THE COMMISSION.

  (a) Submissions of Agency Information and Recommendations.--Not later 
than 120 days after the date of enactment of this Act and 120 days 
after the beginning of each fiscal year thereafter, the head of each 
Federal agency shall submit to the Administrator and the Director of 
the Office of Management and Budget the following:
          (1) Current data.--Current data of all Federal civilian real 
        properties owned, leased or controlled by the respective 
        agency, including all relevant information prescribed by the 
        Administrator and the Director of the Office of Management and 
        Budget, including data related to the age and condition of the 
        property, operating costs, history of capital expenditures, 
        sustainability metrics, number of Federal employees and 
        functions housed in the respective property, square footage 
        (including gross, rentable, and usable).
          (2) Agency recommendations.--Recommendations which shall 
        include the following:
                  (A) Federal civilian properties that can be sold for 
                proceeds and otherwise disposed of, transferred, 
                exchanged, consolidated, co-located, reconfigured, or 
                redeveloped, so as to reduce the civilian real property 
                inventory, reduce the operating costs of the 
                Government, and create the highest value and return for 
                the taxpayer.
                  (B) Operational efficiencies that the Government can 
                realize in its operation and maintenance of Federal 
                civilian real properties.
  (b) Standards and Criteria.--Not later than 60 days after the date 
specified in subsection (a), the Director of OMB, in consultation with 
the Administrator, shall review agency recommendations submitted 
pursuant to subsection (a), and develop consistent standards and 
criteria against which agency recommendations will be reviewed. The 
Director of OMB and the Administrator shall develop recommendations to 
the Commission based on those standards and criteria. In developing the 
standards and criteria, the Director of OMB, in consultation with the 
Administrator, shall incorporate the following:
          (1) The extent to which the Federal building or facility 
        could be sold, redeveloped, or otherwise used to produce the 
        highest and best value and return for the taxpayer.
          (2) The extent to which the operating and maintenance costs 
        are reduced through consolidating, co-locating, and 
        reconfiguring space, and through realizing other operational 
        efficiencies.
          (3) The extent to which the utilization rate is being 
        maximized and is consistent with non-governmental industry 
        standards for the given function or operation.
          (4) The extent and timing of potential costs and savings, 
        including the number of years, beginning with the date of 
        completion of the proposed recommendation.
          (5) The extent to which reliance on leasing for long-term 
        space needs is reduced.
          (6) The extent to which a Federal building or facility aligns 
        with the current mission of the Federal agency.
          (7) The extent to which there are opportunities to 
        consolidate similar operations across multiple agencies or 
        within agencies.
          (8) The economic impact on existing communities in the 
        vicinity of the Federal building or facility.
          (9) The extent to which energy consumption is reduced.
  (c) Special Rule for Utilization Rates.--Standards developed by the 
Director of OMB must incorporate and apply clear standard utilization 
rates consistent throughout each category of space and with 
nongovernment space utilization rates. To the extent utilization rates 
are exceeded by a given agency, the Director shall recommend 
realignment, co-location, consolidation, or other type of action to 
improve space utilization.
  (d) Submission to the Commission.--
          (1) In general.--The standards, criteria, and recommendations 
        developed pursuant to subsection (b) shall be submitted to the 
        Commission with all supporting information, data, analyses, and 
        documentation.
          (2) Publication.--The standards, criteria, and 
        recommendations shall be published in the Federal Register and 
        transmitted to the committees designated in section 5(c) and to 
        the Comptroller General of the United States.
          (3) Access to information.--The Commission shall also have 
        access to all information pertaining to the recommendations, 
        including supporting information, data, analyses, and 
        documentation submitted pursuant to subsection (a). Upon 
        request, Federal agencies shall provide, the Commission any 
        additional information pertaining to its properties.

SEC. 12. COMMISSION DUTIES.

  (a) Identification of Property Reduction Opportunities.--The 
Commission shall identify opportunities for the Government to reduce 
significantly its inventory of civilian real property and reduce costs 
to the Government.
  (b) Identification of High Value Assets.--
          (1) Identification of certain properties.--Not later than 180 
        days after Commission members are appointed pursuant to section 
        4, the Commission shall identify not less than 5 Federal 
        properties that are not on the list of surplus or excess as of 
        such date with a total fair market value of not less than 
        $500,000,000 to be sold and transmit the list to the President 
        and Congress as Commission recommendations and subject to the 
        approval process described in sections 13 and 14.
          (2) Leaseback restrictions.--None of the existing 
        improvements on properties sold under this subsection may be 
        leased back to the Federal Government.
          (3) Information and data.--In order to meet the goal 
        established under paragraph (1), Federal agencies shall 
        provide, upon receipt, any and all information and data 
        regarding its properties to the Commission. The Commission 
        shall notify the committees listed under section 5(c) of any 
        failure by any agency to comply with a request of the 
        Commission.
          (4) Transfer.--Not later than 60 days after approval of the 
        Commission recommendations pursuant to paragraph (1), Federal 
        agencies with custody, control, or administrative jurisdiction 
        over the identified properties shall transfer custody, control, 
        and administrative jurisdiction to the Commission.
          (5) Sale.--Not later than 120 days after approval of 
        Commission recommendations pursuant to paragraph (1) and 
        notwithstanding any other provision of law (except as provided 
        in section 18), the Commission shall sell the properties 
        described in paragraph (1) at fair market value at highest and 
        best use.
          (6) Proceeds.--The proceeds shall be distributed in 
        accordance with section 17.
  (c) Analysis of Inventory.--The Commission shall perform an 
independent analysis of the inventory of Federal civilian real property 
and the recommendations submitted pursuant to section 11. The 
Commission shall not be bound or limited by the recommendations 
submitted pursuant to section 11. If, in the opinion of the Commission, 
an agency fails to provide needed information, data or adequate 
recommendations that meet the standards and criteria, the Commission 
shall develop such recommendations as it considers appropriate based on 
existing data contained in the Federal Real Property Profile or other 
relevant information.
  (d) Receipt of Information and Proposals.--Notwithstanding any other 
provision of law, the Commission may receive and consider proposals, 
information, and other data submitted by State and local officials and 
the private sector. Such information shall be made publically 
available.
  (e) Accounting System.--Not later than 120 days after the date of 
enactment of this Act, the Commission shall identify or develop and 
implement a system of accounting to be used to independently evaluate 
the costs of and returns on the recommendations. Such accounting system 
shall be applied in developing the Commission's recommendations and 
determining the highest return to the taxpayer. In applying the 
accounting system, the Commission shall set a standard performance 
period.
  (f) Public Hearing.--The Commission shall conduct public hearings. 
All testimony before the Commission at a public hearing under this 
paragraph shall be presented under oath.
  (g) Reporting of Information and Recommendations.--
          (1) In general.--Not later than 120 days after the receipt of 
        recommendations pursuant to section 11, and biannually 
        thereafter, the Commission shall, at a minimum, transmit to the 
        President, and publicly post on a Federal website maintained by 
        the Commission a report containing the Commission's findings, 
        conclusions, and recommendations for the consolidation, 
        exchange, co-location, reconfiguration, lease reductions, sale, 
        and redevelopment of Federal civilian real properties and for 
        other operational efficiencies that can be realized in the 
        Government's operation and maintenance of such properties.
          (2) Consensus in majority.--The Commission shall seek to 
        develop consensus recommendations, but if a consensus cannot be 
        obtained, the Commission may include in its report 
        recommendations that are supported by a majority of the 
        Commission.
  (h) Federal Website.--The Commission shall establish and maintain a 
Federal website for the purposes of making relevant information 
publically available.
  (i) Review by GAO.--The Comptroller General of the United States 
shall transmit to the Congress and to the Commission a report 
containing a detailed analysis of the recommendations and selection 
process.

SEC. 13. REVIEW BY THE PRESIDENT.

  (a) Review of Recommendations.--Upon receipt of the Commission's 
recommendations, the President shall conduct a review of such 
recommendations.
  (b) Report to Commission and Congress.--Not later than 30 days after 
receipt of the Commission's recommendations, the President shall 
transmit to the Commission and Congress a report that sets forth the 
President's approval or disapproval of the Commission's 
recommendations.
  (c) Approval or Disapproval.--If the President--
          (1) approves of the Commission's recommendations, the 
        President shall transmit a copy of the recommendations to 
        Congress, together with a certification of such approval;
          (2) disapproves of the Commission's recommendations, in whole 
        or in part, the President shall also transmit to the Commission 
        and Congress the reasons for such disapproval. The Commission 
        shall then transmit to the President, not later than 30 days 
        following the disapproval, a revised list of recommendations;
          (3) approves all of the revised recommendations of the 
        Commission, the President shall transmit a copy of such revised 
        recommendations to Congress, together with a certification of 
        such approval; or
          (4) does not transmit to the Congress an approval and 
        certification described in paragraphs (1) or (3) within 30 days 
        of receipt of the Commission's recommendations or revised 
        recommendations, as the case may be, the process shall 
        terminate until the following year.

SEC. 14. CONGRESSIONAL CONSIDERATION OF THE RECOMMENDATIONS.

  (a) Resolution of Disapproval.--Not later than 45 days after the date 
of the President's transmission to Congress of the approved 
recommendations pursuant to section 13, Congress may enact a joint 
resolution as described in subsection (c) to disapprove the Commission 
recommendations.
  (b) Computation of Time Period.--For the purposes of this section, 
the days on which either House of Congress is not in session because of 
adjournment of more than three days to a day certain shall be excluded 
in the computation of the period of time.
  (c) Terms of the Resolution.--For purposes of this section, the term 
``joint resolution'' means only a joint resolution which is introduced 
within the 10-day period beginning on the date on which the President 
transmits the recommendations to Congress under section 13, and--
          (1) which does not have a preamble;
          (2) the matter after the resolving clause of which is as 
        follows: ``That Congress disapproves the recommendations of the 
        Civilian Property Realignment Commission as submitted by the 
        President on _________'', the blank space being filled in with 
        the appropriate date; and
          (3) the title of which is as follows: ``Joint resolution 
        disapproving the recommendations of the Civilian Property 
        Realignment Commission''.
  (d) Referral.--A resolution described in subsection (c) that is 
introduced in the House of Representatives shall be referred to the 
Committee on Transportation and Infrastructure in the House of 
Representatives. A resolution described in subsection (c) introduced in 
the Senate shall be referred to the Committee on the Environment and 
Public Works in the Senate.
  (e) Discharge.--If the committee to which a resolution described in 
subsection (c) is referred has not reported such a resolution (or an 
identical resolution) by the end of the 20-day period beginning on the 
date on which the President transmits the report to the Congress under 
section 13, such committee shall be, at the end of such period, 
discharged from further consideration of such resolution, and such 
resolution shall be placed on the appropriate calendar of the House 
involved.
  (f) Consideration.--
          (1) In general.--On or after the third day after the date on 
        which the committee to which such resolution is referred has 
        reported, or has been discharged (under subsection (e)) from 
        further consideration of, such a resolution, it is in order 
        (even though a previous motion to the same effect has been 
        disagreed to) for any Member of the respective House to move to 
        proceed to the consideration of the resolution. A member may 
        make the motion only on the date after the calendar day on 
        which the Member announces to the House concerned the Member's 
        intention to make the motion, except that, in the case of the 
        House of Representatives, the motion may be made without such 
        prior announcement if the motion is made by direction of the 
        committee to which the resolution was referred. The motion is 
        highly privileged in the House of Representatives and is 
        privileged in the Senate and is not debatable. The motion is 
        not subject to amendment, or to a motion to postpone, or to a 
        motion to proceed to the consideration of other business. A 
        motion to reconsider the vote by which the motion is agreed to 
        or disagreed to shall not be in order. If a motion to proceed 
        to consideration of the joint resolution is agreed to, the 
        respective House shall immediately proceed to the consideration 
        of the joint resolution without intervening motion, order, or 
        other business, and the resolution shall remain the unfinished 
        business of the respective House until disposed of.
          (2) Debate.--Debate on the resolution and on all debatable 
        motions and appeals in connection therewith, shall be limited 
        to not more than 2 hours, which shall be divided equally 
        between those favoring and those opposing the resolution. An 
        amendment to the resolution is not in order. A motion further 
        to limit debate is in order and not debatable. A motion to 
        postpone, or a motion to proceed to the consideration of other 
        business, or a motion to recommit the resolution is not in 
        order. A motion to reconsider the vote by which the resolution 
        is agreed to or disagreed is not in order.
          (3) Vote.--Immediately following the conclusion of the debate 
        on a resolution described in subsection (c) and a single quorum 
        call at the conclusion of the debate if requested in accordance 
        with the rules of the appropriate House, the vote on final 
        passage of the resolution shall occur.
          (4) Appeals of decisions of the chair.--Appeals of the 
        decisions of the Chair relating to the application of the rules 
        of the Senate or the House of Representatives, as the case may 
        be, to the procedure relating to a resolution described in 
        subsection (c) shall be decided without debate.
  (g) Consideration by Other House.--
          (1) In general.--If, before the passage by one House of a 
        resolution of that House described in subsection (c), that 
        House received from the other House a resolution described in 
        subsection (c), then the following procedures shall apply:
                  (A) No committee referral.--The resolution of the 
                other House shall not be referred to a committee and 
                may not be considered in the House receiving it except 
                in the case of final passage as provided in 
                subparagraph (B).
                  (B) Resolution procedure.--With respect to a 
                resolution described in subsection (c) of the House 
                receiving the resolution the procedure in that House 
                shall be the same as if no resolution had been received 
                from the other House, but the vote on final passage 
                shall be on the resolution of the other House.
          (2) No consideration.--Upon disposition of the resolution 
        received from the other House, it shall no longer be in order 
        to consider the resolution that originated in the receiving 
        House.
  (h) Rules of the Senate and House.--This section is enacted by 
Congress--
          (1) as an exercise of the rulemaking power of the Senate and 
        House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a resolution described in this 
        section, and it supersedes other rules only to the extent that 
        it is inconsistent with such rules; and
          (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.
  (i) Failure to Pass Resolution of Disapproval.--If Congress fails to 
pass such a joint resolution within 45 calendar days after the date of 
the President's transmission to Congress of the Commission's 
recommendations, the recommendations immediately gain legal force and 
shall be in effect and Federal agencies shall implement and carry out 
all of the Commission's recommendations pursuant to section 15.

SEC. 15. IMPLEMENTATION OF COMMISSION RECOMMENDATIONS.

  (a) Carrying Out Recommendations.--Upon the date specified in section 
14(i), Federal agencies shall immediately begin preparation to carry 
out the Commission's recommendations and shall initiate all activities 
no later than 2 years after the date on which the President transmits 
the recommendations to Congress. Federal agencies shall complete all 
recommended actions no later than the end of the 6-year period 
beginning on the date on which the President transmits the Commission's 
recommendations to Congress. All actions shall be economically 
beneficial and be cost neutral or otherwise favorable to the 
Government. For actions that will take longer than the 6-year period 
due to extenuating circumstances, each Federal agency shall notify the 
President and Congress as soon as the extenuating circumstance presents 
itself with an estimated time to complete the relevant action.
  (b) Actions of Federal Agencies.--In taking actions related to any 
Federal building or facility under this Act, Federal agencies may, 
pursuant to subsection (c), take all such necessary and proper actions, 
including--
          (1) acquiring land, constructing replacement facilities, 
        performing such other activities, and conducting advance 
        planning and design as may be required to transfer functions 
        from a Federal asset or property to another Federal civilian 
        property;
          (2) providing outplacement assistance to civilian employees 
        employed by any Federal agency at a Federal civilian property 
        impacted by such actions; and
          (3) reimbursing other Federal agencies for actions performed 
        at the request of the Commission.
  (c) Necessary and Proper Actions.--When acting on a recommendation of 
the Commission, a Federal agency shall continue to act within their 
existing legal authorities, whether such authority has been delegated 
by the Administrator, or must work in partnership with the 
Administrator to carry out such actions. The Administrator may take 
such necessary and proper actions, including the sale, conveyance, or 
exchange of civilian real property, as required to implement the 
Commission recommendations in the time period required under subsection 
(a). The Administrator shall enter into and use commission-based 
contracts for real estate services to assist in carrying out property 
transactions required by the Commission's recommendations.
  (d) Discretion of Commission Regarding Transactions.--For any 
transaction identified, recommended, or commenced as a result of this 
Act, any otherwise required legal priority given to, or requirement to 
enter into, a transaction to convey a Federal civilian real property 
for less than fair market value, for no consideration at all, or in a 
transaction that mandates the exclusion of other market participants, 
shall be at the discretion of the Commission.

SEC. 16. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There is authorized a one-time appropriation to 
carry out this Act in the following amounts:
          (1) $20,000,000 for salaries and expenses of the Commission.
          (2) $62,000,000 to be deposited into the Asset Proceeds and 
        Space Management Fund for activities related to the 
        implementation of the Commission recommendations.
  (b) Federal Buildings Fund.--There is authorized to be appropriated 
from the Federal Buildings Fund established under section 592 of title 
40, United States Code, for construction and acquisition activities $0 
for fiscal year 2012.

SEC. 17. FUNDING.

  (a) Creation of Salaries and Expenses Account.--There is hereby 
established on the books of the Treasury an account to be known as the 
``Civilian Property Realignment Commission--Salaries and Expenses'' 
account.
          (1) Necessary payments.--There shall be deposited into the 
        account such amounts, as are provided in appropriations Acts, 
        for those necessary payments for salaries and expenses to 
        accomplish the administrative needs of the Commission.
          (2) No appropriations.--If no amounts are appropriated for 
        the salaries and expenses of the Commission for a particular 
        fiscal year, the Director of the Office of Management and 
        Budget may support the Commission's activities under this Act 
        during such year if the Director approves, in consultation with 
        the Administrator, a transfer to the Commission of amounts from 
        the ``Civilian Property Realignment Commission--Asset Proceeds 
        and Space Management Fund'' within the Federal Buildings Fund 
        established under section 592 of title 40, United States Code, 
        subject to subsection (b)(3) and (4) of this section.
  (b) Creation of Asset Proceeds and Space Management Fund.--There is 
hereby established within the Federal Buildings Fund established under 
section 592 of title 40, United States Code, an account to be known as 
the ``Civilian Property Realignment Commission--Asset Proceeds and 
Space Management Fund'' which shall be used solely for the purposes of 
carrying out actions pursuant to the Commission recommendations 
approved under section 14. Notwithstanding section 3307 of title 40, 
United States Code, the following amounts shall be deposited into the 
account and are hereby appropriated and shall remain available until 
expended for the following specified purposes:
          (1) Such amounts as are provided in appropriations Acts, to 
        remain available until expended, for the consolidation, co-
        location, exchange, redevelopment, re-configuration of space 
        and other actions recommended by the Commission for Federal 
        agencies.
          (2) Gross proceeds received from the proceeds of any civilian 
        real property action taken pursuant to a recommendation of the 
        Commission under section 15. The Commission, in consultation 
        with the Administrator, may transfer from the gross proceeds to 
        a Federal agency, only amounts necessary to cover costs 
        directly associated with sales transactions pursuant to 
        implementing the recommendations pursuant to section 15.
          (3) Net proceeds (which are gross proceeds received from the 
        sale of any civilian real property pursuant to a recommendation 
        of the Commission, less the amounts transferred from this 
        account under subsection (b)(2)), shall be divided between the 
        General Fund of the Treasury and the Asset Proceeds and Space 
        Management Fund within the Federal Buildings Fund. On an annual 
        basis, the Director of the Office of Management and Budget, 
        shall determine how the net proceeds shall be distributed, 
        through transfer, between the General Fund and the Asset 
        Proceeds and Space Management Fund, except that the General 
        Fund shall receive--
                  (A) 100 percent of all net proceeds in a fiscal year 
                until the total amount of net proceeds in that fiscal 
                year exceeds $50,000,000; and
                  (B) at least 60 percent of the net proceeds 
                thereafter in that fiscal year.
          (4) The Commission, in consultation with the Administrator, 
        may transfer from the net proceeds deposited into the Space 
        Management Fund pursuant to paragraph (3) to a Federal agency, 
        amounts necessary to cover costs associated with implementing 
        the recommendations pursuant to section 15 not necessary for 
        the purposes of sale transactions pursuant to paragraph (2) of 
        this subsection. In support of its duties, the Commission, in 
        consultation with the Administrator, may transfer from the net 
        proceeds of the Space Management Fund to a Federal agency, 
        amounts--
                  (A) to cover the necessary costs associated with--
                          (i) consolidation, co-location, 
                        redevelopment, and reconfiguration actions; and
                          (ii) other actions taken to otherwise realize 
                        operational efficiencies, including such 
                        actions as environmental restoration; and
                  (B) for outplacement assistance to Federal employees 
                who work at a Federal property that is affected by 
                actions taken under this section, and whose employment 
                would be terminated as a result of such disposal, 
                consolidation, or other realignment.

SEC. 18. DISPOSAL OF REAL PROPERTIES.

  (a) In General.--Notwithstanding any other provision of law, any 
recommendation or commencement of a disposal or realignment of civilian 
real property shall not be subject to--
          (1) section 545(b)(8) of title 40, United States Code;
          (2) sections 550, 554, and 553 of title 40, United States 
        Code;
          (3) section 501 of the McKinney-Vento Homeless Assistance Act 
        (42 U.S.C. 11411);
          (4) sections 1 through 3 of the Act of May 19, 1948 (Chap. 
        310; 62 Stat. 240; 16 U.S.C. 667b-667d);
          (5) section 47151 of title 49, United States Code;
          (6) sections 107 and 317 of title 23, United States Code;
          (7) section 1304(b) of title 40, United States Code;
          (8) section 13(d) of the Surplus Property Act of 1944 (50 
        U.S.C. App. 1622(d)); and
          (9) any other provision of law authorizing the conveyance of 
        real property owned by the Government for no consideration.
  (b) Environmental Considerations.--
          (1) NEPA application.--The provisions of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall 
        not apply to the actions of the President, the Commission, or 
        any Federal agency, in carrying out any of the Commission's 
        recommendations except--
                  (A) during the process of property disposal; and
                  (B) during the process of relocating functions from a 
                property being disposed of or realigned to another 
                property after the receiving property has been selected 
                but before the functions are relocated.
          (2) NEPA exceptions.--In applying the provisions of the 
        National Environmental Policy Act of 1969 to the processes 
        referred to in subsection (b)(1), the agencies do not have to 
        consider--
                  (A) the need for closing or realigning the property 
                which has been recommended for closure or realignment 
                by the Commission;
                  (B) the need for transferring functions to another 
                Federal civilian property; or
                  (C) any alternative path, not associated with an 
                environmental choice, to those recommended or selected.
          (3) Civil action.--A civil action for judicial review, with 
        respect to any requirement of the National Environmental Policy 
        Act of 1969 to the extent such Act is applicable under 
        subsection (b)(2), of any Act or failure to act by a Federal 
        agency during the closing, realigning, or relocating of 
        functions referred to in subsection (b)(2), may not be brought 
        more than 60 days after the dates of such act or failure to 
        act.
          (4) Disposal of realigned property.--Federal agencies may 
        dispose or realign property without regard to any provision of 
        law described in subsection (a), restricting the use of funds 
        for disposing or realigning Federal civilian property included 
        in any appropriations or authorization Act.
          (5) Transfer of real property.--
                  (A) In general.--When implementing the recommended 
                actions pursuant to section 15 for properties that have 
                been identified in the Commission's recommendations and 
                in compliance with the Comprehensive Environmental 
                Response, Compensation, and Liability Act of 1980 (42 
                U.S.C. 9601 et seq), including section 120(h) thereof 
                (42 U.S.C. 9620(h)), Federal agencies may enter into an 
                agreement to transfer by deed real property with any 
                person.
                  (B) Additional terms.--The head of the disposing 
                agency may require any additional terms and conditions 
                in connection with an agreement authorized by 
                subparagraph (A) as the head of the disposing agency 
                considers appropriate to protect the interests of the 
                United States. Such additional terms and conditions 
                shall not affect or diminish any rights or obligations 
                of the federal agencies under CERCLA section 120(h) 
                (including, without limitation, the requirements CERCLA 
                section 120(h)(3)(A) and CERCLA section 
                120(h)(3)(C)(iv)).
          (6) Information disclosure.--As part of an agreement pursuant 
        to this Act, the agency shall disclose to the person to whom 
        the property or facilities will be transferred any information 
        of the Federal agency regarding the environmental restoration, 
        waste management, and environmental compliance activities 
        described in this Act that relate to the property or 
        facilities. The agency shall provide such information before 
        entering into the agreement.
  (c) Construction of Certain Acts.--Nothing in this section shall be 
construed to modify, alter, or amend the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
seq.) or the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).

SEC. 19. CONGRESSIONAL APPROVAL OF PROPOSED PROJECTS.

  Section 3307(b) of title 40, United States Code is amended--
          (1) by striking ``and'' at the end of paragraph (6);
          (2) by striking the period at the end of paragraph (7) and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(8) a statement of how the proposed project is consistent 
        with section 11(b) of the Civilian Property Realignment Act.''.

SEC. 20. LIMITATION OF CERTAIN LEASING AUTHORITIES.

  (a) Limitation on Certain Leasing Authorities.--Chapter 33 of title 
40, United States Code, is amended by adding at the end the following:

``Sec. 3317. Limitation on leasing authority of other agencies

  ``(a) In General.--Notwithstanding any other provision of law, no 
executive agency may lease space for the purposes of a public building 
as defined under section 3301, except as provided under section 585, 
and the provisions in this chapter.
  ``(b) Public Building.--For the purposes of this section, the term 
`public building' shall include leased space.
  ``(c) Further Exclusions.--This section shall not apply to--
          ``(1) properties that are excluded for reasons of national 
        security by the President; and
          ``(2) properties of the Department of Veterans Affairs.
  ``(d) Construction.--Nothing in this section shall be construed as 
creating new authority for executive agencies to enter into leases or 
limit the authority of the Administration under section 3314.''.
  (b) Small Businesses.--When using commercial leasing services, the 
Administrator shall adhere to the requirements of the Small Business 
Act (15 U.S.C. et seq.).
  (c) Clerical Amendment.--The analysis for such chapter is amended by 
adding at the end:

``3317. Limitation on leasing authority of other agencies.''.

SEC. 21. IMPLEMENTATION REVIEW BY GAO.

  Upon the date specified in section 14(i), the Comptroller General of 
the United States at least annually shall monitor, review the 
implementation activities of Federal agencies pursuant to section 15, 
and report to Congress any findings and recommendations.

SEC. 22. REALIGNMENT OF REAL PROPERTY OWNED OR MANAGED BY THE BUREAU OF 
                    OVERSEAS BUILDING OPERATIONS.

  (a) List of Assets.--On an annual basis, the Commission shall 
identify and create a list of assets located outside of the United 
States and its territories that are owned or managed by the Department 
of State's Bureau of Overseas Building Operations that may--
          (1) be sold for proceeds so as to reduce the civilian real 
        property inventory and operating costs of the Federal 
        Government; or
          (2) be otherwise disposed of, transferred, consolidated, co-
        located, or reconfigured so as to reduce the operating costs of 
        the Federal Government.
  (b) List to Secretary of State.--The Commission shall provide this 
list created pursuant to subsection (a) to the Secretary of State.
  (c) Review and Report.--Not later than 90 calendar days after the 
receipt of the list created pursuant to subsection (b), the Department 
of State shall review this list and send a report to the Commission. 
The report shall include the conclusions of this review by the 
Department of State.
  (d) Recommendations of Certain Civilian Real Property Assets.--
Consistent with section 12, the Commission may only make 
recommendations involving civilian real property assets that are 
located outside of the United States and its territories and owned or 
managed by the Department of State's Bureau of Overseas Building 
Operations if the assets are on the list provided to the Department of 
State pursuant to this section and the Department of State has 
submitted a report on the list to the Commission pursuant to subsection 
(c).
  (e) Removal of Certain Civilian Real Property Transaction Assets.--
Consistent with section 12, not later than 20 calendar days after the 
submission of the Commission's report to the President, the Secretary 
of State may remove any transaction that involves a civilian real 
property asset that is located outside of the United States and its 
territories and owned or managed by the Department of State's Bureau of 
Overseas Building Operations from the Commission recommendations or 
list of recommendations made pursuant to section 12.
  (f) Appeal by Secretary of State.--Nothing in this section shall 
restrict the ability of the Secretary of State to appeal to the 
Director of OMB or Commission for funding by the Commission's Asset 
Proceeds and Space Management Fund to support the cost of implementing 
a recommendation.
  (g) Proceeds.--For the purposes of this Act, proceeds from the 
disposal of assets located outside of the United States and its 
territories that are owned or managed by the Department of State's 
Bureau of Overseas Building Operations as identified by the Commission 
and disposed of pursuant to this Act shall be deposited into the Asset 
Proceeds and Space Management Fund. Proceeds from the disposal of 
assets by the Department of State that are not disposed of pursuant to 
this Act shall be retained by the Department of State.

SEC. 23. NATIONAL WOMEN'S HISTORY MUSEUM.

  (a) Definitions.--In this section, the following definitions apply:
          (1) Administrator.--The term ``Administrator'' means the 
        Administrator of General Services.
          (2) Cercla.--The term ``CERCLA'' means the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601 et seq.).
          (3) Committees.--The term ``Committees'' means the Committee 
        on Transportation and Infrastructure of the House of 
        Representatives and the Committee on Environment and Public 
        Works of the Senate.
          (4) Museum.--The term ``Museum'' means the National Women's 
        History Museum, Inc., a District of Columbia nonprofit 
        corporation exempt from taxation pursuant to section 501(c)(3) 
        of the Internal Revenue Code of 1986.
          (5) Property.--Except as provided in section 25 of this Act, 
        the term ``Property'' means the property located in the 
        District of Columbia, subject to survey and as determined by 
        the Administrator, generally consisting of Squares 325 and 326 
        and a portion of Square 351. The Property is generally bounded 
        by 12th Street, Independence Avenue, C Street, and the James 
        Forrestal Building, all in Southwest Washington, District of 
        Columbia, and shall include all associated air rights, 
        improvements thereon, and appurtenances thereto.
  (b) Conveyance of Property.--
          (1) Authority to convey.--
                  (A) In general.--Subject to the requirements of this 
                section, the Administrator shall convey the Property to 
                the Museum, on such terms and conditions as the 
                Administrator considers reasonable and appropriate to 
                protect the interests of the United States and further 
                the purposes of this section.
                  (B) Agreement.--As soon as practicable, but not later 
                than 180 days after the date of enactment of this Act, 
                the Administrator shall enter into an agreement with 
                the Museum for the conveyance.
                  (C) Terms and conditions.--The terms and conditions 
                of the agreement shall address, among other things, 
                mitigation of developmental impacts to existing Federal 
                buildings and structures, security concerns, and 
                operational protocols for development and use of the 
                property and provisions to provide for the exercise by 
                the Museum of its right of first refusal pursuant to 
                section 25.
          (2) Purchase price.--
                  (A) In general.--The purchase price for the Property 
                shall be its fair market value based on its highest and 
                best use as determined by an independent appraisal 
                commissioned by the Administrator and paid for by the 
                Museum.
                  (B) Selection of appraiser.--The appraisal shall be 
                performed by an appraiser mutually acceptable to the 
                Administrator and the Museum.
                  (C) Terms and conditions for appraisal.--
                          (i) In general.--Except as provided in clause 
                        (ii), the assumptions, scope of work, and other 
                        terms and conditions related to the appraisal 
                        assignment shall be mutually acceptable to the 
                        Administrator and the Museum.
                          (ii) Required terms.--The appraisal shall 
                        assume that the Property does not contain 
                        hazardous substances (as defined in section 101 
                        of CERCLA (42 U.S.C. 9601)) or any other 
                        hazardous waste or pollutant that requires a 
                        response action or corrective action under any 
                        applicable environmental law.
          (3) Application of proceeds.--The purchase price shall be 
        paid into an account in the Federal Buildings Fund established 
        under section 592 of title 40, United States Code. Upon 
        deposit, the proceeds from the conveyance may only be expended 
        subject to a specific future appropriation.
          (4) Quit claim deed.--The Property shall be conveyed pursuant 
        to a quit claim deed.
          (5) Use restriction.--The Property shall be dedicated for use 
        as a site for a national women's history museum for the 99-year 
        period beginning on the date of conveyance to the Museum.
          (6) Funding restriction.--No Federal funds shall be made 
        available--
                  (A) to the Museum for--
                          (i) the purchase of the Property; or
                          (ii) the design and construction of any 
                        facility on the Property; or
                  (B) by the Museum or any affiliate of the Museum as a 
                credit pursuant to subsection (c).
          (7) Reversion.--
                  (A) Bases for reversion.--The Property shall revert 
                to the United States, at the option of the United 
                States, without any obligation for repayment by the 
                United States of any amount of the purchase price for 
                the property, if--
                          (i) the Property is not used as a site for a 
                        national women's history museum at any time 
                        during the 99-year period referred to in 
                        subsection (e); or
                          (ii) the Museum has not commenced 
                        construction of a museum facility on the 
                        Property in the 5-year period beginning on the 
                        date of enactment of this Act, other than for 
                        reasons beyond the control of the Museum as 
                        reasonably determined by the Administrator.
                  (B) Enforcement.--The Administrator may perform any 
                acts necessary to enforce the reversionary rights 
                provided in this section.
                  (C) Custody of property upon reversion.--If the 
                Property reverts to the United States pursuant to this 
                section, such property shall be under the custody and 
                control of the Administrator.
          (8) Closing.--The conveyance pursuant to this section shall 
        occur not later than 3 years after the date of enactment of 
        this Act. The Administrator may extend that period for such 
        time as is reasonably necessary for the Museum to perform its 
        obligations under section subsection (c).
  (c) Environmental Matters.--
          (1) Authorization to contract for environmental response 
        actions.--In fulfilling the responsibility of the Administrator 
        to address contamination on the Property, the Administrator may 
        contract with the Museum or an affiliate of the Museum for the 
        performance (on behalf of the Administrator) of response 
        actions on the Property.
          (2) Crediting of response costs.--
                  (A) In general.--Any costs incurred by the Museum or 
                an affiliate of the Museum using non-Federal funding 
                pursuant to paragraph (1) shall be credited to the 
                purchase price for the Property.
                  (B) Limitation.--A credit under subparagraph (A) 
                shall not exceed the purchase price of the Property.
          (3) No effect on compliance with environmental laws.--Nothing 
        in this section, or any amendment made by this section, affects 
        or limits the application of or obligation to comply with any 
        environmental law, including section 120(h) of CERCLA (42 
        U.S.C. 9620(h)).
  (d) Incidental Costs.--Subject to subsection (c), the Museum shall 
bear any and all costs associated with complying with the provisions of 
this section, including studies and reports, surveys, relocating 
tenants, and mitigating impacts to existing Federal buildings and 
structures resulting directly from the development of the property by 
the Museum.
  (e) Land Use Approvals.--
          (1) Existing authorities.--Nothing in this section shall be 
        construed as limiting or affecting the authority or 
        responsibilities of the National Capital Planning Commission or 
        the Commission of Fine Arts.
          (2) Cooperation.--
                  (A) Zoning and land use.--Subject to subparagraph 
                (B), the Administrator shall reasonably cooperate with 
                the Museum with respect to any zoning or other land use 
                matter relating to development of the Property in 
                accordance with this section. Such cooperation shall 
                include consenting to applications by the Museum for 
                applicable zoning and permitting with respect to the 
                Property.
                  (B) Limitations.--The Administrator shall not be 
                required to incur any costs with respect to cooperation 
                under this subsection and any consent provided under 
                this subsection shall be premised on the Property being 
                developed and operated in accordance with this section.
  (f) Reports.--Not later than 1 year after the date of enactment of 
this Act, and annually thereafter until the end of the 5-year period 
following conveyance of the Property or until substantial completion of 
the museum facility (whichever is later), the Museum shall submit 
annual reports to the Administrator and the Committees detailing the 
development and construction activities of the Museum with respect to 
this section.

SEC. 24. FACILITIES CONSOLIDATION, SAVINGS, AND EFFICIENCY.

  (a) Transfer.--Notwithstanding any other provision of law and not 
later than December 31, 2012, the Administrator of General Services 
shall transfer administrative jurisdiction, custody, and control of the 
building located at 600 Pennsylvania Avenue, NW., District of Columbia, 
to the National Gallery of Art for the purpose of housing and 
exhibiting works of art and to carry out administrative functions and 
other activities related to the mission of the National Gallery of Art.
  (b) Remodeling, Renovating, or Reconstructing.--
          (1) In general.--The National Gallery of Art shall pay for 
        the costs of remodeling, renovating, or reconstructing the 
        building referred to in subsection (a).
          (2) Federal share.--No appropriated funds may be used for the 
        initial costs for the remodeling, renovating, or reconstructing 
        of the building referred to in subsection (a).
          (3) Prohibition.--The National Gallery of Art may not use 
        sale, lease, or exchange, including leaseback arrangements, for 
        the purposes of remodeling, renovating, or reconstructing the 
        building referred to in subsection (a).
  (c) Relocation of the Federal Trade Commission.--
          (1) Relocation.--Not later than December 31, 2012, the 
        Administrator of General Services shall relocate the Federal 
        Trade Commission employees and operations housed in the 
        building identified in subsection (a) to not more than 160,000 
        usable square feet of space in the southwest quadrant of the 
        leased building known as Constitution Center located at 400 7th 
        Street, Southwest in the District of Columbia.
          (2) Occupancy agreement.--Not later than 30 days after the 
        date of enactment of this Act, the Administrator of General 
        Services and the Securities and Exchange Commission shall 
        execute an agreement to assign or sublease the space (leased 
        pursuant to a Letter Contract entered into by the Securities 
        and Exchange Commission on July 28, 2010), as described in 
        paragraph (1), for the purposes of housing the Federal Trade 
        Commission employees and operations relocating from the 
        building located at 600 Pennsylvania Avenue, NW., District of 
        Columbia, pursuant to paragraph (1) of this subsection.
  (d) National Gallery of Art.--Beginning on the date that the National 
Gallery of Art occupies the building referred to in subsection (a)--
          (1) the building shall be known and designated as the ``North 
        Building of the National Gallery of Art''; and
          (2) any reference in a law, map, regulation, document, paper, 
        or other record of the United States to the building shall be 
        deemed to be a reference to the ``North Building of the 
        National Gallery of Art''.
  (e) Discretionary Authorization Reductions.--
          (1) Energy and water retrofit and conservation.--The 
        authorization of appropriations for the energy and water 
        retrofit and conservation measures program of the General 
        Services Administration shall be reduced from $20,000,000 to $0 
        for fiscal years 2012 and 2013.
          (2) Wellness and fitness program.--The authorization of 
        appropriations for the wellness and fitness program of the 
        General Services Administration shall be reduced from 
        $7,000,000 to $0 for fiscal years 2012 and 2013.

SEC. 25. ADDITIONAL SALES AND SAVINGS.

  (a) Definition.--In this section, the term ``Property'' means the 
property located in the District of Columbia, subject to survey and as 
determined by the Administrator, generally consisting of Squares 351 N, 
351, 352, 325, 326, and the portion of Square 383 containing the north 
building of the James Forrestal Building Complex. The Property is 
generally bounded by Independence Avenue, 12th Street, Maryland Avenue, 
and 9th Street in Southwest, Washington D.C.
  (b) Sale.--Not later than December 31, 2013, the Administrator shall 
sell the Property at fair market value at highest and best use only if 
the Administrator determines such sale would result in net proceeds, as 
defined in subsection (d)(2), to the Federal Government exceeding $200 
million.
  (c) Leaseback Restriction.--If the Property is sold pursuant to 
subsection (b), none of the existing improvements on the Property may 
be leased back to the Federal Government.
  (d) Application of Proceeds.--
          (1) Gross proceeds.--Proceeds derived from the sale of the 
        Property shall be used by the Administrator to provide for not 
        more than 320,000 square feet of government-owned replacement 
        space for the federal agency functions housed on the Property.
          (2) Net proceeds.--Any net proceeds received, exceeding the 
        expenses pursuant to paragraph (1) shall be paid into an 
        account in the Federal Buildings Fund established under section 
        592 of title 40, United States Code. Upon deposit, the net 
        proceeds from the sale may only be expended subject to a 
        specific future appropriation.
  (e) Right of First Refusal.--The Administrator shall provide the 
Museum as defined in section 23, a right of first refusal to purchase, 
pursuant to the provisions of such section, the parcel generally 
consisting of Squares 351 N and portions of 325, generally bounded by 
Independence Avenue on the north, 12th Street on the east, 10th Street 
on the west, and through a portion of Square 325 on the south in 
Southwest, Washington, D.C.
  (f) Determination of Proceeds.--If the Administrator determines the 
net proceeds derived from the sale of the Property would not exceed 
$200 million, the Administrator shall sell at fair market value at 
highest and best use Square 326, including the vacant building known as 
the ``Cotton Annex'', not later than 180 days following the 
determination of the Administrator, and shall sell the Property as 
defined in section 23 in accordance with the provisions of that 
section.
  (g) Sale of Property.--If the Museum agrees not to exercise its first 
right of refusal under this section, the Administrator shall sell the 
Property described under subsection (a) of section 23 in accordance 
with the provisions of such section.

SEC. 26. RESTRICTION ON USE OF FUNDS.

  (a) Restriction on Use of Funds.--Notwithstanding any other provision 
of law, the Administrator of General Services shall not use funds 
appropriated for constructing a new courthouse in Los Angeles, 
California in the Federal Buildings Fund established under section 592 
of title 40, United States Code, except as provided for in a specific 
future appropriation.
  (b) Sale of Certain Property.--Not later than December 31, 2013, the 
Administrator of General Services shall sell at fair market value at 
highest and best use any property purchased or otherwise acquired for 
the purposes of constructing a new courthouse described in subsection 
(a).

                         Purpose of Legislation

    The purpose of H.R. 1734 is to save taxpayer money by 
shrinking the federal real property footprint through selling 
or redeveloping high value properties, consolidating federal 
space, maximizing the utilization rates, and streamlining the 
disposal of unneeded assets.

                  Background and Need for Legislation


Management issues

    Given the vast real estate holdings of the federal 
government, poor asset management and missed market 
opportunities cost taxpayers significant sums of money. For 
this reason, in 2003, the Government Accountability Office 
(GAO) placed real property management on its list of ``high 
risk'' government activities, where it remains today. GAO 
conducts biennial reviews on high-risk areas within the federal 
government to bring focus to specific areas needing added 
attention and oversight. Areas are identified as ``high risk'' 
due to their greater vulnerabilities to fraud, waste, abuse, 
and mismanagement or areas that need broad-based transformation 
to address major economic, efficiency, or effectiveness 
challenges.
    The key reasons the GAO identified federal real property as 
high risk are:
           excess and underutilized real property,
           deteriorating and aging facilities,
           unreliable property data, and
           over-reliance on costly leasing.\1\
---------------------------------------------------------------------------
    \1\See High Risk Series: Federal Real Property, U.S. General 
Accountability Office, GAO-03-122, January 2003.
---------------------------------------------------------------------------
    Unfortunately, despite executive orders and memoranda 
issued during two administrations and acts of Congress intended 
to improve the management of federal real property, these 
problems persist.\2\ The GAO noted recently in its 2011 High 
Risk report issued in February 2011, that some progress has 
been made in some of these areas but ``federal agencies 
continue to face long-standing problems, such as overreliance 
on leasing, excess property, and protecting federal 
facilities.''\3\
---------------------------------------------------------------------------
    \2\See, for example, Executive Order 13327, Federal Real Property 
Asset Management, signed by President George W. Bush, February 4, 2004; 
Presidential Memorandum, Disposing of Unneeded Federal Real Estate, 
signed by President Barack Obama, June 10, 2010; Public Buildings 
Cooperative Use Act of 1976; Public Law 108-447, Division H, Title IV, 
Section 412, December 8, 2004 (providing enhanced flexibility to GSA in 
real property management).
    \3\High Risk Series: Managing Federal Real Property, U.S. General 
Accountability Office, GAO-11-278, February 2011, p. 58.
---------------------------------------------------------------------------
    The high risk activities of federal real property are 
significant. Considerable amounts of vacant or underperforming 
assets can translate into significant costs associated with 
their operation, maintenance, and security. For example, in 
fiscal year 2009, the federal government spent $1.7 billion in 
annual operating costs for under-utilized buildings and $134 
million, annually, for excess buildings.\4\
---------------------------------------------------------------------------
    \4\FY 2009 Federal Real Property Report, Federal Real Property 
Council, September 2010, p. 5.
---------------------------------------------------------------------------

          Impediments to reducing space costs and the solution

    There are various reasons why the federal government is 
paying more for space than it should. Through the Committee's 
jurisdiction over public buildings and its oversight and review 
of General Services Administration (GSA) proposals for 
construction, leasing, and renovation of federal space, the 
Committee has identified a number of impediments to reducing 
the cost of space. Many of these impediments have also been 
identified by the GAO in its investigations. These impediments 
include: (1) agencies unwilling to share space, (2) agencies 
seeking unnecessarily large offices and space even as the 
private sector has begun reducing office space, (3) agencies 
reluctant to relocate from what they view as ``prime'' 
locations, and (4) initial costs and red tape associated with 
selling or disposing of unneeded property.
    While the private sector reduced its real estate needs to 
save money, the federal government continues to expand its 
space footprint. In order to counter this trend, promote better 
utilization of space, realize financial returns on under-used 
high value assets, and improve efficiency, including energy 
efficiently, H.R. 1734 was introduced. The legislation is 
intended to create a process that would independently establish 
space standards, apply them to the federal inventory, and 
provide a streamlined manner to ensure actions are taken by 
agencies to reduce the federal real estate footprint.
    H.R. 1734 is intended to save taxpayer money by selling and 
redeveloping high value assets, consolidating facilities, 
maximizing utilization rates, and increasing the use of 
efficient space. H.R. 1734 would require the Commission 
established in the legislation to examine federal real property 
across government used and un-used and make decisions based on 
the best return to the taxpayer. In order to accomplish these 
goals, H.R. 1734 is modeled after the Base Realignment and 
Closure process.

Base realignment and closure

    The Base Realignment and Closure (BRAC) process was first 
established by Congress through the Defense Base Closure and 
Realignment Act of 1988. Its purpose was to create a framework 
for the realignment and disposal of Department of Defense (DoD) 
properties. The BRAC process was also intended to establish a 
fair process of evaluating DoD's space needs and determining 
the best space solutions for DoD facilities. Since 1988, there 
have been five rounds of BRAC, with the most recent commission 
established in 2005.
    The BRAC process first requires DoD to collect data about 
its facilities and establish standards and criteria to apply in 
the evaluation of those facilities. Applying those standards 
and criteria, DoD then develops recommendations on base 
closures and realignments. Those recommendations are sent to 
the independent BRAC Commission for review. The Commission then 
determines if DoD followed its standards and criteria and 
reviews the associated data to determine if changes to the 
recommendations are appropriate. The BRAC Commission may make 
revisions; however, those revisions are limited in scope. The 
BRAC Commission then submits its recommendations to the 
President, who in turn must forward all recommendations to 
Congress or none of them. If the President disapproves of the 
BRAC recommendations, BRAC can revise and resubmit to the 
President. If the President approves of the revisions the 
recommendations are transmitted to Congress. Congress must 
affirmatively disapprove of the recommendations within a 
specified period of time and if Congress does not disapprove of 
the recommendations, the BRAC recommendations are implemented.

The BRAC process and H.R. 1734

    While H.R. 1734 is modeled after BRAC there are key 
differences. These differences include:
     H.R. 1734 applies Government-wide: BRAC applied to 
one federal department (DoD) with DoD leadership that was 
motivated to carry out the BRAC process. Unlike BRAC, H.R. 1734 
applies to property issues government-wide including those 
agencies that may or may not be willing partners in the 
process. Unlike the private sector, agencies have few 
incentives to eliminate unneeded property or shrink their space 
footprint. And, even in those cases in which agencies want to 
dispose of real property, the process for doing so can be slow 
and require initial appropriations.
     H.R. 1734's Focus is Reducing Costs: While the 
BRAC process sought to reduce costs and increase efficiencies, 
the primary purpose of the BRAC process was the realignment of 
DoD facilities. The primary purpose of CPRA is to cut waste and 
save taxpayer dollars.
     Authority of the Commission: The BRAC Commission 
had limited authority to modify the recommendations from DoD. 
The CPRA Commission would have in effect de novo review over 
agency recommendations. Given the fact agencies may or may not 
be willing partners in the process, the Commission in H.R. 1734 
would have authority to adopt agency recommendations or adopt 
others developed by the Commission itself.

Conclusion

    The management of federal real property has been a 
challenge even before appearing on GAO's High Risk list. The 
costs of real property are significant and most agencies do not 
have the incentives to minimize those costs. Properties sit 
vacant or woefully under-utilized, not only costing taxpayers 
billions of dollars but often are eye sores in local 
communities. And, despite the current budget climate, many 
agencies continue to seek more space than is necessary, 
reducing efficiency and increasing costs. H.R. 1734 is intended 
to bring an independent process, outside of bureaucratic red 
tape, to the management of federal real property.

                         Summary of Legislation


Section 1: Short title

    Section 1 designates the short title of the Act as the 
``Civilian Property Realignment Act.''

Section 2: Purposes

    Section 2 lists the purposes of the bill to include: 
reducing and consolidating the footprint of federal buildings; 
maximizing the utilization rate; reducing leasing where 
appropriate; selling or redeveloping high value assets; using 
consolidation, co-location, and reconfiguring to reduce 
operating expenses; reducing overlap in field offices; creating 
incentives for agencies to achieve greater efficiencies; 
facilitating sale or disposal of unneeded properties; and 
achieving sustainability goals.
    The intention of this section is to highlight that real 
cost savings will only be produced through a combination of 
actions. While selling off properties already declared excess 
or surplus may help, many of those properties will realize 
little net income. Real savings are achieved by consolidations, 
co-locations, reducing field office overlap and tapping into 
the value of high value assets. These high value assets would 
not be of the nature that would be declared excess or surplus. 
These may be assets that are used to some extent but would 
produce a greater return to the taxpayer if sold or redeveloped 
and the federal tenants relocated to less valuable locations.

Section 3: Definitions

    Section 3 provides relevant definitions including a 
definition for civilian real property that is consistent with 
public buildings definition in the Public Buildings Act.

Section 4: Commission

    Section 4 establishes a commission to carry out duties as 
described in the Act. Commission would be composed of 9 
members, including a chairman appointed by the President, by 
and with the advice and consent of the Senate, and 8 members 
appointed by the President. Six of the members would be 
appointed with input by the House and Senate leadership. The 
section sets terms for 6 years and requires that the 
composition of the members include expertise related to 
commercial real estate and development, government management 
or operations, community development, and historic 
preservation.
    The intention of the Committee is to ensure those on the 
Commission include individuals with strong private sector real 
estate experience that will help identify properties and 
opportunities for savings.

Section 5: Commission meetings

    Section 5 requires Commission meetings be public and open, 
establishes what constitutes a quorum, and ensures information 
is accessible to oversight committees and the GAO.
    Testimony received by the Committee on the legislation 
included lessons-learned from BRAC and indicated that an open 
process is critical. An open process ensures appropriate input 
into the process and ensures the public and stakeholders are 
fully informed. The Committee expects the Commission to utilize 
regional public meetings to help it identify appropriate 
federal properties and redevelopment opportunities for its 
recommendations.

Section 6: Compensation and travel expenses

    Section 6 sets the compensation rate for the Commission 
members and allows for per diem reimbursement of travel 
expenses related to the work of the Commission.

Section 7: Executive Director

    Section 7 provides for the appointment and compensation of 
an Executive Director.

Section 8: Staff

    Section 8 provides for the appointment and compensation of 
staff and allows for detailed staff from federal agencies.

Section 9: Contracting authority

    Section 9 provides the Commission contracting authority for 
experts and consultants and authorizes the acquisition of 
personal property subject to the availability of funds. Section 
9 also requires the GSA to identify suitable space for the 
Commission and, if none is available, allows the Commission to 
lease space. This section authorizes the Commission to take 
custody, control, and administrative jurisdiction of high value 
properties identified pursuant to section 12(b) and sell those 
properties for no less than fair market value. This section 
also requires the Commission, to the greatest extent 
practicable, to use small businesses.
    The contracting authority provided in the legislation is 
intended to ensure the Commission is sufficiently independent. 
The authorization of the Commission taking custody, control, 
and administrative jurisdiction of the high value assets 
identified in the initial sales required under Section 12 are 
to ensure expedited sales of those properties outside of the 
bureaucracy of the federal agencies involved.

Section 10: Termination

    Section 10 terminates the Commission in 6 years.

Section 11: Development of recommendations to the Commission

    Section 11 establishes a framework for the development of 
initial recommendations to be reviewed and submitted to the 
Office of Management and Budget (OMB) and to the Commission. 
This section also requires the standards developed to 
incorporate key principles listed in section 2 and requires the 
recommendations to be submitted to the Commission.
    The Commission is also given access to necessary property 
data including the age and condition, operating costs, history 
of capital expenditures, sustainability metrics, number of 
federal employees and functions, and square footage. The number 
of employees and square footage data will ensure the Commission 
can properly evaluate utilization rates. The Committee believes 
this data is critical to ensuring proper recommendations are 
developed. This data will assist the Commission in evaluating 
what recommendations will yield the best return to the taxpayer 
given costs associated with particular properties.
    The Committee intends the standards be developed to 
maximize the reduction of the federal real property footprint 
and costs. The standards should result in the co-location of 
agencies and offices and standard utilizations rates across 
categories of properties such as general purpose office space. 
In addition, the standards should ensure the sale of property 
at its highest and best use. In particular, the Commission 
should identify high value assets for sale or redevelopment.
    In the Committee's review of federal real property assets 
and input from the private sector, it is clear that the federal 
government sits on assets that are woefully under-used or 
under-developed. For example, it may produce more savings to 
the taxpayer, to relocate federal offices on under-developed 
property and sell or redevelop that property.

Section 12: Commission duties

    Section 12 establishes general duties of the Commission as 
identifying opportunities for the government to reduce its 
inventory and reduce costs, performing an independent analysis, 
developing final recommendations, and conducting public 
hearings. This section also sets an initial time for reporting 
its final recommendations (and then on a regular basis 
thereafter) to the President. The section requires the 
Commission establish a website and requires the GAO to conduct 
reviews of the process. Additionally this section requires the 
Commission to recommend $500 million in savings from the sale 
of high value properties in the first 180 days.
    This section also requires the Commission to develop an 
accounting system to assist in the development of its 
recommendations. The intention is to ensure there is a standard 
accounting system to assist the Commission in developing 
recommendations that will produce the highest return to the 
taxpayer.

Section 13: Review by the President

    Section 13 establishes a process for review by the 
President. It requires the President to send to Congress his 
approval or disapproval of the recommendations. If the 
President disapproves, the Commission is provided additional 
time to revise its recommendations. If the President fails to 
approve recommendations, the process ceases for that year. If 
the President approves the recommendations, they are submitted 
to Congress.

Section 14: Congressional consideration of the recommendations

    Section 14 establishes expedited congressional procedures 
and timelines for consideration of a resolution of disapproval 
in Congress. If Congress fails to pass a resolution of 
disapproval within 45 days of receiving the recommendations, 
the recommendations gain legal force.

Section 15: Implementation of Commission recommendations

    Section 15 requires agencies to carry out the 
recommendations. It requires all activities to be initiated 
within 2 years and all actions completed in 6 years, unless 
notice is provided to the President and Congress. The bill 
allows for agencies to take necessary steps to carry out the 
recommendations, except agencies are required to work within 
their existing authorities and, if necessary, work with GSA.
    The Committee expects GSA to use its existing authorities 
in a timely manner including the authority to sell and exchange 
properties. In addition, to minimize costs associated with GSA 
staffing, H.R. 1734 requires GSA to use commission-based 
contracts for real estate services to assist in carrying out 
property transactions recommended by the Commission. The use of 
commission-based contracts is important in supplementing GSA's 
resources. These contracts will assist GSA in implementing the 
recommendations in a timely manner by leveraging private sector 
expertise and staffing.

Section 16: Authorization of appropriations

    This section authorizes $82 million for the Commission and 
initial costs associated with implementing any recommendations. 
Additionally the bill offsets the cost by reducing GSA's 
construction and acquisition account by $82 million.
    The Committee expects the initial funding will facilitate 
the creation of the Commission and fund the initial costs to 
implement the recommendations. As there are often expenses to 
prepare properties for sale or to make them available, this is 
intended to cover those initial expenses. Future year funding 
is expected to be derived from the proceeds of property sales 
and redevelopments.

Section 17: Funding

    Section 17 establishes an account on the books of the 
Treasury for the salaries and expenses of the Commission and 
establishes an account within the Federal Buildings Fund (FBF) 
to carry out actions related to the Commission recommendations. 
The FBF account would be funded with proceeds from any action 
taken pursuant to the Commission recommendations and provides 
that the first $50 million of net proceeds go to the general 
treasury and at least 60% thereafter, with up to 40% going into 
to new fund to provided funding for associated costs of 
carrying out the Commission recommendations.

Section 18: Disposal of real properties

    Section 18 waives processes that would allow for the 
disposal of property for less than fair value market for 
actions taken pursuant to the recommendations. The section 
clarifies that the National Environmental Policy Act (NEPA) 
does not apply to the decisions of the Commission and limits 
civil actions. This section clarifies that the Comprehensive 
Environmental Response, Compensation, and Liability Act 
(CERCLA) applies and that agencies may enter into agreements to 
sell the property so long as the federal responsibilities under 
CERCLA are adhered to.

Section 19: Congressional approval of proposed projects

    Section 19 amends the Public Buildings Act by requiring 
prospectuses for future projects, unrelated to Commission 
recommendations, to include a statement describing how the 
proposed project is consistent with principles in the Civilian 
Property Realignment Act.
    This section is intended to ensure that future projects 
submitted to the Committee by GSA though the prospectus process 
outlined in the Public Buildings Act conform with the standards 
outlined in the legislation.

Section 20: Limitation on certain leasing authorities

    Section 20 increases congressional oversight over leasing 
authorities of federal agencies. The section also requires GSA 
to adhere to the requirements of the Small Business Act when 
using commercial leasing services.

Section 21: Implementation review by GAO

    Section 21 requires GAO on at least an annual basis to 
monitor and review the implementation activities related to the 
Commission recommendations.

Section 22: Realignment of real property owned or managed by the Bureau 
        of Overseas Building Operations

    Section 22 allows for properties owned by the United States 
overseas to be considered for the purposes of this Act. The 
bill requires the Department of State input and approval for 
any property proposed. It also restricts the Commission from 
making recommendations on properties overseas if not 
recommended by the Secretary of State.

Section 23: National Women's History Museum

    Section 23 allows for the sale of property at fair market 
value to the Women's History Museum along Independence Avenue 
in Washington, D.C. for the purposes of constructing a museum.

Section 24: Facilities consolidation, savings, and efficiency

    Section 24 provides for the consolidation of the National 
Gallery of Art (NGA) from leased space and into underutilized 
space adjacent to the current gallery buildings. The section 
requires the NGA to raise private funds to renovate the 
building. This section also relocates the Federal Trade 
Commission (FTC) to other vacant space in Washington, D.C. This 
section also includes an offset by reducing GSA's wellness and 
fitness program.
    The Committee believes this section will save at least $300 
million in taxpayer dollars and at the same time make better 
use of a federal building. The Apex building, built 73 years 
ago, still houses the FTC and is located in what has become an 
active cultural triangle. The FTC is currently housed in three 
separate locations and has requested that the Committee approve 
new leased space of 427,000 square feet while the FTC continues 
to maintain the use of the Apex building.
    If the FTC's proposal were approved, the FTC would have 
nearly 700,000 square feet for just 1,100 employees. And, with 
306,000 gross square feet of space in the Apex building alone, 
only little more than half is usable as office space. In 
addition, the new leased space would include 144,000 square 
feet of special use space, such as hearing rooms, a child care 
facility, and deposition rooms, making it more likely than not 
that this will be a long-term lease for many functions 
currently housed in the Apex building, such as the child care 
facility. As a result, there would be even less utilization of 
the Apex building.
    H.R. 1734 would transfer the Apex building to the NGA, a 
federal entity. The NGA has outgrown its facilities and is 
proximate to the Apex building. The NGA also has the authority 
to raise private capital. As such, transferring the use of the 
building to the NGA would attract $200 million of private 
dollars to renovate the Apex building while maintaining it as a 
federal asset. In addition, it would open up the Apex building 
to the public as opposed to a few hundred federal workers and 
increase the utilization rate of the building by more than 30%.
    The Committee believes this section would save the taxpayer 
at least $300 million. It would avoid the taxpayer-funded $140 
million renovation of the Apex building and attract private 
dollars for the renovation. In addition, because the NGA has 
outgrown its existing buildings, it has had to resort to 
leasing space. This section would allow the NGA to move from 
taxpayer-funded leased space and avoid future lease costs. The 
30-year net present value of those avoided lease costs is $145 
million. Additional savings should also be realized in 
relocating the FTC to more efficient space.

Section 25: Additional sales and savings

    Section 25 provides for the sale of underutilized property 
on Independence Avenue in Washington, D.C., including property 
currently occupied by the Department of Energy (DOE). The 
occupied portions of the property may only be sold if the net 
proceeds of the transaction, including the total costs of 
replacing the office space, exceed $200 million. If a sale 
would fail to meet that threshold, the section provides for the 
sale of the portions of the property that are vacant.
    DOE currently is housed in inefficient buildings located on 
property that is under-developed. This Committee believes 
several hundred million dollars can be generated for the 
taxpayer by selling the property and using the proceeds to 
provide less costly and more efficient replacement space for 
the DOE.

Section 26: Restriction on use of funds

    Section 26 restricts the use of funds for a new courthouse 
in Los Angeles, California, and directs GSA to sell the land 
previously acquired to construct the new courthouse.
    The Committee and the GAO has identified significant waste 
over the years on the federal courthouse construction program. 
Last Congress, at the request of the Subcommittee on Economic 
Development, Public Buildings and Emergency Management, the GAO 
completed a study entitled, ``Federal Courthouse Construction: 
Better Planning, Oversight, and Courtroom Sharing Needed to 
Address Future Costs.''\5\ The GAO provided testimony to the 
Subcommittee on May 25, 2010, on its findings. Specifically, 
the GAO examined 33 courthouses that were constructed during 
the ten-year period from 2000 to 2010. The GAO found that 3.56 
million square feet of extra space was built, costing the 
taxpayer $835 million and that the estimated cost to rent, 
operate, and maintain the extra space was $51 million annually.
---------------------------------------------------------------------------
    \5\GAO-10-417.
---------------------------------------------------------------------------
    The primary reasons for the overbuilding include:
           1.7 million square feet of space exceeding 
        congressionally authorized limits;
           887,000 square feet related to the 
        Judiciary's overestimate of the number of judges 
        projected at a given courthouse; and
           946,000 square feet related to the lack of 
        courtroom sharing among judges.
    The proposal for a new courthouse in Los Angeles, 
California, was originally submitted to the Committee as part 
of GSA's FY 2001 Capital Investment Program. At that time, the 
federal courts in Los Angeles occupied and still occupy the two 
buildings--the Roybal Courthouse and Federal Building and the 
Spring Street Courthouse.
    The Los Angeles courthouses currently house 59 judges, 
fewer judges than it had in 2000 and 22 fewer than last 
projected. At the same time, the U.S. courts have adopted a 
sharing policy for magistrate judges, senior judges, and 
bankruptcy judges. Only 21 of the 59 judges are active district 
judges, meaning the remaining 38 would be covered under the 
sharing policy, resulting in the need for 42 courtrooms. There 
are 61 existing courtrooms without a new courthouse.
    At a hearing held on November 4, 2011, the GAO testified 
that not only was a third courthouse unnecessary in Los Angeles 
but all of the judges could actually fit in just one--the 
Roybal Courthouse.
    If GSA spends the available funds to construct a 24 
courtroom courthouse as proposed, the Los Angeles courthouse 
complex would have three buildings with 85 courtrooms and 59 
judges. In fact, GSA plans to abandon one courthouse (Spring 
Street) and demolish courtrooms in the Roybal Courthouse. As a 
result, the Committee believes a new courthouse in Los Angeles 
would result in the need for additional spending to renovate 
the vacated spaces for other use to bring the total costs of 
the project to $700 million. The Committee believes a new 
courthouse in Los Angeles is not necessary and a wasteful use 
of scarce taxpayer dollars.

                 Legislative History and Consideration

    On May 4, 2011, Representative Jeff Denham introduced H.R. 
1734, a bill to decrease the deficit by realigning, 
consolidating, selling, disposing, and improving the efficiency 
of federal buildings and other civilian real property, and for 
other purposes.
    On May 25, 2011, the Subcommittee on Economic Development, 
Public Buildings and Emergency Management met in open session. 
The Subcommittee adopted a substitute amendment and ordered the 
bill forwarded to the full Committee by voice vote.
    On October 13, 2011, the Committee on Transportation and 
Infrastructure met in open session. Amendments were offered to 
H.R. 1734. The Committee adopted amendments to H.R. 1734, 
including an Amendment in the Nature of a Substitute offered by 
Representative Denham. The two other amendments adopted 
included an amendment that amended the definition of properties 
covered by the legislation and an amendment that provided 
technical corrections to H.R. 1734. H.R. 1734 was ordered 
reported as amended to the House by a vote of 30 to 22 with a 
quorum present.

                                Hearings

    The Subcommittee held two hearings specifically on H.R. 
1734 and several other hearings related to subject matter 
addressed in H.R. 1734. In particular, the Subcommittee held 
the following hearings:
    ``Sitting on Our Assets: Cutting Spending and Private 
Redevelopment of Underperforming Buildings'' held on February 
10, 2011. Witnesses included, Mr. Robert Peck, Commissioner, 
Public Buildings Service, General Services Administration; Mr. 
David J. Wise, Director, Physical Infrastructure Team, 
Government Accountability Office; and the Honorable Anthony J. 
Principi, Former Secretary, U.S. Department of Veterans 
Affairs, Chairman, 2005 Defense Base Realignment and Closure 
Commission. The hearing was held in the vacant Annex of the Old 
Post Office in Washington, D.C., and focused on the costs to 
the taxpayer of underperforming or vacant assets, models for 
their redevelopment or reuse, and how spending can be reduced 
through private redevelopment of underperforming assets.
    ``Can a Civilian BRAC Commission Consolidate Federal Office 
Space and Save Taxpayers Billions?'' held on April 6, 2011. 
Witnesses included the Honorable Daniel I. Werfel, Controller, 
Office of Management and Budget; the Honorable Martha Johnson, 
Administrator, General Services Administration; Mr. David J. 
Wise, Director, Physical Infrastructure Team, Government 
Accountability Office accompanied by Mr. Brian Lepore, 
Director, Defense Capabilities and Management Issues, 
Government Accountability Office; and the Honorable Anthony J. 
Principi, Former Secretary, U.S. Department of Veterans 
Affairs, Chairman, 2005 Defense Base Realignment and Closure 
Commission. The hearing focused on whether a civilian BRAC 
process can effectively consolidate federal office space, 
maximize value to the taxpayer, and save taxpayers billions.
    ``How to Stop Sitting on Our Assets: A Review of the 
Civilian Property Realignment Act'' held on May 12, 2011. 
Witnesses included the Honorable Daniel Werfel, Controller, 
Office of Management and Budget; the Honorable Patrick Kennedy, 
Under Secretary for Management, Department of State; the 
Honorable Anthony J. Principi, Former Secretary, U.S. 
Department of Veterans Affairs, Chairman, 2005 Defense Base 
Realignment and Closure Commission; Mr. David Winstead, former 
Commissioner, Public Buildings Service, General Services 
Administration; and Mr. Michael Glosserman, Managing Partner, 
JBG Companies. The hearing focused on H.R. 1734 and the 
Administration's proposal for establishing a civilian BRAC-like 
commission.
    ``The Securities and Exchange Commission's $500 Million 
Fleecing of America'' held on June 16, 2011. Witnesses included 
the Honorable H. David Kotz, Inspector General, U.S. Securities 
and Exchange Commission; Mr. Jeff Heslop, Chief Operating 
Officer/Executive Director, U.S. Securities and Exchange 
Commission accompanied by Mr. Mark D. Cahn, General Counsel, 
U.S. Securities and Exchange Commission; and Ms. Elaine Clancy, 
Director of Leasing, National Capital Region, General Services 
Administration. The hearing focused on the SEC's management of 
its independent authority to lease space and, in particular, 
issues detailed in a May 16, 2011, SEC Inspector General report 
related to SEC's most recent lease procurement of 900,000 
square feet of space under a 10-year lease worth over $500 
million.
    ``The Securities and Exchange Commission's $500 Million 
Fleecing of America: Part Two'' held on July 6, 2011. Witnesses 
included the Honorable Mary L. Schapiro, Chairman, U.S. 
Securities and Exchange Commission and the Honorable H. David 
Kotz, Inspector General, U.S. Securities and Exchange 
Commission. The hearing focused on the lease the SEC entered 
into using its independent leasing authority and the unused 
space that the federal government was legally bound to rent for 
ten years.
    ``A Review and Analysis of the Proposed $400 Million Los 
Angeles, California, Federal Courthouse Project'' held on 
November 4, 2011. Witnesses included the Honorable Margaret M. 
Morrow, United States District Judge, U.S. District Court, 
Central District of California; Mr. Robert Peck, Commissioner, 
Public Buildings Service, General Services Administration, and 
Mr. Mark L. Goldstein, Director, Physical Infrastructure, 
Government Accountability Office. The hearing focused on the 
current justification of a third courthouse in Los Angeles, 
California, including the size, scope, compliance with 
courtroom sharing guidelines, and cost implications of the 
entire courthouse complex in Los Angeles.

                            Committee Votes

    Clause 3(b) of rule XIII of the House of Representatives 
requires each committee report to include the total number of 
votes cast for and against on each record vote on a motion to 
report and on any amendment offered to the measure or matter, 
and the names of those members voting for and against. During 
consideration of H.R. 1734, a total of three roll call votes 
were taken--two on amendments offered to the Amendment in the 
Nature of a Substitute and on ordering H.R. 1734, as amended, 
reported to the House. There were no roll call votes on two 
other adopted amendments or on the Amendment in the Nature of a 
Substitute which were adopted by voice vote. The three roll 
call votes were dispensed with as follows:



                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation is to 
decrease the deficit by realigning, consolidating, selling, 
disposing of, and improving the efficiency of federal buildings 
and other civilian real property, and for other purposes.

               Congressional Budget Office Cost Estimate

    With respect to the requirement 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 enclosed cost estimate for H.R.1734 from the 
Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, December 8, 2011.
Hon. John L. Mica,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1734, the Civilian 
Property Realignment Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
                                         Robert A. Sunshine
                              (For Douglas W. Elmendorf, Director).
    Enclosure.

H.R. 1734--Civilian Property Realignment Act

    Summary: H.R. 1734 would establish the Civilian Property 
Realignment Commission (CPRC) to better manage federal 
buildings and facilities. In addition to giving the commission 
broad new authorities to consolidate, dispose of, or sell some 
government properties, the bill would require the commission to 
sell over the next year at least five civilian facilities that 
have a combined estimated fair market value of' at least $500 
million.
    The legislation also would direct the General Services 
Administration (GSA) to:
           Transfer the Washington, D.C., headquarters 
        building of the Federal Trade Commission (FTC) to the 
        National Gallery of Art (NGA) and move FTC offices to a 
        privately owned building that has already been leased 
        by the federal government;
           Enter into agreements with the National 
        Women's History Museum (a private corporation) to sell 
        to the museum a specific parcel of federal land;
           Study the possible sale of specific portions 
        of the Department of Energy's (DOE's) headquarters 
        building in Washington, D.C., and to complete that sale 
        if GSA determines DOE offices could be relocated while 
        still allowing for a net gain to the government of at 
        least $200 million; and
           Sell certain property that the agency 
        acquired to build a federal courthouse in Los Angeles, 
        California, and terminate the courthouse project.
    CBO estimates that enacting H.R. 1,734 would result in 
direct spending savings of $565 million over the 2012-2016 
period and $595 million over the 2012-2021 period, primarily 
from ending the courthouse project. Enacting H.R. 1734 would 
not affect revenues. Because the legislation would affect 
direct spending, pay-as-you-go procedures apply.
    In addition, CBO estimates that implementing the bill would 
add almost $200 million to discretionary spending over the 
2012-2016 period, assuming appropriation of the necessary 
funds, primarily for the operations and functions of the new 
commission. After 2016, the need for discretionary funds to 
operate and maintain certain federal buildings and facilities 
could be reduced if the commission is successful in carrying 
out its mission to better manage federal property.
    H.R. 1734 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1734 over the 2012-2016 period is 
shown in the following table. The costs of this legislation 
fall within all budget functions that contain facilities and 
properties other than 050 (national defense).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2012     2013     2014     2015     2016   2012-2016
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Sale of High-Value Federal Assets:a
    Estimated Budget Authority..........................        0     -129     -129       52       42      -164
    Estimated Outlays...................................        0     -129     -129       52       42      -164
Sale of Property to the Women's History Museum:
    Estimated Budget Authority..........................        0        0      -50        0        0       -50
    Estimated Outlays...................................        0        0      -50        0        0       -50
Sale of the Cotton Annex:
    Estimated Budget Authority..........................        0     -100        0        0        0      -100
    Estimated Outlays...................................        0     -100        0        0        0      -100
Terminate Los Angeles Courthouse Project:b
    Estimated Budget Authority..........................        0        0      -20        0        0       -20
    Estimated Outlays...................................        0      -15      -53      -73     -110      -251
    Total Changes:c
        Estimated Budget Authority......................        0     -229     -199       52       42      -334
        Estimated Outlays...............................        0     -244     -232      -21      -68      -565

                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Biannual CPRC Recommendations:
    Estimated Authorization Level.......................       97       15       15       15       15       157
    Estimated Outlays...................................       39       41       39       19       19       157
Transfer FTC Building to NGA:
    Estimated Authorization Level.......................        8       40        7       -7       -7        41
    Estimated Outlays...................................        8       40        7       -7       -7        41
    Total Changes:
        Estimated Authorization Level...................      105       55       22        8        8       198
        Estimated Outlays...............................       47       81       46       12       12      198
----------------------------------------------------------------------------------------------------------------
Note: CPRC = Civilian Property Realignment Commission; FTC = Federal Trade Commission; NGA = National Gallery of
  Art.
aProvisions to sell high-value federal assets would reduce direct spending by about $60 million over the 2012-
  2021 period, CBO estimates.
bCBO estimates that ending the courthouse project and selling the building site would reduce direct spending by
  $386 million over the next 10 years.
cOver the 2012-2021 period, CBO estimates that enacting H.R. 1734 would reduce direct spending by $595 million.

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted in fiscal year 2012, that the funds 
authorized to be appropriated to the commission will be 
provided, and that spending will follow historical patterns for 
similar management efforts. This cost estimate is based on 
information from the Federal Real Property Inventory database 
that is maintained by GSA, on other specific information 
provided by GSA and other agencies that manage federal 
properties, and on budgetary information reported by the 
Department of Defense (DoD) regarding its experiences with the 
Base Realignment and Closure (BRAC) initiative begun in 1988.
    Sections 1 through 22 of the legislation would create the 
CPRC and establish its authorities and responsibilities; the 
remaining sections would direct GSA to undertake actions 
regarding specific properties in Washington, D.C., and Los 
Angeles, California. CBO's estimate of the impact those 
provisions would have on direct spending and spending that is 
subject to appropriation are described below.

Civilian property and realignment commission

    H.R. 1734 would establish an independent commission, 
similar to the commission that implemented the BRAC process, 
with the aim of better managing the inventory of federal 
civilian real property. Following procedures specified in the 
bill, including getting input from GSA and other federal 
agencies, the commission would make recommendations to the 
President for selling, exchanging, consolidating, or 
redeveloping federal property. If approved, those 
recommendations would be implemented unless the Congress 
enacted legislation to disapprove them. Under the bill, the 
eight-member CPRC would terminate after six years.
    H.R. 1734 would specify two major objectives for the CPRC. 
First, within one year of the date of the legislation's 
enactment, section 12 would require the commission to identify 
and recommend the sale of a minimum of five high-value federal 
properties with an estimated total fair market value of at 
least $500 million. CBO estimates that auctioning high-value 
properties as specified in the bill would result in additional 
net budgetary savings of $164 million over the 2013-2016 period 
and $60 million over the 2013-2021 period.
    Second, the legislation would require the CPRC to make 
biannual recommendations of property that could be sold, 
disposed of, transferred, exchanged, consolidated, 
reconfigured, redeveloped, or used to co-locate agency 
operations in order to improve the cost-effectiveness of 
managing the inventory of civilian real property.
    CBO estimates that implementing those recommendations would 
cost $157 million over the 2012-2016 period, assuming 
appropriation of the necessary amounts. Those costs include: 
$20 million that would be specifically authorized to be 
appropriated to cover the CPRC's expenses and $62 million for 
the proposed Asset Proceeds and Space Administration Fund, 
which would be used to pay the upfront costs of reorganizing 
agency operations. The estimated cost also includes $15 million 
annually for other federal agencies to support the CPRC's work.
    Direct Spending Savings from Sale of High-Value Federal 
Assets. H.R. 1734 would require the CPRC to identify and 
recommend for sale a minimum of five federal properties with a 
combined market value of $500 million. The properties that 
might be identified for sale are not specified, and CBO has no 
information about which properties would ultimately be chosen. 
Under the bill, they could not be excess or surplus to the 
government's needs and would have to be sold in just over one 
year. Agencies would be relocated after the sale of each 
facility using sale proceeds to cover those costs, with private 
purchasers taking possession some time later. Under H.R. 1734, 
40 percent of the proceeds from those sales could be spent by 
the CPRC to cover costs associated with implementing its 
recommendations.
    Based on information from private developers, CBO expects 
that some private purchasers would be unlikely to pay the full 
fair-market price for properties if they would have to wait 
months or years before taking possession of them. However, 
while time-consuming, this process--under which valuable 
government assets are offered for sale and then a portion of 
the proceeds are used to pay the cost of rearranging government 
operations before the new owner can take control of the asset--
has been used before. For example, portions of the 
electromagnetic spectrum used for communications by DoD and 
other federal agencies have been sold to private-sector users 
using a similar process. Those purchasers have agreed to delay 
using those portions of the spectrum until federal agencies can 
acquire new communications equipment to adjust their use of the 
spectrum.\1\
---------------------------------------------------------------------------
    \1\This funding process was outlined in the Commercial Spectrum 
Enhancement Act, Public Law 108-94.
---------------------------------------------------------------------------
    Three factors would determine the net savings from the sale 
of the assets required under H.R. 1734:
           First, because private owners could not take 
        immediate possession of the federal buildings they 
        purchase, CBO expects offers to buy those buildings 
        would be discounted by around 20 percent--or $100 
        million on properties with a market value of $500 
        million;
           Second, based on information from GSA and 
        the Office of Management and Budget about the costs of 
        government real estate transactions and relocating 
        federal operations to new or renovated facilities, we 
        estimate that about three-quarters--or $300 million--of 
        the sales proceeds would be absorbed by relocation 
        costs, direct costs incurred by GSA or the landholding 
        agencies, and real estate commissions; and
           Third, under the legislation, of the 
        remaining proceeds--$100 million--40 percent could be 
        spent by the commission, without further appropriation, 
        on other activities, and the remainder--about $60 
        million--would be deposited into the Treasury.
    The amount of proceeds could vary significantly from this 
estimate, depending on the particular properties identified by 
the CPRC and the method chosen to relocate government 
operations.\2\
---------------------------------------------------------------------------
    \2\Although not required by the legislation, this estimate assumes 
that the high-value properties identified by the CPRC would be sold at 
auction to the highest bidder and that whatever properties are sold 
would be redeveloped for nonfederal use. If thc properties were sold 
through arranged sales to private developers with the intent of 
entering into agreements with those developers to lease properties 
after improvements are made, the budgetary impact would probably be a 
cost and not a savings. Such arrangements are sometimes used by federal 
agencies under current law as an alternative way to finance the 
construction of improvements and enhancements to federal properties. 
Typically, such leasing agreements are more costly than seeking 
appropriated funds to finance such improvements.
---------------------------------------------------------------------------
    Discretionary Spending for Developing Biannual CPRC 
Recommendations. During its six-year term, the CPRC would work 
with GSA and other civilian agencies that have authority to 
manage real property to develop lists of properties that could 
be sold, disposed of, transferred, exchanged, consolidated, 
reconfigured, redeveloped, or used to co-locate agency 
operations. The bill would authorize the appropriation of $82 
million for those purposes, and CBO estimates that federal 
agencies would need another $75 million over the next five 
years to help the commission develop recommendations to improve 
the management of federal properties, resulting in a total 
discretionary cost of $157 million over the next five years.
    The sale, transfer, or disposal of federal property would 
lead to a reduction in the need for appropriated funds to 
maintain and improve federal properties. The Government 
Accountability Office has reported that operation and 
maintenance costs typically account for between 60 percent and 
85 percent of the lifetime costs of owning a building.\3\ Some 
of those amounts would be eliminated even if the proceeds from 
selling or transferring a particular property were negligible.
---------------------------------------------------------------------------
    \3\Government Accountability Office, Opportunities to Reduce 
Potential Duplication in Government Programs. Save Tax Dollars, and 
Enhance Revenue, GAO-11-318SP (March 2011), p. 222, http://gao.gov/
new.items/d11318sp.pdf.
---------------------------------------------------------------------------
    In 2009, government agencies, including DoD, reported that 
they spent about $1.7 billion to operate about 45,000 
underutilized federal buildings and about $0.3 billion to 
operate about 10,000 buildings classified as excess.\4\ Some of 
those buildings are only slightly underutilized, and some of 
the space characterized as underutilized is not readily usable. 
Still, restructuring building occupancy to increase utilization 
of some facilities so that others could be disposed of and 
disposing of excess properties would eliminate some annual 
operating costs and thus reduce future spending if 
appropriations were reduced by corresponding amounts. However, 
most of such savings would have to come from consolidating 
existing operations and disposing of buildings that are 
currently being used.
---------------------------------------------------------------------------
    \4\The Federal Real Property Council. FY 2009 Federal Real Property 
Statistics (September 2010), p.8.
---------------------------------------------------------------------------
    Over the 2012-2016 period, however, CBO does not expect 
that transactions undertaken as a result of the CPRC's 
recommendations would result in any significant net savings in 
annual operating costs for federal civilian facilities. Prior 
experience in this area--particularly DoD's experience with 
BRAC--suggests that efforts to reduce costs by increasing the 
efficiency of property use typically require significant 
spending up front to rebuild or relocate facilities before 
savings can be realized. Those savings would take the form of 
reduced need for annual appropriations to operate federal 
facilities. For BRAC, those upfront costs were covered 
primarily by increases in annual appropriations. Information 
from DoD indicates that the first four rounds of BRAC base 
closings had a net cost of $22 billion over 10 years.\5\
---------------------------------------------------------------------------
    \5\DoD budget information indicates that the most recent BRAC round 
(2005) had a five-year net cost of about $30 billion and an estimated 
ten-year net cost of almost $20 billion. Over the past 20 years, more 
than 350 military installations have been sold or conveyed to 
nonfederal entities through the 13RAC process. Proceeds from sales have 
amounted to about $1 billion--an average of less than $50 million a 
year.
---------------------------------------------------------------------------
    Without similar upfront resources or some other way to 
implement its recommendations, CBO expects that the CPRC would 
struggle to make a measurable change in the long-term costs of 
operating and maintaining federal civilian properties. In CBO's 
judgment, the opportunity to generate upfront resources from 
the ongoing sale of excess federal properties for substantial 
sums is not supported by the historical record of such 
sales.\6\ Although the federal government sells property on an 
ongoing basis, the net budgetary impact is quite small. Net 
proceeds from the sale of civilian real property varies from 
year to year but has totaled about $70 million over the past 
five years.\7\ Opportunities to sell more valuable properties 
that are not considered excess to the federal government's 
needs exist. However, as explained above under the discussion 
on high-value property sales, the net savings from such 
transactions would be diminished by federal rebuilding or 
relocation costs.
---------------------------------------------------------------------------
    \6\According to information from GSA, the government has engaged in 
almost 1,400 transactions involving disposal of civilian property over 
the past 10 years in some way other than destruction. Of those, about 
125 properties have been transferred to another federal agency; almost 
235 have been made available through public benefit conveyances for 
nominal amounts; 84 were conveyed through negotiated sales to state and 
local governments; and the majority of properties, almost 950, were 
disposed of through public sale.
    \7\Many of the largest civilian landholding agencies (excluding the 
Department of the Interior), such as the Departments of Veterans 
Affairs, the Treasury, and Energy, as well as GSA, already have 
authorities under current law to enter into enhanced-use leases with 
the private sector, which often prove more lucrative than sales. Those 
arrangements allow agencies to lease underused land and facilities for 
cash or in-kind services; the agencies thereby secure private 
financing--outside the appropriations process--for construction or 
renovations of buildings, power plants, and other infrastructure for 
the agencies' use.
---------------------------------------------------------------------------

Directives to GSA regarding properties in Washington, D.C., and Los 
        Angeles

    Enacting the remaining sections of H.R. 1734 would yield 
direct spending savings of almost $520 million over the 2012-
2021 period, CBO estimates. Assuming appropriation of the 
necessary amounts, CBO also estimates that implementing those 
sections would cost about $40 million in discretionary funds 
over the next five years. Specifically, those provisions would 
require GSA to:
          Transfer the Washington, D.C., headquarters 
        building of the Federal Trade Commission to the 
        National Gallery of Art and move FTC offices to a 
        privately owned building that has already been leased 
        by the federal government;
          Enter into agreements with the National 
        Women's History Museum (a private corporation) to sell 
        to the museum a specific parcel of federal land;
          Study the possible sale of specific portions 
        of the Department of Energy's headquarters building in 
        Washington, D.C., and to complete that transaction if 
        GSA determines offices currently occupying that space 
        could be relocated while allowing for a net gain to the 
        government of $200 million or more; and
          Sell certain property that the agency 
        acquired to build a federal courthouse in Los Angeles, 
        California, and terminate the courthouse project.
    Transfer FTC building to NGA. H.R. 1734 would direct GSA to 
transfer the FTC headquarters building to the NGA by December 
31, 2012. The building would be renamed the North Building of 
the National Gallery of Art. Under this bill, after the 
transfer, employees of the FTC Headquarters building would be 
relocated to leased space in a privately owned building 
(Constitution Center, located at 400 7th Street, S.W., in 
Washington, D.C.).
    Assuming appropriation of the necessary funds, CBO 
estimates that implementing this provision would cost $41 
million over the 2012-2016 period, mostly for relocating the 
FTC. That estimate is net of savings from terminating certain 
NGA office leases and reflects the assumption that the FTC 
would occupy office space that is currently being leased by the 
Securities and Exchange Commission (SEC) and that would 
otherwise remain vacant for at least the next year. The SEC and 
GSA are currently considering alternative uses for the space, 
which the SEC leased but no longer requires. It is possible 
that the lease for the portion of Constitution Center affected 
by this bill will be terminated or used by another federal 
agency before the FTC could be relocated under H.R. 1734 late 
in calendar year 2012. If Constitution Center were not 
available, GSA would need to build or lease space for the 
agency.
    National Gallery of Art. The NGA is housed primarily in two 
buildings on the Mall (the West and East Buildings) that were 
presented as gifts to the United States from private donors in 
1941 and 1978. The NGA currently has two leases for office 
space and a service agreement to store artwork in other 
buildings. According to the NGA, more space will be needed in 
the future to accommodate additional administrative staff and 
to display and store additional artwork.
    Under H.R. 1734, CBO expects that the NGA would move some 
of its administrative staff into the FTC building in 2013 and 
begin to redesign the building's interior for its use. We 
estimate that the NGA would spend about $20 million over the 
2015-2016 period, primarily for moving costs, initial design 
work, and office equipment. Those costs would be more than 
offset by savings from ending two of the NGA's leases for 
administrative office space. Under current law, those leases 
will cost about $7 million over the 2014-2016 period and could 
be terminated if the NGA were able to use the FTC building for 
administrative offices without significant modifications. On 
balance, CBO estimates that net savings to the NGA would total 
about $2 million over the next five years, assuming future 
appropriations to the agency are reduced because of its lower 
operating costs under the bill.
    The bill specifies that, after transfer of the building 
from the FTC to the NGA, all initial costs of remodeling, 
renovating, and reconstructing it would be funded by private 
donations. The NGA estimates that it would cost at least $150 
million to modify the structure, mostly to create new areas to 
display art; those costs do not include other possible 
improvements to the area, such as a tunnel from the new 
facility to the East and West Buildings.
    Although H.R. 1734 states that initial modification costs 
may not come from appropriated funds, it is unclear whether the 
NGA could attract sufficient donations from private individuals 
to cover those costs. Since the original buildings were donated 
to the NGA, all renovations and repairs to those facilities 
have been completed with appropriated funds. For example, the 
NGA is midway through a large renovation project that was begun 
in 1999 and has involved more than $140 million worth of 
improvements, primarily to the West Building. The NGA is also 
working on an $85 million project to repair the exterior marble 
veneer of the East Building. Both projects are being undertaken 
using appropriated funds.
    Federal Trade Commission. After the transfer of the FTC 
headquarters building to the National Gallery of Art, H.R. 1734 
would direct GSA to relocate FTC employees from the current 
headquarters building to leased space at a specified location 
(a portion of Constitution Center). That location is currently 
under a 10-year lease entered into by the Securities and 
Exchange Commission in July 2010. However, the SEC has no plans 
to use the space that the FTC would occupy.
    According to the FTC, the commission's headquarters 
building houses more than 700 employees, contractors, and 
children (in a day care center). Based on information from GSA 
and the FTC, CBO estimates that reconfiguring the space, 
relocating the employees from the FTC headquarters to 
Constitution Center, and installing furniture, computers, and 
telecommunications equipment would cost $42 million over the 
2012-2016 period, assuming appropriation of the necessary 
amounts.
    After the current 10-year lease for space in Constitution 
Center expires, the FTC headquarters employees would still need 
office space. At that time, GSA would need to build a new 
headquarters facility or enter into a long-term lease of space 
in Constitution Center or another privately owned facility.
    Sale of Property to Women's History Museum. Section 23 
would authorize the sale of federal property near the 
intersection of 12th Street and Independence Avenue, S.W., in 
Washington, D.C., to the Women's History Museum Corporation. 
(Section 25 would also allow the Women's Museum right of first 
refusal on the western portion of the Forrestal building on 
Independence Avenue in Washington, D.C.) The legislation would 
direct GSA to complete the conveyance within three years. Under 
the bill, no federal funds could be used to purchase the site 
or to design and construct a museum on the site; the property 
would revert to the federal government if the corporation uses 
it for any purpose other than a museum or fails to commence 
work on the museum within five years after enactment of H.R. 
1734. Net proceeds from the sale would be deposited into the 
Federal Buildings Fund, and spending of those funds would be 
subject to future appropriation.
    GSA currently controls the property near the intersection 
of 12th Street and Independence Avenue, S.W., which consists 
primarily of a small parking lot; the agency reports that it 
has no plans to declare the property excess to its needs. Thus, 
under current law, CBO does not expect that the property would 
be conveyed for a public purpose or sold over the next 10 
years.
    An assessment of the property's value has not yet been 
completed. That assessment would consider a variety of factors, 
including the property's highest and best use, the presence of 
any hazardous substances or zoning restrictions on the site, 
and a final land survey. Based on recent property sales in the 
District of Columbia, CBO estimates that net proceeds from this 
sale would total about $50 million in 2014. That sale would be 
recorded in the budget as a reduction in direct spending of $50 
million in 2014.
    Consider Sale of a Portion of the Department of Energy 
Headquarters Building. Section 25 would require GSA to 
determine whether it could sell most of the Forrestal Building 
(DOE headquarters located on Independence Avenue in Washington, 
D.C.) and build a new federally owned facility to house the 
relocated DOE employees while still realizing estimated net 
proceeds of at least $200 million from the sale. If GSA 
believes such a transaction were possible, the Women's History 
Museum would have the right of first refusal to purchase a 
specified portion of the Forrestal building.
    If the Forrestal Building is sold, the bill would prohibit 
the federal government from leasing back any portion of the 
building, including during the period of time required to 
design and construct the new DOE facility and relocate the 
agency. Based on information from GSA, the National Capitol 
Planning Commission, and private developers, CBO expects that 
proceeds from the sale would be significantly diminished by the 
timing and special financing that would be required for the 
sale because of that prohibition and the need to expend sales 
proceeds to relocate the agency. Thus, CBO estimates that net 
receipts would be less than $200 million and therefore that GSA 
would not sell the Forrestal property.
    Sale of the Cotton Annex. If the Forrestal property was not 
sold, the legislation would allow the Cotton Annex to be sold; 
the Cotton Annex is a building roughly bounded by 12th Street, 
Independence Avenue, Maryland Avenue, the Forrestal Building, 
and L'Enfant Plaza in southwest Washington, D.C. An assessment 
of the value of the Cotton Annex property has not been 
completed, but based on recent property sales in Washington, 
CBO expects that proceeds would probably be around $100 
million.\8\ Under the bill, those proceeds from the sale would 
be deposited into the Federal Buildings Fund, and spending of 
those funds would be subject to future appropriation. For this 
estimate, CBO assumes that the property would be sold in 2013.
---------------------------------------------------------------------------
    \8\ That estimate reflects the assumption that the Cotton Annex 
would be sold at public auction for cash and that the government would 
not lease back the property. If the property is sold to the private 
sector and leased back to the government, the budget might record a 
cost from the sale rather than a savings, depending on the terms of the 
lease.
---------------------------------------------------------------------------
    Terminate the Los Angeles Courthouse Project. In 2000, the 
Congress authorized GSA to begin designing a new courthouse in 
downtown Los Angeles and has appropriated about $400 million 
for the project. GSA spent $34 million to design the 
courthouse, purchase a building site, and prepare the site. 
Under current law, CBO expects construction will begin in 
fiscal year 2013. Section 26 would prohibit GSA from using 
already appropriated funds to construct the new courthouse; 
thus, CBO estimates that enacting this provision would reduce 
spending by $366 million (the appropriated amount that remains 
unspent) over the 2014-2019 period. (Because that savings would 
result from enactment of this legislation, it would be recorded 
as a reduction in direct spending for pay-as-you-go purposes.)
    In addition, the section would require GSA to sell the Los 
Angeles building site at fair market value. CBO estimates that 
the proceeds from the sale of the property would be about $20 
million in fiscal 2014. Net proceeds from the sale would be 
deposited into the Federal Buildings Fund, and spending of 
those proceeds would be subject to future appropriation.
    CBO estimates that total savings from ending the courthouse 
project and selling the site would be $386 million over the 
2012-2021 period.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table. 
Enacting the legislation would have no effect on revenues.

     CBO ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS FOR H.R. 1734, THE CIVILIAN PROPERTY REALIGNMENT ACT, ORDERED REPORTED ON OCTOBER 13, 2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 By fiscal year, in millions of dollars--
                                                 -------------------------------------------------------------------------------------------------------
                                                   2012     2013     2014    2015    2016    2017    2018    2019    2020    2021   2012-2016  2012-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact..................       0     -244     -232     -21     -68     -51       3      18       0       0      -565       -595
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 1734 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal spending: Matthew Pickford 
and Ryan Miller; Impact on state, local, and tribal 
governments: Elizabeth Cove Delisle; Impact on the private 
sector: Paige Piper/Bach.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                          Advisory of Earmarks

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, the Committee is required to include a list 
of congressional earmarks, limited tax benefits, or limited 
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of 
rule XXI of the Rules of the House of Representatives. No 
provision in the bill includes an earmark, limited tax benefit, 
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of 
rule XXI.

                       Federal Mandate Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the ``Unfunded Mandates 
Reform Act'' (P.L. 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that H.R. 1734 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

                  Applicability of Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (P.L. 104-1).

         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 (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):

TITLE 40, UNITED STATES CODE

           *       *       *       *       *       *       *



SUBTITLE II--PUBLIC BUILDINGS AND WORKS

           *       *       *       *       *       *       *


PART A--GENERAL

           *       *       *       *       *       *       *


         CHAPTER 33--ACQUISITION, CONSTRUCTION, AND ALTERATION

Sec.
3301. Definitions and nonapplication.
     * * * * * * *
3317. Limitation on leasing authority of other agencies.

           *       *       *       *       *       *       *


Sec. 3307.   Congressional approval of proposed projects

  (a) * * *
  (b) Transmission to Congress of Prospectus of Proposed 
Project.--To secure consideration for the approval referred to 
in subsection (a), the Administrator of General Services shall 
transmit to Congress a prospectus of the proposed facility, 
including--
          (1) * * *

           *       *       *       *       *       *       *

          (6) a statement of rents and other housing costs 
        currently being paid by the Government for federal 
        agencies to be housed in the building to be 
        constructed, altered, or acquired, or the space to be 
        leased; [and]
          (7) with respect to any prospectus for the 
        construction, alteration, or acquisition of any 
        building or space to be leased, an estimate of the 
        future energy performance of the building or space and 
        a specific description of the use of energy efficient 
        and renewable energy systems, including photovoltaic 
        systems, in carrying out the project[.]; and
          (8) a statement of how the proposed project is 
        consistent with section 11(b) of the Civilian Property 
        Realignment Act.

           *       *       *       *       *       *       *


Sec. 3317.   Limitation on leasing authority of other agencies

  (a) In General.--Notwithstanding any other provision of law, 
no executive agency may lease space for the purposes of a 
public building as defined under section 3301, except as 
provided under section 585, and the provisions in this chapter.
  (b) Public Building.--For the purposes of this section, the 
term ``public building'' shall include leased space.
  (c) Further Exclusions.--This section shall not apply to--
          (1) properties that are excluded for reasons of 
        national security by the President; and
          (2) properties of the Department of Veterans Affairs.
  (d) Construction.--Nothing in this section shall be construed 
as creating new authority for executive agencies to enter into 
leases or limit the authority of the Administration under 
section 3314.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    We agree with our Republican colleagues on the need to 
address the management of Federal real property. In fact, in 
the 110th and 111th Congresses, the House, under Democratic 
leadership, held over 15 hearings on the management of the 
General Services Administration (GSA) Public Building Service 
(PBS) real estate portfolio that encouraged GSA to move forward 
on the redevelopment of several underutilized properties, to 
sell properties where appropriate, and to be more decisive in 
its management of its real estate portfolio. Because of our 
interest in such improvements, an interest also reflected in 
President Obama's Fiscal Year 2012 budget priorities, it had 
been our hope that H.R. 1734, ``The Civilian Property 
Realignment Act,'' would provide for a sustained commitment to 
these priorities, and we looked forward to working with our 
Republican colleagues this Congress in a bipartisan manner to 
swiftly pass this legislation. Regrettably, H.R. 1734, as 
amended and ordered reported on a vote of 30-22, fails to 
reflect those mutual goals.
    In addition, we are deeply concerned that H.R. 1734 
includes provisions that extinguish the claims of homeless 
providers on Federal properties and eliminates environmental 
review as a consideration of the Civilian Property Realignment 
Commission when making decisions concerning the realignment and 
disposal of Federal property. H.R. 1734 also includes several 
controversial provisions, including the transfer of the Apex 
building in Washington, DC, from GSA to the National Gallery of 
Art, the sale of the Department of Energy Headquarters in 
Washington, DC, and the termination of the Los Angeles, 
California, courthouse construction project. Moreover, we 
believe the controversial aspects of this legislation will 
seriously jeopardize the enactment of legislation needed to 
``rightsize'' the Federal real estate inventory.

    I. HOMELESS PROVIDER RIGHTS AND OTHER PUBLIC BENEFIT CONVEYANCES

    We are concerned that the bill eliminates a review of the 
suitability of Federal property for use by homeless providers 
and a review of possible transfers to non-profits, local and 
state governments before they are disposed of through public 
auction. Title V of the McKinney-Vento Act (42 U.S.C. 11411) 
provides an exclusive right of first refusal to homeless 
service providers to apply to own or lease any surplus federal 
property at no charge. Non-profit groups, state agencies, and 
local governments can also apply for surplus property at less 
than fair market value under several public benefit conveyance 
provisions. The bill precludes the review of Federal property 
for a possible transfer to homeless providers and other public 
benefit conveyances by the Civilian Property Realignment 
Commission. By extinguishing those rights, the bill limits the 
pool of Federal properties available for transfer to homeless 
service providers. In these difficult economic times, 
extinguishing this first right of refusal would be a severe 
blow to homeless service providers that have already had to 
deal with a significant downturn in charitable giving during 
the recent recession.
    According to the National Law Center on Homelessness and 
Poverty (NLCHP), Title V has provided nearly 500 pieces of 
Federal property to homeless service providers for use as 
shelters, transitional and permanent housing, case management 
offices, food pantries, job training, mental health and 
substance abuse treatment facilities, and childcare centers. 
Further, NLCHP indicates that each year more than 2.4 million 
Americans benefit from the assistance provided through these 
otherwise vacant properties. On July 27, 2011, the NLCHP 
testified before the House Oversight and Government Reform 
Committee that, according to the U.S. Conference of Mayors 
2010--Hunger and Homelessness Survey, family homelessness has 
skyrocketed during the recession, with unemployment and a lack 
of affordable housing driving a nine percent increase in the 
last year, a number that is expected to continue to increase.
    Moreover, the bill does not require that homeless advocates 
or service providers be represented on the Civilian Property 
Realignment Commission nor that properties be reviewed for 
potential use to provide homeless assistance if one or more 
Commission members requests it. During the Committee on 
Transportation and Infrastructure markup of H.R. 1734 on 
October 13, 2011, Subcommittee on Economic Development, Public 
Buildings, and Emergency Management Ranking Member Eleanor 
Holmes Norton offered an amendment to restore a review of 
Federal properties for homeless service providers. Regrettably, 
the amendment was rejected on a vote of 21-27.
    In addition to the waiver of homeless provider 
consideration, the bill eliminates public benefit conveyances 
of Federal property to non-profits, local and state governments 
for no consideration or less than fair market value. To qualify 
for a public benefit conveyance, nonprofit groups, state 
agencies, and local governments must express interest in a 
property during the surplus screening process and apply to the 
specific sponsoring Federal agency to acquire the surplus 
property for a particular public use. For example, if a city 
government identified a parcel of land adjacent to a state park 
that was determined to be surplus to the needs of the Federal 
Government and it was deemed unsuitable for homeless services 
providers, then the city government could apply for a public 
benefit conveyance of the land for park and recreations use. 
The Department of Interior, the sponsoring agency for this 
particular use, would then review their application. If the 
application was approved, GSA could transfer the property to 
city at no cost on the condition that the city would then be 
required to maintain that area as a park or recreation area in 
perpetuity.
    Because one of the goals of the legislation is to expedite 
disposal, it is counterproductive to exclude public benefit 
conveyances. Given the sluggish economy and real estate market, 
the Federal Government should retain as many disposal options 
as possible, including public benefit conveyances. Although 
public conveyances do not often result in monetary 
consideration, these conveyances can eliminate the costs to the 
government to maintain these properties and offer an additional 
tool to reduce the real estate footprint of the Federal 
Government.

              II. NATIONAL ENVIRONMENTAL POLICY ACT WAIVER

    We are concerned that the bill, as reported, would waive 
the application of the National Environmental Policy Act (NEPA) 
to some actions of the Commission. Section 18(b) waives 
compliance with NEPA for the actions of the President, the 
Commission, or any Federal agency, when considering any of the 
Commission's recommendations except during the process of 
property disposal and during the process of relocating 
functions from a property being disposed of or realigned to 
another location.
    This provision is unnecessary because the Commission would 
not be considered a Federal agency for purposes of the NEPA, 
but the preclusion of an environmental review unnecessarily 
limits the ability of the Commission to consider all factors in 
developing recommendations. In addition, since the legislation 
requires any final action to realign, consolidate, or dispose 
of Federal real estate to be reviewed in compliance with NEPA, 
a full review would be appropriate considering that an 
inadequate review could cause serious problems later. For 
example, the 2005 Base Realignment Commission (BRAC) made the 
decision to move several Defense functions to the Mark Center 
in Alexandria, Virginia, without the proper consideration of 
the effects and need for additional infrastructure to support 
the thousands of workers who were moved to the area. This BRAC 
move to an already congested area has caused considerable 
disruption locally because there are not enough transportation 
options to sustain the influx of nearly 6,000 workers. An 
environmental review by the BRAC Commission may well have 
detected this issue and enabled it to be addressed.
    The Mark Center example underscores the importance of 
carefully conducting an environmental review of any decision to 
close a facility, relocate, or re-configure a Federal facility. 
Unfortunately, however, the current bill precludes a full 
review of the actions until after a decision to sell or dispose 
of a piece of Federal property has already been made. During 
the Committee markup of the bill, Subcommittee Ranking Member 
Norton offered an amendment to strike this section to ensure 
that these Federal Government actions do not create 
unanticipated impacts to local communities. Regrettably, the 
amendment was rejected on a vote of 19-24.

                    III. DIRECTED REAL ESTATE SALES

    We are also concerned about the directed sales and transfer 
of several valuable federal properties because of the lack of 
rigorous analysis of the potential sales and potential long-
term losses to the U.S. taxpayer if Federal workers are moved 
out of Federally owned space to more expensive privately owned 
commercial space. At a time when the Federal Government should 
continue reducing its reliance on leased space, H.R. 1734 seeks 
to sell both the parcel of land where the current Department of 
Energy headquarters is located in the District of Columbia, as 
well as a parcel of land in Los Angeles, California, intended 
for construction of a U.S. courthouse. The bill proposes to 
sell these Federal properties with no analysis conducted on 
whether the sales are in the best interests of the Federal 
Government and, thus, the U.S. taxpayer. Both the Los Angeles, 
California, and Washington, DC, metropolitan areas have a 
significant Federal presence and currently house several 
Federal agencies in long-term, expensive, privately leased 
commercial office space. By mandating the sale of these 
properties within a time certain, the government loses leverage 
in any sales transaction and the possibility of GSA using its 
existing authority to develop government-owned space and 
further relieve the need to rely on costly, privately leased 
commercial office space is foreclosed upon. Additionally, the 
bill authorizes the transfer of one Federal agency from 
government-owned space to leased commercial office space.
Transfer of the Apex Building
    Section 24 of H.R. 1734 directs the transfer of 
administrative jurisdiction of the government-owned Apex 
Building in the District of Columbia, currently occupied by the 
Federal Trade Commission (FTC), to the National Gallery of Art. 
The bill further directs GSA to relocate the FTC to 160,000 
square feet of space in a privately owned commercial office 
building located at 400 7th Street, S.W., in Washington, DC. 
The Apex building is a strong income-producing property 
generating sufficient funds to meet its reinvestment needs. To 
pay for this real estate transfer, the bill eliminates funding 
for the GSA energy and water retrofit and conservation program 
and the GSA wellness and fitness programs for fiscal years 2012 
and 2013. Evicting the FTC from its headquarters and mandating 
that it assume office space in a privately owned building is at 
odds with many longstanding practices of this Committee. 
Historically, the Committee has made a vigorous effort to 
ensure that agency headquarters functions are located in 
government-owned space rather than leased commercial office 
space because leasing such space is generally significantly 
more expensive than housing agencies in government-owned space. 
In addition, prior to this bill, the Committee has never 
mandated the transfer of an agency to a specific, privately 
owned, leased space.
    Section 24 of H.R. 1734 would also deprive the Federal 
Buildings Fund (FBF), a revolving fund used for the repair and 
construction of Federal buildings, of the $6 million worth of 
rent that the FTC currently pays, while giving rent-free space 
to the National Gallery of Art. The bill expands one Federal 
agency at the expense of all the other agencies housed in 
Federally owned space. It gives the National Gallery of Art an 
additional 300,000 square feet with a new responsibility to 
renovate and maintain a third facility on the National Mall. 
This Committee has consistently been concerned about the 
ability of GSA to use funds generated by the FBF to maintain 
its real estate inventory and this section would further 
undermine the ability of GSA to maintain its inventory.
Sale of Department of Energy headquarters
    Section 25 of H.R. 1734 directs GSA to sell the parcel of 
land currently occupied by the Department of Energy if GSA 
determines it can receive $200 million in net proceeds. 
Proceeds from that sale would be used by GSA to provide for a 
building of up to 320,000 square feet of government-owned 
replacement space for the Department of Energy. None of the 
existing improvements on the property would be available for 
lease back to the Federal Government. The National Women's 
History Museum would have the first right of refusal for a 
portion of the parcel. This provision has had no public 
hearings to evaluate the merit of replacing the headquarters of 
the Department of Energy and it is unclear how selling this 
Federal property would benefit the U.S. taxpayer over the long 
term.
Sale of Los Angeles, CA courthouse site
    Section 26 of H.R. 1734 prohibits the use of appropriated 
funds for constructing a new U.S. courthouse in Los Angeles, 
California. It also directs GSA to sell, at fair market value, 
any property acquired to build a new courthouse in Los Angeles.
    Congress has already appropriated the funds for the Los 
Angeles courthouse and GSA is currently proceeding with the 
procurement. Implementation of this provision would stop an 
ongoing procurement and sell a site in a part of the country 
where GSA has a significant need for more Federally owned 
commercial office space and existing commercial office rents 
are among the highest in the nation. We acknowledge that the 
merits of the Los Angeles, CA, courthouse going forward using 
existing courtroom sharing guidelines are not clear and this 
Committee has been clear in its mandate that all new courthouse 
construction be reconsidered under the sharing guidelines. 
However, selling this site with no analysis of the commercial 
office space needs in Los Angeles simply does not make sense.

                               CONCLUSION

    Although we share our Republican colleagues' desire to 
consolidate the real estate holdings of Federal agencies in 
Federally owned space, and reduce private commercial office 
space costs, we are concerned that H.R. 1734--which weakens 
environmental reviews, deprives homeless service providers of 
access to Federal properties, and sells two large parcels of 
land without any analysis of the merit of the sale--will not 
advance our mutual goal of making the Federal Government a 
better asset manager. We, therefore, oppose H.R. 1734 as 
reported by the Committee on Transportation and Infrastructure.
                                   Nick Rahall.
                                   Eleanor Holmes Norton.