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B-320795 1 (2010-09-29)

handle is hein.gao/gaobadskm0001 and id is 1 raw text is: 




         GA 0
       Accountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548



         B-320795

         September 29, 2010

         Peter J. Nickles, Esq.
         Attorney General of the District of Columbia
         1350 Pennsylvania Avenue, NW., Suite 409
         Washington, DC 20004
         Subject: Use of GA O's Appropriations to Pay the District of Columbia
                  Storm water Fee

         Dear Mr. Nickles:

         The purpose of this letter is to inform you that we have evaluated the District of
         Columbia's (District) stormwater fee and, based on the facts and other information
         provided to us by the District, have determined that the stormwater fee is a tax for
         which Congress has not waived its sovereign immunity. Accordingly, GAO is
         constitutionally prohibited from using appropriated funds to pay the stormwater fee
         assessment due on October 1, 2010. U.S. Const. art. VI, cl. 2 (Supremacy Clause).
         The reasons for our conclusion are set forth in detail in the Enclosure.

         In April 2009, the District Water and Sewer Authority (presently known as D.C.
         Water) transmitted to the Director of the federal government's Office of Management
         and Budget (OMB) D.C. Water's fiscal year 2011 billing for federal customers for
         water and sewer services. Letter from Chief Financial Officer, D.C. Water, to
         Director, OMB, Apr. 15, 2009 (D.C. Water FY 2011 Bill). The D.C. Water FY 2011 Bill
         includes a stormwater fee that is assessed on each property located in the District,
         and D.C. Water is required by District law to collect and credit the fee to a fund
         administered by the District Department of the Environment (DDOE). This
         stormwater fee is a flat rate based on the amount of impervious surface on each
         property.1

         'The D.C. Water FY 2011 bill also included an impervious surface charge for sewer
         service. In a separate letter to D.C. Water today, B-319556, we concluded that GAO's
         appropriations are available to pay D.C. Water's impervious surface area charge. The
         purpose of that charge is to cover the costs of capital improvements to D.C. Water's
         sewer system and treatment facilities, costs that are properly recoverable through a
         rate for utility services, and the charge represents a fair approximation of services
         provided to GAO.

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