FTA approves $900 million Metro light rail proposals for full funding

North and Southeast lines

Jay Blazek Crossley, Sep 20, 11.

The Federal Transit Authority has approved the $900 million proposal for the North and Southeast light rail lines, part of the proposed 5 line system Metro is now constructing, according to the Houston Chronicle:

In September 2010, the FTA announced that the process Metro had used to award a rail car contract to CAF USA, the U.S. subsidiary of a Spanish company, violated federal law and “Buy America” requirements that were designed to protect U.S. jobs.

To requalify for federal funds on the two lines, the FTA said Metro had to cancel its contract with CAF USA and solicit new proposals for rail cars. Metro complied.

Last week the FTA notified four congressional committees - House Transportation and Infrastructure; Senate Banking, Housing and Urban Affairs; and House and Senate Appropriations - of its plan to execute two grant agreements that could bring Metro a total of $900 million over five years.

Federal law requires a 60-day notification period, but Congress does not have to vote on the grants. Typically, grants that get as far as the 60-day notice go on to be signed.

‘This is just one step’
Metro’s response was low-key, although the FTA’s notice to Congress represents a major milestone.

“Obviously, we are pleased with this news,” George Greanias, Metro’s president and chief executive officer, said Thursday in a statement through the transit agency’s spokesman Jerome Gray. “This is just one step in the process, and we look forward to a signing ceremony” for the grants.

No date has been set for the signing ceremony with Washington officials, but Metro expects it will be in November in Houston, Gray said.