Asbestos and the Capitol Power Plant Tunnel Project:  Schedules and Estimated Costs Continue to Be Revised

Read about the Government Office of Accountability (GAO)'s report on the U.S. Capitol Building's power plant tunnel projects.  The project deals with issues regarding the amount of asbestos present in the tunnel structures.  Exposure to asbestos can cause serious diseases such as mesothelioma, asbestos-related lung cancer and asbestosis.

AOC has committed to OOC to resolve the tunnel problems by June 2012, and as of April 2007 AOC increased its total cost estimate for this work to over $200 million. AOC officials attributed this increase to the development of additional information about the projects. AOC has revised many of the tunnel project schedules and cost estimates that it originally reported in its August 2006 Utility Tunnel Improvement Plan.

In November 2006, we reported that AOC’s August 2006 plan was incomplete, in part because AOC had not completed its assessment of the tunnels. In the August plan, AOC developed an initial schedule and cost estimate for the projects it considered necessary to resolve the problems in the tunnels. This estimate relied on information on the condition of the tunnels that was available to AOC at that time.

We expressed concern that the plan did not contain an analysis or discussion of options for addressing the needs of the tunnels, and we noted that an ongoing alternatives study to evaluate the long-term use of the existing tunnels and options for meeting the Capitol Hill Complex’s future utility distribution needs would not be complete until the end of fiscal year 2008. According to AOC officials, they have requested that their consultant accelerate the alternatives study for the tunnel with the most structural damage.

As we reported in November 2006, this study will explore the different options for the improvements and related costs that are considered the best solutions for resolving the tunnel problems and maintaining a reliable system for providing heating and cooling services to the Capitol complex.

While AOC has increased its cost estimate for the tunnel improvements to over $200 million, much of the work that needs to be done is still in the planning or design phase, and as the work is designed and contracted for, the cost estimate is likely to change. Already, the cost estimate has increased at least 50 percent from the $134 million AOC estimated it would need in August 2006. Schedules for some projects to address the tunnel problems have slipped and due to remaining uncertainty, delays on some projects may continue. For example, the awarding of construction contracts to replace the roof in one tunnel is being delayed while, among other things, uncertainty related to working in a public street is resolved.

Congress provided $27.6 million in emergency supplemental funding for tunnel projects in fiscal year 2006. AOC has obligated most of this money and expended $3.7 million as of July 26, 2007. In June 2007, Congress appropriated an additional $50 million in emergency supplemental funding, and AOC has requested $24.8 million in funding for the tunnels in fiscal year 2008. AOC has not yet submitted to Congress its obligation plan for the 2007 appropriation. Congressional approval of this plan is necessary before AOC can obligate the funds. At this rate of progress and spending, it may be difficult for AOC to meet its commitment to resolve the tunnel problems over the next 5 years.

Madam Chair, this completes my prepared statement. I would be pleased to answer any questions that you or Members of the Subcommittee may have.

For further information about this testimony, please contact Terrell Dorn at (202) 512-6923.